How to Take Advantage of Modern Data Architecture

Data is one of the biggest drivers for modern businesses. You can collect and use data on almost anything to improve your business, from clients’ social media preferences to specific buying times for certain demographics. It’s important that your organization pivots to a modern data architecture approach to get the most out of this nearly endless supply of data and insights.

In this article, we’ll look at what modern data warehouse architecture is and how you can use it to make better decisions for your business.

What is Modern Data Architecture?

Data architecture is the governance of your organization’s data. This includes the guidelines, rules, and procedures to collect, store, and use data within your organization. Modern data architecture is the use of modern technologies, processes, and governance practices to process emerging data sources, like big data. Using modern architecture allows your business to be efficient, proactive, and accurate when collecting, storing, or using data.

Traditional vs. Modern Data Architecture

Why is it so important for businesses to move to modern architecture? Most traditional data architecture systems simply can’t handle the volume, complexity, and speed of modern data. Traditional data architecture generally involves an on-site data storage and analytics system. These systems often require specialized IT knowledge to maintain. When a team member needs something related to data, most traditional systems require an IT member to access the data and generate a report for the other team member. Depending on current capacity and time sensitivity, this process could take a few hours to weeks at a time.

Modern architecture processes remove almost all of the limitations of traditional data architecture. Unlike traditional systems, modern data systems are generally cloud-based and have customized access for each user. That means no on-premise warehouses for the IT team to maintain. It also means users can access the data they need and create reports without involving the IT team, cutting out a time-consuming step in data analysis.

Benefits of Modern Data Architecture

Moving from traditional data warehouses to modern architecture systems creates more efficient and effective data management across your organization. Effectively managing data leads to more powerful insights and bigger impacts on your bottom line. Notable benefits of switching to modern architecture include:

  • Data Cost Savings: On-site data collection and storage are expensive. You have to pay to purchase the hardware and systems, plus the cost of ongoing maintenance. These costs also usually include a full-time IT team member who is in charge of managing the systems and handling issues when things don’t go as planned. Upgrading to modern architecture reduces or eliminates many of the traditional costs of using data. Cloud-based systems are usually less expensive than on-premise systems and could include general maintenance — such as regular updates — from the system itself.
  • More Accurate and Defined Insights: Modern big data architecture gives you the tools to cut through the noise when collecting data. These tools can be used to pinpoint the data you need from a variety of sources. The result is more accurate insights into the needs of your clients and your business.
  • Improved Business Agility: One of the marks of a successful modern business is the ability to be flexible in the face of change. Markets, competitors, and client needs are prone to change without notice, especially in the digital age. Modern architecture helps your business proactively meet challenges and make adjustments as needed for a more agile business.
  • Grow Brand Advocacy: Give your clients the best customer experience, and they’re more likely to come back again and again. Using a modern approach to data architecture gives your clients a completely customized experience. This tailored experience can create a lifelong client and brand advocate for your organization.

4 Tips for Switching to Modern Data Warehouse Architecture

Changing from an on-site data warehouse to modern architecture is no small feat, but doing so can put a lot more power in your data. You’ll see more effective data insights for a more effective business. The good news is there are steps you can take to make the transition easier for you and your team.

  1. Get Flexibility from the Cloud: If you’ve never worked in the cloud, you might be hesitant to move your data management to a cloud-based system. However, cloud-based solutions not only make data management easier for your IT team, but they also give your business more flexibility. A cloud-based solution can be scaled to meet business needs as your business changes.
  2. Look for Smart Data Tools: Today’s AI and other automated technology can do a lot more than remember details about a client. Many modern tools include machine learning. This means they can begin to anticipate client needs or decisions based on previous behaviors. Depending on your needs, investing in these smart tools can take your data architecture to completely new levels, with benefits like more sales or higher customer satisfaction scores.
  3. Focus on Your Clients: Modern business management focuses on client needs above all else. Making your clients your top priority ensures your business is working in the best interest of your clients, ultimately creating more effective products and services. Work backward from client to product to business processes to create a client-centric data architecture strategy.
  4. Customize Your Solutions: You’ll have a hard time finding a modern data tool, software, or system that isn’t customizable. Even basic tools often have settings and configurations to customize the tool to your needs. Customizing your data technology gives you more from your solution. A solution tailored to your needs also helps reduce your data architecture costs, as you won’t be paying for features you don’t need.

Get More From Your Data Than Ever Before

Are you still wondering how to take advantage of a modern big data architecture? The 5P team can help you get a better understanding of modern data and architecture systems available for your business. Start receiving more from your data by chatting with us during a free consultation today.

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