Alignment, Iteration and Business Intelligence
March 25, 2010
For most of the last two decades, LÛCRUM has participated in creating over 100 solutions for some of the most prominent organizations in business and education. In 1998, LÛCRUM published its first full Business Intelligence Methodology, iStream. The word “stream” was used to symbolize the continuous aspect of the software development lifecycle versus traditional “waterfall” SDLC’s. This post is intended to conceptually explain how LÛCRUM’s iStream is a differentiated and unique approach to the development of successful Enterprise Business Intelligence Solutions. After years of focus on the delivery of Data oriented projects, LÛCRUM has continued to refine its methodology, leveraging the continuous learning from each new engagement to benefit the next, and to enrich the iStream process itself.
The first and probably most important non-technical differentiated aspect of iStream is the concept of Alignment. Many consulting organizations and internal IT organizations have some type of design or planning step often called “Envisioning” as an initial step in their development process. This is for good reason: understanding the customer’s end goal or picture of success is critical to the success of the project. At the same time, this does not procedurally support the fact that many individuals are involved in determining the success of a project, and further, in most cases these individuals are not in detailed agreement in regards to what that success looks like, or how it is defined. Alignment takes this into account, and is a prescribed process to ensure a common understanding of the success criteria by the key stakeholders involved in any enterprise project, including department heads and/or the Information Technology department. This includes a focus on ensuring that a miscommunication cannot occur where language is not specific enough, for example in clarifying the accepted definition of the term “Sales” in a company. To explore this a bit, is “Sales” the number of transactions? The dollar volume closed? Over what timeframe? By what channel? (sales people, resellers, distributors, telesales, etc.) As simple as this concept may sound – misunderstandings or assumptions in areas as simple as this are generally a key reason for project failure. In this area, LÛCRUM is unique and differentiated in its development approach.
Another key differentiation of LÛCRUM’s approach, particularly as it relates to Business Intelligence, is in the concept of the iteration of a project. The iStream methodology allows for iteration in the development of the end result, particularly through the recognition that many pieces may make up the whole. For example, related to Business Intelligence; we may begin by working with an individual decision maker, say the VP of Marketing. In working with this person we may offer to them the YourView Instant Analytics solution, allowing them to rapidly see their information in a new way through the combination of several different reports or sources into a single view. Per the YourView solution, this can take place in a matter of days; however by definition it follows the iStream process – however abbreviated – as it is focused on only a single user. When that VP is prepared to create a complete solution for the Marketing department, the initial work now functions as a pilot/proof of concept rolling into the Alignment, Discover and Architect components of iStream for the larger YourView 360 (Data Mart) project. In this fashion, we are “iterating” our development of the data mart through one or more “Instant Analytics” projects. Both projects follow iStream; however the smaller engagements feed into the larger. When that organization is prepared to roll out an Enterprise Data Warehouse – the same holds true, the work that had been completed at the Data Mart level for the Marketing department will now be employed in the Alignment, Discover and Architect phases of the Enterprise Data Warehouse project. In this fashion the work that we accomplish at any level of the Business Intelligence Solution chain is applicable for the next, and all would be accomplished using iStream.
While the items above are not descriptive of the entirety of iStream, nor of the entire list of benefits of the LÛCRUM approach, they are absolutely two of the components of iStream which differentiate it from the plethora of SDLC approaches available in the market, and another aspect of what makes LÛCRUM a unique Business Intelligence Consultancy.
Good enough?
March 16, 2010
When is good enough, well, good enough? I suppose that depends, one old argument says that close only works in horseshoes and hand grenades. Can it work with decision making? How about decision support systems? Is good enough the manually created spreadsheets that over 90% of organizations use for decision support? I would argue that while it’s not good enough, most business decision makers work that way.
To get at the data that most executives feel they need to make accurate decisions, many turn to the manual modification of existing reports, or the creation of their own “Pet” spreadsheet they use almost daily, or certainly many times a week.
In an update to a report cited last spring on this site, a September, 2009 Dartmouth University study suggests that the error rates in formulas on spreadsheets in their study were only .087% of all formulas they audited. HOWEVER, these were in cases where the formula produced the WRONG RESULT, and actually resulted in 87% OF THE SPREADSHEETS REVIEWED having errors in which the spreadsheet then produced the wrong result.
How good is good enough? What if you could reproduce the “Pet” spreadsheet in a true Business Intelligence solution which would ensure that the data and results in the sheet were as solid as the data in your transactional systems in the first place? How much does the wrong data or the wrong decision cost you, or your company? I would argue that “good enough” might just be good enough, if you could ensure that the data was accurate, and mitigated the possibility of error, while increasing the timeliness of the information to the decision maker. We have deployed such systems in a couple weeks’ time leveraging tools like SharePoint, Excel, and other software products that our customers already owned, and quickly delivered a system to our customer where we dramatically increased the accuracy of their information. These solutions form the basis of our iterative approach to Business Intelligence.
Predictive Analytics & Healthcare
February 12, 2010
As a follow up regarding my post yesterday on Predictive Analytics, I wanted to bring attention to an article that Wired Magazine had last November on a predictive concept for “Modeling Human Drug Trials – Without the Human.” Using similar concepts, as well as rules which were indeed put in place by PHD’s, these folks replicated human trials which had taken 7 years of study – in about an hour. Yup, hit run on the computer, and an hour later the results popped up – which according to the article hit 2 of the 4 markers studied perfectly, the 3rd within an approved margin of error, and the 4th was just below the accepted margin of error. Ok, the computer model took 2 months to setup, and 1 hour to run, but running this model in 2 months and 1 hour, compared with the actual trial which involved thousands of people, millions of dollars, and 7 years? WOW, very very powerful, controverisal for sure, but very powerful. Here’s the link for your reading pleasure. http://www.wired.com/magazine/2009/11/ff_archimedes/…
If I Had A Hammer…
January 14, 2010
If I had a hammer…
No not the song… There is a story that the IT people like to tell, not sure if it is true but I love it so well…sorry Jimmy B. It goes something like this.
A manufacturing company with a complex assembly line had a machine break down on them. The machine was critical in the production of their products, yet try as they might to fix it themselves, they just could not keep it running 24×7. Pridefully, the plant manager didn’t want to admit that his team couldn’t solve the problem, but he knew that soon enough the company’s product yield would be impacted and someone way above his pay grade would notice. Time to call an expert.
The following week, the expert arrives at the plant. The plant manager escorted him to the offending machine. The expert set down his briefcase and began to ask a few questions of the plant manager and the line supervisor. He then walked around the machine, climbed up the maintenance ladder looking around. Climbing back down the ladder, he asked the line supervisor if he had a hammer. The supervisor looked at him sideways and said, “well, uh, yea, I got one.” So the supervisor went to his toolbox, retrieved a well worn ball-peen hammer and handed it to the expert. The expert climbed back up the maintenance ladder and leaned over the side of the ladder to reach the broken machine. He swing the hammer down sharply with a loud “bang”. Instantly, the machine began to whir, the indicator panel on the side of the machine lit up with all green lights and production was running again!
The plant manager and line supervisor thanked the expert for his help to which the expert replied that he’d send his invoice for services later that week.
The invoice arrived on the plant manager’s desk and when he opened it the invoice contained a single line item for services.
- Repair of Machine…………………………………………………………………………………………………….$10,000.00
The plant manager was not happy. He thought to himself, “How in the world can that guy charge me ten grand for swinging a hammer?” He immediately called the expert and asked him for a detailed invoice. The expert told him he’d send out another invoice immediately. Two days later the invoice arrived. The plant manager tore open the envelope. The invoice read:
- Use of Hammer………………………………………………………………………………………………………..……….$1.00
- Knowing where to strike hammer………………………………………………………………………………$9,999.00
Isn’t this story much like business today when it comes to knowledge? Many companies are now measuring their enterprise data storage in petabytes. Yet with all that data, they still struggle to answer questions such as—Who’s my most profitable customer? Or, Who’s my most in-need customer? Or, which customer is likely to leave for my competition? How can I increase my business? Where should I focus my efforts? The answers are very likely embedded deep in the data stores of the company but the decision makers can’t get the answers they need, when they need them, how they need them, and how to apply the answers. And therefore they aren’t getting the knowledge they need. They have the “hammers” but they aren’t helping. Enter Business Intelligence. Sure, BI has been around for a long time, but it’s evolving just as today’s businesses are. In today’s world, you need more than data. You need more than information. What you need is knowledge. The fluid, meaningful, applicable evolution of data that allows you to “fix your broken machine”. BI is your answer to unlocking the knowledge you need.
If you’re asking yourself important questions to which you have no answers, might be time to call the expert.
The Phrase Business Intelligence
January 5, 2010
I first came across the word “Business Intelligence” at the 1999 Cognos meeting in Toronto when their CEO announced the “new IT category” as part of the leadership strategy. Their marketing gurus must not have done a manual search or focus group since there wasn’t any indication that anyone really knew why it’s called “business intelligence.” Let’s look at the historical words in this category of making data more meaningful. Throughout my 29-year career, Information Technology Professionals have tended to over-complicate what they are trying to accomplish by coming up with descriptive labels that tend to remind me of a NASA space mission. Back in the Eighties, we called it Decision Support Systems (“DSS”). In the early Nineties, it was referred to as Executive Information Systems (“EIS”). Then, with the explosion of relational data base technology, the new movement became coined as various tangible models: Data Warehousing, Data Marts, Closets, Data Mining, and the like.
From an IT perspective, there are a lot of differences between these definitions throughout the years. At the same time, how do they really differ from a business executive viewpoint? Are the decisions in business being made today differ significantly from decisions that were made yesterday? Does the thinking process differ from an analytical viewpoint? Does having more data mean that you can make better decisions? Are decision-makers better off with all of the data that is available? How does the business executive think about “business intelligence” from an information viewpoint?
Here’s a three-part “Maslow’s Triangle” layered model to think about Business Intelligence from a business perspective.
1. How’s Business?
First, at the base of the triangle, you have to ask “How’s Business?” This layer really emphasizes “time over periods” of transactions. Traditionally, this area is termed “transactional reporting” and simply put, is giving the user their numerical tabulation of data at the end of a period. What would a business person define as “Best in Class” in this area? Give me my reports as near-time as possible for the period that I am looking at and be able to sub-category my different business lines, product lines, financial divisions, etc. Most of the data could be described as the data from “double-entry bookkeeping systems.” With today’s ERP-style systems, this kind of information is fairly accessible as long as you are dependent on internal data only. Some data feeds may be external feeds or internal non-structured data sources that still have the same timeframe. Examples would include “customer satisfaction” data, quality data, and other operational inputs.
For example:
“What is the revenue over the last quarter?”
“How many X was sold in the last week?”
“What is the profit for the month?”
2. Why?
The next layer up the triangle is simply put “Why?” Why did the business’ Eastern Region have a 5% increase in sales year over year? Why did we miss our numbers in the last week of the quarter? Why did our market share grow in our mature product line in the last 2 quarters?
3. What If?
The last layer of the triangle is “What If?” If one can receive their business results from “How’s Business” and then is able to determine “Why” the business performed in this fashion, the “What If?” pinnacle of the triangle will provide a roadmap for the decision-maker to model their potential decisions that they have in mind.
For example, if one knows their financial performance and also sees where the business over-achieved and where it under-achieved, it is able to move resources of the business (management & money) to the area of need. Whether the strategy is to provide more or less resource is up to the person involved. The numbers themselves are not going to make the decision.
So, then is “Business Intelligence” an oversold phrase in the world of Information Technology? A “Qualified Yes” and a “Qualified No.” The challenge today is that the tools actually work and work well if the approach taken is right. At the same time, recent publications and noted experts all agree that the road to Business Intelligence is cluttered with a lot of failed attempts, a lot of capital spend that isn’t going to be realized from an investment viewpoint, and a lot of disenfranchised users.
I’ll write about this dilemma in my next blog.
The VLOOKUP Hookup
December 22, 2009
Companies invest large amounts of money, time, and other resources acquiring and implementing reporting and analysis software. I’ve seen organizations invest hundreds of thousands of dollars in projects and fail to realize a decent return on their investments. The point of this series of posts is to educate you about the reporting and analysis capabilities of a tool your organization probably already owns: Microsoft Excel.
In this series of posts, I will discuss a number of these capabilities and will give some concrete examples of how to utilize them.
I will be using Excel 2007 for these examples. Much of this functionality is also available in Excel 2005, it’s just not as easy to use and does not have some of the more advanced features.
Getting the Data
The first step in any effort is to get some data into Excel. We’ll start out using a simple static list. You probably already use lists like this regularly. If you don’t utilize Excel in this way today, think of the reports that you work with from the various systems that you run your organization with. In most cases, you could probably either copy andhttp://thefuturevalueofbusiness.com/wp-admin/post.php?action=edit&post=745&message=6 paste or import these reports into Excel to get some data to work with.
In future posts, we’ll cover a much more powerful method of acquiring data by connecting to external databases from within Excel. For now though, we’ll stick with this simple example.
I’ll be working with the sample database that comes with Microsoft’s SQL Server database software. This sample database contains information about a fictitious company called Adventure Works. Below, you can see that I have an extract of order information that I’ve pasted into Excel.
This is the most common manner in which people utilize Excel for reporting purposes: simple lists of data pasted or imported from other sources. In most situations, this data comes from existing reports or queries. My example above is a very simple query…you can see that we don’t even have names or descriptions for most of the data. For example, Column F is showing us the Product ID instead of the Product Name.
The best way to solve this problem is to have the author of the report or query modify it to include the Product Name in addition to the Product ID. Let’s imagine that this is not a realistic option though; there is a way that we can solve this problem using an extremely powerful Excel formula called VLOOKUP.
Using VLOOKUP
To expand on our situation above, let’s imagine that I have a second worksheet in my Excel workbook. I have an image of this second sheet below.
The Product ID in column A corresponds to the Product ID in column F on the Orders List. We are going to use VLOOKUP to take the Product ID in the orders list and lookup the Product Name in the product list.
To make the formulas a little more understandable, I am going to rename the Sheet with the order list “Orders” and I am going to rename the Sheet with the products list “Products”.
On the “Orders” sheet, let’s insert a column immediately to the right of the Product ID. We’ll label it “Product Desc” in Row 1. In Row 2, we’ll enter the VLOOKUP formula:
| =VLOOKUP(F2,Products!A:B,2,FALSE) |
The parameters (the information between the parentheses) tell Excel how to lookup the value we want:
- The first parameter, “F2”, tells Excel what value we are performing the lookup for. In this case, we are looking up the Product ID.
- The second parameter, “Products!A:B”, tells Excel where to go to do the lookup. Here I selected the first 2 entire columns on the “Products” sheet.
- The third parameter, “2”, tells Excel to bring back the data in column 2 from the lookup list when it finds a match for the value from cell F2. I know that’s a confusing sentence at best, but it will make sense in a moment.
- The last parameter, “FALSE”, tells Excel that we want it to return only an exact match for the value we are looking for. If Excel cannot find an exact match for the Product ID, it will return an error indicator.
The Results
Now, let’s take a look at the results of our formula. The screenshot below shows what I have now.
This screenshot shows a few rows from the “Products” sheet:
Hopefully you can see how VLOOKUP works now. Excel took the value in F2 in the “Orders” sheet, 776. It went to the first column of the range we gave it; that range was Columns A and B of the “Products” sheet. It scanned through that range until it found a match for 776. It then took the value in the 2nd column of the range, column B, in the same row and returned the value in that cell (“Mountain-100 Black, 42”).
One thing I didn’t make clear before that I want to point out now. VLOOKUP is always going to look in the first column of the lookup range for the matching value. In our example, the lookup range was columns A and B of the “Products” sheet, so Excel looked in column A for the matching value. There is no way to tell the formula to look anywhere other than the first column; so you either need to cut and paste the columns to get the right one first, or just change the reference so the lookup column is first.
To complete our list, we can just fill down the VLOOKUP formula in column G to the bottom of our orders list. Now we can analyze our order data with actual Product Names instead of just Product IDs.
Summary
VLOOKUP is useful in many other situations…you can probably imagine a few other uses for it yourself. It is very handy to use it as we did in this example though. Even though we could have accomplished the same goal by having someone in IT modify the query or report, now you can be a little more self sufficient with your reporting needs.
In my next post, I’ll cover a few more features like filtering and date manipulation. Ultimately, we’ll move on to Pivot Tables and External Queries which provide very powerful mechanisms for analyzing data and can compete with some features offered in expensive reporting software.
Sprechen sie…IT?
December 17, 2009
Tonight I was at a local grocer (that’s headquartered in Michigan). I was at the “No Limit Self-checkout” at around 9:45 PM. (I have a BUNCH of kids so I shop after bedtime…) Anyway…while I was there, they began to shut down ALL of the checkout lines except for the 12 items or less lanes. They explained to those in line that it was time for “change over” and that the lanes would be open just as soon as they were finished. Um…huh?? It’s 9:45PM. I want to go home. I don’t care why my line just got shut down…what are my other options? “Change Over” means nothing to me. I just want to check out.
The whole experience reminded me of what it’s like to be in the operational side of the business requesting services from IT. Think about the SNL sketch with Nick Burns the Help Desk guy. He speaks a language that his customers don’t understand and then treats them like they are stupid for not getting it. The customers eyes glaze over thinking, “so…um…ok… how will you fix my problem?”
Is your IT department speaking your language? If not, then how will they ever help you to solve your business problems? Chances are they don’t understand you either. Bridging the gap takes a skilled interpreter who can understand both. Your best BI architects do this and don’t try to explain ETL, Dimensional Models or ODS to you…cuz really…do you care how it works if it answers your questions and helps to make sense of your data.
I Should Have Called LÛCRUM – Episode 2
December 16, 2009
Well episode 1 was so much fun that I decided to create another episode of “I Should Have Called LÛCRUM” In this episode we explore the problems that manually created spread sheets can create for organizations through the magic of animation. Of course if you want to read more about the topic, you can read this post by LÛCRUM managing partner Jody Detzel. I hope you enjoy the video, and that it tells you a little more about what we do at LÛCRUM.
If your organization is using manually created spreadsheets to manage important company data or if you are having trouble getting accurate, actionable, complete and timely information, you should contact LÛCRUM. We specialize in helping our Clients to maximize the value of their data, and we would be delighted to help you.
I Should Have Called LÛCRUM
December 16, 2009
Last night my brother in law introduced me to a really cool site called xtranormal.com where you can very easily make animated videos – for free. I wanted to test it out, and thought “why not have fun with some of the problems we solve at LÛCRUM?” So I stayed up past my bedtime and played. The end result – Episode 1 of “I should have called LÛCRUM.” Not sure if there will be an episode 2.
Does this seem like a familiar scenario? Do you ever have difficulty getting the important information you need in time to meet your needs? Do you find yourself having to request and schedule reports, which take days or even weeks to actually arrive? Do you wish that you could immediately generate the information you need from your data without the “help” of others? If so, you should think about contacting LÛCRUM. In the time it takes to get those reports the current way, we could build you a data mart with dashboards, alerts, reports, and more – enabling you to make fact based decisions about the future of your business. At LÛCRUM, we help customers to maximize the value of their data – and sometimes we even make silly cartoons to show people how we do it.
We Do BI Faster… Part 2
December 8, 2009
It’s been my experience that BI projects fail when the technical team fails to understand the urgency that exists with their customers. Failure also comes in the form of not delivering what was needed to answer the business questions or delivering in a format that doesn’t fit into the day-to-day way that the Customer does his/her job.
My son’s day-to-day life is impacted by data points. One of my sons has Type 1 Diabetes. It’s a pain to manage. There are numbers EVERY day!!! Right now he is tied to a Continuous Glucose Sensor and an insulin pump. (When I say tied…I’m not kidding…it’s really attached…by a 23” tube…24×7.) We receive data points every 5 minutes. On his pump, I can see a display that tells me what his BG is right now. It allows me to make decisions right now. What it does not tell me is how past decisions have impacted the current BG. It doesn’t tell me how actions I take now will impact future BG. I use my “gut” to determine what to do when his BG is high and requires insulin or low and requires some sugar. There are some pre-programmed “rules” that help me to make my decisions (e.g. it takes 1 unit of insulin to drop his BG 90 “points”). Displaying these data points on my son’s pump is great if he’s the only one making decisions. However, his dad, me, our doctor, my son’s teachers…all of us need to see the data to make the right decisions. More importantly, we need to see the historical data to understand the impact of past decisions. A tool does exist from his pump company that allows me to upload the data and view pretty graphs in PDF reports. But the data keeps changing…every 5 minutes…Isn’t the same true in business?
At a grocer…a shopper decides to buy Crest toothpaste and not Colgate (no offense to Colgate…but I’m in a P&G town). The shopper does this despite being sent oodles of coupons for Colgate. What does that data point tell me? Should I stop sending Colgate coupons to that shopper? If I start sending Crest coupons can I guarantee that the shopper will come back the next time they need Crest? Where will that decision get made? Where should the BI tool be?
At a utility company…right now, I get my bill at the end of the month and I pay it. I’ve set my thermostat back to 67 in the Winter and 74 in the Summer. I’ve seen a decrease in my bill over the last 12 months since I started doing this. But last night was COLD!!! I was so cold that I couldn’t sleep. What’s the impact of turning up my thermostat to 72 while I sleep? If the utility company decides to build me a BI app that sits on my PC and prints for me really pretty graphs, it does me no good when I’m lying in bed and want to make a decision on if it’s worth it to turn up the heat.
For a sales guy/gal…I enter all of my contact info in Salesforce.com. I have to send out my forecast to my boss, typically in Excel. Should the IT team give me Business Objects for me to see my past customer sales? What about Cognos?
When I design BI solutions, I try to make sure that the solution is delivered in a tool that I need and that makes sense to me. I don’t want my customers to require training just to look at their data. The tool should be easy for me, cuz analyzing the data is HARD!!! What are you giving your customers for data analysis? Is it a tool that’s easy for you to build? Or easy for them to see the data in the format that they need?
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