Applied Observability – AO
By 2026, 70% of organizations that successfully apply applied observability will make decisions quickly, providing a competitive advantage to the target business or information technology (IT) processes.
1. Business Value
Applied observability (AO) is the exploitation of observable data applied in an integrated approach and the coordination between functional groups, applications, and infrastructure and operations. (I&O) of the enterprise to enable the shortest lag from action to reaction and proactive planning for business decisions.
2. How AO Optimizes Operations
AO allows businesses to make faster, more accurate future decisions. By applying this systematically, we can reduce response latency and optimize business operations in real time.
3. Contribution of AO to Business Strategy
- Create a secure foundation
- Digital acceleration
4. Use Cases
Tesla is an example of an organization that successfully exploited key elements of applied observability. It offers vehicle insurance in several US states to Tesla owners based solely on their actual “observable” driving behavior. Tesla cars "observe" and measure driving behavior using sensors and Autopilot software to evaluate the monthly Safety Score. Tesla says that drivers with an “average” Safety Score can save 20% to 40% on insurance premiums, and those with the highest Safety Scores can save 40% to 60%.
Klaveness Ship Management (Klaveness) is a bulk carrier operating approximately 135 vessels. Klaveness collected operational and engine data. Data is secured, stored, contextualized, and combined with other ecosystem data sources into a visual dashboard for business decisions. The result is reduced fuel consumption and operating costs.
5. Technical Profile and Value
AO is the exploitation of observable data applied in an integrated approach and seamless coordination across business functions, applications, and I&O teams. Observable data will be catalogued, designed, and arranged semantically for business context, resulting from active and passive metadata. This architectural use of metadata will drive better, faster, consistent, and more efficient business and IT decisions.
6. Main Implementation Steps
- See observable data as your most valuable monetization tool. Focus on identifying business capabilities and use cases from active and passive metadata for competitive advantage. This will form the initial foundation for strategically coordinating multiple concurrent observability initiatives.
- Drive proactive decision making with the shortest possible latency by shifting the organization's focus from monitoring and reacting to applying observability.
- Pave the way for organizations to adopt AO by focusing on the scope of the business, application, and infrastructure layers.