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Upgrading a data platform for your transactional or analytical tasks can seem daunting, but it is often necessary. You may be looking for improved performance, cost savings, better integration, enhanced security, or incorporation of modern capabilities - for instance, streaming data processing, real time analytics or artificial intelligence. All have the potential to significantly benefit your organisation.
Choosing the right strategy to implement it is essential. This article defines three sample strategies: top-down, bottom-up, and side-to-side, and offers guidance on how to use them to build a future-ready data platform.
The top-down approach begins with a well-known component, like a dashboard or API, and builds all the underlying assets from there. This method is effective for quickly establishing trust and showing immediate value to stakeholders.
Advantages of the top-down approach
Immediate visibility: By starting with a dashboard, stakeholders can quickly see the value of the data platform. This visibility helps secure buy-in and funding for further development.
Clear objectives: The top-down approach often begins with well-defined business objectives, ensuring that the development aligns with strategic goals.
Stakeholder engagement: Engaging stakeholders early in the process can lead to better alignment and support for the project.
Challenges of the top-down approach
Complexity: Developing all the underlying assets to support a dashboard can be complex and time-consuming.
Dependency management: Ensuring that all components are correctly integrated and functioning can be challenging.
Risk of over-engineering: There is a risk of building more than what is necessary, especially when multiple independent projects commence at the same time, leading to increased costs and time.
Best practices for top-down implementation
Start with a clear vision: Define the key data elements for the platform along with the associated metrics and KPIs.
Iterative development: Use an iterative approach to develop and refine the dashboard and underlying assets, taking care to avoid overlapping domains.
Engage stakeholders: Regularly involve stakeholders to gather feedback and ensure alignment with business goals.
The bottom-up approach focuses on working within a domain to identify adjacent data sets. This method is particularly useful for enabling more exploratory use cases using machine learning and other advanced analytics techniques.
Advantages of the bottom-up approach
Flexibility: This approach allows for more flexibility in exploring and experimenting with different data sets.
Innovation: By focusing on domain-specific data, teams can uncover new insights and opportunities for innovation.
Scalability: The bottom-up approach can be scaled incrementally, reducing the risk of large-scale failures.
Challenges of the bottom-up approach
Lack of immediate visibility: Unlike the top-down approach, the bottom-up method may not provide immediate visible results to stakeholders.
Potential for siloes: There is a risk of creating data silos if not managed properly.
Alignment with business goals: Ensuring that the implementation aligns with broader business objectives and priorities can be challenging.
Best practices for bottom-up implementation
Start small: Begin with a small, manageable domain and gradually expand.
Encourage experimentation: Foster a culture of experimentation and innovation to show value being delivered through the platform.
Foster collaboration: Develop mechanisms to share domain-specific insights to strengthen the broader data platform.
The side-to-side approach involves finding sets of adjacent dashboards and datasets, making it particularly useful for performing migration and uplift from legacy technology stacks.
Advantages of the side-to-side approach
Efficiency: This approach can streamline the migration process by focusing on related datasets and dashboards.
Reduced disruption: By migrating adjacent systems together, the impact on business operations can be minimised.
Cost-effectiveness: This method can help identify and eliminate redundant systems, reducing overall costs.
Challenges of the side-to-side approach
Complexity of migration: Migrating legacy systems can be complex and require careful planning.
Data consistency: Ensuring data consistency and integrity during migration can be challenging.
Stakeholder management: Managing expectations and securing buy-in from stakeholders can be difficult.
Best practices for side-to-side implementation
Thorough planning: Develop a detailed migration plan that includes timelines, resources, and risk management strategies.
Incremental migration: Migrate systems incrementally to reduce risk and ensure stability.
Engage stakeholders: Communicate regularly with stakeholders to manage expectations and gather feedback.
The concept of an MVP for data platforms can be subjective, as different approaches demonstrate value in different ways. It may be:
Top-Down: A functional dashboard with key metrics.
Bottom-Up: A set of exploratory insights or a machine learning model.
Side-to-Side: A successfully migrated and integrated set of dashboards and datasets for a domain.
Key considerations for MVP development
Define clear objectives: Establish what constitutes an MVP for your specific context.
Focus on value: Ensure that the MVP delivers tangible value to stakeholders.
Iterate and improve: Use feedback to refine and enhance the MVP.
Regardless of the chosen approach, the best strategies ensure sustainable value delivery.
Key elements of sustainable value delivery
Continuous improvement: Implement, test and improve processes for continuous innovation.
Stakeholder engagement: Maintain regular communication with stakeholders to ensure ongoing support and alignment.
Performance metrics: Develop and track performance metrics to measure the impact and value of the data platform.
Best practices for sustainable value delivery
In conclusion, choosing the best approach for your data platform depends on your specific needs and goals. A fit-for-purpose Data Strategy can help identify the drivers and inform your decision-making.
Each of the sample strategies — top-down, bottom-up, or side-to-side — has its own benefits and challenges, and defining one to address your specific circumstances is essential. By understanding the data ecosystem, defining a clear MVP, and focusing on sustainable value, organisations can successfully develop their data platforms and achieve their strategic goals.
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Mo Bashir
Partner, Advisory, PwC Australia
Chris Westhorpe
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