Big Data - and what we'll do with it

The Gartner Hype Cycle

Big Data: it is all just hype until the clouds clear, business users can use it, and customers are served better because of it. When Big Data truly arrives as some products in the enterprise, business decisions will start to be based more on information and insight and less on gut feel (by the highest paid person who trumps everybody else). While we are waiting for the final crescendo of hype, I’d like to consider what we are going to do with all that new information.

Most rational people quietly accept that Big Data is mostly hype right now. Everybody is trying to stake a claim to their chunk of it and the chatter on social channels as marketers try to nurture the term into a real market is a source of big data in itself. The concept only starts being real as forward thinking CIOs focus less on the mundane IT networks and PCs and more on helping the business extract value from all the data they have access to using the tools borne of the hype. That is Big Data - the real use of analyzed data to help make business decisions, not just the technology hype about who has the best Hadoop or in memory database. Don’t know what these terms mean? You are a member of 99.999% of the business population, AKA normal people. Because you shouldn't have to know.

We are still in the early phase of the technology cycle for Big Data. The IBMs, SAPs and HPs of the world are still appealing to very early adopters who have money to burn on acronymic technologies that have yet to be formed into meaningful products with advertising friendly names. By 'meaningful', I want to imply that only a small team of consultants are required to install them and make them do something that regular business users and executives can make use of.

Currently most of the focus of the hype and actual product releases seems to be on the storage, manipulation, analysis and visualization of the data. I've seen little meaningful discussion about what I consider key problems:

• making information actionable
• taking business decisions from a concept through actual change
• providing communication and business records without generating a ton of irrelevant email and wasted report writing along the way

This is where business process management (BPM), customer relationship management (CRM), and case management tools come into play. But not as the tech vendors might have you believe. The value is not purely from the extra data they pump into the system from day-to-day management of customer interactions and employee collaboration.

Of course, having a good insight into your customers and business activities is great. Being able to manage the flood of required decisions coming from future Big Data analysis is equally important. How do you actively handle all the business information coming out of the business? Losing it in email is not the answer. Never actually following up with your newly revealed best customers is just a waste.

Handling the flood of new work emanating from real Big Data analysis should not be yet another chore. This is going to be valuable stuff we never had access to before. Managing the work actively through flexible processes, using tools designed to help people follow up on decisions that need to be made, this is a key component of Big Data. Its not currently the sexy part (for geeks at least). But it is the final component that ensures that all the investment in technology, analysis and experience is not just lost into meaningless email conversations that go nowhere.

Speaking of conversations going nowhere... follow me @consected on Twitter

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Automation, BPM, ethics and competition. Or serving customers better.

A recent discussion on the ebizQ Business Process Management forum asks: “what percentage of processes should be automated?”. In any given company, how many of those routine processes that get work done should be taken largely out of the hands of employees and made into software, or painstaking converted into automated manufacturing production lines? An interesting response came back came back from Emiel Kelly on the ethical implications of full automation. What happens to all the human-beings that previously had jobs and have now been phased out? This is not new news, but it did touch a nerve for me, as I was just reading George Orwell’s 1984, filling the huge gaps in my school history classes with some time skim-reading Wikipedia about Marx, and thinking how to avoid the “race to the bottom” in the world of software development as the low-cost offshore talent pool continually grows.

So, is there an ethical issue to automating business processes that can be fairly automated? The question is perhaps, “who benefits from business processes being automated?”. Should an organization be holding back improving its products and services, and providing a better customer experience because it is afraid of the moral implications of significant organizational changes? Or is it just hoping to cut costs to be more profitable and serve shareholders with larger dividends? Really the ethics of a corporation are guided by its own policies and mission statement, within the very loose boundaries of the law. If corporate governance suggests “employees first” then it can have an ethical issue with large scale automation.

The reality of the situation is that automation of processes and using BPM to reduce waste and improve efficiency are not big evil entities, out to strip every experienced employee of his or her pride. If BPM doesn’t improve the way a business performs and serves its customers, competitors in the marketplace will certainly ensure that hard working people in an 'overly' ethical company lose their jobs. Or those competitors will force that company into a position where business process outsourcing or offshore manufacturing become the only option. From the standpoint of supporting the local population with employment, outsourcing is no better when it comes to your complex ethical quandary.

Companies have to decide for themselves the right balance between:

• responsibility to their local labor-forces as potential employers of people
• responsibility to existing employees providing value to the company
• responsibility to shareholders to ensure continued investment to operate and improve
• responsibility to customers to meet obligations and attract new customers.

At the end of the day, the majority of people want a secure job for a secure wage. Free-market economics, the social safety net, government (big or small) and technology all have a part to play in meeting the needs of the local population. There is no easy answer. But you can guarantee that by avoiding automation and organizational change for fear of facing such ethical issues, a more ruthless competitor will walk in and still serve what were previously your customers better than you can. A company remains in no position to employ people when it has no customers.

Automation and BPM can help a company advance to serve customers better, at a lower cost. This subsequently ensures the ability to survive, thrive, innovate and subsequently employ a greater number of local people.

Chat with @consected on Twitter if you think I'm missing the point. 

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A Neaderthal named Grongus and Build Versus Buy

Ther Neanderthaler Fund, 1888

A Neanderthal was the first innovator of business productivity tools and started the road to the big question of “build versus buy”. Long before Bill Gates and Steve Jobs, our early evolutionary ancestor (let’s call him Grongus) started spending the time to make tools. He probably didn't do this because it was fun (although maybe Grongus had a little time to kill between hunting and finding shelter). Like many an innovator he got lucky, by observing accidentally that a broken flint could cut things, allowing him to shape a piece of wood to fit alongside another piece of wood and make a frame for a shelter.

So add some time, thousands of years and a plentiful supply of flint, and tools became a natural part of what drew us out of the caves. It was long after Grongus that anybody started to think about making the creation of certain types of useful tools a repeatable thing - a product. Early craftsmen were the innovators of products (pots, spears, bags, etc), and we call all thank Grongus for why the iPhone exists today and you work with a PC or Mac on your desk.

Despite this long history, still today we struggle with balancing the cost of creating custom tools and the significantly extra time it takes to make them into useful, repeatable products. Modern day craftsmen, the innovators of products come at a cost. And as consumers of products we need to remember that if we want more of our unique desires and requirements for a product to be met, we have to pay for that to happen.

Software is a tool and it is the coolest thing, since it lets us create products that would not otherwise exist. There is not a person out there who doesn’t use software, on a PC in the office, an Android in your pocket, setting your microwave to cook a TV dinner, come to think of it the TV itself, driving a car, buying a train ticket at the station. Then there are all the amazing websites, the places where you can buy almost anything without disconnecting eyes and brain from screen (except to dig down the side of the sofa to find where your credit card slipped). And of course there is the enterprise and SaaS software that allow businesses to run more automatically and workers to be more productive.

I’ll say it again: software as a tool is the coolest thing, and that's because of the things that we can create with it. It also highlights the ongoing balancing act between tool and product. It is the balance between the effort to develop useful websites, automate business processes and build databases of your customers, and the exponentially larger time to make that pile of code into a product so that almost anybody can create a website, optimize business process management, or configure a CRM system.

The tool/product balancing act is always hard for innovators. It requires a strong business plan that shows you can create enough user-friendly functionality to hide the nuts and bolts technology, at a cost that is much lower than the number of times you think you can sell this product to people who find it useful. From the customer perspective there is a compromise, especially with business software. There are things businesses want to do with software that can’t be done with pure configuration of software products, especially if your business is in the slightest way unique. Most business software allows for customization, for additions to be made by smart software developers using tools. But then again comes a cost.

Balancing tools with products may mean buying a more expensive and more closely matching product up front to avoid manpower for customization. Or it may be in buying that more expensive product you are wasting a ton of stuff you don’t need, meaning that starting with a lean, lower cost product and paying for some customization is more cost effective. How much you tailor your software for the bespoke solution is often just a matter of taste.

After all is said and done when comparing software tools and products, calculating the “build versus buy” equation never equals a cost of ‘free’. The time you are pulled away from making your business more successful while you learn and configure software products, or the time you pay others to do the job through software development, it all carries a cost. If you have strong requirements for a website, a business improvement application or a customer marketing automation tool, you can expect there will be a price, in expenses or opportunity cost. The only way this cost (of the product and configuration and customization) can be avoided is to reduce your requirements and expectations to virtually nil, so you can use a free, advertising supported, sign-up and go product. And compromize heavily to accept where there are gaps.

If you have unique business requirements, creating the perfect product you can configure absolutely to your needs is time-consuming. With free products you get what you pay for with a leaner product that requires it to be customized with additional effort. Do you want to pay more for a product so you can do the work yourself? Or will you employ somebody to do it for you? One way or another software developers, business analysts, project managers and YOU all hope to get paid. You have options that Grongus never had: it is just about finding the balance of "do it yourself" or "done" that works for you.

Challenged with a build-vs-buy conundrum or selecting the right software for your business? Leave a comment to share your thoughts.

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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.

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Methodology does not trump human nature

Methodology. An ugly word. When used alongside business process improvement, 'methodology' suggests that there is a logical approach, a preordained series of steps, a pretentious way of saying there is a method to fixing business process problems. Like a workflow for fixing your workflows. At a high level, I’ll concede that this may be reasonable, but get much deeper than “analyze, measure, improve, rinse and repeat” and the methodology is just a hack of a bunch of experience and skills (I hear the Six Sigma guys beating at my door already). A methodology when used without care can blatantly ignore human nature, organizational behavior, and sheer common sense. I prefer my methodology to be more a constructive generic framework.

Things get even worse when the eventual goal is a strictly defined, no nonsense Business Process Model and Notation (BPMN) map of the process. Any graphical notation for drawing ‘workflows’ that requires a 538 page PDF specification probably needs the support of an equivalently strict methodology so its developers don’t stray off too far from some form of best practice in drawing their pretty workflow diagram.

As we all know, there are many ways to actually handle the implementation of business process improvement projects:

• a business process management (BPM) tool to implement the workflow
• a suite of tools to draw, develop and analyze the processes
• a bunch of offshore software developers to produce some vaguely usable services for end-users
• some common sense guidelines for workers to help them guide the process better themselves
• any combination of the above

The reality of many successful business process improvement projects, independent of the implementation approach, is that the more methodology you try and stuff into the analysis and development of the ‘solution’ to your problems, the less room there is to maneuver when it comes to the actual reality of business processes: human nature and company politics trumps everything.

My proven approach (call it a methodology if you must) to business process improvement projects, (whether they depend on software development, business process management (BPM) tools, or plain simple task lists) is simple:

flexibility, iteration and communication

I unfortunately haven’t had the pleasure of re-engineering a process of 15,000 people, which likely requires some significant structure to making it all work. My experience is more for the 15 to 150 people processes, and to do them well often requires less methodology and more flexibility.

Think I'm completely wrong? Follow @consected on twitter and tell me!

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Focus on focus. Focus on customers.

With all the tweets and posts about 2012 highlights and 2013 predictions out of the way, I’m going to miss headlines like "Mayan’s preferred Microsoft", "Android buys iPhone" and "Big Data eats Samsung CIO at Las Vegas CES". But a heavy dose of reality (two weeks in, how am I going to make the next 50 really count?) has helped me focus on my focus - what does my company, and therefore what do I, do best?

Focus on the customer is the mantra of many of companies. Knowing your customer should be more than knowing where to send the bill. It includes organizing and making available information (not just data) of all types, to the right people, at the right time. What information?

• what are the customer’s business problems?
• why did they pick your service, solution or product?
• would they recommend you?
• what are their current issues or concerns with your product?
• when did they last call for support or help?
• what marketing communications do they receive and respond to?
• how are they connected to your other customers?
• are they interested in other products you have?
• where do we send the bill (and does it get paid on time)?

Customer focus is an information problem for sure. It is also a process problem. The problem is preventing the day-to-day, week-to-week issues from getting in the way of a great customer experience. Put simply, it requires the back-office operations staying nicely hidden in the back-office, not leading your customer to fret about how disorganized you are and having to deal with unnecessary issues. Simply put:

• are your bills sent on time, for the correct products, to the right place?
• is there an easy process for changing changing details?
• can customer support issues be easily tracked?
• are renewals and updates handled automatically?

Customer focus requires giving employees the power to service customers well. Your systems must support employees with all the information they need to make good decisions, and taking some of the load off them by automating some of the repetitive things that nobody really wants to do. Put this into a package and call it Customer Relationship Management or Case Management if you need a software industry term for it.

Recognizing how to change processes, information and technology is something that is hard to do when you and your employees are stuck in the middle of doing their jobs. An independent, outside-in view is often needed to recognize opportunities to work better and improve customer focus.

Follow me on twitter @consected and Google+ for updates on process, information and technology.

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Mobile and tablet technology is more than a distration

If you are new to this blog, welcome! If you have been following for a while, let me apologize right away for the break since the previous post. Over the last few months I have been focusing on the direction of Consected, to continue to serve our customers well, and to attract new opportunities. So you could say that my creative juices have been directed elsewhere. What does this mean for you, the blog reader? Hopefully, it means that you’ll be seeing more fresh and interesting posts from me on a regular basis.

Over the last couple of years, technology, both consumer and business, has been absorbed in the explosive mobile technology space. Consected and this blog have been following closely from as soon as the iPhone really started to impact the way we thought about the lump of plastic we wedge against our ears and shout at. The desperate catch-up scramble from Android devices led to some messy (and ongoing) patent disputes that resulted in interesting competition. Then the iPad hit the streets. The Netbook revolution that never really happened got swamped. Everybody wanted a slab of supercomputing plastic and glass. Consumers led businesses into what many would identify as the Star Trek tech era. After all, why would you want to lug around a monster laptop, with a charger and battery that weigh more than a large house brick, when you could enjoy having a slim, light tactile device in your hands at any time?

Businesses are still struggling with the idea of employees buying their own devices that trump the work PC, which they want to attach to the corporate network. The ‘bring your own device’ (often referred to as BYOD) struggle continues. As does the love-hate relationship with social media.

Consected and therefore this blog has been following all this, for the sheer novelty of it all, and because we know there is a real business (and technology and social) impact. For me, the mobile / tablet revolution has opened my eyes to several things:

1. The apps we have been using on desktop PCs are clumsy, overloaded, and frankly ugly. Users are demonstrating that they can do more with less on-screen clutter, fewer menus, and a UI you jab with a finger rather than carefully align with a tiny mouse pointer.
2. Business processes, those back office operations that make everything tick (or often grind) by day-by-day, need fresh thinking to accept that not only do our customers want to communicate with us everywhere, but so do our employees.
3. It has become really hard to operate without an always-on Internet connection, since ‘the Cloud’ is king. Everywhere. Anytime. On the train, in the car, in the office, at home, at a bar. Handling that offline time is where our devices (and our sanity) are failing.

So my focus for this blog, and Consected the company, is to really start addressing these things holistically. We have a lot of experience with mobile web technology now. Consected has some great mobile products to help others with that experience. The aim for all of us is to start pulling mobile technology, the use anywhere / use easily devices and apps, back into the business processes that are the life-blood of larger companies and organizations. From the point where we start to meet new potential customers (our leads), through to when we are serving them well and eventually dealing with issues that arise, online and offline devices matter. Facilitating employees to do their jobs better and more easily, and to remove (or at least hide) some of that annoying administrative stuff that detracts from everybody working well and being profitable.

That’s my round up of where me, Consected and this blog have been, and a little of where we are going. Our big exploration into the mobile space is part of a bigger-picture, and I hope it really is a great opportunity for everybody to work better.

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APE it up. Author, publish and market your own creative genius.

Have you ever considered writing a book? Is it your calling? Do you hope it will make you rich (and famous)? Are you trying to promote yourself to get extra business? Whatever has you thinking about putting pen to paper (or fingers to keyboard), you've almost certainly wondered about getting your work of creative genius published. And if you have read a book sometime this century, you've definitely looked at Amazon. And probably wondered if you can publish your book, yourself. This new book by the master of marketing, Guy Kawasaki and his tech sidekick Shawn Welch talks plain and simply about the benefits and pains of self-publishing. APE: Author, Publisher, Entrepreneur-How to Publish a Book is that book, which of course, is itself published by the authors themselves.

Personally, I haven't felt the urge to lock myself away to author a serious work. My simple endeavors into writing some free e-books on the subject of mobile websites and e-commerce have demonstrated to me that writing is a time consuming, and quite frankly wearying experience. But I have friends and family who are serious writers. And my wife recently led the production and promotion of a serious business book on Engagement Marketing for small businesses. So I read a review copy of APE with interest.

The book is honest when it suggests it be read quickly, from cover to cover the first time. To get a sense of what matters and what is involved in self-publishing, or even the initial writing and editing of a book,  skimming through the chapters in an evening can make you much more of an expert than you were previously. This is what I did. Each chapter of APE gets deep into the details of every step of the writing, publishing and marketing of books, so the skim avoids you ending up in the weeds. But even if you do so, the book handles those weeds in an unintimidating, easily accessible way. Sometimes even just skimming through, one of the many illustrations, screen-shots or photos catches your eye and you start reading about details that you'll possibly never need. But the writing draws you in as the personality of the authors shows through.

Overall, Guy Kawasaki and Shawn Welch have done an excellent job with this book. It is quite possibly going to become the self-publishing bible that it pitches itself to be. And its own success will be the best review and recommendation. So if you are serious about authoring and publishing a book, whether you are considering self-publishing or not, this could be the best ten dollar addition to your e-book collection there is. Find it on Amazon: APE: Author, Publisher, Entrepreneur-How to Publish a Book

By the way, I've been terrible at writing this blog recently for all kinds of 'overworked, underpaid' reasons. I promise in the New Year to do better! Happy Holidays / Merry Christmas to you all.

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Growing customers - advertise to attract, reward to retain

In the last week or so, Constant Contact has released a new 'deals' product designed to give Groupon and LivingSocial a run for their money. Or more importantly, Constant Contact's SaveLocal aims to help small businesses control the deals they offer. With discounts they can afford businesses attract new customers by rewarding current customers that share their coupons with their network. It is an interesting concept, and just one of the tools that small businesses can use to attract new customers. But do deals just downplay the value of what a business offers, cheapening the product and the vendor?

The concept of SaveLocal, is that by offering rewards to current customers for sharing your coupons with friends, you are more likely to grow a local and loyal new customer base. Today's New York Times online article, A Groupon Alternative Aims to Offer Small Businesses a Better Deal talks with Constant Contact's CEO to flesh out the details of the way it works. When it comes down to it, the argument is that small businesses typically thrive on referrals and endorsements from current customers, since the new customers they bring in are likely to provide repeat business.

Groupon on the other hand does the opposite, focusing on a mass of previously unknown wannabe customers sharing with their bloated social networks, in order to satisfy the entry requirements for getting 50% or more off. The Groupon masses are likely to just take the discount and never be seen again. Which means that your discounted rate minus fees still has to cover costs, because a businesses is unlikely to recoup much from a new customer base. If profit margins are over 75% on your products (remember that Groupon takes half of your discounted coupon value, so you effectively see 25% of the full price) then Groupon can get you a flood of customers really fast. Some may come back.

This is the issue with deals to attract new customers: like any discount scheme, the customer's expectations have now been set based on the discounted rate. In future they may not want to pay double what they paid the first time. And if a sub-standard service was offered, there will be no repeat business anyway. There are not many wins in this.

For years, this approach to attracting and retaining customers has worked for companies big and small:

market for awareness, advertise to attract, reward to retain

Advertising your products at full price, spending 25-40% of your sales on advertising may ensure that your brand doesn't suffer a devaluation up front. With new customers in place from advertising, the SaveLocal approach can then help keep them loyal, since they've paid full price for the products and now feel rewarded for coming back again and again, and encouraging their friends to do the same.

So it seems that deals can be seen less as pure devaluation of your products and more as rewards for loyalty, as long as you use them right. Huge discounts to an unknown crowd seems like a risky proposition. I think I'll stick to marketing with valuable content (does this blog count?!), using free business listings (Manta, Google Places and Consected's own Roaming Local), Google AdWords for online advertising (contact me for a $100 coupon to get started - no obligations), and rewarding my current customers in very individual ways.

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Business excellence - how do you know you've got it?

There is a concept of 'excellence' that is often used in business improvement to show that we are doing something so well that everybody agrees that we are excelling at it. On the BPM ebizQ forum this morning, the question came up of what is process excellence, and what is a key metric to show it?

A great response from Steve Weissman sums up the difficulty of measuring any form of excellence:

It's sort of like pornography in that – as Supreme Court Associate Justice Potter Stewart famously once wrote – it's hard to define but "I know it when I see it."

My thinking was along similar lines, that excellence is hard to measure but easy to know when you observe it working in practice:

I'll suggest that process excellence is an emotional response to a process or set of processes. "Happiness" could be the very untechnical metric.

If everybody is truly "happy" with an organization's processes, there is a good chance they are excellent. When we don't have process excellence, it is hard to measure but easy to observe: users don't fully adopt them and there is rarely additional investment.

As with anything we do in business, happiness with processes just means that they are delivering the results that everybody wants without getting in the way. So maybe I could have suggested an even better non-metric to define business or process excellence:

If you don't notice that you are performing a process or activity because it is so easy and natural, and it has the desired results every time, you have probably achieved excellence,

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