analytics, data science

The dialectic of analytics

From Gartner’s report The Life of a Chief Analytics Officer:

Analytics leaders today often serve two masters:

  • “Classic constituents,” with maintenance and development of traditional solutions for business performance measurement, reporting, BI, dashboard enhancements and basic analytics.
  • “Emerging constituents,” with new ideas, prototypes, exploratory programs, and advanced analytics opportunities.

I serve these two masters today in my job as VP, Data Science & Data Products at IQNavigator.

In my capacity as data science lead, we’re exploring innovative data-driven features built on data scientific techniques. In my capacity as data products lead, we are mostly still in the traditional business intelligence space, focusing on reporting and dashboards. Eventually the data products IQN offers will encompass both business intelligence (BI) and machine intelligence (MI) approaches but we have to start with what customers demand, and for now that is BI, not MI. I foresee that eventually MI will entirely eclipse BI but we’re not there yet, at least not in the non-employee labor management space.

I’ve come to believe in the importance of basic reporting and analytics capabilities, and that they should be distributed throughout the organization in self-service fashion. I see these capabilities as mainly playing a role in operational, day-to-day use, not in providing the aha! insights that people are so desperate to find and so sure exists if they only turn the right set of advanced analytic tools and personnel loose on their data.

I also foresee that the data science / machine intelligence space will mainly serve to optimize day to day operations, replacing business intelligence approaches, not surfacing wild organizationally transforming possibilities.

Gartner suggests developing a bimodal capability for managing analytics:

A bimodal capability is the marriage of two distinct, but coherent approaches to creating and delivering business change:

  • Mode 1 is a linear approach to change, emphasizing predictability, accuracy, reliability and stability.
  • Mode 2 is a nonlinear approach that involves learning through iteration, emphasizing agility and speed and, above all, the ability to manage uncertainty.

This applies to more than just analytics, of course. Gartner suggests it for a variety of IT management domains.

What would this look like? IQN already has an approach for product development that is bimodal in nature. We use agile development practices for product development. But we layer on top of it linear, time-based roadmapping as well as Balanced Scorecard departmental management. This is not as clumsy as you might imagine. It is more dialectic than synthetic in how it functions, with conflict occurring between the two approaches that is somehow resolved as we iteratively deliver features out into the marketplace, often on the schedule we promised (though not always).

In my own small world of data science and data products we do something similar, combining agile iterative processes with more linear and traditional project management. We use a Kanban-style process for data science projects but also layer on more waterfall-esque management for capabilities we need to deliver at a certain time to meet roadmap commitments.

I’m not sure I like the word “bimodal” to capture this approach. Maybe I will think of it as “dialectic.”



analytics, data science

Paradigm shift: From BI to MI

I listened to a Gartner webinar Information 2020: Uncertainty Drives Opportunity given by Frank Buytendijk yesterday and it got me thinking about the evolution (/revolution?) from business intelligence (BI) to machine intelligence (MI). I see this happening but not as fast as I’d like, as jaded as I am about BI. Buytendijk gave me some ideas for understanding this transformation.

From his book Dealing with Dilemmas, here’s Buytendijk’s formulation of S curves that show the uptake of new technologies and approaches over time, and how they are then replaced by newer technologies and approaches.

Screen Shot 2015-01-21 at 11.43.46 AM

From the book:

A trend starts hopefully; with a lot of passion, a small group of people pioneer a technology, test a new business model, or bring a new product to market. This is usually followed by a phase of disappointment. The new development turns out to be something less than a miracle. Reality kicks in. At some point, best practices emerge and a phase of evolution follows. Product functionality improves, market adoption grows, and the profitability increases. Then something else is introduced, usually by someone else. … This replacement then goes through the same steps.

This is where I think we are with machine intelligence for enterprise software. We’ve reached the end of the line for business intelligence, the prior generation of analytics. It has plateaued. There’s not much more it can do to impact business outcomes–a topic that deserves its own post.

What instead? What next? Machine intelligence. MI not BI. Let’s let computers do what they do well–dispassionately crunch numbers. And let humans do what they do well–add context and ongoing insight and the flexibility that enterprise reality demands. Then weave these together into enterprise software applications that feature embedded, pervasive advanced analytics that optimize business micro-decisions and micro-actions continuously.

We’re not quite ready for that yet. While B2C data science has advanced, B2B data science has hardly launched, outside of some predictive modeling of leads in CRM and a bit of HR analytics. BI for B2B doesn’t give us the value we need. But MI for B2B has barely reached toddlerhood.

We are, in Buytendijk’s terms, in the “eye of ambiguity,” that space where one paradigm is plateauing but another has not yet proved itself. It’s very difficult at this point to jump from one S curve to the next–see how far apart they are?–because the new paradigm has not proven itself yet.

It’s almost Kuhnian, isn’t it?

Recently one of the newish data scientists in my group said, “it seems like a lot of people don’t believe in this.” This, meaning data science. I agreed with him that it had yet to prove its worth in enterprise software and that many people did not believe it ever would. But it seems clear to me that sometime–in five years? ten years?–machines will help humans run enterprise processes much more efficiently and effectively than we are running them now.

My colleague’s comment reminded me of some points Peter Sheahan of ChangeLabs made at the Colorado Technology Association’s APEX conference last November. He proposed that we don’t have to predict the future in order to capitalize on future trends because people are already talking about what’s coming. Instead, we need to release ourselves from legacy biases and practices. This was echoed by Buytendijk in his webinar: “best practices are the solutions for yesterday’s problems.”

It’s exciting to be in on the acceleration at the front of the S curve but frustrating sometimes too. It’s hard to communicate that data science and the machine intelligence it can generate are not the same as business intelligence and data storytelling. People don’t get it. Then a few do. And a few more.

I look forward to being around when it really catches on.

analytics, big data, data science

Can you toolify away the data scientists?

From GigaOM:

Machine learning startup, whose founders are University of California, Berkeley, astrophysicists, has raised a $2.5 million series A round of of venture capital. The company claims its software, which was built to analyze telescope imagery, can simplify the process of predicting customer behavior.

And from’s website:

Read how one fast growing Internet company turned to Wise to get a Lead Scoring Application, scrapped their plans to hire a Data Scientist and replaced their custom code with an end-to-end Leading scoring Application in a couple of weeks.

Uh oh. Pretty soon no one’s going to hire data scientists!*

[Aside: Editors will still be needed. How about “lead scoring application” instead of “Leading scoring Application?” Heh. Aside to the aside: predictive lead scoring is among the easiest of data science problems currently confronting humans.]

But it’s not that easy to “toolify” data analysis. We need human data scientists for now, because humans are able to:

  • Frame problems
  • Design features
  • Unfool themselves

What we’re talking about here is freestyle data science – humans supported with advanced data science tools. [See: Tyler Cowen on freestyle chess.]

Not just any old humans. Humans who know how to do data science.

Frame problems
Data science projects do not arrive on an analyst’s desk like graduate school data analysis projects, with the question you are supposed to answer given to you. Instead, data scientists work with business experts to identify areas potentially amenable to optimization with data-based approaches. Then the data scientist does the difficult work of turning an intuition about how data might help into a machine learning problem. She formulates decision problems in terms of expected value calculations. She selects machine learning algorithms that may be useful. She figures out what data might be relevant. She gathers it and preps it (see below) and explores it.

Design features
Just as real-world data science projects do not arrive with a neat question and preselected algorithm preformulated, they also do not arrive with variables all prepped and ready. You start with a set of transaction records (or file system full of logs… or text corpus… or image database) and then you think, “O human self, how can I make this mess of numbers and characters and yeses and nos representative of what’s going on in the real world?” You might log-transform or bin currency amounts. You might need to think about time and how to represent changing trends (exponentially weighted moving average?) You might distill your data – mapping countries to regions for example. You might enrich it – gathering firmographics from Dun & Bradstreet.

You also must think about missing values and outliers. Do you ignore them? Impute and replace them? Machines can be given instruction in how to handle these but they may do it crudely, without understanding the problem domain and without being able to investigate why certain values are missing or outlandish.

Unfool themselves
We humans have an uncanny ability to fool ourselves. And in data analysis, it seems easier than ever to do so. We fool ourselves with leakage. We fool ourselves by cross-validating with correlated data. We fool ourselves when we think a just-so story captures truth. We fool ourselves when we think that big data means we can analyze everything and we don’t need to sample.

[Aside: We are always sampling. We sample in time. We sample from confluences of causes. Analyzing all the data that exists doesn’t mean that we have analyzed all the data that a particular data generation mechanism could generate.]

What humans can do is unfool ourselves. Machines cannot do that because they don’t understand the world well enough. How do we do so? By careful thought about the problem domain and questioning of too-good predictive results. With carefully designed observational studies. With carefully designed and executed experiments.

Care: that’s what humans bring to machine learning and machines do not. We care about the problem domain and the question we want to answer. We care about developing meaningful measures of things going on in that domain. We care about ensuring we don’t fool ourselves.

* Even if we can toolify data science and I have no doubt we will move ever towards that, the tool vendors will still need data scientists. I predict continued full employment. But I may be fooling myself. 

analytics, big data, statistics

Data science, Gladwell-style

Does Malcolm Gladwell’s brand of storytelling have any lessons for data scientists? Or is it unscientific pop-sci pablum?

Gladwell specializes in uncovering exciting and surprising regularities about the world — you don’t need to reach a lot of people to spread your ideas (The Tipping Point), your intuition wields more power than you imagined (Blink), and success depends on historical or other accident as much as individual talent (Outliers).

Gladwell’s new book David and Goliath promises to “reshape the way we think of the world around us,” according to the publisher. But Gladwell’s approach makes some empiricists cringe:

[Gladwell] excels at telling just-so stories and cherry-picking science to back them. In “The Tipping Point” (2000), he enthused about a study that showed facial expressions to be such powerful subliminal persuaders that ABC News anchor Peter Jennings made people vote for Ronald Reagan in 1984 just by smiling more when he reported on him than when he reported on his opponent, Walter Mondale. In “Blink” (2005), Mr. Gladwell wrote that a psychologist with a “love lab” could watch married couples interact for just 15 minutes and predict with shocking accuracy whether they would divorce within 15 years. In neither case was there rigorous evidence for such claims. [Christopher Chabris, The Wall Street Journal]

On his blog, Chabris further critiques Gladwell’s approach, defining a hidden rule as “a counterintuitive, causal mechanism behind the workings of the world.” Social scientists like Chabris are all too well aware that to really know what’s happening causally in the world we need replicable experimentation, not cherry-picked studies wrapped up in overblown stories.

Humans love hidden rules. We want to know if there is some counterintuitive practices we should be following, practices that will make our personal and business lives rock.

Data scientists are often called upon to discover hidden rules. Predictive models potentially combine many more variables than our puny minds can handle, often doing so in interesting and unexpected ways. Predictive and other correlational analyses may identify counterintuitive rules that you might not follow if you didn’t have a machine helping you. We learned this from Moneyball. The player stats that baseball cognoscenti thought worked for identifying the best players turned out to be less effective than stats identified by predictive modeling in putting together a winning team.

I am sympathetic to Chabris’ complaints. When I build a predictive model, a natural urge is to deconstruct it and see what it is saying about regularities in our world. What hidden rules did it identify that we didn’t know about?  How can we use those rules to work better? But the best predictive models often don’t tell us accurate or useful things about the world. They just make good predictions about what will happen — if the world keeps behaving like it behaved in the past. Using them to generate hidden, counterintuitive rules feels somehow wrong.

Yet the desire for good stories won’t go away. Neither will the challenges of figuring out causal realities using whatever data we have on hand. We need stories that don’t dispense with science.

How about counterintuitive examples as stone soup?

As those of you who are social scientists surely already know, ideas are like stone soup. Even a bad idea, if it gets you thinking, can move you forward. For example: is that 10,000 hour thing true? I dunno. We’ll see what happens to Steven Levitt’s golfing buddy. (Amazingly enough, Levitt says he’s spent 5000 hours practicing golf. That comes to 5 hours every Saturday . . . for 20 years. That’s a lot of golf! A lot lot lot lot of golf. Steven Levitt really really loves golf.) But, whether or not the 10,000-hour claim really has truth, it certainly gets you thinking about the value of practice. Chris Chabris and others could quite reasonably argue that everyone already knows that practice helps. But there’s something about that 10,000 hour number that sticks in the mind.

When we move from heuristic business rules to predictive models there’s a need to get people thinking with more depth and nuance about how the world works. Telling stories with predictive or other data analytic models can promote that, even if the stories are only qualifiedly true.

If the structure and outputs of a predictive model can be used to get people thinking in more creative and less rigid ways about their actions, I’m in favor. Doesn’t mean I’m going to let go of my belief in the ideal of experimentation or other careful research designs for figuring out what really works, but it does mean maybe there’s some truth to the proposition that data scientists should be storytellers. Finding and communicating hidden rules a la Gladwell can complement careful science.