Applied Observability – Unlocking the Power of Data for Modern Businesses

In today’s fast-paced business environment, data is a crucial asset for making informed decisions that drive success. Businesses collect vast amounts of data to improve performance, streamline processes, and predict future trends.

Popular types of data analytics include:

• Descriptive: Analyzing historical data to track KPIs and discover relationships between different metrics.
• Diagnostic: Using data to uncover insights that enhance business processes.
• Predictive: Tracking information to forecast future trends.
• Prescriptive: Applying data insights to recommend specific actions for improved outcomes.

While many organizations understand the importance of collecting and analyzing data, few are able to leverage it effectively. This is where applied observability comes in—helping businesses harness data more efficiently and break down common barriers to success.

Understanding applied observability‍

When asking "what is observability?" it’s important to understand its core concept.

• Observability refers to the ability to monitor and understand the state of a system based on the data it generates.

Applied observability takes this concept further, ensuring that data is readily available across departments, applications, and infrastructure to drive real-time decision-making.

According to Gartner, applied observability involves making observable data accessible and actionable within an organization. This means embedding observability into business operations, enabling more people to access and analyze data without compromising security or regulatory requirements.

By adopting applied observability, businesses can maximize the value of their data while ensuring that sensitive information is handled responsibly.

The need for applied observability to stay competitive

Applied observability is no longer just a “nice to have” tool—it’s quickly becoming essential for maintaining a competitive edge. Gartner predicts that by 2026, 70% of organizations that successfully implement applied observability will see faster decision-making due to improved data accessibility.

Organizations that fail to embrace this technology risk falling behind their competitors. Those who adopt observability tools can respond more quickly to market changes, anticipate future trends, and pivot accordingly.

Observability is already playing a crucial role in IT operations. Tools that monitor system performance help businesses optimize workflows, troubleshoot issues, and prevent downtime. Applied observability expands these benefits to the entire organization, making data more transparent and actionable across all departments.

Building applied observability into your organization

While many resources focus on integrating observability into specific environments—like Google’s Cloud Architecture Framework—not every business relies solely on Google Cloud. Here’s a more generalized approach to implementing applied observability, ensuring any organization can benefit regardless of its current IT infrastructure.

1. Map your data layers

Most businesses don’t fully understand the breadth of data they collect. To apply observability, start by mapping out all the types of data your organization gathers. You’ll likely find that data flows through multiple concurrent layers. For example, an e-commerce platform might:

• Collect customer purchase data,
• Transfer it to a CRM,
• Store it in a database,
• And analyze it using business intelligence (BI) tools to predict customer behaviors.

Simultaneously, other departments, such as system admins, might have network performance data that doesn’t interact with other business units. Creating a detailed data map will help you identify key information sources and prepare for the challenges ahead.

2. Democratize data to foster collaboration

Many organizations struggle with data silos, where certain teams or departments hoard data that others can’t access. Data democratization breaks down these silos, allowing authorized users across the business to access shared information. This improves collaboration and helps businesses make more informed decisions.

To enable data democratization, consider using a data lake—a flexible repository that can store structured, semi-structured, and unstructured data. This allows you to centralize everything from sales figures to social media interactions in one accessible location.

3. Prioritize security in applied observability

While democratizing data can unlock new potential within your business, it’s crucial to protect sensitive information. Applied observability must be implemented with robust security measures to prevent data breaches and ensure compliance with regulations.

Some key security practices include:

• Data anonymization: Protecting the identity of data sources.
• User tracking: Monitoring who accesses the data.
• Access control: Restricting access based on roles and relevance to specific tasks.
• Policy creation and updates: Defining and regularly revising data access policies.

4. Gradual implementation of applied observability

Transitioning to applied observability requires a thoughtful, incremental approach. Rushing the process can lead to mistakes and hinder successful implementation. Instead, focus on small, manageable steps.

For example, start by democratizing data within a single department. Use this as a testing ground to identify challenges and solutions before scaling observability across the entire organization. Similarly, prioritize different types of data. One month, you might focus on making application data observable, and the next, work on network data observability.

While it’s important to have a clear plan for adopting applied observability, remain flexible. Some steps may take longer than expected. Adapt your strategy as needed and continue moving forward.

Applied observability and the future of business success

Applied observability is not only about improving your business’s immediate data strategy. It’s about preparing for the future by making data more accessible, actionable, and insightful. As businesses increasingly turn to real-time data to inform their decision-making, applied observability will be a key differentiator in staying competitive.

In conclusion

If you’re unsure how to apply observability effectively in your organization, we can help. Our team understands the complexities of data collection, sharing, and analysis. Reach out today to learn more about how applied observability can transform your business operations and drive long-term success.