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December 14, 2006

Business Model versus Business Value

Earlier this week, I had the opportunity to address the DAMA San Francisco user group and discuss various ideas around the Web 2.0 and applying business models to enterprise metadata. One idea that occurred to me was that there is a big difference between delivering business value and establishing a business model. You can create business value by satisfying a need or fulfilling a demand. Some consideration for ROI but generally very little time is focused here. On the other hand, a business model looks at the long term profit and loss and makes decisions based on the viability of sustainable value. This is an important distinction between value vs. model. Many data warehouse environments implement metadata because thats what we always have done or thats what the business placed in the requirements. But, what was stated about the long term growth in data assets and the growth in usage of this metadata which would drive a business model? Would you open up a drink stand just because one person wanted a Diet Coke or would you try to understand the complete picture of supply and demand?

Posted by Todd at December 14, 2006 12:33 PM