Big Data, gold nuggets and the email abyss

Gold on Wikipedia

Big Data is a big buzz in the software world. It is an attempt to create small nuggets of gold from a steaming mass of information. It is not a product or a theory, more a collection of tools and platforms for organizing, analyzing and visualizing masses of data in new ways. This isn't a post on which vendor has the best visualization, the best data management, or whatever. It just provides a quick glimpse into what Big Data is, and how one of its biggest failings is common to small businesses as much as the huge research establishments that coined the term.

Big Data has sprung out of the desire for corporations to gain more meaning from all the data they collect every minute of every day. The information they are collecting about customers, about activities people perform, what they buy and the decisions they make. It is based on techniques grown in scientific research such as the Large Hadron Collider (that enormous “atom smasher”), that attempts to make the results of its 150 million sensors producing millions of sets of data every second into something that mere humans geniuses can understand. It provides medical research with a ways to make the human genome project into something more than a big experiment, developing drugs to address real diseases. And of course, government, with ways to meaningfully understand the requirements, trends (and tax evasion) of tens of millions of citizens.

Big Data is one big funnel, with megatons of data flowing in the top, and ounces of precious observation dripping out the bottom. And just like any organization, dealing with any insight, issue or lead it is at this point the Big Data analysis organization falls over and resorts to... email. All that effort in understanding an aspect of client behavior, drug interactions, or financial transactions takes real human effort. The care taken with a valuable result it is to dump it into a large abyss of junk mail and Facebook notifications.

Large corporations, governments and small businesses are all alike; everybody suffers from the same issue. They spend a lot of time working on problems, finding leads, understanding clients, but have no way of really organizing the useful information into something meaningful, to ensure that the value in the data doesn't get lost. That the potential new customer doesn't just forget she asked for information on your website. That your biggest client doesn't get upset at poor customer service and Tweet #fail about it to the world. That the analysis of your customer’s spending patterns doesn’t just leak out the bottom of a busy executive’s iPhone messages.

Sometimes email is good enough, but often we all need just a little more organization of information, a defined business process to follow and some simple management of who gets to see what, when. This combination of workflow and simple tools is all that is needed to prevent your own Big Data gold nuggets disappearing into the email abyss.

Follow more of my information management, Big Data and process rants: @consected on Twitter. Or ask me about how to prevent the precious information in your business leaking away.

A post from the Improving It blog

Let us help you improve your business today. Visit www.consected.com

Reporting - or processes 'gone bad'?

My clients have a range of experience in improving the way their business processes run. They range from "expert" to "what's a business process?". After a little while working together, they generally come to the agreement that the Phil Ayres view of the world is that "everything is a process". Not in a bad, bureaucratic way. Instead, if there are a series of steps to be followed to achieve a task, and you have to do the same work more than once, why not make it easier for people by providing them guidance for what to do next, and maybe even automate a little to remove the drudgery of some really repetitive activities? Not surprisingly, I would treat many of the reporting functions that businesses perform as potential processes, gone bad.

Businesses create reports of everyday activities for many reasons. They believe that it is to provide supervisory control over the work that people are doing, to make sure that nothing is missed. In reality, mostly reports are created and used just because that is the way the back-office computer system manages can tell them what is going on. Why reports? Because it is easy for a system to put together a snapshot of data of the status of work, and dump it onto paper. Many systems have very little understanding of a business process, beyond the series of options they present on screen during data entry. A report is the best they can do.

Reports can be really troublesome for businesses. They represent a queue of work from yesterday, or last week. The information on them is already out of date, and there has already been a lag in handling any of the items on the report. Sometimes, batching up work like this can lead to more efficiency (i.e. less overall manpower required to finish the work), because one person plods through each item in turn without having to thing too hard. Sometimes, it just means that people get upset waiting for a response to a simple question. Really, if a report represents a list of work that is currently outstanding, and tomorrow it will show the same work with a different status, how does it really help us, beyond showing us that we have work?

Of course, sometimes you just can't get away from reports. They make sense. They show what is going on in the only way the back-office systems know how. In many cases, managing people from the information on a report is going to lead to trouble. In other cases, I have been asked to put processes around the distribution of reports, to make sure people actually read them to know what work they are supposed to be doing. In some cases, this is acceptable - its just a checkbox that says, "I did my review". In other cases you end up reporting on reports of reports.

Consider the reports you have in an organization. Look at the ones that are handed out to people to check off their work as they do it during the day. Behind each line on that report is often a business process. The person doing the work knows that process. But if that person takes a long trip to Hawaii, do you know what that process is, beyond highlights on a printout? Wouldn't it be better to notify people of the work sooner, and guide them to completing it faster? That is what business process improvement gives us. Escape from "processes gone bad".

A post from the Improving It blog

Let us help you improve your business today. Visit www.consected.com

Is the process app store the future your business processes?

Image via CrunchBase"Is the process app store the future of BPM?" was today's discussion on the ebizQ business process management forum. Should we buy business processes (such as travel expense processing) in an online app store, the same as we buy Angry Birds for our iPhone? As much as we would all like to believe that process applications can be delivered this way, getting a replacement business process implemented is tough. You have to:

• find a process application that fits your needs
• get it customized, configured and generally implemented
• manage the change of people's attitudes and activities internally to get it to work. 

Since business processes are so much part of the DNA of a business, implementing new ones makes them extremely hard to deliver as apps. Even a simple travel expenses process or a holiday/vacation request process is done in a million different ways by a million and one businesses. Why would they want to change the way they work to fit some cheap application they bought online?

My own experience, putting pre-built process apps out on Google Marketplace is that even if small and mid-sized businesses (SMBs) come to take a look, they can rarely spend the time to really dig in and understand what the app can do. A cursory single look, a "this sounds hard" internal discussion is about the best you can expect. No matter how much person-to-person hand holding you offer (and trust me, I've offered), the typical app buyer in a small business just doesn't have the time, resources or motivation to get a real process change implemented. As Ian Gotts commented on the forum:

For an SME this is too hard. Instead, they continue to run on "staff heroics"

Now I'm not saying that the apps we deliver at Consected are always perfectly simple to use! The ultimate flexibility that is rightly demanded by the buyer whatever size company, balanced against the "so simple a caveman could do it" need, makes these applications more expensive to develop than the $4.95 per user per month cap that seems to be the limit anybody will consider (often less). 

The next issue really comes from a complete lack of change management being possible when you sell through an app model. Being able to work with a customer remotely who doesn't have time to really speak to you, or any real wish to speak to you, makes any sensible change to the current business processes really hard. The best business process implementations come with a change to the way work is done, not just moving it "to the cloud". Apps give the impression that we can just install and go.

Apps need to be really well packaged if they are delivering business application functionality through a software as a service (SaaS) model. Which means that the value of a flexible process environment is lost on the end user, because too many options just get in the way. But without the flexibility they can do their job the way they need to. Somebody will work out the magic to this, though its definitely harder than it appears! 

Successful app vendors have to play a numbers game and sell large volumes to make any real money. And business processes seem to rarely fit the one size fits all requirement to make this happen. So please feel free to take a look at the Consected Instant Apps. They are free or cheap (by enterprise software standards). And although they require a little time, thought, and some communication with us to get them to really fit your needs, they can make a huge difference to your business.

A post from the Improving It blog

Let us help you improve your business today. Visit www.consected.com

Justifying business process improvement without being a fool

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This year is the fifteenth that I have been working with business process management, document management and business information systems. Or when people ask what I do, "I'm in IT, but I can't fix your PC". Over the years not much has changed. The same business problems are still there. Companies still have an over-reliance on paper or email, because it is just too hard to get started in a process improvement project. Communications with customers are still on paper. Yep, you can get your bank statement online, but that isn't a transaction that results in a business process. Nope, processes are still manually guided by individuals driving a desk and an email account. Am I a fool to think that people want to change this?

In the last two years, I have been focusing more on small and mid-sized businesses. They seem to offer a great opportunity, hanging on through grim economic times, and needing some attention to be able to work better. The problem is that there is never a lot of money or time to spare in small businesses to change the way things are done. Rightfully, people focus on doing what needs to be done right now, trying to grow the business (or just stay afloat). The idea of adding some process rigor, to make it easier to do common repetitive tasks in the future, just doesn't figure. In many cases, a process incorporates a grand total of one employee and a customer. A checklist is a more effective process management tool than a formal workflow, and managing information, data and documents with minimal hassle is a much bigger issue.

Mid-sized businesses have process needs that are reminiscent of the processes I have worked with in giant corporations. Since the multinational monsters are always split into business units and smaller departments, the scale of what needs to be done is often the same as the requirements of a mid-sized company anywhere in the world. Which is great news, as that means I have some great experience to offer these smaller companies from my time spent with the big guys. 

The problem is this: it is far more transparent where the cash comes from to pay for business improvement in a mid-sized company than a multinational corporation -- the owner's bank account. In large corporations, you can make an ROI and justify it two levels above you, and you're still not even in the peripheral vision of the CEO. In a mid-sized company, the ROI has to be real, and offer real results.

So am I just fooling myself trying to work with mid-sized businesses? Or will the lessons of transparent decision-making make me into a better process improvement specialist? My job is no longer in fabricating an ROI for an enterprise software salesman to present to his prospect in the department of a huge company. My job is to recognize that mid-sized businesses have process problems that need fixing, in sensible, justifiable ways. And if you can't justify making a change, things will carry on fine just the way they are. 

Reality is, in 15 years my job hasn't changed. I'm still "in IT, but can't fix your PC". I just have to focus on the real business problems, not the ones that used to make a salesman a fat commission!

A post from the Improving It blog

Let us help you improve your business today. Visit www.consected.com

Why are we afraid of accounting processes?

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I didn't question it too deeply when I was a product manager for an enterprise Business Process Management (BPM) software firm, although it was always there nagging at me: why don't we do more work with accounting systems and the Finance team in general? They are core to the running of a business, but BPM (at least the stuff I worked with) generally tries to avoid those types of business problems. Looking back on it I think there are two easy reasons. But before I get to them, I'll repeat to myself and others the justification that always came out from the marketing team's collective mouths:

Our solution, ExeClassyProcess720 (made up name, and now waaay uncool as any teen snowboarder will tell you - since everyone is landing 1080's now) focuses on the bigger business problems. You know, like the ones that address the customer facing transactions which when done consistently well help companies attract new clients and make current clients more profitable and happier. That back-office stuff doesn't interest us because that involves working with accountants, and they never have any money to spend.

That's a fictional description of how enterprise BPM justifies any particular niche it works within. The real issue is not the first piece of the discussion, which may be a very realistic way of positioning an individual product if that's where its strengths are. But it is the second piece that really gets to the meat of the matter: it is perceived that any team that reports to the CFO is unlikely to have any money to spend on improving how they work. Is it really true? After all, Oracle seems to do a pretty good job making money out of businesses requiring Financials packages and all the related modules.

So BPM software vendors go the easy way - they look for the obvious issues that they can solve, then when they run out of the easy stuff they get stuck. So during a vendor's decline, it goes down justifying to itself why it can't address the thousands of other process problems that appear in a business, because the mind-set is still locked in the "can't go near the Finance team" mode.

Back to my two easy reasons why BPM avoids anything that has accounting software related to it:

1. BPM'ers are scared of accountants as we don't know their business
2. BPM doesn't play well with other software, despite all the hype

Why are BPM'ers afraid of accountants? We've been pretending we know or can learn other people's business better than them for years, so why can't we raise the same level of BS with accounting? Probably because the numbers don't lie, whereas there is such a lack of formal measurement in other parts of the business that its easy to "bluff it and hope" when fixing some of those other business problems. 

The reality is that accounting packages really don't address well many of the inputs and outputs related to the financial running of the business and could really do with some help. I'm thinking of travel expense reports, accounts payable invoice handling, and even the financial planning and forecasting process. These are ripe opportunities that any BPM'er could address, if they could get over their allergy associated with accounting.

The fundamental issue I think is that enterprise BPM is put off by the fact that an accounting system exists and is the guardian of its data. Business processes can only touch that data, feeding it, watching it for an hour or two like a good aunt or uncle, but always returning it safely and soundly to the watchful accounting system when its time is up. Despite all the 'web services' hype, BPM tends to be greedy. It wants to consume that data, chomping on those healthy numbers and mixing it with its diet of junk food data from operational processes. If it really can regurgitate those numbers in any useful form, they needs some really good cleaning up before returning them home.

Despite the rather gruesome imagery, BPM just doesn't play well with others. The accountants that BPM'ers are afraid of will make them look dumb, and the data that those accountants so carefully enter into the accounting system are just too pristine to mess with in a BPM solution. So BPM software and practitioners back off, and wonder why the big consulting firms just get bigger. 

For small firms like Consected this is great. It leaves plenty of room for financial management systems, ERP, and big consulting firms to do such a bad job that eventually the CFO will recommend some new investment in technology, with a proven ROI (imagine that in other parts of the business). At that point the non-BPM crowd get their chance to show that business processes can be made better where there is an accounting system and that we can all play well together.

A post from the Improving It blog

Let us help you improve your business today. Visit www.consected.com