In 2014, Jay Kreps introduced Kappa Architecture, a software approach designed for data streaming and system decoupling.
The Data Fabric concept, aimed at connecting data across organizations, was first introduced by Forrester in 2013. Its core principle is data integration, which addressed the predominant challenge of the 2010s—siloed data. However, today’s organizations manage hundreds or even thousands of integration interfaces, struggling to support existing systems while developing new use cases. This growing complexity has made it evident that the traditional approach to data integration is outdated.
In 2023, Forrester introduced “Data Fabric 2.0 for Connected Intelligence”, a reference architecture that incorporates real-time data management. This approach leaves gaps in real-time data streaming, which is essential for both data processing and temporary persistence. By integrating data streaming, organizations can achieve real-time data democratization for both analytics and operational use cases.
The post-COVID technological acceleration—particularly in AI and automation—demonstrated that traditional data integration alone is insufficient for agile business innovation. A significant challenge lies in the communication gap among various organizational roles, including Business Process Owners, Functional Consultants, Developers, Data Engineers, Data Analysts, and Data Scientists. Without a shared understanding of data and data logic, aligning on a single use case often takes months of meetings and iterations.
To complement data integration, organizations turned to Data Governance, which encouraged a paradigm shift—thinking of business processes in terms of Data Assets, structured as Data Entities and Logical Data Assets. This approach established a ubiquitous language for each business process domain, fostering better collaboration.
To evolve and enhance collaboration, Data Governance required an operational framework, leading to the emergence of Data Operations (DataOps).
Together, Technical Data Architecture, Data Governance, and DataOps form the foundation of an Enterprise Data Strategy. In the digital economy, an Enterprise Data Strategy’s primary goal is to accelerate business objectives and drive value.
Organizations quickly recognized the need for a dedicated role to manage the Enterprise Data Strategy and lead the transition from process-centric to data-centric operations. This led to the rise of the Chief Data Officer (CDO/CDAO).
Demonstrating business value through a data-centric approach.
Providing a clear roadmap for transitioning from process-driven to data-driven operations.
The Digital Economy demands hyperconnected Data Assets to drive innovation and agility.
Data Core Architecture is more than just a data processing framework—it is a comprehensive approach that enables organizations to become truly data-driven.
Atomic Data Assets – The foundational data model structured by business domain, following a Domain-Driven Design (DDD) approach. Each entity is uniquely identifiable.
- Example: Customers, Products, Orders, etc.
Logical Data Assets – The business logic layer, responsible for calculations and system interactions (e.g., interfaces, reports, or analytics).
- Example: SAP-to-Salesforce Customer Integration, Available-to-Sell Inventory, Customer 360 View.
Data Core structures data into incrementally optimized layers for usability.
The foundation of Data Core Architecture is its ability to ingest event messages from all data sources—including operational and analytical systems across on-premises, cloud, and edge environments.
While Data Core may include additional components for enhanced data management (such as ontology), five fundamental components ensure a Centralized Source of Truth:
Event-Driven Messaging – Enables real-time communication between systems.
Publish and Subscribe Persistence – Facilitates system decoupling for seamless data flow.
Stream Processing – Transforms raw data into real-time Logical Data Assets.
Data Governance – Ensures data and metadata discoverability and manages Data Assets.
Data Lineage – Provides traceability and quality assurance for reliable data.
• Subdomains:
• Product Catalog Management• Order Management• Inventory Management• Payment Processing• Customer Relationship Management
Entities
Entity is a core concept in Data Core Architecture. An Entity represents objects within the domain (Business Process) that have a unique identity that persists over time, regardless of changes to their attributes.
Identity: The most important feature of an entity is its identity, which distinguishes it from other entities. Even if two entities have the same attributes, they are considered distinct because they have different identities.
Lifecycle: Entities typically have a lifecycle; they are created, modified, and eventually archived or deleted. The business rules dictate how entities evolve over time.
Examples: Common examples of entities include a Customer, Order, or Product. These objects are distinct in the system, even if their details change, such as a customer’s address or a product’s price.
1. How do we transition from a Process-Centric to a Data-Centric approach?2. Which entities should we model first?
3. Which roles and profiles should be involved in the project?
1. Emerging Design: Based on Agile development, this principle ensures that data entities and logical data assets evolve organically as teams iterate and refine their understanding of the domain.2. Refining Models Through Iteration: As teams progress, they may uncover hidden complexities or opportunities for simplification, leading to continuous refinement of the domain model.3. Agile Governance: A feedback-driven approach ensures that both data entities and logical data assets evolve with the business, keeping teams aligned with organizational goals.4. Retrospectives for Domain Learning: Teams should regularly review and reassess the domain model to ensure it accurately reflects current business realities, resolve misunderstandings, and iterate on the design as needed.