Monthly Archives: December 2011

Understanding ‘Unknown- Unknown’ Information Drivers Addresses ‘Sea of Data’ Issues and Creates Opportunities

Understanding The ‘Unknown- Unknown’ Information Drivers Addresses ‘Sea of Data’ Issues and Creates Opportunities

I posted comments on Fast Company article discussing ‘Sea of Data’ issues Fast Company Article “Avoiding Short-Term Thinking In A World of Big Data”   http://tinyurl.com/7gaepbl

I shared my vision that predictive analytics is ‘raising the bar’ in how we manage the ‘sea of data’,  and offered comments on new directions I see in manufacturing and health care. Here is a copy of my comments posted on the Fast Company site:

The article makes the point that “…in a sea of data, how can we make sure that we’re not just reacting to the information in front of our face, but rather analyzing every possible input.”

One solution to the problem, not mentioned in the article, is the need to develop new analytics to identify key drivers which create the data ‘outcomes’. Predictive analytics enable us to identify these ‘unknown-unknown’ drivers that can only be found by analyzing data, looking for relationships and new rules that emerge developed by analyzing the data. Contrast this to today’s ‘deductive’ approach using expert opinion and well-defined rules.

This ‘data-driven’ analysis to create new rules is an inductive (rather than deductive ‘expert opinion’ based approach) and from my perspective holds great promise to radically change current business processes, improve productivity and improve our quality of life.

This may sound bold, but as the former CEO of an early stage predictive analytics company and also looking at new opportunities in analytics, I see exciting potential here.

Some possibilities:

Look at manufacturing. If a “supplier’s supplier” has a problem, supply chain management ensures quick notification, before it impacts the assembly line. Predictive analytics engines ‘raise the bar’ here by analyzing historical performance and risk data, often real time, defining future risk and performance drivers, and enabling management to optimize performance and mitigate risk.

Going beyond traditional data mining, these new predictive analytics tools analyze industry reports, government filings, trade press, and other sources to assess supplier “health,” pending regulations, and other “unstructured” data sources. Seamlessly integrating with other data, we can use these to more accurately gauge supplier and production line risk and improve performance.Driving new rules,  providing real time early warning signs that impact future supplier and business performance are the new management tools to harness ‘the sea of data’.

Look at health care, my primary focus, where PA techniques hold great promise to help our current health care system. Consider the benefits of these new capabilities which are only a small sample of what lies ahead here:

•    Tracking  Medical Diagnoses, Treatments, Medications, Outcomes, Costs,Reimbursements, and Relationships

ICD or International Classification of Disease Codes , classifies diseases on health records.CPT or Current Procedural Terminology codes developed by the AMA describe services provided by medical practitioners. Medicare employs a similar system, using ‘HCPCS’. Tracking and examining relationships among these metrics, looking at patient data, identifying processes, and key cost and patient health drivers, you can develop ‘best practices’ to improve the health
care process.

•    Identifying Adverse Drug Analyses – assessing underlying drivers to more effectively identify “at risk” patients

•    Optimizing clinical trials (candidate selection and monitoring) – predicting higher risk clinical trial candidates and assessing the key risk drivers

•    Developing directional indicators to predict the underlying drivers for treatment of chronic disease to understand how medication protocols impact treatment plans and patient outcomes

The new predictive analytic-based tools now emerging in all sectors are helping companies cope with the sea of data problem, and  “raising the bar” in how leading firms optimize business performance in today’s  dynamic global markets.

Paul B. Silverman

Author: Worm on a Chopstick : Understanding Today’s Entrepreneurial Age: Directions, Strategies, Management Perspectives http://paulbsilverman.com/books/

Email:      paul@paulbsilverman.com
blogs:       http://paulbsilverman.com/blog/
Linked in:  Paul Silverman
Twitter:     globalbizmentor

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Buy Health Monitoring Devices Off The Clothing Rack?

In my recent  book, I talked about how technology is reshaping traditional markets and strategies. Given new directions in integrating health care monitors into clothing, I suggested we may be buying health care monitors in Lands End, and discussed how this will impact traditional retailer strategies. Sales staff questions may move from “What size and color jacket would you like to see?” to “Can I show you our blood pressure-only monitoring jacket or our top of the line full featured model tracking glucose, oxygenation and includes a USB port?”

And what about health care coverage. Expect to see some interesting issues emerge here- are you buying a jacket or a medical device; where do you draw the line?

The recently announced MisFit Wearables, with an investment by John Sculley MisFit Wearables Health Care Startup , I expect is moving in this direction joining other players and more are coming. The proliferation of sensor data from a wide range of devices (some you wear as clothes, some you attach to your body, some are like  band-aids, you use and dispose), and the need to track, securely manage, share, analyze and communicate  this data is spawning a new sector.

What is really exciting is moving from collection of basic vital sign data and using advanced analytics to analyze vital sign data, understand the real time impact of medications (both pharmaceuticals and nutraceuticals) and empower users and clinicians with new tools that can, I believe make a real contribution to improve our personal health and wellness, a market sector I am pursuing with a talented team. Lots of exciting developments here. Stay tuned.

 

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Utilities Develop Smart Meters:Missing “Marketing 101”

Utilities are developing new monitoring and energy management technologies but are missing ‘Marketing 101’ basics. I posted following comments on Fast Company article http://www.fastcoexist.com/1678981/smart-meters-not-just-for-electricity-anymore#comments

Agree we need to educate the public about smart infrastructure, but we need to refocus our strategy and message here.

Today we take a ‘silo’ approach driven by utilities and what technology driven services they can deliver to the market. Water supply companies describe capabilities from managing real time supply and demand metrics, and creating new features to improve cost performance. Same for electric  utilities.

To secure  public support and  replicate the benefits many other countries have realized, I recommend a “Marketing 101″ approach to policymaking here, starting with the public consumer. First, define benefits we want to deliver, then define the functions and features needed to deliver these benefits. In my ‘Marketing 101’ model, technology is a enabler, a means to the end, to deliver benefits to end users. Remote meter reading and energy management are technical features, not benefits.

I am leading a new health care which will empower users to more effectively manage and track medications, vital signs and wellness using proprietary technology. While it is seductive to start with what I call real,  ‘gee-whiz’ technology, our winning strategy focuses 100% on what users need, want and how we use technology to create benefits to build a sustainable business. Lots of exciting and proprietary technology here, but need to always keep in mind technology is an enabler for the real business.

So going back to our meter reading/energy  technology enabler, following ‘Marketing 101’ thinking, a good starting point in the policy discussion is to develop proposed applications which target sectors and deliver real definable benefits to users. Some
suggestions, and I am sure readers will have many more ideas:

1.Senior Utility Management Program: Integrated program to manage all utilities targeting seniors – integrated billing, management, budgeting service with appliance management and maintenance – turnkey service. While I do not expect utilities to
necessarily offer these services, utilities can take the lead defining these new capabilities, making data available to third party providers, and  create an exciting new market segment which will attract  new ventures. Note utilities can be the driver here, pursuing an ‘open platform’ strategy, setting standards, following the model in other sectors.

2. Home Management Services: Expand the model, leverage M2M (machine to machine) technologies, and offer users a comprehensive utility and home management/monitoring  system, status updates and other features. These applications are emerging in various forms – what I am suggesting is utilities  can be
‘entrepreneurial partners’ here to help jumpstart the process. The M2M market ,  is exploding, and these applications deliver real benefits to users

‘Marketing 101’ thinking works in the commercial sector to develop and drive new business. Given technology advances in the utility sector, I see opportunity for Marketing 101” thinking there also to improve utility cost performance and deliver  real benefits (not just new technology) to users.

Paul B. Silverman

Author: Worm on a Chopstick : Understanding Today’s Entrepreneurial Age: Directions, Strategies, Management Perspectives http://paulbsilverman.com/books/

Email:      paul@paulbsilverman.com
blogs:       http://paulbsilverman.com/blog/
Linked in:  Paul Silverman
Twitter:     globalbizmentor

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Boards & Directors 35th Anniversary Edition Features Worm On A Chopstick

Very pleased to announce that the upcoming 35th Anniversary Edition of Boards & Directors magazine will feature Worm On A Chopstick: : Understanding Today’s Entrepreneurial Age: Directions, Strategies, Management Perspectives in its recommended reading section “Book it: Best bets for board reading“.  As you may know, Boards & Directors magazine targets officers and directors of public companies. To see the  review of ‘Chopstick’ and other recommended books, click here Worm On A Chopstick Featured in Directors & Boards 35th Anniversary Issue

I sent many messages to traditional management in ‘Chopstick’ (e.g., innovation management, entrepreneurial thinking, globalization, etc.), but most positive response for the book to date has been from the entrepreneurial sector. I am very appreciative of the recognition of ‘Chopstick’ which is in good company with the other recommended books here.

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How To Be A Startup CEO – Bing Gordon Kleiner Perkins Video

Excellent video I highly recommend by Bing Gordon, partner at VC firm Kleiner Perkins Caufield & Byers (http://tinyurl.com/6vc5hy8). I also posted comments on video site and will be using some of these ideas in upcoming entrepreneurship course am teaching at GWU;

My posted comments as follows:

Excellent insightful presentation. I contribute teaching entrepreneurship in the George Washington University School of Business CFEE (“Center for Entrepreneurial Excellence”) and also serve as CEO of Sante Corp, a new venture with proprietary technology developing a new web-based personal health management system. My recently published book Worm on a Chopstick : Understanding Today’s Entrepreneurial Age: Directions, Strategies, Management Perspectives shared perspectives and tips on what entrepreneurial company managers need to know to move to beyond a start-up to create a high growth company.

Many excellent management tips and messages in Bing Gordon’s video I am sharing with both students and colleagues. There are 3 messages in particular I am emphasizing:

  • The Need to Balance Management and Entrepreneurial Responsibilities Entrepreneurship is messy and often frenetic, pursuing innovative technologies, new product launches and building an organization with minimal capital. CEO must nuture and balance entrepreneurial culture with clear focus on tightly managing results. I find many entrepreneurs lack the ‘traditional’ management skills and have a ‘build it and they will come’ philosophy- these new management skills can and must be learned. Bing Gordon’s presentation clearly reinforces this point.
  • Quantifying Objectives with Trackable Milestones Gordon describes Intel’s ‘OKR’ or ‘Objectives and Key Results’ management approach – managers set objectives and identify and track 2 to 3 results, and managers expected to achieve 70 percent of results. Very important discipline which helps companies grow and send messages to Boards and investors. I have used KPI’s (‘Key Performance Indicators’) for years in many global businesses, discussed KPIs in my recent book, and counseled many CEO’s to adopt and use these tools . Also proposed a similar approach to track large numbers of new inner-city entrepreneurial companies in a new “Entrepreneurial Empowerment Program (EEP)” I am proposing to the administration. Excellent discipline and should be more widely promoted.
  • CEO’s Need to Implement Scalable Processes CEO’s need to think and plan long term- that means understanding that scalable processes must be established early, what are the objectives of these processes, when are they needed, what cost-effective solutions can we implement now to serve as ‘building-blocks’ as business scales. This message is often missed by entrepreneurial managers struggling with day-to-day challenges with limited resources.

Thanks for sharing an excellent, insightful presentation.

Paul B. Silverman

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Entrepreneurship in the Health Care Sector and Syndicated National Radio Interview – Entrepreneurship- New Directions

Upcoming – TV Interview :Entrepreneurship in the Health Care Sector and Syndicated National Radio Interview: Entrepreneurship- New Directions

I have agreed to do a one hour TV interview on entrepreneurship in the health care sector. The interview will be scheduled for early January and follows my recent live TV interview discussing entrepreneurship on the weekly Upside Business Show on November 21st- the program was well received – copy of broadcast now available at http://www.ustream.tv/recorded/18671440 (click on Nov.21st show if needed)

While we see enormous challenges in today’s health care market, positive developments are emerging. One perspective, which I shared in my recent book ( Amazon at http://tinyurl.com/84texaf), is the pharmaceutical market includes two primary sectors—therapeutics (i.e., drugs) and diagnostics. Therapeutics is the pharmaceutical firms’ traditional business, reported to be about a $400 to $450 billion market.

Compare that to the diagnostics business, which includes several hundred companies, including many early stage entrepreneurial companies. Revenue estimates vary, but total diagnostic sector revenues are estimated at less than $30 billion, or less than 10 percent of a major pharmas traditional business. But diagnostics reduces health care costs and improves patient care, and many exciting developments are emerging providing the tools needed to improve early disease detection and wellness. Most important, we see entrepreneurial firms creating real excitement here. In the upcoming interview, I will share my vision on new directions I foresee and also invite one or more industry representatives to also share their insights.

I also accepted an invitation for an interview on a nationally syndicated NYC radio show to discuss new entrepreneurship directions and policies.

Stay tuned for dates and times – schedules to be firmed up shortly.

 

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