The Technology Economy November 3, 2012
Posted by Jeff Block in Business Innovation, Economics, Engineering, Technology.Tags: Economics, engineering, information technology, innovation, nanotechnology
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Economists are now commonly referring to our modern post-industrial economy as the “information economy”. I suppose I understand that. But I’m not sure it’s the best possible label for what is (or should be) going on in the post-industrial modern world. And I don’t mean just America, but Western Europe, much of Asia, and key parts of the rest of the world as well.
I think the reason economists are hung up on information is that, in their estimation, “information” has become and will increasingly continue to be the currency of trade between nations and corporations and people. Thus, they feel it drives the economy. In many ways, they’re probably right. But to me, an economy isn’t named by what it trades or produces, it should be named by what drives the economy forward, causes it to grow, makes it successful, etc.
The agricultural economy of the 19th century was driven by agriculture. Yes, we traded fruits and vegetables, cows and chickens as the currency of the day (even after gold, silver, and paper bills became common), but the economic time was labeled “agricultural” for the powerful influence hunting, gathering, and farming had over the growth of the economy. The key roles were the farmer (production) and the eater (consumption).
The industrial economy of the 20th century was driven by industry. We were builders of things you can see and touch and feel. Once built, we sold them, and that produced money, which we moved around in huge quantities to represent “value”, because it was impractical to trade cows and chickens any longer. Smart people created marketing, which in turn created “consumerism” to tap into the insatiable desire of the human heart to have. So we bought and produced and bought and produced. The key roles here were the manufacturer (or engineer) and the shopper.
The modern economy – which will shape our thinking and our wallets well into the 21st century – is an economy driven by technology. Information technology, computer technology, mobile technology, cloud technology. Medical advances, social networking, and other factors will play huge roles as well, but they will all be driven into existence (or not) by technology.
People seem to be creating a philosophy about this new economy that implies the key role is the CEO. And sometimes it feels like everyone else will either work at Starbucks (so the CEO can get his coffee in the morning) or be on welfare (because the CEO replaced all their jobs with A) robots or B) outsourcing). I understand how people have come to this conclusion, and like you, I feel the Orwellian theme music playing in the background when it’s given voice, but I fundamentally reject this view of the future as a necessary answer to “what’s next?”.
It’s up to us to make the world something totally different. Not with bigger government or more programs that somehow try to even things out, but with innovation. Rather than invest in shuffling around what exists, let’s make more for everyone.
How? Well, I submit that the engineer is still the key role. But it’s a different kind of engineer. The engineer of the 20th century was industrial or mechanical or electrical. They built buildings and roads, plastic moldings and bridges, assembly lines and monuments – ever striving for bigger and more visible. The engineer of the 21st century are the computer scientists and ECE’s (electrical and computer engineers) – the guys making everything smaller and writing invisible software to run on it. These are the artists of the social, cloud, and mobile movements. They’re the guys who figure out how to slam together Google maps, the iPhone, and GPS technology so that my wife knows when I leave work and can get dinner started. These engineers are tackling the challenge of Big Data so that companies can manage reputation on line and governments can add cyber divisions to their anti-terrorism units. It’s these advances that will lead to nanotechnology and cars that drive themselves, augmented reality glasses and evensmarterphones.
But I also submit that it isn’t these science-soon-to-be-non-fiction cases that are the most interesting. Perhaps the most impactful to the modern economy is the potential of information, mobile, cloud and other technologies to move your existing businesses forward. For example, if you’re a $50-100M business in America today and cloud, mobile and social haven’t made what you do cheaper and created opportunity to do things you couldn’t do 5 years ago, then you’re missing out on a huge opportunity. Right now, today, technology holds the power to increase your revenue, reduce your costs, lower your risk, improve your employees, expand your reach, and much more. And at cost models that are shrinking on the same curve as the cost of your favorite TV at your favorite big box store.
How? If it’s so easy, why isn’t everyone doing it? Well, it’s not “easy”, but it is “straightforward”. It’s a matter of right placement of the investment. It’s a matter of understanding business and the technology, and knowing how to make technology work for you. Like you trust a financial planner to make your money work for you or a tax attorney to make the tax code work for you, so should you invest in the right resources to make technology work for you. That guy isn’t the easiest person to find, but I submit, you’ll know him when you see him.
The Secret Necessary First Ingredient of BI November 2, 2012
Posted by Jeff Block in Business Intelligence.Tags: Business Intelligence, discipline, information technology
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Business Intelligence isn’t “reporting” or “technology”.
I can’t tell you how many times I’ve heard business and IT leaders alike give those misconceptions voice. I suppose it’s possible to purchase an amazing new reporting tool, but it’s absolutely not possible to purchase a box of business intelligence. More mature companies think that if they get some processes in place, learn some best practices, add some responsibilities to a couple of their staff, and THEN maybe buy a new tool … then they’ll have BI, which translates to wrapping their data in their new beautiful reporting or dashboarding infrastructure. That’s closer.
Still more mature … If we do all these things AND we have a data warehouse in place that implements at least the basics of good dimension modeling, surely then we’ll be golden … right?
Well, I’d still have to say: no. This is all good stuff. Really good. Necessary. But my concern is that all of it focuses on what boils down to effects rather than cause, tools rather than the root driver of value to the business. The bottom line is that BI is not about reporting or technology or data or processes or even people by themselves, it’s about discipline.
The purpose of Business Intelligence is to put in place the discipline (what turns “good intentions” into “intentionality” … and “vision” into “reality” … and “investment” into “return”) to convert an organization’s unique data into vital knowledge assets by which the leaders of that organization can make better decisions. What you build when you build BI is this discipline, not some reporting infrastructure … no matter how advanced. Physically, technology and tools are a set of lenses – reports, dashboards, scorecards, applications, widgets, portals, etc – through which you can make better decisions to advance the mission / goals of your business. But before those lenses can be of value – certainly before their value is maximized – you need people and processes of the right ilk. The people need to have vision, a plan, and the discipline to carry it out. The processes need to empower them not entangle or encumber them. And the technology is their toolkit. But understanding where you’re going (vision), stating goals, staffing appropriately, right-sizing processes, exposing data, and generally thinking through why to do what when with whom … no technology can give you any of it, no matter how expensive or sophisticated or well-marketed.
So, a large, well-placed financial investment may buy you a tool or hire you a smart guy or roll out a new process, but the return on that investment will never be what it could be without investing in the plan and … here’s the key … *committing* to the discipline to carry it out.
Your Very Own iBatUtilityBelt November 1, 2012
Posted by Jeff Block in Mobile, News, Politics and Culture, Technology.Tags: mobile technology, smartphones, Starbucks
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I woke up yesterday morning to an update notification on my iPhone (5 – yes, I love it) for my flashlight application (and a couple others). I clicked “Update All”, and moved on to get ready for the day without thinking much of it. Shower. Ready. In the car. And on my way to the office, it hit me… “Why the heck do I need to update the flashlight application?”
It’s kinda weird to *have* a flashlight application in the first place, but it makes sense if you think about it. So does the “mirror” application, and the “compass” app (don’t actually have one of those, because my flashlight has a compass built into it), and countless other “basic utilities”. Calculator, weather, camera, map, etc.
But my favorite is my Starbucks card. This app and the flashlight deal have something in common… they’re the wave of the future. The goal: to eliminate the need for having much on your person other than your phone … to allow me to collapse my entire bat utility belt into a single device. Well, for men that is. I’m skeptical that the “lipstick” app will ever take off. But I digress.
The credit cards are working on apps like these too. Why have a plastic card (or cash) in your wallet, when you can just scan your phone? And 30 seconds later, you’ll be scanning the phone to buy a soda from a vending machine, or ride in a cab, or buy a TV, and so on. And if you doubt it, then you may remember having said to yourself, “Who would ever write a flashlight application?”
Once the credit cards and cash aren’t in your wallet anymore, what’s left? Photos? Nope, they’re on the phone. Receipts? I hope the go the way of the credit card (how easy would that be!?). And that pretty much leaves the driver’s license. Ok, that one will be “hard”. (Read: will take another couple years). But we’re getting closer to the day when the biggest question left will be, “How do I secure this device that now has every imaginable element of my life on it?” That is the question of the next 5 years.
But for now, I welcome the one-device utility belt. Having upgraded my flashlight, anyone else have tips for great “tool apps” you consider a necessity?
“Open Access” vs “Self-Service” Data October 9, 2010
Posted by Jeff Block in Business Intelligence.Tags: Business Intelligence, information technology, innovation, self-service analytics
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What is “Open Access to Data”?
Open access does NOT mean that everyone has access to everything, or that necessarily any one person has access to everything (from a business user perspective). Here’s a definition that will make some of you squirm.
Open access: All users in an organization are granted access to all data in the organization through a defined, intentional, repeatable process, in accordance to their individual role and prioritized need for that data.
So, it’s not giving everyone access to everything, it’s giving everyone access to the RIGHT things to improve their job over time. And remember that this is more evolutionary than revolutionary in healthy organizations. Those who target a big bang frequently end up with a bum fizzle. The early-and-continual delivery of value is far preferable, in both the short and long terms.
What is “Self-Service Data”?
Industry pundits hopped up on the buzz of business intelligence throw around the term self-service with impunity, hoping that BI will deliver to them some magic universe in which every conceivable reporting or analytic requirement can be accounted for by a “self-service portal” front end to the wonder of the data warehouse. The truth is that no such indefinite and infinite vision to the horizon is possible. Even in the most ideal world, you will never experience a 100% self-service environment.
Here’s what BI can do for you in this realm …
There are too many people in your organization devoting too many hours to manually massaging and manipulating data in response to totally unpredictable (seemingly random) requests for aggregated, cross-referenced, or other newly-contextualized data sets. BI does promise that over time, these manual efforts will be replaced with a uniform data model, capable of fielding ever-broadening, increasingly complex requests for knowledge from the data. This will free up your data/statistical research experts to be more strategic and attend to a higher-order of complexity, but the demand for them will not go away. Success means making these resources more strategic over time, not eliminating them.
What BI will not do for you …
Alchemy, card tricks, cold fusion, or other magic reliant on some illusive silver bullet. BI is more about discipline and intentionality than any form of magic. No overnight miraculous change of any kind will occur.
Summary
Don’t deal in all-or-nothing scenarios! Companies expecting it to take 3 months (or even 3 years) to go from 100% manual ad-hoc request management to 100% total automation of all reporting are going to learn to live with disappointment … the hard way. Ask yourself, “What would you give to gain 20% automation per year at the cost of creating 10% new demand for higher-order higher-complexity higher-value ad-hoc requests (which drive more manual request management and therefore drive new requirements of the BI environment)?”
This is a far more realistic scenario. The phrase that pays is, “Progress, not perfection”.





