Implementing Canonical Data Models for External & Internal Integrations: A Technical Review

Abstract

In modern enterprise landscapes, integrating varied internal systems has never been more complicated with heterogeneous formats of data, inconsistent semantics, and an ever-growing number of point-to-point connections with both internal and external business partners. Canonical Data Models (CDM) can act as transformational solutions that provide consistent, technology-agnostic representations of key business entities across the organizational boundary. Canonical Data Models (CDM) provide consistent, technology-agnostic representations of key business entities crossing the organizational boundary. By using a systematically defined canonical data model to reference (i.e., yuan) non-canonical data model data elements, organizations can reduce their integration development relating to point-to-point integration dramatically, evolving traditional integration paradigms through centralized scaling, and changing the economics of enterprise data. Successful CDM implementations provide measurable benefits, like reduced integration development time by significantly reducing the design and creation of non-canonical data model mapped integration artifacts, improved data quality through the use of consistent data validation frameworks, and faster time to onboard partners. Also, these strategic engagements often extend beyond just immediate cost savings in integration development effort and support for long-term, defined competitive advantage through accelerated scalability, better regulatory compliance, and letting developers of advanced analytics do their work. Additionally, the benefit of operational and digital transformations through CDM implementation becomes irrelevant without appropriate consultation and alignment across the organization, notably with current business operations, including both stakeholders and technical teams across the organization, establishing appropriate governance frameworks, and embracing such an iterative approach to development that serves both technical and agility. By leveraging CDM, organizations can support continuous digital transformation while also implementing operational excellence in an overly complicated technological world.