15 Minutes with Michael Haisten
By Andrew
Park
Austin American-Statesman
Monday, March 6, 2000
As e-commerce and Internet
usage explode, small Internet companies are confronted with a flood of intelligence about their customers that
their offline competitors rarely get. But do they know what to do with it? That's an everyday problem for Michael
Haisten, vice president of Daman Consulting in Austin, which sets up data warehouses and databases for companies
such as DaimlerChrysler AG and The Boeing Co.
Haisten, who also writes a popular online column for DM Review magazine, talked to TechMonday's Andrew Park last
week via e-mail about bringing better data management to the e-commerce world.
Q: How
are the data management challenges facing Internet and e-commerce companies increasing?
A: The value proposition of many dot-com companies is information management. The market is placing enormous valuations
on Internet startups in the belief that they will corner their market. In the traditional economy, cornering the
market meant achieving dominant market share with your products or services. However, the bulk of the dot-com companies
today are providing services that will never justify their lofty valuations. Instead, the market is paying them
for the rich base of consumer information they are gathering. This valuation is based on an implicit promise that
these dot-coms will know what to do with the vast quantity of data they are gathering. Mostly, they don't have
a clue. They have a vision to sell the concept but they lack the data management skills to follow through on the
promise.
Q: Where
is all the data coming from?
A: Everyone is talking about mining clickstream data. Buried in there somewhere are keys to consumer behavior,
or so goes the myth. Analyzing this vast pile of data captivates the interest of the data management profession.
The reality is that for the most part clickstream data documents the aimless wanderings of the average Internet
browser.
The truly valuable data comes from companies who capture intentional interactions. A browser becomes a consumer
when (he or she) acts with intent. This only occurs when you register for information, when you respond to an inquiry,
when you place an order, or other affirmative actions. The goal is to isolate and capture these interactions.
Q: What
can these companies do to better handle and make use of that data?
A: First, they must acknowledge that they are fundamentally an information management company and be prepared to
make the serious investments required to succeed. Second, they need to modify their Web sites or tools to intelligently
capture the refined data, the intentional interactions -- rather than rely on raw clickstream data. Third, they
need to attract talent that understands the broad business model and the methods of closed-loop analysis. Finally,
you must commit to building a business process around the analytic engine that will sustain growth.
Copyright 2000 Austin American-Statesman
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