The Rise of Data and Information Observability: Moving Beyond Traditional Methods

In today's data-driven business landscape, organisations face a critical paradox: they're drowning in data yet starving for actionable insights. Traditional governance approaches have proven inadequate, particularly in heavily regulated sectors where compliance requirements continue to intensify. The BCBS239 case exemplifies this challenge—after a decade of implementation efforts, only 2 of 31 global banks have achieved full compliance with these essential risk data aggregation standards.

Redefining Observability for Organisational Data Assets

The transformative potential of Data and Information Observability (D/I O11y) begins with understanding its foundational concepts. While traditional observability—defined as "a measure of how well internal states of a system can be inferred from knowledge of its external outputs"—has revolutionised software engineering practices, this definition falls short when applied to organisational data assets.

At BearingNode, we've pioneered a comprehensive framework that extends observability principles specifically to data and information management:

"The body of knowledge and practices for monitoring the health, performance, and organisational impact of Data and Information assets, as well as the capabilities to steward those assets."

This definition represents a fundamental paradigm shift—moving organisations from static, policy-based governance approaches toward dynamic, observable systems that provide real-time insights throughout the data lifecycle.

Why Traditional Governance Models Fail

Traditional governance approaches have consistently underperformed due to three critical limitations:

1. Siloed Operating Models: Governance typically functions in isolation from technology, process, and people components, failing to address the interconnected nature of data ecosystems.

2. Measurement & Visibility Gaps: The prevalent "policy and hope" methodology lacks real-time telemetry to verify effectiveness, leaving organisations unable to observe whether their governance policies translate to operational improvements.

3. Overlooked Adjacent Capabilities: Conventional frameworks neglect crucial capabilities such as DataOps, infrastructure observability, and data quality management—all essential for effective governance.

   
   

The D/I O11y Advantage

Our framework addresses these limitations through three core principles:

1. Integrated Operating Model: Providing a unified view across technology, process, people, and data dimensions.

2. Observable Governance: Delivering comprehensive metrics that demonstrate governance effectiveness rather than merely documenting policies.

3. Connected Capabilities: Uniting governance with adjacent functions through a comprehensive observability approach.

Practical Implementation Framework

When effectively implemented, D/I O11y transforms data asset management from a compliance exercise into an active, measurable component of organisational strategy.

Our framework encompasses five core capabilities:

1. Value: Connecting data assets to organisational outcomes

2. Discover: Identifying and classifying data across the enterprise

3. Track: Monitoring data movement and transformations

4. Comply: Ensuring adherence to regulations and internal policies

5. Govern: Establishing oversight mechanisms that foster a data-centric culture

These capabilities are supported by foundational elements including analysis, storage, alerting, collection, and connectivity functions, while integrating with adjacent domains such as service management, risk management, compliance, and finance.

The Strategic Path Forward

As data volumes expand and regulatory requirements multiply, organisations can no longer afford the shortcomings of traditional governance methods. Data and Information Observability provides a framework for not just managing data assets, but maximising their strategic value while ensuring compliance.

By adopting D/I O11y principles, organisations can transcend the "policy and hope" approach to achieve measurable, sustainable governance that enhances business value. The framework's comprehensive metrics enable CDOs and stakeholders to demonstrate tangible business impact, while detailed tooling requirements facilitate vendor evaluation and implementation.

Organisations ready to revolutionise their data governance approach should explore how BearingNode's D/I O11y framework can accelerate their journey toward data-driven excellence.

What to learn more?

Download our whitepaper here: https://www.bearingnode.com/whitepaper-exec-dio11y