Issue - May/June 2024
The Unbundling Route: Changes in the Moving Industry Software Landscape
It is estimated that 90% of the world’s data was generated in the last two years. Around 120,000 Exabytes of data will be generated this year alone. 181,000 Exabytes are expected in 2025, a 150% growth, from only 15 Exabytes in 1990.
How much data is that? Think of it this way: one bit (a binary digit) is the smallest unit of binary information, representing the state 0 or 1. One Exabyte equals 1 quintillion bits. That is a 1 followed by 18 zeros. 5 Exabytes would equal all words ever spoken by mankind. And, saying it again so it sinks in, in 2025 we are expected to create 181 THOUSAND Exabytes.
So yes, that is a lot.
We are generating data constantly. If you are also wondering what data is really, it is defined as information (such as measurements or statistics) used as a basis for reasoning, discussion, or calculation (source: Merriam-Webster Dictionary).
Why is it growing so much? Consider that digital storage has become larger, cheaper, and faster with each successive year. Mankind is experiencing an ongoing digital transformation, with internet users growing by 189 million during the last 12 months. Exponential growth is at the heart of the rapid increase in computing capabilities. Also, the Covid period accelerated the amount of data stored and exchanged at the time, with working from home at its peak and people consuming online entertainment daily.
In the light of this exponential growth of data, there is a developing trend worldwide called “Unbundling.” Data unbundling refers to the process of breaking down a larger data set into a smaller, more manageable group of data components. Data can be classified by different criteria, such as geographic locations, time periods or utility, among others. Unbundling is the process by which we can break down data sets into these different classifications in a way that is more friendly to a given system, or for a given need.
Traditionally, with the growth of business software solutions, we saw the emergence and adoption by companies of all-in-one software solutions that bundle a large set of functionalities and therefore many of these data components into one. While these integrated platforms offered convenience, they often lacked flexibility and failed to cater specifically to the diverse needs of users.
This is why there is now a worldwide trend to breakdown data (and therefore systems that support the sub-processes that data handles) into purpose-built state-of-the-art software that does one thing and does it very well.
As an example, think of what happens when managing a move: A moving company has software support throughout the full cycle, from origin to destination, in each sub-process (quoting, orders, surveys, inventory, warehouses, shipment tracking, etc). Imagine there are 50 such sub-processes involved in a move (there are usually plenty more), and let’s assume too that there are 50 unique types of moves we could define each with their own sub process requirements (like a corporate, a private international, a commercial local, etc). And let’s also say there are at least 38,000 unique move requirements based on simply an international origin-destination pairing. Ignoring all other factors, like commodity, state regulations, quality stipulations, and more – this very conservative calculation still results in 95 million alternative scenarios!
Given this context, is it realistic to expect a single software solution to effectively address every need, or could several specialized solutions provide superior outcomes? If you guessed the latter, then you are right, and in good company—this model is what the overwhelming majority support, a fact clearly demonstrated in the global software trends.
Being able to operate features independently may turn out to be a cardinal advantage. Disaggregating software functionalities and allowing users to select and integrate best-of-breed solutions is the paradigm shift we have been witnessing for some time now.
This trend is also seen in end-to-end software systems. Many businesses may still need large complex systems. However, the way these systems are built has changed. Now, there’s a method called domain-driven design. This method makes sure the software matches closely with the business’s needs. It organizes the business into clear sections, each focusing on a specific part of the business. These sections then connect through what is called microservices, where each microservice handles a specific business data relationship, reducing complications and overlapping with others.
So, what does all this mean for you?
By adopting modular software features, and integrating all solutions, companies can still operate in an end-to-end ecosystem, but with much better user experience. This trend results in the empowerment of employees and their autonomy. Your personnel gain the freedom to choose tools that align with their workflow preferences and optimize their productivity.
Still, beyond empowering employees and their daily efficiency, this transformation gives rise to the advantage of data sharing. By enabling data exchange between different applications, companies can harness the power of specialized tools while maintaining interoperability.
This approach drives continuous improvement across the industry allowing collaboration among teams or even organizations, by promoting transparency with information accessible to relevant stakeholders, and by boosting efficiency, rather than duplicating efforts to collect or generate data.
Furthermore, this trend allows businesses to better focus their investments into targeted solutions that address their immediate needs while remaining flexible enough to scale and adapt to evolving requirements over time, eventually integrating all needed services.
Of course, these changes require commitment to data governance and security. As companies work toward interconnected applications, with third party services integrations and APIs, it becomes mandatory to ensure data confidentiality and compliance with regulatory requirements.
In the end the focus should be on what your business really needs, and that is generally driven by what the user needs to perform their job. This trend is showing the way to the ultimate user experience, whether it is for employees, customers, or end users.