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Example Report

 

OntoSpace™ Data Analysis Report

INPUT DATA SUMMARY

Input File Example_Input.csv
Number of Inputs 20
Number of Samples 27

 

 

1. RATING AND COMPLEXITY MEASURES

Every system can only sustain its specific maximum value of complexity. This is known as critical complexity. Close to criticality, systems become vulnerable, fragile and difficult to manage. The difference between the current and critical complexity is a measure of the overall "health" of the system. Closer to criticality the system is less healthy and therefore generally more exposed.

 

2. COMPLEXITY & RISK MAP

The Complexity & Risk Map illustrates the most significant relationships. In a properly functioning system, it is important to maintain the structure of the map intact. Understanding  the  functioning  of  a  system  is  easy  if  one  analyzes  its  Complexity  &  Risk  Map.  The  map  is  made  of  nodes  (arranged  in  diagonal)  and  connectors  (red  and  blue  dots  linking  the  nodes).  Blue  connectors  correspond  to  strong  links,  while  the  ones  in  red  indicate  weaker  links.  The  weak  relationships  concentrate  most  of  the  system's  complexity  and  it  is  here  that  one  must  intervene  if  one  wishes  to  reduce  the  overall  complexity  of  the  system  in  question.  The  coloring  of  the  connectors  corresponds  to  that  in  the  table  in  paragraph  4  of  this  report.  The  total  number  of  connectors  is  indicated  in  the  figure  below  as  the  number  of  rules.  This  is  because  each  relationship  between  two  variables  constitutes  a  rule.  The  complete  set  of  rules  establishes  how  a  system  functions.

Figure 1. Complexity & Risk Map

 

A  variable  is  defined  as  not  active  if  it  does  not  relate  to  any  other  variable  and  may  be  regarded  as  irrelevant.  In    such    cases,    it    will    not  be    indicated  in    the  System  Map  and  a  blank  space  will  appear  in  the  corresponding  location.  Highly  connected  variables  -  known  as  hubs  -  are  indicated  in  red.  It  is  these  variables  that  require  most  attention.

The  density  of  the  map  is  also  important.  In  highly  dense  maps  problems  spread  very  quickly.  Moreover,  in  such  cases  it  is  very  difficult  to  reach  goals.  Changing  the  value  of  any  variable  immediately  changes  the  values  of  many  others.  A  very  low  map  density,  on  the  other  hand,  reflects  systems  with  a  very  low  degree  of  redundancy.

The  structure  of  a  given  Complexity  &  Risk  Map  may  be  appreciated  based  on  the  number  of  relationships  that  variables  have  with  eachother.  This  number  is  known  as  degree.  Variables  with  the  highest  degree  -  the  hubs  -  are  critical  to  your  business.  The  table  below  lists  all  variables  ranked  from  highest  to  the  lowest  degree.  Irrelevant  variables  have  a  degree  of  0.

 

Variable Degree
1 GDP Growth (qtr) 15
2 Employees 15
3 NewHouseConstr (monthly) 13
4 Net Earnings (million $) 13
5 Number of customer transactions (thousands) 13
6 Total Assets (million $) 12
7 DA 12
8 Long term debt (million $) 11
9 Ave Sq Ft per store (thousands) 11
10 YoY Revenue growth (%) 11
11 Oil Prices (annual) 10
12 EPS ($) 10
13 Ave Sale per trans ($) 10
14 Number of stores 9
15 YoY Income growth (% 7
16 GDP (Qtr) 6
17 Net Sales (Million $) 2
18 Current Ratio 2
19 MortgageInterest (monthly) 0
20 YoY Income growth (%) 0


An additional ranking logic for variables in a given System Map is based on the strength of all the correlations with the neighbors of each variable. A generalized correlation coefficient is used for the purpose. Variables having a higher "Correlation Strenght" are most significant and, possibly, critical. This alternative ranking mechanism is very important in that sometimes a variable is classified as hub but the relationships with its neighbors, although potentially numerous, are weak. From a pure map topology standpoint, the variable is a hub but may be quite insignificant from a correlation point of view.

 

3. RANKING OF VARIABLES

In  order  to  establish  the  relative  importance  of  the  variables  in  a  system  they  are  ranked  based  on  the  cumulative  strength  of  all  the  relationships  with  their  neighbors,  not  only  on  the  number  of  relationships.  This  ranking  is  reported  in  the  table  below.  This  table  provides  vital  information  for  decision-making.

Variable Correlation Strength
1 GDP Growth (qtr) 3.34
2 NewHouseConstr (monthly) 2.61
3 Net Earnings (million $) 2.59
4 EPS ($) 2.06
5 Oil Prices (annual) 2.01
6 Total Assets (million $) 1.91
7 DA 1.88
8 Ave Sale per trans ($) 1.68
9 Long term debt (million $) 1.68
10 Number of customer transactions (thousands) 1.55
11 Employees 1.52
12 GDP (Qtr) 1.25
13 Number of stores 1.11
14 Net Sales (Million $) 0.78
15 Ave Sq Ft per store (thousands) 0.59
16 Current Ratio 0.20
17 MortgageInterest (monthly) 0.00
18 YoY Revenue growth (%) 0.00
19 YoY Income growth (%) 0.00
20 YoY Income growth (% 0.00

4. SYSTEM ANALYSIS

How  will  the  system  start  to  fail?  Where  is  the  system  most  vulnerable?  Failure  can  occur  in  different  ways.  In  general,  failure  is  equivalent  to  the  loss  of  structure  in  the  Complexity  &  Risk  Map  -  the  map  starts  to  break  down  causing  loss  of  functionality.
The  system  will  generally  start  to  fail  at  the  weakest  relationships.  The  table  below  reports  all  the  relationships  (rules),  together  with  an  index  called 
robustness.  The  closer  the  index  is  to  0,  the  more  vulnerable  the  relationship  in  question.  Values  close  to  1  indicate  healthy  and  strong  relationships.  The  relationships  at  the  bottom  of  the  list  (those  having  lowest  robustness)  are  those  which  concentrate  most  of  your  system's  complexity.  If  you  plan  to  reduce  the  complexity  of  your  system,  it  is  these  relationships  that  must  be  addressed  first.  On  the  contrary,  relationships  at  the  top  of  the  list  are  those  that  contribute  less  to  making  your  system  highly  complex.

Variable 1 Variable 2 Robustness
1 GDP Growth (qtr) Employees 0.77
2 Number of customer transactions (thousands) Ave Sq Ft per store (thousands) 0.77
3 Net Earnings (million $) Long term debt (million $) 0.76
4 GDP Growth (qtr) YoY Revenue growth (%) 0.76
5 Net Earnings (million $) Number of customer transactions (thousands) 0.75
6 EPS ($) Long term debt (million $) 0.75
7 Ave Sale per trans ($) Ave Sq Ft per store (thousands) 0.74
8 Employees YoY Revenue growth (%) 0.74
9 GDP Growth (qtr) Ave Sale per trans ($) 0.74
10 GDP Growth (qtr) Total Assets (million $) 0.73
11 DA Employees 0.72
12 Net Earnings (million $) EPS ($) 0.70
13 Ave Sale per trans ($) Employees 0.70
14 Long term debt (million $) Number of customer transactions (thousands) 0.69
15 Net Earnings (million $) Ave Sq Ft per store (thousands) 0.69
16 NewHouseConstr (monthly) YoY Revenue growth (%) 0.69
17 GDP Growth (qtr) Ave Sq Ft per store (thousands) 0.67
18 Number of customer transactions (thousands) Employees 0.67
19 GDP Growth (qtr) EPS ($) 0.67
20 EPS ($) Number of customer transactions (thousands) 0.64
21 NewHouseConstr (monthly) Employees 0.64
22 Employees Ave Sq Ft per store (thousands) 0.64
23 GDP Growth (qtr) Long term debt (million $) 0.63
24 EPS ($) Employees 0.63
25 GDP Growth (qtr) Oil Prices (annual) 0.63
26 NewHouseConstr (monthly) GDP Growth (qtr) 0.62
27 EPS ($) Total Assets (million $) 0.62
28 NewHouseConstr (monthly) Ave Sale per trans ($) 0.62
29 GDP Growth (qtr) Number of customer transactions (thousands) 0.61
30 Long term debt (million $) Employees 0.61
31 GDP Growth (qtr) Net Earnings (million $) 0.61
32 Net Earnings (million $) Employees 0.60
33 Oil Prices (annual) YoY Revenue growth (%) 0.60
34 NewHouseConstr (monthly) Number of customer transactions (thousands) 0.60
35 Net Earnings (million $) DA 0.59
36 Total Assets (million $) Employees 0.59
37 Long term debt (million $) DA 0.58
38 Oil Prices (annual) Number of customer transactions (thousands) 0.58
39 DA Number of customer transactions (thousands) 0.57
40 NewHouseConstr (monthly) Ave Sq Ft per store (thousands) 0.57
41 Total Assets (million $) Long term debt (million $) 0.57
42 Net Sales (Million $) Employees 0.55
43 Oil Prices (annual) Net Earnings (million $) 0.55
44 Ave Sale per trans ($) YoY Revenue growth (%) 0.55
45 NewHouseConstr (monthly) Oil Prices (annual) 0.53
46 Total Assets (million $) Ave Sale per trans ($) 0.53
47 GDP Growth (qtr) DA 0.53
48 Oil Prices (annual) Employees 0.53
49 DA YoY Revenue growth (%) 0.52
50 DA Ave Sale per trans ($) 0.52
51 Net Earnings (million $) Total Assets (million $) 0.52
52 DA Ave Sq Ft per store (thousands) 0.51
53 GDP (Qtr) Ave Sale per trans ($) 0.51
54 Oil Prices (annual) DA 0.50
55 Total Assets (million $) Number of customer transactions (thousands) 0.50
56 Total Assets (million $) Ave Sq Ft per store (thousands) 0.50
57 GDP Growth (qtr) Net Sales (Million $) 0.49
58 GDP Growth (qtr) Number of stores 0.49
59 NewHouseConstr (monthly) Long term debt (million $) 0.47
60 EPS ($) DA 0.47
61 Employees YoY Income growth (% 0.46
62 NewHouseConstr (monthly) Net Earnings (million $) 0.45
63 Number of stores Ave Sale per trans ($) 0.44
64 Oil Prices (annual) Long term debt (million $) 0.43
65 Oil Prices (annual) YoY Income growth (% 0.43
66 Number of customer transactions (thousands) YoY Revenue growth (%) 0.41
67 Ave Sq Ft per store (thousands) YoY Revenue growth (%) 0.41
68 GDP (Qtr) Total Assets (million $) 0.41
69 Number of stores Number of customer transactions (thousands) 0.40
70 Net Earnings (million $) Number of stores 0.39
71 GDP Growth (qtr) YoY Income growth (% 0.38
72 Total Assets (million $) Number of stores 0.38
73 NewHouseConstr (monthly) EPS ($) 0.38
74 EPS ($) Number of stores 0.37
75 Total Assets (million $) YoY Revenue growth (%) 0.37
76 Number of stores Employees 0.36
77 Number of stores Ave Sq Ft per store (thousands) 0.36
78 NewHouseConstr (monthly) GDP (Qtr) 0.35
79 GDP (Qtr) Number of customer transactions (thousands) 0.34
80 GDP (Qtr) Ave Sq Ft per store (thousands) 0.34
81 Oil Prices (annual) EPS ($) 0.34
82 GDP (Qtr) Net Earnings (million $) 0.34
83 Total Assets (million $) DA 0.34
84 Long term debt (million $) Number of stores 0.33
85 Net Earnings (million $) YoY Revenue growth (%) 0.32
86 Long term debt (million $) YoY Revenue growth (%) 0.32
87 DA YoY Income growth (% 0.32
88 NewHouseConstr (monthly) YoY Income growth (% 0.29
89 Ave Sale per trans ($) YoY Income growth (% 0.28
90 NewHouseConstr (monthly) Current Ratio 0.15
91 Current Ratio YoY Income growth (% 0.14

End of Report

 

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Ontonix S.r.l. Via Col. Alessi 15, 23100 Sondrio, ITALY. P. IVA/VAT Nº. 00854450145. OntoSpace is a trademark of Ontonix S.r.l. Copyright 2007 Ontonix S.r.l. All rights reserved.

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Date: Thu Mar 13 08:09:39 2008

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