lean information
TRANSCRIPT
LEAN INFORMATION
increasing the value
of your information
what is this about?
if you apply Lean Principles to INFORMATIONyou will
significantly improve the benefits and value of informationand
reduce the cost of producing it
key questionsis your business
making full use of the information at its
disposal?
is the information that you need
available? when you need it?
Does the information have
the desired impact?
what is information?
Click or use Youtube link: http://www.youtube.com/watch?v=tooPnNhPjbs
Information only becomes knowledge in the hands of someone who knows what to do with it.
Peter Drucker, genius, management guru
business information is needs driven
for example:
a Sales Manager may need to understand his
sales performance … and where to go with
new products
information needs may include:
business statistics and analysisosales valuesoproduction oproduct analysis
external analysisomarket conditionsocompetitor analysisoproduct reviewopolitical & economic review
contents of documentsocustomer feedbackoagreements oT & C oproduct detail
social networkingoproduct feedbackocustomer satisfactionocompetitive products
competitive advantage through improving the value of information
Companies will become merely a shadow of their ‘glory days’ or will vanish if they do not find a way to recreate their market success through a steady stream of innovative products and customer – oriented solutions
Miyamoto Misashi – The book of five rings
being better than your competitors at achieving optimum value from information will gain competitive advantage
o information has more value if it improves the overall outcome or result
o information has its optimum value if it produces the desired result
quicker better higher reliability greater impact
but:o many companies fail to get the optimum
outcome from information
o many information systems are deficient
(too much, too little, poor quality, not right)
and so skilled people may fill the gap to optimise
the benefit of your information
insight is the ability to grasp
the key elements of a
complex subject, person
or situation
Data
Informationwhat? who? where? when?
Knowledgehow?
Insight and wisdomwhy?
Understanding
Context independent
maximise insight
It is only with true insight that we find the creative, disruptive solution that changes the
game!
True insight is more than just an aggregation of the
underlying knowledge and
information.
quantifying the benefit
value of information (VOI)
is the amount a decision maker would be willing to pay for information prior to
making that decision wikipedia
o cost to produce information
o wasted efforts and resourceso expense to fix cost versus benefit
o competitive advantage
o service qualityo effective decisionso product superiorityo Satisfied customers
Knowledge has to be improved, challenged, and increased constantly, or it vanishes.
Lean Information thinking
increase the
value of
information for
every user
1. specify the value2. identify the value
stream3. make flow value4. pull from the customer5. strive for perfection
5 lean principles
the user (customer) needs this information
the best information for the need
the information is sourced and flows seamlessly
only produce what is needed
renew insight and knowledge
1. specify the value2. identify the value
stream3. make flow value4. pull from the customer5. strive for perfection
5 lean principles
Lean Principle 1 customer (user) focus
o information forms the mind of the user
o superior benefit of knowing
o action follows insight
key questions:o can customers define the
information they want or need in your business?
o can they find this information?o does every level in the
organisation recognise the information they need and how to apply it?
o how often is the quality and benefit of the information’s usage re-evaluated by the customer?
not knowing is expensive
Lean Principle 2 best information for the action
key characteristics:olinkedovisualisedorelevantotimelyoconsistentoaccurate
did the information have the desired outcome?
o did it result in knowledge and insight?
o ask the user to evaluate the characteristics of the quality!
Lean Principle 3 make information flow
information lifecycleocaptureoprocess ouseostoreodispose
o are all relevant sources used?
o is information flowing through – cost effectively?
o do you have it when you need it?
information: right time? right place? right format?
Lean Principle 4
pull from the customer/useronly produce what is needed
o not used = wasteo under utilised = lost
opportunity
is information pushed by IT or pulled by the user?
o is the production of information and its use synchronised?
o is its destination clear? o what is its purpose?
Lean Principle 5
strive for perfection o customer needs
changes all the timeo sources and flow
changes rapidlyo tools to improve
information is rapidlyo available information is
increasing exponentially
o is information flow constantly improving and refreshed?
o are users continuously challenging the status quo
are systems and tools keeping pace with user demand for deeper and more insight and knowledge?
the key
P1 drive optimum use of information
P2 maximise the outcome through
application of knowledge
systems producing data “just in case”
unrelated data components in many pockets
the status quoFollow the principles
for superior business results
versus
P3 focus on getting the right information in the
right place
P4 respond to changing needs
P5 constantly refresh
not right & to late
the principles versus the status quo
static & tired
systems unresponsive to change
but Lean Information is also about reducing waste
o over-productiono motion o waitingo over/inappropriate
processingo inventoryo transportationo defectso skills
waste in manufacturing
o duplicationo re-entryo waito searcho losso not availableo re-createo not used o irrelevanto wrong
Information wastes
the information cycle can consume huge resources
hardware
software
IT support
Implementation & infrastructure
storage
staff external sources
communication
training
people
what constitutes wasteo wasted effort (doing something unnecessary)
o infrastructure & supply (hardware/software/communication/IT support/implementation) • not utilized• under performing
o knock on effect (one element of waste results in ripple effect throughout organization)
information flow must produce optimum knowledge valueo information flows -
but not necessarily in line with classic processes
o each lifecycle activity affects the cumulative benefit of information
o understanding the end goal improves the beginning of the flow
the converse
poor information flow destroys the potential value of knowledge … … or at least add significant waste and unnecessary cost
re-work
duplication
wait
re-entry
not usedirrelevant
not available
search
wrong
data loss
common information waste traps to reduce
untested assumptions
no insights
knowledge not captured
And knowledge-related traps to limit
bias and misperceptions
Re-capture wait rework errors useless lost
Information cycle
reduce waste
Lean Information reduces waste
Re-capture wait search rework errors useless
RapidLeanInfo™
maximise the benefit of information
and
reduce to cost
with
a systematic approach
Executive sponsorship
Team commit-ment
Commit to lean vision
Set objective for team
Team training to deploy
Enable team to maximise information
value
Maximise value
Identify blockages, implement
best available solutions
Reduce Waste
Identify waste traps,
Reduce waste
Review & repeat
Evaluate result, Do
the same in other areas
Lean Information can add 10 – 20% productivity for the average information worker
Value increase over time
it can be done
o this is not a single event interventiono focus on low hanging fruit
• immediate information benefits• reduce waste traps
o target key hotspots for further investmento continuous improvement (do it again and again)o imbed the culture
