Tag Archives: data center consolidation
The Surprising Link Between Hurricanes and Strawberry Pop-Tarts: Brought to you by Clean, Consistent and Connected Data
What do you think Wal-Mart’s best-seller is right before a hurricane? If you guessed water like I did, you’d be wrong. According to this New York Times article, “What Wal-Mart Knows About Customers’ Habits” the retailer sells 7X more strawberry Pop-Tarts in Florida right before a hurricane than any other time. Armed with predictive analytics and a solid information management foundation, the team stocks up on strawberry Pop-Tarts to make sure they have enough supply to meet demand.
I learned this fun fact from Andrew Donaher, Director of Information Management Strategy at Groundswell Group, a consulting firm based in western Canada that specializes in information management services. In this interview, Andy and I discuss how IT leaders can increase the value of data to drive business value, explain how some IT leaders are collaborating with business leaders to improve predictive analytics, and share advice about how to talk to business leaders, such as the CFO about investing in an information management strategy.
Q. Andy, what can IT leaders do to increase the value of data to drive business value?
A. Simply put, each business leader in a company needs to focus on achieving their goals. The first step IT leaders should take is to engage with each business leader to understand their long and short-term goals and ask some key questions, such as:
- What type of information is critical to achieving their goals?
- Do they have the information they need to make the next decision or take the next best action?
- Is all the data they need in house? If not, where is it?
- What challenges are they facing when it comes to their data?
- How much time are people spending trying to pull together the information they need?
- How much time are people spending fixing bad data?
- How much is this costing them?
- What opportunities exist if they had all the information they need and could trust it?
Q. How are IT leaders collaborating with business partners to improve predictive analytics?
A. Wal-Mart’s IT team collaborated with the business to improve the forecasting and demand planning process. Once they found out what was important, IT figured out how to gather, store and seamlessly integrate external data like historical weather and future weather forecasts into the process. This enabled the business to get more valuable insights, tailor product selections at particular stores, and generate more revenue.
Q. Why is it difficult for IT leaders to convince business leaders to invest in an information management strategy?
A. In most cases, business leaders don’t see the value in an information management strategy or they haven’t seen value before. Unfortunately this often happens because IT isn’t able to connect the dots between the information management strategy and the outcomes that matter to the business.
Business leaders see value in having control over their business-critical information, being able to access it quickly and to allocate their resources to get any additional information they need. Relinquishing control takes a lot of trust. When IT leaders want to get buy-in from business leaders to invest in an information management strategy they need to be clear about how it will impact business priorities. Data integration, data quality and master data management (MDM) should be built into the budget for predictive or advanced analytics initiatives to ensure the data the business is relying on is clean, consistent and connected.
Q: You liked this quotation from an IT leader at a beer manufacturing company, “We don’t just make beer. We make beer and data. We need to manage our product supply chain and information supply chain equally efficiently.”
A.What I like about that quote is the IT leader was able to connect the dots between the primary revenue generator for the company and the role data plays in improving organizational performance. That’s something that a lot of IT leaders struggle with. IT leaders should always be thinking about what’s the next thing they can do to increase business value with the data they have in house and other data that the company may not yet be tapping into.
Q. According to a recent survey by Gartner and the Financial Executives Research Foundation, 60% of Chief Financial Officers (CFOs) are investing in analytics and improved decision-making as their #1 IT priority. What’s your advice for IT Leaders who need to get buy-in from the CFO to invest in information management?
A. Read your company’s financial statements, especially the Management Discussion and Analysis section. You’ll learn about the company’s direction, what the stakeholders are looking for, and what the CFO needs to deliver. Offer to get your CFO the information s/he needs to make decisions and to deliver. When you talk to a CFO about investing in information management, focus on the two things that matter most:
- Risk mitigation: CFOs know that bad decisions based on bad information can negatively impact revenue, expenses and market value. If you have to caveat all your decisions because you can’t trust the information, or it isn’t current, then you have problems. CFOs need to trust their information. They need to feel confident they can use it to make important financial decisions and deliver accurate reports for compliance.
- Opportunity: Once you have mitigated the risk and can trust the data, you can take advantage of predictive analytics. Wal-Mart doesn’t just do forecasting and demand planning. They do “demand shaping.” They use accurate, consistent and connected data to plan events and promotions not just to drive inventory turns, but to optimize inventory and the supply chain process. Some companies in the energy market are using accurate, consistent and connected data for predictive asset maintenance. By preventing unplanned maintenance they are saving millions of dollars, protecting revenue streams, and gaining health and safety benefits.
To do either of these things you need a solid information management plan to manage clean, consistent and connected information. It takes a commitment but the pays offs can be very significant.
Q. What are the top three business requirements when building an information management and integration strategy?
A: In my experience, IT leaders should focus on:
- Business value: A solid information management and integration strategy that has a chance of getting funded must be focused on delivering business value. Otherwise, your strategy will lack clarity and won’t drive priorities. If you focus on business value, it will be much easier to gain organizational buy-in. Get that dollar figure before you start anything. Whether it is risk mitigation, time savings, revenue generation or cost savings, you need to calculate that value to the business and get their buy-in.
- Trust: When people know they can trust the information they are getting it liberates them to explore new ideas and not have to worry about issues in the data itself.
- Flexibility: Flexibility should be banked right into the strategy. Business drivers will evolve and change. You must be able to adapt to change. One of the most neglected, and I would argue most important, parts of a solid strategy is the ability to make continuous small improvements that may require more effort than a typical maintenance event, but don’t create long delays. This will be very much appreciated by the business. We work with our clients to ensure that this is addressed.
I. The Problem
At a time when governments at all levels are being called upon to once again, “do more with less,” Data Center Consolidation (DCC) has become a hot topic. While the Federal government has called for a reduction of 2,400 Data Centers down to about 1,200 by 2015, what does that mean, and most important, how does government get there? (more…)
Gartner hosted a webinar on January 10, 2012: Gartner Worldwide IT Spending Forecast. One of the topics covered was industry IT spend for 2012.
In covering that topic they made a point of saying that due to severe flooding in Thailand, they expect storage to become in short supply (as much as a 29% global shortfall) through the end of 2012. It is expected that the price of storage/GB will increase as a result and supplies will fall short of demand. They recommended finding alternatives to purchasing storage to keep costs down. (more…)
As part of their cost cutting program, organizations are consolidating data centers and the applications within them. Federal and state agencies in the public sector are among those where IT consolidation and moving applications to the cloud are top priorities as part of an overall goal to increase efficiencies and eliminate costs. In other industries, many consolidations are also under way due to mergers and acquisitions and other cost cutting initiatives. As you plan or undergo a consolidation project, you also need to plan for the retirement of legacy, redundant applications that are left behind.