Hi it's jesper here the topic of this data architecture video
is how to design for scale and automation what does data scale and automation have in common
well the answer will be clear at the end of this video
let's start with unpacking data
why is data important it's because the world is becoming increasingly digitized at work
at home while we sleep while we exercise digital is infiltrating all aspects of life so what does
digital got to do with it after all what we're going to talk about data scale and automation
it will be clear in a second let's unpack digital and remove the fluff or as hans hoffman said
he was really paraphrasing picasso remove the unnecessary so only the necessary remains
removing the unnecessary from digital leaves us with the necessary the two atomic building blocks
which everything digital is built on zeros and ones and zeros and ones are
data everything in the digital world is data think of data as a lubricant in a digital system
where data quality is the amount of lubricant the higher the data quality the more lubricant
and the faster it goes and speaking of lubrication what is the f word in the digital world
friction for example do you know how much petrol is used to propel the car forward
assuming that is a petrol fuel car of course between 10 to 15 unless it's fitted with start
stop technology then it might be as higher 30 the rest is friction and hence waste
this means that friction can be added to the certainties of life alongside of death and taxes
here is the kicker when we remove friction we get scale
in the digital world there is no friction
it is frictionless and this is the reason we want digital we have not established the
relationship between data and scale so let's unpack scale what this game
it's a bit like being a teenager everyone talks about it but no one is really doing it
scale goes to the heart of growth but it's not any kind of growth for example if we grow a
business by one dollar and it costs us 90 cents to do so we're talking about a growth rate of 10
scale is a different kind of growth which breaks this relationship scale is growth at near zero
cost scale allows an organization to grow without acquiring more assets or employing more people
well that sounds great so why are only talking about it why are we not doing it
well we are sort of through euphemisms like digital transformation
idc forecasts that global spending on digital transformation between 2020 and 2023
will reach a staggering 6.8 trillion dollars that's u.s dollars
it equates to a third of the entire usa economy
with that much spent we must be creating a lot of scale but not according to the experts
according to mckinsey 84 of digital transformation projects failed and gartner believes that only
one in ten organizations are able to realize the digital ambitions so what is going on
let's get to the heart of the matter
any system that was not designed for scale will never achieve scale no matter what we do
i realize this is a strong and opinionated statement but there is no point in putting
lipstick on a peak there is no point in trying to unravel what we have already built
for example if we want a data-driven and scalable crm we need to build a new one
building new does not itself guarantee success for example if we build a new crm
using the same mindset and thinking that we created it with we will recreate what we have
that is a crm that's not scalable which brings us to the key critical success factor
a mindset change a data mindset change where data takes a center stage
it means we cannot define requirements in the way that we did in the past
by unpacking a process or a function it probably makes sense now that we need to unpack data
because if scale depends on data it makes no sense to unpack a process or function
the mindset shift is big because it contradicts a lot of what we have learned
this mindset shift is especially difficult but better subject of a future video
for now i'm going to share two frameworks the first one you'll probably heard of people
process and technology it has been around since the 1960s which makes it more than 50 years old
it forms the basis of what i call the analog operating model as it was designed for the
analog world it focuses on productivity and efficiency by removing friction
we have already established there is no friction in the digital world
so this model and mindset is not going to work but if we replace process with data everything changes
we shift the focus from efficiency and productivity to scale and automation
and create the foundation for the digital operating model
this is very interesting and provides a theoretical basis the why and the bot
for data in scale but how do we do it that is a million dollar question which we will unpack
in part 2 of this video in part 2 we will unpack a call center
and a software trial process and show exactly how to design for scale and automation
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