Tag Archives for " blockchain "
When Worlds Collide: Blockchain and Master Data Management
Master Data Management (MDM) is an approach to the management of golden records that have been around for over a decade only to find a growth spurt lately as some organizations are exceeding pain thresholds in the management of common data.
Blockchain has a slightly shorter history, coming aboard with bitcoin, but also is seeing its revolution these days as data gets distributed far and wide and trust has taken center stage in business relationships.
Volumes could be written about each on its own, and given that most organizations still have a way to go with each discipline, that might be appropriate.
However, good ideas wait for no one and today’s idea is MDM on Blockchain.
Thinking back over our MDM implementations over the years, it is easy to see the data distribution network becoming wider.
As a matter of fact, master data distribution is usually the most time-intensive and unwieldy part of an MDM implementation anymore.
The blockchain removes overhead, costs, and unreliability from authenticated peer-to-peer network partner transactions involving data exchange.
It can support one of the big challenges of MDM with governed, bi-directional synchronization of master data between the blockchain and enterprise MDM.
The single version of the truth
Another core MDM challenge is arriving at the “single version of the truth”.
It’s elusive even with MDM because everyone must tacitly agree to the process used to instantiate the data in the first place.
While many MDM practitioners go to great lengths to utilize the data rules from a data governance process, it is still a process subject to criticism.
The consensus that blockchain can achieve is a governance proxy for that elusive “single version of the truth” by achieving group consensus for trust as well as a full lineage of data.
The major challenges in MDM
Blockchain enables the major components and tackles the major challenges in MDM.
Blockchain provides a distributed database, as opposed to a centralized hub, that can store data that is certified, and for perpetuity.
By storing timestamped and linked blocks, the blockchain is unalterable and permanent.
Though not for low latency transactions yet, transactions involving master data, such as financial settlements, are ideal for blockchain and can be sped up by an order of magnitude since blockchain removes the grist in a normal process.
Blockchain uses pre-defined rules that act as gatekeepers of data quality and governs the way in which data is utilized.
Blockchains can be deployed publicly (like bitcoin) or internally (as an implementation of Hyperledger).
There could be a blockchain per subject area (like customer or product) in the implementation.
Hyperledger
MDM will begin by utilizing these internal blockchain networks, also known as Distributed Ledger Technology, though utilization of public blockchains is inevitable.
A shared master data ledger beyond company boundaries can, for example, contain common and agreed master data including public company information and common contract clauses with only counterparties able to see the content and destination of the communication.
Hyperledger is quickly becoming the standard for the open-source blockchain.
Hyperledger is hosted by The Linux Foundation. IBM, with the Hyperledger Fabric, is establishing the framework for blockchain in the enterprise.
Supporting master data management with a programmable interface for confidential transactions over a permissioned network is becoming a key inflection point for blockchain and Hyperledger.
Data management is about the right data at the right time and master data is fundamental to great data management, which is why centralized approaches like the discipline of master data management have taken center stage.
Characteristics of Blockchain
MDM can utilize the blockchain for distribution and governance and blockchain can clearly utilize the great master data produced by MDM.
Blockchain data needs data governance like any data. This data actually needs it more given its importance on the network.
MDM and blockchain are going to be intertwined now.
- It enables the key components of establishing and distributing the single version of the truth of data. Blockchain enables trusted governed data.
- It integrates this data across broad networks.
- It prevents duplication and provides data lineage.
- It will start in MDM in niches that demand these traits such as financial, insurance, and government data.
You can get to know the customer better with native fuzzy search and matching in the blockchain.
You can track provenance, ownership, relationship, and lineage of assets, do trade/channel finance, and post-trade reconciliation/settlement.
Blockchain is now a disruption vector for MDM.
MDM vendors need to be at least blockchain-aware today, creating the ability for blockchain integration in the near future, such as what IBM InfoSphere Master Data Management is doing this year.
Others will lose ground.
Source: gigaom.com
Expectation Versus Reality: Are boardrooms blocking digital revolutions?
There’s a heck of a lot of new technology available in the market. From artificial intelligence to blockchain, companies are inundated with new tools and solutions that promise to revolutionize aspects of their business they didn’t even know could be (or needed to be) improved.
For executives facing intense pressure to keep up with the latest technology trends to remain competitive, figuring out what the true value is, versus more noise, is a daunting task.
And unfortunately, this is leaving many companies to decide to stick with the status quo – so they’re falling behind.
A new survey by Gartner found that 91 percent of companies still haven’t reached a “transformational” level of maturity in data and analytics, despite this having been the number one priority for CIOs in recent years.
As most businesses have not yet been able to fully implement and reap ROI for data analytics, which is the foundation of popular technologies like AI and machine learning, it’s clear these new tools still have a long way to go before they exit the ‘hype’ cycle and enter into operational reality.
But while the board may evangelize these major technology initiatives, what they need to realize is that these major digital disruptions are a long-term strategy that requires ongoing thought, planning and incremental tech investments.
Simply having an end goal to make AI a reality in your business to reap the many benefits it presents won’t necessarily get you there. Today, there are smaller tech trends that are fully operational and promise to bridge to the future. One such example is automation.
While not as sexy or media-worthy as AI in grabbing business news headlines, software robots today can perform a lot of the repetitive and time-consuming business tasks across departments with faster speed, accuracy, and ROI – directly benefiting the bottom line.
But any business automation rollout has to start from the top. It requires careful planning and backing from the board in order for the c-suite to correctly navigate the changes it brings – operationally, culturally and technologically.
Here are three ways that the boardroom can break out of old habits and bring on the digital revolution.
Remove the bottlenecks
It’s clear that automation is at or near the top of the priority list, and the C-suite is beginning to reflect this. According to a survey by KPMG, 25 percent of enterprises worldwide now have a Chief Digital Officer to lead this change.
However, the CDO has a long road ahead of them. A recent survey revealed that in 74 percent of organizations, automation is only being implemented by the IT department. Unfortunately, that’s a recipe for failure.
On average, 25 percent of technology projects fail, and many more show little return on investment or need significant alteration to be successful. Often, it’s because IT projects are simply that: IT projects.
Automation isn’t just an IT function; it’s a function of the entire business, which means that a top-down leadership approach is critical to success. For IT leaders, getting C-suite buy-in from the very beginning not only establishes overarching business goals, it cements the project scope and removes potential bottlenecks or silos.
Be a champion
As the technology revolution continues, more and more business leaders are finding themselves boasting a new title: digital champion. A recent survey found that 68 percent of executives believe their CEOs are “digital champions,” up from 33 percent just ten years ago.
It is clear organizations have come a long way, but there’s still a ways to go.
Today, those in senior positions must take the lead in the robotic revolution, and not just on the project scope. To spur true change, leaders must foster a culture that not only understands automation technology but openly accepts it as necessary to carry out business functions.
When business leaders evangelize the benefits on both an executive and employee level from the very beginning, it removes the fear of the unknown, allowing for open dialogue and communication across all departments.
Fan it out
With recent news reporting that one-third of jobs will be automated by 2030, a common concern for the human workforce is that robots are coming to steal their jobs. However, that’s simply not the case.
Automation isn’t a threat; it’s an enabler. And, for employees who are mired in manual work, it will be a breath of fresh air. With effective leadership, employees can recognize the opportunity and shift attitudes towards incoming technology.
As the need for automation increases, business leaders can’t make decisions in a vacuum. Instead of simply swapping humans for robots, the C-suite must solicit feedback from the employees who will be affected by automation and look for ways to retrain or repurpose roles and duties.
By focusing on the high-level strategic activities that require empathy and communication and giving them a say in designing new responsibilities, employees can bring real value to the business while feeling safe and secure in the midst of change.
The business world is transforming, and technology is driving business objectives faster than ever before. There are a number of benefits to implementing automation, but it’s up to the C-suite to design a plan that allows the business to maximize return on investment.
As with any new deployment, success starts in the boardroom.
by Dennis Walsh, President, Americas & APAC, Redwood Software
Dennis Walsh is responsible for operations of Redwood Software in North America, LATAM, South America as well as the Asia Pacific. Walsh combines his business background and years in the software and services industry to successfully solve some of the most challenging IT and business automation issues.
Source: gigaom.com
When World’s Collide: Blockchain and Master Data Management
Master Data Management (MDM) is an approach to the management of golden records that have been around over a decade only to find a growth spurt lately as some organizations are exceeding pain thresholds in the management of common data.
Blockchain has a slightly shorter history, coming aboard with bitcoin, but also is seeing its revolution these days as data gets distributed far and wide and trust has taken center stage in business relationships.
Volumes could be written about each on its own, and given that most organizations still have a way to go with each discipline, that might be appropriate. However, good ideas wait for no one and today’s idea is MDM on Blockchain.
MDM on Blockchain.
Thinking back over our MDM implementations over the years, it is easy to see the data distribution network becoming wider. As a matter of fact, master data distribution is usually the most time-intensive and unwieldy part of an MDM implementation anymore.
The blockchain removes overhead, costs, and unreliability from authenticated peer-to-peer network partner transactions involving data exchange. It can support one of the big challenges of MDM with governed, bi-directional synchronization of master data between the blockchain and enterprise MDM.
Data Governance
Another core MDM challenge is arriving at the “single version of the truth”. It’s elusive even with MDM because everyone must tacitly agree to the process used to instantiate the data in the first place.
While many MDM practitioners go to great lengths to utilize the data rules from a data governance process, it is still a process subject to criticism.
The consensus that blockchain can achieve is a governance proxy for that elusive “single version of the truth” by achieving group consensus for trust as well as full lineage of data.
Blockchain Tackles Challenges in MDM.
Blockchain enables the major components and tackles the major challenges in MDM.
Blockchain provides a distributed database, as opposed to a centralized hub, that can store data that is certified, and for perpetuity. By storing timestamped and linked blocks, the blockchain is unalterable and permanent.
Though not for low latency transactions yet, transactions involving master data, such as financial settlements, are ideal for blockchain and can be sped up by an order of magnitude since blockchain removes the grist in a normal process.
Blockchain uses pre-defined rules that act as gatekeepers of data quality and governs the way in which data is utilized. Blockchains can be deployed publicly (like bitcoin) or internally (like an implementation of Hyperledger).
There could be a blockchain per subject area (like customer or product) in the implementation. MDM will begin by utilizing these internal blockchain networks, also known as Distributed Ledger Technology, though utilization of public blockchains is inevitable.
A shared master data ledger beyond company boundaries can, for example, contain common and agreed master data including public company information and common contract clauses with only counterparties able to see the content and destination of the communication.
Hyperledger is quickly becoming the standard for the open-source blockchain. Hyperledger is hosted by The Linux Foundation. IBM, with the Hyperledger Fabric, is establishing the framework for blockchain in the enterprise.
Supporting master data management with a programmable interface for confidential transactions over a permissioned network is becoming a key inflection point for blockchain and Hyperledger.
Data Management
Data management is about the right data at the right time and master data is fundamental to great data management, which is why centralized approaches like the discipline of master data management have taken center stage.
MDM can utilize the blockchain for distribution and governance and blockchain can clearly utilize the great master data produced by MDM. Blockchain data needs data governance like any data. This data actually needs it more given its importance on the network.
MDM and blockchain are going to be intertwined now. It enables the key components of establishing and distributing the single version of the truth of data. Blockchain enables trusted governed data. It integrates this data across broad networks. It prevents duplication and provides data lineage.
It will start in MDM in niches that demand these traits such as financial, insurance and government data. You can get to know the customer better with native fuzzy search and matching in the blockchain. You can track provenance, ownership, relationship and lineage of assets, do trade/channel finance and post-trade reconciliation/settlement.
Blockchain is now a disruption vector for MDM. MDM vendors need to be at least blockchain-aware today, creating the ability for blockchain integration in the near future, such as what IBM InfoSphere Master Data Management is doing this year. Others will lose ground.
Source: gigaom.com