|By Robert Eve||
|January 3, 2012 06:30 AM EST||
Data Virtualization: Going Beyond Traditional Data Integration to Achieve Business Agility is the first book published on the topic of data virtualization. Along with an overview of data virtualization and its advantages, it presents ten case studies of organizations that have adopted data virtualization to significantly improve business decision making, decrease time-to-solution and reduce costs. This article describes data virtualization adoption at one of the enterprises profiled, Northern Trust.
Northern Trust is a leading provider of innovative fiduciary, investment management, private banking, wealth management and worldwide trust and custody services. Clients include corporations, institutions, families and individuals in more than 40 countries.
Based in Chicago, Illinois, the company has over 13,000 employees. At the end of 2010, the company had assets under custody of $4.1 trillion, assets under management of $643.6 billion and banking assets of $83.8 billion. Annual revenues in 2010 were almost $3.7 billion.
For this case study, we interviewed Leonard J. Hardy, Senior Vice President, Operations and Technology. Hardy is a member of Northern Trust's Rapid Solutions group, which provides a solution architecture and consulting facility to other Northern Trust application development groups.
Hardy also manages the company's Integration Competency Center (ICC), which helps other application areas figure out the best way to integrate data. The ICC supports several tools for this, including data virtualization, ETL and data integration best practices. Hardy participated in this case study project in his ICC role.
The Business Problem
An important line of business for Northern Trust is providing outsourced investment management operations for corporate customers, typically investment management firms and banks.
These institutional customers continue to provide front-office investment management functions for their end clients, but outsource all or some of the middle-office and back-office functions to Northern Trust. By contracting these functions out to Northern Trust, the institution does not have to invest in the resources, assets and skills necessary to provide the functions internally. In return, Northern Trust provides guaranteed levels of quality, service, resilience and value-to-cost criteria and management.
The Northern Trust line of business responsible for investment management outsourcing is called Investment Operations Outsourcing (IOO).
The business problem for IOO was the fact that it had a large number of new institutional customers in the outsourcing pipeline and simply could not implement them fast enough.
As Hardy stated, "If we could get customers on board more quickly, we would realize several key benefits. First, revenue would increase. Second, we could go down the pipeline faster. We had customers already signed up for outsourcing who were waiting to be converted and we had to find a way to do that faster. That, in turn, would allow us to open up the pipeline and take advantage of huge new business opportunities in the marketplace."
The Technical Problem
Existing IOO client reporting capabilities had evolved within a traditional systems infrastructure and were both inefficient and inflexible, thereby extending the time it took to set up the end client reporting function for each customer.
For example, value-added client data was stored in multiple separate databases, including legacy, mainframe systems. In addition, some of the business logic to interpret the data structures and create reports was embedded in stored procedure code. The only way to access the data and interpret it correctly was to go through the stored procedures. There was no data warehouse or data mart that consolidated all this data and business logic for reporting purposes.
As a result, according to Hardy, "the old way of reporting required technology intervention for every single customer implementation. As you can imagine, each institution has its own formats, labels, graphics and fonts. A technology expert proficient in our development tools had to get involved and make changes to our reporting process for every customer. The time-to-market on that was very long. We needed the ability to bring on new customers without having to make technology changes for each one."
Two Options Evaluated
IOO considered two solution architectures to meet their business and technical challenges.
Physical Consolidation: One solution for IOO was to physically integrate the data using ETL and data warehousing technology. But that would require pulling all of the business logic out of the stored procedures and figuring out how to get all of the data into one database and have the structure make sense, a massive project that could take up to a year and a half.
Data Virtualization: Instead, IOO took a more innovative approach and decided to virtually integrate the data using the Composite Data Virtualization Platform as a virtual data warehouse. Placing Composite in the middle between the client reporting tool and the back-end data sources would enable IOO to quickly abstract the data into the data virtualization layer, reuse the existing business logic to access the data and generate all of the data needed for end client reporting. This approach required just seven months.
The Data Virtualization Solution - Architecture
Northern Trust's IOO data virtualization solution is a virtual data warehouse implemented with the Composite Data Virtualization Platform combined with a new client reporting front end. The major architecture components include:
Data sources - There are several physical data stores in the IOO environment.
- Transaction data includes all of the detailed transactions for each end-client account: buys, sells, interest income, dividends, etc.
- Valuation data includes, for each end-client account, how much it is worth today, how much it was worth yesterday, etc., based on the transaction data.
- Enterprise asset data is a reference file that contains data about each asset in the client accounts, such as ticker symbol and investment category (equity, bond, money market, etc.). This data comes from a number of different third-party providers.
- Performance data includes very complicated investment performance calculations that permit performance comparisons between accounts, such as one account against accounts of similar value or with similar investment strategies.
- Transaction, valuation and enterprise asset data is stored in IBM DB2 and accessed via COBOL stored procedures.
- Performance data is in Oracle and accessed via web services that call C code.
Data virtualization layer: The virtual data warehouse built using the Composite Data Virtualization Platform abstracts the data in the IOO data stores and creates a unified, virtual view that makes them appear as a single physical data store.
When the reporting platform issues a query to retrieve data from one or more data stores, Composite queries the data by calling the appropriate stored procedures and/or web services, combines the data (for example, associates all of the transactions that make up a valuation and the important performance data that applies to that valuation) and delivers it to the reporting platform.
Consuming applications: The primary consuming application is the client reporting platform. This is the toolset that IOO's internal business/operations partners now use to build, format and produce the reports for IOO's customers and their clients.
Another benefit of the reporting tool is that it supports a data dictionary and business views of the data that directly map to views within the data virtualization layer. These business views, or building blocks, conform the data into reusable components that the business analysts can use to create custom reports.
A key point here is that the solution has enabled IOO to transfer the time-consuming report customization work that previously had to be done for each new institutional customer by very high-priced and very busy technical resources (applications programmers) to IOO's operations partners (business analysts).
As Hardy summarized it, "We have been successful in our goal of taking the technology out of the outsourcing equation. As long as we supply the right data through Composite, the reporting tool handles all formatting, graphing and other functionality that we used to have to hard code within the application program. One reason we had such a big bottleneck in implementing outsourcing customers was the fact that we didn't have enough programmers in our application development group to handle the customization requirements. Business analysts in our operations group can now easily process the building blocks necessary to customize reports."
By combining the capabilities of data virtualization and the new reporting tool, IOO has been able to navigate through and abstract a very complex set of layers of translation to connect the raw IOO data structures to business metadata and finished customer reports.
The Data Virtualization Solution - Best Practices
Hardy offered some best practices and lessons learn based on his experience working with IOO.
Start with a focused project: Hardy stated that a focused initial effort is a key to success. "Don't start with a project to make all enterprise data available via a service." To date, IOO has completed four institutional customer implementations with over ten more in progress or planned.
Centralize support for data virtualization and development: Giving ICC responsibility for the data virtualization technology provided economies of scale and enabled the company to accelerate up the best practices learning curve in effectively implementing the technology in business solutions.
Understand the data: According to Hardy, data virtualization is no different than any other development or physical data integration tool. "The design and architecture of the solution is where you need to spend time. The old carpenter's adage of ‘measure twice and cut once' applies here. Don't just dive in and start coding views. Make sure you really understand the data. This is the key to success in an effort like this."
Educate and support the business: Hardy said it is also important to allocate time to consult with the business and make sure they understand the data. "In our case, they are the ones designing the reports but they don't necessarily have in-depth knowledge about the data in its raw form. So we need to help them understand the raw data and make sure that when the data gets to the end tool, people understand what they are looking at."
Manage business expectations: Although data virtualization is a capability that can get the job done faster, the organization still has to go through the same steps to implement the solution: analysis, design and architecture. "In our case, we could say it saved us a year and a half, but it did take seven months. So it will take time no matter how you do it."
Summary of Benefits
Hardy described the major benefits Northern Trust has achieved with the new IOO client reporting architecture based on data virtualization.
Faster time-to-market increases customer satisfaction and revenue: Data virtualization has dramatically reduced the time it takes to implement a new outsourcing customer by 50%. Moving customers through the pipeline faster improves overall customer satisfaction and gives IOO the capacity to bring in even more business and revenue.
Single point of access simplifies work and cut costs: The fact that the reporting tool, or any consuming application, has a single data access point regardless of the format, access method (SQL, web service, stored procedure, etc.) or data source significantly reduces application complexity and development and maintenance time and cost.
Reuse benefits grow with adoption: The ability to create reusable data services that can be shared by all applications also reduces costs.
Long run flexibility is improved: Northern Trust is embarking on a three-year project to replace all of its underlying data stores with modern data warehouses and data marts. By putting data virtualization in the middle, thereby decoupling the back-end data from the consuming applications, IOO will not have to change anything that has been defined in the reporting tool when it swaps out the back-end data stores. It will only need to change the views to consume the new data sources.
• • •
Editor's Note: Robert Eve is the co-author, along with Judith R. Davis, of Data Virtualization: Going Beyond Traditional Data Integration to Achieve Business Agility, the first book published on the topic of data virtualization. The complete Northern case study, along with nine others enterprise are available in the book.
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Oct. 21, 2016 02:00 PM EDT Reads: 6,770
SYS-CON Events announced today that Embotics, the cloud automation company, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Embotics is the cloud automation company for IT organizations and service providers that need to improve provisioning or enable self-service capabilities. With a relentless focus on delivering a premier user experience and unmatched customer support, Embotics is the fas...
Oct. 21, 2016 02:00 PM EDT Reads: 610
SYS-CON Events announced today that Coalfire will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Coalfire is the trusted leader in cybersecurity risk management and compliance services. Coalfire integrates advisory and technical assessments and recommendations to the corporate directors, executives, boards, and IT organizations for global brands and organizations in the technology, cloud, health...
Oct. 21, 2016 01:45 PM EDT Reads: 1,448
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
Oct. 21, 2016 01:00 PM EDT Reads: 900
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
Oct. 21, 2016 01:00 PM EDT Reads: 916
SYS-CON Events announced today that MathFreeOn will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
Oct. 21, 2016 12:15 PM EDT Reads: 862
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
Oct. 21, 2016 12:00 PM EDT Reads: 8,049
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Oct. 21, 2016 10:50 AM EDT Reads: 220
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Oct. 21, 2016 10:45 AM EDT Reads: 1,640
SYS-CON Events announced today that Transparent Cloud Computing (T-Cloud) Consortium will exhibit at the 19th International Cloud Expo®, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The Transparent Cloud Computing Consortium (T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data proces...
Oct. 21, 2016 10:30 AM EDT Reads: 1,228
Donna Yasay, President of HomeGrid Forum, today discussed with a panel of technology peers how certification programs are at the forefront of interoperability, and the answer for vendors looking to keep up with today's growing industry for smart home innovation. "To ensure multi-vendor interoperability, accredited industry certification programs should be used for every product to provide credibility and quality assurance for retail and carrier based customers looking to add ever increasing num...
Oct. 21, 2016 09:15 AM EDT Reads: 272
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Oct. 21, 2016 08:45 AM EDT Reads: 11,124
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
Oct. 21, 2016 08:45 AM EDT Reads: 1,371
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to impr...
Oct. 21, 2016 08:00 AM EDT Reads: 5,583
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Oct. 21, 2016 07:45 AM EDT Reads: 3,735
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Oct. 21, 2016 07:15 AM EDT Reads: 1,284
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service.
Oct. 21, 2016 07:15 AM EDT Reads: 883
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Oct. 21, 2016 06:45 AM EDT Reads: 1,796
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Oct. 21, 2016 06:15 AM EDT Reads: 4,656
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
Oct. 21, 2016 05:45 AM EDT Reads: 5,053