An ER diagram in DBMS (database management systems) is a lot like a storyboard for an animated TV show – it’s a collection of diagrams that show how everything fits together. Where a storyboard demonstrates the flow from one scene to the next, an ER diagram highlights the components of your databases and the relationships they share.
Understanding the ER model in DBMS is the first step to getting to grips with basic database software (like Microsoft Access) and more complex database-centric programming languages, such as SQL. This article explores ER diagrams in detail.
ER Model in DBMS
An ER diagram in DBMS is a tangible representation of the tables in a database, the relationships between each of those tables, and the attributes of each table. These diagrams feature three core components:
- Entities – Represented by rectangles in the diagram, entities are objects or concepts used throughout your database.
- Attributes – These are the properties that each entity possesses. ER diagrams use ellipses to represent attributes, with the attributes themselves tending to be the fields in a table. For example, an entity for students in a school’s internal database may have attributes for student names, birthdays, and unique identification numbers.
- Relationships – No entity in an ER diagram is an island, as each is linked to at least one other. These relationships can take multiple forms, with said relationships dictating the flow of information through the database.
Mapping out your proposed database using the ER model is essential because it gives you a visual representation of how the database works before you start coding or creating. Think of it like the blueprint you’d use to build a house, with that blueprint telling you where you need to lay every brick and fit every door.
Entities in DBMS
An Entity in DBMS tends to represent a real-life thing (like the students mentioned previously) that you can identify with certain types of data. Each entity is distinguishable from the others in your database, meaning you won’t have multiple entities listing student details.
Entities come in two flavors:
- Tangible Entities – These are physical things that exist in the real world, such as a person, vehicle, or building.
- Intangible Entities – If you can see and feel an entity, it’s intangible. Bank accounts are good examples. We know they exist (and have data attributed to them) but we can’t physically touch them.
There are also different entity strengths to consider:
- Strong Entities – A strong entity is represented using a rectangle and will have at least one key attribute attached to it that allows you to identify it uniquely. In the student example we’ve already shared, a student’s ID number could be a unique identifier, creating a key attribute that leads to the “Student” entity being strong.
- Weak Entities – Weak entities have no unique identifiers, meaning you can’t use them alone. Represented using double-outlined rectangles, these entities rely on the existence of strong entities to exist themselves. Think of it like the relationship between parent and child. A child can’t exist without a parent, in the same way that a weak entity can’t exist without a strong entity.
Once you’ve established what your entities are, you’ll gather each specific type of entity into an entity set. This set is like a table that contains the data for each entity in a uniform manner. Returning to the student example, any entity that has a student ID number, name, and birthdate, may be placed into an overarching “Student” entity set. They’re basically containers for specific entity types.
Attributes in DBMS
Every entity you establish has attributes attached to it, as you’ve already seen with the student example used previously. These attributes offer details about various aspects of the entity and come in four types:
- Simple Attributes – A simple attribute is any attribute that you can’t break down into further categories. A student ID number is a good example, as this isn’t something you can expand upon.
- Composite Attributes – Composite attributes are those that may have other attributes attached to them. If “Name” is one of your attributes, its composites could be “First Name,” “Surname,” “Maiden Name,” and “Nickname.”
- Derived Attributes – If you can derive an attribute from another attribute, it falls into this category. For instance, you can use a student’s date of birth to derive their age and grade level. These attributes have dotted ellipses surrounding them.
- Multi-valued Attributes – Represented by dual-ellipses, these attributes cover anything that can have multiple values. Phone numbers are good examples, as people can have several cell phone or landline numbers.
Attributes are important when creating an ER model in DBMS because they show you what types of data you’ll use to populate your entities.
Relationships in DBMS
As your database becomes more complex, you’ll create several entities and entity sets, with each having relationships with others. You represent these relationships using lines, creating a network of entities with line-based descriptions telling you how information flows between them.
There are three types of relationships for an ER diagram in DBMS:
- One-to-One Relationships – You’ll use this relationship when one entity can only have one of another entity. For example, if a school issues ID cards to its students, it’s likely that each student can only have one card. Thus, you have a one-to-one relationship between the student and ID card entities.
- One-to-Many Relationships – This relationship type is for when one entity can have several of another entity, but the relationship doesn’t work in reverse. Bank accounts are a good example, as a customer can have several bank accounts, but each account is only accessible to one customer.
- Many-to-Many Relationships – You use these relationships to denote when two entities can have several of each other. Returning to the student example, a student will have multiple classes, with each class containing several students, creating a many-to-many relationship.
These relationships are further broken down into “relationship sets,” which bring together all of the entities that participate in the same type of relationship. These sets have three varieties:
- Unary – Only one entity participates in the relationship.
- Binary – Two entities are in the relationship, such as the student and course example mentioned earlier.
- n-ary – Multiple entities participate in the relationship, with “n” being the number of entities.
Your ER diagram in DBMS needs relationships to show how each entity set relates to (and interacts with) the others in your diagram.
ER Diagram Notations
You’ll use various forms of notation to denote the entities, attributes, relationships, and the cardinality of those relationships in your ER diagram.
Entity Notations
Entities are denoted using rectangles around a word or phrase, with a solid rectangle meaning a strong entity and a double-outlined rectangle denoting a weak entity.
Attribute Notations
Ellipses are the shapes of choice for attributes, with the following uses for each attribute type:
- Simple and Composite Attribute – Solid line ellipses
- Derived Attribute – Dotted line ellipses
- Multi-Valued Attribute – Double-lined ellipses
Relationship Notations
Relationship notation uses diamonds, with a solid line diamond depicting a relationship between two attributes. You may also find double-lined diamonds, which signify the relationship between a weak entity and the strong entity that owns it.
Cardinality and Modality Notations
These lines show you the maximum times an instance in one entity set can relate to the instances of another set, making them crucial for denoting the relationships inside your database.
The endpoint of the line tells you everything you need to know about cardinality and ordinality. For example, a line that ends with three lines (two going diagonally) signifies a “many” cardinality, while a line that concludes with a small vertical line signifies a “one” cardinality. Modality comes into play if there’s a minimum number of instances for an entity type. For example, a person can have many phone numbers but must have at least one.
Steps to Create an ER Diagram in DBMS
With the various notations for an ER diagram in DBMS explained, you can follow these steps to draw your own diagram:
- Identify Entities – Every tangible and intangible object that relates to your database is an entity that you need to identify and define.
- Identify Attributes – Each entity has a set of attributes (students have names, ID numbers, birthdates, etc.) that you must define.
- Identify Relationships – Ask yourself how each entity set fits together to identify the relationships that exist between them.
- Assign Cardinality and Modality – If you have an instance from Entity A, how many instances does it relate to in Entity B? Is there a minimum to consider? Assign cardinalities and modalities to offer the answers.
- Finalize Your Diagram – Take a final pass over the diagram to ensure all required entities are present, they have the appropriate attributes, and that all relationships are defined.
Examples of ER Diagrams in DBMS
Once you understand the basics of the ER model in DBMS, you’ll see how they can apply to multiple scenarios:
- University Databases – A university database will have entities such as “Student,” “Teacher,” “Course,” and “Class.” Attributes depend on the entity, with the people-based entities having attributes including names, dates of birth, and ID numbers. Relationships vary (i.e., a student may only have one teacher but a single teacher may have several students).
- Hospital Management Databases – Entities for this type of database include people (“Patients,” “Doctors,” and “Nurses”), as well as other tangibles, such as different hospital buildings and inventory. These databases can get very complex, with multiple relationships linking the various people involved to different buildings, treatment areas, and inventory.
- E-Commerce Databases – People play an important role in the entities for e-commerce sites, too, because every site needs a list of customers. Those customers have payment details and order histories, which are potential entities or attributes. Product lists and available inventory are also factors.
Master the ER Model in DBMS
An ER diagram in DBMS can look like a complicated mass of shapes and lines at first, making them feel impenetrable to those new to databases. But once you get to grips with what each type of shape and line represents, they become crucial tools to help you outline your databases before you start developing them.
Application of what you’ve learned is the key to success with ER diagrams (and any other topic), so take what you’ve learned here and start experimenting. Consider real-world scenarios (such as those introduced above) and draw diagrams based on the entities you believe apply to those scenarios. Build up from there to figure out the attributes and relationships between entity sets and you’re well on your way to a good ER diagram.
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From the same author
Read the articleAs one of the world’s fastest-growing industries, with a predicted compound annual growth rate of 16.43% anticipated between 2022 and 2030, data science is the ideal choice for your career. Jobs will be plentiful. Opportunities for career advancement will come thick and fast. And even at the most junior level, you’ll enjoy a salary that comfortably sits in the mid-five figures.
Studying for a career in this field involves learning the basics (and then the complexities) of programming languages including C+, Java, and Python. The latter is particularly important, both due to its popularity among programmers and the versatility that Python brings to the table. Here, we explore the importance of Python for data science and how you’re likely to use it in the real world.
Why Python for Data Science?
We can distill the reasons for learning Python for data science into the following five benefits.
Popularity and Community Support
Statista’s survey of the most widely-used programming languages in 2022 tells us that 48.07% of programmers use Python to some degree. Leftronic digs deeper into those numbers, telling us that there are 8.2 million Python developers in the world. As a prospective developer yourself, these numbers tell you two things – Python is in demand and there’s a huge community of fellow developers who can support you as you build your skills.
Easy to Learn and Use
You can think of Python as a primer for almost any other programming language, as it takes the fundamental concepts of programming and turns them into something practical. Getting to grips with concepts like functions and variables is simpler in Python than in many other languages. Python eventually opens up from its simplistic use cases to demonstrate enough complexity for use in many areas of data science.
Extensive Libraries and Tools
Given that Python was first introduced in 1991, it has over 30 years of support behind it. That, combined with its continued popularity, means that novice programmers can access a huge number of tools and libraries for their work. Libraries are especially important, as they act like repositories of functions and modules that save time by allowing you to benefit from other people’s work.
Integration With Other Programming Languages
The entire script for Python is written in C, meaning support for C is built into the language. While that enables easy integration between these particular languages, solutions exist to link Python with the likes of C++ and Java, with Python often being capable of serving as the “glue” that binds different languages together.
Versatility and Flexibility
If you can think it, you can usually do it in Python. Its clever modular structure, which allows you to define functions, modules, and entire scripts in different files to call as needed, makes Python one of the most flexible programming languages around.
Setting Up Python for Data Science
Installing Python onto your system of choice is simple enough. You can download the language from the Python.org website, with options available for everything from major operating systems (Windows, macOS, and Linux) to more obscure devices.
However, you need an integrated development environment (IDE) installed to start coding in Python. The following are three IDEs that are popular with those who use Python for data science:
- Jupyter Notebook – As a web-based application, Jupyter easily allows you to code, configure your workflows, and even access various libraries that can enhance your Python code. Think of it like a one-stop shop for your Python needs, with extensions being available to extend its functionality. It’s also free, which is never a bad thing.
- PyCharm – Where Jupyter is an open-source IDE for several languages, PyCharm is for Python only. Beyond serving as a coding tool, it offers automated code checking and completion, allowing you to quickly catch errors and write common code.
- Visual Studio Code – Though Visual Studio Code alone isn’t compatible with Python, it has an extension that allows you to edit Python code on any operating system. Its “Linting” feature is great for catching errors in your code, and it comes with an integrated debugger that allows you to test executables without physically running them.
Setting up your Python virtual environment is as simple as downloading and installing Python itself, and then choosing an IDE in which to work. Think of Python as the materials you use to build a house, with your IDE being both the blueprint and the tools you’ll need to patch those materials together.
Essential Python Libraries for Data Science
Just as you’ll go to a real-world library to check out books, you can use Python libraries to “check out” code that you can use in your own programs. It’s actually better than that because you don’t need to return libraries when you’re done with them. You get to keep them, along with all of their built-in modules and functions, to call upon whenever you need them. In Python for data science, the following are some essential libraries:
- NumPy – We spoke about integration earlier, and NumPy is ideal for that. It brings concepts of functionality from Fortran and C into Python. By expanding Python with powerful array and numerical computing tools, it helps transform it into a data science powerhouse.
- pandas – Manipulating and analyzing data lies at the heart of data sciences, and pandas give you a library full of tools to allow both. It offers modules for cleaning data, plotting, finding correlations, and simply reading CSV and JSON files.
- Matplotlib – Some people can look at reams of data and see patterns form within the numbers. Others need visualization tools, which is where Matplotlib excels. It helps you create interactive visual representations of your data for use in presentations or if you simply prefer to “see” your data rather than read it.
- Scikit-learn – The emerging (some would say “exploding) field of machine learning is critical to the AI-driven future we’re seemingly heading toward. Scikit-learn is a library that offers tools for predictive data analysis, built on what’s available in the NumPy and Matplotlib libraries.
- TensorFlow and Keras – Much like Scikit-learn, both TensorFlow and Keras offer rich libraries of tools related to machine learning. They’re essential if your data science projects take you into the realms of neural networks and deep learning.
Data Science Workflow in Python
A Python programmer without a workflow is like a ship’s captain without a compass. You can sail blindly onward, and you may even get lucky and reach your destination, but the odds are you’re going to get lost in the vastness of the programming sea. For those who want to use Python for data science, the following workflow brings structure and direction to your efforts.
Step 1 – Data Collection and Preprocessing
You need to collect, organize, and import your data into Python (as well as clean it) before you can draw any conclusions from it. That’s why the first step in any data science workflow is to prepare the data for use (hint – the pandas library is perfect for this task).
Step 2 – Exploratory Data Analysis (EDA)
Just because you have clean data, that doesn’t mean you’re ready to investigate what that data tells you. It’s like washing ingredients before you make a dish – you need to have a “recipe” that tells you how to put everything together. Data scientists use EDA as this recipe, allowing them to combine data visualization (remember – the Matplotlib library) with descriptive statistics that show them what they’re looking at.
Step 3 – Feature Engineering
This is where you dig into the “whats” and “hows” of your Python program. You’ll select features for the code, which define what it does with the data you import and how it’ll deliver outcomes. Scaling is a key part of this process, with scope creep (i.e., constantly adding features as you get deeper into a project) being the key thing to avoid.
Step 4 – Model Selection and Training
Decision trees, linear regression, logistic regression, neural networks, and support vector machines. These are all models (with their own algorithms) you can use for your data science project. This step is all about selecting the right model for the job (your intended features are important here) and training that model so it produces accurate outputs.
Step 5 – Model Evaluation and Optimization
Like a puppy that hasn’t been house trained, an unevaluated model isn’t ready for release into the real world. Classification metrics, such as a confusion matrix and classification report, help you to evaluate your model’s predictions against real-world results. You also need to tune the hyperparameters built into your model, similar to how a mechanic may tune the nuts and bolts in a car, to get everything working as efficiently as possible.
Step 6 – Deployment and Maintenance
You’ve officially deployed your Python for data science model when you release it into the wild and let it start predicting outcomes. But the work doesn’t end at deployment, as constant monitoring of what your model does, outputs, and predicts is needed to tell you if you need to make tweaks or if the model is going off the rails.
Real-World Data Science Projects in Python
There are many examples of Python for data science in the real world, some of which are simple while others delve into some pretty complex datasets. For instance, you can use a simple Python program to scrap live stock prices from a source like Yahoo! Finance, allowing you to create a virtual ticker of stock price changes for investors.
Alternatively, why not create a chatbot that uses natural language processing to classify and respond to text? For that project, you’ll tokenize sentences, essentially breaking them down into constituent words called “tokens,” and tag those tokens with meanings that you could use to prompt your program toward specific responses.
There are plenty of ideas to play around with, and Python is versatile enough to enable most, so consider what you’d like to do with your program and then go on the hunt for datasets. Great (and free) resources include The Boston House Price Dataset, ImageNet, and IMDB’s movie review database.
Try Python for Data Science Projects
By combining its own versatility with integrations and an ease of use that makes it welcoming to beginners, Python has become one of the world’s most popular programming languages. In this introduction to data science in Python, you’ve discovered some of the libraries that can help you to apply Python for data science. Plus, you have a workflow that lends structure to your efforts, as well as some ideas for projects to try. Experiment, play, and tweak models. Every minute you spend applying Python to data science is a minute spent learning a popular programming language in the context of a rapidly-growing industry.
Read the articleToday’s tech-driven world is governed by data – so much so that nearly 98% of all organizations are increasing investment in data.
However, company owners can’t put their feet up after improving their data capabilities. They also need a database management system (DBMS) – a program specifically designed for storing and organizing information efficiently.
When analyzing a DBMS, you need to be thorough like a detective investigating a crime. One of the elements you want to consider is DBMS architecture. It describes the structure of your database and how individual bits of information are related to each other. The importance of DBMS architecture is enormous, as it helps IT experts design and maintain fully functional databases.
But what exactly does a DBMS architecture involve? You’ll find out in this entry. Coming up is an in-depth discussion of database system concepts and architecture.
Overview of DBMS Architecture
Suppose you’re assembling your PC. You can opt for several configurations, such as those with three RAM slots and dual-fan coolers. The same principle applies to DBMS architectures.
Two of the most common architectures are three-level and two-level architectures.
Three-Level Architecture
Three-level architecture is like teacher-parent communication. More often than not, a teacher communicates with parents through children, asking them to convey certain information. In other words, there are layers between the two that don’t allow direct communication.
The same holds for three-level architecture. But instead of just one layer, there are two layers between the database and user: application client and application server.
And as the name suggests, a three-level DBMS architecture has three levels:
- External level – Also known as the view level, this section concerns the part of your database that’s relevant to the user. Everything else is hidden.
- Conceptual level – Put yourself in the position of a scuba diver exploring the ocean layer by layer. Once you reach the external level, you go one segment lower and find the conceptual level. It describes information conceptually and tells you how data segments interact with one another.
- Internal level – Another name for the internal level is the physical level. But what does it deal with? It mainly focuses on how data is stored in your system (e.g., using folders and files).
Two-Level Architecture
When you insert a USB into your PC, you can see the information on your interface. However, the source of the data is on the USB, meaning they’re separated.
Two-level architecture takes the same approach to separating data interface and data structure. Here are the two levels in this DBMS architecture:
- User level – Any application and interface in your database are stored on the user level in a two-level DBMS architecture.
- System level – The system level (aka server level) performs transaction management and other essential processes.
Comparison of the Two Architectures
Determining which architecture works best for your database is like buying a car. You need to consider how easy it is to use and the level of performance you can expect.
On the one hand, the biggest advantage of two-level architectures is that they’re relatively easy to set up. There’s just one layer between the database and the user, resulting in easier database management.
On the other hand, developing a three-level DBMS architecture may take a while since you need to include two layers between the database and the user. That said, three-level architectures are normally superior to two-level architectures due to higher flexibility and the ability to incorporate information from various sources.
Components of DBMS Architecture
You’ve scratched the surface of database system concepts and architecture, but don’t stop there. It’s time to move on to the basics to the most important elements of a DBMS architecture:
Data Storage
The fact that DBMS architectures have data storage solutions is carved in stone. What exactly are those solutions? The most common ones are as follows:
- Data files – How many files do you have on your PC? If it’s a lot, you’re doing exactly what administrators of DBMS architectures are doing. A large number of them store data in files, and each file is categorized into blocks.
- Indexes – You want your database operations to be like lightning bolts, i.e. super-fast. You can incorporate indexes to accomplish this goal. They point to data columns for quick retrieval.
- Data dictionary – Also known as system logs, data dictionaries contain metadata – information about your data.
Data Manipulation
A large number of companies still utilize manual data management methods. But using this format is like shooting yourself in the foot when there are advanced data manipulation methods are available. These allow you to process and retrieve data within seconds through different techniques:
- Query processor – Query processing refers to extracting data from your DBMS architecture. It operates like any other multi-stage process. It involves parsing, translation, optimization, and evaluation.
- Query optimizer – A DBMS architecture administrator can perform various query optimization tasks to achieve desired results faster.
- Execution engine – Whenever you want your architecture to do something, you send requests. But something needs to process the requests – that something is the execution engine.
Data Control
We’re continuing our journey through an average DBMS architecture. Our next stop is data control, which is comprised of these key elements:
- Transaction management – When carrying out multiple transactions, how does the system prioritize one over another? The answer lies in transaction management, which is also about processing multiple transactions side by side.
- Concurrency control – Database architecture is like an ocean teeming with life. Countless operations take place simultaneously. As a result, the system needs concurrency control to manage these concurrent tasks.
- Recovery management – What if your DBMS architecture fails? Do you give up on your project? No – the system has robust recovery management tools to retrieve your information and reduce downtime.
Database System Concepts
To give you a better understanding of a DBMS architecture, let’s describe the most important concepts regarding this topic.
Data Models
Data models do to information what your folders do to files – organize them. There are four major types of data models:
- Hierarchical model – Top-down and bottom-up storage solutions are known as hierarchical models. They’re characterized by tree-like structures.
- Network model – Hierarchical models are generally used for basic data relationships. If you want to analyze complex relationships, you need to kick things up a notch with network models. They enable you to represent huge quantities of complex information without a hitch.
- Relational model – Relations are merely tables with values. A relational model is a collection of these relations, indicating how data is connected to other data.
- Object-oriented model – Programming languages regularly use objects. An object-oriented model stores information as models and is usually more complex than other models.
Database Schema and Instances
Another concept you should familiarize yourself with is schemas and instances.
- Definition of schema and instance – Schemas are like summaries, providing a basic description of databases. Instances tell you what information is stored in a database.
- Importance of schema in DBMS architecture – Schemas are essential because they help organize data by providing a clear outline.
Data Independence
The ability of other pieces of information to remain unaffected after you change one bit of data is known as data independence. What are the different types of data independence, and what makes them so important?
- Logical data independence – If you can modify logical schemas without altering the rest of the system, your logical data is independent.
- Physical data independence – Physical data is independent if it remains unaffected when changing your hardware, such as SSD disks.
- Significance of data independence in DBMS architecture – Independent data is crucial for saving time in database management because it reduces the amount of information that needs to be processed.
Efficient Database Management Systems
Database management systems have a lot in common with other tech-based systems. For example, you won’t ignore problems that arise on your PC, be they CPU or graphics card issues. You’ll take action to optimize the performance of the device and solve those issues.
That’s exactly what 75% of developers and administrators of database management systems do. They go the extra mile to enhance the performance, scalability, flexibility, security, and integrity of their architecture.
Performance Optimization Techniques
- Indexing – By pointing to certain data in tables, indexes speed up database management.
- Query optimization – This process is about finding the most efficient method of executing queries.
- Caching – Frequently accessed information is cached to accelerate retrieval.
Scalability and Flexibility
- Horizontal scaling – Horizontal scaling involves increasing the number of servers.
- Vertical scaling – An administrator can boost the performance of the server to make the system more scalable.
- Distributed databases – Databases are like smartphones in that they can easily overload. Pressure can be alleviated with distributed databases, which store information in multiple locations.
Security and Integrity
- Access control – Restricting access is key to preventing cyber security attacks.
- Data encryption – Administrators often encrypt their DBMS architecture to protect sensitive information.
- Backup and recovery – A robust backup plan helps IT experts recover from shutdowns and other unforeseen problems.
Preparing for the Future Is Critical
DBMS architecture is the underlying structure of a database management system. It consists of several elements, all of which work together to create a fully functional data infrastructure.
Understanding the basic elements of DBMS architecture is vital for IT professionals who want to be well-prepared for future changes, such as hybrid environments. As the old saying goes – success depends upon preparation.
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- Agenda Digitale, published on November 25th, 2025
In recent years, the word ” sustainability ” has become a firm fixture in the corporate lexicon. However, simply “doing no harm” is no longer enough: the climate crisis , social inequalities , and the erosion of natural resources require a change of pace. This is where the net-positive paradigm comes in , a model that isn’t content to simply reduce negative impacts, but aims to generate more social and environmental value than is consumed.
This isn’t about philanthropy, nor is it about reputational makeovers: net-positive is a strategic approach that intertwines economics, technology, and corporate culture. Within this framework, digitalization becomes an essential lever, capable of enabling regenerative models through circular platforms and exponential technologies.
Blockchain, AI, and IoT: The Technological Triad of Regeneration
Blockchain, Artificial Intelligence, and the Internet of Things represent the technological triad that makes this paradigm shift possible. Each addresses a critical point in regeneration.
Blockchain guarantees the traceability of material flows and product life cycles, allowing a regenerated dress or a bottle collected at sea to tell their story in a transparent and verifiable way.
Artificial Intelligence optimizes recovery and redistribution chains, predicting supply and demand, reducing waste and improving the efficiency of circular processes .
Finally, IoT enables real-time monitoring, from sensors installed at recycling plants to sharing mobility platforms, returning granular data for quick, informed decisions.
These integrated technologies allow us to move beyond linear vision and enable systems in which value is continuously regenerated.
New business models: from product-as-a-service to incentive tokens
Digital regeneration is n’t limited to the technological dimension; it’s redefining business models. More and more companies are adopting product-as-a-service approaches , transforming goods into services: from technical clothing rentals to pay-per-use for industrial machinery. This approach reduces resource consumption and encourages modular design, designed for reuse.
At the same time, circular marketplaces create ecosystems where materials, components, and products find new life. No longer waste, but input for other production processes. The logic of scarcity is overturned in an economy of regenerated abundance.
To complete the picture, incentive tokens — digital tools that reward virtuous behavior, from collecting plastic from the sea to reusing used clothing — activate global communities and catalyze private capital for regeneration.
Measuring Impact: Integrated Metrics for Net-Positiveness
One of the main obstacles to the widespread adoption of net-positive models is the difficulty of measuring their impact. Traditional profit-focused accounting systems are not enough. They need to be combined with integrated metrics that combine ESG and ROI, such as impact-weighted accounting or innovative indicators like lifetime carbon savings.
In this way, companies can validate the scalability of their models and attract investors who are increasingly attentive to financial returns that go hand in hand with social and environmental returns.
Case studies: RePlanet Energy, RIFO, and Ogyre
Concrete examples demonstrate how the combination of circular platforms and exponential technologies can generate real value. RePlanet Energy has defined its Massive Transformative Purpose as “Enabling Regeneration” and is now providing sustainable energy to Nigerian schools and hospitals, thanks in part to transparent blockchain-based supply chains and the active contribution of employees. RIFO, a Tuscan circular fashion brand, regenerates textile waste into new clothing, supporting local artisans and promoting workplace inclusion, with transparency in the production process as a distinctive feature and driver of loyalty. Ogyre incentivizes fishermen to collect plastic during their fishing trips; the recovered material is digitally tracked and transformed into new products, while the global community participates through tokens and environmental compensation programs.
These cases demonstrate how regeneration and profitability are not contradictory, but can actually feed off each other, strengthening the competitiveness of businesses.
From Net Zero to Net Positive: The Role of Massive Transformative Purpose
The crucial point lies in the distinction between sustainability and regeneration. The former aims for net zero, that is, reducing the impact until it is completely neutralized. The latter goes further, aiming for a net positive, capable of giving back more than it consumes.
This shift in perspective requires a strong Massive Transformative Purpose: an inspiring and shared goal that guides strategic choices, preventing technology from becoming a sterile end. Without this level of intentionality, even the most advanced tools risk turning into gadgets with no impact.
Regenerating business also means regenerating skills to train a new generation of professionals capable not only of using technologies but also of directing them towards regenerative business models. From this perspective, training becomes the first step in a transformation that is simultaneously cultural, economic, and social.
The Regenerative Future: Technology, Skills, and Shared Value
Digital regeneration is not an abstract concept, but a concrete practice already being tested by companies in Europe and around the world. It’s an opportunity for businesses to redefine their role, moving from mere economic operators to drivers of net-positive value for society and the environment.
The combination of blockchain, AI, and IoT with circular product-as-a-service models, marketplaces, and incentive tokens can enable scalable and sustainable regenerative ecosystems. The future of business isn’t just measured in terms of margins, but in the ability to leave the world better than we found it.
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- Raconteur, published on November 06th, 2025
Many firms have conducted successful Artificial Intelligence (AI) pilot projects, but scaling them across departments and workflows remains a challenge. Inference costs, data silos, talent gaps and poor alignment with business strategy are just some of the issues that leave organisations trapped in pilot purgatory. This inability to scale successful experiments means AI’s potential for improving enterprise efficiency, decision-making and innovation isn’t fully realised. So what’s the solution?
Although it’s not a magic bullet, an AI operating model is really the foundation for scaling pilot projects up to enterprise-wide deployments. Essentially it’s a structured framework that defines how the organisation develops, deploys and governs AI. By bringing together infrastructure, data, people, and governance in a flexible and secure way, it ensures that AI delivers value at scale while remaining ethical and compliant.
“A successful AI proof-of-concept is like building a single race car that can go fast,” says Professor Yu Xiong, chair of business analytics at the UK-based Surrey Business School. “An efficient AI technology operations model, however, is the entire system – the processes, tools, and team structures – for continuously manufacturing, maintaining, and safely operating an entire fleet of cars.”
But while the importance of this framework is clear, how should enterprises establish and embed it?
“It begins with a clear strategy that defines objectives, desired outcomes, and measurable success criteria, such as model performance, bias detection, and regulatory compliance metrics,” says Professor Azadeh Haratiannezhadi, co-founder of generative AI company Taktify and professor of generative AI in cybersecurity at OPIT – the Open Institute of Technology.
Platforms, tools and MLOps pipelines that enable models to be deployed, monitored and scaled in a safe and efficient way are also essential in practical terms.
“Tools and infrastructure must also be selected with transparency, cost, and governance in mind,” says Efrain Ruh, continental chief technology officer for Europe at Digitate. “Crucially, organisations need to continuously monitor the evolving AI landscape and adapt their models to new capabilities and market offerings.”
An open approach
The most effective AI operating models are also founded on openness, interoperability and modularity. Open source platforms and tools provide greater control over data, deployment environments and costs, for example. These characteristics can help enterprises to avoid vendor lock-in, successfully align AI to business culture and values, and embed it safely into cross-department workflows.
“Modularity and platformisation…avoids building isolated ‘silos’ for each project,” explains professor Xiong. “Instead, it provides a shared, reusable ‘AI platform’ that integrates toolchains for data preparation, model training, deployment, monitoring, and retraining. This drastically improves efficiency and reduces the cost of redundant work.”
A strong data strategy is equally vital for ensuring high-quality performance and reducing bias. Ideally, the AI operating model should be cloud and LLM agnostic too.
“This allows organisations to coordinate and orchestrate AI agents from various sources, whether that’s internal or 3rd party,” says Babak Hodjat, global chief technology officer of AI at Cognizant. “The interoperability also means businesses can adopt an agile iterative process for AI projects that is guided by measuring efficiency, productivity, and quality gains, while guaranteeing trust and safety are built into all elements of design and implementation.”
A robust AI operating model should feature clear objectives for compliance, security and data privacy, as well as accountability structures. Richard Corbridge, chief information officer of Segro, advises organisations to: “Start small with well-scoped pilots that solve real pain points, then bake in repeatable patterns, data contracts, test harnesses, explainability checks and rollback plans, so learning can be scaled without multiplying risk. If you don’t codify how models are approved, deployed, monitored and retired, you won’t get past pilot purgatory.”
Of course, technology alone can’t drive successful AI adoption at scale: the right skills and culture are also essential for embedding AI across the enterprise.
“Multidisciplinary teams that combine technical expertise in AI, security, and governance with deep business knowledge create a foundation for sustainable adoption,” says Professor Haratiannezhadi. “Ongoing training ensures staff acquire advanced AI skills while understanding associated risks and responsibilities.”
Ultimately, an AI operating model is the playbook that enables an enterprise to use AI responsibly and effectively at scale. By drawing together governance, technological infrastructure, cultural change and open collaboration, it supports the shift from isolated experiments to the kind of sustainable AI capability that can drive competitive advantage.
In other words, it’s the foundation for turning ambition into reality, and finally escaping pilot purgatory for good.
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