Tag: IBM Cognos

  • What photography taught me about dashboards


    Photography and dashboards? Huh? Fire and Ice?

    Photography is a big and important hobby of mine. And it is a tough hobby. There is a lot to learn and the opportunity to make mistakes (read: create photographs that really suck) is huge. It starts with understanding your camera, deciphering basics like Aperture, Shutter Speed and ISO. But the hardest thing for me is photographic composition. Composition focuses on how we design a photograph. Over the past few years, I have studied many master photographers and read a bunch of books trying to educate myself and to improve my pictures (a tough mission as my artistic brain is completely underdeveloped). A few weeks ago, I realized that photographic composition can teach us a few things about Dashboard design. Dashboards should be highly visual after all and they need to convey information in a short-period of time.

    1. Less is more: Many successful pictures have been reduced to a bare minimum. Each element in the frame has a distinct purpose. You will hardly ever find a great photograph which contains empty coke bottles lying around for no purpose. It would create a distraction. By reducing the elements in the frame a photographer creates focus. The same is true for dashboards. We have so much information available. People therefore try to cram as much into a dashboard as they can. And we stick logos, banners etc in there along with messy charts and reports. But less is more. If we reduce the building blocks to a minimum, we can help managers focus on the important things.
    2. Arrange carefully: Successful photographs are able to convey a certain message. The message is crafted by arranging the elements in the frame in a certain way. In other words: we can’t just find a nice scene or object but we need to carefully consider where to place items. The same applies to dashboards. Stephen Few for example points out that we should place the most important block in the upper left corner. That’s where the Western world starts reading. That way we can ensure that managers focus on the most important element first. Also, we can employ different techniques to direct our eyes. (see some examples below).
    3. Choose colors wisely: Different colors communicate different things. Our eyes focus on bright elements before they refocus on darker elements for example. Red or bold elements alert the eye as opposed to darker colors or thinner elements. A great photograph therefore utilizes colors with purpose. Sometimes colors take away from the meaning of a photograph. Black & White would be the obvious choice in that case. When it comes to dashboards we should employ the same considerations. Colors and fonts should be used with careful consideration. Too many dashboards are colorful without a specific purpose and it confuses the message. “What should I look at? I can’t see the tree in the forest.” Careful color choice helps direct the attention to the important items. For example, you can highlight an exception in red. But color preference is also a personal choice.

    Here is an example where we can see these principles at work:

    The overall scene

    The scene is quite busy. The yellow color is not really useful. Not a good photograph. Basically a typical snapshot.

    This photo creates focus. There is only one element in the frame. Much better. But it is kind of boring.

    This photo is much better. It is more dynamic. Same object, different placement. What a difference!

    Yet another version. This photo simply works. It is dynamic and the object is placed in the right spot. Color is not needed in this case. The picture works as a black & white.

    Here are some examples that highlight how these things apply to dashboard design. Consider each box as a representation of an object (chart, query, etc.). Look at the first really sloppy design attempt. Looks weird? Well, it does happen quite a bit. Take a look at this beautiful collection of crazy, busy dashboards collected and displayed by Hichert & Partner.

    Performance Dashboard
    Want some candy???

    And now look at the following layouts below. They are simple. There is no added noise that distracts. Notice that the light blue matches the design of this blog……Notice how the careful placement of the boxes makes a difference. The lines indicate how a typical user walks through the content. Also, note how the use of color changes things.

    Dashboard DesignNext time you develop a dashboard be careful with your design. It does make a huge difference. Just these three things alone can have a big impact on the effectiveness of your dashboard.

    If you are interested in this topic, please get in touch with me. We will be running some workshops about this topic across Europe in Q1 & Q2. Also, I will create a few additional posts about enhancing your dashboards with great charts over the next few weeks. Make sure to come back here!

    “What you communicate depends both on the blocks you select and on the ways you arrange them”,

    Freeman Patterson, Master Photographer

     

  • Business Analytics in action….a seriously cool workshop

    BUSINESS ANALYTICS EXPERIENCE

    Have you ever wondered what it was like to run a large company? Have you ever wanted to make big risky business decisions with worrying too much about the results? Well, I have some good news for you!

    Purchasing and implementing enterprise software like IBM Cognos can be a complex undertaking. It starts with finding the right vendor, understanding how the software can help fix business issues and it continues with obtaining buy-in from the business. Especially the last issue is not trivial. I have personally spent countless of days and nights working with different client sponsors on crafting careful messages about how the new processes and the software will help the business. My personal lesson learned is: selling change is not easy.

    THE EXPERIENCE FACTOR

    But there is a recipe that works in many cases: Rather than show and tell, let the business experience the difference. This is something we can learn from a car salesman: A car salesman does not spend time talking about the benefits and cool features of a car. No, he offers a test drive. During this test drive, I am able to experience the benefits hands-on myself. I am able to visualize how the new car can help me. If I like the car, I like it. And I know when it feels right.

    THE BUSINESS ANALYTICS EXPERIENCE

    How does all that related to Business Analytics? Very simple: Together with Roland and Patrick Mosimann (authors of the popular book the Performance Manager) we created a business simulation workshop that allows you to run a fictitious company using the IBM Cognos platform. And let me tell you: This is one fun workshop because you get to run a large company. It is called: The Business Analytics Experience

    THE CONCEPT

    Future ChipsThe workshop is typically run with groups of 8-16 people. We split the participants into competing teams. The objective for each team is to run the fictitious company ‘Futurechips’. Together with the group facilitator, we start by analyzing the situation of the company. The Cognos 10 platform provides vital information such as a financial review, overview of products, markets, etc.. This helps answer some critical questions such as: Why was the prior management team let go? What is the financial situation? What are the opportunities for the new year?

    ENTER THE SIMULATION

    How is Futurechips performing?

    There is a lot to discover. Futurechips seems to have a bright future but the prior management team made some strange and short-sighted decisions. And it is fun to make these discoveries. The teams therefore get fully emerged into the game after a few minutes. After a short while solutions and ideas spring up. The teams start discussing. And it doesn’t end here: We actually get to make some critical business decisions. What markets do we want to focus on? Which products do we want to invest in? How should we adjust our pricing models? What is our overall strategy for the fiscal year? We do this by developing short strategic plans in IBM Cognos 10. The data that we enter is then fed into a sophisticated simulation engine that provides detailed feedback.

    THE COMPETITION HEATS UP

    Business Analytics Experience WorkshopAt this point, it is not untypical to see some serious competitive behavior (all in good fun!) between the groups as we compare the results from the first few quarters. We find out that we did some things right. We also find that the teams missed a few points. Plans and strategies are refined. And so it continues. There are more decisions to be made and the simulation continues to provide feedback.

    THE BENEFITS

    Ok. That sounds good? But what does that have to do with Business Analytics and what does that have to do with selecting software and implementing it? Very easy. The workshop allows the participants to experience how Business Analytics software can help them make better business decisions. Just to be sure: we do not talk about the software itself during the workshop but we use Cognos 10 to perform our analysis, to prepare our decisions and to help develop the detailed plans. The participants use the Business Analytics tools to gain insights and to prepare their decisions.

    WHO, WHAT, WHEN?

    Who should attend the seminar? Anybody who wants to learn more about business analytics (sponsors, project managers, CIOs, CFOs, business managers) and all those of you who are already implementing the software and who need to sell change within their organization. The workshop is a fantastic way to let business users experience how their work can change. It is just like test driving a new car!

    Does that sound interesting? It really is. I LOVE running these workshops. It is a simulation and a game after all. As a matter of fact, we have many returning customers that want to participate over and over again.

    Check out IBM’s website for more information and a current schedule of events. Our team is also happy to run these business analytics workshops in-house. Hope to see you at one of these workshops soon!

  • Social Networking = Better Performance = Happiness?

    Amazon.com’s recommendation engine is pretty amazing I have to admit. The algorithms at work clearly know how to expand one’s horizon beyond the obvious choices. Needless to say, I was a bit surprised and almost annoyed when the engine suggested the fluffy sounding title ‘The Happiness Advantage’. Does amazon.com really think I need some self-help books??? To make a long story short, I ended up buying the book based on the enormously positive reviews and my general curiosity. Turns out that this was a good decision. But apart from providing some provocative ideas the book also revealed some highly interesting research about social networks. And this research is relevant to Business Analytics.

    SOCIAL INTERACTIONS

    One of the key points in the book is that the quality and the strength of our social network has a big impact on our happiness and our job performance. In other words: The more stressed we are, the more time we should invest in social interaction. We all seem to know that…sort of. One of the researchers mentioned in the book is George Vaillant. In an article from 2009 in the Atlantic Monthly he stated that there are ’70 years of evidence that our relationships with other people matter, and matter more than anything else in the world.’ That is a pretty big statement, but I guess we all agree with that. So, that is not a surprise. But there is a big surprise.

    THE SOCIAL NETWORK AT WORK

    Shawn Achor goes ahead and describes that studies have found that positive social interaction between employees during work hours are tremendously effective at protecting people from the stress of their job. As a result, those people that invest in these interactions typically perform better. Again. Seems like common sense. But it gets better. The MIT was looking at this stuff as well. So they spent an entire year at a small company that you might have heard of: IBM. The researchers from MIT followed over 2600 IBM employees over an entire year. The guys monitored and analyzed various different aspects of the social network of these employees: Buddy lists, size & scope of their address books, social interactions. Here is how Shawn Achor describes the core findings of this study:

    “(The researchers)… found that the more socially connected the IBM employees were, the better they performed. They could even quantify the difference: On average, every email contact was worth and added $948 in revenue. There in black and white is the power of social investment.”

    Wow….interesting insights. Wouldn’t you agree?

    1+1 = 4?

    In a previous blog post I discussed how IBM Cognos 10 allows users to leverage the power of social networking. Using the latest Cognos 10 platform, we can collaborate around Business Analytics using the same techniques that we use on the popular platforms like Facebook, Flickr & Twitter. Most of you would probably agree that this is a powerful value proposition. And the findings make sense if you think about it: Business today is complex and finding solutions to problems is complex as well. The better networked we are, the easier we can pull relevant people into the problem solving process. And if all this is facilitated by technology, we can collaborate in real-time.

    THE PATH TOWARDS HAPPINESS?

    Over the past few months I did run into some skeptical people. They still regard social networking as ‘a thing that teenagers do’. But let’s face it: the way we communicate has been changed once again. Email did that a while ago. And this study shows that there is a tremendous benefit in expanding and using our social network. And if it’s not just about better job performance, how about increasing our own happiness? Now that is a unique value proposition, isn’t it?

  • IBM Business Analytics at the Gartner BI Summit 2011

    It’s that time of the year! The annual Gartner BI Summit is just around the corner. This year’s edition will take place from January 31st through February 1st at the Park Plaza Westminster Bridge in London.

    IBM is one of the main sponsors for this event, and my team and I will be quite busy during those days. We have planned some great activities to connect with our customers, partners and friends. There will be a big booth at the conference where we can meet. Some of our most knowledgeable resources will there. We are really excited to show our Cognos 10 platform. Here is a quick pre-view of some IBM Cognos related activities that might be of interest for you:

    Monday, January 31st:

    • 08:30 – 10:30: The traditional Gartner keynotes should not be missed.
    • 11:45 – 12:30: Panel discussion – Peter Griffiths, our VP for Business Analytics development will participate. I love those panel discussions
    • 12:45 – 13:45: ‘Preparing a BI Strategy’ workshop hosted by @tracyleeharris
    • 14:00 – 16:00: ‘Best Practices in Rolling Forecasts‘ workshop….hosted by me. This is a great workshop for all people interested in finance processes.
    • 16:15 – 17:15: ‘Demonstrating Value’ workshop hosted by @tracyleeharris

    Tuesday, February 1st:

    • 10:30 – 11:15: ‘Navigating Politics & Culture’ workshop hosted by @tracyleeharris
    • 11:30 – 12:00: Our keynote ‘Smarter decisions, better results’. Leah Macmillan will be delivering this presentation and I have the honor to demo our cool Cognos 10 platform.
    • 12:00 – 13:00: ‘Organizing for Success & Building a BICC’ hosted by @tracyleeharris

    I have pasted the detailed descriptions of the workshops on the bottom of this post. We have limited space in all of these. So, please visit us at the booth early enough to sign up.

    You might have noticed that my colleague Tracy Harris will be quite busy at the conference. She actually released a neat book towards the end of 2010. We will have plenty of copies for you at our booth.  If you want, you can also download a copy for free before the conference. Tracy will be spending a lot of time at our booth….so get your questions ready!

    That’s it for now. Looking forward to seeing everybody at the conference. Drop me a note if you want to meet.

    Workshop Descriptions

    Best Practices in Rolling Forecasts Workshop
    This workshop is a highly practical one where our team will share key insights on designing, implementing and using rolling forecasts as part of a best practice performance management process. You will find out whether rolling forecasts are right for your organisation, what the best time horizon would be, and how rolling forecasts can alert you to emerging threats and opportunities.  Discuss the relevance of forecasting, review best practices for implementing a rolling forecast, and identify how you can improve the forecasting process

    Demonstrating Value Workshop
    What kind of ROI do organisations see from BI and PM deployments? How do I
    demonstrate the value of my investment? In this session, learn about building your
    value portfolio for a strategic BI and PM investment including demonstrating ROI,
    justifying your strategy, demonstrating value and how to embrace, enhance and
    extend your investments.

    Navigating Politics and Culture Workshop
    Having trouble extending your BI deployment? Gaining user adoption? Learn some of
    the most common practices and pitfalls that organisations encounter as they
    implement BI enterprise-wide. Find out how they gained executive buy-in, managed
    change, gained adoption and showcased initiatives within their organisation. By
    learning more about these pitfalls and how other organisations have overcome them,
    you will be more prepared for success.

    Organising for Success & Building a BI Center of Excellence Workshop
    In order to be successful at a strategic business intelligence or performance
    management initiative, you need to be properly organised to execute. Learn about
    the value of a Business Intelligence Center of Excellence, and discuss functions and
    structures of these organisations.

    Preparing a Strategy Workshop
    What are the sweet spots of information? What key elements do I need to consider
    when building a strategy? What is my business alignment strategy, my organisational
    and behavioural strategy and my technology strategy? In this workshop we will
    discuss the key elements to consider when building a strategy and roadmap to help
    your organisation become best-in-class using analytics.


  • Cool software? The Connected Business – Part 3

    Yeah, those spreadsheets. Welcome to part 3 of this series of posts. An interesting special section in the Financial Times prompted me to post a quick summary with interesting quotes. But the report did not necessarily provide some specific details about why spreadsheets make our lives difficult. Part 2 then focused on the particular pain points we all experience in our daily business lives.

    THE PROBLEM & ANSWER

    But how exactly does Business Analytics software help and how can we replace spreadsheets? I get very frustrated when I read white papers that talk about ‘gaining efficiencies and critical insights with the push of a button’. There is so much BS talk out there. And as a result, I find that there are many managers out there that still don’t understand what technology can do for them. It’s time for clarity, isn’t it?

    A FAIRY TALE?

    Let’s take a look at one of my clients. When we first met, the new CFO was extremely frustrated with the tedious annual budgeting process. A team of six well paid finance professionals spent almost seven months pulling the annual budget together. The entire process was run through spreadsheets. The team spent an awful lot of time managing the 250 something workbooks for the different cost and profit centers. Complex formulas had to be fixed, data had to be copied & pasted from SAP R3, files had to be distributed and collected, reports had to be manually compiled and reconciled. In other words: it was painful and the team of six had very little time to do something fun. Their workload was extremely close to the picture we discussed in part 2 of this post.

    HERE COMES THE SOFTWARE

    The CFO decided to do something and selected Cognos to help automate the budgeting process. It was actually a rather short project with only 35 business days for the expense budget. Cognos replaced the entire spreadsheet jungle. But why and how did it help exactly. Here are some basic examples:

    • Centralized model maintenance: One of the key issues with spreadsheets is formula maintenance across different workbooks and files. Instead of copying and pasting, BA software allows me to maintain my formulas in a central repository. One change in one place only. That saves a ton of time and also ensures data integrity. How is that?
    • Automated interfaces: Why should we have to manually load actuals or other data from transactional systems into spreadsheets? There is a lot of risk (apart from the boring manual labor). BA software allows you to run automated interfaces. Just like in our transactional systems. Nothing fancy. It just works. And it saves a ton of time and frustration.
    • GPS: One of the other frustrations with spreadsheets comes from the inability to track progress. A simple question like: “Has Ted started his budget?” can be extremely difficult to answer. The file is not on the central server anymore as Ted is out on a business trip (and then he deletes his file by mistake..). BA software allows us to keep track of progress and it stores all the data in a central repository. Again…a very simple thing. But extremely effective. Imagine a spreadsheet with a powerful GPS on the roof!
    • Cool interface: Working with a spreadsheet template can be very frustrating. Either the templates are completely locked down or they are so flexible that I can break them. Modern software provides us with easy-to-use interfaces (web-based). They are actually fun to use and I can customize the layout to my personal needs – all that without breaking the model. This is a great way to engage managers that are not so technology-savy.
    • Automated aggregations: Getting a snapshot of your budget can be a bit tedious with spreadsheets. We need to make sure all files are accounted for so that we can link our master spreadsheet to them and aggregate the numbers. BA software takes care of that….in real time. All the data is stored in a central repository. You need a snapshot? Give me a minute. Here you go!
    • Easy analysis: Performing detailed analysis on a spreadsheet budget can be extremely difficult. Management decides to make some top-down changes and finance then has to figure out how to push this into the different organizational units. Asking some what-if questions can turn into a tedious exercise. BA software allows us to perform analysis in real-time. It’s that simple. We make change somewhere, and we can report on that right away. Cool!

    Ok…I admit it. This is probably a bit ‘salesy’. But that’s the way it is. By the way, this particular client is now able to turn the entire budget around in less than 1.5 months. They actually like the budget process (scary thought?) now. It’s nice to talk about this but it’s better to see this in action. Why don’t you come and join one of our global workshops?

  • Spreadsheets Confidential – The Connected Business – Part 2

    The other day I wrote about the special section of the Financial Times called ‘The connected business’. One of the key take aways from this section was the fact that way too many finance departments are putting their faith into spreadsheets.

    A few years ago, my team started conducting some surveys amongst finance professionals. For this purpose we teamed up with David Axson (co-founder of the Hackett Group, book author). We specifically went after professionals that were not using Performance Management software, yet. One of the key things we were interested in was the type of work finance professionals do. It quickly crystalized that there were five major categories of work. The results looked like this:

    Cognos Finance Survey 2008

    The majority of the time is apparently spent on manual tasks such as collecting data (loading data from systems into spreadsheets, copying & pasting, manually entering budgeting numbers, etc..), maintaining spreadsheets (development, fixing formulas, aggregating spreadsheet data, Visual Basic programming etc.) and then also developing reports & presentations (creating spreadsheet reports, graphs, Powerpoints etc.). Only about 20% of the overall time is apparently spent on the high-value tasks such as performing in-depth analysis, running what-if scenarios, personal development etc.. A shocking but not a surprising picture. When we present the results to finance professionals we get a lot of head-nods. But I often sense a certain level of resignation as well (“Oh yeah….I know….that’s just the way it is.”).

    Statistics are always a bit dry. So we took the data and applied the percentage distribution to a work week. The picture now looks quite interesting. What do you think?

    Cognos Finance Survey 2008 – part 2

    How does this feel? Same numbers. Just a different perspective. Two key questions come to mind: Can we live with that situation? Would we want to live with this situation? I doubt it. I have been there and didn’t necessarily like this. Sure, it’s nice to play around with spreadsheets knowing that you are indispensable. But is that what we want to get out of our professional lives? Is that why we went to business school? Is that why we spent so many hours studying for the CPA, CMA, CFA exams?

    Technology helps shift this picture around tremendously. We can literally reverse this. I will write about that in the next few weeks. For now, I will leave you with this picture. Take a look at your own work environment. How do you get things done? How do your clients operate? Is there room for improvement? Would love to hear your thoughts and about your own experiences.

  • Behind the scenes – Middle East Cognos 10 launch

    Snow. Massive amounts of snow. And it’s really cold. Hmm…Do I really want to leave here? Greetings from Dubai airport. My colleague and I are stuck here right now. Most flights to Europe are delayed due to winter weather. Oh well….the joys of traveling. But this trip was really worth it. We just finished a three-country tour through the Middle East for the Cognos 10 launch. Three days, three cities. Three amazing launch events in Dubai, Qatar and Kuwait. Some of the customers I talked to were wondering what it was like to execute such an event series. Well, here is a little peak behind the scenes.

    The amount of work that goes into these large customer events is crazy. Our great marketing teams spend a lot of time arranging locations, speakers, food, drinks and inviting customers etc.. Luckily, I hardly ever get involved in these activities. But let me say that much: I admire my colleagues for consistently doing an amazing job. It really makes a difference. I get to focus on the content and the presentation delivery.

    For this particular event series, we had to leave Munich on Saturday evening to get to Dubai in time. The first event started on Monday. Getting up in a new time-zone always hurts on the first day. And so day after day we rush out to the event location early in the morning to setup the room, prepare the laptop, make sure that all the demos are working, check the microphones, upload additional presentations from other speakers etc.. I am always amazed at how much can go wrong with these type of events: The demo that worked in the morning suddenly stops working. The laptop shuts down without notice. The beamer does not receive a signal. Murphy’s Law?

    The event in Dubai was a success but I am tired after delivering three presentations. Right after lunch, our team of close to ten people rushed to break down all the banners, pack up brochures, badges, lists etc.. Then off to the airport with a ton of extra luggage in hand. A few hours later, we sit down in Qatar for a quick debrief and discussion of the next event. There is always some tweaking that needs or should happen. Every country is different. Cultures are different. Audiences are different. There is no one-size fits all. Each and every presentation needs to be customized.

    The next morning looks similar. Setup at the hotel around 8am, preparations and then another round of three presentations with a few breaks between. Before heading off to the airport with all our extra luggage, a journalist from the Qatar Tribune comes over for a quick interview about the launch. We finally arrive at our hotel in Kuwait around 9pm. Quick shower than out for a quick team dinner at a local place. Back at the hotel I can’t remember my room number and head back down to the reception. Long day.

    The 7am wake up call feels like a scene from the movie Groundhog Day. Shower, pack, quick breakfast, taxi to event location, setup the laptop, discussions with the local team and a quick cup of java. As much as most of this is really busy routine work, I always get excited when the event finally starts. Presenting our products and talking to customers is a privilege and it is a lot of fun. Luckily, the Kuwait event was very special again. The audiences in all three countries were great. Unfortunately, I had to leave for Dubai right after the final presentation. On the way to the airport, my colleague noticed that the cab driver was falling asleep. So we engaged him in a discussion even though he did not speak a word of English. The surprises never end. Check-in at the Air Kuwait counter and then a quick snooze on the plane.

    Waiting for the flight

    8pm…I am checking into my hotel room in Dubai. 8:01pm….I am checking out my mind but I am very grateful for four special days with amazing colleagues & customers. But everything seems like a blur now. Too many impressions to process at this point. But it feels good.

    Some final statistics:
    Days: 4.5
    Total travel time: 32h
    Presentations: 8
    Tired: Yes!

  • Collaboration and BI?

    One of the first things we learn from our parents and teachers is that we are stronger when we act as a team. 1+1=3 or something like. And it is true! I have had some of my best learning experiences in a team environment. Every once in a while, we forget just how powerful teamwork and collaboration can be. We get stuck trying to solve a problem by ourselves and we loose a lot of time. Okay. Everybody knows that.

    But what about Business Intelligence and Business Analytics? Are we really collaborating with that team idea in mind? Even more important: even if we wanted to collaborate, would we be able to do so in an effective and efficient manner?

    What does collaboration for BI and PM look like. Think about the following common situation. It is early Monday morning and you conduct some analysis in your BI portal. You quickly realize that there is a big problem. And you have no idea what to do about it. The first question that comes to mind is whether anybody else has come across this issue. But what do you do? It’s early in the morning. Nobody is in the office.

    Social media are changing the way we communicate with each other. Email did that for us 15-20 years ago. Today we are at the start of a new revolution again. Twitter, Facebook, Flickr etc allow us to collaborate in an unprecedented way. We can leverage the wisdom of large crowds of people. People we don’t even know. The other day, I had a problem with my camera. I sent out a tweet with a question about it. 20 minutes later I had the problem solved with the help of other photographers out there on this planet. And this new way of collaborating is now entering the corporate world.

    Back to our little Monday morning problem. We still have no idea what to do. Imagine we could quickly identify whether another colleague had reviewed this dashboard and come across this problem? What if you could see what steps they have taken to identify a solution? Wouldn’t it be nice to search for similar problems and find out how colleagues fixed this in the past? How about we could help other team members by contributing to their questions?

    The time is right. We should be able to collaborate in our corporate world just like we collaborate in our private lifes. Cognos 10 allows us to just that. We can comment on dashboards, reports, cells, graphs. We can share activities, we can assign tasks. We can discuss, review and share. Just like we do on Facebook and Twitter. Within our own company. I have had to opportunity to test this functionality and I love it! But most importantly, the many customers I have shown this to love it just as much. When I return from travels through Europe and the Middle East I will share some additional thoughts and reactions about this. What do YOU think about this?

  • The Speed of the Dragon

    The other day I met a good friend of mine. We hadn’t seen each other in a few weeks. But it felt a lot longer than that. A ton of stuff had happened. A sign of the times? The speed of business and our personal life seems to increase steadily. The economy already feels like a freight train racing through the night. But I believe that we are about to ditch that train and replace it with a high-speed bullet train.

    ENTER THE DRAGON

    At the end of August, I had the opportunity to run a bunch of performance management workshops for finance professionals in China. I do have to admit that I was blown away by what I saw and experienced. Hustling & buzzing cities, shiny buildings, fancy airports, giant construction sites and many ambitious people. Many, many ambitious people. People that are starving for success.

    Early morning traffic & smog in Beijing

    THE SPEED OF CHINA

    Time seems to run faster in China. Construction sites are open 24*7. Co-workers from that region told me stories about areas of large cities changing within just a few weeks or months. Changes that would take years in the US or Europe. And that was evident everywhere we looked. Our hotel had just opened a few weeks before.

    THE STRADDLING BUS

    But there was one story that really told the story of Dragon Speed. Right about when I left for this 14 day trip, some newspapers reported that Chinese engineers had developed a futuristic concept for a straddling bus. This bus literally straddles the road. Passengers sit in a cabin high up over the street allowing cars to travel underneath it. Well, that was a concept. We didn’t think much of it at first. But I almost could not believe my eyes when I read the paper in the Air China lounge on the way back to Europe: The city of Beijing had reviewed and approved the concept. And not only that: they were expecting to have a working prototype with the next 6-9 months. Wow.

    THE ECONOMIST

    In 2007, the Economist had predicted that China would overtake Japan as the 2nd largest economy in the world within the next ten years. It only took three years. What’s next?

    Western governments & businesses will hardly be able to ignore this trend. We will all have to pick up speed and it will affect businesses across the globe. It will be ever more important to make sound decisions quickly. Performance Management plays a crucial role in this.

  • Business Analytics and the art of cycling

    Road biking is a big passion of mine. The other day I was out on a long training ride with a good friend. One of the nice things about biking is that you can talk a lot on those rides. Since we were talking about different aspects of our work, my friend finally wanted to know what was so special about this “Business Analytics stuff”. How do you best explain that to somebody who is only remotely connected to IT, Finance and management? Luckily, I had a great story to tell him. And it’s not just a regular story. It is actually my personal success story in cycling.

    HIGH TECH

    About a decade ago, modern technology entered the world of professional cycling. Smart technology became available to measure not only the typical parameters of cycling like speed, distance etc.. This new piece of technology was called a “Powermeter”. This high-tech gadget allowed cyclists to measure advanced data such as power output, pedal torque, cadence etc.. Today some of these devices even measure aerodynamic drag.  Powermeters help athletes like myself to learn about themselves and to perform better. Needless to say, I invested in this technology about five years ago. It is a CycleOps Powertap with Bluetooth technology.

    THE ERP OF CYCLING

    Ok. But what does that have to do with Business Analytics. Very easy. The Powermeter is my transactional system. It records my ‘business’ on the bike. Second by second. Mile by mile. While I am riding, I can check my speed, power output, cadence and many other things. Just like a good solid ERP system. The gadget allows me to manage the operational aspects of my ‘cycling business’, i.e. I can lower my power output, increase cadence etc..

    ENTER ANALYTICS

    After each ride, I can then download the ride data. There is an extremely awesome piece of software called WKO+. It was created by two smart cycling professionals that have conducted ground-breaking research. This application helps athletes analyze their ride data. The objective is to become smarter (think knowledge about your own body) and to make better decisions about your training. This is basically Business Analytics for cyclists. Let’s take a look at how this works.

    THE DASHBOARD

    After each ride, I can analyze a Dashboard. This dashboard provides me with an overview of my most important metrics such as power output, mileage, cadence, time in training zones, etc.. There is a daily and a monthly dashboard. This helps me identify potential issues and to check my overall performance and progress. In Business Analytics, we implement dashboards for our executives and managers. The only difference is that they look at different metrics like sales, margins, profits.

    WKO+ dashboard
    The cycling dashboard from WKO+

    ANALYSIS

    If I spot something curious, e.g. an unexpected poor performance on a ride, I can immediately drill down to analyze the detailed data from my ride. This analysis contains a detailed report of some metrics and I can visually analyze the ride second by second. Going through the data, I can spot interesting things like power spikes, rest periods etc.. This helps me put the overall picture together of why I performed in a certain way. The analysis also helps me learn more about myself: what are my boundaries, what are my strengths etc.. The same thing is true for Business Analytics. If we spot some problems or opportunities, we perform analysis using our rich transactional data. This helps us identify critical business insight.

    WKO+ detailed ride analysis
    The detailed analysis of the ride: power, altitude and more

    LOOKING AHEAD

    Now that I have understood how and why I performed on my bike I can start using this information to plan and adjust my upcoming training plan. There are some smart algorithms in the software that help predict future performance based on past power-output and training load. Using this inside, I can then fine-tune my training plan and hopefully scare my riding friends by outperforming. Many companies leverage Predictive Analytics to make sense of data and to look ahead. They want to identify customers that might be more profitable in the future. They might want to spot opportunities for cost savings. And they use the insights to formulate and update their business plans.

    Planning ahead

    THE ROI

    My friend now understands clearly what Business Analytics is all about. Since I was able to seriously drop him on a climb he was curious about the ROI of this. Well, the technology has enabled me to learn a ton about myself. I know my boundaries and I am able to push myself much further than I ever have. I was able to survive a grueling 7 day stage race across the Alps and all that with a minimum of preparation. All that by being smart about my racing tactics and most importantly about my training approaches. The same thing is true for businesses. I have worked with companies that have literally transformed the way they do business using the insights offered by modern Business Analytics software. This software now represents the central nervous system of these organizations. Why don’t you try that yourself?

    If you are interested in learning more about how I use a powermeter during training, please read my personal blog: