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James Taylor

I will use this blog to discuss business challenges and how technologies like analytics, optimization and business rules can meet those challenges.

About the author >

James is the CEO of Decision Management Solutions and helps clients automate and improve the decisions underpinning their business. James is a passionate advocate of decision management.

Editor's Note: More articles, news and resources are available in James' BeyeNETWORK Expert Channel on Decision Management. Be sure to visit today.

In 2005, Mr Ahmadinejad got 17 million votes and in 2009 he got 24 million.
The question is, where did all those extra votes come from?
The answer, according to this study, is not at all clear.

I don't write political or personal posts and, despite first appearances, this is not one either. When I saw the BBC News post from which the quote above is taken (Iran: Where did all the votes come from?) I was inspired to blog not so much by the specifics of the situation as by the process followed by the folks who investigated the situation. They took a result, one in dispute, but then looked past the simple facts to see how likely the result was to be reasonable and a truthful representation of the voters' intent.

For instance they went beyond the facts that the vote percentage for Mr Ahmadinejad only rose by 1% and that the poll some weeks before the election also showed him winning. They drilled in to ask questions like "how many more votes does this 1% swing represent" and "are the regional variations the same or similar in the two elections" and "how would voting patterns have to have changed to generate this result". All these questions, and the statistical analysis that backs them, result in interesting conclusions.

But, like I said, this is not a political post about the election in Iran. What I want to ask you is how often you do this kind of analysis when someone presents a conclusion? How often is the data that has been used to base decisions in your company put through this kind of analysis? Is anyone asking the hard questions about the data that drives your company?


Posted July 1, 2009 6:32 PM
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Timo Elliot had an interesting post Gartner on Collaborative Decision Making in which he discussed a report from Gartner called The Rise of Collaborative Decision Making (and thanks to Nic Smith of Microsoft for the link). This kind of ad-hoc, collaborative decision making is critical in companies and technology to support it is thin on the ground. In fact this was the topic of an Andrew McAfee post, The Diminishment of Don Draper in which he made the point that unsupported, gut, expert or oracular decisions have some serious limitations:

  • Opaque - you can't explain them
  • Not amendable - they are take it or leave it propositions
  • Not disconfirmable - there's no explanation of how they are made that can be analyzed
  • Not revisited - because there is no way to "edit" them
This prompts two thoughts. The first is that the kind of technology David Ullman has been working on (Accord, reviewed here) is worth considering for this kind of collaborative decision making. A decision supported by Accord would be transparent - you could see why you decided the way you did - as well as editable over time so that new data, or new options, could be integrated and evaluated.

The second is that these same characteristics are true of decision made by your front line staff when they interact with your customers. They often can't explain them, not that anyone really asks, and they tend not to be amendable because the customer moves on afterward, happy or not. There is no way to analyze the thought process of these staff and so no way to revisit them to devise a better approach in the future. And these issues are more serious because we are not talking about the executive team (complete with lots of experience, assistants and analysts, deep business understanding etc) but about your least experienced, lowest paid staff.

In this second scenario one effective approach is to use Decision Management to put the decision making into your systems - into Decision Services that support your systems to be precise. Embedding the policies, regulations and best practices that you want applied as rules and using the data you have to drive analytic models with simply outputs (scores, for instance) gives better decisions to the front-line while ensuring transparency and an ability to analyze your decisions and learn what works so that you can constantly improve.

So figure out how to help your executives and managers collaborate around decisions effectively and use Decision Management to ensure you know what's going on at the front line.

Posted June 25, 2009 5:00 PM
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The International Business Rules Forumâ„¢ is the premier Conference dedicated to Business Rules, where the future of Business Rules, Decisioning, Compliance & Enterprise Design is taking shape! This year's event covers Business Rules, Decision Management, Business Process, Governance and Compliance. Once again I will be giving a tutorial and a keynote and acting as track chair for the great decisioning track so register NOW!

The 12th International Business Rules Forum is November 1-5, 2009 at the Bellagio, Las Vegas and this year's theme is All Around Decisioning. The 2009 Conference Program is now available and you can register for the Super Early Bird by June 30! Take advantage of the Super Early Bird and get 5 days for the price of 3 or the 3-Day Conference for only $1,295. More details over on my other blog.


Posted June 11, 2009 5:43 PM
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No sooner had I decided to cross-post one product review from my main blog when a second one seemed worth doing. This time it is my review of Lyza.

I got a chance to see Lyzasoft's new product in action recently. Lyzasoft aims to provide a desktop product for business people to do analysis that can seamlessly scale up, unlike (say) spreadsheet based analysis. The product is based around a column store.

Workbooks are the core metaphor and these are used to assemble flows. Data connections are the first step in these flows and can be created from Access, text files, Oracle database etc. Users can drag and drop various elements - a stack of queries, perhaps, that are linked. Data is then sucked into the column store. A nice drag and drop interface allows joins, appends etc to be added. Each node in the workbook flow consists of Input - instructions - outputs and it is easy for users to chain these together. For each node the user sees input data at the top for the sources being manipulated. Simple operations and drag and drop can then be used to take action. For instance, similar columns can be dragged so that the tool knows that they can be stacked. Users can also set default values, define formatting and more as they work on the data. It is easy to add filters and other transformations and Excel-like formula building in column definitions allows things like "previous purchase" to be defined as a column. Nodes include summarization (non destructive), filtering (destructive), calculations (additive), joins (could do anything), sourcing decisions and more.

The tool is designed to handle large data sets and flag issues (like missing data) automatically. It takes seconds to import millions of rows and it is very quick to display results, filter down by values, summarize etc. Everything is designed to make it possible for non-techies to work effectively. The join node, for instance, has nice visual clues using a Venn diagram and handles conversions of data elements so the join can be defined. The speed allows constant visual feedback for users so can see the results of an action, decide if that is what they want / expected and either undo or continue. They do not have to worry about the technicalities - is this an inner or outer join for instance?

Users can build nice graphs and generate trace documents from XML specification of the environment. Everything is traceable and visible. If a user wants to build on someone else's work and have access to their analysis they can see the trace all the way back. This means any shared analysis is understandable and the traceability is one of the product's best features. In addition this XML-based information specification can be moved to a server based environment. This allows companies to bridge ad-hoc, end-user centric analysis to IT. No re-do. No spreadsheet brittleness, very nice as this allows people to answer the question "What's in that number?" - the derivation of summary information is key and is made visible by the product. The tool also allows "re-parenting" so that a temporary source (say a file dumped out of a database) can be replaced (say with a live connection to the data). This is a powerful feature for creating the seamless promotion from end-user to centrally managed.

There is a web services API for the flow and access to enterprise databases in the enterprise version and a light version without enterprise connectivity or APIs. In addition there is a commons version for brokered peer to peer sharing of analysis. Servers can allow analysts to create pub/sub relationships with each other to share analysis and these can be monitored. The intent is to make it possible to manage analysts, replace people who quit, update schedules and so on. Cut and paste replaced with links through a shared commons. They are adding a web front end so that non-Lyza users can consume/comment on reports and analysis also.

They are adding some stats and analytics e.g. stepwise regression but there is clearly more to come.

I really liked both the ease of use and the way in which end users are brought into the tool without being condemned to a marginal existence - the same analysis can be created locally and then shared effectively as part of a real IT system. The traceability and the declarative nature of the tool were both great.


Posted June 10, 2009 7:01 PM
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I regularly post "first looks" at new products on my personal blog and my review of the new release of myDials seemed worth cross-posting to BeyeNetwork.

myDials is a company focused on optimizing operational performance by delivering timely, relevant, actionable performance metrics, contextual information, guidance and "every person" analytics. On June 8th they announced myDials 3.0. myDials is focused on helping all employees focus on the monitor/analyze/adjust cycle that helps ensure that operations remain in synch with company strategies and plans. They feel that all employees must participate in this process and this is tricky because you need to view financial and operational data intuitively. Most companies end up with lots of spreadsheets and inconsistency as well as after-the-fact analysis. In addition, Key Performance Indicators or KPIs need to be turned into Key Performance Drivers and these need to be compared with targets to find variance. This variance needs to be interpreted and some action taken. myDials functionality includes:

  • Monitoring of KPDs/Targets using dashboards - they have added time context and personalization in 3.0 as well as a metric library
  • Alerting using a rule engine for visual and email alerts
  • Knowledge sharing through embedded information annotations
  • Analyzing - they have expanded drivers, trends, forecasts, control charts and pareto in 3.0
  • Acting - they have added what-if scenarios in 3.0

myDials is a hosted on demand application. The basic view is a dashboard with various tabs. A nice looking collection of gauges and graphs - they call all these Dials - is available and these are collected into ribbons that can be collapsed and expanded. Navigation controls are kept off until you mouse over a dial to keep the interface clean. Dials can show information that describes them with web links to supporting information (inside or outside the firewall) as well as visual alerts, a nice feature.

Dials can be expanded and users can drill into the relevant dimensions. The expansion mechanism is nicely implemented, keeping a train of context - a drill tree if you like. Notes can be added to data points and these will be seen whenever the data is used in a dial - a nice way to share information about what is going on. The context for the whole dashboard can be changed (from worldwide to Europe, for instance) and a set of breadcrumbs is displayed to show where and when you are in the data. Sliders and other controls can be used to move around the time period or to see quarterly or annual roll-up or weekly/daily drill-down for instance.

For each dial a set of drivers can be defined. When a dial is in an alert condition you see which drivers are out of range and can drill into this to see what is contributed to being out of range. These drivers can be defined with complex expressions and different zones (Critical Zone for instance) can be specified using a formula. Alerts can be specified in terms of conditions using the expressions (including calculations across multiple metrics and periods) and notification rules can be specified similarly.

myDialsUsers can enter values directly to create a "what-if" scenario too. The dial then responds to the what-if data and shows what the impact would be (all dials impacted by the what-if analysis show a what-if symbol). Multiple points in a dial can have what if data added to simulate trends. Dials can also automatically display analysis lines across the dashboard. Trend lines, appropriate to the kind of data, are displayed. The kind of trend analysis desired is specified as part of the configuration and then on-the-fly analysis is performed on the data in the dial to display the trends.

myDials is focused on manufacturing, energy, mining particularly (and has some features that support these industries nicely) but is seeing growth in government and healthcare / hospital management.

Like some other dashboard tools I have seen recently, the folks at myDials are keen to ensure that users can take action in response to what they see. I also appreciated the efforts to bring predictive analytics/trending to bear in a way that would make sense to a user and their focus on operational decisions. Because these trends can be used in the alerts users should be able to define alerts that will be triggered when something is about to go wrong, not just after the fact. As always I would like to see more ability to automate the actions being taken as a result of changing data but overall myDials is a nice looking product with a good attitude.


Posted June 8, 2009 9:25 AM
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Last week I posted Use decision management to make systems smarter and I got two interesting comments. Ronald made an excellent point first:
I don't think the lack of deep analytic tools is the prime reason for BI not being intelligent. In my opinion it's the lack of education and skills concerning analytical methods and thinking in the individual as well as the lack of 'an analytic culture in the organization'- which Davenport also writes about.
This is, of course, true. People tend to look at data in a fairly shallow way and all too often make decisions based on their gut rather than on rigorous analysis of data anyway (as discussed in this post To Hell with Business Intelligence, try Decision Management). George followed up on this by saying:
Going deep to analyze the data available to the organization is great, but if the user getting the output of that is not trained or capable of understanding how to use that information, it is all a waste of effort.
Now while I agree with the two of them I would say one thing about decision management - the users of a decision management system don't need to know how to use the information or need to have analytic skills. Indeed that's part of the point - the analysis of the information, the insight that can be derived from it, are embedded into the system and the user simply gets an answer (perhaps a yes/no answer, perhaps a price, perhaps a range of options from which to choose). You still need analytic skills, you just don't need them in the application's users.

IBM used a neat phrase when they launched their recent business analytics service line - from decision support to action support.

Posted June 8, 2009 7:56 AM
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Michael Vizard had an interesting post (via @merv) - Making Business Intelligence Applications Smarter in which he began with the great phrase:
One perplexing oxymoron of IT industry is the simple fact that most business intelligence applications are not all that smart
In Smart (Enough) Systems Neil and I argued that the way to make systems smarter, smart enough to be useful in fact, is to focus analytics on improving the operational decisions that drive the day to day aspects of your business. These micro decisions can and should be improved with analytics and this makes a huge difference because these little decisions add-up - small improvements make a big cumulative difference.

It seems to me that the reason BI applications are not that smart has two causes. The first, the absence of deep analytic tools, is the one Michael identifies. But I think there is a second problem - a failure to focus on the decisions that are going to be made differently. Data mining and predictive analytics can simplify data to amplify its value and turn uncertainty into usable probability. But the value of this will always be limited if it is not focused on decisions. And, I would argue, operational decisions at that. This is the premise of decision management and this is how you can use your data to make your systems smarter.

Posted June 4, 2009 5:42 PM
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Gary Cokins had a great post - Fill in the blanks: Which X is Most Likely to X? in which he identifies some great uses for predictive analytics.Increasing employee retention, increasing customer profitability and increased shelf opportunity are classic uses. What Gary does so well in this post, though, is point out that a prediction is not enough - you must take action. For example, knowing which employees might leave will not help unless management intervenes. All too often I hear folks talk about predictive analytics as though the prediction is the end game. And when I hear this I always say "so what?". For instance:
  • We can predict which customers are at high risk of churn - so what? What decsion(s) will you make differently as a result?
  • We can predict which products are most profitable - so what? Can you change the way your website makes offers to promote the ones that are more profitable?
  • We can predict which transactions have high fraud risk - so what? Can you mix this risk with policies and regulations so that you can intervene effectively and legally in a real-time process?
This whole area was the focus of a webinar I gave for bettermanagement.com on Putting Predictive Analytics to Work and you can watch the recording on the website. You might also like the White Paper of the same name that's up on the BeyeNetwork site.

Posted May 26, 2009 8:38 AM
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Merv Adrian recently posted on Information Builders Prepares to Ramp It Up and this made me think of webFocus. Like Merv I recently spoke with Michael Corcoran and learned a little more about Information Builder's attitude to decision making and information.

The webFocus page says "Because Everyone Makes Decisions" and pushing information access and analysis to front-line workers, customers, consumers is clearly a big focus at IBI. In this context I am fond of a quote from Peter Drucker "Most discussions of decision making assume that only senior executives make decisions or that only senior executives' decisions matter. This is a dangerous mistake".

Now IBI moved to a web-based architecture a long time ago (webFocus came out in 1996) to try to change the dynamics of potential users - not just a few desktop users but massive numbers of end users and customers. While this was a little early for many, today a web-centric approach is clearly mainstream. This focus on distributed access over the web combined with their "If you can buy a book online you can get your own information on demand" interface for guided ad-hoc reporting makes the product particularly interesting for non-technical users.

One of the interesting side effects Michael discussed was that of behavior change in those folks who were given access to information, especially information that allowed them to compare themselves to others. It turns out that people with more information about their performance take their performance more seriously.

It is clear that lots of people make decisions and those decisions should be supported by the right technology and for many of those decisions this means making data and analysis of that data available. But the systems those people use should also make decisions. This might mean taking a decision completely out of someone's hands and automating it or, more likely, automating all the easy ones (80-95%) and leaving the user to handle the tricky ones. It might also mean automating the process of determining context for a decision - helping a user focus on the 3 viable options not the 300 possible ones. This is where decision management comes in.

I wrote about pushing BI beyond business managers before. I think one of the most important steps a company can take in adopting the right mix of business intelligence and decision management is to be explicit about the decisions it is trying to influence. Once you know that, you can look at each to see if it should be supported or automated or some mixture of the two (using automation to restrict the array of options available, for instance, to a shorter list). Leaping in to using BI to support a decision or rules to automate one without having given enough thought to the who/what/where/when of the decision is unlikelly to result in the best outcome. BI, especially BI for consumers and front-line staff can and should be balanced with decision management.

Posted May 18, 2009 1:01 PM
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In Is Data a new defensibility? Abhishek Tiwari argues that even data is not defensible any more. He argues that data integration and the use of new sources of data are key skills but that companies cannot use unique data to differentiate because there is too much data and too much of it is available publicly.
He has a point, of course. Lots of data is available publicly and using it won't necessarily give you much of a competitive advantage. What I think he misses is the value of data that you have about your customers and their behavior. You know, or at least could know, which of your customers bought what and when. You can track what they look at on your website and map that to your products and offerings. You can track who calls and what they call about. And you can use this data to segment them, make predictions about them and assess them. To a large extent, your competitors cannot do this. This gives you some critical, defensible, advantages:
  • You should be able to make retention offers that are more compelling than the acquisition offers your competitors make when trying to steal away your customers
  • You should be able to target your customer acquisition efforts on those people who look the most like your existing customers - after all people like that chose you over your competitors before.
  • You should be able to enhance the publicly available data with your own data to form a picture that is richer and more actionable than someone working from the public data alone.
Of course all this only works if you have the ability to effectively and rapidly develop and use analytic models based on this data (to minimize decision latency) and, in particular, if you have a way to put these analytics to work in the production systems that interact with customers and prospects. Putting a decision management framework in place allows you to do both these things, turning your unique data into decisions that are, in fact, defensible.

Posted May 12, 2009 1:07 PM
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