Month: July 2016

Big Data: Trough of Disillusionment

mep Analysis

Gartner’s Hype Cycle for Emerging Technologies report gives us an evaluation of a range of technologies that either have the potential to, or are already, transforming the way organizations do business. It is a careful analysis of how business views each technology, and once it makes its way through the entire cycle its either consigned to the scrapheap or becomes an accepted part of the business tech landscape (think Windows, Office, Smartphones, etc.).

The report covers dozens of far out technologies ranging from robots to 3D bio-printing systems to ‘software-defined anything’, but one of the biggest technological advances in recent years, Big Data, demands a closer look.

According to Gartner, Big Data has now (2014) officially passed the “peak of inflated expectations”, and is now on a one-way trip to the “trough of disillusionment”. Gartner says it’s done so rather rapidly, because we already have consistency in the way we approach this technology, and because most new advances are additive rather than revolutionary. In 2014 Gartner estimated it would take 5-10 years for Big Data to reach the “plateau of productivity.”

 

Gartner Hype Cycle: Interpreting Technology Hype
When new technologies make bold promises, how do you discern the hype from what’s commercially viable? And when will such claims pay off, if at all? Gartner Hype Cycles provide a graphic representation of the maturity and adoption of technologies and applications, and how they are potentially relevant to solving real business problems and exploiting new opportunities. Gartner Hype Cycle methodology gives you a view of how a technology or application will evolve over time, providing a sound source of insight to manage its deployment within the context of your specific business goals.  –Gartner.com

Data and Your Gut May Both Be Needed for Decision Making

mep Analysis

Have you ever experienced a nagging feeling before you’re about to finally make a big decision? You’ve weighed all the data, you’ve considered every angle, but something is keeping you from moving forward. Rather than ignore that nagging feeling and forge ahead, Shelley Row says we need to get to the bottom of it.

Row, an author and expert on executive decision-making, addressed a group of loss prevention professionals gathered for a recent NRF Conference.  In researching and interviewing executives about their decision-making process, Row related what she heard to neuroscience and the mechanics of how we use different parts of our brain to make different kinds of decisions.

For most of us in this data-driven world, the biggest problem in the workplace is overthinking decisions, which wastes time and compounds stress. The key to relieving this pressure, Row said, is to find the balance between using data and intuition to make decisions.

Row explained that as we weigh all the data that goes into making a complex decision, the logic and language part of our brain is working hard, accessing our working memory, which is limited to a handful of things. But that nagging feeling? That’s a different part of the brain that’s shut down while we agonize over the pros and cons and facts and stats. Row described that nagging feeling as all the other experience and intelligence we’ve gained that we’re not able to access simultaneously.

This is not saying to throw out the data just because it says something you don’t like.  Intuition based on solid experience though is something you shouldn’t ignore.

The important thing is to be self-aware enough to know when this is happening so you can discover the insight behind a gut feeling. “You have to resolve the nagging feeling to solve overthinking,” Row said. Investigate the root of that nagging feeling — does it feel like there’s something you’re missing, or is it simply that you’re afraid of something? It could be a fear worth overcoming or an invaluable insight locked away in your brain.

The next time you’re circling a complex decision with a lot of data involved, resist the urge to stall by gathering one more data point, and instead probe deeper to understand what your gut feeling is all about.

Based on an article by Jennifer Overstreet, June 2016

Reporting and Analysis Are Not the Same Thing

mep Analysis, Systems

Businesses often confuse analysis with reporting. Some invest in complex analytical tools when they really need to streamline the reporting process; others pursue reporting capabilities when they should be seeking in-depth analysis for their data.

The reality is that both reporting and analysis are critical to the success of any business, and deploying an integrated approach to both is key to ensuring they complement each other in a way that generates the most valuable results.

Reporting Analysis
Reporting is a way of providing information about what’s happening in your business. Good reports enable you to ask the right questions about your business. Analysis helps you answer questions by enabling a deeper dig into your data to understand the drivers and root causes behind performance metrics.
Reporting provides a 30,000-foot view of set metrics. Analysis is flexible and gets deep into the weeds to uncover valuable insights.
Reporting takes time. Many companies allocate the first few days of their month and first few weeks of their quarter for many of their employees to assemble reports. Analysis requires more energy and motivation than time and can be more valuable. Successful analysis deserves an exhaustive dig through data to find hidden opportunities and areas needing improvement.
Reports are often considered urgent.  Without careful planning, reporting often crowds out analysis. Reporting may be urgent, but analysis is important, but because it often involves going the extra mile to find the hidden insights, there’s rarely the same urgency to perform analysis on similar deadlines.
Often businesses confuse reporting for analysis, and vice-versa. Reporting and analysis must work together for a profitable business.
Reporting is routine.  If you spend ten hours working on a report, the report gets finished. You have something to show for it at the end of the day. Analysis, on the other hand requires innovative thought, anticipation of future outcomes and confidence to strive for change. If you spend ten hours on analysis, there’s no guarantee you will have an answer.

 

Because companies are busy and often pressured into constant action, they trend toward the easy and familiar way out with reporting. This translates into spending time churning out report after report rather than trying to actually analyze what’s going on and make a difference within the company.  Reporting raises questions; analysis answers them.  You can’t have one without the other.