Monday, November 9, 2009

Thermometers versus thermostats

The difference between the two is critical:
  • A thermometer is a proxy to the temperature in a room. A thermometer will not tell you whether its too hot or too cold, in other words, no value judgments. It will simply tell you the temperature.
  • Thermostats take action based on business rules. If the temperature falls below a certain amount, the thermostat causes the heater to kick in to warm the room. If the temperature rises above a certain amount, the thermostat causes the air conditioner to kick in to cool the room.
In executing your strategy, you need both. Thermostats need a thermometer to be effective. Without a thermostat, a thermometer is useless.

As an example, business analytics and business intelligence reports are no use unless you can tie them to action.

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