There is a lot of hype around Analytics and Big Data in the media and technology journals. It is rivalled only by perhaps 3D printing that is touted as the resurgence of American manufacturing.
However, the hype cycle does not match the ground reality. I recently spoke to a customer who is also a good friend on the whole idea of analytics and BI and its place in the real world. He thought for a while, and said "The problem is.... What do you do with it?". In one sentence, he highlighted the main problem around analytics and BI. He alluded to the fact that most organizations are not equipped to take business decisions based on very insightful BI dashboards.
Its great, if you are fresh out of business school and have all your statistical models all on the back of your hand, and can derive actionable insights into what you need to do. Ofcourse, then have the will and the conviction to act on it. However, for most organizations, it needs continuous professional development, reinforcement and knowledge transfer on how to act on the data that the Business Intelligence dashboard or Analytics platform is giving.
The second more worrisome aspect to this problem is, do people truly understand the systems they are dealing with? Do they have Systems - Thinking? As almost all of us were taught as kids...."Every action has an equal and opposite reaction". Systems Thinking or Business Dynamics teaches how most actions lead to two disproportionate feedback loops. One feedback loop accelerates the rate of change in the direction of our actions, and other feedback loop counters the action and tries to put the system back into an equilibrium. Also, there is a lag before these feedback loops kick in. In business dynamics terminology, these feedback loops are called balancing (reaction to our action) or re-inforcing (accelerator to our actions).
Study after study has shown that when people do not truly understand the systems they are dealing with, they cause massive failures. Most accidents such as Chernobyl can be attributed to these.
I am sure that unless people are given richer mental models and system views of the systems they are dealing with - it could lead to worse than inaction....it could lead to disastrous consequences triggered by a desire to act. After all, the road to hell is filled with good intentions.
However, the hype cycle does not match the ground reality. I recently spoke to a customer who is also a good friend on the whole idea of analytics and BI and its place in the real world. He thought for a while, and said "The problem is.... What do you do with it?". In one sentence, he highlighted the main problem around analytics and BI. He alluded to the fact that most organizations are not equipped to take business decisions based on very insightful BI dashboards.
Its great, if you are fresh out of business school and have all your statistical models all on the back of your hand, and can derive actionable insights into what you need to do. Ofcourse, then have the will and the conviction to act on it. However, for most organizations, it needs continuous professional development, reinforcement and knowledge transfer on how to act on the data that the Business Intelligence dashboard or Analytics platform is giving.
The second more worrisome aspect to this problem is, do people truly understand the systems they are dealing with? Do they have Systems - Thinking? As almost all of us were taught as kids...."Every action has an equal and opposite reaction". Systems Thinking or Business Dynamics teaches how most actions lead to two disproportionate feedback loops. One feedback loop accelerates the rate of change in the direction of our actions, and other feedback loop counters the action and tries to put the system back into an equilibrium. Also, there is a lag before these feedback loops kick in. In business dynamics terminology, these feedback loops are called balancing (reaction to our action) or re-inforcing (accelerator to our actions).
Study after study has shown that when people do not truly understand the systems they are dealing with, they cause massive failures. Most accidents such as Chernobyl can be attributed to these.
I am sure that unless people are given richer mental models and system views of the systems they are dealing with - it could lead to worse than inaction....it could lead to disastrous consequences triggered by a desire to act. After all, the road to hell is filled with good intentions.
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