Disentangling the value of information and analytics through componentized business architecture

Abstract

Data has been a key resource in the operation of enterprises for quite some time. Information technology practices have been created to manage data from a variety of perspectives. The growth of data sources and the need to obtain more value from huge volumes have paved the advent of business analytics. Expectations from business managers and executives have risen accordingly. Today, the need to align the value of information and analytics to the resource-base of an organization has become the 'new normal'. Realizing this potential calls for new practices, i.e., IT-centric data management activities need to be complemented with business-centric practices that help understand raw and analytical information entities and their value to operations and strategy. This paper presents models and techniques to help assess the value of information and analytics at the realm of the asset base of organizations. The approach is based on models of business operations and the way information (raw and analytical) is connected to the organization and its business priorities. This linkage builds upon the notions of componentized business architecture, simplified information metamodel and basic relationship between the two concepts. A real-world case study in the insurance industry with the corresponding business architecture frameworks and information models illustrates the practical value of the approach. © 2012 IEEE.