Author Archives: Espen

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About Espen

For details, see www.espen.com.

A lament for nickfromfulham

(or, why BBC should put their material on Youtube).

The future of TV is on the net. Too bad the leading TV producers don’t understand it.

imageThis year I am living in the US, without a TV. So far I have not missed it – we have Netflix for movies and Youtube for music and clips. Having to chose your programming yourself means zero hours channelsurfing on the sofa, and a delightful lack of background noise from breakfast TV shows and similar junk.

But – what to watch when you want a little fun? For my youngest daughter (she is here in Boston to take a year of US high school) and I Friday nights have been spent in front of our nice 23 inch monitor, wathing Never Mind the Buzzcocks, a great, wild, satirical quiz show about pop music. And when I want to relax by myself, there is the unsurpassable QI, a [deeply intelligent/self-indulgingly moronic] quiz show with a pop science bent. Or I can watch some of BBCs great series, such as Stephen Fry’s programs about the English language.

Through Youtube, I have come to know and appreciate comedians and actors such as Bill Bailey, Phill Jupitus, Jo Brand, Noel Fielding, Alan Davies, Jimmy Carr, Sean Lock, Rich Hall, John Sessions, Rob Brydon, David Mitchell and Dara Ó Briain, just to name a few. I have learned a lot and laughed even more. The episode where Emma Thompson describes how she used her body to terrify Stephen Fry to complete breakdown or where Jack Dee serves the mother of all putdowns to Sandy Toksvig and Ronni Ancona are complete jewels.

Which brings me to a sad point: The channel NickFromFulham, who (assuming there is a Nick and he is from Fulham) has put up all these videos, was recently shut down from Youtube. Where should we go now for our witty and intelligent entertainment? You see, almost none of the stuff that BBC produces is viewable outside the UK, except in short snippets, on DVDs, or on the anemic BBC America channel, for which we would have to get a TV, and then put up with programs that are both delayed and also watered down in terms of swearwords, sexual and scatological references and much of the Britishness that makes Britain both British and bearable.

The funny thing is, of course, that if it wasn’t for Youtube’s technical capability and NickfromFulham’s diligent uploading and characterization, I wouldn’t know much about QI and nothing about Buzzcocks. Which makes me wonder a) what else is out there, not just in BBCland but in many TV stations around the world, and b) why the heck doesn’t BBC (and NRK, its Norwegian state-funded equivalent and all others) put their stuff out in digital format?

To the first point: I gave a talk to NRK in June, about disruption in the media industries and so on. As part of the discussion of how to strategize for the future, I urged them to fill up available spots in their many channels with stuff like QI – quality shows that have a very local appeal, but in an increasingly global world will have global appeal without sacrificing quality. When you treat your viewers as intelligent, they will act intelligently. To quote David Foster Wallace, in his his brilliant essay E Unibus Pluram:

TV is not vulgar and prurient and dumb because the people who compose the audience are vulgar and dumb. Television is the way it is simply because people tend to be extremely similar in their vulgar and prurient and dumb interests and wildly different in their refined and aesthetic and noble interests.

The point being – with infinite channel capacity, you can attract a large audience, in many countries, by not pandering to the lowest common denominator. (The fact that QI is one of BBC’s most watched programs shows that the common denominator may, in fact, not be so low after all.)

The future of TV is on the net – but in order to attract people to the net, you have to release your best stuff, and gradually become the source and context of quality entertainment rather than a prison of old business models. And incidentally, slamming the door in the face of your biggest fans is not the way to go about it.

As for us? Well, my daughter is 17 and an accomplished net surfer. She can easily find and download the next episode of Buzzcocks from one of many pirate sites. Not that I like it, but what can I do? (Well, IP spoofing and going to BBC’s web site in the UK itself would be another option.) Or I can watch something else, which, of course, lowers the commercial value of all those actors and comedians participating in the things I would like to see.

Incidentally, here is one of the most watched Norwegian skits on Youtube. Let’s see if you understand it, even if it is in Norwegian (with subtitles):

The morning browse

  • Time to switch back to Firefox? bit.ly/vICWB6 I have gotten used to a few of the Chrome apps, myself
  • Wolfram Alpha and Siri secures Christmas entertainment bit.ly/uXCpCy
  • Martin Freeman seems a good choice as Bilbo youtu.be/G0k3kHtyoqc
  • Scott Adams’ take on “Race against the machine”: bit.ly/uBCxxv
  • Bionic eyes where you can zoom in. bit.ly/ufN7Tq Singularity, here we come…
  • The Name of the Rose “was the first and last of [Umberto Eco’s] good books” bit.ly/tPD4UE Agreed.

Waiting for Christmas (with help from Tim Minchin)

Tim Minchin, UK-based Australian comedian, composer and contrarian, performs what is my favorite Christmas tune, his “White wine in the sun”, which manages to be sentimental, smart, atheistic (or at least skeptical) and deeply felt, which I think everyone should be. Especially at Christmas, which is about so much more than religion.

And I am not just saying that because I am 3501 miles from home, with the family arriving for a prolonged Christmas visit, or because, just like me, Tim met his wife when he was seventeen and they stay together, but because this song describes the best parts of Christmas – indeed, the whole purpose of Christmas – quite precisely.

Looking forward to Christmas far to often is attributed to consumerism (at least for small children) or has to be legitimized through some religious reference, such as the inevitable pre-Christmas op-eds about how we are losing sight of what the holidays are all about, etc. etc.

So, this year as any other, I am looking forward to Christmas with our little rituals.

Just as long as it isn’t white. All our snow gear is in Norway. Snow would really let us have an American experience…

Douglas Adams on technology novelty

Found this quote in Jeff Jarvis’ Public Parts, from Douglas Adams’ How to Stop Worrying and Learn to Love the Internet, published in Sunday Times in 1999:

I suppose earlier generations had to sit through all this huffing and puffing with the invention of television, the phone, cinema, radio, the car, the bicycle, printing, the wheel and so on, but you would think we would learn the way these things work, which is this:

1) everything that’s already in the world when you’re born is just normal;

2) anything that gets invented between then and before you turn thirty is incredibly exciting and creative and with any luck you can make a career out of it;

3) anything that gets invented after you’re thirty is against the natural order of things and the beginning of the end of civilisation as we know it until it’s been around for about ten years when it gradually turns out to be alright really.

This is a surprisingly good explanation of a lot of things, and certainly something that should be taken into account by anyone trying to design policy to deal with technology.

What a pity that Douglas Adams died so young. We could need a lot more of his razorblade analysis and learned humor.

Jeff Jarvis on his public parts

(taking notes from a presentation at Harvard Law School’s Berkman Center, December 6, 2011)

(David Weinberger has a much better writeup.)

Jeff Jarvis rake thin, grey-haired, dressed in black and bearded, and has had cancer, but any similarity with Steve Jobs stops there. His latest book, Public Parts, advocates more openness in a time concerned with privacy yet somehow unable to press that “like” button on Facebook.

His key point is that the tools of publicness need to be protected – and though privacy and publicness is not in opposition – and his fear that privacy concerns are misapplied and sometimes dangerous.

When Kodak was invented, there were articles written about “fiendish Kodakers” lying in wait, and the cameras were banned in some public parks. Anxiety about privacy goes back to the Gutenberg press, microphones, video cameras. Society is looking for norms, but legislates to keep the past, in terms of the past.

The tools of making publics: Habermas said public discourse started in coffee houses in the 18th century as a counterweight to government power. It was ruined by mass media. Now we have the tools of publicness, and we get things like Occupy Wall Street. Jeff started (after a few glasses of Pinot Noir) the #fuckyouwashington tag, which spawned a platform with more than 110,000 tweets.

The Gutenberg parentheses: Before Gutenberg, knowledge was non-linear, with Gutenberg it became linear, after Gutenberg it is non-linear and the knowledge we revere is the net. Danish professors arguing that the transition into Gutenberg was hard, and the transition out of it will be equally hard. Web content still shaped as analogues of the past.

Had to understand what privacy is – first take was that it had something to do with control. Came to think that privacy is an ethic. This means that publicness is also an ethic, an ethic of sharing information. Sharing his prostate cancer, including impotence, on the web. Hard to do, but got tremendous value out of it.  Various people contributed to the blog, telling things that the doctors won’t say, etc.

We need to learn from young people how to control sharing. Danah Boyd: COPA requires companies not to keep information about children younger than 13. But more than 50% of 12-year olds had Facebook – “on the internet everyone’s 14.” Sullivan principles (developed for apartheid) may help: Rules for companies to operate in South Africa.

Jarvis propose some principles:

  1. We have the right to connect.
  2. We have the right to speak.
  3. We have the right to assemble and to act.
  4. Privacy is an ethic of knowing
  5. Publicness is an ethic of sharing
  6. Our institutions’ information should be public by default, secret by necessity
  7. What is public is a public good
  8. All bits are created equal
  9. Internet must stay open and distributed

Fear that governments and companies will take this away.

Various questions in the question round – but the discussion didn’t really take off.

Jeff comes off somewhat like his books: Well articulated and with many interesting and well described examples, but I keep looking for some more analysis and less description. More depth, simply, not just a plea that openness is good and we need to develop norms on how to handle it. But the “history of the private and the public” part of his book is very good. And it does make for an interesting read.

Competing online syllabus

Name of course: Competing online
Time: February 7-8, 2011
Place: Lorange Institute of Business, Zürich, Switzerland
Instructor: Espen Andersen, Assoc. Prof. Norwegian Business School

The course, a two-day seminar aimed at senior business decision-makers, will give insight into the strategic and tactical choices facing companies going into electronic commerce, whether from a pure online strategy or using an online presence as a support for their regular service and sales channels. The syllabus is not meant to be conclusive – the right to make changes is most explicitly reserved.

If you are interested, you can sign up here.

Syllabus:

Tuesday, February 7

Session 1, 0830-1000: Introduction, the promise and peril of online competition
This session will introduce the course and use a short case as a starting point for discussing the impact of online competition on traditional companies. Please read and be prepared to discuss the following:

Study questions for the case:

  • Is eHerramientas a threat to Catatech?
  • What should Marisa do to design a strategy to counter eHerramientas’ competition?
  • What should Marisa to to communicate her strategy within Catatech?

Session 2, 1030-1200: The mechanisms of electronic commerce: Searchability and findability
Google provides the context in which you will need to be found on the web. Amazon shows a company that helps you find the right product when the customer lands on the site. In this session we will study the offerings by both companies, and see how they have evolved over time.

  • Article: Rangaswamy, A., C. L. Giles, et al. (2009). “A Strategic Perspective on Search Engines: Thought Candies for Practitioners and Researchers.” Journal of Interactive Marketing23: 49-60.
  • Article: Andersen, E. (2006). “The Waning Importance of Categorization.” ACM Ubiquity7(19).
  • Google technology overview, “What is AdWords” video,
  • Article: (for the more advanced student): Brin, S. and L. Page (1998). The Anatomy of a Large-Scale Hypertextual Web Search Engine. Seventh International WWW Conference, Brisbane, Australia. (this is the paper that started Google).
  • Amazon: “Inside Amazon” video, as well as this article: Linden, G., B. Smith, et al. (2003). “Amazon.com recommendations: item-to-item collaborative filtering.” Internet Computing, IEEE 7(1): 76-80.

Session 3 and 4, 1330-1700, with break: Evolving the pure online company
In this session we will study the evolution of Masterstudies.com, a company that helps graduate schools selectively recruit international students for their MBA and M.Sc. programs. We will be joined in this discussion by Mr. Linus Murphy, CEO of Masterstudies.

Session 5, 1700-1730: An introduction to disruptive innovations
In preparation for the group work for the night, there will be a short introduction to and discussion of the theory of disruptive innovations.

  • Articles: Christensen, C. M., M. Raynor, et al. (2001). “Skate to Where the Money Will Be.” Harvard Business Review (November): 73-81.

Session 6, after 1730: Group work

  • Case: Schibsted (HBS case 707474, Bharat Anand)
  • Article: “More media, less news”, The Economist, August 24, 2006
  • Assignment: On a group basis, prepare a short presentation for tomorrow’s morning session. More precise instructions will be distributed in class.

Wednesday, February 8:

Session 7, 0830-1000: Responding to online competition:

  • Case: Schibsted (HBS case 707474, Bharat Anand)
  • Group presentations, prepared the night before

Session 8, 1030-1200: Responding to the social web: Blogs, Facebook, Twitter

Social media represents many challenges to business organizations – but also opportunities for increasing brand awareness, learning from customers and .

  • Article: Mangold, W. G. and D. J. Faulds “Social media: The new hybrid element of the promotion mix.” Business Horizons 52(4): 357-365.
  • Case: A blogger in their midst (HBS case R0309X, Halley Suitt)
  • Case: Coca-Cola on Facebook (HBS case 511110, John Deighton, Leora Kornfeld)

Session 9, 1330-1500: Responding to the technical threat

Security and disaster management is often ignored by senior management – partly because the issues are, well, technical and difficult. The iPremier case, in cartoon form for your reading pleasure, allows for a discussion of how to think about and prioritize security in an online business environment.

Case study questions:

  • How well did the iPremier Company perform during the seventy-five minute attack? If you were Bob Turley, what might you have done differently during the attack?
  • The iPremier CEO, Jack Samuelson, had already expressed to Bob Turley his concern that the company might eventually suffer from a “deficit in operating procedures.” Were the company’s operating procedures deficient in responding to this attack? What additional procedures might have been in place to better handle the attack?
  • Now that the attack has ended, what can the iPremier company do to prepare for another such attack?
  • In the aftermath of the attack, what would you be worried about? What actions would you recommend?

Session 10, 1530-1700: Short written examination

  • TBA.

Session 11: 1700-1730: Concluding remarks

Swinging beauty

I just love this pendulum demonstration:

The web page explains the details: The longest pendulum does 51 oscillations per minute. Each shorter pendulum does one more, up to 65 oscillations for the 15th and shortest pendulum. And the pattern repeats every minute.

Fulfilling the status role of books

Espen Andersen (Photo: Nard Schreurs)In my office at BI Norwegian Business School I have many books, accumulated over the years. In my living room I have even more, having spent time building bookshelves and defending the wall space against family members who think it could be put to better use. And in my basement I have stacks of cartons with even more books, which I do not have the heart to throw out – hey, I might get around to reading the complete works of Hermann Hesse, in German, some day – but not the space to display.

The book collection is nice – I like books, I can remember almost viscerally where most of them are, and often all that is necessary to remember what is in them is just to take them out of the shelf. And they do tell everyone around me that I am a bona fide intellectual, should anyone wonder.

But I (almost) don’t read books on paper any more – I buy them and read them on my Kindle or PC or iPad. Electronic books are searchable, weightless, cheap, accessible and cost nothing to store. But nobody can see how many books I have on my PC or Kindle. Having many books signals status, to the point where there are companies that will fill you bookshelves for you, in any color and style you want, for a fee. The usefulness of books as status signals will diminish over time, however, just as what has happened with CD racks, which you don’t display anymore, unless you have thousands of vinyl records and cross the threshold from music lover to music fanatic. So, what to do?

The Norwegian publishing and bookselling industry, an astonishingly backward group of companies when it comes to anything digital, yesterday introduced a new concept for e-books that, even for them, is rather harebrained. They want to sell e-book tablets where you can buy books not as downloads (well, you can do that, too) but as files loaded on small plastic memory cards, to be inserted into the reader [article in Norwegian]. This preserves their business model (though they can probably stop using trucks and start using bicycles for distribution). According to their not very convincing market analysis, this is aimed at the segment of the book buying market who do not want to download books from the net (but, for some reason, seem to want to read books electronically.)

imageI initially thought I would make a joke about having to replace my bookshelves with neat little minishelves for the plastic cards, when it dawned on me that perhaps we have the solution here – i.e., a model where we could get the accessibility of digital books with the status display of the paper version. Why couldn’t the publishing industry sell you a digital book (for downloading, if you please) bundled with a cardboard book model, with binding and all, to put in your bookshelf? This would look great, allow you to effortlessly project your intellectualism and elevated taste, while avoiding the weight, dust, and (since these books would only need to be a in inch or two deep) space nuisances of traditional books. You could even avoid physical distribution by letting the customer self-print and cut and fold the “shelf-book” in the right format.

You could even electronically link the two, so that you cold pick your cardboard book from the shelf, wave it in the direction of the e-book tablet (using transponder, 2D barcoding or other identifying techniques) and the book would show up in your reader. If you really wanted to show off, you could add a little color coded bar indicated how far you were in each book, much like a download bar for your computer, to be displayed on each book. Moreover, such as book could be lent from one reader to another.

I recently bought Don DeLillo’s Underworld for my Kindle. Imagine if it came with with nice little book spine, leather as an expensive option, with a barcode and a “read” bar as illustrated here…status, spatial memory, interior decoration, and a way to gradually replace the paper library with an electronic one without disruption.

Remember, you saw it here first!

(In case you wondered: Yes, I am being facetious.)

Two books on search and social network analysis

Social Network Analysis for Startups: Finding connections on the social webSocial Network Analysis for Startups: Finding connections on the social web by Maksim Tsvetovat
My rating: 3 of 5 stars

Concise and well-written (like most O’Reilly stuff) book on basic social network analysis, complete with (Python, Unix-based) code and examples. You can ignore the code samples if you want to just read the book (I was able to replicate some of them using UCINet, a network analysis tool).

Liked it. Recommended.

Search Analytics for Your Site: Conversations with Your CustomersSearch Analytics for Your Site: Conversations with Your Customers by Louis Rosenfeld
My rating: 4 of 5 stars

Very straightforward and practically oriented – with lots of good examples. Search log analysis – seeing what customers are looking for and whether or not they find it – is as close to having a real, recorded and analyzable conversation with your customers as you can come, yet very few companies do it. Rosenfeld shows how to do it, and also how to find the low-hanging fruit and how to justify spending resources on it.

This is not rocket science – I was, quite frankly, astonished at how few companies do this. With more and more traffic coming from search engines, more and more users using search rather than hierarchical navigation, and the invisibility of dissatisfied customers (and the lost opportunities they represent) this should be high on any CIOs agenda.

Highly recommended.

View all my reviews

Clearly and Ever(note) so elegantly

imageI just installed Evernote’s Clearly browser extension for Chrome. Cleans up webpages (and turns multi-page articles into one long page), displays them on the screen, and lets me clip them to Evernote. How could I live without it.

Human-computer interaction, indeed

This event was great fun – fun as a show, but also impressive in what both the student teams (well, MIT didn’t do that well…) and the computer could do. Jeopardy is a very complicated game, relies on wordplay (In the category “presidential rhymes”, the answer is “George W.’s bottoms”, the question “What is Bush’es tushes), obscure knowledge and word combinations (such as combining two movie titles into a new one, as in “Millon Dollar Baby Boom”).

If only the HBS team hadn’t played it safe towards the end – they bet just enough money so that they would not lose to MIT if they missed the last question – we would have had the first instance where the computer had lost to a human team. Oh well…

Addendum: A perspective from Stacey Higginbotham: Why Watson can’t talk to Siri. (I wonder if they used the same questions at that event, since Chile was an answer in the HBS one, too. Doesn’t mean they are cheating, though – it is quite easy to make a computer forget…

Big data and the study of connections

I read this very interesting article at Om Malik on Broadband, where Dr. Alex Szalay of Johns Hopkins argues that Big Data – the enormously increased availability and analyzability of data as the world increasingly becomes digitized – will mean as much to science as the microscope once did.

It made me think of Douglas Adams’ wonderful lecture on “Parrots, the Universe and Everything.” One of his central points there is that science is changing – from a focus on taking things apart to understand to one where we put them together so that we can watch them interact.

On a smaller scale, I think this is extremely important for businesses, especially those that can be characterized as value networks, i.e. companies whose main value provisioning consists of connecting people and helping them exchange information, goods or money (well, OK then, money is information, I agree, but still.) At present, these companies segment their customers mainly by demographics (age, gender, location, education, etc.) or, for business customers, by size, industry and location. Massive data analysis will allow them to stop segmentation (which is only a representation reducing your market transaction cost, but also providing a less tailored product for the customer) and instead offer services and connections based on which other users each member is connected to and what they exchange.

Imagine instead if your telephone company, bank or insurance company could analyze you in terms of your interactions with others. That would allow the telephone company to group and tailor their services for the customers that create the most traffic, have the biggest impact, prevent the most accidents or in other ways cause desirable changes in behaviors of those around them. This is now done in a very primitive way and after the fact – imagine if you could do it in real time.

Notes from Eric Schmidt at MIT

After the jump, my notes from Eric Schmidt’s talk at MIT today. I am sure this will be available as a video at some point. I found the the whole exercise a bit pat – he didn’t really say anything new, but there were a few nuggets of interest here and there (and my notes are not complete.)

Update 17. nov: MIT writeup.

Continue reading

Hard technology talk in very civilized package

Cory Doctorow likes this talk by John Naughton – which, given how often he quotes Cory without mentioning him, is a bit surprising, but then Cory has always been a very open fellow. I did not find much new here, but the last couple of minutes, and the answers at question time are generally good (including the discussion of copyright and the future of teachers). Decent intro for folks who need an explanation of the Internet in clipped British tones, without PowerPoint and ideology.

And academic speakers in the UK get a bottle of whisky, which I cannot help but see as an improvement…

To quote Cory: Technology giveth, technology taketh away… And incidentally, the idea that the bumblebee shouldn’t be able to fly is a myth.

Truth, time, context, and computation

A reference to Jeanne Ross’ exhortation to companies to find one agreed – or declared – one declared source of truth got me thinking this morning. Jeanne’s point is that in order to get organizations to start discussing solutions rather than bickering over descriptions, it is better to declare a version of the truth to be the real one. If there are inaccuracies in the source of the data, then people can do something about making them more precise, an exercise that in most cases is much more fruitful than trying to suggest alternative numbers.

I very much agree with Jeanne in the main of this statement (probably a smart move, given that I am her guest at MIT CISR this year), as well as the need for it in many organizations. But it got me thinking – what is the truth, and how has what we consider to be the truth been influenced by advances in computation? With Big Data increasingly available, we can now analyze our way to most things. How does this change our concept of what is truth? Moreover, at what level should a CIO declare the one source of truth?

Truth as a function of time and context

I remember a conversation sometime in the nineties with colleagues Richard Pawson and Paul Turton at CSC – the discussion was on how object orientation changed the nature of systems, from being a computationally limited representation (a function, if you will) to being a simulation of the organization. We saw three stages in this evolution:

VERNER Swivel chair, white Width: 24 3/8 " Depth: 27 1/2 " Min. height: 42 1/8 " Max. height: 47 1/4 " Seat width: 20 1/2 " Seat depth: 18 1/2 " Min. seat height: 16 7/8 " Max. seat height: 23 5/8 "  Width: 62 cm Depth: 70 cm Min. height: 107 cm Max. height: 120 cm Seat width: 52 cm Seat depth: 47 cm Min. seat height: 43 cm Max. seat height: 60 cm  First, truth as a stored value. The example we thought of was inventory level – what is inventory level for a certain product? In a world with limited computer resources, the simplest way to have this number would be to periodically calculate it, and then store it so people can have access to it. When you go to IKEA’s web site to search for a nice and cheap office chair (such as the pictured Verner), for instance, they will give you an estimated number in the store closest to you. I don’t know how IKEA calculates that number, but I doubt if they dip into the local POS system of each store to precisely check it each time you query. (If they do, more power to them.) If this number is calculated on an intermittent basis, it will of course be rather imprecise – but it is computationally easy to get to. Similarly, if you ask Google about the distance to the moon, they will come back with documents which have that number in them, generally agreeing on an average of 384,403 km (238,857 miles). However, that is an approximation, since the moon is can be as near as 363,104 km (225,622 miles) and as far as 405,696 km (252,088 miles) depending on where it is in its elliptical trajectory.

I suspect much of the discussion over which are right in most corporations are about these kinds of numbers – calculated after the fact, subject to interpretation because we just don’t know what the precise situation is, and very often we do not know how we got to that number.

However, computation comes to the rescue – with more powerful computers, sensors and faster networks, we can actually move to the second stage: Truth as a calculated number.

For the distance to the moon example, the simple answer is Wolfram Alpha, the mathematical search engine, which will give you the calculated distance to the moon at the time of the query. For the IKEA example, this would mean calculating the number of Verner chairs in the store each time a customer asks on the web. This can be done varying levels of precision. The simplest way would be to get it from the POS system, which records when a chair is purchased and can subtract it from the inventory. A more precise method, given the length of IKEA’s checkout lines, would be to have a sensor on the chair and track when it is taken out of the shelf and placed on the customer’s cart. Precision is largely a question of how much you are willing to spend. For a physical store, tracking cart volumes is expensive, for an online store, it is, in theory, cheap, since a customer moving an item from inventory to cart is done digitally.

This kind of number is much closer to the truth, and much more operationally useful – and the job of the CIO is to declare how this number should be found, tracked and displayed. It may seem somewhat simple to say this, but this is where there should be no question of the source of the truth – every company should have one and only one, and much of the work of CIOs and their organizations in the last 10-15 years has been in moving companies along until they are capable of calculating the one true number.

Then, we move to the next (and so far last) stage: Truth as a calculated number in context. Context very gets more difficult as the need for precision goes up (which, I suppose, blatantly ignoring the quantum mechanical context, is a sort of business version of the Heisenberg uncertainty principle.)

For the distance to the moon example there is little room for context. You could argue that it be different based on where on earth you are, or for what you are going to do with the information (launching a satellite or calibrating your telescope, for instance) but for most uses, there is little need for contextual customization.

For the IKEA example, the situation is rather different for different parts of the organization, and for different types of customer. If I am a customer looking up the number from my smartphone while close to the store, the POS number might be OK, since I would get to the product in short time and the consequences of imprecision would be small. If the nearest IKEA store is several hours’ driving away, then I might want a different number, one that incorporates not just the current situation but also the likelihood that the number would be zero before I get there. Or, I might want a reservation function, either setting the product aside or at least allowing me to report that I aim to buy one within the next x hours and thus would like the number shown as available to be reduced until I can make it to the store. In an online store, the problem is the diametrical opposite – there, customers can have carts sitting for days and it becomes an operational necessity to have some policy declaring at what point the products in the cart will have to be made available to other customers.

Similarly, the very concept of inventory level itself means different things to different parts of the organization. For a store manager, it is a cost concept, something to be optimized in a balancing act between capital costs and stock-outs. For a supply chain manager, it is also a flow concept, something to be optimized between stores. For someone managing the physical space of the warehouse, it is a physical concept – goods that have been sold to a customer but not yet picked up are very much something you need to manage. And for a sales person, inventory levels is an availability concept, often subject to negotiations and transfers within the organization.

So, what is a CIO to do?

I think the declaration of a source of truth is a question of hitting the right level, navigating between the simplicity of simple numbers and the complexity of inferred context. In most cases, I suspect, the optimum lies in providing the ability to find the truth, giving customers (i.e., of the IT organization) their numbers at the source – which should be the one, declared one – but also giving them the tools to interpret them in light of their own context.

The key here is not to try to move from the first phase to the third without missing the second. Unfortunately, in my view, many IT organizations have done just that, by responding to requests for customized reports, systems and views from archival rather than current, operational data. As each number becomes institutionalized through use within its context, transitioning to a declared truth can become an exercise in power rather than rationalism. Better to promise context after speed and precision has been provided – and even better, provide the context in a format the end consumer can relate to within their own context.

For IKEA, that might be giving me the number of chairs available plus a prediction (based on history and, say, number of cars in IKEA’s parking lot) as to how many chairs are likely to be sold, with variance, within the next x hours. For the rest of organization, well – it depends. But ones you provide real-time access to well defined operational data, you can safely leave the question of what it depends on to the person wanting to use it.

Steven Pinker on the decline of violence

Steven Pinker, just out with a new book (The Better Angels of Our Nature: Why Violence Has Declined), gives a talk outlining how rates of violence are falling in the world, and the causes of this. Excellent, highly recommended, and available for free in high resolution:

Progress is actually progress. Hans Rosling would agree.

Update March 30, 2012: I really should clean up my notes and add to this post, but this review by Peter Singer sums it all up nicely, so I won’t bother. But it is worth a read, 800 pages and all.

Bohemian Rapsody on Ukulele

This is simply wonderful, shades of Rodrigo y Gabriela, you are simply amazed that it can be done at all:

By the way, you can stop watching at 7:00, the rest is just a Rolex commercial.

Epicurean financial readability

The Epicurean DealmakerThe Epicurean Dealmaker is one of my favorite blogs – witty, learned, topical, writing anonymously and eruditely on topics financial and others. That someone can profess to be an epicurean and at the same time an investment banker may seem like a contradiction in terms, but from his/her writings, the worthy blogger seems to pull it off. May he never be found out – or worse, may he not be found to be an out-of-work high school dropout with a Unix box, a Greek library and CTS.

Anyway, his latest missive on the continuing counterparty risk caused by investment banking consolidation and market monopolization is definitely worth your time and not inconsiderable effort. The causes of the last financial crisis are a alive and well, thank you very much. Lest you think the worthy Epicurean is an insider with an ax to grind, let me offer his elegant, is snarky, caveat emptor defense of the industry as well.

Investment banking and the whole “structured products” industry is so complicated that anyone can get lost – and most politicians and economists seem to avoid discussing it, much like most executives avoid discussing technological and network externalities. It simply is too hard, too complicated, and lacking in easy, sellable solutions. Better to not talk about it, at least not in detail.

By the way, he blames the lawyers for much of the complication of financial regulation. Hard to disagree.

Brilliant on Wikipedia, plagiarism and the student-teacher relationship

Foxtrot is brilliant – and I just found this entry (which dates from around 2006) and had to add it here:

Hoisted from comments: Entering the networked society

I liked this video, mentioned by @karthix in the comment for the previous post on examples of how computers are encroaching on domains formerly thought to be exclusively human:

Aside from the elegant examples, I found it relatively concrete and hubris-free – compared to this rather anemic vision of the future Microsoft has bestowed on us. It actually works better as a parody.

(And yes, I know that “hoisted from comments” is a Brad DeLong expression. Why not learn from the best?)