Businesses are relying more and more on data to power their operations. An MDP — or modern data platform — can manage and store all of that data securely. An MDP is a platform that meets the needs of modern data management by providing data lifecycle management (DLM), data access governance (DAG), metadata management (MM) and intelligence capabilities. 

Understanding the main components of a modern data platform architecture can better equip businesses to make informed decisions. By learning about data privacy and access governance, you can protect your data and maintain control over who has access to it. And by understanding the challenges of developing a modern data platform, you'll be in a better position to overcome them. In this article, we’ll look at what a modern platform is, why your company needs one, and what to consider when getting started.

Modern data architecture: What is a modern data platform?

To understand modern data architecture and its key components, we must first understand what a data platform is in the first place. A data platform is a suite of software that helps organizations process and manage data. It includes an integrated database, real-time data analytics tools and a range of other applications needed to power modern businesses. 

A modern data platform is a suite of software that helps organizations process and manage large volumes of data quickly and efficiently. The critical elements of a modern data stack are scale, performance, security, availability, governance and completeness.

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Philosophies

Three data platform philosophies in use today are:

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• NoSQL: A platform-agnostic approach that focuses on using non-relational databases.
• Objectives Driven Architecture (ODA): Uses object-oriented design principles to build data applications.
• Graph databases: Stores and manages large graphs of data.

Each of these philosophies offers various advantages and disadvantages, so choosing one that will work best for business users’ needs is critical.

Modern data architecture

The modern data platform is a highly-advanced and efficient tool that can help organizations manage their data more efficiently. Built on the principle of agility, scale and innovation, it has a modular modern data architecture that makes it easy to expand. It also offers a range of features that simplify data management and make it highly productive. 

Reverse ETL methodology

Data platforms have become more complex and data volumes are growing exponentially. Consequently, modern data platforms must be able to process large amounts of data quickly and accurately. The reverse Extract, Transform, Load (ETL) methodology is a great way to modernize data platforms and improve their performance. 

Reverse ETL is a process of extracting data from source systems in reverse order, starting with the data warehouse and working backwards to all data sources. It enables data architects and engineers to identify ‌data issues early on, preventing them from becoming larger problems. 

By reversing the conventional ETL process, businesses can reduce processing times by up to 50 percent. This approach is essential for today’s complex data environments. 

Why should businesses use a modern data platform?

A modern data platform can help solve many of the problems businesses face today — from growing data needs to increased security risks — by providing a platform that can help scale applications and data across multiple devices. 

Not only does using a modern data platform make management and real-time data analytics easier, it also allows for scalability and improved security. What’s more, it can significantly reduce platform costs.

Key components of a modern data platform

Organizations today need a platform that can help them store, index and search through large volumes of data quickly and easily.

A modern data platform meets these requirements. It can store data in various formats, store data in a database for easy retrieval and provide a variety of business intelligence (BI) and reporting tools. Also, a modern data platform has governance layers that ensure data is protected and used responsibly. 

Data ingestion

Modern data platforms make data ingestion a breeze. Collecting data from various sources, such as customer surveys, social media posts, and analytics reports, and then cataloging it all in a systematic way usually initiates this process. 

Data ingestion using modern data architecture allows businesses to understand their current situation and make informed business decisions faster than ever. Data platforms also make it easy to manage and analyze big data sets. 

Batch processing vs. stream processing

Batch processing is a method of data ingestion where data is processed in a group or batch. It’s the traditional way of handling data and works well for specific applications. On the other hand, stream processing allows for real-time analysis of large volumes of data. It’s a more advanced approach and is better suited for businesses that need to process data quickly and efficiently.

Data warehouse

A data warehouse is a valuable tool that can help businesses make informed decisions. It contains all the data needed to understand your business performance in one place, making it a powerful source of analysis and insight. A modern platform offers enough flexibility to handle changes in your data rapidly — this is critical for keeping up with a dynamic business environment.

Data lake

A data lake is a platform that helps you store and access different data sources in a centralized location. It can store mission-critical data, ensuring it remains reliable and secure. Using a data lakehouse, you can build a strong foundation for your business analytics and machine learning initiatives.

Data transformation

Data transformation is vital in managing big data. Modern data platforms help organizations handle large volumes of data quickly and efficiently while having a robust architecture that can support real-time analytics. It also provides a single pane of glass for your business analytics needs, from tracking customers’ behavior to monitoring the performance of your servers and applications.

Business intelligence and analytics

Business intelligence and analytics allow you to make smarter decisions, streamline operations and boost productivity. A modern data platform offers various BI and analytics tools to suit your business needs. The main ingredients for viable business intelligence include scalability, elasticity and durability. Modern data platforms help to reduce time spent on data management tasks and improve decision-making processes. 

Data science

Data science deals with the analysis of data to generate insights that can improve business users’ operations. A modern data platform offers several features for data scientists and analysts to work efficiently. It can quickly ingest large amounts of data, support real-time advanced analytics and provide powerful machine-learning capabilities.

Data governance

Data governance makes sure that data quality, accuracy and completeness remain up to par. It involves keeping track of data across various systems to ensure accuracy and reliability. Modern data architecture enables all these processes by providing the necessary tools and configurations. With everything put in place, it becomes easier for business managers to make informed decisions based on advanced analytics.

Data privacy

Data privacy is a major concern for modern business owners — a data breach costs businesses $9.44 million on average. Modern data platforms provide a safe and efficient way to manage and protect your data, while also providing real-time insights to understand how your customers interact with your business. 

What are the benefits of a modern data platform?

Data is a vital component of any business, and a modern data platform can make all the difference. Here’s a look at why modern data platforms are becoming more important.

Provides a “single source of truth”

Ninety-five percent of businesses have been impacted because of poor data quality. Modern data platforms provide a single source of truth (SSOT) for data across all applications, making it easier to make decisions and understand the data. ‌It ensures accuracy, security and visibility — three vital qualities for any data management system. 

Enhances your data confidence

Data management and security are crucial concerns for all kinds of businesses. A modern data platform can help alleviate these worries by providing enhanced data management, security, scalability and faster analysis times. Additionally, they help provide accurate and up-to-date reports across all business areas. Greater data confidence improves businesses’ decision-making based on reliable insights into past performance and prospects.

Cost-effective

Modern data platforms are cost-effective solutions that make managing data easy and efficient. They provide a centralized platform for managing all your business data needs, from sales records to customer profiles and more.

Highly scalable

Modern data platforms offer maximum scalability, which is crucial for businesses that want to expand rapidly. Using a platform that facilitates efficient data management and secure storage makes it easy to track business processes in real-time.

Compliant and secure

A data platform that complies with regulations, such as General Data Protection Regulation (GDPR), is a must-have for modern businesses. It guarantees that your data is ethically handled and secured from cyber threats. In addition to following current business regulations, a data platform can withstand high traffic loads and provide users access to the data they need.

What to consider when building a modern data platform for your business

Depending on your business requirements, you may opt for various modern data platform solutions such as public, private or hybrid clouds. Some components that make up modern data platforms include big data tools, data connectors, storage and analytics. Before deciding, it’s essential to assess your business’ current data needs and requirements.

Important questions to ask when building a modern data platform

Regarding data platform evaluation, some critical questions you should ask include: 

• How many nodes should the platform have?
• Is the platform scalable?
• What is the required performance?
• What are some key features the data platform will offer? 

Once you know the answer to these questions, you can determine which solution best suits your business.

Partnering with an experienced provider

When building modern data platforms, partnering with an experienced data provider is critical to help get the most from your platform. By doing so, companies can streamline their operations and improve their overall performance.

Data privacy and access governance

Data privacy and access are important issues for organizations of all sizes. A modern data platform architecture must include components that provide comprehensive data privacy and access governance. These components include identity management, application security and compliance tracking. 

Metadata management

A modern data platform should include metadata management and lineage tracing. Metadata management helps keep track of all the information about your data, from its source to its use, including everything from data definitions to data governance and data quality management. Data lineage tracing allows organizations to understand where their data has been and how it has been used  — and potentially abused. 

Unleash the full power of your data with Fivetran

A modern data platform is a critical player in any business. Fivetran allows you to collect data from any device, such as smartphones, laptops, desktops, web devices and sensors, and move it into any data platform. You can use Fivetran for marketing research (analytics for actionable insights, customer segmentation), cross-device tracking (customer journey mapping), user feedback and more.

Our analytics tools let you speed up decision-making and see real-time insights into trends and changes in your data set. Additionally, our behavioral analysis tool sets give you a deeper understanding of customer needs, helping you meet those needs more effectively. 

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