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Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

2016-01-07

Know your data, know your Customer, know yourself.

Knowing your data is the first step of knowing your customers.


English: Somerfield, Spilsby One of the last c...
English: Somerfield, Spilsby One of the last customers to shop at Somerfield before Sainsburys take over is, coincidentally, using a Sainsburys shopping bag. Photograph taken with permission, courtesy of the manager, the shop assistant and the customer. (Photo credit: Wikipedia)
In small stores, shops and restaurants the folks behind the counter get to know your name, what you buy or order on a frequent basis, and how often you visit.

Today we are connected to our customers in many ways. Not everyone has the in person touch and feel of the customer. For many organizations the customer is a visitor on the web site, or a card swipe at one of the locations they manage.

How do you get to know the customer when the people making decisions that affect the entire organization may have never even met a customer?

Know your data

Isn't this the point of Business Intelligence, Data Science, and Data warehousing projects?  As we report and analyze our data our goals are to understand what the data is telling us.


 Know your Customer

  This data then begins to give us an idea of what our customer needs, and wants. There may not always be the opportunity for a one on one conversation with the customer. However, by closely listening to what their data says, you can know and understand how to meet their needs.

This will never replace the meet and great opportunities of seeing for yourself how customers interact with your product or organization.

It is a good start.



 




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2011-07-23

Data is killing us!

Are you drowning in Data?

You have a number of applications collecting various pieces of data in order to run your business. What do you have to do in order for an analyst to make an informed decision?

For the majority of your business operations, dashboards should show current activity. Thresholds can be established for when a particular event takes place and alerts sent automatically. Simulations can be run based on past performance to gauge or even predict the performance of what-if scenarios.

All of these things can be done, the question is: Are they being done?

EMC Symmetrix DMX1000 Disk ArrayImage via Wikipedia

Are there so many copies of your application databases, that the cost of servers, disk arrays and storage going through the roof?


Are multiple people required to keep track of which backups and restores are done on a nightly basis driving personnel costs up?


Are business analysts spending more time collecting data than understanding, interpreting and making recommendations, reducing efficiency?


There is a better way.

A person who studies the practices of data management and the applicability of the various data management tools, procedures or methodologies to the needs of the business can make a difference in the use of an organizations data.

This difference can be measured in many ways. It could be an increase in revenue because a relationship was found in the data that could not have been seen before a new business intelligence system was deployed. It could be cost savings of physical equipment.

More often it is the saving of personnel time associated with gathering data just to answer questions.

Some proponents of vendor solutions will suggest that they have all of the answers to your data needs. Perhaps some vendors do have solutions. However, bringing in a vendor solution will not relieve an organization of the responsibility of data management.

The best way to work with vendors is to get them to fully understand all of the pain points associated with your data. No single vendor can solve all problems. Smart people with a vested interest in making your company successful will help you management your data.


Proliferation of data makes an organization stronger. If data is killing you, then you need someone to tame the beast and make data work for you.

Make your data work for you, rather than you work for your data.

Who are the people that will make your data work for you? A database administrator is a good start, many I have spoken to have plenty of ideas for how to make things better.

A data architect is the best start. Data Architects are the people that have studied data management best practices. A great Data Architect can quickly come to an understanding of your pain points and make recommendations that can be done soon to make sure that data works for you.






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2011-03-02

Data Management Industry?

How important is an industry classification for data management professionals?

I have been asked  the question: What is your industry?

My reply, when given the option, is to say the Data Management Industry.

The particular vertical market that my company classifies itself according to Dun and Bradstreet Industry classification, Standard Industry Classification (SIC) or even North American Industry Classification System (NAICS) has a limited impact on my day to day duties.

Some industries have a more stringent requirement for data quality or data availability than others, but overall the manner in which data is managed between industries is consistently similar.

In every industry I have worked the same process is generally followed.

Data is captured


In Telecommunication, Energy and Supply Chain these systems are usually automated data capture via a field device such as a switch or a sensor, some are driven based on orders and some are driven based on consumer behavior.

In Retail and ECommerce the source data capture component is a customer facing system such as a web site or scanner for checking out at a grocery store.

Most companies have a human resources system that keep track of time for the customer facing employees tracking contextual information such as when did an employee arrive, what did they work on, when did they leave?

Data is integrated


Once we have the source data and as much contextual information about this data captured; that data is transferred to another system. This system could be a billing, payroll, time keeping or analytical system, such as a data warehouse or a data mart. The methods used to create this integration system can vary depending on the number of source systems involved and the requirements for cross referencing the data from one system with the data in other systems.

At times certain data points are transferred outside the organization. This data could be going to suppliers, vendors, customers or even external reporting analysts.

Internally each department within an organization needs to see certain data points. Marketing, Merchandising, Finance, Accounting, Legal, Human Resources, Billing, to name a few do not necessarily need to see all of the data captured. However the data they do require does need to get to them in a timely manner in order for these departments to support the overall organization.

Data is protected

During all of these data interchanges the same types of functions need to be performed.

Data must be secured (the users that need access have it, those that do not need access cannot see it), backed up, restores tested and verified, performance must be optimized, problems need to be addressed when they arise, quality must be maintained, and delivery must be verified.

Data Management Professionals

The Data Management profession consists of people striving to create, implement, maintain and evolve best practices for managing the data that runs our enterprise.

The challenges of data management, the problems we solve and the solutions we provide are more similar than they are different.

Is the industry classification of the enterprise we support all that important?

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2011-02-04

What's your most profitable cupcake?

Intuit has a commercial about a small business owner wondering whether they should make more cookies and cream cupcakes.

Intuit's Cupcake commercial

In the commercial, a store owner says to a guy behind a  computer, "I've been thinking about doing more cookies and cream cupcakes."
Close-up of cupcake with pink frosting and spr...Image via Wikipedia
The go replies, "Oh well let's see what the data says."
A screen pops up with a chart, that shows growing numbers from left to right, and the computer guy looks around to see others in the computer room eating cookies and cream cupcakes.

The commercial then talks about how intuit small business software takes care of all of your data for you.

I have never used Intuit software, but I have built a number of data warehouse systems. A data warehouse is the foundation of a business intelligence solution that this commercial represents.

For small businesses, I am sure it is possible to look into a single application to get the answers to the implied question of the business owner in this commercial. The implied question, of course, is: What is my best selling cupcake?

But what if that question changed just a little bit? What if the question was: What is my most profitable cupcake?

To determine profitability takes a bit more data than just determining the best selling. If you sell 1000 types of cupcakes, but the profit margin is $.05 per cupcake, then you just made $50.00. If you have another type of cupcake that has a profit margin of $.25 per cupcake then you only have to sell 200 to make the same amount of money. In order to calculate this, you need to take into account the cost of the supplies and manpower required to make the cupcake.

Another question that comes to mind is: What is my second or even third best selling cupcakes? If someone buys the number 1 cupcake, what else do they buy? Can I give an incentive for customers to come in and buy my 2nd best selling cupcake, but once they are in the store upsell them to the other cupcakes available? This topic is really called market basket analysis, which is more than I intend to cover in this article.

Which supplier that provides the raw material for the cupcakes is the best? How do you determine the best supplier? Is it the price of the raw material? How many times has the delivery truck been late? Do you have alternative suppliers just in case there is a problem with your main supplier?  What are the questions that are important to you in making these decisions?

Which employee makes the most cupcakes? Which employee makes the most profitable cupcake? Are they the same person? How do you know?

What happens when this store owner gets more than one store? If she is able to buy an existing store, will the new store have the same application? How will the data be integrated to be able to answer "simple" questions like the question posed above?

For some small business a single application may meet all of your needs. When things start to grow, as most small business owners want them to, having a data management strategy becomes a strategic priority. The rate at which data can grow for small business owners today can cause things to become complicated very quickly. The questions that are asked about your business will change over time, and data may need to come from more than one application to answer the questions of a growing business.

Do you know if you are asking the right questions for your business? Do you know if the data you are relying on to answer those questions is the coming from the correct application? What factors should be influencing your decisions that may not be represented in the "off the shelf" application?

How do you determine which cupcakes to make?


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2010-11-23

Data never dies

Do you ever wish you could forget something?

Certainly there are traumatic events in some of our lives that we may wish that we could forget; more often than not most people wish they could remember something.

A taste, a name, the name of a restaurant, these are all things that some of us try very hard to remember at times.

For computer data management it is a different story. I have been in many discussions where we question how far back in time we are required to retain data.

By formal definition this is called the data retention policy of an organization. There are laws in place that require certain records to be retained for 7 years. Some data must be kept indefinitely.

This simple term: “Data Retention Policy” can have an impact on software purchases, hardware purchases, man-hours and processing time for an analytics application.

Why is my application taking so long?


As the volume of data within an application grows, the performance footprint of the application will change. Things that previously ran fast will begin to run slow. I once worked for an application vendor and handled more data management issues than software development issues. On one particular occasion shortly after I started there I received a call about the application not working. Upon review of the environment where “nothing had changed” I discovered the problem. The SQL Server database was severely underpowered. Simply manually executing the SQL directly through query analyzer showed dreadful performance.

We had to recommend an upgrade in hardware. Once the customer purchased new hardware I took a team to the customer site and we did a migration of the data from the old server to the new server. When I left the site, I heard numerous people talking about how the application had not worked that well since it had been freshly installed.

A simpler answer may have been to “archive” data, to clean it out so that the performance would have returned to a fresh state or even just delete it. The reason we could not do that is that this particular application was a time tracking system for recording time-in and time-outs of employees working at a refinery. Employee data is not something that should just be purged; especially data that directly impacts how contractors and employees are paid.

The data would be studied for some time to report on cost expenditures for the site where the work was recorded.

But simply upgrading the back end database server was really only a short term solution.
This is a case where we kept all of the historical data within the application itself for reporting and study.

Reporting systems can help


As a data warehouse engineer, now I would have suggested an alternative solution. I would have suggested that “warm” data should be moved to a reporting application for reporting and study.

A threshold should be established for what is useful within an application itself for data that is pertinent and needed on a daily and weekly basis. This is the “hot” fresh data that is currently being processed. The data that is important for business continuity and reporting to auditors, vendors other business units and executives does not necessarily need to be kept within the application itself. We should have spun off a reporting system that could be used to retain that data and allow study and reporting, but not bog down the application itself.

Building specific reporting systems is essential to maintain optimal application performance. By offloading this data into an Operational Data Store, Data Mart, or Data Warehouse you will keep your “hot” data hot and fresh and your “warm” data will be available for use in an environment that does not interfere in any way with the day to day work of your business.

How long do I keep data?


How long data is kept for each business unit within an organization is a question for each business owner. Law’s need to be examined for requirements, analysts need to make it clear how much data they need to see for trending analysis, and data management personnel need to contribute to the discussion by showing alternatives for data storage, retrieval and reporting.

Keep your corporate “memory” alive by having a current data retention policy that is reviewed every time a new application is brought online. Reviewing your data retention policy at least annually keeps this issue fresh in all of the stake-holders minds. Disaster recovery planning and performance optimization both are influenced by the data retention policy.

Since the data of your company is really all of the information about your customers, vendors, suppliers, employees and holdings data never dying is a good thing!

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2010-08-18

The Architect vs. Superman.

I consider that there are really two types of workers in the IT field: The Architects and the Supermen. A mature Superman realizes that they cannot continue racing against time and performing super feats in order to save the enterprise. An immature Superman thinks this is the way things should be done.


There is an old joke I heard when I was in the Marine Corps. A young bull walks up to an old bull and says excitedly “Hey, lets run down this hill jump over the fence and have our way with one of those cows down there!!!”. The old bull looks up from chewing some grass, looks at the fence, gazes over the cows on the field, and then looks at his young friend. “No, let’s walk down the hill, crawl under the fence and have our way with all of them.”


A little planning can go a long way towards a successful project. In my opinion Architected solutions that have built in flexibility lend themselves towards ease of extensibility. I once wrote a system that required data to be loaded from a flat file into a very specific structure. Instead of simply writing the code to move the data from one table to the other using a stored procedure that was 5 pages long, I simply inserted the data into an intermediate table with some extra columns for housekeeping and data matching.


We were able to re-use that structure for a half-dozen later projects. So instead of each time figuring out how to put the data into the target structure and duplicating the code repeatedly to update the housekeeping and matching, we simply put the new data into the intermediate structures and let the normal process work.
I was told later that before I got there the developers would have re-written all of that code multiple times with each one being coded slightly different.


There are times when it is tempting to break out the mountain dew and pull an all-nighter. But if you are doing this a number of times to “keep the business going” then I contend that someone in your organization needs to go back to the drawing board or modeling tool of choice with your business users and make sure that everyone understands the fundamental business and technical process to keep the business running.


Those of you who say that the business process and the technical processes are totally separate need to consider the following: If the business is not making money, then who is paying your check? For those business users who think they don’t need to be involved in technical decisions, consider this: If you shut down your data center for 2 days, or even 2 hours, would your business process continue? We are all in this together.


I titled this article the Architect vs. Superman; however there really is no battle, because if you have an architecture for your IT applications, data, security, quality, testing and infrastructure then you don’t need superman.
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