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1、HFSDontgetf1ummoxedbydataestatemodernization.Getfocused.AmajorNorthAmericanbankusesCapgeminiandGoog1etomodernizeitsdataestate.Joe1Martin,ExecutiveResearch1eaderE1enaChristopher,ChiefResearchOfficerDespitedecadesofinvestment,banking,andfinancia1services(BFS)5firmsstrugg1ewithde1iveringdatatowhereitca
2、nbeusedmosteffective1ywhi1emeetingriskandregu1atoryreportingrequirements.Thesestrugg1eshave1edtoashiftindatastrategyyie1dingcontro1fromsi1oedoperationstoadatamanagementmode1uti1izingahybridc1oudarchitecture.Asharedunderstandingbetweenc1ientandpartnerofwhatadataestatemeansandhowtheyco11aborateiscruci
3、a1.Adataestateisgenera11ydefinedasthecomponenttechno1ogymakingupafirm,sdataarchitecture.Theseinc1udethedatawarehouseorstoragearchitecture,therepositoryforrawdata(e.g.,data1akes),anddatamarts(ana1yticstoo1s,softwareapp1ications,andreportingtoo1s)usedtocreateaccesstothedata.Many1egacydataestatesrunonm
4、ainframes,arehousedwithinon-premisesdatacenters,andareaccessib1ethroughmu1tip1eSQ1databasesandbusinessinte11igence(BI)too1sorapp1ications.Asanorganizationmigratestoamoderndataestate,manyoftheseso1utionsarerearchitectedtooperateinahybridc1oud(amixofprivateandpub1icc1oudandon-premisesso1utions)or100%a
5、sc1oud-nativeso1utionsarchitecture.Amodernestate1everagestechno1ogies1ikeNoSQ1,ac1oud-baseddatawarehouseanddata1akehouses,andana1yticstoo1s1ikeGoog1e,sBigQuery.Giventhecomp1exityofdataandtheneedtomanageiteffective1y,itisadvisab1etothink1essaboutthetechno1ogycomponentsandmoreaboutthesourcesofthedata,
6、therunningandmanagingofdatatofeedmu1tip1edatarequirements,andthesurfacingofthatdatathroughapp1ications,integrations,andana1ytics.Dataestatecomp1exitycan1eadtoatechno1ogy1eaderwonderingwheretheyshou1dstartoriftheyshou1dstartata11.The1eader,schoicesaretypica11ytwo-fo1d.First,theycou1dchooseaniterative
7、approachthatW川yie1dbenefitsandensureaccurateresu1ts,butthattakestime,ortheycou1dse1ectaprocessthatdeve1opsamoderndatamanagementfoundationthattreatsdataandinsightsasseparatebutequa11yimportantdataassets.Eitherpathrequiresafirmtoinvestinpartnershipstoaugmentresources,addtechno1ogycapabi1ities,andaddre
8、ssfinancia1regu1atory,governance,andsecurityrequirements.Thejourneytobetterdataisnevercomp1ete.Evenaswewrotethispaper,manyfirmsseekguidanceonhowtheirdatawi11fu1fi11thedemandsofgenerativeA1mode1s1ikeChatGPTorGoog1e,sBard.Andwhi1econsideringthefutureimpactofthese1arge1anguagemode1s,itsc1earthatthosefi
9、rmsworkingovertimetomodernizetheirdatawi11bebestsuitedtogainanadvantagefromthesegame-changingso1utions.Setyourse1fupforsuccessbyadoptingpractica1stepstodataestatemodernization.Modernizingdataiscomp1ex.However,simp1ifyingthediscussionarounda1igning,accessing,bui1ding,running,andmanagingdatatodrivebus
10、inessoutcomesiscrucia1togainingsupport.WerecommendthestepsshowninExhibit1toframethejourneyandensureeveryone,fromtheCEOtothebusinessana1yst,understandsthestepstotake.Exhibit1:Fivecorestepstomodernizethedataestatetode1iverbusinessoutcomesA1ignstakeho1derswithcommongoa1sandac1earviewofva1uecreationAsse
11、ssthecurrentdataestate;out1inetargetadaptabi1ity,access,andcontro1sBui1dforfutureneedswithahybridc1oudforsca1e,access,andmanagementRunthedatafabricbasedonhowdataiscaptured,composed,andconsumedManagedatathroughc1oud-centricdatagovernancemode1Source:HFSResearch,2023A1ignstakeho1derswithcommongoa1sanda
12、c1earviewofva1uecreation.Aspartoftheirjourney,atechno1ogy1eadertaskedwith1eadingthedatamodernizationeffortsfortheirfirmwi11needtogainexecutivebuy-in,qua1ifypartnerships,anddefineoutcomes.Inaddition,theywi11needtobui1dpartnershipswithfirmsthatknowtheindustryandcananticipatethetechno1ogyrequirements.F
13、orag1oba1bank,changingthedataestatecancreaterisk,butoverwhe1ming1y,HFS,po11ingofbanking1eadersindicatesdataisparamounttomeetingstrategicpriorities(seeExhibit2).For1argeBFSfirms,thecha11engeswithdatainsi1os1imitprofitabi1ity,inhibittransactionspeed,andweakentheorganizationsabi1itytomakethesounddecisi
14、onsitscustomersexpect.Theneedtohavedataasanassetiscritica1todecision-making.Inthebank,sexistingmode1,makingtime1ydecisionswascha11enging.Forexamp1e,asisoftenthecase,abankwi11haveterabytesofdata;assuch,thetimeneededtoassesstheaccuracy,inputs,anddependenciescannoteffective1ybecata1ogedbyhumanefforta1o
15、ne.Additiona1too1stoautomatediscoveryandassessmentarecrucia1tomodernizethedataestate.Capgeminiworkedc1ose1ywitha1argeU.S.banktomakethishappen.Asthebusiness1eaderfromthebanksharedwithHFS,Theamountoftimeittookandthevo1umeofdatawashinderingbusiness.Weneededtomodernizehowwemanageddatatodrivemoreho1istic
16、decisionmaking.-HeadofIntegratedDataServices,majorNorthAmericanbankingandfinancia1servicesfirmIntoday,sevo1vingfinancia1markets,customerneeds(fromcapita1marketstoretai1banking)andregu1atoryrequirementscompoundtheneedfordatatoimproveasaworkingasset.Todoso,differentpartsofthefirmwi11needaccesstodatapipe1inesthatpu11fromadataestateencompassinga11thebank,sdataassets.Sowhi1eshedding1ightondrivena1ignmentcanbedone,therea1worki