Chapter 1
The Last Mile Problem
Water, water, everywhere, and all the boards did shrink;
Water, water, everywhere, but not a drop to drink.
Samuel Taylor Coleridge
The Rime of the Ancient Mariner
The Texas Oil Boom at the turn of the 20th century saw populations in Dallas double and double again in a few short years. This tremendous growth was driven by a wholesale shift of the U.S. economy and infrastructure to automobiles. The first Ford Model T left the factory on September 27, 1908. Less than 20 years later, in 1927, Ford had produced 15 million cars as supply and demand caused a massive societal shiftâthe United States literally drove into a new society.
Similarly, the advent and widespread use of the personal computer at the end of the 20th century led to a new boom: the Information Age. Thirty years after the launch of the personal computer, we entered a new era of big data and data-driven decisions that has been compared to the oil boom. Certainly the hype is gushing and hopes are high that data will deliver smart insights and a more intelligent enterprise.
This is the promise, but hereâs the hitch: Although generations of teenagers have learned how to drive as a rite of passage into adulthood, and with it have found new degrees of freedom, we have not systematized the acquisition of skills essential to ensure data fluency. The language at the heart of the highways of commerce, now, and even more so in the future, is available to relatively few.
The 1920s and 1930s saw the advent of factories to efficiently mass produce automobiles, and generations of insight inform our patterns of consumption of this critical product. Almost 100 years later, a critical set of skills is now needed to ensure individuals and organizations are thoughtful consumers of data, and emerging skill sets are essential to produce data-based presentations and actionable data products.
It is to the development of this critical set of skillsâthose of being informed, capable consumers of data, and of being accomplished producers of data presentations and productsâthat this book is dedicated. Our goal is to help individuals and organizations understand and develop data fluency, as we contend it is the new language, the new highway, of commerce in the 21st century.
The Information Age: Driving the Need for Data Fluency
Fantastic advances in data storage capacity have fundamentally changed the trade-offs we need to make regarding what to keep and what to delete. Rather than having to carefully decide what elements of our digital reality to capture and which to throw away, we can now keep everything. We can have it allâand we do. According to independent research organization SINTEF (The Foundation for Scientific and Industrial Research), 90 percent of all the data in the world has been generated over the last two years.1 With more Instagram pictures, more tweets, more history of where customers go on the web, we are rapidly growing the amount of data we can sift through.
In a sense, the raw materials for informed decision-making have never been more plentiful. Yet the promise of data nirvana still seems far off. Students, scholars, employees, and executives are often still making crude decisions based on chance, gut, or whims of the crowd. In this era of data as the new oil boom, whereâs the payoff? Are we making better decisions and are we better able to understand our world? Are we driving cars or still riding horses along the digital highway?
On the ground, in the organizations weâve worked with at Juice Analytics, people are often frustrated by their inability to effectively use data. Theyâve built data warehouses, invested in expensive business intelligence solutions, and spent finite fiscal resources to hire data scientists. Theyâve data-mined, analyzed, defined key metrics, and created dashboards. Despite these efforts, data is often under-used and misunderstood.
Few people, and fewer organizations, consistently engage with the data and use it to guide their thinking. Our vision is for everyone, from front-line customer service agents to senior executives, to leverage the mountain of data at their disposal. Forget the complex Wall Street trading models or IBMâs Watson computer diagnosing diseaseâdata in your organization can and should be used in simple, incremental ways to improve conversations, focus resources on priorities, and make small, everyday decisions with clarity.
Making use of data is a problem common to organizations large and small, public and private, and across market segments. According to a study conducted by the consulting firm Avanade, âmore than 60 percent of respondents said their employees need to develop new skills to translate big data into insights and business value.â2
With all the promise that data holds, and the hope that data can help us make more informed decisions, the big question is: What is causing the gap between the vast opportunity of data and the reality of organizations struggling to act on this data? Here are a few theories:
- 1. Many people are data phobic and unwilling to engage with data to make decisions.
While at a leading Internet media company, we witnessed analysis teams dutifully churning out detailed reports about how online content was performing while the report recipients, content managers, dutifully ignored the information. Decisions had always been made based on gut and continued despite more and more detailed data about content usage and users.
- 2. Technology and personnel limitations constrain organizationsâ ability to work with their data sources.
Many organizations we encounter lament their spreadsheet-driven culture. Every department has its own mechanism for gathering, analyzing, and reporting on its unique data. No consistent âsource of truthâ exists and data analysts become indispensable because they are the only people in the organization who know how a financial model works, how to access and understand the data sources, and its strengths and weaknesses. People in these organizations wish for a technology solution that could bring all the information together and make it available to all decision makers in interactive, visual dashboards.
- 3. Organizational constraints inhibit the effective use of data.
In school districts around the country, superintendents often lament the lack of good data. Indeed, the Gates Foundation is currently putting significant resources into developing district level dashboards to inform decisions. Yet, critical organizational challenges remain with respect to collecting the data in a timely manner, linking data to competency and performance assessments, and engaging teachers in the process.
We believe that data-phobia, technology limitations, or organizational dysfunction are symptoms of something broaderânot the root causes of the lack of payoff we are currently realizing from data. The root cause is something we call âthe last mileâ problem. Fundamentally, failing to use data isnât a technological problem, but a social problem.
The last mile analogy comes from telecommunications where bridging the final few feet from the big pipes carrying gigabytes of Internet traffic throughout your city to each individual house is the most costly. With data, collecting and storing information is the easy part. The technologists have done their job. It is analytics, application, and adoption that pose the greatest challenge. Although data storage can be done en masse, the last mile is personal and often organization-specific. Revealing insights, influencing decisions, and taking action requires skill and motivation at a personal and organizational level. This is the missing linkâthe last mileârequiring individual and organizational data fluency.
This book is about how organizations can more effectively communicate with dataâboth internally and with external constituents. It is about people and the specific skills needed to be capable consumers and effective producers of data-based reports and presentations.
Data Fluency: Unlock the Potential Energy of Data in Your Organization
In many ways, data is like oilâand it is certainly so in the economic engine of your organization. Just like you canât pull crude oil from the ground and pump it directly into your gas tank, or mold it into a plastic LEGOÂź brick, you canât dump data into an organization and expect it to be useful. Creating value from data is a complex puzzle; one that few organizations have solved. Although there isnât a simple answer (and thus why so many organizations struggle), the good news is that understanding the nature of the problem offers a starting point for our path forward. Data fluency is the pathâthe ability to use the language of data to fluidly exchange and explore ideas that are important to your organization.
In this book, the goal is to help you unlock the potential of data in your organization. Your data challenges have less to do with technologies and organizational constraints, and more to do with developing the capacity of data consumption and production within individuals and organizational teams.
Data fluency applies to individuals (everyone needs the skills to âread and writeâ and âlisten and speakâ using data) and also to ...