An important lesson learned from Jim Collins' Hedgehog Concept (2004) is that passion alone is not enough. Passion is an important starting point, as we've written previously, and a prerequisite to motivating the organization. But when passion becomes unbridled and unstructured, it becomes difficult to establish a structural change - one that is sustainable, relevant, and impactful in our modern, volatile world. You don't want to be a one-hit wonder, after all.
BI and AI are are becoming an inseparable dynamic duo. This makes sense when you consider that both disciplines support the business in taking critical business and operational decisions. This duo is also fueled by the same thing: (big) data. Although BI and AI each have their own goals, applications, and issues, we're seeing several converging trends that will dominate the twenties. Our top 9 of technology trends combines business intelligence trends with big data trends and data analysis trends. Trend 1. "AI-first" strategies will dominate
From a top-down view, data-driven management enables the (necessary) transition from the management-driven style of improvement ("papering over the cracks") to actual data-driven improvement. Autonomous, entrepreneurial employees; short-lived, modern customer-focused strategies; and flexible structures are the contours of the intelligent, data-driven organization. They're the same ingredients you need to be agile and adaptable. In short: how do you get from management-driven to data-driven continuous improvement?
"Life-saving BI", some Dutch magazines called it. "A smart logistical solution, made insightful with a dashboard", Martin Smeekes (director of ambulance care) and Anouk Schoemaker (business and BI manager) humbly describe it. However you call it, the "Call to Balloon" project earned the Safety Region North-Holland North the predicate of Smartest Organization in the Netherlands (2015). And, more importantly, 20 minutes of crucial time for patients with immediate cardiac issues that need angioplasty. Those precious minutes can mean the difference between life and death.
Data analysis, and data-driven working in particular, enables organizations to make the most of their improvement potential. But in order to live up to their fullest potential, some proverbial sacred cows will have to be sacrificed on the altar of progress. So says Daan van Beek, founder of Passionned Group and author of management books such as Data Science for Decision-Makers. The idea of BI as a separate department, for example, is a thing of the past. "But that's okay, because change releases new energy," according to Van Beek.
Earlier, we covered several methods of defining the right key performance indicators. Many organizations still use "false" KPIs: they may be indicators, but they're not necessarily key! There are several negative side effects of measuring performance using false indicators instead of genuine KPIs (de Bruin, 2001). This can lead to perverse incentives and negatively impact the business. Below, you'll find seven common pitfalls of working with false KPIs.
Many organizations are paying more and more attention to PDCA and continuous improvement. That's no surprise, because this powerful improvement method leads to much better results. PDCA is embedded in the heart of every intelligent organization. If you want to successfully apply the PDCA methodology, you have to be cautious. There's a slim margin for error. Employees have to be inspired and mobilized, feel appreciated, and be able to reflect on their actions. Without taking the right steps, the approach could fail, and your team might sour on the whole approach. Here, we've compiled the 5 biggest pitfalls to avoid when implementing PDCA.
Defining the right KPIs (Key Performance Indicators) alone won’t get you where you need to go. The biggest challenge is taking data and using it to continuously learn and improve, and eventually achieve better performances. Intertwining KPIs and (big) data with the daily process of continuous improvement using so-called PDCA improvement cycle leads to sustainable value creation. Doing this will let you reap the advantages of working with KPIs while operationalizing the results.
Earlier, we covered two different approaches to defining KPI requirements: the strategy-driven approach and the process-driven approach. Today, we're covering two other methods: the data-driven and the market-driven approach. The data-driven approach defines KPI requirements using the registered data in the information systems supporting the business operations. External data sources could also fulfill the information requirements. An intelligent organization will also consider any other potentially interesting sources. Possibly even sources that don’t exist yet, but that have the potential to generate a lot of interesting data. For example, (IoT) sensors built into pills, trucks, or plane engines. This approach works as follows:
Research among almost four hundred organizations has shown that the famous PDCA cycle (Plan-Do-Check-Act) is crucial to achieving better business results. Not only can it improve your profit margins and drastically reduce workloads, it can also lead to increased customer satisfaction. Dr. Deming's quality cycle has proven to be the foundation of using management information and KPIs to achieve great success.
As project leader, you're cradling an ambitious BI project, and you're looking for theoretical and (especially) practical frameworks. You know that you can achieve better results using the right management information. Googling "Business Intelligence" returns 527 million results. "BI Tools" narrows it down a bit, but still returns 855,000 hits. Discussions are spreading out in all directions and it's hard not to get dizzy. If you want to get serious about working with BI, it's easy to end up in a roller coaster. You'll want to get both feet on the ground again as soon as possible. But BI is dreaming, daring, and especially doing. But you don't have to start from scratch; you can learn from the growing pains that others have already experienced. The road to hell is paved with good intentions. after all. Learn to recognize these symptoms and avoid them, or deal with them. This stories are based on the goals and ambitions of the hundreds who have taken our Business Intelligence training course.
Advice, research, and project management are serious matters that require a high degree of responsibility, involvement, and objectivity. These are our specialties. By working closely with you and your employees, and with crystal-clear communication, we deliver keen, executable advice. This is why dozens of clients have already used our services. Here are 10 reasons why you should consider contacting us.
As a leading consultant in Business Intelligence, we offer a small but high-quality range of Business Intelligence services. Our Business Intelligence guide focuses on what you want to achieve in the near future, what the business benefits are, and how to get there, in 5 steps. Where are you now? The current Business Intelligence situation will be addressed, discussed, analyzed, and compared with the best practices and newest available technologies. We will help you to quickly find out where improvements can be made.
Big Data has many potential advantages. It can provide new insights into consumer behavior, show you in which areas the organization can work more efficiently, predict future changes, and much more. However, many companies forge ahead into Big Data without being adequately prepared, and charge straight into a pitfall. Research shows that about 60% of Big Data projects stumble out of the starting blocks. How can you make sure that your organization doesn't become a statistic?
It's said that wisdom comes with age. Does this also apply to organizations? Do they become wiser and smarter as they get older? There are examples of old-fashioned companies. They constantly reinvent the wheel, such as IBM. But think of beverage producers like the Brand (since 1340), Bols and Grolsch. They have existed, and managed to survive, for a very long period of time. These types of organizations are an exception.
An old term from 1960 revived. It develops really fast, powered by all applications of such major data masters as Google, Uber, Amazon, LinkedIn, Instagram and Facebook. The algorithms were there, but the large amounts of data were missing. Artificial Intelligence never managed to get rid of this. And forecasts were not always as reliable. Now, since more and more pictures, videos, blogs, posts, and sensor data gets available, AI acquires its actual added value. Photography becomes the new universal language (Heiferman, 2013). This sounds intriguing. Every day, 1.2 billion images are taken worldwide. They are shared and distributed. This new language also raises some questions. Isn’t the first impression of a photo too dominant? Numerous studies, including the one conducted by the Yale University, show that people are bad in making good decisions, especially at first impressions or under pressure. Such effects as priming, group polarization, the opinion of the majority or the confirmation bias throw spanner in the works.
Business analytics improves the process of value creation in organizations in two ways: There are managers who use business analytics to achieve strategic goals or solve vital problems of their organization. Other managers involve business analytics specifically to create new opportunities for their organizations, by encouraging necessary innovations through Big Data and necessary changes made in time.
'The Agile Organization - Agility-Based Strategy in Practice' has been recently published, which is the latest book written by Mr. Leo Kerklaan. Besides being an associate partner at Passionned, Leo is an administrator, lawyer and author of several successful management books, including 'The Organization's Cockpit'. In honor of publishing his latest book, he talks more about the insights that the book brings up, and he also shares his opinion on the intelligent organization.
"Lean brings out the best in everyone" Passionned Group keeps growing and is consistently working on improving services. People are essential in making an organization work smarter. Because once the processes are arranged smarter and the 'Lean'-thinking is embraced, the new method of work should also be anchored into the organization's DNA. So, companies must learn to think both vertically and horizontally, and again put their teams in the driver's seat with the help of information that really matters.
The municipal organization is under constant pressure. New developments, new responsibilities, and the demand for new perspectives are ever increasing. Consider: The guidelines: oriented on process, information, area, the public, results and performance Manner of working and managing: demand-driven, Information-based, and so forth The call for the expansion of the management function and agility in decision making and implementation.
Rituals Cosmetics, Noord-Holland Noord Safety Region, and Tempo-Team recruitment agency have been nominated for the award for the 'Smartest Organization of the Netherlands’. The Dutch Business Intelligence Award jury will announce that today. These three organizations excel in effective, intelligent, and agile business processes through the smart use of (big) data. On December 3, 2015, the winner will be announced during "Intelligence at the Speed of Business" annual conference.
North Holland Safety Region is the top winner of the Dutch Business Intelligence Award 2015 and was nominated as the Smartest Organization of the Netherlands. The organization is a great example through the use of smart data combinations and interactive dashboards in reducing acute heart attack care processing time by up to 20 minutes. Data-driven improvements with major human and social impact, which are appreciated both by the Jury and the public.
Information 'tells' us more about the situation. Something that we did not know for example. Information can also confirm whether our assumptions are correct or not. Then we can decide to take action with the intent to manage towards the desired situation. I knew there was a party tonight, but after I heard that my favorite band is playing, I decided to go. To go or not go, to do or not to do; they are simple choices. Decision-making is often more complicated.
Company processes are the arteries of an organization. When an organization grows and puts on weight, these arteries become narrower and eventually get blocked altogether. Getting people to work together becomes more difficult, the organization structure and the company hierarchy play a more important role and management becomes more difficult. We pay less attention to the needs of the customer. The “organization jungle” with its countless departments, business units, task forces and all their meetings becomes so dense that we can no longer see the wood for the trees. This is true for not only our staff but also for our customers.
The Passionned Parabola™, a part of the annual Business Intelligence Tools Survey by Passionned Group, has revealed that the large traditional IT companies risk losing their position as BI market leader. They lack focus. The vendors who occupy the best positions in the Parabola, namely SAS, MicroStrategy, Qlik, Tableau and Yellowfin BI, are all companies that focus completely on Business Intelligence and Analytics.
Controllers like to keep things manageable and help organizations with keeping KPIs in order. This is understandable and good from a risk management perspective, but modern controllers must now know everything about Big Data. This is because established KPIs and manageability have to clear the way for Big Data and innovation. Organizations that lose sight of this transition risking completely missing the boat.
Entrepreneurs analyze data in order to innovate, to adjust their strategy, or to think up an advertising campaign. But business intelligence does not make sense if it only draws some data from a database, explains expert Daan van Beek. Simply put, business intelligence is data collection within your own sector in order to do smart things with it. Explaining the term is not needed when mentioning Big Data, a term that is used to indicate big amounts of data.
In 2014, the Rotterdam's community wanted to bring more cohesion to all BI activities. It started with information architecture and the description of a strategy. A pilot project focused on school dropouts, along with Passionned Group, must now show how it works in practice. Communities become increasingly aware of their long-standing policy cycle based on multi-year plans failing to work so well as used to. There is also a growing need to be flexible and to be able to stay in tune based on available current data. Willy Groenewold, senior information management adviser at the CIO office of the municipality of Rotterdam, has therefore introduced the term ‘information-driven working’ at the municipality. “It’s a somewhat more value-free term than business intelligence, chosen in order to break free a bit from the technology and from the ‘that’s-not-for-me’ feeling.”
In this article I’m going to share some of my experiences from the SAS Analyst Conference, May 27 - 29 this year in Marbella. The first slide Jim Davis, executive vice president of SAS, showed had instant impact: their revenue growth over the last 39 years. Year over year a steady growth without any big difficulties, now earning a revenue of more than 3 billion dollars a year. Foremost I was wondering what the driving forces are behind that continuous growth and success. I think there might be lessons for all businesses in that, especially for the companies that are operating in the BI and Analytics arena.
So far on this website, we have reviewed various general principles for creating more agile organizations. Aspects that stand out are coherence and integration. Research confirms (Collins 2004) that companies which continue to perform very well for several years ensure that everything improves cohesively. Organization and technique, culture and strategy, perseverance and belief, employees and managers, processes, structures and systems all have to reinforce and serve one another. In this way we can cooperate better.
Martijn Stuiver (40) has been the Director of Continuous Improvement at Passionned Group since the beginning of this year. Martijn is an expert in the field of change and behavior and will help customers of Passionned improve themselves continuously and learn how to be innovative. “Change is difficult,” says Martijn, “but if the objective of the change coincides with the goal of the team, the work becomes more fun and the team members end up producing better results.”
Passionned Group is about to enter a new phase in which interim assignments are going to occupy an increasingly important role to help and retain clients. Changing market trends play an important role in this. He or she should be a driven professional with his/her own sales responsibility. Your primary objective will be to generate revenue by placing interim managers and specialists with customers. This means that you will know better than anyone else how to position Passionned Group well with prospects (new business). You should be a fully-fledged (substantive) discussion partner for clients and are perfectly able to comprehend issues and hiring needs, and you should be able to translate these things into concrete assignments.
Driving a car is in a way quite similar to steering an organization: when you know how fast you drive (an indicator) you in fact know nothing (yet). You want to know when you will arrive at your destination; you will want to know whether you are driving in the right direction; you want to know if there is enough gas left, and so on. Steering an organization well is therefore only possible when the organization meets the conditions for effective management:
Traditional organizations make decisions occasionally, intelligent organizations make decisions constantly and at all levels, even beyond the boundaries of the organization. It is therefore quite conceivable that professional Business Intelligence – using innovative IT – could halve the response time of organizations, thereby enhancing the adaptability by a factor of two. The adaptability of an organization is, among others things, a direct result of how quickly the organization responds to changing market conditions (Liautaud and Hammond, 2001), for example aggressive competitors entering the market or the industry regulator tightening or loosening certain rules. We examine the boundaries of the Intelligent Organization from three different perspectives that harmonize with the three stages of the Intelligent Organization:
Consequently, the market expands, offering organizations opportunities to widen their sales territory and market share without losing sight of specific customer needs. The ultimate marketing goal is thorough customer segmentation, preferably in such a way that each customer represents one segment and that they are approachable as an individual, as a person (Peppers and Rogers, 1996). That is not an easy task in this era of increasing individualization and the ever-expanding population.