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Failing Forward

Another live-blogging experience, which will cleaned up some day …

Skip Walters, founder and chief technology officer of Attenex
“Failing Forward: An accidental designer’s view of the journey from ideas to a profitable company”
* on the Informatics Dean’s Advisory Council

Reflection on 40 years of a professional life:
* software engineer and designer … “building rainbows”
* manager, teacher, executive
* organizational designer
* consultant – entrepreneur cycles (about 6-7 years total)
* software product/business designer
* past work: attenex patterns (legal electronic discovery) … Lexant DoHealth … Conenza (corporate alumni community platform, connect and develop) … DEC’s ALL-IN-1 Office authomation … Illinois Institute of Technology (development of knowledge tools of interactive rooms) … Primus knowledge management … Aldus/Adobe (“no experience as a graphic designer”)

Building a high productivity product :
* Pre-Attenex: in 2001, 300GB of data took 200 attorneys 1 year to process ($18M cost, all labor)
* After released (2003): In 2003, 300GB of data took 100 attorneys three weeks … In 2006, 300GB of data took 65 attorneys 2.5 days to review ($2M cost, half labor, half technology)
* Future: In 2010, 300GB of data projected to take 1 attorney less than 1 day ($50K, 90% tech, 10% labor) … Bell South has 22 petabytes (1000 terabytes) of online data, due to the Patriot Act requiring documentation of telecom

Radical Product Development (RPD):
* Steffix book (“Breakthrough”)
* Science Applied Research: What is possible? … Research discovery invention (solitary activity)
* Business design & engineering: what is needed … Innovation, taking an invention all the way to a product (group activity)
* at intersection: Radical research (following an important problem to its root)
* wrapped in identify/develop/change productivity/model
* wrapped in extract value

* Four creative professions (Rich Gold):
– artists
– scientists
(look it up later)

strategic business design process model:
– identify important problem
– understand what is possible
– observe what is needed
– solve root problems (radical research)
– model value to customers
– develop desireable product
– change organizations to increase productivity
– extract value from customer

“Social Thinking, Social Practice”

Macro HCId – Attenex Patterns:
* Slywotzsky (How digital is your business?)
– move from guessing what customers want to knowing their needs
– move from getting information in lag time to getting it in real time
– move from burdening talent with low-value work to gaining high talent leverage ***
* clear productivity metric (document decisions per hour) … increases stay in, decreases leave out … critical in development process
* process: 2-minute video, participatory design workshops, visualizations of observations, storyboard … all to identify and address bottlenecks
* model: estimate current and predicted costs, find margin … for every 300GB of data, $1.3-1.4m
* asking for 10% (negligible) … asking for 10x (get 5x)

Iterations of visualization:
* network … 3D … clustering … different shapes … transparency and minimalism … colors … orientation … metadata organizing clusters … rollover to reveal document information … concept compass (adding “radar circle” to show most salient terms that caused a spine of clusters to form) in Patterns 2.0, 2004 -> mark profession by showing visualization screen and getting feedback on what metaphor they use to describe it (i.e. death star, bloodshot eye) … patterns 3.5 social networks to prioritize review … combined views, timelines
* trying to filter quickly through the data
* law firm changes:
– from single-pass review (touch each document only once) to multi-pass review … 10-15x
– from single location (reviewers, partners in same place) to multiple distributed networked locations
– from associates to contract reviewers … $$$avings
* extract value from customer:
– move to value-based pricing
– move to fixed price model ($s per megabyte)
– from hourly billing by the law firm to $15 per MB for complete review (attenex fee is $1.5 per MB)
– innovation billing: everyone bills that way now (predictability, good margin, acceptable value savings for end-client)
* no medium is content neutral – poster, slides, brochure … and business model (by including extraction of value from customer as part of design, new designs emerge)
* Revenue for Attenex and Partners: in 2001, $0 … in 2006, $120M (savings for clients: over $1B) … by 2009, $500M
– bad news: “that’s how inefficient the lawyers have been”
– good news: it’s a reflection of finding the problem

Micro HCId – Attenuated Search:
* case studies of lawyers wasting time searching ineffectively
* problem: find blobs of text that are sort of like “xxx” without resorting to complex boolean expression
* attenuated search – drop a blog of text on search tool, parse it, and fine tune it or navigate data with slider bar … all words as OR search, to combinations of AND phrases … adjust downward until small number of docs found
* adjust visualization
* got to the point of patenting this device, but … failed the extraction of value ($300/person, one time, is a practical limit) and the organizational change (Attenex would have to become a model) … couldn’t disentangle this code from the proprietary code

Inspiration:
* Russ Ackoff – business and idealized design (hired as a consultant at Digital Equipment) … his gift: “whatever question you asked him, he would ask you a better question back”
* Chris Alexander – design analysis and synthesis … design patterns, nature of order
* Stan Davis – what does the future look like … (1990 – Future Perfect; Art of Business) … business data built on text and numbers, at home we primarily use audio and video … how does this shift as higher tech expectations move into business

By Kevin Makice

A Ph.D student in informatics at Indiana University, Kevin is rich in spirit. He wrestles and reads with his kids, does a hilarious Christian Slater imitation and lights up his wife's days. He thinks deeply about many things, including but not limited to basketball, politics, microblogging, parenting, online communities, complex systems and design theory. He didn't, however, think up this profile.