The Value of Data

There is value to data.  I am commonly called in to a project or program to make sense of the data that they currently have.  This data comes from a variety of sources, sometimes it is good and sometimes it is not that good. But even data that is not so good has value.

Some organizations are very diligent in collecting data, but maybe the data they are collecting is not the right data to make the decision.  On of my recent projects involved the analysis to by a machine. The organization created a report that they hoped would prove that purchasing the machine would decrease the labor necessary to construct buildings.  The report was fraught with obvious issues.

Unfortunately, the organization did not see what was already in front of them because they became focused on proving the labor savings.  The real efficiency came from transporting equipment and materials.  I created a break-even analysis model showing transportation in the form of trucks and compared multiple construction methods.  The break-even analysis showed a real savings and provided information for decision makers to make the decision.

Fortunately for the organization, they had collected the transportation data.  Unfortunately they chose not to analyze the transportation data.

The lesson learned is that organizations need to collect the data that is needed by decision makers.  I think that the secret is in the analysis of that data and not to be focused on the outcome that you think you want.