Posts Tagged ‘new products’

Forgotten IT Skills: How To Ask Questions

Monday, April 6th, 2009

Good IT Departments Know How To Ask Good Questions

Good IT Departments Know How To Ask Good Questions

It’s easy to get caught up in all of the servers, routers, applications, and firewalls that make up a modern IT environment. After a while we tend to start thinking that the path to our next great IT insight must lie somewhere in this jungle of IT “stuff”. And that is where you’d be wrong!

Ranjay Gulati, James Oldroyd, and Phanish Puranam are three researchers who have been studying this problem and they’ve made some interesting discoveries. They’ve come to realize that if IT folks like us want to help our firms uncover ideas for new products or services, then we may have to rediscover the ancient art of asking the right questions.

I will confess to being just as guilty of this as everyone else. In order to be more productive, I try to ask pointed questions that get right to the (what else) point. The researchers are saying that this is exactly the wrong thing to be doing.

What they are saying is that more often than not other parts of the company will have information and data that can help us uncover new products and solutions if only we know how to ask for it. If we re-train ourselves to start asking broad questions, then we will start to get exposed to more types of information.

An example of this comes from the folks at Harrah’s. The IT department was helping out with a project that was designed to find out what hotels were in need of expansion. They asked the question “What is the demand for our hotel rooms?” Note what they didn’t ask: “What is our occupancy rate?” The broad way that the question was asked allowed both the occupancy rate and the number of people unable to book a room because of the hotel being full or because they were unwilling to pay the room rate to be counted. A much different answer!

Getting IT staff to start asking broad questions is not easy. They will be giving up some efficiency, but the rewards can be great.

Do you ask pointed or broad questions? Have you ever been surprised by the answer when  you asked a broad question? How could you get your IT staff to start asking broad questions? Leave me a comment and let me know what you are thinking.

How IT Can Help Uncover New Products

Monday, March 23rd, 2009

IT Departments Have The Data Needed To Uncover New Products

IT Departments Have The Data Needed To Uncover New Products

“Alignment”, “Innovation” – arrgh! Who in the world of IT is not sick of hearing these two words used over and over again? Yes we’d like to be able to help out the rest of the business, but our IT budgets are being slashed left and right. We don’t have either the staff or the budget to launch a big new program to collect whatever data is needed in order to tell the company which direction it should go in. Or do we?

It is in the nature of any IT department to collect data on our customers. We already have disk pack after disk pack of historical data about everyone who ever showed even the slightest interest in one of our company’s offerings let alone how much information we have on our existing customers.

In that data lies the secret to how IT departments can help the rest of the company uncover new products. Ranjay Gulati, James Oldroyd, and Phanish Puranam are three researchers who have been studying this problem and they’ve made some interesting discoveries.

Harrah’s is an owner of several casinos. Their IT department has historically collected reams of data on their customers in order to support targeted direct mail campaigns and attempts to increase customer loyalty.

However, it was not until the IT department took a closer look at the data that they had already captured about their big spenders (“whales” in casino speak) that they realized that they had the answers that they needed in order to redesign their casinos in order to position games where they would get these customers to play even more.

The Royal Bank of Canada faced a problem – its consumer credit division  needed to have more customers. The IT department went back and took a look at the credit card applications that they had rejected in the past. What they discovered is that many of these people had improved their credit scores since being rejected. This gave the bank a great set of potential card holders to go after.

Clearly all IT departments are sitting on more customer data than anyone ever believed. Now we just have to figure out how to make that data work for us. It turns out that there are three principles that provide the core for doing this correctly. We’ll talk about them next time…

Does your IT department store enough information on your customers? Have you ever gone back and tried to put that data to use? Were you successful? Leave me a comment and let me know what you are thinking.