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As we have witnessed in recent history, executives are not as well equipped to perform this responsibility as expected We advocate high focus on smart data and an accompanying strategy and management technology portfolio to improve the situation Having studied management science and operations research, we often wonder throughout our management careers why there is so little evidence that executives apply the methods and algorithms that many have learned and some of us continue to teach Upon investigation, a pattern appeared: while problem solving logic and formulations might apply, there is often insuf cient data on which to operate Data may be de cient in a variety of ways, ranging from there isn t any to a host of issues about quality Yet, mostly, de ciencies have to do with failing to prepare for and anticipate the need for data Thus we suggest that executives raise questions and demand smart data to answer those questions in order to optimize enterprise performance Answering Questions that Management Does Not Believe Could Be Answered When operating Talon Publishing & Research, a rm dedicated to answering questions that management did not believe could be answered, George conducted primary research for a new product initiative at GTE Telecom The product was a telecommunications management system that was the brainchild of retired Air Force of cers who envisioned applying what they had learned in the military combined with commercial off-the-shelf (COTS) technology to commercial needs about which they knew little Before investing, GTE executives wanted to know the market for the system and details about how to price the product and associated services By employing a 20 page research instrument mailed to 5000 individuals selected from the prospective customer universe, and with a 20% response rate, GTE determined that it could sell 50 units with high certainty, and the research provided granular information related to pricing product and service features Before the survey, many executives were skeptical You will never get them to answer 20 pages of questions To make a long story short, success was based on presenting the right questions to a highly quali ed audience for which the questions were relevant and important to them, and we promised to share the answers Research results-driven advertising and marketing instruments were rapidly prepared immediately upon completion of the analysis Messages were closely aligned with what was learned about customers Timely follow-up was directed to the hot prospect respondents and $80 million in new business was closed within 12 months with signi cant after-sales service of >$300 million The short and ef cient selling cycle made believers of GTE management and they created the GTE Intrapreneur Program as a result, whereby the technique was routinely applied to developing ventures Today, companies employ this technique in an ever more sophisticated manner, leveraging social media, blogging, electronic white paper publishing, and surveying The more the audience is bombarded by this surfeit of information, the more creative enterprises must be to entice and engage customers Smart data is central to
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improving intelligent marketing as it leverages answers buried in information that is already available Some call this data mining Data mining is surely an aspect of smart data Executives were asking the following of questions:
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Who are our customers How much will they buy When will they buy What must we offer them How much should we charge What after-sales services should we offer Who are our competitors What must we do to provide a superior offering
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The answers to these questions provide the basis for prediction with a degree of certainty Every enterprise has questions like these for which quantitative answers are readily determinable Notice also that these questions accompany other more routine business questions such as:
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How is our cash ow What are the capital and material requirements What are the enabling people and technology requirements What are the processes involved What are the performance metrics What is the payback period and break-even What is the return on investment
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Observe that many of these questions are not answered by routine business accounting, although some are There is concern that application of general accounting principles and resulting reports are not predictive They provide historical reporting from which analysis and comparison may serve as a retrospective report card, though not necessarily indicative about the future A smart data and smart data strategy approach improves the ability of enterprises to prepare for and more accurately anticipate the future The art of management becomes more of a science in this regard The US Department of Defense has questions that are speci c to its area of concern:
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What threats does the country face What are the characteristics of the sources What is the priority of these threats How are the threats de ned in terms of operational scenarios What are the associated logistics footprints required in effective response
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