UNCORRECTED PROOF

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C A R PAT H I A B O O K S

Copyright 2012 by Carpathia Books. All rights reserved.

No part of this book may be reproduced in any form without
written permission from the publisher.
Design by Carparthia Media.

Why do we assume simple is good? As you bring

order to complexity, you find a way to make the
product defer to you. Simplicity isnt just visual style.
Its not just minimalism or the absence of clutter.
To be truly simple, you have to go really deep.
JONY IVE, APPLE

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Introduction
Consider this data footnote from history, relating to the sinking of the
HMS Titanic.

Captain Edward J. Smith had already taken corrective action in response to

iceberg warnings, and four days out of Southampton had drawn up a new
course which took the ship slightly further southward. Little did he know that
the information he needed to safely arrive in New York harbor was already
aboard the Titanic, yet inaccessible.

That Sunday at 1:45 PM, a message from the steamer Amerika warned that
large icebergs lay in Titanics path, but because Marconis wireless radio
operators were paid to relay messages to and from the passengers, they
were not focused on relaying non-essential ice messages to the bridge.

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Really? Can you imagine all of those meaningless messages that did get
through to the Titanics passengers on April 12th? It is astounding to consider
that mission-critical intelligence existed yet was given lesser value by the
operational policies of the White Star Lines strategic communications partner,
Marconi. In a more open, multi-channel communications environment, perhaps
the information flow would have saved 1,517 peoples lives.

This is where data matters.

This book is about data. Well, a certain kind of data.

In his biography, Steve Jobs talks over and over about how important it is for
business leaders to block out noise. Data can be noise, overwhelming noise,
as we all experience in our daily lives.

But we are talking about deep data. Data that is gathered not from thin slices
of customer activity, but from an understanding of the whole of customer
behavior. Not what they chat about, not what they like, not what banner ad
they click on. Deep data measures, as Eloquas Steven Woods calls it, digital
body language. In other words, everything they do.

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Google does it. Look at the sophistication of their contextual ads in your
search results. And we all know how powerful and successful Amazons

if you liked this feature is. An Amazon email isnt spam, its likely a targeted
message that actually interests you.

When you can collect this kind of data, it gives you real time insight into your
customers responses and allows you to improve your product.

So now your data is deep. Its not noise. And its not going to sink your ship.

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1
Shallow

You dont want to be here. You do not want to be skimming the surface.
The entire world is going deeper, accommodating more and more information.
Look at the impact of Moores Law. Not only is computer circuit processing
power doubling every 18 months; the soft ability to track, analyze, segment,
re-connect and apply larger and larger sets of information is doubling right
alongside the hardware and the wiring.

Maybe there was once a valid business reason for not knowing a lot about
your customers, how they behaved, when they acted, and when they
hesitated, when and where they veered off course.

And maybe shallow worked when you could manufacture a car in just one
color, build houses based on variations of three simple floor plans, or take

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fifteen years to develop and patent a blockbuster drug. But today, advances
in technology have unleashed capacity to offer infinite choices. Suddenly,
summaries are time sucks. To think in bullet points is pointless. And ignorance
is no longer bliss. Its death.

But when you go deep, it gets quiet. Starved of daylight, opportunities loom.
Large, sustainably large margins abound. The deeper you go, the less likely
it is you will run into anyone. Very few bother, because working at depth is
intimidating and involves effort and risk.

Deep has its roots in the ancient words for world. To have depth is to encompass the entirety, to own the whole thing at once and not worry that you will
lose it anytime soon.

Automate
In a recent WSJ article Software is Eating the World, tech pioneer Marc
Andreesen points out that more and more major businesses and industries
are being run on software and delivered as online servicesfrom movies to
agriculture to national defense. Two decades into the rise of the modern
Internet, all of the technology required to transform industries through
software finally works and can be widely delivered at global scale.

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And he doesnt just mean Netflix and Amazon. He points to Pixar, Google,
LinedkIn, Zynga, Spotify, Skype even Fed Ex which he describes as a software network that happens to have trucks, planes and distribution hubs
attached. Everyone from Exxon to WalMart is using software to power
logistics and distribution capabilities, crushing competition.

All good news, because software means automation. Which means efficiency,
which means savings. But what it really means is that you now can capture
data, so you have the ability to go deep.

Betting on Data
Googles Eric Schmidt maintains that we now create in two days as much
information as all humanity did from the beginning of recorded history
until 2003.

The more data, the more analytics matter. Just look at these investments in
business intelligence (BI) software companies, all high-profile buy not build
acquisitions: Business Objects by SAP for $6.8 billion, Hyperion by Oracle for
$3.3 billion, and Cognos by IBM.

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The McKinsey Global Institute in a 2011 report Big Data: The next frontier
for innovation, competition, and productivity notes that large data sets
so-called big datawill become a key basis of competition, underpinning new
waves of productivity growth, innovation, and consumer surplus. Leaders in
every sector will have to grapple with the implications of big data, not just a
few data-oriented managers. The increasing volume and detail of information
captured by enterprises, the rise of multimedia, social media, and the Internet
of Things will fuel exponential growth in data for the foreseeable future.

Despite these based-on-bits pronouncements, the challenge of learning and

profiting from enterprise information remains elusive.

John Jordan is a clinical professor at Penn State University, where he teaches

IT Strategy. Jordan writes an insightful column for Forbes on data topics and
his gap analysis actually bodes well for anyone building a business around
analytics:

Despite all the money spent on ERP, on data warehousing and on real-time
systems, most managers still cannot fully trust their data. Multiple spreadsheets document the same phenomena through different organizational
lenses, data quality in enterprise systems rarely inspires confidence.

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Related to this lack of confidence, risk awareness is on the rise. Whether

in product provenance (Mattel), recall management (Toyota, Safeway or CVS),
exposure to natural disasters (Allstate, Chubb), credit and default risk (anyone), malpractice (any hospital), counterparty risk (Goldman Sachs), disaster
management or fraud (Enron, Satyam, Societe General), events of the past
decade have sensitized executives and managers to the need for rigorous,
data-driven monitoring of complex situations.

The McKinsey study confirms and frames the case for the discipline of deep
data, transforming the business beyond the visibility, transparency, and
accuracy of information toward the creation of rich content and product
refinement: Big data allows ever-narrower segmentation of customers and
therefore much more precisely tailored products or services. It can be used to
improve the development of the next generation of products and services.
manufacturers are using data obtained from sensors embedded in products
to create innovative after-sales service offerings such as proactive maintenance, preventive measures that take place before a failure occurs or is
even noticed.

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The New Value Chain

Forget Porters old value chain. Business is no longer about managing
transactions.

If you have the right data, and the ability to crunch it at high-speed, then
you have analytics that give you real time insight. And using these insights
to make significant product improvement is the holy grail. The product gets
better based on what people want. And that improved product gets another
round of customer response and further refinement. It just gets better
and better.

By the way, now youve really learned about your brand value and promise.
Because it isnt your senior team sitting in a boardroom deciding what the
brand was. Its your customers.

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Old value chain

New
value
chain

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Shallow vs. Deep

Still using a wooden suggestion box in the company break room? We
thought not. An early innovation tool, that is ultimately subjective, narrow,
disconnected from workflow, static and manual in how it collects and analyzes
data. Yet imagine what your business could become if you could pull ideas
from behavior in real-time, across every function within the entire organization, as if you were stuffing that wooden box every second with thousands
of data points.

Here is a short, provocative list of similarly shallow innovation trends that fall
short of meaningful information. We propose these be replaced by online,
automated monitoring of customer browser and purchasing behaviors:

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Shallow

Flaws

Deep Flaw

Social Media

Subjective, Manual

Represents vocal minority

Crowdsourcing

Disconnected, Subjective

Reduces quality and brand

Focus Groups

Narrow, Manual Process

Arbitrary groupings

Online Survey

Narrow, Manual Process

Tracks opinion not behavior

Idea Hubs

Subjective, Static

Management ranking subjective

Inventor Portals

Subjective, Manual

Disconnected from consumers

Chat Screen

Manual , Intrusive

Creates artificial behavior

Spreadsheet

Disconnected, Manual

Subjective

Deep data is discriminating, critical not only of analog data gathering tools
like the break room suggestion box but also online technologies which can be
equally flawed. Having a digital presence is no guarantee of business value.
Take blog content and that long (or short) tail beneath a blog known as the
comment reel. As Josh Constine recently observed on a TechCrunch blog,
Commenting on blogs is broken. In that same post, Constine cites those who
propose turning off comment reel, because they are full of trolls, bile, and
spam links; theres no way for popular sites to keep up with comments on old

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posts; comment reels give random people too much visibility and distract from
primary content.

Hiten Shah, in a Forbes innovation issue in August 2011, goes even further in
his assessment of popular social media: This is a new medium and its always
hard to measure a new medium.Facebook is giving you data relevant to the
Facebook model. The page-view game is done with anyway. We want to track
people, not page views.

Micah Sifry is co-founder of the Personal Democracy Forum, a website

that examines how technology is changing politics. As the 2012 Presidential
Primary season heats up, Sifrys putting social media on the back burner, if not
off the stove altogether: This isnt to say that campaigns should ignore social
media, or that efforts by voters to influence the election by organizing online
are pointless. But just because you can count something and chart it doesnt
mean youve proven anything.

Sifry suggests that a high numbers of retweets are just an indication of

notoriety or celebrity. Saying simple, stupid things that lots of people want
to tell their peers about can get you tons of followers and retweets. But it
doesnt mean anything definitive about grass-roots support.

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Newt Gingrich has 1.4 million followers on Twitter, which might lead you to
believe he deserved Republican front-runner status at the end of 2011. Yet
Gingrich finished in 4th place in the January 2012 Iowa Caucuses. Where was
Twitter? Half of those Gingrich accounts arent in the United States, and half
of all Twitter accounts arent even active.

Given all the noise, distraction and flaws of social media, companies will be
better served to follow the New Value Chain: gather deep customer data,
invest in technology to provide high speed analytics, make real time decisions
for product improvement. This is objective versus subjective. It follows not
what customers say, but what they do.

The Business of Browsing

While noise has increased dramatically around social media, the actual
consumption of content and advertising has shifted to mobile. IDC shows U.S.
mobile advertising revenue growing from $877 million in 2010 to $2.1 billion in
2011, then doubling to $4.1 billion in 2012, as 65% of Americans have smart
phones and mobile devices have gone mainstream.

Informa Telecoms & Media projects a ten-fold increase in global mobile advertising, from $2.3 billion in 2009 to $24.1 billion in 2015. The Asia Pacific region

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will account for the largest share by 2015, at 30.9 percent, driven by strong
growth from China and India. North America will account for 18 percent of
the market in 2015, with Latin America at 6.4 percent and Western Europe
8.6 percent.

The mobile advertising industry has now moved beyond the trial and
experimental phase and many advertisers and brands are now spending
significant sums on running mobile campaigns each month, according to
Informa consultant Shailendra Pandey.

Those projections are predicated on mobile content that is both accessible

and highly-relevant.

Similar to traditional publishing, users expect, and are engaged by, high quality
content and spend more time inside applications. This translates into higher
advertising rates for premium space like this. Devices are mobile and more
frequently accessible, and consumers expect the same rich experience
whether online or offline.

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The Biology of Browsing

How a reader browses (by device choice, by keyword search, and navigating
inside the content) correlates directly to the continuum of the readers interests, intent and investment, and ultimately to economic value for producers of
content. Well call this the Curiosity to Cash process, one which our brains are
wired to reinforce.

If the reader is rewarded, a pattern and perpetuation of behavior is established. The reader is essentially saying to the content or ad provider, if you
interest and delight me, Ill be spending more time here more often, which
means I will range wider and deeper within your domain, and once I trust your
content I might even purchase something at a later date. Venturing into the
unknown is slow and incremental, yet that is the surest and most stable way
to build loyalty and profitable customers. Familiarity breeds, well, repeatable
recurring revenue.

The field of neurobiology supports this on a simple level: neurons that fire
together, wire together, creating highly-efficient neural pathways. This is
powerful. Our brain activity (behind browsing, reading and purchasing) is biologically predisposed to create efficient, high speed and repeatable behaviors;
creatures of habit, as we say. Our out of the box technology as vertebrates

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is survival-mechanism enablement of sophisticated attention and retention.

The brain is in the business of transforming rarely-used and disparate footpaths into frequently-driven autobahns that self-repair and connect to one
another.

The companies and organizations that design content and develop access
with this innate hard-wiring in mind will be the most profitable and sustainable
in the coming age of mobile.

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Deep: How it Works in Media

Think of how deep data can transform a business ecosystem.
Take media. Please. Seriously, we all know traditional media companies are
in big trouble.

Yet, there is good news for media, even for the most traditional of all media
newspapers. A recent McKinsey report showed that in the last four years,
news consumption has increased from 60 to 72 minutes a day. And the
growth is in readers under 35, the most coveted advertising demographic.
One catch: they are reading digitally. Smartphones. Tablets. And laptops (!)

So print just needs to move to digital, right?

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Well, they tried that. Remember the frantic rush to the iPad? Now those same
publishers are stepping back and reconsidering. Results, even for initial successes like Wired, have been generally disappointing. Why?

Going to the tablet means completely rethinking print content. Simply

dumping your magazine content on the tablet is no different than when you
dumped it on the web. It didnt work then and its not working now.

The truth is that modern readers want highly targeted content, customized
to their devices. Their New York Times needs to look and act differently on
their phone than it does on their tablet or on the web site.

The publishing world is becoming more complex by the day as content platforms proliferate into an ever wider array of mobile, tablet, and online devices.
At the same time, publishers must create, produce, and distribute content
across these channels using fewer and fewer resources.

And then the Cloud appeared. Now agile publishers can publish to any
channelincluding the iPad, web, social media, and even printfrom a single
consolidated platform that can be accessed anywhere, anytime, from any
connected device. These are feature-rich environments incorporate tools like
integrated search and text mining dashboards, an advanced creation workflow

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engine, and the ability to mine and automate the production of new published
products based upon demographic or individual preference.

Take Trinity Mirror in the U.K., publisher of five national newspapers, 240
regional publications and 500 digital products. After seeing enormous cost
savings through implementing an end-to-end cloud platform, the publishing
group recently announced that it was (pause) hiring 20 digital editors. Richard
Wallace, editor of the Daily Mirror, said: Our future is a multimedia one and we
need to transform ourselves into an agile media business, ready to grasp the
opportunities and challenges of the multimedia world we now inhabit.

Across the industry we are seeing Digital First as the key to success.
The Atlantic magazine, for instance, seems an unlikely prospect for digital
prowess. Yet their digital ad revenue is up 209% in the last two years. But
most impressive is the shifting spend: digital has grown from 16% of total
ad revenue in 2008 to 45% this year. Why? Editor James Bennet says our
front-line sales team has changed from 10% coming from outside a traditional
print background to 30% coming from outside a traditional print background.

So finally, media can think Digital First. And Digital First means they can focus
on something much more profound. You guessed it: data.

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The Financial Times is doing just that. In a recent restructuring, the paper
established a team of 11 non-newspaper people focused solely on analytics.

The team combines the disciplines of web and customer analytics across the
business:
t In editorial, they identify what is popular with what audience and why.
t In marketing, they determine how to sell online subscriptions to access
content, attract new audiences, and effectively spend budgets.
t In IT, they identify site problems and analyze capacity planning.
t In advertising, they profile who their readers are, what interests them
and how to give the most accurate portrait of the reader to advertisers

Maybe most importantly, the data is being used to shape the business models.
As Tom Betts, Head of Web Analytics, sees the team growing and focusing on
two areas:

First is Predictive web analytics. Predictive analytics is already mature in

many fields, but not yet in web analytics. Using web data to predict what a
user might be interested in or what they might buy next is still quite pioneering in our industry. But not for much longer.

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The second is multichannel analytics. Were seeing a huge and rapid shift in
consumption from desktop to mobile. The development of apps, where the
user experience is native to the device, poses challenges but exciting opportunities for analytics. All of a sudden, you are measuring more than the web.

How Deep Data Helps Media

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Every Company is a Media Company

When software eats the world, publishers face a print/digital divide that
is not all that different from what any enterprise is encountering, or will soon
encounter. The truth is, every company creates mass volumes of content,
from marketing collateral to operational manuals to HR policies.

Tom Foremskis site, Every Company is a Media Company, says every company
publishes to its customers, its staff, its neighbors, its communities. It doesnt
matter if a company makes diapers or steel girders, it must also be a media
company and know how to use all the media technologies at its disposal. In
addition to the traditional means of publishing, such as white papers, news
releases, etc, companies must now also master the social media technologies that allow anyone, their customers, their competitors, to publish also.

Jon Iwata, Senior VP Communications and Marketing at IBM, believes that all
companies will become publishers:

We will go direct because we can. The tools of information development are

available to us as well. At IBM we are investing heavily in becoming a publisher,
but a very particular sense of publishing. Pumping out information only just
adds to the noise and compounds the challenge of being heard. Value will

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come from providing perspective and useful information for making a contribution to our audiences knowledge.

He goes on to consider Apple: They dont just advertise, they teach. They
dont just sell, they create learning experiences in their stores. They want you
to learn everything the product can do because then you, with great enthusiasm, will teach others. This is why visits to the Apple store Genius Bar are
free. They dont pitch you, they teach you. And, in the process, they recruit
both new and loyal customers, advocates, and evangelists. Apple has become
publisher, teacher, community maker.

He also points to a tire company, who 100 years ago, being limited in sales by
how much people drove, developed a series of guides for hotels, rest, destinations. Ways for people to enhance their lives. And to drive more. Today, the
Michelin guides are a stronger brand than the tires.

So if this is true, then the lessons of how media companies communicate

and use data to refine its products may be instructive across all industries.
Lets take a look.

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Deep: How it Works in Other Industries

As you think through the mostly cerebral and strategic job of digital innovation and business transformation, its easy to disconnect that from the individuals who work full-time, front-line jobs driving a skiploader, running a bank
teller window or making sure that industrial boilers are efficiently heating brick
and mortar facilities where we run our digital enterprises. Each job function is
marked by specific skills and skill levels, procedures and policies, exceptions
and exemptions, and of course, large amounts of data driving each role, and
data driven (potentially) from each action and transaction.

As you future-proof your company, your weatherproofed home with thermal

insulation is holding up and the pipes arent freezing because a confederation
of interested parties designed and manufactured, distributed and installed
those R-19 rolls (R-10 for the attic stairs) to a dynamic set of scientific,
economic and safety specifications. Data and content opportunities abound
along the information chain of those who conceive, manufacture, transport
and stock whatever it is youre consuming, according to standards and a rules
engine governed by the larger marketplace and industry dynamics.

Zooming in, the amount of data driven by a single product line can be staggering. If its your product, you can, and should, delve into the SKU of information

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and inter-connections, indefinitely. Consider the singularities of a Sharpie (39

Fine Point colors, yet only pink and yellow are sold in single packs), a Leatherman Crunch (15 tools in your hand at once; is 16 too much to handle?), or
Baskin-Robbins (which gives a 31% discount on ice cream, only on the 31st of
the month, and only in Malaysia).

Now, zoom out. Billions of us punch some form of a clock for any one of the
millions of global operating businesses, each going concern featuring unique
requirements and data metrics. The World Federation of Exchanges tracks
roughly 47,000 public-stock companies across 54 stock exchanges. The US
has approximately 27 million businesses, before you try to account for the
under-the-table, underground economy.

Amazingly, there is consistency across language and geographical boundary

and company size because of standard job functions and a smaller number of
core industry categories. The North American Industrial Classification System
(NAICS) codes, which identify a firms primary business activity, covers 1,170
industries (including 358 new industries, 250 of which are services producing industries.) Even that number is intimidating, so most global organizations
pare it down to 25 core industry classifications.

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Consumer products, media, transportation and financial services, those sectors where we have daily interaction are easier to relate to in terms of content
and data requirements and where a deep approach can be meaningful, even
transformative:

How about a digital news feed delivered to my device at 11:55am, when Im

most likely to want to read a sports section (devoted mostly to cricket and
tennis) as a mental diversion during lunch? If you do this, I will more than likely
pay more attention to the ads alongside the stories.

And wouldnt we be more open to other offers from a manufacturer, if that offthe-shelf $39.99 blender did away with the majority of those 12 pulse options,
including four different speeds just for smoothies?

What about a checking account that sent me an overdraft warning, at the

same time as the bank? I might actually pay attention to other content-rich
emails the bank wants to share with me.

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Retail Innovation
As Harvard Business Review noted in a Spotlight: Reinventing Retail in
December, 2011, leading-edge companies such as PetSmart and the UK
pharmacy chain Boots have begun applying science to the task: They are
testing digital and physical innovations with clinical-trial-style methodology,
using sophisticated software to create control groups and eliminate random
variation and other noise. All of this is costly, but its hard to see how retailers
can avoid doing more of it.

From a deep data perspective, this will only take retailers (or any company
reinventing itself) so far, if not backwards in the innovation cycle. Even though
control group selection takes advantage of software automation processes,
the management of these groups and the documentation of data will be
manual, time-delayed, errant and ultimately subjective.

The very concept of a creating a control group, is shallow and limited, dangerously deceptive to the brand, and more akin to analog-level marketing tools
like focus groups, online surveys and Twitter/Facebook monitoring. There
might even emerge a retail placebo effect, where these segmented consumers behave differently as a function of their control group participation, to
please or placate their scientific handlers.

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Why not analyze rich content and education developed for the entire spectrum of pet and pharmacy consumers, to drive interaction, data tracking
and business insight? Why not use sophisticated software to un-group the
process, open participation as widely as possible and create additional depth
of information collected, and conduct the science in real-time?

Thankfully, that same issue of Harvard Business Review highlighted emerging Next Best Offer (NBO) strategies: Using increasingly granular data, from
detailed demographics and psychographics to consumers clickstreams on the
web, businesses are starting to create highly customized offers that steer
consumers to the right merchandise or services at the right moment, at the
right price, and in the right channel.

Emphasis on starting to - NBOs are still in early stages, but essentially

on the right track. Theyre built on the classic know-your-customer, knowyour-offering and know-the-purchasing-context intelligence that rests squarely
within deep data frameworks.

The idea of anticipating behavior and tailoring are relevant offering based on
the data is solid.

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Failure points will arise and adoption will drop whenever these NBO processes
are disconnected from the entire range of content platforms that encompass
mobile, tablet, and online devices. Have you comprehensively collected all the
demographic data for each customer from all possible touch points?

Conversely, is the offer distributed to every possible channel and device facing
the customer? Is the offer content-rich and worth the attention and retention
of each consumer?

Deep Even Works in Mining

Moving away from recognized industry sectors mining familiar, daily-life
data to make life better, what about something more obscure, like mining, the
open pit and underground mine business?

What is main factor transforming the mining industry? China, and that countrys demand for metals.

As PricewaterhouseCoopers notes, These are interesting times for the mining industry, with ever increasing scrutiny from governments, customers and
other stakeholders. Growing demand for its products, driven by emerging markets, highlights that supply will be the most significant challenge it will face.

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There are many wild cards that this capital- and equipment-intensive must
address at both strategic and tactical levels: emerging market miners are
outperforming traditional players; wild fluctuations in commodity prices that
boost or drag down production gains; development projects have become
more complex and are typically in more remote, unfamiliar territory.

As IT advanced from mainframes to the web to cloud computing, the mining

industry stands ready to absorb state-of-art technology into operations: estimating ore reserves, bore hole monitoring, pit optimization, mine and haul road
design, as well as grade control with blending in order to achieve consistency in
the feed to the process plant. All these issues need to be communicated and
there is huge potential for analytical tools within the vertical.

More sophisticated data is needed to support geological models, to accurately

represent not only the grade, tonnage and grade distribution of the mineral
deposit, but also its boundary and the internal structure based on which the
engineers can plan for future methods of mining.

Now blend in elements such as environmental compliance, worker security

and safety (both in and out of the pit), as well as synchronized global position
monitoring and maintenance for fleets, shovels, dozers, and drills. More data,
and better communication needed.

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How will you use data derived from metrics like shovel hang time to maximize the value in that seam, while protecting your business from commodity
fluctuations and currency exposure? How will you keep your fleets running,
your employees safe, healthy and informed? How can you reduce blinds spots
in the pit and keep drill bits properly positioned? Make revenue explosive, yet
reduce the number of errant blasts?

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How Deep Data Helps Life Sciences

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How Deep Data Helps Automotive

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Dashboard of Dashboards

Analytics is a function, a discipline and in the world of deep data it can be a

business all on its own, and subject to the same cycle of deep data, retrieval,
insight and refinement. While most examples in this book are external in
nature, to collect, monitor and package consumer behavior within content,
you can easily import that methodology to apply to hundreds or thousands
of employees within the enterprise who interact with internal content.

Lets say youre the CEO of a large, publicly-traded industrial pump business.
Youve made several acquisitions of industrial pump businesses and technologies, and youve vertically integrated and invested in manufacturing and distribution, not just branding, marketing and sales. To refine your product means
creating the best possible industrial pump at profitable margin, correct?

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In the world of Deep, one might argue that as CEO, your company is the product. And when the enterprise needs refinement, you rely on an executive suite
run by a CFO, CIO, CMO and COO. If youre large enough, perhaps you have in
place C-level executives for strategy, technology and customer service. All
of them marching to the drumbeat of the quarterly forecast and some form
of business plan, and as part of your transformative powers as Chief, youve
requested that each one manage from a simple yet sophisticated dashboard
tracking key metrics.

Employees, divisions, units, product segments, are all aligned in data initiatives
and a certified environment of continuous improvement. Your organization is
recognized widely for its data prowess and with a well-funded war chest for
executive compensation and a talent for communicating and motivating, youre
able to retain your top executives. What more can you do with your data?

Lets start by enlarging our concept of a dashboard. Rather than the culmination and simplification of data, dashboards are sources content also. Each
senior executive will interact with his or her dashboard in unique ways, with
unique frequency, and quite possibly, they will gravitate to certain sections of
the dashboard and downplay (or ignore) others.

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Perhaps its time for a dashboard of dashboards, to understand what everyone

considers important, not by asking them during a meeting, or during a walk
during an off-site retreat, or other offline methods of communication.

What if your CEO dashboard not only told you about trends relating to your
company and industry, but also informed you that all your senior executives
are consistently working in the revenue and margin sections of their dashboards, even though your board of directors has repeatedly directed you to
focus the company on growing market share. Youre compensating your
executives with stock and bonuses for growing market share, but they remain
focused on harvest behaviors. You can see it!

As CEO, you can effectively and quickly pump up the volume in your pump
business by de-emphasizing revenue and margins, converting those compilation sections of the C-suite dashboards to singular stats (to provide a comfort
level). Then, re-design dynamically each dashboard to highlight, emphasize,
and give greater screen space and depth to the priority market share metrics,
in the context of that executives role.

Your executives might not notice the new format, but your board of directors
will. The shift in behavior and recalibrated focus should make itself evident in
that institutional dashboard known as the quarterly shareholder meeting.

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SCOTT KILLOH

Elastic Company Creation

Technology has radically changed what is possible when creating a new
global business. Going from idea to company can happen in a fraction of the
time possible just 2 years ago. The reason is the availability of two main
technological breakthroughs: 1) Consolidation of thousands of web services
functions into pre-configured, next generation ERP software platforms and
2) Mission-critical cloud computing environments that support these platforms. Together, these allow companies to go from an idea on a napkin to a
mature global business footprint in days.

Companies like Amazon and Google built ecosystems by plying together

thousands of functions in a decade long journey to create their own
proprietary Web Services ERP platforms. They literally spent 10 years and
billions of dollars creating these environments.

All of this will change dramatically over the next few years. Breakthrough
technology will change how companies perceive both technology and
business. Instead of trying to build businesses at the level of being technology
integrators, there will be pre-configured Idea Factories combining massive
scale web services ERP platforms with mission critical cloud computing
environments.

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SCOTT KILLOH

These Idea Factories will scale new businesses at near zero cost by
leveraging internet scale cost models. Every innovation will be shared globally
in an instantly accessible environment. Through mass scale single code bases
and shared innovation, these Idea Factories will replace bespoke platforms.
The result will be the evolution of how we think about business and technology. Technology will no longer be the limiting factor. Instead of handling the
creation and management of internal technology factories, this will be purchased as on demand, at a fraction of the cost or time of doing it traditionally.

Even more dramatic, a new startup will be able to leverage the near zero
variable cost per transaction of mature businesses instantly. Without having
to spend any capital up front on virtually any operating functions, new companies will launch at a tiny fraction of what it normally takes. Ideas on napkins to
global technology businesses will happen in days.

The Idea Factory operating model will dramatically change how new companies are funded. Investments at angel level can have a dramatic result. With
less than $1 million, global companies can be funded and proven before significant capital is invested. The ability to try thousands of ideas and prove them
in the market for almost no capital will be the norm by the next decade. The
long process of building out management teams and operations models is
over. The race to launch new ideas will instead be the ultimate investor goal.

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SCOTT KILLOH

One more thing

In this era of massive transactional and interactional social data, youll
begin to see more and more mislabeled, misplaced or misappropriated
data. (Remember the Titanic?) Increasingly, data detection will become a
valuable skill.

This ability to reduce noise and distortion is a rare talent. To screen and filter
data is a critical business discipline, whether that means ignoring fields on a
single report or divesting divisions of a company.

In the end, deep means leveraging your business intellect not merely for
operational efficiency, but for meaningful product refinement, developing rich
content that commands a premium, enriches the customer experience and
creates sustainability for your enterprise.

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SCOTT KILLOH

About Scott Killoh

Scott Killohs entrepreneurial savvy and keen understanding of product
development in the software market led him to founding Mediaspectrum,
providing world-class advertising solutions to companies worldwide.

Previous to Mediaspectrum, Mr. Killoh was the founder of Openpages where he

served as the vice president of engineering and chairman. During his tenure,
he raised $54 million in seed and expansion funding from top tier venture firms
including Goldman Sachs and led Openpages to a market capitalization that
eclipsed $190 million. Openpages has since been acquired by IBM.

Mr. Killoh founded Openpages in 1995 when he co-developed and launched

the Openpages content management system. Mr. Killoh transformed Openpages into an end-to-end enterprise solution that served Fortune 500 customers including Gannett Co., Thomson Financial Media, Knight-Ridder, and the
Tribune Co. During his more than 15 years in the technology industry, his primary
focus has been on product development, support and engineering.

Mr. Killoh holds a B.A. in Finance from the University of Massachusetts at

Amherst.

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SCOTT KILLOH

About Mediaspectrum
Recently Mediaspectrum has teamed with SAP to provide end-to-end
cloud technologies to enable the New Value Chain of deep data, high speed
analytics, real-time insights, and product improvement.

The Mediaspectrum platform provides the inital deep data. As an end-to-end

cloud publishing platform, it streamlines business process inefficiencies
(media clients typically save 50-75% of production costs). And since everything is on a single platform, it also gives the business owner unprecedented
visibility into how their customers are behaving online. This deep data
(collected both on and offline), can be displayed in dashboards in as aggregate
or granular a fashion as is required.

Crunching this kind of deep data used to be painful. But the SAP CO-PA
Accelerator dramatically improves speed and efficiency of working with large
data volumes and allows you to perform real-time profitability reporting,
conduct instant analysis of profitability data at any level of granularity,
basically achieve real-time insights to help make better decisions on the fly.
Decisions that will lead to product improvement, not based on boardroom
opinions or even what customers say but what they do.