Successful Vendor Selection – The Series

A Review of The October Diaries (in 4 Parts)

Part I

The October Diaries is a supernatural drama centred on the interaction of the protagonist, Jon W. Hansen, a distinguished analyst with a 40 year career in tech and, in computing years, an AI RAM Model 5 based on centuries of development. His work becomes increasingly complicated as other models continually challenge his and self-proclaimed AI Experts continually threaten our space from the shadows. The book chronicles the complex relationships as Jon tries to find new ways to preserve the truth and protect …

Oh wait, that’s the plot archetype for the Vampire Diaries. Did I read the right book?

Yes I did. But I just made you think, and that’s one of the primary goals of Jon’s book and one of the key points I have to make.

Every Influencer, Consultant, and Analyst needs to read this book, but 99% won’t learn anything if they don’t think and question everything they read. (And that’s one of the unwritten reasons Jon says you’ll have to read the book two and even three times.) If they don’t come to suspect the truths on their own before Jon exposes most of them in later chapters. If they don’t understand that this is not a guide or manual for success or the answer to all their problems (as there is none) …

It’s a book designed to make you do what we don’t do enough of in the age of AI: think, and, most importantly think in a way that will, in time (may not today, tomorrow, or even next year) allow you to actually use modern AI tools productively and extract value in real time.

Gen-AI efforts are failing across all the board, from large scale corporate projects down to small scale individual efforts to extract useful content for reasons that include:

  • lack of focus
  • lack of verified data & reinforcement training
  • lack of knowledge
  • lack of skill

You see, for success, you need to have

  • focussed domain models
  • deep context
  • deep domain knowledge to know when the output is good, ok, and bad
  • appropriate skills to utilize the models effectively

Jon gets at this with his six skills of conversational fluency, which is his name for the methodology he uses to train the models to do what computers do best (identify patterns, surface them, and draw correlations) while he does the strategic thinking humans do best.

As well as his five common mistakes that are one of the reasons the vast amount of human prompted content generated is AI slop.

But he also goes deeper into what is truly required for long-term success. Which may shock many of you who aren’t from the old-school we are, but, like Billy Idol, you have to deal with the shock to the system it will give you and push forward.

Discuss Part I on LinkedIn

Part II

Every Influencer, Consultant, and Analyst needs to read this book, but not for the reasons they think. It’s because they need to think deeply about AI, and that’s what this book forces them to do. It may be framed as a step by step guide to take you from zero hero, but that’s just to psychologically convince you that this is the guide for you — and if you want to understand AI, it is!

Most people are using AI wrong. More specifically, they are using the A.S.S.H.O.L.E. to sh!t out plagiarized slop that is turning the internet into massive sewer that is likely making Jon Oliver rethink his Facebook is a Toilet rant (from 2018) (because now the entire Internet is a sewer).

While that is one of the few things that LLMs can actually do, that’s NOT what they should do. They might be lying, hallucinating, soulless algorithms that will happily tell you to commit suicide, suppress life saving alarms while you’re locked in a server room on fire, or even ignore your shadow and have the self-driving car run you over, but they have their uses.

While they can’t do 94%/95% of what the firms selling them advertise (or we wouldn’t have 94%/95% failure rates, as per McKinsey and MIT), they can do four things very well, with reasonably high reliability when appropriately trained and deployed, that we can’t. The first two, as I keep promoting, are:

1) large corpus search & summarization
2) natural language processing

The third, as Jon makes clear in this book is

3) deep pattern detection and surfacing

But only if you know how to get the algorithm to do it!

You see, all these systems are trained to deliver direct responses to direct requests. As a result, when you give them a typical direct request in your “carefully calibrated prompt“, they give you what they think you are asking for, and that’s it. But that doesn’t help you, or me, or anyone, especially if they weren’t trained on the right data or it’s not available and the only way they can give you what you want is to make sh!t up.

Sure it might spit out 2997 characters for your Linkedin post 10 times faster while addressing the seven points you wanted, but is that really helping you when you have to read it, edit it, and copy and paste and verify it? That takes time — and even worse, it’s not productive time. If you’re not thinking about the 5 Ws, not only are you not sharing anything valuable, but you’re not advancing your thinking. (Right now, the only edge we have over machines is our ability to think critically and strategically — so what happens if we lose that?)

But if you can learn how to work with the technology, instead of getting bland plagiaristic derivations, you can get it to surface patterns across related bodies of work, document progressions over time, and use that to more quickly validate your instincts and formalize your ideas, allowing you to advance your own abilities while ensuring you can serve your customers faster and better by speeding up research and delivery efforts by multiplicative factors.

Discuss Part II on LinkedIn

Part III

Today we continue with our review of the supernatural drama that chronicles the interaction of the protagonist, Jon W. Hansen, and the RAM Model 5 that we’re sure you’ll find more thrilling than the pages of the Vampire Diaries we thought we were reviewing (due to the similarities in plot archetypes). You might not have the love triangle, but I’m sure the dollar signs will be more than enough to get your attention. (What dollar signs? Well, you’ll have to read it.)

In part one we said that you need to read the book because it will make you think (if you’re reading it right).

In part two we said you need to read the book because it helps you understand the power of LLMs is not its ability to create watered down plagiarized slop 10 times faster than the drunken plagiarist intern ever could but uncover patterns that you might never uncover on your own due to lack of time.

Today we’re giving you a third reason — and that reason is that it helps you understand why you are invaluable in the age of AI. While it has been true since the introduction of computers that monkeys could do all back office jobs if they knew what buttons to push, the reality is that AI, which should be called Artificial Idiocy, still doesn’t know what buttons to push, it’s just able, in many situations, to compute what button to push with high probability. But it DOES NOT know. Only YOU know! (You see, what AI really stands for is Algorithmic Improvement, as it is the label that is consistently applied to any algorithm that is an advancement over a previous algorithm, and that has nothing to do with intelligence.)

Now, it does mean that if your job is simply tactical data processing then you’re out of work, and it does mean some of your peers who aren’t as good and efficient as you are also out of work since the tech will make those who know how to use it up to 10 times as efficient at some tasks, but if you’re a skilled expert, then you are more desperately needed than ever because, as per our last post, only you will be able to detect the very convincing inaccuracies, lies, and hallucinations it returns.

But understanding is not enough, you need to be able to explain it, and when pressed, demonstrate it. That is what the book, after a few reads, will help you do. Use AI in a way that demonstrates you are what’s needed to make AI effective and make sure the organization isn’t part of the 95% failure statistic.

Part IV

In Part I of our review of Jon W. Hansen’s October Diaries, his take on the modern thriller, I told every Analyst, Consultant, and Influencer (ACI) that they need to read it because it will force them to finally think — deep — about AI.

In Part II of our review I told the ACI they need to read it because it will help them use LLMs properly and surface patterns they might not ever find on their own due to time constraints.

In Part III of our review I told the ACI that it will help them defend their positions in the “Age of AI” purge that is coming. (Since it’s a new excuse to fire people so the organizational shareholders can [temporarily] get richer!)

Now, in Part IV, I tell most of the ACI that I’m sorry. You shouldn’t read it. You want a quick fix and an easy solution to your relevance problem and this isn’t it. In fact, for some of you, it won’t even be worth the cost of the minuscule amount of storage it takes up on your hard drive.

Because it makes a few assumptions.

1) You have, or are willing to build (with your own hands), a deep archive of unique, human authored content to augment the models with.

2) You are willing to take the time to not only ensure the models are trained on this, and only this, archive but to learn how to both use the models appropriately and get them to retain and access relevant context across multiple sessions over days, weeks, and months, which is a skill that goes beyond creating executable ChatGPT prompts.

3) You have, or are willing to develop, the expertise necessary to know when the model is 100%, 95%, 90%, 50%, and 0% right, no matter how convincing the words are that it returns, and how to correct it and guide it to 95% every time (so you can make the corrections faster than doing the work from scratch), which could take minutes, hours, or days for any particular request you throw at it.

But let’s face it.

1) Most of you don’t have the archive, unless you work for a consultancy that has been delivering projects for at least five years, and preferably 10. Jon and I remember the early days with hundreds of blogs, and the 3/3/3/3 rule. Up to 90% of wanna-bees would quit after 3 posts/3 days, then the next batch by 9 posts/3 weeks, then the next batch by 27 posts/3 months, and the majority by 3 years would say “hey bloggie, I’m packing you in“. The hundreds of blogs I chronicled on the now-defunct SI resource site were down to a few dozen by the 2010s.

2) You won’t put in the months necessary to get the model and your skills to the point you are getting close to what you want every time. And it will be months!

3) Not only do you have to keep learning tech, you have to be constantly seeking out experts to learn your trade. That’s also a lot of work. When you’re Bowling for Soup, you know that High School Never Ends!

In an age where founders want to vibe code and flip companies within 3 years, you want instant gratification, but you’re not going to get that!

All it will give those of you starting out is a way to build a skill that is sustainable for life. But the vast majority of you will have to wait for the good things to come. And I don’t think you will. Sorry.

But if you want to prove me wrong, get the book!

Even in a House of Lies there is Truth!

From 2012 to 2016, Showtime ran a series called House of Lies, which was a comedy drama where a charming management consultant and his crack team used every dirty trick in the book to woo powerful CEOs and close huge deals.

And, unlike many consultancy teams, they were quite successful. There were TWO reasons for this.

  1. When they worked together, they brought the A-Team.
    • The Face, Marty, played by Don Cheadle, who was not only charming, manipulative, and opportunistic, but skilled enough in business to nail the spin brought by
    • The Brains, Clyde, played by Ben Schwartz, who specialized in marketing and spin doctoring and could craft just the right messages for Marty to deliver (and, like the Marketing Mad Men, partied a bit too hard and struggled with addiction), and who would have his plans backed up by
    • The Techie, Doug, played by Josh Lawson, who was a genius in numerical analysis and statistics and could find the right numbers to spin any tale The Brains and/or The Face need to weave to make the sale, and this was all brought together by
    • The Toughie, Jeannie, played by Kristen Bell, who managed the engagements, supported the team, and made sure the clients were reeled in hook, line, and sinker. (Without her, the team probably would have fallen apart, especially given the egos that had to be managed on the team. Don’t overlook the importance of The Toughie!)
  2. They came together, and even after falling outs, stayed together.

The third point is probably the most important.

A team is NOT assembled by a sales manager assembling four random consultants with “the right backgrounds” and throwing them on your project. Four random consultants who

  • might not even speak the language when it comes to your problem domain,
  • could be missing critical skills,
  • have entirely different work styles, and
  • are misaligned on what the right outcomes of a successful engagement for the client actually are!

An A-Team

  • speaks the same language,
  • have all the required skills between them,
  • work well together and have already succeeded doing so, and
  • are aligned on a successful outcome for the client.

In response to my LinkedIn summary on why you need The A-Team for Proper Selection Advice, someone asked how do you identify the right persons? The answer is, YOU DON’T!

The A-Team is already working together, delivering success. And in the case of the House of Lies, they succeed as a team by using their history together to effectively work together to sell the client a shared vision, even if the vision was one big lie. (So imagine the results you would get if you hired an A-Team to work for you, and not a consultancy that’s also an implementor that wants to maximize billable hours.)

True Orchestration Platforms Are A Lot Rarer Than You Think. How do you find one?

In our last article we told you that you need a modern orchestration platform in order to deal with the application sprawl not just in an average organization but in your own department. However, the majority of today’s platforms are not orchestration platforms but ORCestration platforms, integrating your applications in a manner that is forceful, ugly, and impure, to say the least.

So how do you find a real platform? Well, for starters you can use the checklists in our first two part where Part I gave you the red flags to look out for and Part II gives you key features to identify.

But if you’re techie enough, or savvy enough, here’s a starting list of technical requirements that you look for. (There are more, especially if you’re looking ahead to 2035 and beyond, but let’s face it, you’re lucky if you’re running 2015 technology anywhere in your organization. So if you make it to 2025, that would be a quantum leap for you.)

Technical Requirements

  • Micro-Service Building Blocks that can be assembled together to support all existing and emerging internet an communication protocols
  • Transactional Blocks that encompass standard data-centric operations in the business back office around the information and finance supply chains
  • Blockchain Support for immutable records that capture data, ownership, and processing that has transpired
  • Context Aware as it’s not just data, it’s metadata of what it represents, who’s data it is, where it was obtained, when it was obtained created, and how it was accessed, why it was valid (and who validated it) in a secure, immutable, block
  • Policy Definition Support that can recognize the security and compliance policies of the integrated applications and ensure they are checked and adhered to before processing any request
  • Dynamic Routing that can ensure messages are re-routed when issues are detected to maintain (guaranteed) response times
  • Resiliency via decentralization and multiple service instances to ensure that one failure doesn’t prevent critical functions and processes from being completed
  • Adaptive when human intervention is required, it is recorded and new rules, and workflows, are generated to prevent a human from having to intervene again for the same problem
  • Secure as modern security protocols and requirements are built in at the core, not around the edges as an afterthought
  • Trustworthy full support immutable data objects, policies, and security independent of what systems are connected to the orchestration platform

Savvy Requirements

The whole point of Procurement is supposed to support the business, a business which must buy and sell to survive, and do so profitably. (That’s why Procurement is so focussed on cost, to keep expenses down, and supply assurance, to keep sales flowing.) This means that the business also requires Sales (who sells) and Supply Chain (who ultimately supplies) and that all of these units must work in harmony. However, fundamentally, without inputs, which depend on suppliers, there are no outputs, which means that the Supply Chain, and the support for the Supply Chain Ecosystem, is fundamental.

This means that the best orchestration solution will be one that is built to support the supply chain department’s integration requirements within the organization and with external partners, not just Procurement. After all, if you read the series Bob and I authored on Legacy Sourcing and Planning Solutions, you can’t divorce Direct Sourcing from Supply Chain and expect success.

So if you want a great orchestration solution, find one that was originally built for supply chain where the vendor has layered on out-of-the-box support for Procurement. This maximizes your chance for success as you will already know supply chain integration support has been taken care of.

Wondering where to start? Maybe start by taking a look at something like HubX12 built as a decentralized distributed network for next-gen supply chains. With its built-in support for modern and emerging internet and communication protocols, advanced chains of custody, and compliance, it could serve as the transaction backbone that you need to integrate existing systems and build custom capabilities both within your organization and your supply chain.

Stop Buying ORCestration. You need Orchestration!

In our last article we told you that the majority of today’s platforms attempting to unify the Procurement application space for you are not Orchestration platforms but ORCestration platforms, integrating your applications in a manner that is forceful, ugly, and impure, to say the least. Definitely not what you need in a modern orchestration platform.

A real Orchestration platform is:

–> Light

They aren’t adding another bulky SaaS platform with its own deep stack requirements, vendor maintenance requirements, data store requirements, and rules engine which must not only be maintained separately, but replicate data and rules across the apps it connects. It’s a truly next gen platform, built up from only the (micro) services necessary to connect the apps and accomplish the tasks. It’s a composable container community, not a 100 room palace with no option in between.

–> Cheap

Next generation platforms, built on modern distributed architectures, and built to work behind the scenes (not in front) to allow the users to access the ecosystems they need to access through the applications they are comfortable with, won’t be million dollar applications. They’ll be a fraction of that as the organizations will be buying just a configurable framework, that they can configure themselves as needed, and not a full, heavy, SaaS application with all of the required support infrastructure just to keep it operational (regardless of whether it integrates any applications or not).

–> Flexible

Workflow can be built up, torn down, and put back together on the fly, as required to support evolving processes. Intake, UI, and integration can all be defined, and redefined, as processes evolve, new applications enter the landscape, and old applications leave. The organization is not restricted to a fixed intake screens with limited configuration, predefined workflows, or limited data formats.

–> Open

Built on composable micro-services, that are fully documented and compatible with modern stacks, they allow anyone to build the necessary integrations, workflows, and data manipulations necessary for true process orchestration. They also support the definition of contexts that allow them to be natively compatible with the data structures of the applications they are integrating. And one definitional mistake won’t bring down the whole platform because it’s not a monolithic megalith built on a house of data cards.

–> Real-Time

Not only are data pushes and pulls accomplished in real time, but the orchestration platform will automatically propagate data updates to all apps that maintain a copy of the data. Moreover, when an input the orchestration platform is an initiator of a process, the entire process will be executed without explicit instructions as each output will trigger the next step and serve as the input for that step.

–> Execution

Real orchestration platforms don’t connect apps in workflows, they execute workflows, and they do so dynamically based upon the inputs and outputs of each step. They adapt, and when transactions occur that cause exceptions that require human intervention, they learn from those interventions and dynamically construct new exception workflows on the fly, ensuring that no specific exception ever has to be manually dealt with twice.

–> Blockchain

It will support blockchain at the core, allowing not only for the integration and processing of arbitrary data records, but for immutable data objects to be input, created, and output — with a full history of what app did which change when. That’s a lot more than you can say about today’s ORCestration platforms.

–> Multi-Protocol

Not only will the orchestration platform be composable from the core up, but the building blocks will be designed in such a way that they can be composed to support all of the standard, obscure, and emerging protocols that might need to be supported. As a result, the platform will be able to integrate not only current apps, but emerging apps as well.

–> Organizational

A true orchestration platform is designed to support organizational processes and applications, not just Procurement, allowing the input (signal) data to come from any organizational system and be pushed to any other organizational system, bridging the gap between sales orders, POS demand signals, and demand planning and supply chain (re)order and logistics systems. True orchestration finally tears down the technology walls holding Procurement back, vs. today’s ORCestration platforms which just strengthen their foundations.

–> Secure

Not only are these platforms built on security at the core, recognizing both security standards AND security policies, including the security policy of each application that is orchestrated by the platform. This means that when a user initiates an action, it only executes if they have the appropriate (data) access in all of the applications on the orchestration platform that are needed to complete the action. No hoping, or praying, that the ORCestration platform encoded the right security checks in its native workflow.

–> Policy (Aware)

As per our last point, modern orchestration platforms will understand the concept of policy at the core, and not just for security — for compliance as well! The orchestration platform will integrate with all of the applications that contain encodings of the organizational compliance requirements, understand those compliance requirements in their native contexts, and ensure that all processes are completed in a compliant process.

–> Collaborative

The core of the orchestration backbone is designed to not only support application collaboration, but user collaboration across the organization, and even with connected parties in the supply chain, through the native support of internet communication protocols as well as all standard application messaging protocols. Collaboration will never be easier than with a true orchestration platform.

–> Resilient

Since it’s not just another megalithic SaaS app, but instead a (micro-)service platform built up from building blocks, one failed integration and even one failed block will not bring down the whole platform, the rest of the platform and apps will still work.

–> Process (Focussed)

Modern orchestration platforms are designed to support organizational enterprise processes end-to-end, not departmental functions end-to-end. They can integrate and orchestrate any application in the organization’s software ecosystem (all 1,000+ in a large enterprise) as well as any partner systems the organization has access to.

–> Exception (Orientation)

Modern orchestration is designed to quickly identify exceptions, invoke exception processes, and ensure humans are only involved for a here-to-forth unforeseen exception. Moreover, it will allow for the human instructions and guided process to be automatically captured and encoded to make sure that humans never have to teach the system twice.

Unlike yesterday’s ORCestration platforms, today’s (and tomorrow’s) true orchestration platforms are built on modern technology stacks, and future-proofed for tomorrow’s applications, not just yesterday’s.