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September 22, 2008
The Busyness of Information
MicroStrategy has published an online article about the 5 Styles of BI, which is interesting primarily in its view that these are operational styles that "evolved" in the form of tool functionality.
It might be more precise to say that the article promises understanding of the adoption of BI capabilities by the currently recognized differing types of BI users, which are relabelled and listed here:
- activity monitors
- managers and dataset explorers
- information explorers and power users
- professional information analysts
- information subscribers
This offers a view of how business is learning to adapt to BI technology so that the tools can be more effective. The individual user may find it easier, as well, to identify where he or she fits into the big picture of possibilities. In turn, that refines demand for the BI tools and helps to organize deployments.
But to get a real grip on this, it makes sense to reorganize the groups into producers, providers and consumers.
- Information Producers find and manipulate data to create information appropriate for describing and distinguishing events and conditions.
- Information Providers group and package information for managed delivery to designated recipients per requirements mandated by rules and/or agreements.
- Information Consumers receive and examine packaged information to determine what correspondence its included descriptions and distinctions may have to prior expectations and/or to prior received information.
What makes this more complex is the accompanying issues confronting each party (producer, provider and consumer) such as:
- formulation (validation/certification) of information
- formatting of information
- information access methods
The challenge, then, is to establish logical connections between how producers solve those three issues, how providers solve them, and how consumers solve them.
(You've read the book; now see the movie!)
One continuing dynamic affecting that interconnectedness is the shifting balances between the willingness of the different parties to use solutions offered to them versus working up their own solutions. The shifts occur from time-to-time, from place-to-place, and according to prevailing levels of urgency and risk. This brings up the matter of standards and governance in the overall BI "practice", but from an evolutionary perspective it is most likely that "standards" must be seen mainly as negotiable "agreements" that are living (changeable) but socialized. Given that, some agreements could become jurisdictional (e.g., consumers should not force information formulation) and others may become promotional (e.g., providers should diversify for consumers) -- which sets the stage for different roles to be defined and anticipated in the organization's ecosystem of BI.
In BI, there are also higher-level operational problems to be solved such as how to compare word-of-mouth with statistical analysis, or how to repackage existing information on demand for a different party. It is fair to say that the day-to-day experience of business is pretty rich with such higher-level "BI" problems, and that the presumptive evolution of BI should be describable in terms of what solutions to these problems have turned out to be most broadly feasible. These may generally surface as "use cases" during the construction of RFPs or in the design phase of implementations, but without a survey it is difficult to know whether they are usually seen as necessary or just nice to have, short of any Darwinian force they might prove to exert. What may be the most interesting question of all, then, is this: increasing rationalization of different tools makes BI more likely to help advance the cause of businesses, but isn't it still mainly the case that BI is adapting to each business more than that business is adapting to BI? No harm meant in the question: the point is only to encourage adequate attention to managing the internal business environment of participants (producers, providers and consumers) before making valuations of a BI tool's importance.
Tools referenced in the MicroStrategy article:
- Enterprise Reporting - incl. scorecards/dashboards
- OLAP Cube Analysis
- Ad Hoc Query and Analysis and automated OLAPslice and-dice into all data
- Statistical Analysis and Data Mining
- Alerting and Report Delivery
Posted by Malcolm Ryder at 5:46 AM
September 17, 2008
Business Process vs. Business IT: again?
These frustrate the chances of recognizing "a business process called IT".
On the one hand, this is hard to overcome if people don't say what aspect of IT they mean to identify when they say "IT". An interesting point to put on the matter is that the primary expectation of IT users is actually "process management automation" -- not the same problem to solve as "information management" nor the level-setting about which sanctioned company processes are strategic/tactical/operational.
On the other hand, the word "alignment" itself continues to provoke and refresh the difficulty of reaching "I get it". The more important term to emphasize is not "alignment" but "integration". Imagine that some decision-making sector called "Business" was not integrated with the decision-making sector called "Finance". Since managing IT, like managing Finance, creates and governs a critical dimension of the business operational environment, some businesses cannot be dis-integrated with it and still rationally expect to succeed.
What might be really interesting short-term is to see and compare what stances about "alignment" come from CEOs who are Lawyers or are Technologists as opposed to Finance alumni.
Furthermore, however, as long as the "alignment" banner keeps getting hoisted by analysts and pundits in the trade, they'll keep educating CxOs to think about things in the wrong way. When it comes to IT, CxOs should be working on the management process competency at all levels -- an approach that would make it more obviously the responsibility of CEOs and CFOs to cultivate, not just for CIOs to offer.
Posted by Malcolm Ryder at 10:04 AM
September 6, 2008
Management Improvisation
Normally, management authorizes actions based on information. But the most frequent and expected connotation of the word "manage" is the word "control".
Given that management is undertaken to provide some assurance of "success", this connotation may be why management effectiveness is most often sought in terms of proof of control. The problem with this attitude is that it ignores more than half of the range of opportunity that is available to deliberately effect valuable progress in an endeavor.
In the framework below, a much fuller range of management is identified, in a way that puts "control" in context -- and shows it to be not only more varied than we typically allow it to be, but also that it is accompanied by important complements and alternatives for driving progress. To start with, the framework shows how the usual old notion of "control" is probably contained by items (left column) that are not best called control but rather "organization".

As seen here, a new semantics of "controls" is proposed (and explained later below). And still, the value of controls is to promote success.
A simple observation that may capture the ambitions about success in management is this: if it takes scoring to win, intending to score is more essential than planning to win. In management, progress is essentially like scoring. Given that, strategy is fundamentally about how to enable progress under the prevailing circumstances -- which in turn means that as circumstances change, strategy dynamically identifies and solves the problem of sustaining an ability to progress.
This readiness to improvise the action -- to take the "fast break", acknowledges that the circumstances of the game are all incidental within the basic boundaries that others play within as well. That is, within the same standing set of boundaries, many separate games are played -- and one game never necessarily predicts the next even if it winds up resembling it.
In that regard, what may be most difficult about competitive strategy is, first, to identify the boundaries that most matter; and second, to invent relevant actions within that awareness. In a competitive situation, much of what truly surprises the competition is an action that they didn't foresee because they hadn't identified the pertinent boundaries yet. (This is exactly why we often tend to speak of game-breaking competitors as being outfits that "change the rules"...)
Arriving at the necessary awareness is the product of surveillance and analysis, to which much dazzling and complex effort is formally dedicated now through business intelligence and knowledge management.
But the framework above imagines it more simply. It is not hard to see that the three forms of "management affects" -- controls, influences* and standards -- correspond respectively to knowledge, communications, and references -- are different modalities of common information that generate authority and action. The question is, how are the modalities currently being used?
So, what we get from this framework, mainly, is another perspective from which to assess how we manage now and whether the right modes are applied in the right ways.
Along with showing how information figures in, the framework helps show that the nature of management authority ranges (bottom to top) from being externally objective (standards) to being more cooperatively elective (influences) to finally being internally directive (controls). This tracks the application of recognized authority from its lightest to its heaviest.
The layout of the framework also corresponds (left to right) to the difference between micromanagement (organization) and macromanagement(improvisation). From that viewpoint, when we think of managed action as execution, the span of potential methodologies shows up being quite broad. Assumptions about what is needed to realize a strategy are challenged by showing that taking management more "micro" is possibly an inhibitor, but really just a supporting option, not a defacto requirement. For example, we have to allow for the possibility that individual contributors, rogues or artists -- left unbridled amongst changes -- may be enough, or even best.
In short, the old notion of control is really micromanagement. And as argued by the framework here, a big implication is that micromanagement and strategy are possibly allergic to each other or at least require arbitration -- a thought that may be the cause of some fresh assessment of management.
* While the word "influences" seems somewhat forced here (and may be replaced in the future), the intended sense of it is as a degree of imposition, here being neither benign (like standards) nor compelled (like controls).
Posted by Malcolm Ryder at 4:57 PM