How to Make Decision Making More Adaptable with Layers

by John Julius Sviokla on December 3, 2010

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Co-authored with John Sviokla

Never before has such a mass of data existed. Needless to say, all this information complicates the decision-making process. Businesses need new strategies to answer the biggest question:

How do we effectively sift through the mountain of information to gain valuable insights.

Layers is a term we use for visual information systems that combine publicly available and company-owned tools to present relevant and contextual information-in a format that starts with the decision and works in reverse.

By Layers, we’re referring to distinctive “chunks” of data that are presented within the construct of a decision, rather than in the context of a tool. Layers are also about leveraging data, tools, and innovation on the Web instead of starting from scratch.

Layers of information exist at all levels-individual, company, market, industry, country, and international.

They are what help us visualize the different levels of data and how we can put them together in ways that support a particular insight. More powerful than a tool, layers comprise an “organizational solution”-a visual way to sort and sift a mass of information and arrive at an insight efficiently, effectively, and by putting all employees on the same page to create buy-in.

So why aren’t organizations making more progress in adopting layering options? Simply put, you can either embrace the flood of data or ignore it. Here are a few observations that may make it easier to embrace:

  1. When something new pops up in the Web, other sites swarm to analyze it. How can your firm harness this speed to market?  The emergence of Twitter and the hundreds of tools to analyze Twitter data is just one example.
  2. Recently, Nielsen conducted a study that looked at successful new product launches across 30 large consumer packaged goods companies and found a correlation between successful, innovative product introductions and how differing levels of executive involvement affect launches. When senior leadership is involved at your firm, does it help or hinder the adoption of new ideas?
  3. When we visualize our organization, we often think of a map. What if the data that aided our decision-making was available as layers of information on a map, similar to how Google Maps layer satellite images with public transit, bike routes, and points of interest?

So, how does “layering” help us?

  1. By starting with tools and data that already exist in the market – data collection, organization and decision making is faster
  2. Focusing on a layer at a time creates is iterative and less complex to implement
  3. A visual representation of the decision-making-context makes solutions more recognizable and required less “context switching” for those using it

Faster + Iterative + Recognizable = Faster Decision Making

We spend too much time analyzing the mountains of data we have collected, assuming that it contains answers to our business questions. Why not start with the decisions we are trying to make and working our way backward with the help of the data? Does your business have a decision-making model?

If we start with decisions and then add the context for those decisions, we can support the business in a much more direct way. What area of your organization could benefit from a “layered” decision-making process?

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Taming the Torrent of Data… For competitive advantage…

by John Julius Sviokla on October 26, 2010

I recently had the good fortune of leading our Diamond Exchange (video summary), where we discussed how companies could create competitive advantage through better use of data.  For this event we created a short (4 min) video to help business executives get a feel for just how quickly the torrent of information is increasing.  If you are having a hard time getting someone in your life to understand how quickly things are changing — feel free to show them this.

Serious organizations care about this flood of information.  In fact, if you look at the core of a host of great companies: Goldman Sachs, Wal-Mart, UPS, Amazon, you find a digital heart and brain.  Each of these companies do a superior job of gathering, organizing, analyzing and acting on the data that streams through their organizations and in their markets.  (See also my 1995 Harvard Business Review article on Exploiting the Virtual Value Chain.)  As Andrew Ross Sorkin’s book Too Big to Fail pointed out, Goldman has an integrated securities database called SecDB, which gives them a complete picture of their positions around the globe, which in turn, allows them to exercise superior risk management and pricing.  Wal-Mart’s automation and information advantage have been reported so extensively as to make it almost cliche.  Under the covers of most great companies is a high information IQ.

Why?  Why is information processing capability so essential to the robust functioning of large complex enterprises?  There are at least five reasons:

  • First, information is an organizational problem.  If a firm allows data to slosh around with the carelessness that old factories used to handle work in process inventory, the inefficiencies multiply.  Heck, every personal productivity guru starts with advice that includes the importance of handling information once, and only once.
  • Second, information are the reflexes of the organization.  The military talk about “operating within the OODA Loop of the enemy”.  Observe, orient, decide and act is the decision cycle of any combatant, and if you can do it better and faster than the enemy — you can usually win.  The same holds for non-lethal competitions.
  • Third, superior information usually enables better negotiating leverage.  If you know the true demand and supply in a marketplace, you can usually extract a significant price advantage over your competition.  The entire discipline of programmed trading, which accounts for a significant part of profits of Wall Street firms, is built on the premise of profit by superior information.
  • Fourth, dominating data allows an organization to manage its risk better.  If UPS knows that there are forest fires in Russia, the company can change its routes, assets and operations to lower risk and improve service.
  • Fifth, it creates a culture of managerial excellence when executives operate from the numbers, not just their gut.  I know Malcolm Gladwell’s book Blink has popularized the notion of going with your gut, but, I’m still too much of a hard headed capitalist to not look at the facts first if I can.

So, you have to ask yourself, are you taming the torrent or getting swamped by it?  Now’s the time to ask, because things are only going to get worse, or better, depending on if you’re surfing or drowning!

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Are You a Vendor or a Business Partner?

October 14, 2010
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One of my colleagues just asked me: What’s the difference between a vendor relationship and a true business partnership?  This is a vital question when any individual or firm is innovating, because when anyone is doing something truly new, it is impossible to pre-specify everything needed from a vendor — because you are busy creating [...]

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There is much talk about innovation — and there are many approaches to creating new things, from the famous “open innovation” ideas of Henry Chesbrough to the ever popular notions of Clay Christensen about “disruptive innovation“.  Whether it was the popisicle, invented by accident by Frank Epperson when he left his stirring stick in a [...]

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Last week, on Thursday night September 16, 2010, I had the good fortune of speaking to the Society for Information Management’s (SIM’s) Boston chapter about the implications of social media.  You can get the slides here.
The core of the talk was the idea that we are entering a third wave of capitalism, and further that [...]

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The other day I received a downright inspirational email from my friends at IndieGoGo, a site dedicated to the collaborative funding of ideas.  (Here’s a short video of my friend Slava Rubin, co-founder of the company.)  The missive pointed to a video featuring 9 year old Jackie Evancho a rising America’s Got Talent star who [...]

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The Web is Dead? or Just in the Modularity Cycle?

September 2, 2010

Wired magazine recently announced on its cover that the Web is Dead.  I confess I really like the magazine  despite some of the hyperbolic rants that Chris Anderson, Wired’s editor creates like his book “Free” — which is completely indefensible from an intellectual or factual standpoint.  In this case, I think the magazine is “right” [...]

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Radical Continuity: What any retailer can learn from Nordstrom

September 1, 2010

I’m coming to believe every good is a convenience good.  A recent New York Times article reported that Nordstrom has integrated their in-store inventory with their online supply, meaning that anyone can get access to the entire inventory from any “location” — a physical store or online.  They also report that Nordstrom’s management believes that [...]

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Google v. Facebook: The battle for the world’s attention

August 19, 2010

If you are the type of person who likes to think about where things might be going I’d suggest you start watching the evolving competitive battle between Facebook and Google.  Both firms want to know who you are and whom you connect to, e.g. your “social graph”.   To date, Google knows a ton about what [...]

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Disruptive Innovation Mashup? The Copenhagen Wheel

August 15, 2010

Big Think reported yesterday that the Copenhagen Wheel, which was designed at MIT’s media lab is going to win the $15,000 Dyson Prize for design. The video below gives an idea of the wheel’s most salient attributes.  This Copenhagen wheel is derived from the Green Wheel, which was written about a lot in 2009.

I hope [...]

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