From Data To Profit

CHAPTER 7The Monolith—Technical Strategy

What does a data-driven business look like? How does transformation change the business and operating models? C-level leaders need a top-level strategic construct to make decisions about technology from a value-centric perspective. That includes technologies they don't completely understand.

The technology model and technical strategy frameworks reduce the complexity of those decisions. Business goals should be the guiding principles behind how the business decides to leverage data and AI. Monetization and competitive advantages are locked in the data team. The technology model begins the process of unlocking both.

In this chapter, I'll define business and operating models for those new to the concepts. I explain how data and AI transform both, creating opportunities and threats. This supports the need for technical strategists and the technology model, which I cover in greater detail.

The Business Model

Most companies have one or more business models, and most don't understand them. Why? Legacy business models don't generate data. Exploring business and operating models reveal the oceans of data contained in and continuously generated by businesses. Almost none of it is being captured. All the data businesses gather is only a fraction of what's there.

The business model is a statement of value creation. It explains what the business monetizes, which, most times, is what it sells, and explains why the business exists. At the heart ...