“I sell a product to a market that doesn’t want it, but is forced by law to buy it.” – Dan Meyer

Watching his talk, I couldn’t help but draw a parallel to the way the Business Intelligence concepts and methodologies have traditionally been presented to non-techies.  Is it just a matter of complex tools?  Or is it deeper?

“The formulation of a problem is often more essential than its solution, which may be merely a matter of mathematical or experimental skill”  – Albert Einstein

Meyer references this quote by “the man”, Albert Einstein.  Can you think of how B.I. manages the formulation of data schemas, hierarchical data models, nesting, etc?  Bust open a textbook or Wikipedia, read it, then ask yourself, how engaging would this content be to someone who:

1. Lacks initiative

2. Lack perserverance

3. Lacks retention

4. Has an aversion to word data problems

5. Eagerness for formula reporting output

Meyer highlights these factors as being emblematic of his captive audience in the classroom.  I’ve made a couple of adjustments to tweak the context to that of B.I.  If you don’t agree that these factors apply equally to the vast majority of business users of B.I., please speak up.

Advances in technology are creating the ability to put the tools into the hands of the end user.  Our technology is proof of that; however, we still have some serious work to do on the owner’s manual.

For example, How would you deconstruct the process of building a data hierarchy to facilitate creation of a Data Mart?

I’ve recently started volunteering with Junior Achievement teaching business concepts to 5th graders.  You can see the attention of my little budding capitalists wax and wane throughout the session.  They haven’t yet learned to hide their expressions so when they “check out” it’s pretty obvious. But I’m glad for it.  I know exactly when I need to inject some PT Barnum into the act.

Let’s do the same for Business Intelligence.

Here’s Dan Meyer’s suggestions for fixing math education delivery.  Let’s do the same and give Business Intelligence class a makeover.

The Fix

1. Use multimedia

2. Encourage students business users intuition

3. Ask the shortest question you can

4. Let students business users build the problem

5. Be less helpful

I encourage you to watch the whole talk (below):

Enjoy!

Related posts:

1. Business Intelligence Adds a Dimension to Your Strategy
2. Defining Business Intelligence
3. Crowing about Business Intelligence

Recently, someone kindly pointed out that B.I. is actually DETERMINISTIC as opposed to intelligent by its very nature…. being just a construct of rules and structure within an IT system.

This comment was brought about through a discussion around creating B.I. solutions, what is a good approach.

The talk actually ended sounding more like a Philosophy class than an IT group.  Inductive and deductive reasoning.  Asking questions.  Treating matters objectively.

Stuff about helping management understand their own strategy by questioning manifest business processes.  In order to arrive at answers to seemingly imponderable business questions.  Things like, “What are your business goals?”

Some Focus Points

- Let outcomes guide decisions

- Let goals guide focus

- Let value guide priority

* NORTH STAR Business Intelligence

The above-mentioned firm put on a talk through TDWI (The Data Warehousing Institute) in Vancouver last Friday and I was fortunate enough to attend.  For anyone local who is looking to better understand the B.I. space, these monthly meetings are a good start.  The local chapter is fairly “young”, but it’s been growing and I’ve got to say, the meeting was quite interesting.

Some other points that jumped out were:

- B.I. is a technical issue, but success is a human issue

- Always keep the broader vision in mind

- Understand that business processes, definitions, and meanings change over time

- Greenfield B.I. projects have an advantage [over existing systems (i.e. no baggage)]

- Think big picture, work the details

and – Choose for impact!

It appears the growing consensus in this group is that the technical barriers aren’t what is standing in the way of getting good B.I. spread all throughout the organization.  But it’s organizational psychology that sometimes stinks.

There’s a delicate balance that has to be struck.  Top management don’t want to feel like they are being lectured, or questioned.  But it’s education and Socratic inquiry that are required if the end B.I. solution is going to work.

In my view, part of the difficulty is that management doesn’t necessarily have their strategy worked out to the level of detail really required to get a “perfect” solution.  There’s a lot of moving parts regardless of business size.  But don’t look at me I’m just a software vendor.

Do you think I could be counted on to whip business strategy into shape?

Anyway you slice it, I think B.I. and strategy will always be inextricably linked.  As mentioned in the talk, these are tied into part of a feedback loop.

Helpful to remember this stuff.

Enjoy!

Related posts:

1. Business Intelligence class needs a makeover
2. Defining Business Intelligence
3. Crowing about Business Intelligence

With the entire office cheering him on via UStream, Mark brought his A-game and knocked it out of the park!

We were awarded the Judge’s Choice Award for the Analytics category!

It’s a privilege to receive this sort of recognition and we really appreciate it.

As well, we received some very kind words from the panel moderator, Jeremy Toeman - an expert in consumer lifestyle technology:

“I think Indicee’s website did the best job of the presenters now of radically, clearly saying what you do.  Specifically that is… Easy Business Intelligence Reporting.  Boom!  I get it! Done.”

The presentation included a bit of background on our team and B.I. pedigree, the challenges of B.I., the pain of spreadsheets, and the cure!

Here’s the presentation guys:

And the slidedeck:

Indicee_Under_the_Radar_v2.1_nobuild_opt –

And lastly, we’ve fished out some of tweets streaming during the Analytics session:

Enjoy!

Related posts:

1. F5 Expo to host Cloud Computing panel April 7, 2010
2. Reflecting upon Sage Insights 2010
3. Business Intelligence Adds a Dimension to Your Strategy

With all the March Madness going on right now, a basketball analogy seems in order (or at least some pics from my local court).  Like hockey, basketball is a great example of a team sport that benefits from the guys on the bench as well as the guys on the court.  Even though it’s usually not given a real solid acknowledgment in the sports media, all the bench guys are still an integral part of the team and all contribute to the team’s success (when they do succeed).

It’s about the program.  It’s about scrimmage.  It’s about strategy.  It’s about training.  It’s a team.

That said, do you think there’s even one bench warrior who wouldn’t rather be in the game?

To a man, I think the answer is no.

Business isn’t much different, is it?  There are the star players and then there are the guys who “ride the pine”.  You may know them by another name, “Cost Center”.  In Accounting and Finance, we hear that term a lot.  Usually it comes up around budget time.  It comes up around bonus time.  You want headcount?  But, you’re a Cost Center!

So, how does one go from being viewed as a Cost Center to being viewed as a Revenue Center?  From being a Beancounter to being a Strategic CFO?

The distance between the two can seem broad:

Finding actionable business intelligence that will enhance sales and cash flow while hammering down inefficiency and expenses is the mark of The Strategic CFO and it’s the key for getting in the game.

To go from being an observer:

To driving the hoop:

Here’s some resources to get you going:

A High Value CFO is… (CFO Coach)

Strategy on the Morph (Harvard Business Review)

Midsized Companies Need Strategic CFOs, Not Beancounters (Ventana Research)

Can Technology Make CFO’s and Controller’s Jobs More Strategic? (Technology Evaluation Centers Blog)

What does Get in the Game mean to you?

Enjoy!

Related posts:

1. Understanding Business is a Game of Questions
2. Software Implementation by the Book
3. Business Intelligence Adds a Dimension to Your Strategy

Amazon Changes the Game

Amazon is the ultimate consumer company, making something as simple as buying a book, a customized and easy customer experience. Amazon has applied their deep consumer knowledge to cloud computing. After years of designing and developing their own platform for Amazon.com, Jeff Bezos took this knowledge and intellectual property and spun it into a new business, now leading the charge in cloud computing platforms. Platforms like Amazon’s are known as “infrastructure as a service,” providing businesses with extremely cost effective alternatives to traditional IT models. Other platforms gaining traction include Microsoft’s Azure, but Amazon enjoyed a strong head start. Cloud platforms like Amazon’s allow software vendors to launch new applications at break-neck speed, paying only for what they need, by the hour. This model is revolutionizing the IT world and the up-time guarantees in the cloud are better than most internal IT organizations can offer. The interconnecting and scaling services hosted in the cloud enable IT professionals and other software vendors to link applications in endless creative and unique ways, enabling “web mashups.”

Dirty Deeds Done Dirt Cheap

The cloud is cheap, some would even say ‘dirt cheap’ and it allows a business to off-load all the ugly computing tasks which have overwhelmed IT departments for years, from both a cost and resources perspective. Cloud computing allows a business to pay for computing power, based on actual usage, at a rate of 10 cents an hour. The recent global financial crisis has changed the way we think about our economy. Consumers and organizations are actively seeking simple and lower cost alternatives to just about everything. Using the cloud allows businesses to prototype and launch new initiatives faster and at a price point that is unmatched. A user can create a simple software as a service application, build a prototype in a day, create an account on Amazon Web Services, and make the application available to consumers in minutes. Furthermore, a Twitter feed can produce a thousand instant alpha users. No sales people, no marketing, only the cloud and a social network.

People Drive Change

Cheap and easy is critical but ultimately it is people that drive change. The popularity of cloud computing is due in part to a whole generation of users who have been chatting, texting, tweeting, and facebooking since they could walk. Online collaboration and public content sharing is the norm for these users and the cloud is part of their DNA.

But cloud use is also growing because of the many users in organizations who have been forced to endure cumbersome enterprise software applications, ridiculous IT policies, and limited visibility into disparate business data. These are the people who have been exposed to consumer applications like Facebook and Flickr and now expect their business software to be as easy to use.

Ultimately, the most exciting change-driver is IT. Old school IT is starting to change and will be the biggest adopter of cloud in the enterprise. IT is finally realizing the suitable role of enabling business success and results, rather than maintaining systems, fighting fires and ensuring job security. IT managers seem to agree on the need to find the best technology to address their business issues in the most cost effective way possible, whether it be in the cloud or on-premise. Cloud technology removes the need for physical hardware and infrastructure security requirements, which allows IT to devote more resources to higher priorities tasks that will improve productivity gains. Moreover, IT is realizing that the need to listen closely to the knowledge of workers at the frontline of an organization, who are demanding simpler, easier and more collaborative applications. Cloud computing addresses all of these issues which explains the massive adoption of cloud applications like Saleforce.com, Google, Amazon and many others.

The Cloud meets Self-serve BI

The cloud will have a huge impact on business intelligence over the next few years and is fueling the growth in self-serve BI. Demand for simple, cost effective self-serve BI is not new. Crystal Reports was originally envisioned as an out of the box, easy to use application for every user in an organization. But business intelligence like Crystal Reports has never really reached the ‘Promised Land’. Only 20% of people in an enterprise organization use business intelligence, mostly because it just isn’t that accessible to an average user.

True self-serve BI should allow a user to search for and locate a solution online, access and load their own data, create their own reports and dashboards, and invite, share and collaborate with other users. Ideally, it also means they can research and buy a BI application online without the assistance of a sales person.

Can the self-serve barrier finally be broken? The cloud is the best thing to happen to BI, making it possible for users to find, try, buy, analyze, share, collaborate, and learn.

Related posts:

1. Is Cloud Computing in your Company Culture?
2. F5 Expo to host Cloud Computing panel April 7, 2010
3. Tourist in Techie Land: Reporting from Cloudcamp Vancouver

When I was first approached with an offer to TestDrive a Chevy Volt as part of a GM Public Relations campaign, I was unsure what to make of the offer.  Why was I being included? Am I a media source now?  I tend to think of corporate blogging in separate terms from what I’ll call media blogging and traditional reporting.  A corporate blog is less about reporting “the news” and more about building understanding of a company; the culture, the people, and the product, within the public sphere.  In my view, this specificity of purpose imposes a certain amount of discipline and etiquette upon the writer.  For example, I would not consider it appropriate to rant or “bag on people” in a corporate blog.

In accepting the offer to TestDrive the Chevy Volt, as a corporate blogger, I really had to seriously consider how doing so would relate to Indicee.  What connections could be made that would justify the inclusion of the experience on the blog?  How would it relate to what we, as a company, are trying to achieve?

The offer included both a TestDrive of the pre-production vehicle as well as the opportunity to speak with some of the GM engineers in the Volt product group.

Upon reflection I found that, despite the obvious differences  between the Chevy Volt group and Indicee, there were some commonalities that warranted accepting the invitation.  So, I accepted.

I distilled the commonalities down to 4 themes:

1. Try before you buy: The TestDrive is a time honoured tradition of car companies.  It’s a core cultural belief infused with enough historical precedence that you could probably even call it dogma.  It’s interesting that no one has ever come up with a similar concept for buying a house considering that, apart from Detroit, you’ll pay way more for a house than for a car.  In Vancouver right now, the vast majority of homes are being sold without providing the prospective owners with so much as the opportunity for an inspection the market is so exuberant.  But I digress.

In software circles, particularly in the Saas market where we play, companies have taken that TestDrive concept and added a turbocharge.  We call it “freemium” and it’s a core cultural belief at Indicee.  For us, it’s critical for users to experience an initial success in order to engender belief in the product.  Try before you buy.

2. Performance Management: Indicee is in the business of Performance Management for business, but we’re not the solution that a company like GM will likely seek out.  Although I can’t be certain, I expect GM has highly complex and integrated systems to manage every element of their business; from supply chain all the way to the point at which the car drives off the lot, time and effort is accounted for.  The interesting conversation would be related to how these systems interact and what it means for how these guys do their job; I can become application agnostic for a few moments and investigate the mechanics of their information delivery system.  Who knows; it may well be they are completely underserved by their internal systems.  When it comes to performance management, we have seen some departments in large companies living in the dark ages even while their colleagues enjoy all the best new toys that B.I. has to offer.

3. Innovation & Change: Within the walls of a big company like GM are, effectively, a bunch of smaller companies.  I expect the Chevy Volt product group is like one of these smaller companies.  In a sense, they are a start-up that exists inside GM.  The guys within this group have been tasked with deliberately venturing away from conventional automaker thinking in the same way that Indicee has ventured away from the traditional path with respect to delivering Business Intelligence software.  I was interested in seeing what similarities may exist between some of these guys and the team at Indicee.

4. User Experience: It’s not always easy to try something new.  There’s a risk; and, although it’s not always spoken it is present.  The risk is, “what if I fail?” So really, this speaks to the larger issue of infusing a product with trust.  Following someone into uncharted waters is ALWAYS a trust exercise, and trust is only gained through interaction with the product.  Like Indicee, the Chevy Volt guys are in the trust game.  So, what considerations went into ensuring the Volt user experience instilled that trust?  What feedback mechanisms are in place?

The Result

In the end, the Chevy Volt TestDrive didn’t happen for me.  Without rehashing the specifics, let’s just say I received an apology in place of a car ride.

I’m going ahead with my post about the Volt, not as some kind of social shaming exercise, but to illustrate a point.

Understanding business is a game of questions

Good questions don’t simply materialize out of thin air.  Good questions are the result of thinking through the activities, behaviours, concepts, and relationships at work within the context of what you are trying to achieve.  Thinking about how things connect.  What are the commonalities?  Where do the commonalities diverge? What’s the essence of the matter?  What are the themes?  In my view, this is a strategy for finding answers.

Enabling answers, an answer-friendly environment, should be the overriding consideration when asking questions.  The motivation underpinning a question should always be getting an answer.  Therefore, framing your questions within a context familiar and relevant to the person being queried is probably going to be helpful.  After all, how much good is asking questions when there is no one around left to answer them?

-

Focus on outcomes

For example, what outcome was I trying to achieve with this Chevy Volt thing?  Was the outcome being able to say I drove the car first?  No, probably not.  I would say, despite not driving the car or meeting the guys, that a positive outcome was achieved.

I was able to relate our product, Indicee’s Saas Business Intelligence platform, with a product that folks will likely feel like they understand, a car.  In that sense, I consider the experience a success despite not having any questions answered.  In this case, my questions were academic.  There was no pressing business problem to solve (or media story to break).  The questions, these connections, were more important than the answers.

That said, my prepared questions did go unanswered.  So, below I will list a few of them.  If there are any GM guys reading this, feel free to take a shot at answering in the comments.

1. What do you think companies can learn from the TestDrive concept?

2. What would you consider the defining moment of this project and how did you come to this realization?  Was this a “measurable” moment from a performance management standpoint?

3. A lot has been said recently about how Design Thinking contributes positively to innovation. Are you familiar with the concept and do you subscribe to it?

4. What was done to ensure a positive user experience?

Enjoy.

Related posts:

1. Strategic CFO: Get in the Game
2. Sharpen your Business Analysis: Think Like a Reporter
3. Business Intelligence Adds a Dimension to Your Strategy

There tends to be a “birds of a feather” thing happening with these guys though.  If you speak the language and have a passion for B.I., you become a member of the flock no problem.  Outside the flock though, the language seems obscure and the industry as a whole takes on a bit of a menacing pall like a murder of crows migrating into your neighbourhood.

from Artmenow's Art Blog

The analogy of crows actually serves a dual purpose here.  First, there’s the misunderstood nature of the crow.  Second, there’s a certain crow behaviour that I think helps to illustrate a key concept of B.I.

I recently watched a great documentary on CBC Television’s The Nature of Things that focused on crows.  Watching the show had me thinking, this has some parallels to the B.I. industry!

I think it’s fair to say that, to the uninitiated, the crow is a general nuisance; they have a way of sticking their beaks all up in your business.  Well, as it turns out, the crow is actually one of the most intelligent, playful, and mischievous creatures on the planet!  Crows have a proven ability to problem solve, reason, and they have long dependable memories.

They also engage in complex social interactions.  Very much a family oriented bird, they mate for life and extended family plays an active and ongoing role in the development of the next generation.  They even appear to have funeral rituals!  With over 250 distinct calls, crows have 2 separate dialects; one, for use within the flock and the other for the general public.  And lastly, crows love to play!  A key component for any intelligent species!  After watching the documentary, I found I have a great deal of respect for these guys.

The crow behaviour that I think is useful in illustrating a key concept in B.I. relates to their use of tools; more specifically, their use of meta-tools.  Let me explain.  If you watch the documentary, you’ll see that the crow researchers want to test our crow’s intelligence and problem-solving skills.  What’s required is for the crow to use one tool to get another tool that they can then use to get food.  That first tool is the meta-tool.  It’s the crow’s ability to follow through on this sequence that denotes intelligence.

1. See the food

2. See the tool that would help get the food, but is out of reach

3. Search out and find a meta-tool that will help reach the food-getting tool

4. Use the meta-tool to get the tool

5. Use the tool to get the food

In B.I., we have a concept called meta-data.  Similar thing.  It’s data about other data.  At Indicee, we use this meta-data to help us understand your company’s data.  The meta-data is the first step toward getting the food.

When we get the meta-data, it gives us the ability to go out and interpret your company data.  Once we’ve interpreted your company data, you’re able to nourish your business with the valuable insights that are now within reach.

What do you guys think?

Related posts:

1. Defining Business Intelligence
2. Business Intelligence class needs a makeover
3. Mind Your Own Business Intelligence (I Stole this Title!)

I had a few experiences this past week reminding me that it’s still very much early both in social media adoption and in understanding new technology. Maybe “DOS-based” is a bit of a strong term. Granted, I did help someone set up their 1st email account this week; but, that’s a rare, rare, rare case of a thirtysomething who never went online… until now. Actually, the jury’s still out on that; 3 to 1 the account goes dormant.  That’s not one of the experiences that got me thinking (although it could).

What got me thinking was speaking with another accounting professional about using the Groups in Linkedin for following industry-related discussions and content. I had the chance to provide some insight about twitter; felt good about that. I was informed that it’s still a bit of a big deal to raise a voice online. I guess that should be obvious, but I forget because the conversation IS happening… despite the fact tons of people aren’t here. It’s kind of like turning the much-quoted phrase “Your customers are talking about you whether you participate or not” on its head. When the accounting and finance conversation is isolated, things get considerably quieter.

In a tech-friendly industry like Business Intelligence, it’s similarly insulated but in a different way. There they have been having pretty much the same conversation for the last 50 years. The only difference between then and now is, it’s online now.  Don’t even get me started on Data Quality! ← sorry guys

The other experience that got me thinking was with respect to course content in my professional organization’s (CGA) Information Systems Strategy course. There seems to be a real bias in the material relating to custom-built software over purchased applications. This is surprising to me. What was more surprising is; through discussions with students, there was unquestioning belief in it! The fact is, there’s a level of trust there between student-teacher telling them they are getting the right information. I think it shows how difficult changing technology makes it for academics (outside tech) to keep up.  That said, it’s a problem.

When they say “custom-built”, they are talking about in-house, from scratch software – think some proprietary system no one’s ever heard of.   Purchased applications would range from Quickbooks to SAP. Imagine. I feel like this is something that entered the course curriculum at its inception back when code was being written using Hieroglyphics. Am I wrong?

This actually ties nicely in with my last post about Legacy IT Systems. We’re still dealing with them. We’re also dealing with a Legacy Education System. This could explain some of the continuing difficulties between CFOs and CIOs.

There are lots of folks in accounting doing the right things though. Look at AICPA and CPA2Biz’s just-announced alliance with the software as a service accounting package, Intacct. Here’s an example of keeping current! Of course, in general it’s tough for professional bodies to do this kind of endorsement. What I like about it though is the endorsement of the technology. Maybe the question is, does that validation extend to the course curriculum for prospective accountants?

What do you think?

I think it also exemplifies the Echo Chamber analogy.  Who’s in your Echo Chamber?  Who’s not?

Related posts:

1. Ghost of Software Salesguys Past
2. Developers of Crystal Reports software launch new business intelligence venture
3. Asset or Expense: How do you account for Data Quality?

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.

Of course, we have come to know this “general swamping” in terms of email as opposed to paper, but it’s interesting that the problem remains the same.  How often are you required to spam the inboxes of your co-workers with reams of reports that may or may not be relevant to what they are currently thinking about?

Luhn actually advocates the creation of Profiles that would reflect the person’s sphere of interest!  This guy was truly visionary!  He goes on to discuss what he describes as “the Library problem” referring to the process by which users retrieve information from the system.  I really like this term and think we should resurrect it here and now!  Call me, The Librarian!

These Librarians that Luhn describes will become the guys who are your Systems Administrators and Database Administrators today.  In Luhn’s world, these are the guys who would eliminate the need to train the end users of the information in navigating the complexities of the system.  Although, later he does offer a tantalizing glimpse into an ever greater vision of technological advancement:

Although the service of a librarian is considered a convenience to the action point, in certain cases, means may be provided at the action-point location to permit direct access to the system. This would be justified where many of the inquiries concern lookup-type retrieval of data.

Otherwise, the system he envisions does actually begin to characterize what’s become the classic IT problem when it comes to report generation.  That process being:

1. Information user requests a report from IT
2. IT evaluates the request and, time permitting, creates the report for the user
3. User receives the report and discovers that it doesn’t quite fit the need
4. A new request goes to IT
5. Repeat (ad nauseum)

In 1958 though, this was a revolutionary breakthrough in organizational management!  Perhaps it’s time to look for the next breakthrough, after all, it’s been 50 years.  The article goes on to detail the process of capturing and organizing information including the EVENTUAL DESTRUCTION of the data!  Microfilm, magnetic tape, punchcards, these are the modes of storage being considered.  At the same time, the functional technology being envisioned is virtually StarTrekkian:

The magnetic tape record is now introduced into the auto-abstracting and encoding device. This device submits the document to a statistical analysis based on the physical properties of the text, and data are derived on word frequency and distribution.

A relative value of sentence significance is then established by a formula which reflects the number of significant words contained in a sentence and the proximity of these words to each other within this sentence. Several sentences which rank highest in value of significance are then extracted from the text to constitute the auto-abstract.

Whoops, I think we may have also just inadvertently discovered the origin of vaporware.  The article does admit that the functionality being described is only a vision and that “the question arises as to how far away such systems may be from realization”.  The fact is that some of what has been envisioned has only recently been achieved.  Think about tagging, creating profiles, digital indexing, and keyword searches.  What makes me think this article figures prominently in the lives of both Larry Page and Sergey Brin?

Dissemination of the new information occurs based on the user-generated profiles.  This feature is, again, only recently been substantively achieved.  The means of dissemination according to the article? The use of personal printers!  The more things change, the more they stay the same.  I still know companies where the primary means of report distribution is the printed page.  I encourage you to print out page 4 of this article and overlay the copy onto your organization’s business process information flowchart.  Similarities?

Okay.  Just a few more quotes here to round things off, but you can peruse the embedded document for the full story:

In the process of transacting business it is often desired to determine who concerns himself with a given subject. The usual type of question asked is: “Who does or knows a certain thing?” A function of the Business Intelligence System is to answer questions of this type.

Perhaps the techniques which ultimately find greatest use will bear little resemblance to those now visualized, but some form of automation will ultimately provide an effective answer to business intelligence problems.

Indeed.

Enjoy.

IBM Biz Intel 1958

Related posts:

1. Business Intelligence class needs a makeover
2. Business Intelligence Adds a Dimension to Your Strategy
3. Mind Your Own Business Intelligence (I Stole this Title!)

Providing some standard B.I. terms without definitions, I was looking to gauge your understanding of typical B.I.-speak through a quick game of word association.  There were no responses.  I figure I’ll probably need to establish myself more before I can expect comments.  I’m also going to assume there is a vague understanding of these terms.  Taking a line from The Simpsons when Bart’s teacher asks him if he knows Long Division, Bart replies, “I know of it”.  I would argue these are the “I know of it” terms of B.I. for an average accountant.

Let’s define them:

• Business Intelligence (BI): supporting better business decision-making by transforming data (or transactions) into meaningful information about historical, current, and future operations.
• Performance Management (PM): setting goals/metrics and measuring the results.
• On-Line Analytical Processing (OLAP): a structure for data that allows fast analysis typically displayed in a matrix (pivot) format.  Data needs to be in a block where columns define the fields and each row is a complete record.
• Analytical Applications: software that facilitates B.I.
• “Slice & Dice” and Drill down: this might not need explanation. The former is to chop up the data into different views, and the latter is a buzzword that simply refuses. to. die.(<– awesome list from BBC).
• Data Mining: is using computers to find patterns in data.
• Data Visualization: a graphic representation of data; an area that is producing some great innovation right now!  It proves that Data Visualization is no longer just for the super-geeky.
• Dashboards, Scorecards: the former are a collection of visual gauges for tracking business performance, the latter has evolved from the specific program of business evaluation made popular by the book called “The Balanced Scorecard” into meaning any kind of general business Report Card (parent’s signature required).
• Key Performance Indicators (KPIs): are quantifiable measures representing the critical success factors relevant to the business.  To really work, this should be limited to a handful of metrics, the most meaningful ones.
• Data Shadow Systems or Spreadmarts: Again, these are separate terms. Shadow Systems (or Shadow IT) is any IT configuration created outside the supervision of the IT department; it includes Spreadsheets and their authors!  Spreadmart refers to the expanding number of spreadsheets inside your business.
• Data Warehouses (DW): you are combining data from multiple sources into one big pile.
• Data Marts (DM): a subset from the Data Warehouse, think of it as a truckload being hauled away from the loading dock of your Data Warehouse going to your monthly reports.
• Data Integration: is a concept describing the retrieval and organization of business data from various sources producing a unified view for the end user, easier said than done.
• SOA (Service Oriented Architecture): in broad terms this is a software structure that separates the core development code (stuff that doesn’t change frequently) from the more volatile aesthetic code for, say, website design (that does change frequently).
• SaaS (Software-as-a-Service) or On-Demand Software: this is software accessed through the internet.  In other words, there is no installation of software to your computer or your company’s servers.
• Cloud Computing: Larry Ellison’s (Oracle CEO) famous rant notwithstanding, this is accessing computing power from, what amounts to, a computing utility provider outside of your own servers. Just like you buy electricity from the power company, you can now buy computing power from these “Cloud” companies.
• Dimensions & Facts: succinctly summarized here by Ralph Kimball at http://www.information-management.com: Dimensions are “the smallest tables in the data warehouse, and the real “meat” is actually the set of numeric measurements in the Fact tables” going on to say, they are “the entry points, the labels, the groupings, the drill-down paths” for your user interface.
• Relational Database versus Columnar Databases: First, a Relational Database can just be visualized as an organized excel table with columns at the top all labeled and the values down the rows in those ‘named’ columns.  Think of a Columnar Database in the same way, but parsing each cell to quickly respond to any user question.
• Unstructured Data: business information buried in emails, memos, notes, etc.
• Metadata Management: perhaps a confusing term initially, it involves storing information about other information.  For example, a report export has hidden information that creates the structure for the report, like lines on a page.

So, I hope you know a little more now than you did before reading this.  Remember to check out the links throughout the article for more information, and also remember to subscribe to this feed for more Business Intelligence for non-techies content.

Last link: Enterprise Performance Management site.  This site looked pretty cool, but it didn’t quite “fit” in the definitions list.

Enjoy!

Related posts:

1. Accounting for Interdepartmental Language Barriers – Accounting and IT
2. Accounting for I.T. in the Finance Department
3. Accounting for Time