Hi, this is Kip Twitchell. I'm on a flight from South Paulo, Brazil to Dallas, Texas. I thought I'd talk a little bit about business events and measurement. So let's take a ruler. A ruler was created at some point when someone decided what the length of each measurement unit should meet, as Mr. Crosby is, as noted that each segment of the ruler is called a quanta. quanta are small little pieces that are arbitrary divisions of something that needs to be measured.

For example, this spreadsheet is an example of my exercise tracking spreadsheet. I have noted that if I track my exercise, I'm inclined to do more of it. Thomas S. Monson has said that when performance is measured, performance improves when performance is measured and reported rate of improvement accelerates. Consider the different kinds of measurements we have. Certainly we we think of revenue as a measurement or cost and expenses as measurements. But there are many other kinds of things that are measurements, unique users earnings per share evaluation ratings, miles per gallon, all of these kinds of things are quanta, that have been broken up something in some way, and measured over time to evaluate how we're doing.

Let's go back to the transactions we talked about in Episode One. Remember, we also spoke of balances, balances are additions of transactions. So if you add up transactions, you can create balances, transactions could be thought of in simple terms as quanta, whereas balances tend to be measurements. Now the world of business events is not the total world of events. And there's many more events in the world than there are business events. And there's more business events in the world than there are transactions.

For example, biking 10 miles is an event for different customer calls, is something that could be considered a business event. Although not a transaction, the purchase of $10 worth of supplies would be a transaction. A business event is anything that the business wants to plan, execute, control, or evaluate. That's why the something that is like four customer calls could be considered a business event, because that may be something that the business wants to plan, control evaluator execute in some way to see how many customer calls have been made. In the first series, we also talked about the amount of data in the world. We also noted that if there is, if we take into account the duplicated balance data, that the amount of data in the world becomes much larger.

Why is this? Well, let's look at an example here. Here we have all the transactions. And here we have a set of balances. For those transactions. All of the all of the data exist in the transactions.

These balances are all created from the transaction. The only input that's needed, is the transaction. We've added up and created one type of balance in the previous slide, which was the amount by customer but there's also another set of balances we could create from these transactions. If we were to add up the counts, customer ABC has seven transactions, whereas customer XYZ only has four transactions. But this isn't all the balances that could be created off of this set of transactions. Another set of balances could be created, which would be by year in 2007.

And in 2002, there were multiple transactions in each one of those years. So the number of balances is less than the number of transactions still. So you can see right here, just from this little simple example, that we're beginning to duplicate transaction data, many different times as we begin to create different kinds of balances. Now, one more important point is the idea of reconciliation. Notice that we can subtotal the balances and the transactions for both the amount and account in this example right now, all of our balances equals the amounts if we were to add up the transactions. Sometimes that's not always the case.

Doing this process is called reconciliation. We'll talk about that a lot more in subsequent episodes.