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Links to previous articles at the end
of this article
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In the previous article I outlined the extent of the problem associated
with poor information content and offered a number of simple examples
that pointed to measures you could take immediately.
These issues hinder executives and managers from obtaining reliable
answers to their questions when they need them, generate substantial
manpower overheads and generally impede the strategic essence and
therefore competitiveness and profitability of the business.
I
also touched on some more complex problems that would
take longer to address but which would produce
substantial lasting value IF undertaken correctly.
If
you have not yet read the previous article it is
available on my website.
Today's article discusses some principles associated with this field
that I call "Data Engineering" or "Strategic Information Architecture".
In reading this article you may think that you have a full
understanding of what I am writing about. You might even think
that you have what I am referring to. Please consider the
possibility that I am describing a level of excellence with regard to
precision and method that goes well beyond what almost every
organization on the planet achieves in their business information
systems. Please also consider the possibility that IF you can
really get a handle on what I am writing about you will add considerable
value to your organization.
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Principles
Following are some principles that apply to this field:
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1. Strategic
Determine the strategic essence of the business.
Remember, when you engage with a document or a list most people read in
detail at the start and skim progressively as they run out of time.
In building the hierarchies of your lists place the most fundamentally
strategic categories at the top of the list, the things that matter
most. A powerful way of getting the entire organization to focus
on the strategic essence of the business, even when processing mundane
transactions.
This also ensures that, at the executive level, when you skim the lists
and resulting reports the information that is most important to you is
at the top of the list, where you first look.
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2. Engineered
A high level of rigour and precision, finely granular, down to the "last nut and bolt".
Carefully thought out.
Facilitated by a person with considerable information classification
and cataloguing experience who demonstrates intuitive understanding of
your organization and the subject matter being modelled.
Put
considerable time and effort into the design -- a
well thought out design can last for ten to twenty years
if it is based on the essential elements of the
business, see
video on my website.
There is a huge spectrum of quality in this field, this is NOT the
place to start experimenting. One can do material damage with a
weak design and deliver huge value with a strong design.
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3. Precision
Attention to detail, careful wording, logical grouping, accuracy of
hierarchy and coding, respects and works with strategic essence and
cognitive span.
The opposite of "sloppy" which applies to just about every configuration I have ever seen.
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4. Taxonomy -- hierarchy
Hierarchy as in:
PLANTS
...
ANIMALS
HORSES
ELEPHANTS
DOGS
CATS
Leopard
Lion
Domestic Short Hair
etc
A logically structured semantic (word) hierarchy that accurately reflects the real world.
For
a practical example click here
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5. Conventions
I apply a diversity of conventions in building these lists. The
indents above coupled with capital letters for heading level items and
proper case for posting level items makes the lists easy to scan and
interpret.
Where the software permits, the indents should be mirrored in the code
scheme with trailing periods or, as a compromise, zeroes, making the
code easier to scan and analyze.
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6. Structured codes
People only understand meaningful text, computers only
understand binary digital patterns. The hierarchy is for the people and
the code scheme is for the computer to manipulate. The code
must mirror the hierarchy, I use trailing periods "." wherever possible.
One digit in the code for every level of hierarchy.
Depending
on the list -- mnemonic alpha codes where these make sense or
numeric where mnemonic is impractical or hybrid alpha-numeric codes.
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7. Cognitive span
The average human being can almost instantly grasp the content of a
list of seven plus or minus two items. A person with a limited
education will typically grasp no more than five items, someone with
considerable education and intellect may be able to grasp a list of nine
or at most ten items. Seven is the optimum.
Every hierarchy should be structured with between five and nine items
at every level of the list with ten or more items accepted only in
extreme circumstances. If necessary restructure the hierarchy in
order to comply with this rule.
Respecting cognitive span makes it easy to scan large volumes of
data and easy to navigate -- vital for effective decision support.
Provided the levels are well thought out and correlate closely with the
strategic essence the list will be easy and effective to use, to post
to and to roll up from a reporting perspective.
At all times the strategic essence is the highest priority to focus on.
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8. Answers to questions not previously asked
Always remember that you do NOT know the questions that will be
asked tomorrow, let alone the questions that will be asked in five or
ten years' time.
The defining complexity is the real world. Any form of
"clumping" -- lumping items together because it is too much trouble to think things
through to the full level of detail simply guarantees work for
mid-level staff with Excel in perpetuity. The detail is always
there at the time of posting, yes it may take a bit more time to train
operational staff, but they actually work with the detail anyway so it
is really NOT that much of an issue provided the hierarchy is well
thought out and makes sense. Posting actually becomes faster!
Once you have the transactions analyzed accurately and in detail then
you can ask new questions with confidence that you will find the
answers.
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9. Model the REAL world
In all of this it is vital to accurately model the real world.
The real world IS complex and detailed. Accurately reflect
complexity in your hierarchies and your code schemes and the software will be easy
to use and the databases will become easy to query. Complex
reports will become straightforward.
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10. Electronic drill down all the way from the Board summary
A fundamental principle relating to this approach is to be able to roll
up the operational data to a single dashboard on the screen of the
Executive Boardroom with drill down all the way to the finest detail
electronically with a series of intuitive mouse clicks.
With high level strategic executive input and associated facilitation
it is possible to configure your systems so that this becomes achievable
on a consistent basis -- provided you make the data engineering investment
required.
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11. Clever software that leverages the clever data
Once
you have done the above it is then possible to easily
conceptualize and build pieces of software that are
finely tuned to your business in ways that can provide
dramatic competitive advantage and greatly improved
profitability refer
to the case study on my website.
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Application of these principles
will give rise to a high value solution that will last
for years. This will be coupled to improved operational and strategic efficiency and leveraged growth. This growth will be achieved with the
current staff complement or staff complement will be reduced if your
organization remains at current size of operation. These principles will
also greatly extend the life of your existing systems.
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To follow
I aim to follow this article with further articles discussing in detail the implementation of this approach.
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Conclusion
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There is NOTHING
more important in your systems than the configuration and master data that
we have been talking about and, correctly addressed, remediation of these items
can make a significant difference. This should be undertaken to high
standards of precision, as you would undertake in any other form of
engineering endeavor. This will open the door to add very substantial value to
your organization and unlock significant value from your existing business
information investment.
A hundred fold increase in information value is entirely achievable
and, coupled to this, greatly improved management efficiency and
business competitiveness, leading to increased profitability and growth.
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I offer advisory services with regard to the application of these
principles and would be delighted to discuss how I might be of
assistance. I also offer a light touch diagnostic service to
evaluate the state of your information tables and advise how to
remediate them.
If you have found value
in this article please forward to colleagues and
associates.
Yours faithfully,
Dr James Robertson PrEng
James A Robertson and Associates Limited
Assisting clients to thrive through effective and efficient application of Business Information Systems
Seeking
to serve the Almighty Creator in all things
Mobile: +44 (0) 776-862-2875
Landline: +44 (0) 207-059-0007
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Strategic Essence -- The Missing Link in Business Information Systems
A discussion of how strategic essence should inform all business
improvement projects and particularly business information system
projects. This thread is intended to discuss the analysis of
strategy, the planning of strategy and feeding strategy through into
business system specifications and the management of projects.
Articles to date include:
Summary
1:
Strategy Defined
2:
Differentiation
3:
The Essence IS Different
Determining
Strategic Essence
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The Real Issues in Business Information Systems
A discussion as to why business information system (and other business
improvement projects) fail to deliver on expectations or fail outright,
together with discussion of the critical factors that must be taken into
account in order to achieve successful outcomes. This thread is
intended to progressively discuss more hands-on specifics of achieving
high value outcomes and builds on the Strategic Essence series.
Articles to date include:
1:
Introduction
2:
The Real Issues -- Mythology and Lack of Executive
Custody
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Strategically Enriching your Business Information Systems
Discussion of practical specific measures that can be taken in order to
greatly improve the information yield of business information systems
at both the operational and executive strategic level. A number of
simple steps that can be taken immediately and more complex measures
that can be taken over time. This thread is intended to discuss
increasing business system and data warehouse value yield using
techniques that lead to significantly improved business intelligence
capability, including support for the ability to "obtain answers to
questions we had not previously thought to ask". This builds on
the content in the Strategic Essence and Real Issues threads.
Articles to date include:
Introduction
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Robust Business Systems Procurement
In order to fully apply the methods and principles discussed in the
threads above with regard to new systems it is vital that a robust and
effective approach to procurement is applied. This requires a
tough procurement approach directed at achieving a tough business
outcomes orientated project that ensures a high value outcome.
This thread is intended to discuss the components of such a procurement
approach, including the individual documents and process that make up
the approach. Thereafter the components will be discussed in more
detail. Articles to date include:
Introduction
Part 1
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