Thoughts on Information Logistics – Part 2

By: George Spafford

March 27, 2007

In the last article we set forth some baseline terminology around the processing of data into information. In this article we will review phases of information processing to better understand various phases of content production and delivery to the consumer.

At a high level, when looking at the information creation process we see that an event occurs and data is generated that is then acquired. Depending on the processes and technology involved the resulting content is then stored and/or processes for later or immediate use. With the needs of the consumer in mind, final processing and distribution takes place with cost and security considerations taken into account. Now let’s delve deeper into the steps.

Acquisition

When an event happens, we try to collect the data. The method of acquisition may range from first hand personal witnessing to remote sensing to the purchase of data from a third party. The method used should be selected based on the requirements of the business taking into consideration location, timeliness, security cost, and quality. All attributes that we will cover below. For readers versed in supply chain management, we need to apply the same thought processes that apply to physical products to information.

Storage

When data is acquired the resulting content must then be stored for later use or even during intermediary processing steps. From a storage perspective we know that normalization has many benefits. By focusing content into a unique authoritative system of record we can reduce storage and content maintenance costs.

Another example is that each time data is unnecessarily stored or handled these are non-value add (NVA) activities which carry associated NVA costs that may seem minute on a per transaction basis but can add up over millions of transactions. Intuitively we know that storing content unnecessarily can result in excessive storage requirements, slower transactions, and so on.

Furthermore we know that we can maximize storage utilization by minimizing the number of stores. Think of it this way, if you have 10 storage systems and each one is 100 GB that is 90% utilized then that means any one storage system has 10GB free so a single contiguous object of 20GB can not be stored. Instead, all things being equal, if these systems were combined into one system then there would be 100GB free and the 20GB object could then be accommodated. We would also see a decrease in overhead costs associated with facilities, staffing, etc. On the other hand, depending on the business model, other costs and risks may increase unacceptably with excessive normalization hence a holistic perspective is needed.

Decisions such as these needs to take into account business continuity, security, retrieval speeds, throughput, etc. The point is that storage has many dimensions that can be considered much the same way as thought processes around physical warehouse facilities are looked at.

Processing and Format

To deliver information the needs of the individual consumer must be understood and met consistently. This is the definition of quality. This raises a bevy of considerations including language, file format, presentation format, and additional processing considerations such as sorting, filtering, and so on.

Processing can range from light initial processing, to heavy analysis to finishing work aimed at delivering the content in a suitable presentation format that meets the needs of the consumer.

One of the key considerations for delivering information is the recognition that only the consumer can say what is information, what is of value, because the experience is unique to each. To maximize the value we must leverage processes and technologies to meet the needs of each consumer.

Distribution: Method, Place and Time

In delivering content to consumers, content providers such as IT must select the correct distribution mechanism to balance costs, speed and security. Methods include traditional physical hardcopy, email, WWW, and hybrids such as multimedia over the Internet delivered via a web browser using plug-in objects.

Content must make it to where the consumer is and in the ideal format for immediate use. If it isn’t at the right place at the right time and in the right form to be optimally consumed then its value is diminished.

In the same manner that there are specialized logistics groups in the physical world, we see content aggregators proliferating in cyberspace. There are very real costs for the content creators to distribute to 1,000 destinations vs. a handful of aggregators who then handle the distribution and perhaps even IP licensing arrangements with the various consumers. This publication industry isn’t lost inside organizations either. Some groups, for example, submit monitoring content to a centralized Incident Management group who then handles further processing and the distribution of alerts to the appropriate stakeholders/

Security

It is imperative that appropriate safeguards be put into place on all content and information in the organization. There must be holistic approach towards the management of risks associated with content and information in all their various forms – not just what is in the computer or produced by the computer. It is critical to understand what exists, what threats there are and then work with management, security and regulatory compliance groups to understand what controls are necessary such as access and encryption controls.

Cost

An important facet of requirements to understand is what can be afforded. The content creator will have a budget and so will the consumer. This includes both accounting and economic costs. To illustrate, the producer might afford $10 for some piece of content to be created and a consumer may be willing to pay $15. Each group will have some form of limits. Whatever is produced and how it is priced must fall within these parameters.

In addition, there may be economic costs associated with how long the content can be processed/reviewed until the lost opportunity costs reach a point that content creation or consumption is abandoned. For example, if it takes 5 minutes to create content on average, what new content is lost or backlogged if someone spends 5 days creating the same content? Similarly, at what point does a consumer simply say, “enough” and abandon the content because no information was identified in the allotted time?

Summary

In closing it’s all about understanding the needs of the consumer and then putting the necessary processes and tools to consistently deliver content that meets those requirements plus having the ability to change as needs change. When done correctly the consumer should find a far higher percentage of information delivered than if his/her requirements were not taken into account. In turn, this increased level of information should result in improved customer satisfaction and productivity.