Big Data? Great. Where is the Big Model?
Big Data is easy. The Right Model not so much…
I once met an aspiring baker. He showed me a pantry full of flour and a refrigerator full of eggs and milk. It was clear he would be successful…?
I once met an aspiring home builder. She had the biggest pile of bricks and lumber I had ever seen. I knew the house would be a masterpiece…?
I once met an entrepreneur with a truck full of high quality widgets… you get the idea. Where was the plan? Where was the model? The best indicator of success for these folks would have been found in their recipe, their blueprint, and their business model. So why do so many executives get so excited about their data?
80% of all data is a commodity asset — more value will come from your model than the other 20%
Don’t get me wrong, I love data! But the value in your data is more derived from its context and connection. These elements will be embedded in your business models long before they can be designed into your warehouse. You need to get your model right — then you can get excited about your data.
Toys are models, but models shouldn’t be toys (at least not for your business)
Models are everywhere. Segmentation schemes, software solutions, good reporting, and your P&L are all models. But you need to start with the biggest one, your business model. If you can’t draw that on a whiteboard during the course of a regular conversation… well, you know where to start.
Now while I can help you work out your business model, an analyst like me is better employed as a translator. I can turn your model into a recipe, a blueprint, a warehouse design, but most importantly a working model for your business.
The scientific method isn’t about data. It is about testing models.
Once we have modeled out your business processes and data, we can begin testing the model. This leads to better understanding, better decisions, better prioritization, and better forecasts.
This bares repeating with a bit more detail. I take your business model straight from your whiteboard, add a bit more focus on your major processes, and then layer over it the data you are collecting. This is the start of real value, if you are truly data rich. Sometimes this process proves you are data poor.
If your data doesn’t reflect your model, it may be valuable but not to you.
With this Big Model we can put your Big Data to purpose. We can form and test hypotheses — in other words, we can learn. Organizations capable of learning are better positioned for success than any other — regardless or market share, brand, or funding. You need a Big Model. You need the Right Model, the impact won’t require any grandiose branding. Your data, on the other hand, is very dependent on either great branding or a great model.
So stop bragging about your big data and start working on a big model. That is where the real value will be created. And thanks for reading!
For help developing the right model for your business:
