Pareto and Software !

 Vilfredo Pareto is one of my all time hero’s.  His famous 80/20 rule has on numerous occasions saved me a lot of time and effort.  It is actually quite incredible how often this simple rule that 80% of effects come from 20% of the causes shapes our thinking and our actions. 

It is equally incredible how often we ignore this powerful theory and continue to hope that the results will be different if we only keep throwing resources at a problem.  The reason I wanted to invoke the memory of Pareto and his famous principle was to explore its application towards the benefits we get from software solutions.

Now I am a firm believer in the benefits of software and how it can and does improve our lives, our businesses and our global economy.  But here is the Right Question:  At what point do additional improvements or added functionality in a software product make little or no difference in enabling a user to get his/her job done.

Let’s take MS Excel as an example.  I would consider myself a moderately sophisticated user of Excel.  I have been using Excel for many years especially during my time as a investment banker.   Excel was first released in the mid- 1980’s so it has been around for over 25 years.  There have been significant improvements in Excel since those early days in user experience, functionality, integration with other programs etc.

But here is the issue. I cannot quantify this but I am pretty sure that in my best Excel moments I do not use more than 10-15% of Excel’s vast capabilities.  Yes there are probably some people who use maybe 30-40% but it is more likely that the vast majority use only a small fraction of its formidable capability.

Now let’s look at an example from the world of enterprise software – in particular CRM (Customer Relationship Management software).  Now the only goal of CRM is to drive sales in a cost effective manner.   There should be no other objective for deploying CRM software.  If your company does not have CRM software you can certainly benefit from CRM software at the appropriate stage of scale (no a two person company does not need CRM they just need a piece of paper and a pencil !).  But similar to my example of Excel, at what point do you already get the 80% benefits from CRM software ? Is it at the first purchase, is it on release no. 4,  or do you ever get there ? 

I don’t know the answer and many will rightly argue that “it depends”.  This is always a difficult argument to win because it is a powerful argument – especially when you don’t have the courage to make a decision.  But as an executive or as a technology professional we are paid to make decisions not live in a land of “it depends economics”. 

So here is my assertion.  The right software can play a critical role in driving growth and managing costs for any business – here I have no doubts.  However, I would also argue that it is more important to have a broader and integrated technology footprint than to go deep (read deploying new versions) in any specific functional category.  So, better to have an integrated suite (eg. CRM, financials, supply chain, procurement, HR, mobile workforce etc.) than to buy the version 4.0 of any specific product.

If Pareto is right – and he almost always is – we probably use only 20% of any given software application capability to generate 80% value created. Interesting thought.  

I am sure many will disagree with me and I look forward to the comments and input.

Regards,
Zia.

Advertisements

Open Government – are Data.Gov and Apps.Gov delivering on their promise ?

There is certainly a long list of challenges facing the Obama administration – the economy, healthcare, and two wars just to name a few.  Regardless of your politics, I think there is one aspect of the Administration’s efforts that require further discussion and exploration.  On his first day in office President Obama signed the Memorandum on Transparency and Open Government.  The memorandum outlined a commitment to “creating an unprecedented level of openness in Government…” It promised to “ensure the public trust and establish a system of transparency, public participation, and collaboration.”  My intent in this post is not to have a broader discussion on the topic of the Administration’s openness, but rather to explore two very specific components of that pledge – the launch of Data.Gov and Apps.Gov

As part of his focus on technology as a key driver of government effectiveness, openness and efficiency President Obama appointed two impressive and accomplished executives to lead this effort:   Vivek Kundra (Federal CIO) and Aneesh Chopra (Federal CTO).  I have had the privilege of meeting and talking to both Vivek and Aneesh and have been impressed with their plans to leverage technology, especially Web 2.0 and Social Media, to provide enhanced services to citizens.  Data.Gov and Apps.Gov are two important components of that effort.

Data.Gov was launched in 2009.  The stated objective of Data.Gov is to” increase public access to high value, machine readable datasets generated by the Executive Branch of the Federal Government.”  Data.Gov provides three kinds of data catalogs.  “Raw” Data Catalog: a catalog with instant view/download of platform-independent, machine readable data (e.g., XML, CSV, KMZ/KML, or shape file formats).  Tools Catalog: a catalog to provide the public with simple, application-driven access to Federal data with hyperlinks. This catalog features widgets, data mining and extraction tools, applications, and other services. Geodata Catalog:  a catalog that includes trusted and authoritative Federal geospatial data. This catalog includes links to download the datasets and a metadata page with details on the datasets, as well as links to more detailed Federal Geographic Data Committee (FGDC) metadata information. (source: data.gov faq)

Currently the data set includes 1,078 Raw Data, 484 Tools and 167,394 Geodata records.   A review of the data currently available” by Agency” provides some interesting insight.  The US EPA had 6,151 downloads of data the week prior to Feb 8th, 2010.  The Department of the Interior and the US Treasury came in second and third with 4,352 and 4,079 downloads,  respectively.  The US EPA also had the most raw data sets at 426 while the lowest number of data sets came from the US Consumer Product Safety Commission at zero (yes that is zero – somehow this made me a little nervous !).

The US Government and its many agencies produce massive amounts of data each year.  By providing academics, researchers and companies access to this data we may enable  individual researcher to find a cure for cancer or a college department to discover a weather pattern that can prevent natural disasters.  This is the power of open access to data – for the people, by the people !

Apps.Gov  is a very interesting and potentially powerful initiative.   Essentially this is a private cloud for the US Government.   Managed by the General Services Administration (GSA), Apps.Gov includes Business Apps, Productivity Apps, Social Media Apps and Cloud IT Services. The platform/exchange is similar to other successful private sector application exchanges such as the  SAP EcoHub , the Salesforce AppExchange and of course the  Apple Iphone App Store.

Apps.Gov provides government agencies a single marketplace to buy and use a broad range of applications.  In the Business Apps section for example  HP has 526 solutions listed, Microsoft has 65, VMWare has 716 and Salesforce has 67.  Several other companies have multiple solutions available.  Apps.Gov could have a profound impact on how the US Government buys and consumes software. 

So here is the Right Question:  Have data.gov and apps.gov delivered on their promise of fostering an open, efficient and effective government ?   Are they on the right track and what would you do different ?

I would welcome your views and opinions and especially your stories if you have used data from these sites or have any other experience related to this effort.

Thanks.

Zia.

Photo Credit: Ian-s

%d bloggers like this: