For enterprises seeking digital transformation, how to manage the company's data resources so that the data can generate value and effectively serve the front-end business? In 2019, the most popular answer is undoubtedly “data center”.
1. What is a data center?
(1) Front-end, middle-end and back-end
The front-end refers to the front-end platform composed of various front-end systems. Each front-end system is a user touchpoint, that is, a system that the enterprise's end-users directly use or interact with, and is the intersection between the enterprise and the end-users.
Backend refers to the backend platform composed of backend systems. Each back-end system generally manages a type of core resources (data computing) of the enterprise, such as financial systems, product systems, customer management systems, warehouse logistics management systems, etc. These systems form the back-end of the enterprise.
The front-end and the back-end are like two gears with different speeds. The front-end needs to respond quickly to the needs of front-end users and emphasizes rapid innovation and iteration, so the faster the speed, the better; while the back-end is faced with The back-end resources are relatively stable, and the system is old and complex, and is even subject to relevant compliance constraints such as laws and regulations, so stability is often the top priority, the more stable the better, and the slower the speed, the better.
With the continuous development of corporate business, this problem of "imbalanced matching" of gear speeds in the "front and back offices" has gradually emerged. The middle stage is like adding a set of "variable gears" between the front stage and the back stage, matching the speeds of the front stage and the back stage. It is a bridge between the front stage and the back stage. It is born for the front stage, is easy to use at the front stage, and integrates the background resources. Flow smoothly to users and respond to users.
(2) The origin of "data middle platform"
"Data middle platform" is not a professional term. Simply put, it refers to the processing of massive data through data technology. A platform that collects, calculates, stores, and processes data with unified standards and standards to manage and apply enterprise data assets. After the data is unified, the data center forms standard data and then stores it to form a big data asset layer to provide customers with efficient services.
The concept of "data middle platform" was first proposed by Alibaba in 2015. Alibaba believes that the data center is a "fast", "accurate", "complete", "unified" and "common" intelligent big data system that integrates methodology, tools and organization. Through years of unremitting efforts, and with the continuous catalysis and nourishment of the business, Alibaba people have accumulated their own technology and business capabilities into a comprehensive capability platform, and have the ability to respond quickly to front-end business changes and innovations.
Zhong Hua, chief architect of Alibaba middleware and author of "Alibaba Middle Platform Strategic Thought and Architecture Practice", said that in the process of using Alibaba technology to promote the digital transformation of enterprises and establish a digital middle platform, the first The big challenge is business, followed by technology. The so-called business challenge is to deposit the most comprehensive business modules into the shared business middle office from a business perspective, and then separate the personalized business to form the front office, forming a new pattern of "large middle office, small front office" .
Alibaba’s core experience in developing the digital middle office is that the original shared IT department must find a strong Internet business as a starting point and turn itself into a core business department before it can truly Transform into the enterprise's shared business division, rather than some kind of deformed, shared IT department with the same medicine. This is what Alibaba's shared business division calls "business nourishment" concept.
2. Why should companies deploy data middle platforms?
The core value of the data center is to help enterprises plan, manage and integrate trivial business data in a unified manner to form a value realization channel that conforms to the characteristics of the enterprise - that is, the enterprise's "digital assets". In this process, the main issues targeted by the data center are to improve the company's data governance capabilities, provide data management tools, and improve data utilization efficiency.
For traditional enterprises, in order to build a competency center, it is not enough to build one end. They need to connect these ends. A "special force" is of no use. What it really needs is to build up its own artillery and radar capabilities. The ultimate goal of the data middle platform is to "digitize all businesses and operationalize all data", gather all data into the data middle platform, open up the data flow and data links of each business line, and understand the current status of enterprise data.
When providing data services for data applications, it reduces repeated development of data platforms and redundant data storage, thereby reducing enterprise costs. At the same time, a unified data storage, data usage model center, and competency center are established to aggregate data in related business fields, solve the demand for data interconnection, and realize that one plus one is greater than two in terms of data value.
Take Alibaba as an example. Its data middle-end system consists of three core components: diversified data collection and access, public data center, and unified data services. It has successfully deployed in new retail, finance, and logistics. , marketing, tourism, health, entertainment, social networking and other Alibaba business ecosystems have realized business digitization and data commercialization, empowering the business front-end and the cloud in both directions.
Alibaba’s open data platform helped the membership of Haidilao’s Yunshanglao APP to soar in 2018. What’s even smarter is that the application can accurately profile each user and remember each user. according to the tastes and preferences of each user, thereby achieving personalized and customized "thousands of people, thousands of pots" service. Public data shows that as of now, the number of registered members of Yunshanglao has reached 45 million, an increase of 50% compared with 2018. In addition, CCTV, ASUS, RT-Mart, etc. are already enjoying the services of Alibaba Data Center.
Alibaba’s Alipay has transformed from a financial payment tool into an open platform for digital life. It can not only purchase financial services, electronic payments, borrow money, and repay credit cards, but also add conveniences such as takeaways and fruit and vegetable stores. plate. Alipay wants to do only one thing, and that is to become a part of people's lives. To achieve this goal, it depends on the transformation of small and medium-sized enterprises to digital operations.
3. How do companies lay out their data platforms?
From the perspective of enterprise applications, it is not easy to use a data center to manage business data and mine data value. The digital middle platform has four main processes for enterprises:
(1) Connection
Internally, enterprises need to connect front-end and front-end, front-end and back-end supply chain, manufacturing Systems communicate with each other. Externally, identify and plan data links between people, people and things, and things and things in all business scenarios, and sort out business data demand scenarios based on enterprise characteristics.
(2) Accumulate core capabilities
Unify planning, collection, and storage of dispersed business data, and establish a data asset catalog to lay the foundation for business digital governance. The actual competitiveness of each enterprise is different. Some win based on products, and some win based on cost. But these core capabilities must be consolidated before they can be empowered for new businesses.
(3) Turn data into assets
According to Alibaba’s “digital operation”, business is digitalized and data is capitalized. In the past, we didn’t even know who the consumers were, and very little of this data was accumulated. Today's technology allows you to digitize your business, but how do you use the data accumulated by many companies? The middle office solves this problem by utilizing data resources and turning them into data assets. Build a data middle platform, and business lines such as production and processing, logistics and transportation, financial control, marketing, and customer management will form a fast and stable data value processing channel.
(4) Let assets realize their value
After data becomes an asset, you need to find a scenario to use it. To give a simple example, how does Starbucks make money? Comes with meals. Coffee itself often does not make money, it is just a traffic business. But it uses scene-based things to find ways to recommend side meals to you. This is the process of scenario-based data assets.
Another example is bicycle sharing, which may not necessarily make you more money, but after collecting data, you can make money through data services. This is especially true for companies that open stores offline. It is very difficult to train a good store manager offline, but if you have a lot of data, you can use artificial intelligence to replace many of the store manager's tasks, because the store manager is nothing more than replenishing goods and selecting products.
In the future, the data center will be an important support for digital operations. Through the accumulation of data and technical means, we can provide users with better services. The data center was born based on this concept. Through the data middle platform, we can improve the efficiency of enterprises, continuously improve user responsiveness, realize data-based operations, and better support business development and innovation.
Today, the data center is a very attractive digital solution for many companies, but companies need to drive the digitalization process based on business needs, and cannot blindly proceed with a little knowledge. When companies are in Driven by clear business needs and equipped with complete digital solutions, the chance of transformation failure can be reduced.