Tuesday, December 06, 2005

Overcome the Humpty Dumpty Effect to Maximize Profits

Overcome the Humpty Dumpty Effect to Maximize Profits: "Big companies have economies of scale but they suffer diseconomies of intelligence. They lose informational coherency as they functionalize and divide authority. Data is housed in functional silos and details are aggregated from bottom to top. One department doesn't easily see the effect it has on others, and higher executives see less than lower ones - the who and what is driving profit and growth. Turning sensory data into intelligence is like putting the famous 'Humpty' back together again: tough, slow, imprecise and maybe impossible."

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