The Indicee Blog

Defining Business Intelligence

by Geoff Devereux on December 16th, 2009

The Historical View circa 1958

The notion of intelligence is…  “the ability to apprehend the interrelationships of presented facts in such a way as to guide action towards a desired goal.”

- Hans Peter Luhn, IBM Journal, October 1958

The above quote is generally credited with coining the term Business Intelligence (B.I.).  Luhn’s vision was ambitious for his time and it’s still ambitious today.  How much of the following article do you find relevant right NOW with respect to your business reporting challenges?

The following are direct quotes from the IBM Journal Article, “A Business Intelligence System” published 1958 with my commentary added:

Information is now being generated and utilized at an ever-increasing rate because of the accelerated pace and scope of human activities and the steady rise in the average level of education. At the same time the growth of organizations and increased specialization and divisionalization have created new barriers to the flow of information. There is also a growing need for more prompt decisions at levels of responsibility far below those customary in the past. Undoubtedly the most formidable communications problem is the sheer bulk of information that has to be dealt with. In view of the present growth trends, automation appears to offer the most efficient methods for retrieval and dissemination of this information.

With respect to the volumes of data being created in 1958, I think we can safely say, you ain’t seen nothing yet.  Keep in mind that 1958 was really the primordial soup of computing and information management.  At that time, the Integrated Circuit had just been developed which would pave the way for development of computing as we know it today.  Looking back on IT in 1958, I’m thinking it consisted of a “series of tubes”.

Luhn continues:

Ideally, an automatic system is needed which can accept information in its original form, disseminate the data promptly to the proper places and furnish information on demand.

So, in 1958, the concept of “on-demand” is also christened.  A blog I follow called, Only Dead Fish, by Neil Perkins references the Greek term, Kairos, recently when discussing the importance of context.  Kairos refers to, “the right or opportune moment” or “the supreme moment”.  I think this is the best way to think about the basic need/want underpinning the concept of on-demand.  I think this is how Luhn was thinking about it too:

One of the most crucial problems in communication is that of channeling a given item of information to those who need to know it. Present methods of accomplishing this are inadequate and the general practice is to disseminate information rather broadly to be on the safe side. Since this method tends to swamp the recipients with paper, the probability of not communicating at all becomes great.

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Wrapping Sage Summit in Atlanta

by Craig Todd on November 13th, 2009

Faster reporting for frustrated spreadsheet users. That was the message on the wall of our booth at Sage Summit in Atlanta this week. People would stop, stare and then tell us just exactly how frustrated they were. One woman proudly waved her arm in the air, practically jumping up and down and hollering, “That’s me! That’s me!”

demoatboothThe story was the same, time and again, regardless of location, job function or technology involved: people everywhere are wasting hours, days, weeks and even months cutting and pasting information from their applications into spreadsheets in order to analyze their businesses. Why are they doing this? Because they don’t have any other solution that is easy to use and cost effective to implement.

  • The woman waving her arm in the air runs Sales Operations. Their accounting system is not integrated to their text-file-spouting, antiquated MRP system and their forecasting application is home-grown. The result is that they manually move data around into Access databases and worst of all, cut and paste into a 64MB spreadsheet that cannot be shared with the people who need it because of its size. She has already calculated the time spent on manually mashing this data is over 50 person-days per year!
  • Manufacturer of RV’s who sells through a dealer network.  They have over 10 years of sales transactions by dealers and VIN number stored in Excel files and a separate application that tracks warranty information.  They recently implemented MAS so now they need to create reports from 3 separate systems and want to give their dealers access to reports.
  • One IT Manager receives a daily stream of EDI information from distributors about sales. This information is processed as CSV and then imported into custom tables in their accounting system. On top of this, he has written over 120 Crystal Reports files that are scheduled and emailed to support requests for information from their 50+ sales reps in the field. The reps are compensated both on their sales and sales from the distributors. He cannot get enough reports built fast enough to satisfy their requirements, as the information requests change almost daily.
  • A women from a Legal aid society said they receive hundreds of invoices every day from legal aid lawyers.  To figure out how to best spend a limited legal aid budget, she and her boss are spending hours each week
    READ MORE…

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Living life in the belly of the beast

by Craig Todd on November 11th, 2009
Living life in the belly of the beast
This is my 10th year of attending Sage conferences and I’ve yet to be disappointed in the content, the venue and the people involved.On occasion, they can even arrange for the excitement of a tropical storm to pass our way and lend a little credibility to the overall agenda.
Last night, we were treated to a visit to the Georgia Aquarium, the world’s largest and most engaging aquarium, accoridng to their website. What interested me most were the promises of the presence of the only whale sharks in captivity outside of Asia and the only 2 Manta rays in captivity. I was not disappointed.
The evening started in “the belly of the beast”, the Atlanta Marriot Marquis hotel. Certinaly no “beast” in the traditional sense, but a feeling of being Jonah inside the whale when one considers the interior architecture of the building and its surreal, ribcage-like appearance. I wonder if architect John Portman was perhaps a fan of HR Giger’s alien imaginings when he created the building.
From there, we were treated to the driving rains and howling winds of Tropical Storm Ida, recently blown in off the coast from her brief reign as Hurricane Ida. The 10 foot walk from cover to the bus drenched us to the bone, as though tossed through the blowhole of the whale.
Entering the Georgia Aquarium is like being transported fathoms beneath the waves. The massive glass viewing window dwarfs us landlubbers and we are awestruck by the sheer beauty of the underwater realm we are so privileged to witness. Sea creatures of all shapes and sizes drift by, apparently in slow motion, unaware of or unimpressed by our presence. In short course, out of the darkness appears the massive shape of a whale shark, flying towards the glass. A giant Manta ray appears beneath, flying low to the ground, massive mouth agape and moving softly back into the shadows.
Every turn of a corner in the aquarium held new treasures and experiences, more fantastic food and drink and great memories to be made. It seemed fitting somehow to end the evening in the company of pirates, considering we had survived a visit to the depths of Davy Jones’ Locker and returned unscathed.
So what does this have to do with reporting and analysis? Nothing. I suppose I could have made some bizarre leap to try to imagine someone at Sage using a spreadsheet to calculate attendance and food and and … never mind. That would have been a little gratuitous and frankly, we simply had a great time.

Marriot Marquis from 470 feet up!This is my 10th year of attending Sage conferences and I’ve yet to be disappointed in the content, the venue and the people involved. On occasion, they can even arrange for the excitement of a tropical storm to pass our way and lend a little credibility to the overall agenda.

Last night, we were treated to a visit to the Georgia Aquarium, the world’s largest and most engaging aquarium, according to their website. What interested me most were the promises of the presence of the only whale sharks in captivity outside of Asia and the only 2 Manta rays in captivity. I was not disappointed.

The evening started in “the belly of the beast”, the Atlanta Marriott Marquis hotel. Certainly no “beast” in the traditional sense, but a feeling of being Jonah inside the whale when one considers the interior architecture of the building and its surreal, ribcage-like appearance. I wonder if architect John Portman was perhaps a fan of HR Giger’s alien imaginings when he created the building.

From there, we were treated to the driving rains and howling winds of Tropical Storm Ida, recently blown in off the coast from her brief reign as Hurricane Ida. The 10 foot walk from cover to the bus drenched us to the bone, as though tossed through the blowhole of the whale.

Largest glass viewing wall in the worldEntering the Georgia Aquarium is like being transported fathoms beneath the waves. The massive glass viewing window dwarfs us landlubbers and we are awestruck by the sheer beauty of the underwater realm we are so privileged to witness. Sea creatures of all shapes and sizes drift by, apparently in slow motion, unaware of or unimpressed by our presence. In short course, out of the darkness appears the massive shape of a whale shark, flying towards the glass. A giant Manta ray appears beneath, flying low to the ground, massive mouth agape and moving softly back into the shadows.

Pirates!Every turn of a corner in the aquarium held new treasures and experiences, more fantastic food and drink and great memories to be made. It seemed fitting somehow to end the evening in the company of pirates, considering we had survived a visit to the depths of Davy Jones’ Locker and returned unscathed.

So what does this have to do with reporting and analysis? Nothing. I suppose I could have made some bizarre leap to try to imagine someone at Sage using a spreadsheet to calculate attendance and food and and … never mind. That would have been a little gratuitous and frankly, we simply had a great time.

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Bringing Design Thinking to Accounting and Finance

by Geoff Devereux on

Design thinking is a process for practical, creative resolution of problems or issues that looks for an improved future result. It is the essential ability to combine empathy, creativity and rationality to meet user needs and drive business success.

(There are number of definitions out there, but I think the above serves the purpose)

There’s a lot of Buzz around the concept of Design Thinking at the moment.  A great deal of content has been produced, but I’m not sure how much has been directed toward the accounting and finance community.  During the past 2 years for us, listening to someone talk about “radical innovation” usually entailed mostly hand-wringing and, well, … expletives.  It’s understandable to have missed some of this.

So, I’m not sure how much about the topic has filtered in.  Maybe that’s a good discussion point for the comments:

  • How much of the Design Thinking paradigm has filtered into the accounting and finance community?
  • How applicable is this school of thought to accounting and finance?
  • Do you believe there is a place for Design Thinking in accounting?

I’m interested in “jumping in” because I think there’s a natural connection between the way of thinking that underlies Design Thinking and the way of thinking underlying big parts of accounting.

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I’m in the wrong business

by Craig Todd on November 10th, 2009
New monitors in hand, ready for action

New monitors in hand, ready for action

12 years on the road – you’d think I’d learned my lessons by now but there’s always a way to teach an old dog new tricks. This year, I thought I’d gotten clever. I beat the system and combined the art of promotion with some green thinking and practical savings. I bought new monitors for the trade show. That doesn’t sound particularly inventive, but it is when you consider the money spent and how it’s used. We could have spent $500 renting monitors for our booth. Instead, we bought 2 brand new monitors for about $440 and are giving them away as prizes. Ya, ok, we’re still shelling out the money, but this way, two attendees at the show walk away with great prizes – a much better result than putting the money into the hands of someone charging near-criminal fees to rent equipment.

Now don’t get me wrong, I’m all for free enterprise and those in the rental business deserve to make a good living off of their services, but I do draw the line at the decidedly outrageous.

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