Time is money, are you using real time data wisely?


busby-berkley-snowflakeTime is money, are you using real time data wisely?

Are you feeling up to date, in sync with the times? Both individuals and organizations find it challenging to fully leverage technology and integrate the sea of real time data that surrounds us.

This past week, I attended a local Internet of Things (IOT) conference, only to be reminded how we’ve been kidding ourselves with respect to the human machine dynamic.  When Factiva reported in 2013, that the previous two years had created 90% of the world’s data, it also reflected the impact of visibly faster technology and emergent opportunities for those capable of wrangling more data. Similarly, the exchange of information machine to machine and the responses that  IOT and the Industrial IOT (IIOT)  make possible  will soon surpass all human generated information.

Information has never proven more valuable to competitive advantage than now. The key istimely mastery and/or the ability to separate meaningful data from noise. Possessing  Real time capabilities merely up the ante. 

Suddenly,  all of the conversations about the real, meaningful  difference of  Big Data clicked. The challenges I knew and had experienced working with volumes of data is not something everyone experiences, and itswhy I missed the significance of the message. Language can do thar. Today’s – competitive advantage relies on learning synchronicity between people, and also between people and machine. 

Yep, syncing as in coincident timing. Timing reactions require coordination on the order of the elaborate dance numbers Busby Berkley made famous will separate winners and losers. 

People learning rates

People are interesting precisely because we begave inconsistently.  These same traits  make us effective competitors and efficient information processors.  We focus and only selectively pay attention, which means we consciously ignore most information in our midst. Unlike machines, we are slow few of us possess capabilities to process high volumes of complex data at high speeds. 

How people integrate data remains a bit mysterious. Part conscious and part unconscious, each of our senses connect to different parts of our brain and the information isn’t always processes with consistency. 

Humans create their own reality. For example, our eyes see things differently than what we describe and not because of language problems. Automatic transformations correct using depth perception and pre existing knowledge to flip the image, while sound tends to retain its integrity. 

Similarly, information new to us versus updates also  process differently; and yet, endless streaming information can overload and confuse us. Today’s powerful computers don’t experience anxiety or fatigue though they may overheat or fail.

The natural limits of time and energy challenge people to choose their focal point, the when and how we respond to data and perceive opportunities. For example, few of our waking moments and activities require conscious thought. Our body takes care of itself and manages to coordinate processing of external sensory information with internal demands. This syncing makes possible mindless activities like breathing, eating, walking and resting.

Consciously, our ability to track our time and energy is spotty.  Still, unstructured/unplanned  moments, especially those that demand little of us mentally remain ideal, while society frowns on the same characteristics when referred to as idleness. The contradiction reflects the value we attach to purpose or meaningful use of effort over time that results in tangible output.

Artists create, builders build, analysts compute and chefs cook for example by adding their effort over time. They make something or transform original materials/inputs.

The notion of efficiency also boosts the value of effort by measuring the effort relative to the output produced over time. Likewise effectiveness, measures the additional value produced relative to the starting inputs. Together, these measures translate into meaningful consistent tokens of value that permit ready exchange, or wealth accumulation.

In this context, the accumulated tokens of value allow us to buy ourselves time to take vacation or be idle as easily as buy us time to learn, create and do more.

Machine learning capabilities

This also explains precisely why technology advances prove so valuable, as they have progressively reduced the amount of time and effort necessary to perform a task. As a result, we DO spend less time on common, routine activities than was previously necessary.  Internal plumbing saves us time we spent fetching water, Wheeled transportation saves us time we spent walking, and similar telecommunications vastly removes the break in communications that once necessitated considerable effort  to cross the distance by one if not both parties, or the enlistment of a proxy to carry the message on their behalf. The human messengers were replaced first and written notes/letters, and then the telegraph dramatically reduced the time between message sending and receipt.  Now text messaging and email is displacing telephone and video conferences.

This evolution in communication methods affects the people’s interaction styles but also their information needs and expectations.

Real time communications savings and benefits are not equally distributed and so inefficiencies persist.  On one hand they present a new opportunity to replace planning and documentation of activities essential when communications were primarily indirect and time lagged. Built-in tracking, boosted transmission capabilities and data recording can both fill in and increase information gaps.  Problems associated with incomplete, unsupported or even delayed information that always created risk persists, but for new reasons.  The flood of data from more sources both people and machine generated pose new challenges to separate out meaning, predict and or respond in timely, relevant manner.

Another opportunity real time capabilities offer are all around us, assisted by the information collected and transmitted from multiple data sensors scattered across the environment.  In fact, it’s how airplanes fly automatically, rail road cars notify switches of their location to either open or close crossing gates, motion sensors in buildings adjust level of lighting and air temperatures, and Tsunami warning systems saves lives.

In general, people are wired to process information in real time. We use an array of body language cues to understand how to  manage the situation and engage with the people in our midst, and yet we do it unconsciously.  Planning on paper is a far more conscious activity, time consuming and energy draining.  Worse, planning often stops us from activating the unconscious real time processing.  We follow the plan, rather than notice the inconsistency or the more obvious information we may or may not have incorporated.  Best example, is the step by step navigation systems that we know are less than perfect.  Have you found yourself using the navigation only to discover it’s asking you to turn onto a one way street going the wrong way? Or your location is “ahead” of the GPS signal and so you miss a turn?

My point is this.  Too many built in business procedures and processes were designed in the absence of real time information.  In order to be more relevant, more valuable people will need to revisit their processes with respect to learning, creating and doing.  It will require a shift in attitude, refocus of needs and adjustment in expectations.  It’s a shift from a look back and partner with machines that look forward, use more data sources and get to analysis faster.

If you have any examples of success or any challenges I’d love to hear about them.

[i] Mike Hogan, “big Data of your Own,” August 2013, www.factiva.com

John Adams, “Be careful or Big Data could Bury your Bank,” January 25, 2013 http://www.factiva.com

When Technology doesn’t work


If like me, you have a fairly stable morning routine. The usual sequence of activities from the time you step out of bed until you step out the door, or in my case step into your home office. Each takes different amounts of time but nothing is too complicated that you need to do any active thinking. The result is your mind is free to wander in any direction, alight on any object or thought that it finds interesting.

Technology likely plays a supporting role, whether its the alarm that goes off to wake you, make your coffee, or the phone that connects you to the world through email or news sites. The support role isn’t supposed to hijack but rather simplify, and reduce unnecessary steps.

For example, I used to have an all in one grinder-coffeemaker. I merely added the beans and the water, and set the timer. Its automation saved me a little effort.  It spared me a few steps: hitting the button to grind the coffee ,empty the grounds into the coffee filter, press start. (Remember either way I added the water, and the beans.) It saved me maybe a minute or two, when it worked.

The key to support? It’s got to be reliable. In this case, more elaborate automation increased chances of breakdown as well as mechanisms that needed cleaning. When it didn’t work, the few minutes I saved daily, and some were taken back.

Worse I couldn’t anticipate when the breakdown would occur, and inevitably the disruption to the expected regularity of my routine proved intolerable. So, I changed back.

I’m at that point with MS Word and close to the edge with everything about Microsoft’s operating environment. I’ve not been an Apple user, until the iphone was part of an irresistibly good offer years ago.

Today, I am using an older version of an open source program called OpenOffice. Oracle bought them, but I never had to pay Oracle. The application sits on my desktop, it isn’t linked to the cloud and it doesn’t pop up with assistance when my fat, less accurate fingers hit the wrong keys. BEST of all it doesn’t stop my train of thought as I’m typing by doing me the favor of saving. Or if it does it still doesn’t stop me from continuing typing.

This past week I was very busily writing a rather complex article. Because I’m not that organized, I like to synthesize my ideas in real time using the blank page in front of me surrounded by lots of other open documents, and websites. After the first draft was out of my head , I saved it. Sounds simple enough, right? Saving, now becomes a more complicated choice than simply titling it and placing it in a folder for future retrieval. I had too many choices, partially my own fault—I did admit to disorganization right?

I have an account on DropBox that one of my client prefers I use because we share lots of big documents and images, and it’s just easier for version control.

Microsoft in its competitive wisdom, now offers its own cloud and that too becomes an open office option…presuming I remember the password or have the OS remember it for me, on every device I use.

Lest I forget there are the different drives on my computer, I could save to a portable thumb drive device? Or the hard drive on the computer or the home network that allows me to save to my home office desktop.

Of course the different options come with different advantages. At the moment none of them were relevant, as I was just in draft mode and operating under a self-imposed deadline to preserve my sanity.

So I decided save to the cloud, its safer and I won’t have to worry about what drive it’s on?

That turned out to be a bad move.

Remember the coffeemaker story and the trade-off on time savings that went upside down on me? The same happened with this project.

In full disclosure, the topic which had owned me for a few weeks was the notion of readiness and positioning with respect to technology advantages.

I don’t know of a single writer who doesn’t find themselves pausing every now and then to gather their thoughts before continuing to organize the words. I’m older and still use long hand and then transcribe my own scribbles, which means there are lots of fits and starts due to difficulty deciphering my own handwriting. Then again, I may also decide to put my typing skills to work as I’m doing now, looking at the screen while trying to organize my thoughts.

Again, it’s the natural fits and starts in the writing process that Microsoft’s engineers seeking to support the task, or simplify and anticipate got completely wrong.

Ok, I just saw open office do the same thing. It tried to anticipate what I wanted to type. Perhaps yo too have experienced these new features. I begin to spell a word only to have it suddenly appear in its full form highlighted in blue. I have no idea how to do something with this information. Am I supposed to use it to avoid spelling errors? Or (yep the system just corrected the o and capitalizing it for me) ignore it. If I’ve managed to describe the problem well at all you too should feel a bit irritated and frustrated, or at least empathize with mine.

You see I really want to focus on my own thoughts and getting them out. I don’t want more distractions or suggestions popping up at me. It’s why I still prefer long hand and the absence of automation. Sure I can save myself some time by typing my drafts directly into the computer, they may even be more readable. But I can’t afford the distraction or disruptions…even if as I just noticed the suggested words appear relevant.

Again, I’m not looking for a collaborator when I type. I’m merely trying to express myself. Did you get that? I want to express MY thoughts, MY ideas, MY word choices.

When I need an alternative I am happy to take the extra time to open up the thesaurus, or do a google Define to get other ideas. I want my dumb typewriter back, PLEASE.

WHEN I’m ready for your assistance, I’ll ask.

I Business I keep hearing the phrase to best to go ahead and ask to be forgiven later then to wait for permission.

The biggest offense Microsoft made, was having a ridiculous inefficiency set of tools. Rather than allowing me to type and save the document in the background, it froze the screen and swapped the cursor for its spinning wheel to tell me to hold on. So after fighting with this for a few days, I re-saved the document to my hard drive. Guess what it didn’t stop the problem. Worse the document would literally jump, when it was finished. The contents on the screen would shift sometimes a few pages.

How exactly they do that I don’t want to know, that it happens and that I can’t stop it, well that’s why I’m saying bye bye.

I have been typing continuously for a good hour and other than the few annoying word suggestions and auto grammar fixes, I’ve not been stopped once by a spinning cursor.

Thank you Oracle and Open Office. I’m grateful

Now I’m going to paste and post to word press. If something surprises me over there, I will let you know.

[PS, wordpress took the pasted text beautifully. Identified my spelling mistakes ad in a few minutes I was at the bottom of this input, ready  to post. SEE Technology can be well designed for the user.]

Goldilocks can help you face your challenges, will you let her?


photo (1)What’s the story? Today’s headlines continue to be filled with a persistent recurring behavior symptomatic of leadership failures.  Most of us are familiar with storybook tales and parables that remind us of particular lessons. No one wants to be The boy who cried wolf. Cinderella teaches us not to give up hope, and I’m sure you have an equally simple take away for the story of Goldilocks, aka the story of the three bears.

Have you considered using simple stories, and in particular the tale of Goldilocks,  to lead differently? 

I’m actually heartened by Mary T. Barra, because I think she gets this lesson. Today’s New York Times report on the ignition switch investigation suggests that unlike her predecessors, she pursued a different approach. This stands in sharp contrast to last week’s New York Times story Business school Disrupted where Jerry Useem offers a glimpse into Harvard Business school‘s decision-making around digital, online education.

How IS it possible that one of the most premier academic institutions in the world–with articulate thought leaders on key business issues related to Strategy, Disruption and Innovation– continue to cling to their old ways, unable to effectively transform themselves?  I’m not interested in their offering per se.  Their decision options resemble those of Fortune 500 business leaders when surveyed.  They find it difficult to pursue a path toward transformation, though failing to try, often cripples their organization’s ability to sustain value and/or their competitive advantage.

I see the decision dilemma as actually two stories. One, the tale of a lizard, or chameleon, and the second the universal tale of Goldilocks.

Steve Jobs sittingSteve Jobs, from what I’ve read, understood how to lead like a chameleon. By association the story of Apple throughout its tumultuous history can easily be interpreted as a lizard’s tale. Academics, however like many cogent, intelligent thought leaders resemble Goldilocks. Their training, the PhD process itself promotes competition, neither intentional antagonism or collaboration. Individual researchers training emphasizes objectivity, perhaps fearlessness, definitely curiosity. Still academics produce results relative to existing thought using an established process.  These predictable outcomes rarely achieve or encourage breakthroughs in understanding.  Occasionally, this process model when most forcefully applied manages to create disruption in existing domains. Leaders in these established environments rely on orderliness, offsite planning and reflective discourse. Failure to challenge their process makes them vulnerable to outside breaches that create havoc at multiple levels within their hallowed institutions and the underlying operating models their continued existence depends. Basic physics teaches that a body at rest stays at rest.  This lesson exemplifies the impact of complacency and comfort, and the necessity to avoid them at ALL costs.

Goldilocks isn’t a morality tale

Adaptation came easily for Steve Jobs , though in many ways he also behaved like a Goldilocks. Constantly moving and sampling new things until he seized on an idea that resonated with his core principles—simplicity , quality and durability, as in built-to-last. His passion for these principles when wrapped around an idea supported peer learning that enabled development of a powerful culture that made his ideas tangible. The Steve Jobs in Walter Isaacson’s book both hungered for new ideas, and was steadfast in his resilience. These qualities resemble chameleons, making it possible to adapt quickly to subtle changes happening in their environment. These thick-skinned qualities made him  tough, capable of weathering transitions and nurturing— both necessary to support transformation and sufficient to support sustainability.   The verdict remains out for Apple itself.

Goldilocks adapts too.  She makes do with what she finds but she herself never undergoes any transition. She changes her environment, it doesn’t change her. Her existence also depends on encounters with normally distributed choices. The variance around the norm makes her choices rational and predictable.  This may explain why her innocence makes us lose sight of the disturbances she leaves behind.

I don’t know what personality profile Goldilocks fits exactly. It’s why I believe today’s popular assessment tools used by many companies in their hiring practices to find cultural fit ultimately don’t matter.  How exactly do profiles help an organization survive? Leaders who worry about identifying Goldilocks may be missing what I find to be the more critical perspective in the story.

What about the story of Goldilocks resonates and endures? (see post two)

Personally, I think on some level, each of us behaves like Goldilocks.  We are often unaware of how our choices create a wake or disturb the system for those who follow. We prefer to limit the number of choices. Fewer options allow us to focus and ultimately find the points of contrast most relevant, or good enough for us now. Once we make the choice, we can keep going,  gain additional experience and be ready for the next opportunity we meet.

Goldilocks always finds a suitable, generally satisfying choice after sampling all of them. What would she do in a complex situation where the choices exceed her ability to sample? The absent inhabitants of her found environment don’t stop her from seizing the opportunity or indulging her curiosity.  Why doesn’t she hesitate or allow uncertainty to get in her way? When the Bears do return, Goldilocks flees and the narrative ends.

Of course, our experiences allow us to imagine the internal voices that often stop us from pursuing what we recognize could create difficulties for others.  A verbal exchange of assumptions often proves surprising and reveals greater diversity in perspective than any of us imagine. These behaviors Leaders need to cultivate and question when presented with Goldilocks canned results.

Ask Mary T. Barra if the risks were worth the time her predecessors saved shutting down alternative thoughts, questions left unspoken and open issues under examined? Does complacency in your process overrule critical thinking and exchange among peers of diverse perspectives? Should PhDs be reviewed only by the experts in their own domain? What are the principles that every report and process should adhere?

The challenge for management and leadership isn’t to isolate Goldilocks, but to encourage and nurture transformations and mindfulness .

Getting to the future


Image

Everyone thinks about the future. The dreams of the Pilgrims  arriving in Massachusetts are no different from our individual aspirations for new possibilities and changing situations and circumstance. What new freedoms will be there,what will people be permitted to  think, wear, eat, live or DO?

My interests and passions to do what I can now to make things betters isn’t unusual.  The company I keep all agree in increasing possibilities and making changes that benefit more people, not just me and my family.  In the season of thanks giving, I’ve noticed the launch of a series of web sites  matching wishful doers with need serving organizations, and in the process create social impact.  The process used by these sites mimics many of the matching sites, whether its capital rich hedge funds seeking people needing to preserve and grow their capital, entrepreneurs on Kickstarter seeking funds to build their business or start their social impact match service. The technology itself minimizes the value of my personal network by making it possible for me to cast a wider net and build relationships that are not based on naturally limiting, real world contexts that form my identity, e.g. where I grew up or where I went to school, or my cultural, ethnic or religious ties. The stumble upon place or the sophisticated search to match my interests still rely upon individuals’ ability to influence others of the information’s value.  The  technology may be new but these resource matching problems are part of an ongoing cycle that doesn’t change, and the match solutions operate within the same system that create the resource gaps.

 

Where’s the change?

Snow appearing on the ground signals another recurring, predictable change, as does the falling price of the iPhone.  Outwardly, we show signs of adapting to this news.  Where you stand in the continuum of variation in response changes your understanding of the  most predictable of change’s magnitude.  It also explains why not everyone seeks to incorporate or welcome the change in their life.

When the obvious answer satisfies us, we ignore or suppress the possibilities that the change may be worth investigation. Changing temperatures or icy, snowy conditions difficult to miss and though we adapt and incorporate the obvious, we all adapt a little differently.  Our experience colors our understanding and response to the change.  Seekers go one step further.  They consider the choices others make and wonder if that too may be worthwhile for themselves.  They are curious about paths that open further possibilities or improve their status, conditions etc.

Seekers both experience and confirm their responses to transition moments by first learning and listening to others before sharing their own perceptions. Going beyond their  response to the change , they are conscious of the potential ripple effects.  Some look harder to find the likely path, similarly they may try to get out front and position themselves to catch the inevitable fall of the lined up dominoes. They don’t merely watch the event unfold, they try to connect what they see to a range of possible experiences and look for possible variations that happen beyond their immediate vicinity, situation or context.

Reporters,  when covering breaking news for example, share or retell what others experience in moments of change.  Often they are  hip or shoulder deep in the same experience as it unfolds, yet, they leverage and try to take advantage of their experience.  They try to reposition themselves for what will come next.  There’s an art to reporting.  It requires  piecing many different perspectives together to fill in what the participants, experts or contributors immersed in the experience overlook, misunderstand and maybe fail to identify.  Reporters are a special breed.  Their descriptive reporting shortens the distance between their audience’s detached experience and the actions and activity of their present surroundings.  Using their own senses to connect the meaning of other’s experiences they help their audience acquire a more complete, multifaceted view.

Multidimensional matters

Strategists and good consultants do this too. They leverage their experience while keeping one eye on the future.  They also help those stuck in the present to connect, hope and inspire an alternative set of prospects. Their job encourages explorations, cuts the distance between present circumstances, progress and a rosy future  for their client’s clients.  The lookout on the Mayflower merely let others know what was in sight before those on board could see it. No one would call these lookouts strategists, or leaders.  Lookouts can’t inspire people to acclimate, though they do warn them of what’s coming. Inspiration comes from a vision that transcends our fears and our expectations, not an easy task.

Today technology changes and innovations come at all of us faster than our ability to fully digest the last ones. Some of the effects cross connect, meaning that adoption of one makes it impossible to ignore the next.  Speed at which the connections happen make it simpler to stand by  and avoid participating.
No one is every fully ready for the future, but strategists can help in those moments of relentless change. their skills and experience naturally connect the dots, explore possibilities and overcome natural resistance.

Knowing your desires or dreaming about an idyllic world won’t get you to the future, though it is an interesting way to start. Regardless of what comfort level and satisfaction you feel with the changes as they occur in your midst, you need to take a wider view.  Challenge your experiences, raise your sensory awareness levels to uncover more possibilities.  Changing your perspective, point of view or the dimension in which you’ve come at the problem  guarantees your advantage as the future unfolds, and should increase the power of your risk assessment by virtue of your  wider stance.

 

Finding hidden treasure in plain sight.


Prospecting, mining both are familiars metaphors describing the activities associated with finding and developing  resource rich opportunities.  Rarely  in plain sight for any passerby  to scoop up and gain advantage, prospecting for Gold, other metals or precious gems like diamonds require active and often deep digging capabilities.

Like precious metals or gems, the secret to good business is creating precious assets of intrinsic value. The attributes to value when known for durability and uniqueness, such as a brand, retain  value over time,  predictably generate  cash flow and  become  difficult for competitors to acquire. But the uncertainty of today’s markets and the disruptive threat of new technologies can quickly erode the value of any asset and so growth is essential.  Whether your strategy calls for acquisition or organic growth, either way, the underlying development and prospecting costs need to be contained.

In stories and legends, merely having a treasure map and knowing where to dig doesn’t always lead to happy endings. Technology has certainly helped to mitigate the risks or advance probabilities of success.  Ground and water penetrating radar and detectors   discriminate ferrous and non-ferrous metals pinpoint the site to begin mining and improves the probabilities of a fruitful yield.  The challenges in any mining activity depend not on the power of the technology or in making the dig profitable. Today’s WSJ headline reads Gold hits $1,700.  Absent reliable, hidden treasure maps knowing where to look is an advantage. Returns depend on offsetting the difficulty and risks associated with its extraction and the quality or grade found. Forbes recently summed this up  USAGX’s Denbow: Gold-Mining Companies Face Challenges Finding New Supply.

Prospecting is a perennial challenge for any and every business, and managing the costs is the key to delivering returns.  The current market turmoil has done more than merely  increase investors uncertainty.  for the Risk averse, who have shied away from innovation  or the adventurous  business who has wisely taken pause, I suggest this is a great time to revisit your strategies.  Standing still can prove surprisingly  advantageous if in the process of cleaning house you discover  undervalued or even overlooked assets.  What value does an earlier project, research or failed product launch buried for any number of reasons offer? Lance and Scott Bettencourt of Strategyn write in Harvard Business Review in June 2011 Innovating on the cheap  a series of suggestions on how you can  leverage your existing assets, or rediscover value in surprising places.

Mining existing assets

I suggest a process that may take you a little further.  Consider Google’s Search business and the  underlying value of its algorithms and index.  Maintaining these assets is of critical importance but so too is the value of constant improvement.  Daily, new content and pages added to the internet require Google’s index continuous update.  Including  rich and diverse content such as images, video and sound  files on the internet challenges Google’s index  and algorithm update to accurately rank and deliver the results.  Realized innovations  continuously contribute  to Google’s financial performance and persistent high  market valuation. Even Google however has failures. Research,  experiences of both internal and external users generate additional  assets hidden in plain sight. Actively sharing and reflecting on the meaning of both successes and failures  allow new project teams ready access to key insights that otherwise would be left to lie fallow collecting dust.  If Google continues to draw value  or benefit from their latent assets, can you?

Identifying data or purpose

Frequently, environmental conditions change a variable’s significance.  Strategyn authors talk about unrealized value in products that may have been premature for the market,  experienced formidable technical difficulties or their launch prevented  by high manufacturing costs . Nothing stays constant anymore.  Consumers are always adapting  their preferences to changing circumstances and environmental conditions, and  business are equally forced to adapt.  A variable’s significance in your business model  in one moment may prove insignificant later. Persistently changing conditions is  why its’ important to frequently revisit your tactical plan and forecast models; and occasionally revisit your business model/strategy.

In 1984, Jesse Jackson was the first Black American to run for President.  I was an assistant statistician working for CBS News assigned  to use the exit poll and early returns to create prediction models to track trends in voters behavior. Race became a significant variable , where as before it had not been much of a determinant factor.  To increase accuracy, the forecast model needed to adjust to accommodate and recognize this historic precedent.  Likewise, when I joined Citibank in 1985, the business needed a P &L model for an innovative new offering in four test markets that linked savings and credit products in a relationship.  No one had looked at  interactive product performance before and the experience was a revelation.  The adaptation to existing analysis and risk management tools were instrumental contributors to the explosive growth of Citibank’s  credit card business. The original business proposition  failed to consider that the risk in a bundled loan or relationship,  product was not merely additive but interactive.  Early, controlled testing allowed them to go back to the drawing board armed with new insights and better understanding of the boundaries.

New data is rarely the culprit in a failure; but as things change,  more data enhances interpretation and  provides insights to re-imagine your business.  When you are the largest issuer of credit cards in the world,  accurate risk models  can be built using available billing histories.  In the 1990’s  mountains of itemized purchase or transaction level was left untouched, though its potential value was clear,  there were no clear benefits to justify the monumental costs of analysis. This was a treasure waiting to be mined.  Lacking urgency or absent a competitive threat also minimized the value of uncovering additional insights into consumer’s behavior.

Fast forward just under 25 years and the costs of time and computing resources to sort high volumes of transaction data is trivial and the returns from real-time processing lucrative. Mined transaction data triggers fraud alerts and delivers additional purchase suggestions based on comparison to  individual consumer history and that associated with cohorts, peers or “friends.”  Amazon  demonstrates   mastery in mining  typical  point of sale enhancements and redeems enormous  value from its dual function processing.

Opportunities and technology capable of mining even richer, more complex data eclipses  the significant value accrued from mining transactions.  The potential  value is driving the collection and complex tagging and sorting  of recorded customer service conversations, video capture of consumers shopping or following their daily routine at work or at home or all the places they go  online, key strokes, eye tracking, written comments.  It appears that there are very few domains of human experience and activity that remain a hold out from data capture.  The number of matching and sorting tools, the algorithms and systems also are getting simpler and more widely accessible.  Today, the speed and volume of results Google returns in a general search is far more advanced than credit card billing records I analyzed.  When was the last time you checked out Google’s  specialized search tools or the technology  coming out of their labs?

Returning Power to the People

The  insurmountable challenges are no longer in finding available data, or even privacy. Its ubiquity and increasing open source availability creates an even bigger challenge,  turning the vast amount of real-time data into a durable advantage.  Sunday’s New York Times (August 7, 2011) reported the unusual establishment in Chicago of a team of specialists tasked to help Chicago harness the technology and gamut of rich data the city collects.  Not alone in its efforts, Chicago is  farther ahead of other governments in creating easy interfaces that contribute to the public’s use of  its treasures of recorded and collected data.  Transparency adds more value by increasing the number of analyst reviewing the information, spotting trends or creating applications that simplify the lives of residents.  For example, the free Bus tracker application to let riders and plan their trip better.  It also holds his office more accountable  and increases the opportunity for activism by city residents.

There’s no doubt that power accrues to those who can imaginatively convert  data into both meaningful and doable innovation.

Finding treasures by leveraging connections

Today’s data mining technologies facilitates more than  accountability and activism.  Beyond knowledge of the type and place of available data,  a dedicated commitment to sift and mine the growing mountains of data requires critical analysis and matching skills.  Google does not stand alone in its specialized capabilities, numerous competitors offer diverse and specialized alternative search tools.  Numerous open source tools  make it easy to sort and manipulate any of the open data made available online.  As in prospecting, the tools and ability may narrow the competition and may advance the process. But those systems capable of exploiting and  enhancing anomalies  with supplementary information increase their chances  to uncover intrinsic value and thus create durable advantage .

Innovation results from capabilities to invent but can equally result from abstraction and adaptation.  Most of us at one time or another have come across a person who managed to re-purpose or refashion an object for an alternative use.   For example, the flower bed below.

Between Naps on the Porch eclectic landscape

Don’t merely consider looking at your existing data in its current form, but revisit it with newer analytic capabilities made possible from the numerous open source and proprietary data mining tools rich in functionality.  Consider supplementing your understanding of your assets from the perspective of your final judge, the consumer.  Also consider these sources:

  1. If images are worth a thousand words, spying consumers who refashion or use products for purposes beyond the manufacturer’s original conception can prove inspiring.
  2. Conversations and story are at the core of social media’s power.  The words of mouth, or stories  associated with transmitting and  promoting your business also motivate, inspire and compel employees to higher performance and deliver insights into how your product can be improved.  How often are you  using these to find products  in your inventory or services, that you may over overlooked or underestimated, but  are important to a group of consumers?
  3. Sales Data–Data mining tools can be used to find surprising blips, if you look beyond the blip.  Focus your analysis on the less understood context such as coincident placements or other variables that may not have made it into your database but none the less explain the anomaly.  They may very well be the source of an unrealized opportunity to refashion and reposition products that have trailed in sales.
  4. Last, perhaps you need to apply data mining tools  on your own data collections. The files of failures, tucked into drawers or file cabinets, the product research and or launches that never saw the light of day may call for another look.  After all, consumer preferences are always evolving, but so are your competitors, as well technology that may allow you to overcome previous cost barriers.  For example, oil and gold extraction from very difficult places is now proving economically viable as both these commodities benefit from high market prices.

More reason to harness data mining technologies to jump-start innovation in product marketing, reuse or refashion your assets to generate additional cash flow.

I’d love to hear of your experiences recapturing value in your business by any other routes as well as  suggestions for good tools or tips to improve your data mining or prospecting success.