This IRM UK event will be taking place in central London from the 3rd to 5th November 2010. It is co-located with two other related IRM conferences: Data Management and Information Quality. Full details may be obtained from the IRM conference web-site here.
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Posted by Peter Thomas
Introduction
Last week Ovum and @SarahBurnett were kind enough to invite me to speak at their Business Intelligence Masterclass in London.
Unfortunately one of the Ovum presenters, Madan Sheina, was ill, but Sarah did a great job running the session. The set up of the room and the number of delegates both encouraged interaction and there was a great atmosphere with lots of questions from the attendees and some interesting exchanges of ideas. Work commitments meant that I had to leave after lunch, which was a shame as I am sure that – based on what I saw in the morning – the afternoon workshops sessions would have been both entertaining and productive.
I certainly enjoyed my presentation – on Initiating and Developing a BI Strategy – which focussed on both my framework for success in Business Intelligence and, in particular, addressing the important cultural transformation aspects of these. Thank you also to the delegates both for the questions and observations and for kindly awarding my talk an 83% rating via the now ubiquitous seminar questionnaire.
Bouldering and Cultural Transformation
My partner bouldering the classic Boysen's Groove in Snowdonia
As part of my section on change management, I covered some of the themes that I introduced in my article Perseverance. In this I spoke about one of the types of rock climbing that I enjoy; bouldering. Bouldering is regular rock climbing on steroids, it is about climbing ultra-hard, but short climbs; often on boulders – hence the name. I compared the level of commitment and persistence required for success in bouldering to the need for the same attributes in change management initiatives.
I spoke to a few different delegates about this analogy during a coffee break. One in particular came up with an interesting expansion on my rock climbing theme. He referred to how people engaged in mountaineering and multi-pitch rock climbing make progress in a series of stages, establishing a new base at a higher point before attempting the next challenge. He went on to link this to making incremental progress on IT projects. I thought this was an interesting observation and told the gentleman in question that he had provided the inspiration for a future blog article.
An introduction to lead climbing
The above video is excerpted from the introduction to Hard Grit a classic 1998 climbing film by Slackjaw productions. It features climbing on the Gritstone (a type of hard sandstone) edges of the UK’s Peak District. This famous sequence shows a pretty horrendous fall off of a Peak District test piece called Gaia at Black Rocks. Amazingly the climber received no worse injuries than a severely battered and lacerated leg. Despite its proximity to my home town of London, Gritstone climbing has never been my cup of tea – it is something of an acquired taste and one that I have never appreciated as much as its many devotees.
As an aside you can see a photo of a latter-day climber falling off the same route at the beginning of my article, Some reasons why IT projects fail. I’m glad to say in this photo, unlike the video above, the climber is wearing a helmet!
What the clip illustrates is the dangers inherent in the subject of this article; traditional lead climbing. OK the jargon probably needs some explanation. First of all climbing is a very broad church, in this piece I’ll be ignoring whole areas such as mountaineering, soloing and the various types of winter and ice climbing. I am going to focus on roped climbing on rock, something that generally requires dry weather (unless you are a masochist or the British weather changes on you).
In this activity, one person climbs (unsurprisingly the climber) and another holds the rope attached to them (the belayer). The belayer uses a mechanism called a belay device to do this, but we will elide these details. With my background in Business Intelligence, I’ll now introduce some dimensions with which you can “slice and dice” this activity:
As the climber ascends, the belayer (hopefully!) takes in the slack, but (again hopefully!) without hauling the climber up the route. This means that if the climber falls (and the belayer is both competent and attentive) they should be caught by the rope almost immediately. Obviously this arrangement only works on single-pitch climbs.
Assuming that the climber is able to make a good attachment to the rock (again see next point) the issue here is how far they fall. If they climb 2m above their last attachment point, then a slip at this point will see them swinging 2m below this point – a total fall of 4m, much longer than when top roping. Also if the last attachment point is say 10m above the ground and the climber falls off say 8m above this, then slack in the system and rope stretch will probably see them hit the ground; something that should never happen in top roping.
[As an aside true top roping is what happens when the belayer climbs up after the climber. Here they are now belayed by the original climber from above. However no one uses the term top roping for this, instead they talk about bringing up the second, or seconding. Top roping is reserved for the practice of bottom roping described above, no one said that climbing was a logical sport!]
In the last point I referred to a lead climber mysteriously attaching themselves to the rock as they ascend. The way that they do this determines whether they are engaged in sport or traditional climbing (though there is some blurriness around the edges).
The process of equiping a sport route in this way can take some time, particularly if it is overhanging and of course it needs to be done well if the bolts are to hold a climber’s fall. A single-pitch sport climb may have 10 or more of these bolts, plus generally a lower-off point at the top.
The climber will take with them at least the same number of quick draws as there are bolts. These are two spring-loaded carabiners joined by a section of strong tape. As the climber ascends, they clip one end of a quick-draw to the staple or hanger and the other end over the rope attaching them to their belayer.
So long as the person who drilled and inserted the bolts did a good job and so long as the climber is competent in clipping themselves into these; then sport climbing should be relatively safe. At this point I should stress that I know of good climbers who have died sport climbing, often by making a simple mistake, often after having completed a climb and looking to lower off. Sport climbing is a relatively safer form of climbing, but it is definitively not 100% safe; no form of climbing is.
Because of its [relative] safety, sport climbing has something of the ethos of bouldering, with a focus on climbing at your limit as the systems involved should prevent serious injury in normal circumstances.
Nuts/wires (which you try to wedge into small cracks):
Hexes (which you try to wedge into large cracks):
Cams/Friends (spring-loaded mechanical devices that you place in parallel cracks – the latter name being a make of cams):
Slings (which you use to lasso spikes, or thread through any convenient holes in the rock):
Once you have secured any of the above into or around the rock, you clip in with a quick-draw as in Sport climbing and heave a sigh of relief.
In the video that started this section, Jean-minh Trin-thieu falls (a long way) on to a cam, which thankfully holds. The issue on this particular climb is that there are no more opportunities to place gear after the final cam at round about half-way up. Th nature of the rock means that a lot of Gritsone climbing is like this; one of the reasons that it is not a favourite of mine.
In any case, having established the above dimensions, I am going to drill down via two of them to concentrate on just trad leading. My comments apply equally to multi- and single-pitch, but the former offers greater scope for getting yourself into trouble.
The many perils of trad leading
Dave Birkett on 'Nowt Burra Fleein' thing' E8 6c, Cam Crag, Wasdale, The English Lake District - © Alastair Lee - Posingproductions.com
One of the major issues with trad climbing, particularly multi-pitch trad climbing in a mountain environment is that you are never quite sure what you need to take. The more gear you clip to your harness, the more likely you are to be able to deal with any eventuality, but the heavier you are going to be and the harder it will be to climb. Some one once compared trad leading to climbing wearing a metal skirt.
The issue here is that not only do you have to find somewhere to place this protective gear, you have to place it well so that is not dislodged as you climb past, or pulls out if you fall. What adds to this problem is that you may have to try to place say a wire in a situation where you are holding on to a small hold with one hand, with only one foot on a hold and the other dangling. You may also be on an overhang and thus with all gravity’s force coming to bear on your tendons. At such moments thoughts like “how far below was my last piece of gear?”, “how confident am I that I placed it well?” and “what happens if I can’t fiddle this piece of metal into this crack before my fingers un-peal?” tend to come to mind with alarming ease.
It is not unheard of for a trad leader to climb up many metres, placing an assortment of gear en route, only to fall off and have all of it rip out, a phenomenon call “unzipping”, thankfully not something I have experienced directly; though I have seen it happen to other people.
These additional uncertainties tend to lead to a more cautious approach to trad leading, with many people climbing within their abilities on trad climbs. Some people push themselves on trad and some get away with it for a while. However there is a saying about there being old climbers and bold climbers, but no old bold climbers.
The links with business projects
I have written quite a few times before about the benefits of an incremental approach, so long as this bears the eventual strategic direction in mind (see for example: Tactical Meandering and Holistic vs Incremental approaches to BI). In rock climbing, even within a single pitch, it is often recommended to break this into sections, particularly if there are obvious places (e.g. ledges) where you can take a bit of a rest and consider the next section. This also helps with not being too daunted; often the biggest deal is to start climbing and once you are committed then things become easier (though of course this advice can also get you in over your head on occasion).
Splitting a climb into sections is a good idea, but – in the same way as with business projects – you need to keep your eye on your eventual destination. If you don’t you may be so focussed on the current moves that you go off route and then have to face potentially difficult climbing to get back where you need to be. The equivalent in business would be projects that do not advance the overall programme.
However the analogy doesn’t stop there. If we break a single-pitch trad lead climb into smaller sections, those between each piece of gear that you place, then it is obvious that you need to pay particular attention to the piece of equipment that you are about to employ. If you do this well, then you have minimised the distance that you will fall and this will bolster your confidence for the next piece of climbing. If you rush placing your gear, or assume that it is sort of OK, then at the best you will give yourself unnecessary concerns about your climbing for the next few metres. At worst a fall could lead to this gear ripping and a longer fall, or even hitting the ground.
In business projects, if you take an incremental approach, then in the same way you must remember that you will be judged on the success or failure of the most recent project. Of course if you have a track record of earlier success then this can act as a safety net; the same as when your highest piece of gear fails, but the next one catches you. However, it is not the most comfortable of things to take a really long leader fall and similarly it is best to build on the success of one project with further successes instead of resting on your laurels.
Of course the consequences of rushing your interim steps in rock climbing can be a lot more terminal than in business. Nevertheless failure in either activity is not welcome and it is best to take every precaution to avoid it.
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Leave a Comment » | business intelligence, change management, cultural transformation, project management | Tagged: bouldering, lead climbing, ovum, rock climbing | Permalink
Posted by Peter Thomas
I have been a member of the Business Intelligence Mecca that is BeyeNetwork.com for quite some time, but as of this week I am delighted to announce that they will be syndicating this blog at: http://www.beyeblogs.com/pthomas/.
Thank you to all at at BeyeNetwork for setting this up.
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Leave a Comment » | blogging, business intelligence, site update, social media | Tagged: beyeblogs, beyenetwork | Permalink
Posted by Peter Thomas
Measuring the effectiveness of business intelligence programmes is something that I both speak and blog about regularly. In fact Measuring the benefits of Business Intelligence remains the most frequently read article on this site (with over 4,000 hits at the time of writing).
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Ann All from IT Business Edge recently blogged on this topic and included some of my thoughts, starting at the foot of page 1. The article is entitled Will ‘Hair of the Dog’ Help Companies Measure BI Efforts?. I would recommend having a read.
You can follow Ann on Twitter at @all1ann
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Posted by Peter Thomas
Introduction
A lot of human scientific and technological progress over the span of recorded history has been related to discerning patterns. People noticed that the Sun and Moon both had regular periodicity to their movements, leading to models that ultimately changed our view of our place in the Universe. The apparently wandering trails swept out by the planets were later regularised by the work of Johannes Kepler and Tycho Brahe; an outstanding example of a simple idea explaining more complex observations.
In general Mathematics has provided a framework for understanding the world around us; perhaps most elegantly (at least in work that is generally accessible to the non-professional) in Newton’s Laws of Motion (which explained why Kepler and Brahe’s models for planetary movement worked). The simple formulae employed by Newton seemed to offer a precise set of rules governing everything from the trajectory of an arrow to the orbits of the planets and indeed galaxies; a triumph for the application of Mathematics to the natural world and surely one of humankind’s greatest achievements.
For centuries it appeared that natural phenomena seemed to have simple principles underlying them, which were susceptible to description in the language of Mathematics. Sometimes (actually much more often than you might think) the Mathematics became complicated and precision was dropped in favour of – generally more than good enough – estimation; but philosophically Mathematics and the nature of things appeared to be inextricably interlinked. The Physicist and Nobel Laureate E.P. Wigner put this rather more eloquently:
The miracle of the appropriateness of the language of mathematics for the formulation of the laws of physics is a wonderful gift which we neither understand nor deserve.
In my youth I studied Group Theory, a branch of mathematics concerned with patterns and symmetry. The historical roots (no pun intended[1]) of Group Theory are in the solvability of polynomial equations, but the relation with symmetry emerged over time; revealing an important linkage between geometry and algebra. While Group Theory is a part of Pure Mathematics (supposedly studied for its own intrinsic worth, rather than any real-world applications), its applications are actually manifold. Just one example is that groups lie (again no pun intended[2]) at the heart of the Standard Model of Particle Physics.
However, two major challenges to this happy symbiosis between Mathematics and the Natural Sciences arose. One was an abrupt earthquake caused by Kurt Gödel in 1931. The other was more of a slowly rising flood, beginning in the 1880s with Henri Poincaré and (arguably) culminating with Ruelle, May and Yorke in 1977 (though with many other notables contributing both before and after 1977). The linkage between Mathematics and Science persists, but maybe some of the chains that form it have been weakened.
Potentially fallacious patterns
However, rather than this article becoming a dissertation on incompleteness theorems or (the rather misleadingly named) chaos theory, I wanted to return to something more visceral that probably underpins at least the beginnings of the long association of Mathematics and Science. Here I refer to people’s general view that things tend to behave the same way as they have in the past. As mentioned at the beginning of this article, the sun comes up each morning, the moon waxes and wanes each month, summer becomes autumn (fall) becomes winter becomes spring and so on. When you knock your coffee cup over it reliably falls to the ground and the contents spill everywhere. These observations about genuine patterns have served us well over the centuries.
It seems a very common human trait to look for patterns. Given the ubiquity of this, it is likely to have had some evolutionary benefit. Indeed patterns are often there and are often useful – there is indeed normally more traffic on the roads at 5pm on Fridays than on other days of the week. Government spending does (with the possible exception of current circumstances) generally go up in advance of an election. However such patterns may be less useful in other areas. While winter is generally colder than summer (in the Northern hemisphere), the average temperature and average rainfall in any given month varies a lot year-on-year. Nevertheless, even within this variability, we try to discern patterns to changes that occur in the weather.
We may come to the conclusion that winters are less severe than when we were younger and thus impute a trend in gradually moderating winters; perhaps punctuated by some years that don’t fit what we assume is an underlying curve. We may take rolling averages to try to iron out local “noise” in various phenomena such as stock prices. This technique relies on the assumption that things change gradually. If the average July temperature has increased by 2°C in the last 100 years, then it maybe makes sense to assume that it will increase by the same 2°C ±0.2°C in the next 100 years. Some of the work I described earlier has rigorously proved that a lot of these human precepts are untrue in many important fields, not least weather prediction. The phrase long-term forecast has been 100% shown to be an oxymoron. Many systems – even the simplest, even those which are apparently stable[3] – can change rapidly and unpredictably and weather is one of them.
For the avoidance of doubt I am not leaping into the general Climate Change debate here – except in the most general sense. Instead I am highlighting the often erroneous human tendency to believe that when things change they do so smoothly and predictably. That when a pattern shifts, it does so to something quite like the previous pattern. While this assumed smoothness is at the foundation of many of our most powerful models and techniques (for example the grand edifice of The Calculus), in many circumstances it is not a good fit for the choppiness seen in nature.
Obligatory topical section on volcanoes
![First published in September 1843 to take part in 'a severe contest between intelligence, which presses forward, and an unworthy, timid ignorance obstructing our progress' [nice use of the Oxford / Harvard comma BTW]](http://peterthomas.files.wordpress.com/2010/03/the-economist.jpg?w=250&h=122 "First published in September 1843 to take part in 'a severe contest between intelligence, which presses forward, and an unworthy, timid ignorance obstructing our progress' [nice use of the Oxford / Harvard comma BTW]")
The above observations about the occasionally illusory nature of patterns lead us to more current matters. I was recently reading an article about the Eyjafjallajokull eruption in The Economist. This is suffused with a search for patterns in the history of volcanic eruptions. Here are just a few examples:
To be fair, The Economist did lace their piece with various caveats, for example the above-quoted “it would seem fair to expect”, but not all publications are so scrupulous. There is perhaps something comforting in all this numerology, maybe it gives us the illusion that we can make meaningful predictions about what a volcano will do next. Modern geologists have used a number of techniques to warn of imminent eruptions and these approaches have been successful and saved lives. However this is not the same thing as predicting that an eruption is likely in the next ten years solely because they normally occur every century and it is 90 years since the last one. Long-term forecasts of volcanic activity are as chimerical as long-term weather forecasts.
A little light analysis
Looking at another famous volcano, Vesuvius, I have put together the following simple chart.
The average period between eruptions is just shy of 14 years, but the pattern is anything but regular. If we expand our range a bit, we might ask how many eruptions occurred between 10 and 20 years after the previous one. The answer is just 9 of the 26[4], or about 35%. Even if we expand our range to periods of calm lasting between 5 and 25 years (so 10 years of leeway on either side), we only capture 77% of eruptions. The standard deviation of the periods between recorded eruptions is a whopping 12.5; eruptions of Vesuvius are not regular events.
One aspect of truly random distributions at first seems counterfactual, this is their lumpiness. It might seem reasonable to assume that a random set of events would lead to a nicely spaced out distribution; maybe not a set of evenly-spaced points, but a close approximation to one. In fact the opposite is generally true; random distributions will have clusters of events close to each other and large gaps between them.
The above exhibit (a non-wrapped version of which may be viewed by clicking on it) illustrates this point. It compares a set of pseudo-random numbers (the upper points) with a set of truly random numbers (the lower points)[5]. There are some gaps in the upper distribution, but none are large and the spread is pretty even. By contrast in the lower set there are many large gaps (some of the more major ones being tagged a, … ,h) and significant clumping[6]. Which of these two distributions more closely matches the eruptions of Vesuvius? What does this tell us about the predictability of its eruptions?
The predictive analytics angle
As always in closing I will bring these discussions back to a business focus. The above observations should give people involved in applying statistical techniques to make predictions about the future some pause for thought. Here I am not targeting the professional statistician; I assume such people will be more than aware of potential pitfalls and possess much greater depth of knowledge than myself about how to avoid them. However many users of numbers will not have this background and we are all genetically programmed to seek patterns, even where none may exist. Predictive analytics is a very useful tool when applied correctly and when its findings are presented as a potential range of outcomes, complete with associated probabilities. Unfortunately this is not always the case.
It is worth noting that many business events can be just as unpredictable as volcanic eruptions. Trying to foresee the future with too much precision is going to lead to disappointment; to say nothing of being engulfed by lava flows.
| [1] | The solvability of polynomials is of course equivalent to whether or not roots of them exist. |
| [2] | Lie groups lie at the heart of quantum field theory – a interesting lexicographical symmetry in itself |
| [3] | Indeed it has been argued that non-linear systems are more robust in response to external stimuli than classical ones. The latter tend to respond to “jolts” in a smooth manner leading to a change in state. The former often will revert to their previous strange attractor. It has been postulated that evolution has taken advantage of this fact in demonstrably chaotic systems such as the human heart. |
| [4] | Here I include the – to date – 66 years since Vesuvius’ last eruption in 1944 and exclude the eruption in 1631 as there is no record of the preceding one. |
| [5] | For anyone interested, the upper set of numbers were generated using Excel’s RAND() function and the lower are successive triplets of the decimal expansion of pi, e.g. 141, 592, 653 etc. |
| [6] | Again for those interested the average gap in the upper set is 10.1 with a standard deviation of 4.3; the figures for the lower set are 9.7 and 9.6 respectively. |
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10 Comments | business intelligence | Tagged: mathematics, predictive analytcis, statistics, volcano, eyjafjallajokull, vesuvius, chaos theory, non-linear systems, weather prediction | Permalink
Posted by Peter Thomas
While spring cleaning at home at the weekend, I came across a DVD of an interview I did for Informatica back in March 2005. This is still accessible on the Informatica web-site and appears in my video library, but I thought that I had lost my copy of the original.
Having made this discovery, I added it to my selection of videos on YouTube.com.
In the interview I stress the need for consistency in management information; the dynamics of the Insurance industry and the business value added by Business Intelligence in a pan-European insurance organisation.
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1 Comment | business intelligence, data warehousing, informatica | Tagged: data integration, video | Permalink
Posted by Peter Thomas
One of the benefits of the WordPress.com platform is that you can get some indication as to which other parts the the web are directing traffic your way. It was via this facility that I came across an article on Microsoft‘s site linking back to my piece Measuring the benefits of Business Intelligence. The title, sub-title and authorship of the Microsoft post is as follows:
How to Measure BI Value
A thorough assessment will help you demonstrate the effectiveness of your BI investments. We offer 8 factors to consider.
By Paula Klein, TechWeb
You can read the article here.
As always, my aim in writing this column is to remain vendor-neutral, however the Microsoft piece is not specifically pushing their BI products (though clearly further information about them is only a click away), but rather offering some general commentary.
Again it is interesting to note the penetration of social media (such as this blog) into mainstream technology business.
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Posted by Peter Thomas
On 29th April 2010, I will be speaking at this event, along with Sarah Burnett (Sarah’s blog, @sarahburnett) and Madan Sheina. The seminar is entitled Business Intelligence – Effective Strategies for Successful Deployment and you can find further details here.
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Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. |
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1 Comment | business intelligence | Tagged: butler group, ovum, sarah burnett, seminar | Permalink
Posted by Peter Thomas
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I have been a regular visitor to Merv Adrian’s excellent blog since just after its inception and have got to know Merv virtually via twitter (@merv) and other channels. I recently read his article : Oracle Ups EPM Ante, which covered Oracle’s latest progress in integrating its various in-house and acquired technologies in the Enterprise Performance Management and Business Intelligence arenas.
The article is clearly written and helpful, I recommend you take a look if these areas impinge upon you. One section caught my attention (my emphasis):
Finally, Oracle has long had a sizable base in government, and its new Hyperion Public Sector Planning and Budgeting app suite continues the integration theme, tapping its ERP apps (both Oracle E-Business Suite [EBS] and PeopleSoft ERP) for bidirectional feeds.
My current responsibilities include EPM, BI and the third Oracle ERP product, JD Edwards. I don’t work in the public sector, but was nevertheless interested in the concept of how and whether JDE fitted into the above scenario. I posted a comment and within a few hours Merv replied, having spoken to his senior Oracle contacts. The reply was from a vendor-neutral source, but based on information “straight from the horse’s mouth”. It is illuminating to ponder how I could have got a credible answer to this type of question any quicker.
To recap, my interactions with Merv are via the professional social media Holy Trinity of blogs, twitter.com and LinkedIn.com. The above is just one small example of how industry experts can leverage social media to get their message across, increase their network of influence and deliver very rapid value. I can only see these types of interactions increasing in the future. Sometimes social media can be over-hyped, but in the world of industry analysis it seems to be a marriage made in heaven.
Prior to becoming an analyst, Merv was Senior Director, Strategic Marketing at Sybase, where he also held director positions in data warehouse marketing and analyst relations. Prior to Sybase, Merv served as a marketing manager at Information Builders, where he founded and edited a technical journal and a marketing quarterly, subsequently becoming involved in corporate and product marketing and launching a formal AR role.
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2 Comments | blogging, enterprise performance management, oracle, social media, twitter | Tagged: merv adrian, linkedin.com | Permalink
Posted by Peter Thomas
Introduction
Bruno Aziza, Worldwide Strategy Lead for Business Intelligence at Microsoft recently drew my attention to his article on The Official Microsoft Blog entitled Use Business Intelligence To Compete More Effectively.
My blog attempts to stay vendor-neutral, but much of Bruno’s article is also in the same vein; aside from the banner appearing at the top of course. It is noteworthy how many of the big players are realising that engaging with the on-line community in a sotto voce manner is probably worth much more than a fortissimo sales pitch. This approach was also notable in another output from the BI stable at Microsoft; Nic Smith’s “History of Business Intelligence” , which I reviewed in March 2009. However, aside from these comments I’ll focus more on what Bruno says than on who he works for; and what he says is interesting.
His main thesis is that good BI can “sharpen competitive skills [...] turning competitive insights into new ways to do business”. I think that it is intriguing how some organisations, ideally having already got their internal BI working well, are now looking to squeeze even further value out of their BI platform by incorporating more outward-looking information; information relating to their markets, their customers and their competitors. This was the tenth BI trend I predicted in another article from March 2009. However, I can’t really claim to be all that prescient as this development seems pretty common-sensical to me.
Setting the bar higher
Competition between companies is generally seen as a positive thing – one reason that there is so much focus on anti-trust laws at present. Competition makes the companies involved in it (or at least those that survive) healthier, their products more attuned to customer needs, their services more apt. It also tends to deliver better value and choice to customers and thus in aggregate drives overall economic well-being (though of course it can also generate losers).
In one of my my earliest blog articles, Business Intelligence and Transparency, I argued that good BI could also drive healthy internal competition by making the performance of different teams and individuals more accessible and comparable (not least to the teams and individuals themselves). My suggestion was that this would in turn drive a focus on relative performance, rather than settling for absolute performance. The latter can lead to complacency, the former ensures that the bar is always reset a little higher. Although this might seem potentially divisive at first, my experience of it in operation was that it led to a very positive corporate culture.
Although organisations in competition with each other are unlikely to share benchmarks in the same way as sub-sections of a single organisation, it is often possible to glean information from customers, industry associations, market research companies, or even the published accounts of other firms. Blended with internal data, this type of information can form a powerful combination; though accuracy is something that needs to be born in mind even more than with data that is subject to internal governance.
A new source of competitive advantage
Bruno’s suggestion is that the way that companies leverage commonly available information (say Governmental statistics) and combine this with their own numbers is in itself a source of competitive advantage. I think that there is something important here. One of the plaudits laid at the feet of retail behemonth Wal Mart is that it is great at leveraging the masses of data collected in its stores and using this in creative ways; ways that some of its competition cannot master to the same degree.
In recent decades a lot of organisations have attempted to define their core competencies and then stick to these. Maybe a competency in generating meaningful information from both internal and external sources and then – crucially – using this to drive different behaviours, is something that no self-respecting company should be without in the 2010s.
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Posted by Peter Thomas
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