Time to change two Perceptions

Perception

We rely on our senses to interpret our world, and without question, we trust them to do it accurately. We take decisions based on what they tell us, decisions that in the commercial jungle make the difference between success and failure. However being in the best informed position to take a decision is getting harder. As complexity increases, so too does the amount of information that needs to be gathered and evaluated. This presents three major challenges to be achieved in a cost effective and timely manner:



Obvious? Let's give it a try. Take a look at the image of a chequer board above. Specifically look at squares A and B. Describe them and compare them with each other and write it down on a piece of paper. Write down as a percentage how sure you are of what you have written. If you do, this piece of paper is going to help you for the rest of your life! So now you have completed the three steps above, let's take a look at what you have.

Have you written B is lighter than A, or A is darker than B or something similar? Hopefully you are at least 100% sure of your answer? Of course this is what you have written unless you have seen this before. That is what your senses are telling you is true and they are wrong. Square A and square B, aside from having different letters in the middle of them and being in different places on the board, are the same colour. Now we know from experience that the only way to prove to you that black and white are the same is by demonstration, as neither you nor I can possibly 'see' A and B as the same in this drawing. So here is the demonstration straight from MIT.

This cool trick neatly demonstrates how bringing together the information available in a different way and using more thorough analysis can reveal crucial information. Without this information misinformed decisions will be made. This trick can easily be used in a bar to get people to buy you drinks as people will bet on what their senses tell them.

Does this happen in real life, in the business world, or is it just a parlour trick? Unfortunately the proof is close at hand and all too current. We all knew that we couldn't go on borrowing and that an ever growing economy was bound to fail. We all knew that there must be unseen factors at play that were responsible and that at some point it would unravel; but we kept right on doing it. We believed our eyes and not our experience and we didn't look beyond to get all the facts.

Most companies today have plenty of data. Conversely, creating intelligence and gleaning real insight from this data is what continues to elude organizations. Despite years of talk about scorecards and metrics, gut feelings and experience are often still the guides for making important, sometimes critical decisions, even though current research reveals a clear link between business performance and the use of business analytics to drive fact‐based decision making.

From Competing on Analytics: The New Science of Winning by Thomas H. Davenport and Jeanne G. Harris

So what's our point? Information systems are letting you down. They aren't enabling you to bring together all of the information you need, in a timely manner and at a reasonable cost to ensure you are fully informed to take the best decisions possible. They aren't enabling you to ask new questions and get them answered in a timely manner. This isn't your fault. You have spent millions on what was state of the art capability to have the best system money could buy, and until now that was exactly what you had. Only now it is outdated. New information is available, the game has changed. We can deliver you the information you need, bring together information from otherwise incompatible sources, analyse it in multiple dimensions and make it available in formats that are intuitive to use. We can help you to make better decisions than the competition.

There is also some more crucial learning from the exercise with the chequer board and a fourth challenge. This on its own is as big a challenge as all of the other three put together. Take a look at the chequer board again. Even though you know that A and B are the same you still can't see it and have to rely on what you know to be true, which also means without the analysis, and in a different context you might miss the same issue again. To experience that now go to Rubiks Cube illusion, item 4 on the left hand side. If you left click and drag the little yellow square it will give you the proof your eyes deny you.

So now, armed with your knowledge, you can show the chequer board to your colleagues and tell them the squares are the same and they will demand proof, just like you did. Now carry this example over to the results of your analysis of the business and an outcome that is contrary to what everyone believes to be true. The first thing that will happen is that you will need to provide evidence for your conclusions and this will happen with every stakeholder. What this demands is that the system you put into place enables and provides transparent visibility and access to all stakeholders so that the evidence is self-evident. We can provide you with this.

So we also can conclude that like we needed to give you proof that A and B were the same, you will probably need proof of what we are saying we can do. After all, it challenges everything you know to be true as to how things have to be. For that reason we offer to show you what we can do on your data. Just contact us quoting 'prove it' and we will set it up.

Oh, we almost forgot. The piece of paper. We suggest you put it in your pocket along with an image of the chequer board and keep it with you at all times. Every time you are absolutely certain about something, pull it out and take a look at it. Remember how once, you were absolutely certain the two squares A and B were different colours and we bet you will make better decisions.

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Public Sector

There has probably never been a time when there has been more pressure on the public service sector to downsize, reduce costs, improve efficiency and improve outcomes and quality of service. At first glance these seem to be incompatible and perhaps conflicting objectives, but we know that they aren't.


If you take a look at the money that has been spent over the last 10 years that has failed to achieve its objective, one of the stand out issues is Connecting for health where billions have been wasted failing to achieve the agreed targets. This ignores the billions that could be saved if the system proposed was functional, not just through improved efficiencies of service delviery but also from savings in expenditure that would arise from greater understanding of the behaviour and requirements of patient populations.

Without greater levels of understanding issues remain apparently homogeneous and remain impenetrable. However by gathering and using advanced analytics issues become obviously heterogeneous and leverage is achieved over overall issue by affecting the parts. The Catch-22 is that expenditure is required to make the savings, yet money needs to be saved. The second Catch-22 is that we need systems to undertake analysis, but systems have almost always failed to deliver and therefore seem to be a triumph of hope over experience.

The good news is that as the game has changed, so have the ways of playing it. Despite the majority of major companies still selling traditional solutions, requiring large expenditure to be made up-front and way before any result or return is made, we are able to offer new style solutions. This is an iterative process that delivers a first generation of answers to questions almost immediately and with very little investment. Some answers are able to be used to take better informed decisions generates a rapid return on investment that is often many times the expenditure made. Other answers raise additional second generation questions that give rise to a second generation of answers. This process continues, with each generation delivering additional value and further questions.

Here are a few example case studies of this process at work.

Blue Light services

Mobile computers were installed in vehicles to allow incident reports and other administrative tasks to be completed on the road. This has numerous benefits, including immediate filing of reports, which reduces errors and omissions, as well as allowing the maintenance of a presence in the field. These mobile units are costly to purchase and install, so it was important to ensure that they were used effectively.

To that end, a performance metric was introduced to measure the number of reports filed using these mobile devices versus those filed on desktop computers. We captured this top-line performance with the first generation question. As results began to come in there was a large difference in the level of use between groups which raised second generation questions as to why this disparity existed.

Each device could identify both the user which when linked with HR records enabled their job descriptions to be generated. It also generated locations for each user which enabled us to plot them on a Google map.

The Performance Team were surprised to note that over 80% of the reports filed using the mobile devices were done so from the base or the adjoining car park. In addition, the majority of reports were filed by users who were identified as administrative staff, i.e. staff who were permanently based at the base and in reality, only 4% of the reports filed were done so on the road. It became apparent that Mobile terminals had been issued to administrative staff to use, at a far greater cost than normal desktop terminals, to enable targets to be achieved.

Without this context, the project would have appeared successful whereas in reality equipment was under-utilised and not used as intended thus failing to achieve their ultimate aims whilst increasing costs.

NHS Hospital

A large NHS Trust was failing to meet a national target for Zero Length of Stay. Zero Length of Stay is when people are admitted into a hospital bed, usually via an Accident & Emergency department, only to be released within 24 hours without any treatment, because there was nothing wrong with them. To reduce the numbers of people falling into this category required looking for the reasons why and how people are admitted.

We looked at admissions for patterns in the symptoms. We looked for commonalities: Were the same staff responsible for these types of admissions? Were the circumstances in which the patients were admitted the same? . We found little to suggest any pattern in the staff or symptoms, and on the surface, the admissions appeared quite random and offered us no leverage over the issue.

Digging further amongst the things we looked at was the time of arrival and time of admission, which is when we spotted a trend. The majority of patients who were admitted into a hospital bed, and released without treatment within 24 hours, were admitted after waiting in A&E for between 3½ and 4 hours.

At the time there was another national target which required patients who attended Accident & Emergency departments to have been seen and discharged within 4 hours and it became apparent that in an attempt to hit this target a 'work around' was being employed that adversely affected the zero length of stay target. This was important as the focus for improvement was able to be directed to the correct cause, the performance in A&E and a source of poor patient experience and high cost addressed.

This demonstrates how the ability to ask successive generations of questions, model and visualise them, is essential to being able to interrogate data it until an answer is found. Traditional solutions using data warehouse formats are unable to do this since with each answer the focus shifts and new questions arise that could not have been thought of when the Data Warehouse was designed.

In many instances, because targets change after the Data Warehouse based system was designed and built, the questions weren't even known or relevant.

Primary Care Trust

A large Primary Care Trust was reviewing activity of its District Nurses and found that a significant amount of home visits were being conducted by senior nurses and in an attempt to reduce costs it was proposed that these visits should be conducted by junior nurses whose salaries are lower. As part of this process it was necessary to plan and forecast the likely workload for each team to enable the right number of junior nurses to be recruited.

To answer these questions it was first necessary to build up a multi-dimensional picture of the activity taking place, how long it took and who was doing it. To do this we linked data available in different information systems including: Activity, HR and Payroll. One of the outputs that we generated was a calculation of an average cost per visit by job description.

The surprising result was that, according to the data, the average cost of a junior nurse completing a visit was twice that of a senior nurse! This obviously ran contrary to both intuition, was in direct contradiction of the received wisdom and the proposed approach of reducing costs by increasing junior nurse numbers. The Trust asked us to investigate further.

We linked into more data, connecting Training and Timesheet data, to fully apportion 100% of each nurse's time, to include behaviour, training, annual leave and sickness. What we uncovered was that due to their lower level of skill and capability junior nurses were often visiting patients in pairs to cases where a senior nurse would have attended alone, and they were taking an average of 30% longer to complete the activity than their more senior colleagues. In addition, junior nurses spent significantly more time training, and therefore spent less of their available work time delivering results.

The outcome, with all these factors taken into account, was that the recruitment of additional junior nurses was put on hold and the focus switched to forecast the recruitment requirements for senior nurses.

By being able to join up data held on incompatible systems, a multi-dimensional picture can be generated that allows simple powerful metrics that can be used to check perceptions and beliefs and often deliver new insights that allow better decisions to be taken.

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Private sector

We are currently facing rates and a magnitude of change on a global scale never before experienced .


For almost all businesses it is hard to embrace and absorb the shere volume of change, the outcomes and implications of which are complex to predict and the immediate impact not apparent. For large businesses there are additional levels of complexity as due to size. Issues can often remain hidden in their early stages of emergence and grow to larger levels of significance before they are addressed. The result is they require greater and more rapid levels of intervention and internal change than might otherwise have been needed.

In addition, the act of internal change is a costly and hard to achieve process and so choosing the timing for change is critical - too early and the direction might be wrong, too late and the business may fall behind the competition.

Given these factors, making an
investment in an effective business information system is a strategic necessity and has been for a decade or more and for this period there has been a variety of competing systems, all of which have operated in the same way, with the differences being nuanced preference between suppliers. By the same way we mean they all require the questions you want answered to be defined before the systems are built, and the systems can then only answer the questions they were designed to answer. The cost of these systems was, and still is, unpredictable, they frequently cost more than was anticipated, throw the organisation into turmoil to create them, are late to go live, cause disruption when they do, are costly to maintain and never quite deliver what was actually needed.

The only good thing was that there was no other choice and every company was in the same position. That is until now. The speed of change has also affected how information systems can work as in the last few years the approach we described above has become unnecessary.

In the same way that it is no longer necessary to build a room to house your computer,
it is no longer necessary to build a huge, expensive and inflexible system to collect and analyse your data and provide you with analysis and reporting. Now you can have the ability to interrogate and analyse data, produce reports or directly interact with the data, with no disruption, far lower cost and without the need for a whole team of people to manage and gatekeep the system. In fact we can show you in a matter of days the reports that you would like, probabaly the ones you have been told you cannot have from your current system, using your data.

Because of the speed of change and the inability of businesses to keep up with it, you or your IT people probably haven't heard much about the revolution in advanced data analytics and in-memory processing. Because it has come from outside the huge suppliers of the existing systems and because they don't have anything that will touch the capability of products from other suppliers, they won't have mentioned it. After all, the pace of change has over taken them, for the time being at least.

This is a revolution that is just begining and the only question is whether you will be an early adopter or a late follower? Will you be using the competitive advantage it provides? Will you be the ones to be able to make better informed decisions, analyse issues faster and more effectively and be able to distribute clearer and intuitive to understand reports to a wider audience? In short
are you going to get ahead of the curve, and ahead of your competitors?

Below we have given you some real case study examples below of advanced data analytics in use.

Logistics system fails to deliver

We work with a UK based business who manufacture and ship goods around the world.

As with many businesses they have various different systems gathering and producing information on the essential elements of their business especially sales, manufacturing, logistics and finance. The products they supply are part of the manufacturing chain, and so the logistics element of the business is essential to satisfying the customer's just-in-time production requirements and to keep their own delivery and warehousing costs to a minimum.

The basis of the order system is similar to many we have seen. When an order is placed customers are given a date by when the order will be delivered. For efficiency, it was practice to ship parts of an order early, if possible, by placing it on a vehicle already travelling to a nearby destination, that had space and to load trailers the night before, ready for departure at the earliest moment the next day.

In a desire to make improvements, the client had invested in a system that placed barcodes on each item. This enabled monitoring of the chain from manufacture to delivery, measurement of orders delivered on time and the ability for customers to track their orders through a web site. Over the next few months, the system showed that the number of orders not delivered on time had risen significantly. It was immediately evident to the management that numbers were not a true reflection of reality and so there must be something wrong with the new system.

What came to light was that the system was unable to cope with the practices of loading the night before and part shipping and, unless the order was shipped in full on the target dispatch date, orders were recorded as late or failed. Management then took 2 actions. The first was to approach the system providers to change the way the system was working. Their response was that they had provided what was asked for. Ripping out the system wasn't an option as, aside from cost, the order tracking system provided to the customers would then have to be withdrawn. The outcome was that a redesign of the system was started to attempt to fix the issue, the weekly cost of which was large and the timescale expansive.

Meanwhile management informed staff of the issues and explained how the system was working and that the numbers couldn't be trusted. However the reaction of staff was to change their behaviour to the new context the system had created.

Firstly, when orders were loaded the night before, customers were receiving updates which suggested that their orders had been shipped. To stop, this preloading was stopped and vehicles were loaded the same morning. The effect was that vehicles left depot much later and could therefore make fewer deliveries in a single day.

Secondly, shipping part orders was stopped and as a result, vehicles were leaving depots with unused capacity, increasing the number of journeys being driven, reducing vehicle utilisation and increasing the amount of space required and stock time in the warehouse, until the entire order was ready to be shipped in full. As a consequence logistics and warehousing costs rose significantly.

When we found out what was happening we were able to offer a new option that saved the customer money and created a system that worked in a short timescale. As a consequence management stopped the original providers from trying to fix the new system and let us loose.

Our solution was to use our know how and software to draw data from all the systems to create a picture of any order compiled from input from each system. This enabled us to place an umbrella system over all the data, apply new rules to the data and to use this as the source of the feed of information for the customer tracking system and management reports. Within a few weeks of starting, accurate information on orders was achieved, the consequence being that cost minimising behaviours were returned to and costs reduced.

Most importantly, customers now have a true and accurate picture of their order status.

Seamless Mergers by Data Acquisition and Integration

A large UK insurance company has a growth strategy of acquiring other companies.

Each acquisition presented 3 main challenges all based around accessing, integrating, processing and reporting large amounts of data, in various formats, from a wide range of systems, containing vital information about the customers and their policies.

  • To undertake due dilligence in advance of purchase, the acquisition target needs to be fully understood in terms of the size, nature and value of the business.
  • The new business needed to be integrated after purchase into the existing at the lowest possible cost to enable reporting and managment.
  • To be able to report to the FSA in an accurate and timely way.

Speed of addressing these issues was essential, to service customer requirements, ensure that policies were renewed on time, avoid loss of business and for regulatory reporting which carries significant penalties for failure to report accurately and on time.

To achieve due dilligence we provided a service that gathered the existing information in the target business and turned it into an interrogatable report covering the crucial areas of interest. This often generated greater understanding of the target company for the acquirer than the target had of itself. It is now possible to see the business being offered, in detail, allowing a much more accurate purchase price to be set. As a result, the company is able to carry out significantly more in-depth due diligence and compliance checks, more rapidly and at a lower cost.

We also produced a tool that gathered information from both the target and the acquirer and generated a model of what the business as a whole would look like when integrated. Once the new business is purchased, this same tool allows management information to be generated, enabling existing and new clients to be managed seamlessly and effectively, including renewal of policies, handling of claims and reconciling direct debit payments. This is done rapidly so that, on average, it takes just one day to ingest the data from a new company acquisition.

Now, no business is lost due to the integration process and regulatory reports are produced automatically each month, a task which previously took a team of 3 people over a week, every month, to compile!

KPI dashboards

The development and production of dashboards for monitoring and managing businesses, especially focused on continuous monitoring of KPI's is a common activity of ours, and below we have provided a couple of examples. Producing dashboards is not a unique capability however where we begin to stand out is in our ability to connect and present information from diverse systems, rapid turn-around and relatively low cost.

What is even more exciting is our focus on ensuring that the information is presented in a manner that enables the recipient to rapidly see what requires their attention and action. This is done by designing intuitive interfaces, automated distribution of just enough, just-in-time reporting, alarm based distribution and other innovations focused around the needs of you the client.



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Third Sector
When managing and developing third sector operations it is essential to minimise cost and maximise efficiency, enabling the most possible to be spent on the intended beneficiary or cause. Managing large amounts of information and distributing funds and resources to where they are most required can take a large number of people and resources and therefore is potentially very costly, yet it is impossible to function without these elements.Our unique approach allows efficient cost effective development of systems that require the minimum of operational man-power once implimented.

We have worked on 2 projects and see work in this arena as part of our CSR activity, one for a housing management charity and we have supported witness confident in their development of their crime reporting service and map.

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Services

Our expert team can help you to get the best value from any system, including:


  • Microsoft Reporting Services
  • Oracle
  • QlikView
  • Hyperion
  • Omni-Vision
  • Cognos
  • Micro-Strategy
  • SAP / Business Objects

We will apply our specialist knowledge of data analytics to drive value from your existing systems, creating unique solutions which give you the edge over your competition.

Whatever system you have and however you electronically collect data, we can develop a solution for you. So whether you need a one-off report or a systemised solution, we can build on what you already have to deliver exactly what you require, rapidly and at highly competitive rates.

Because our approach is so different to what is expected and because it challenges embedded ways of developing information solutions, many of our clients have come to us only after other approaches and systems have failed to work. Whether you have reached that point or are looking to reduce costs, improve business information supply, speed up provision of information or all three, we look forward to helping you.

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Solutions

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