The illogical behavior is finally very logical

Norbert Wiener, who is credited with being the discoverer of cybernetics, called teleological systems to those that have their behaviour regulated by a negative feedback. Negative feedback occurs when some function of the output of a system, process, or mechanism is fed back in a manner that tends to reduce the fluctuations in the output, whether caused by changes in the input or by other disturbances. The first and fundamental revelation in this regard is the provided by Darwin with the theory of natural selection, showing how a blind mechanism can produce order and adaptation. In the case of the

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The objetive and the real objetive

Since companies are systems, and systems are a set of objects interacting together with a common objetive, the most important thing to understand companies is that objetive. The objetive is everything to understand how a company works, because it defines the way all the “objects” in that organization interact in order to reach it. You can have all the parts of a car, just the right combination of location, adjustments and functioning will make that those parts becomes an vehicle that can transport people. So, if the objetive is so important why some companies don’t define it or communicate it

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Top five phrases you hear in the entrepreneurship world and their real meaning

Phrases you hear in the entrepreneur world and their real meaning 1. “We are going to be in break even in three months” means “we are not considering 90% of our costs”. 2. “We are unique because our algorithm…” means “we are unique, ok???, no more comments”. 3. “We have no competition” means “we are doing this because we like it, so we never spent 5 seconds to search on Google”. 4. “Our valuation is…” means “Any seven figure number and it’s yours”. 5. “Our product fits client needs because people like” means “we like…” Not having a data-driven culture

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How to accelerate the flow of money in your company

The idea of Meta Analytics (Beyond Analytics) is showing a new way of understanding business, so we can measure them in a properly way facilitating a decision making process that brings companies closer to their business results. The current method to measure performance is through KPIs or Key performance indicators. KPIs were helping us measure performance for several years and the feeling was always (at least in my case) that they are more useful for measuring the performance of áreas or departments from companies than for measuring the overall performance of the organization. The Meta Analytics view of systems makes

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How converting you Startup into a Corporation and not die trying

In my previous post I wrote about organization structures. One interesting thing about them is that Startups want to become big corporations, but more than 90% of them fail. Big corporations want to have “Entrepreneurial structures” but they normally fails in its implementation. Let’s try to understand this confusing behaviour pattern. One of the organizations structures that we’ve mentioned in the previous post was the “Entrepreneurial Organization” that has a flat and simple structure were everything is relatively unstructured and informal making this type of organization fast, flexible and lean. Probably is the model that most companies want to copy

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The hidden part of the iceberg

Has well as you can’t manage what you don’t measure, you can’t measure what you don’t understand or don’t know. That’s why I was writing in the past posts about systems, then about organisational systems. During last years companies were trying, without really achieving any interesting result, to implement data driven cultures as a way to combat the disorientation generated by the surfeit of information. The failure can be explained by the non-systemic view managers normally has about organisations. They addresses the problem in the same way they converted they companies in Green Companies, by adding an isolated area in

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Composing parts (Variables) of a Company and their impact in business results

In my previous posts I was talking about theories of systems and the “Meta Theory” called General Theory of Systems as a way of simplifying and studying organisations. In this post we will organise the parts of the Organisation Systems in general categories that can be also taken as “Variables” for its future “Flow Analysis”. INPUTS: Data. Money. Work. Technology. Energy. Capital Goods. Equipment. PROCESSING: Production Lines. Assembly lines. Management and skills. Generate interest in purchasing. Increase engagement. OUTPUTS: Products. Services. Results. Sales. Registered user. Dividends. Taxes. Information. Customer satisfaction. Employee satisfaction. CONSTRAINERS: Company internal lobby. User experience management. Change

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The Data Driven culture component for startups

Two years ago I’ve been invited by Lorena Suarez to be part of the mentors that help Wayra’s startups improve their analytics skills. At the beginning I was a little confused since I normally work with big companies that not only have an information caos but in several cases they don’t have a data driven culture, which is normally the biggest problem. When the information began to abound big companies started a chase to get the best scientist/Analysts to solve the problem. Later on they began to notice that the problem was not getting solved and the confusion turned no

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How to make a self explaining reports

The Digital Analytics Association defines Digital Analytics as the measurement, collection, analysis and reporting of internet data for purposes of understanding and optimising digital usage. It’s not a minor thing that analysis and reporting are separated. Analysis and reporting are two really different things. 1. Analysis: Is the process of breaking a complex topic or substance into smaller parts to gain a better understanding of it. The technique has been applied in the study of mathematics and logic since before Aristotle (384–322 B.C.), though analysis as a formal concept is a relatively recent development. The word comes from the Ancient

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Marketing is about people buying intention. Conjoint Analysis 101.

We’ve already talked that companies have one main objetive, earning money. If we add the variable ‘t’ we can split this main objetive in two, present and future earnings. The present earnings is the Company’s current economic result, while the future earnings are determined by the buying intention. On the other hand the above mentioned buying intention it’s the result of several variables that occurs together like: 1. The person have the need or intention to buy something in particular. 2. The company have the product that can satisfy the generic need. 3. The person have the money to buy

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