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Links to previous articles at the end
of this article
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In
the first
article in this series
I outlined the extent of the problems associated
with poor information content and offered a number of simple examples
that pointed to measures you could take immediately.
In
the second
article
I outlined some important principles which, if
effectively applied, will make a considerable difference to the quality
of information in most organizations. This will include being able
to get answers to far more management questions directly from your
operational systems and the ability to undertake more effective
executive level analysis with considerably less manual effort in
spreadsheets. You should also expect general improvements in
system operating efficiency at the business level including the
possibility of re-skilling staff for higher value roles or reducing
headcount with regard to low level tasks and reducing dependence on
external consultants.
This article discusses steps in applying the recommendations made in the first two articles.
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1. Strategic Discovery
The
first stage of any project to raise standards with
regard to the quality of corporate information should
always be to accurately define the Strategic Essence of
the organization. That is to define the Essence of
why the organization exists and how it thrives.
See the previous
articles on Strategic Essence for a discussion of
the principles that apply. See the article on --
"Determining
Strategic Essence"
for an easy to apply approach to defining the strategic
essence.
Once this is understood by the people involved in the project, (both
those facilitating the development of the content and those in the
organization who are being consulted), they will be able to focus on
what really matters. Understanding the strategic essence enables
the facilitator to focus the attention of both themselves and the group
on those areas of information delivery that will yield the highest
return on investment and make the biggest difference.
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2. Investigation
Then, depending on the scale of what you are currently envisioning,
undertake an investigation which might comprise the following:
-
Critical concerns process with executives in a group, or
in one-on-one interviews, to determine all information areas of concern;
-
Survey staff with regard to information
issues at all levels. The questionnaire might start with "please list
all areas of the organization in which you are
experiencing difficulty obtaining the information you need to carry out your work
effectively" or words to that effect;
-
Survey of all software applications, spreadsheets and manual
calculations to evaluate what information is being added to the data
from outside the main operational systems;
-
Inspect all key master files for gaps in information recorded in those
files. Look particularly at gaps with regard to structured
validated lists relating to master data such as products, customers,
suppliers, etc;
-
Document all potential gaps that have been identified, then review and refine these with executives and managers.
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3. Plan
Develop an overall plan for enriching your systems taking account
of the scale and complexity of measures required to address the
different points raised -- do this within a well-structured classification of
issues in terms of scale, benefits, etc.
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4. Awareness with regard to Precision
Start developing awareness in all staff with regard to Data
Precision with particular emphasis on data entry -- the enrichment will ONLY be as
good as the quality of the data capture skills of the operators --
greater precision is required for automated reporting at the strategic
executive level.
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5. Identify the small things that will make the greatest difference
Identify those small things that
will make the biggest difference, for example the Credit
Note Reason Codes or Golf Club sound discussed in the first
article
in this thread.
Some of these items can be fully defined in a short session with key
executives, managers and operational personnel, then refined, circulated
for comment and review, added as user defined fields and populated in a
very short space of time with significant beneficial impact.
Others will take more time and effort.
Always
start with a -- clean sheet of paper (empty spreadsheet) together
with a facilitator with well-developed classification skills working
with executives and senior managers.
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6. Streamline operations
Once you have added the key attributes to your master files and
accurately populated them you will start to find that some analysis that
is presently being undertaken in spreadsheets can be moved into your
formal information systems environment. It will then be possible
to generate this analysis directly off your transaction data or in your
data warehouse.
You will also start to see opportunities to undertake analyses
that previously seemed impractical in terms of complexity. You may
also identify ways in which small pieces of "strategically clever" software
can make use of this new data to build more intelligence into your
operations going forward.
You
may be able to offer new services, deliver existing
products or services faster and more intelligently,
generate new management capability -- there are all
sorts of opportunities that arise once one has this type
of quality thrive (doing the right things well)
attribute data. See the case
study on my website
.
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7. Master Classification Lists
The next step up from this is to look at your major classification lists:
-
Item class / item group / product
class / product group / ...;
-
Customer class / customer
group / ...;
-
Personnel class / personnel
category / personnel group / ...;
-
The General Ledger Master Chart
of Accounts frequently represents a major opportunity;
-
Whatever other major classifications your main business systems use.
In your initial investigation assess the extent to which there is
intelligent use being made of the existing list -- I have encountered
major multi-national organizations, including a major London based
multi-national, where these lists are so badly designed that almost
nothing of value is being undertaken using them.
In other cases organizations are using the data but it is so badly
designed that there is a mass of add-on spreadsheets and custom software
trying to unscramble the data.
In such cases you might directly implement the new lists in the
operational software but I generally advise that you first set up your
new table in the data warehouse, map the existing classification onto
the new classification and analyze your existing data with the new
classification. On an 80:20 basis this will require 20% of the
disruption that will be required to replace the list in your operational
software and give you 80% of the benefit. You can cascade the new
list into your operational software later, once you have built up a
body of experience with the new list in the data warehouse.
The
content of these lists should be designed using all the
principles set out in the previous
articles
in this thread.
The following is an example of the design of a taxonomy
for major components of mining equipment for a plant
maintenance application. Note that the taxonomy is filtered to
permit summarization based on the trailing periods "." in the code.
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A highly structured taxonomy and corresponding code scheme, such as
presented here, enables all sorts of structured analysis of the
data. These same principles can be applied to classifying any data
set.
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8. Comprehensive Cubic Business Model
One of the major challenges faced by most businesses is the accurate
attribution / allocation of costs and revenue to different operational
centers in such a way that there is a high level of ownership of all
performance metrics including costs. This should be accomplished
in such a way that the consolidation of financial and other performance
data can take place electronically in the reports off the primary
operational software systems and General Ledger with elaboration in the
data warehouse.
Central to this is a coding scheme
that I refer to as "The
Cubic Business Model
". This is a highly structured method of coding the Full
Chart of Accounts and, from that, other systems. This is done in
order to accurately model the full complexity of the business.
This code scheme is coupled to a highly structured Master Chart of
Accounts designed using the principles outlined previously. This
approach is the culmination of over 1,000 hours of Research and
Development and is coupled with custom software to fully implement.
An example of such a coding model is presented below:
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9. Capture soft issue measurements
An
additional refinement is to add soft issue measurements
to your data, for example based on market Critical
Success Factors(McDonald
) ,
worker satisfaction surveys, etc. Ideally the survey should have
around seven carefully determined Critical Factors (not a quick and
dirty brainstorm list). Then survey your customers as appropriate
with postcards, on-line forms, whatever suites your organization and
your customers. If possible do this in such a way that the survey
form / card / on-line form can be linked to a particular transaction,
for example through bar codes on postcards handed out at
paypoints. Provide some incentive for people to respond and then
capture the data in such a way that you can link it to your
transactional data in your data warehouse and analyze it.
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Conclusion
I hope that this article has given you new insights into how you can
gain considerable additional value from your existing information
systems.
I offer advisory services with regard to the application of these
principles and would be delighted to discuss how I might be of
assistance. Please see the special offer at the end of this email
or reply to this email with your contact details and I will connect with
you to discuss how I can be of assistance.
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
Mobile: +44 (0) 776-862-2875
Landline: +44 (0) 207-059-0007
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Articles published so far in the article series to which this email refers:
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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:
1:
Introduction
2:
Principles of Data Engineering
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Robust
Business Information 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 processes that make up
the approach. Thereafter the components will be discussed in more
detail. Articles to date include:
1:
Introduction
2:
Bill of Services, Laboratory, Go-live Certificate,
etc
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Ordering
To inquire about purchasing any of the above services simply click on
the link below each item, enter your details in the resulting email and
send it to me. If for some reason the email does not open please
just hit reply to this email and enter your contact details. I
will revert to you in the manner you request to answer your questions
and make arrangements.
Should you require further information please email me and I will be
delighted to connect by email, phone or Skype to answer all your
questions.
I look forward to being of service to you.
Yours faithfully,
James Robertson
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