FAQ

In this FAQ section, we have posed the questions to our Founder and Executive Chairman—Flemming Madsen, here's what he has to say…

flemming-madsen

What does Onalytica do?

Onalytica provides a range of tools and services that allow businesses to create mappings between the online debate and their on going market insight needs in near real-time. This improves their competitiveness, reduces risk and cost, improves employee alignment and frees up time to execute.

What business is Onalytica in?

Onalytica is in the market research and business insight business. We are different from traditional companies in this space because we provide constantly updated insight as well as some insight which is impossible to get using traditional panel and polling methods. This constant view of the battlefield means our customers have a competitive advantage because they can make better decisions, earlier.

What needs is Onalytica addressing?

Organisations, particularly larger ones, have enormous insight and information needs in order to run their business. The better these needs are met, the more companies are able to improve their competitiveness and reduce risk, enabling a more agile response to opportunities and threats and aiding them to generally perform better.

What are the benefits of using Onalytica's services?

Onalytica's solutions map insight needs to real-time analysis of online news, conversations and activities meaning our customers have constant access to updated insight. The older your insight is, the more at risk your business may be as you are acting on information which is older than that used by the competition.

Why is this important for my business?

Many businesses are operating in a world with an ever increasing mound of information, against fierce competition, and with typically shorter cycles for decision making. In this situation, if you are only able to access relative market insight (market position, what is driving the market) every three months, you are forced into being less responsive than you could be if you had this information updated constantly—ensuring you can respond to threats and opportunities and make the right decisions.

You are also less likely to be a victim of information asymmetry; the situation whereby your competitors, customers, shareholders, market analysts or someone else important knows something that you should also know—but don't.

What exactly do you deliver?

We help our clients achieve better results, improve competitiveness, lower costs and risk. If we didn't, we would be doing something else! The deliverables are typically real–time interactive dashboards, human insight (in–dashboard) or reports, and often a combination of all three, tailored to a client's specific needs.

What makes Onalytica different?

This depends on who we are being compared to.

We are focused on continuous measurement and prediction of business outcomes and effects. We are independent of media groups who deliver marketing communication; we purely sell our insight services. We are also obsessed with constantly testing, documenting and demonstrating that our services deliver not only the expected insight but the expected value to the customer.

Can you solve all the insight needs of a corporation?

We are focusing on satisfying reoccurring market research needs as well as the situation where organisations can benefit from frequent access to up to date insight from market research.

What is your vision?

By providing all individuals in the organisation who can benefit from the insight from real-time market research, we want to help organisations become more competitive and agile, whilst being able to operate with lower risk and spend less money and time doing so.

Today - the way market research is traditionally carried out has not changed dramatically from the days when data was collected by a nice man with a clipboard. We are changing that.

Our goal is to be for enterprise insight what SAP is for the enterprise ERP market—the default provider, with a huge ecosystem of partners that help organisations take advantage of this new opportunity (except we prefer to offer a SaaS service).

How do you know your measurements are reliable?

We continuously test our measurements and analyses against market outcomes, as well as more expensive, infrequent market research such as traditional surveys.

I know a PR person who says it's impossible for computers to measure sentiment 100% accurately. Are you telling me he is lying?

He has a point, but you don't need to be 100% correct to get value from insight. The results do however need to be better than random. Imagine the scenario where as a manager, your KPI is to perform as well or better than your nearest two competitors. If you are not performing better or it looks like you won't be in the near future then you will want to take action. Depending on how severe your relative performance in comparison to the other two might be, your action to rectify the situation could be the hiring of 100 new customer service staff, or running a £2M marketing campaign.

Without insight, you don't know how you are performing. If you have the sentiment ranking of you and your competitors with a probability of 90% then you are in a much better position to make important decisions such as those mentioned above. Importantly the sentiment will also be measured consistently each time and not be subject to pure human interpretation. You are now able to make the decision with a 90% probability of being correct.

With Onalytica's services, you can constantly see how you are performing and you will be able to take action a lot earlier and indeed more precisely as our systems will show you continually in which areas you are performing better or worse than your competitors.

I would recommend your PR friend to read the book "How to measure anything" by Douglas W. Hubbard, which among other things, enables him to calculate the value of information and insight.

Why is it important to understand the topical influence of the sources when analysing the debate?

The topical influence is important because not all sources of news and conversation have the same impact in the market place. When the Financial Times has an article about a large public company's performance it generally has a bigger impact on the company's stock price and corporate reputation than when a random private blogger says something similar. However, the FT's impact in the debate on climate change might be a lot less than some blogs.

I know a PR guy who says that he knows who is influential, so he doesn't have to measure it.

He probably has a good idea about influencers. However, as humans we tend to overrate the influence and relevance of those we are more familiar with and similarly underrate the influence and relevance of those we are less or unfamiliar with. Also, annoyingly influence is highly sensitive to the topic. Tests also show that those who claim to know who is influential seldom agree.

I know a Social Media Guru who says that influence is equal to the number of followers you have on Twitter and Facebook multiplied by the number of foxes in Finland. Does he have a point?

A guru obviously knows his stuff, so he might just have a point. However, there is one slight concern—even if we don't know the exact number of foxes in Finland, this formula shows that Justin Bieber, Britney Spears and Heidi, the cross-eyed possum, are all more influential than both FAO (The Food and Agricultural Organisation) and IPPC (Intergovernmental Panel on Climate Change) on what might trigger famine in Africa, or than the WHO (The World Health Organisation) in relation to the best way of treating those affected.

Before you bank your success on this formula you might want to ask for a demonstration that proves it works rather than on how it works.

What is influence anyhow and can it be measured?

The Concise Oxford English Dictionary (11th ed.) states that the first definition of influence is "the capacity to have an effect on the character or behaviour of someone or something, or the capacity itself".

This definition is very close to the one we subscribe to at Onalytica. In fact, we have both a general definition and a more technical one. Let's take the general one first:

Influence, is the capacity of a publication, an organisation or an individual to impact the viewpoints, actions or opinions of others over whom they do not hold power.

A couple of things can be deduced from the above definition. Firstly, it is clear that the influence will change if the context changes meaning; the same person is unlikely to have the same impact in relation to very different topics, such as global warming, mobile phones or health services. Secondly, influence is different from power. When you have power over someone you create an impact by instructing them. If you have influence you leverage reputation, argument, communication skills and similar rather than direct power. Influence is an objective measure and we normally talk about relevance as a measure for the perceived influence.

Influence can therefore be seen as a stakeholder's real "punching weight" in the debate—meaning how much they move the markets, through what they say or publish.

Our technical definition of influence is (as it says on the tin) a bit technical; here it is:

Influence is the topical weight, different for each voice, that when applied to voices that "speak" about a set of competing brands, transforms the brand's share of the debate into the share of the market.

In reality, this means that if media X posts an article about a car model and this leads to 20 new cars being sold, and media Y posts a similar article that results in 10 cars being sold, then media X has twice the influence of media Y in the debate on cars.

Can it be measured? At Onalytica we subscribe to the view that "if it matters it can be measured"—we even run a course where we teach techniques to measure things that are difficult to measure. We didn't develop the science of measuring influence at Onalytica (we learned it from this gentleman) but we have done some pretty good implementations of it. How do we know we have good influence weights? Because our predictions about market outcome are fairly good, and we have evidence that if you treat all online voices equally, these same predictions become pretty bad.

One important point to add might be—"how do you test an influence score to find out if it's good?"

The Scientific Method is the well–established way of arriving at a conclusion: Based on observations and/or initial research you—sometimes via a conjecture—formulate a hypothesis, which you use to formulate predictions about an outcome. You then design and conduct experiments to prove or disprove your hypothesis by demonstrating your ability to predict outcome of the experiments.

So, by making predictions based on our definition of influence and how it interacts with outcome, we have been able to test that the predictions about outcome (e.g. market share changes, awareness, recall, sales, sentiment change) that can be made using influence are significantly better than those that are made without influence.

If you would like to know more about influence—we recommend the following links:

Do you have your own definition of influence that works better? Please point us to your research that demonstrates how well it works. We would love to learn about it.

Why is Onalytica different to a social media monitoring company?

We are different to these companies because our services take advantage of analysing all types of online media, rather than just social media. Several of our customers use it for analysing social media, but the main difference is probably in the market being addressed: SMM companies focus on satisfying a new need and addressing a new market whereas Onalytica is addressing (and disrupting) an existing market (market research) while satisfying a range of traditional and well-established business needs, only better, faster and cheaper. SMM companies also often tend to focus on measuring activity, whereas Onalytica is focused on measuring outcome.