Is your business struggling to manage the flood of data available in today’s competitive world? Or, worse, are your legacy applications restricting access to your data? This is a most difficult predicament for most businesses. Data silos, information duplication, and inaccuracies only complicate the matter further. However, a data centric approach can help! By adopting this mindset, your organization can gain agility, establish a Single Source of Truth (SSOT), streamline automation processes, and reignite innovation. In this article, I’ll look at the six benefits of a data-centric approach, how it differs from data-driven and application-centric approaches. Indeed, it’s time to re-think your business’ data strategy!
“Data is a precious thing and will last longer than the systems themselves.”
Tim Berners-Lee
1. Understanding Data Centric Business Technology And Processes.

To understand data-centric business technologies and processes, we first need to review how data is generated and for what purpose.
a. Examples of Software that Generates Data.
In today’s business world, being technologically savvy is a must for most business managers. For example, most supply chain managers are no strangers to data-rich software such as:
- Enterprise Software. For instance, ERP, TMS, and WMS.
- Office Productivity Software. For example, MS Excel.
- Business Intelligence (BI) Dashboards. Also, most managers know the value of data analytics and BI reports. Further, they can use them to guide important decisions.
b. A Data-Driven Approach Does Not Necessarily Deliver Business Value.
However, using software like ERPs, MS Excel, and BI may be data-driven, but that does not necessarily mean you are able to use your data to drive business value. Indeed, a data-driven approach many times overwhelms a business with data rather than helps achieve corporate goals. In contrast, being data-centric is about treating your data as a permanent asset rather than a by-product. Today, many businesses are just generating data as a by-product of enterprise systems or other software processes. Consequently, this data ends up not generating much real value, or worse, it becomes a liability resulting in data overload.
“… a data-driven approach many times overwhelms a business with data rather than helps achieve corporate goals”
Also, a key advantage of adopting a “data-centric” approach in business is the ability to start immediately. As time progresses, this mindset will usher in an automation transformation within your business that centers on data, not on software applications. However, before we explore the transformational benefits of being “data-centric” versus “application-centric,” it is essential to define what being data-centric truly means. By understanding this concept clearly, we can appreciate its merits and differentiate it from other business strategies.
c. What Does It Mean to be Data Centric?
So, let’s start with a definition of data-centric:
“Data centric refers to an architecture where data is the primary and permanent asset, and applications come and go. In the data centric architecture, the data model precedes the implementation of any given application and will be around and valid long after it is gone.”
TDAN, The Data-Centric Revolution: Data-Centric vs. Data-Driven
“… data is a permanent business asset … not … constrained within any particular technology or software application.”
I like this definition because it defines data as a key permanent asset for businesses. Specifically, this definition tells us that technology, software applications, and automation will come and go, but our data will never grow obsolete. Indeed, data is a permanent business asset that businesses do not need to constrain within any particular technology or software application.
In this data-rich world, a data centric mindset is critical to stay competitive. Data is no longer just a product or by-product of software applications. Indeed, it is the most valuable business asset. So, it’s time for businesses to recognize that software and business methodologies come and go, but the data will always be there. For a more detail look at the challenges of dealing with data overload, the pitfalls of being software centric, and the concept of running a data centric business, see my article, Being A Data Centric Business: It’s Going Beyond The Frenzy Of More Big Data And High Tech.
“We are surrounded by data, but starved for insights.”
Jay Baer
2. The Six Benefits Of A Data-Centric Business.
Now, it is hard to change to a data-centric mindset overnight, especially for an organization that previously had an application-centric approach to leveraging information technology. At the same time, if an organization does transition to a data-centric approach for doing business, they can immediately start to reap the benefits. These data-centric benefits include:
- Superior Business Agility: Not Chained To Data Silos Or Legacy Applications
- High Confidence In Data: There Is A Single Source Of Truth (SSOT) Vs Multiple Versions Or Copies
- Improved Decision-Making: Having High-Quality Data that is Complete, Accurate, Timely
- Simplified Software: Lower Costs, Increase Reuse Of Code
- Faster Adoption of New Technologies: Such As AI, IoT, and Other Data-Centric Information Technologies
- Streamlined Data Security, Integration, And Analytics
Indeed, a shift to a data-centric way of thinking will differentiate those businesses that will thrive and those that will be left behind. In my article, Data-Centric Benefits: Businesses Becoming More Innovative By Not Being Mired In Application Centricity, I’ll look at six advantages of businesses adopting a data-centric mindset. This is a business way of thinking that maximizes data insights and enables rapid tech adoption for a competitive advantage.
“Data really powers everything that we do.”
Jeff Weiner
3. What Data Centric Is Not.
To get a better understanding of what “data centric” means, in the following article I’ll provide some examples of what data centric is not. Specifically, this will include how it is different from “data driven” and “application centric”. To detail, see my article, You Need To Think Data Centric To Be A Successful Business: Stop Being Data Driven, Application Centric.

You Need To Think Data Centric To Be A Successful Business: Stop Being Data Driven, Application Centric.
To help you understand in more detail what it means to have a “data-centric” perspective, click here and I will explain. In particular, I’ll look at examples of what “data centric” is not as well as how it varies from being “data-driven” or “application-centric.”
Also, for more details and perspectives on businesses taking a data centric approach, see Kevin Doubleday blog posting Introduction to Data-Centricity.
For more articles from SC Tech Insights, see the latest postings on data.
Greetings! As an independent supply chain tech advisor with 30+ years of hands-on experience, I take great pleasure in providing actionable insights and solutions to logistics leaders. My focus is to drive transformation within the logistics industry by leveraging emerging LogTech, applying data-centric solutions, and increasing interoperability within supply chains. I have a wide range of experience to include successfully leading the development of 100s of innovative software solutions across supply chains and delivering business intelligence (BI) solutions to 1,000s of shippers. Click here for more info.