Why Combine Data Outside the Enterprise IT Landscape

Attempting to integrate external data sources directly into existing IT landscapes is often highly complex in terms of scope, time, and cost. It may also derail ongoing projects that IT teams are already handling. To address this challenge, many organizations are adopting a process called “Data Offboarding”. In this approach, companies with expertise in integrating data from various sources and funneling it back to enterprise IT systems are entrusted with these tasks.

• Availability of Broader Data Sets and Variety of Data (Structured/Unstructured)

External data sources such as social media feeds, publicly available data, and third-party providers offer a wealth of information that traditional IT systems cannot provide. These external datasets are often unstructured or semi-structured. Combining them with enterprise data adds variety and depth to the insights derived. Examples: Weather Data, Market Research Data, Sensor Data, Social Media Feeds

• Cost-Effectiveness

Integrating external data directly into IT landscapes is complex. The rigidity of enterprise data models often prevents changes to data structures, necessitating costly customizations. These customizations not only consume time and resources but also increase the complexity and cost of future upgrades.

• Improved Forecasting and Risk Management

External data provides valuable inputs to enhance forecasting models and improve risk management strategies. In industries like finance, insurance, and manufacturing, external data sources—such as market trends, geopolitical events, and economic indicators—can help predict risks or opportunities. For instance: Insurance companies can use weather and geospatial data to assess risks and determine premiums.

• Embed Data into Business Process

Embedding data into business processes is crucial. Why is this so important? Traditional IT systems often implement processes that depend on multiple systems to fetch and display data for decision-making. However, these systems can cause delays when one of them is unavailable or unresponsive, potentially stalling the entire process and delaying critical decisions.

There are multiple approaches to embedding data into business processes:

• Embed Entire Data for the Process: This ensures all required data is immediately available for the process.
• Use References and Fetch on Demand: While this approach minimizes initial data loads, it may not resolve dependency issues caused by system unavailability.
• Mixed Strategy: Combine both methods based on system availability and supporting infrastructure, tailoring the solution to specific needs.

• Scalability of the Solution

Nextqore’s cloud-based offboarding solution is both cost-effective and scalable. It eliminates the need for permanent infrastructure investments from the customer. This flexibility allows businesses to access data from multiple external sources without heavily investing in internal IT infrastructure.

The demand for real-time and enriched data is rapidly evolving. Combining internal and external data sources has become essential for organizations striving to remain competitive. Organizations often incur significant losses due to the unavailability of relevant data or delayed information. Offboarding extends data horizons beyond the enterprise IT environment, enabling businesses to access a wealth of opportunities for improved decision-making, innovation, customer insights, and risk management.

The right tools and technologies are essential to ensure external data is ingested and utilized in ways that align with business goals.