Visual Data Models Empower Legacy Organizations in a Data-driven World

--- Tal Yifat, Ph.D.

EXECUTIVE SUMMARY
Legacy organizations forego most of the potential value from data and analytics because they struggle
to integrate data-driven insights into day-to-day business processes. Visual data modeling, a
technology pioneered by Transdata Solutions, helps solve this challenge by empowering subject
matter experts to easily and effectively perform data analytic tasks and integrate them into routine
work. Visual data models can connect to multiple data sources, and they are intuitive, reusable, and
easy to communicate. By empowering subject matter experts to make the most of their data, visual
models allow organizations to overcome crucial barriers and thrive in a data-driven world.

Introduction
It is well recognized that the rise of data and analytics is altering the terms of competition in virtually
every sector. New data sources and technologies become available, giving rise to a host of challenges
and opportunities. Yet most companies are capturing only a fraction of the potential value from data
and analytics.
“By empowering subject
Most notably, value is left on the table in sectors dominated by
matter experts to make the
legacy organizations. A 2016 report by the McKinsey Global
most of their data, visual Institute estimated that only 10-30% of the potential value
data models help legacy has been captured in such sectors, including health care,
organizations thrive in a government and manufacturing1. Such industries rely on
data-driven world.” established organizations with a wealth of infrastructure and
domain expertise, but typically without the competencies
required for competition in a data-driven environment.
McKinsey’s report observes that while “digital native companies were built for analytics, legacy
companies have to do the hard work of overhauling or changing existing systems”2. This white paper
elaborates on this challenge and introduces visual data modeling, a technology pioneered by Transdata
Solutions, which facilitates established organizations’ adaptation to the age of analytics. By
empowering subject matter experts to make the most of their data, visual data models help legacy
organizations thrive in a data-driven world.

1
Henke, Nicolaus, et al. "The age of analytics: Competing in a data-driven world." McKinsey Global Institute (2016).
2
Henke et al. (2016:4).
THE CHALLENGE: INTEGRATING DATA-DRIVEN INSIGHT INTO BUSINESS PROCESSES
“The biggest barriers companies face in extracting value from data and analytics,” according to
McKinsey, are not technical, but organizational3. Such barriers are especially salient in legacy
organizations, which carry over organizational patterns formed before the big data era.

“The lack of coordination Companies tend to focus on the challenge of attracting and
retaining data analytical talent, but the bigger hurdle is often the
…creates frustration and
difficulty of integrating data-driven insights into day-to-day
fragmentation between business processes.
organizational silos.”
Established organizations face a gap between their analytical
talent and the professionals and managers on the ground, those who have crucial domain expertise
and organizational knowledge. Such knowledge is essential for asking the data science team the right
questions and for deriving the proper and actionable insights from their findings.
The outcome of this gap is limited adoption of data-driven techniques, and loss of productivity and
competitiveness. Organizational data goes unused and opportunities are missed for guiding decisions
by data. The lack of coordination between business units and the analytical team creates frustration
and fragmentation between organizational silos.

THE SOLUTION: EMPOWERING DOMAIN EXPERTS WITH VISUAL DATA MODELS

One promising solution is to democratize data analytics capabilities by providing subject matter
experts with effective, easy-to-use analytical tools. Such experts possess valuable knowledge that is
sometimes accumulated over decades of experience. Instead of having domain experts depend on a
central data science team, this approach empowers them and adopts their capabilities to a data-
driven environment.

3
Henke et al. (2016:iv).

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THE LIMITATIONS OF DOMAIN EXPERTS WITH CURRENT ANALYTICAL TECHNOLOGIES
Currently, domain experts in most companies analyze data using spreadsheets, or occasionally by
means of relational databases or dedicated business intelligence platforms. While such technologies
may be effective for some tasks, they impose major constraints on domain experts:
Opacity: When dealing with complex data processing tasks, logic in spreadsheets and related
technologies is hard to follow and communicate to stakeholders. This limits the usefulness of
data analyses and impedes their dissemination within the organization.
Reusability: In spreadsheets, logic is diffuse and intertwined with the data. Therefore,
spreadsheets need to be continuously redefined for new datasets.
Volume: Spreadsheets are limited in the volume of data they can process.
Segregation: Current technologies are lacking in their ability to connect to and integrate
disparate data sources.

THE ALTERNATIVE: VISUAL DATA MODELS

Visual data modeling technology was developed by Transdata Solutions, Inc. to help domain experts
overcome the current limitations of data technologies, without requiring programming skills or a Data
Science background.
Visual data models allow users to easily and intuitively define reusable data processing tasks. The
visual interface empowers organizational stakeholders to easily understand the logic flow of data
processing and make data-driven analyses transparent and communicable across the organization.
The following table compares visual data models with spreadsheets:
Spreadsheets Visual Data Models
Transparency Logic of data analysis is scattered throughout the Logic is presented visually and can be
spreadsheet and difficult to understand and easily traced by stakeholders.
communicate.
Accessibility Pivot tables and nested formulas are complicated and Data analysis with straightforward,
error prone. step-by-step tools.
Reusability Logic is intertwined with the data and is hard to Logic is distinct from the data and may
separate and reuse. be applied to a different dataset.
Data Volume Common spreadsheets are limited to one million data Capable of efficiently processing
records and perform poorly with high data volumes. virtually unlimited data records.
Data Limited capacity for integration with multiple data Can import and integrate data from
Integration sources. multiple, disparate data sources.

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CONCLUSION: THE ORGANIZATIONAL BENEFITS OF VISUAL DATA MODELS
Transdata Solutions’ patent-pending visual data modeling technology allows legacy organizations to
easily adapt their competencies and thrive in a data-driven world. The technology empowers domain
experts and allows them to easily and effectively perform data analytic tasks.
By building data analytics capabilities within their existing pool of domain experts, organizations can
overcome crucial barriers and maximize the value they capture from data and analytics:
Enhanced organizational throughput and efficiency: Domain experts become more productive
as they integrate data-driven insight in their day-to-day work and are released from
dependence on time-consuming interactions with central data science teams.
Reduced labor costs: Empowering users within the company eliminates the need to acquire
scarce and expensive data science talent and initiate this new talent into the company’s
domain.
Integration of analytics in business processes: Domain experts have functional know-how and
familiarity with the company and its data. These, when combined with visual data modeling
skills, allow them to integrate data-driven insights into the organization’s ongoing processes.
Greater strategic focus: When data science teams become free from the need to support
everyday activities of domain experts, they can focus their efforts on more complex and
profound strategic challenges.
Improved coordination: By easily communicating analytical logic, visual data models increase
transparency and improve coordination and collaboration between organizational units.

To learn more about how Visual Data Modeling technology can transform your data and analytics
operations, please call us at 877.484.7890, or visit us online at www.transdatasolutions.com.

Dr. Tal Yifat earned his Ph.D. from the University

of Chicago, where he researched innovation
processes that lead to the alignment of
commercial success with social and
environmental value creation. He is the Director
of Data Science at Transdata Solutions, Inc.

www.transdatasolutions.com
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