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  • The Power of Data – Collaboration

    It’s my data!

    No doubt – there is tremendous value in data. I use data collected from a small sensor in my bike to improve my cycling performance. Factories leverage data to keep their machines humming as long and as efficiently as possible. Unfortunately, most companies have historically tried to keep data for themselves. Sharing was a foreign concept. Security concerns and cultural barriers (“It’s my data!”) have fostered this environment.

    “Share your knowledge. It is a way to achieve immortality.”― Dalai Lama XIV

    Collaboration

    What if we could share critical data with relevant stakeholders in a secure and effective way? Would we be able to improve our performance? Take a look at this short video to see what can happen if you start sharing subsets of your data. It is a fascinating scenario.


    OSIsoft will release this new technology later this year. Stay tuned for more updates.

    How could your business benefit from collaboration? What type of data are you ‘hiding’ from your stakeholders?

  • Catching up with David Axson

    Performance Management professionals around the globe know David Axson. David is an exceptional consultant, public speaker and author. His bestselling book Best Practices in Planning and Performance Management can be found on most bookshelves. In the past year David has gotten a bit quiet. We were able to catch up the other day.

    Christoph: In the past, you used to jet around the planet, write books, blog and speak at a ton of conferences. But you have gotten a bit quiet lately. Where have you been hiding the past year?

    David Axson: Good question – I joined Accenture in June 2011 and obviously spent a few months getting settled in, however things are getting interesting again with the Accenture engine behind me I am now leading thought leadership efforts for our finance consulting team globally.  From a market standpoint I am spending a lot of time communicating with CFO’s of large global companies about the real power of analytics, big data and perhaps most importantly how finance can be a true value generator within the business. 

    Christoph: In your last book The Management Mythbuster you take a humorous look at popular management practices such as lean management, six sigma and budgeting. Most of them have not lived up to the hype that once surrounded them. Are there new management fads that we need to be aware of today?

    David Axson: Well at the moment it seems like the solution to every problem is cloud, big data, analytics and mobility. We need to move beyond the broad topics to get very specifc about how these mega-trends can be applied practically to drive growth and profitability.  We need to explain to a CEO, CFO, CMO or general manager what these trends mean to them and their organizations otherwise the hype will remain unfulfilled. 

    Christoph: Speaking of management fads, how do you feel about Big Data? If we trust the opinion of some industry analysts, big data is likely to create millions of jobs while also fixing a ton of problems. Do I need to worry about big data? Can big data feed my family?

    David Axson
    David in action. Professionals love his workshops and keynote speeches

    Christoph: Without a doubt, analytics is an important discipline for most companies. Today, have the ability to collect more data than ever before and we also have the tools to put that data to good work. Where do you see the real opportunity for companies today? How can they leverage analytics for their advantage?

    David Axson: Focus, focus, focus.  I have moved beyond analytics to the notion of applied enterprise performance analytics whereby an analytics strategy looks at the impact analytics can have on specific business decisions such as market selection, product and service portfolio management, customer profitability, operational excellence and the like.

    Christoph: Analytics is a relatively young discipline. It did not appear in the curriculums of universities and colleges in the past. What type of new skills do managers need today and what can they do to acquire them?

    David Axson: Well analytics embraces a number of disciplines such as statistics, operations research, portfolio management and financial analysis.  They key now is how these skillsets get applied through the analytic tools that are now becoming available.  Managers need to understand how to translate the potential of analytics into reality.  One technique I use is to explain how analytics can be applied to drive positive impact on specific line items in the P&L and balance sheet.  

    Christoph: When we speak about analytics, we also need to speak about technology. What is the most popular analytics tool today?

    David Axson: Not sure it is that simple, it is about applying the right tools for the right job. IT needs to help the business match tools to tasks.  It’s a bit like doing a DIY job, you don’t just a hammer for everything.  

    Christoph: You not only write books, but you also love to read them. What’s on your Kindle today?

    David Axson: Just finished The Signal and the Noise by Nate Silver – excellent read about statistics, analytics and forecasting in a real world context. 

    Christoph: Can we expect another book from you in the future?

    David Axson: Funny you should mention that.  Talking with my publisher about a new book focused on Enterprise Performance Analytics that takes a very pragmatic approach to applying analytics to decision making. Watch this space! 

    Christoph: Thanks for the interview, David!

    I had the pleasure to work with David for over five years and ended up delivering keynote speeches with him in over 20 countries. You can find out more about David on his Amazon.com page.

  • Naked Statistics – A book review

    Scary Statistics

    Amazon.com recently recommended the book Naked Statistics: Stripping Dread from the Data. Since I already knew the author Charles Wheelan from his awesome book Naked Economics: Undressing the Dismal Science (Fully Revised and Updated) I went ahead and bought this one for my Kindle. Great decision – it is one of those books that is fun to read while also adding (hopefully) long-lasting value. To make it short: Business Analytics professionals should read Naked Statistics. We work with data on a daily basis and there is an increasing emphasis on Predictive Analytics. Professionals therefore have a growing need for a decent working knowledge of statistics.

    All Greek?

    Many people have a hard time with statistics. College and university courses usually throw around a wild mix of scary looking formulas containing lot’s of Greek symbols. It certainly took me a while to make sense of my professor’s scribble. As a result, lot’s of people develop a fear of of this subject. Naked Statistics, however, demonstrates that it is possible to teach a seemingly complex topic in a simple manner. Charles Wheelan provides a journey through some of the most important statistical concepts and he makes it fun and easy to understand.

    The content

    Naked Statistics covers a broad range of the most fundamental statistical concepts such as median, standard deviation, probability, correlation, regression analysis, central limit theorem and hypothesis testing. Each concept is explained in simple terms. The author also uses a mix of fictitious stories (some of them are funny) and real-life examples to show how things work and why they are relevant. Math is kept to a bare minimum – you will only find a few formulas in the main text. Reading is easy and fun. I was surprised to find that I devoured many chapters late at night in bed (I don’t usually read business books that late).

    NormalDistributionSD
    The normal distribution – no need to be afraid

    Naked Statistics

    Naked Statistics is a great read. It provides you with a sound working knowledge of statistics and it actually motivates you to dig deeper (I pulled out one of old text books). For those people who know statistics, this book can help you brush up on some concepts. Analytics professionals might also want to recommend this read to colleagues who start working with predictive analytics and other advanced tools. Students should buy a copy before they attend statistics classes – they will certainly be able to grasp the more advanced subjects more easily. I wish I had had this book back at university. It would have saved me some sleepless nights. Two thumbs up – Charles Wheelan does strip the dread from the data.

  • Updates and greetings

    Hello again!

    Wow. I cannot believe it. It’s been two months since the last post on this blog. Thanks to all of you who reached out to find out why it’s been so quiet here. There is a simple reason. Sometime around New Year, I realised that I was due for a creative break from writing. It’s a ton of fun to run a blog with so many awesome readers. Still, writing got a bit harder in the last quarter of 2012. I decided to take an inventory: 196 posts over 1.5 years. That’s a lot of ink on paper! Blogging should be fun and the decision to take a step back and focus on other things for a while was surprisingly easy. I have used the time to start a few different projects including a new photography blog along with a new posterbook publication.

    Christoph Papenfuss
    A creative break

    Next steps

    Is the Performance Ideas blog done? Nope. I will be back in a while. The focus will probably shift a little bit. In my new role at OSIsoft, I focus on real-time data and the according analytics. There are a ton of interesting stories and best practices.

    Guest posts

    In the meantime, I’d like to invite you to submit guest posts, ideas, inspirations and stories. Stay tuned for updates!

  • Big Data – Can’t ignore it?

    Big data

    2012 is almost over and I just realized that I have not yet posted a single entry about big data. Clearly a big mistake – right? Let’s see: Software vendors, media and industry analysts are all over the topic. If you listen to some of the messages, it seems that big data will create billions of jobs, solve all problems and will make us happier individuals. Really? Not really – at least in my humble opinion. It rather seems to me that big data fills a number of functions for a select group of people:

    • It provides analysts with a fresh and fancy-sounding topic
    • Media have something big to write about
    • BI companies obtain a ‘fresh’ marketing message
    • Professionals can have ‘smart’ discussions
    • Consultants can sell new assessment projects

    Big data – really?

    I do apologize for sounding so negative. But I have a hard time finding big value in this big data discussion. Please don’t get me wrong – I would be the last person to deny that there is a tremendous amount of value in big data. But it does not deserve the hype. On the contrary, I personally find that the current discussions ignore the fact that most of us do not have the skills to do big data. We need to get the foundation right and make sure that we can tame the ‘small data lion’ before we tackle the big data Gozzilla. Don’t believe me? Consider the following:

    • Spreadsheets are still the number one data analysis tool in most organizations.
    • Managers still argue about whose revenue and unit numbers are correct.
    • Knowledge workers have yet to learn how to make sense of even simple corporate data sets.
    • 3D pie charts are floating around boardrooms.
    • Companies spend over 6 months collecting and aggregating budgets only to find that a stupid formula mistake messed up the final report
    • Hardly any professional has ever read a book or attended a course about proper data analysis

    Pie Chart

    Here is the thing: Dealing with big data is a big challenge. It will require a lot more skills than most of us currently have (try finding meaning in gazillion TBs of data using a 3D pie chart!).

    A big data problem

    Earlier this year, I acquired a 36 megapixel camera. You can take some amazingly gorgeous photos with it. But it comes at a cost. Each photo consumes 65-75MB on my sad hard drive. Vacations now create a big data challenge for me. But guess what: this camera is anything but easy to handle. You have to really slow down and put 100% effort into each and every photo. 36MP have the ability to reveal every single flaw: The slightest camera shake is recorded & exposed. Minimal focus deviations that a small camera would not register, kill an otherwise solid photo. In other words: this big data camera requires big skills. And here is something else: The damn camera won’t help you create awesome photos. No, you still need to learn the basics such as composition, proper lighting etc.. That’s the hard stuff. But let me tell you this: If you know the basics, this big data camera certainly does some magic for you.burj khalifa

    Big data – what’s next

    Ok. That was my big data rant. I love data and analytics. No doubt – there is a tremendous amount of value we can gain from those new data sources. But let’s not forget that we need to learn the basics first. A Formula 1 driver learned his skills on the cart track. At the same time, there is a lot of information hidden in our ‘small data’ sources such as ERP, CRMs and historians. Let’s take a step back and put things into perspective. Big data is important but not THAT important.

    With that: Thank your for following this blog. Happy holidays and see you next year!

    Christoph

  • Recommended reading for December

    Recommended reading

    December is always an interesting month. Analysts, software companies and journalists post a ton of predictions, reviews and opinions to celebrate the start of the new year. 2012 is not different. Here are a a few posts that I highly recommend reading.

    Most influential visualizations

    Tableau Software without a doubt knows a lot about data visualization techniques. That’s why I happily viewed one of their new presentations out on Slideshare. It’s called ‘The 5 most influential data visualizations of all time”. Some of the featured visualizations have been discussed by Stephen Few and Edward Tufte, but it’s well worth spending a few minutes reviewing and thinking about how they changed the course of time.

    The statisticians at Fox News

    Are you ready for some hilarious reading? Well, here it is. The good folks over at the Simply Statistics blog compiled a number of data visualizations that appeared on Fox News (don’t worry – this is NOT about politics). Most of the featured charts are flawed from a technical point of view, but it turns out that they do an excellent job of communicating the intended message (which can be very different from what the actual data says….). Read with a smile but don’t loose focus on the idea that there is an important message! Most of us strive to produce visualizations, dashboards and reports to provide an accurate portrait of reality. But we can also twist this around and do the opposite: confuse and mislead. You might also want to take a quick look at the comment section of that blog entry. That’s where the post starts getting political.

    Simply statistics
    One of the charts that is being discussed.

    Nucleus Top Ten Predictions for 2013

    Nucleus is one of those research houses that produces very interesting reports. I don’t always agree with the stuff that they write, but it is certainly amongst the most tangible in the industry. Their 2013 predictions don’t disappoint. And guess what – BI is on top of the list. The remaining predictions represent a mixture of different trends – most of which affect analytics to a certain degree. In any case, the free report is well worth a five minute investment. One of my favorite statements is: “It’s time to make sure HP has signed its organ donor card.” You can download the free report from the Nucleus website.

    Nucleus predictions 2013

     

  • Is your analytics solution a trusted advisor?

    The trusted advisor?

    Many of us get really frustrated when business people do not immediately embrace our analytics solutions. But let’s step in their shoes for a moment. Trusting analytics for decision making is leap of faith. Imagine you are a manager who is used to listening to his gut feeling and intuition. We can’t expect that person to immediately embrace the latest and greatest analytics solution. As a matter of fact, data can often be viewed as some scary. Starting to rely on analytics can therefore often feel like the proverbial leap of faith.

    Why is that so? When we simplify the feelings that a new analytics user experiences we can identify three major stages.

    1. Reject: Can I trust the data? What am I supposed to do with it?
    2. Accept: I can see the value but I can’t identify the stories
    3. Embrace: This is cool! What else can I do with this?

    We as analytics professionals have the duty to help people make that leap of faith. We have to make it easy for them to get from stage 1 to stage 3.

    Acceptance of Analytics

    A personal story

    About ten years ago, I got really serious about my running and cycling. Instead of just following my gut feeling for developing a training plan, I purchased a heart rate monitor, a cycling power meter and some analytics software.

    Stage 1 – Reject: The initial experience was intimidating. Getting everything to work was complicated and there were a ton of data drop-outs. What about the data itself? It did not tell me anything. All I saw was a bunch of colorful charts and nothing else. I was ready to throw the stuff out of the door. It felt like a waste of time.

    Stage 2 – Accept: After a few weeks, however, things started to work smoothly and a coach finally helped me understand the charts and taught me how to identify a few weaknesses in my approach. Based on those insights, I tweaked my plan a little bit. It was a positive step forward but I was still waiting for the big impact.

    Polar
    Relying on analytics can be a leap of faith

    Stage 3 – Embrace: Studyingbooks and consulting with other athletes allowed me to achieve a real break-through. That’s when I finally learned to really rely on the data. Here is an example: Analysis showed that I had trained too hard for over two years. I needed to change my approach and spend more time recovering. It sounded scary: Train slower to race faster? Guess what – it worked! Once I started to back off, I was able to dramatically improve my performance. And that is my personal story of moving from stage 1 (reject) to stage 3 (embrace).

    Your role

    Don’t expect your users to immediately embrace your cool analytics solution. It is a leap of faith. It is your job to help and coach them. Show them how they can apply their data and the associated insights. Also, make sure that you develop solutions that are easy to use and that communicate clearly. Don’t let them alone. Move them along these three stages. It’s your responsibility! You can also find some ideas how to do that on this blog.

  • Inspiration from Stephen Few

    Greetings from San Francisco. I am back here to attend Osisoft’s vCampus developer conference. The conference kicked off with a true highlight: Stephen Few delivered one of the keynote presentations. Hopefully, all of you know Stephen and the awesome work he has done over the past years. Today’s presentation was content-rich and also very entertaining. There were a lot of smiling faces in the audience. I will write up a short summary of his messages over the weekend and share it on this blog.

    Is this the information age?

    Stephen Few started his presentation with a strong statement: We do not live in the information age…..yet. Instead, many of us are drowning in data and we struggle with making sense of the data. Part of the issue is that we are lacking ‘data-sensemaking’ skills. To highlight this point, Stephen Few showed a video. I had never seen it before. It’s funny but there is a strong message behind it: we do not understand how to deliver information properly.

    Those concentric circles

    Does your organization have a ‘concentric circle’ problem? I certainly know a lot of them. It’s time to change that. Take some time to evaluate whether your reports and dashboards are able to deliver real information.

    Concentric circles
    “Concentric circles” in the corporate world

     

    Check back here in the next few days for a summary of Stephen Few’s presentation.

  • Book recommendation: How will you measure your life

    Book Recommendation

    Some of you might have noticed that the posting frequency on this blog has decreased a bit. I have been traveling more than ever before. This past Saturday, I returned from a 15 day business trip to San Francisco. As tough as traveling sometimes is, it does provide you with some quiet time for reading. And that’s exactly what I did on those 13 hour flights. Right before I left, Amazon.com had posted a number of fantastic new business books in their monthly 3.99 Kindle promotion section. There are a bunch of really good books this month. One stood out.

    How Will You Measure Your Life?

    “How will you measure your life” is a relatively new book by famous innovation expert Clayton Christensen. It is based on a speech he gave to the 2010 graduating class of Harvard Business School. This is not another business book. Instead, Christensen provides powerful and provocative ideas for finding meaning and happiness in our life. Sounds like a self-help book? Not at all. Christensen blends personal stories with deep business research. The combination of business ideas and personal life is what makes this book such an enjoyable and valuable read. Christensen looks at some of the more well-known theories such as Herzberg or the discovery-driven planning approach. He then applies those theories to our own personal life and derives some very interesting ideas and thoughts. As a business professional, I really enjoyed this combination and it left me thinking about my own career and personal life. The book is structured in three sections:

    1. Finding happiness in your career
    2. Finding happiness in your relationships
    3. Staying out of Jail

    The book roped me in and I ended up reading it in an entire session. Anyone interested in business will most likely enjoy this read. Two thumbs up! The book is currently available for just USD 3.99 (Kindle version). Make sure to grab your copy before the offer expires.

    Looking forward

    Look out for some hopefully exciting posts in the next two weeks. I will be heading back to San Francisco next week to attend OSIsoft’s vCampus Live event. This technical conference focuses on developing powerful analytics applications with the OSIsoft PI server. I am especially excited about the opening day keynote: Stephen Few will be speaking. You will see some notes and photos on this blog soon.

    vCampus Life
    Copyright – Christoph Papenfuss

  • Recommended reading: How to convert complex data into a story

    The Analytics Communicator

    Analytics professionals need to be communicators. Just being technically proficient is longer enough. It is not enough to slap a report or dashboard together on the go. Rather, we have the responsibility to help the business get information out of their data. This is especially true as data volumes continue to grow.  I wrote about this in a recent blog post.

    The question though is how to best do this. Earlier this week, I came across an excellent blog post by web analytics guru Avinash Kaushik. His November 5th post provides a detailed example of how to convert a complex data set into a compelling story. I highly encourage you to spend some time reading this inspiring blog post.

     

    Avinash Kaushik