acacso annual meeting november 11, 2011 presented by joel christensen using business intelligence to...

ACACSO Annual Meeting

November 11, 2011

Presented by Joel Christensen

Using Business Intelligence to Drive Performance

Over 20 years of rail industry experience

Specialization in Technology

Prior experience at CN Intermodal

Joined RMI in 1997

Joel ChristensenRMI Account Executive

Today’s Presenter

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Business Environment & Drivers

Business Intelligence

How are Railroads Using Business Intelligence?

Summary & Questions

Presentation Agenda

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Business Environment and Drivers

Business Environment and Drivers

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Rapidly Changing Conditions

Accountability and Transparency

Need to Improve Decision Quality

Need to Control Costs and Create Efficiencies

Today’s Business Pressures

Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

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Today’s Pain PointsBusiness Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

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Disconnected Business Systems

Poor Data Quality & Inaccuracies

Not Easy to Access Business Data or Data is “Lost” in line of Business Application

Decision Makers Lack Real-Time Business Insights

Multiple or Inconsistent versions of “the truth”

Manual,

Time

Consuming

Processes

Too Much Data to Decipher and use for Decision Making

Faster, Better Decisions Accurate, complete information Actionable analysis End-to-end visibility into the business

Focus on Performance Manage metric by exception Proactively detect potential issues as early as possible Streamline and optimize business processes Root cause analysis

Agility, Adaptability and Efficiency More actions to be taken Less time left to take the actions More information to be analyzed More certainty needed in predictions

Today’s Business Needs


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How Are You Getting Your Information?Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

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Still Relying on Spreadsheets?


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Question:

Where are Companies Managing Performance Data Today?

Answer:Spreadsheets and Presentation Files.

Issues and Risks with Relying on Spreadsheets?

Change Management Who has the “official” latest version? How many spreadsheets have to be updated when

a KPI changes? How responsive can the organization be to change?

Information Visibility and Transparent Insight How long does it take to “scrub” and present data? Does management have real-time visibility into the

latest performance status of an objective? Is there a “single source” of truth?

Margin of Error Inherent in manual data input and manual

spreadsheet routing How long does it take to recreate lost or erroneous

data?

Knowledge Retrieval How is information shared in a decentralized

organization?

50% of companies today are managing

performance data in spreadsheets*

* Source: BSCOL Member Survey, Spring 2006


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Business IntelligenceBusiness Intelligence

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Transforming Business DataInto Intelligent Decisions

So what is Business Intelligence?

MonitoringDashboards, scorecards and alerts

AnalyzingDrill down, exception reports, root-cause analysis, multidimensional analysis

ReportingDetailed operational data

Sharing standardized reports

PlanningCreate plans, models and scenarios, which are then fed back into the monitoring layer and encoded as targets and thresholds.

“A broad category of applications and technologies for gathering, storing, analyzing, sharing and providing access to data to help users make better business decisions” - Gartner

?


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Questions That Define Business Intelligence

Monitor

Plan

Analyze

What happened?

What is happening?

What will happen?What do I

want to happen?

Why?

Continuous Business Improvement

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xx

Ad-Hoc Reporting – Enables non-technical users to quickly and easily answer business questions.

Scheduled Reports – Allows users to format and deliver data as meaningful information to the right people at the right time throughout the organization.

KPI Dashboards – Performance Management tools designed to track and analyze key business metrics via digital dashboards, scorecards and alerting.

Web

Ena

blin

g

Wor

k Too

lsAnalytics

Work Flow

Rep

ortin

g

Dashboards

Data

Min

ing

Performance ManagementDecision Making Tools

Metrics & KPI’s

Querying Scorecards

Business Intelligence Features


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Elements of Good Business Intelligence

Relevance

Timeliness

AccuracyFlexibility

Ease of Use


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Base: 82 IT decision-makers(percentages do not total 100 because of rounding)

How Widespread is Organization’s Adoption of BI

Enterprise-wide, 58.5%Limited to individual

lines of business; 20.7%

Limited to individual departments; 8.5%

Limited to individual projects; 9.8%

Other; 2.4%

Source: August 2008 Global BI And Data Management Online Survey

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Understanding the BI Audience

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Operational and Clerical

Execute• Requires Reporting

and Work Tools

Managers and Knowledge

WorkersTactical Decisions• Requires Analytics• Slicing and Dicing

with Visual Feedback

• For Tactical Decisions and to Guide Strategic Decisions

Executives

Strategic Decisions• Requires

Dashboards• Quick Snapshots,

Highlighting Indicators for Instant Decision Making



SALES

MARKETING

CUSTOMERSERVICE

HR

OPERATIONS

IT

FINANCE

Who are the Users of BI?


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The Keys to Success with BI

“Through 2012, more than 35% of the top 5,000 global companies will regularly fail to make

insightful decisions about significant changes in their

business and markets.”

Despite the importance of BI, The Gartner Group Predicts: Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

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The Keys to Success with BI

BI must be aligned with the company’s business strategy

Information and analysis must be actionable

BI should change the way a company conducts business by:o Improving business processes, and o Transforming decision making to a more data/fact/information

driven activity

Information should be easy to grasp and timely

BI should help execute the business strategy, not impede it!


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Don’t Measure to Just Measure……

Meaningful Performance Metrics

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Three Questions that Drive Performance

IT

SALES

MARKETING

CUSTOMERSERVICE

HR

OPERATIONS

PRODUCTDEVELOPMENT

FINANCE

Why?How are we doing?

What should we be doing?

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Driving Performance


Driving Performance


“Continuous Improvement BEATSPostponed Perfection”

Assess, Evaluate, the Rethink your KPI’s Self audit & best practices/performance One must visualize metrics first before creating them Document your KPIs

o What are you measuring?o Why are you measuring?o How are you measuring?

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How Railroads are using Business

Intelligence

How Railroads are using Business

Intelligence

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Target Met u Target Not Met

METRIC

1) Average Days to Rating

2) % WBS Rated within 2 Days

3) % Batch Rating

4) Rating Accuracy Ratio

1) Fully Concurred Settlements

2) Settle Silent w/Funds Transfer

3) Undisputed Settlements

4) Average Days to Settlement

5) Average Days to Funds Transfer

6) Settlements w/o Trial Balance

7) PP/CC Negative Settlements

8) Post Settlement Adjustments

9) Settlement Differences -Receivables

10) Settlement Differences -Payables

*Less than 10 waybills w/Variance >$100 AND Total $ Variance Between -/+ $20K

ABC Railroad

YEARLY PERFORMANCE TREND

# of Yearly Goals Met: 7 7 7

>.5% 0

Rat

ing C

ycle

ISS

Perf

orm

ance

* $133.82 -$612.62 $51.89

* $75.52 -$30.60 -$84.09

0 0

u<6 WBS 0 1 1

< 11 WBS 1,363 1,376 257 u u

<55 Days 53.4 53.6 53.7

<38 Days 35.5 36.7 36.6

u>95% 70.1% 67.8% 71.4% u u u

<11 WBS 1,390 1,421 261 u u

>90% 68.2% 64.8% 69.0% u u u

>95% 95.8% 95.9% 96.1%

u>75% 0.0% 1.1% 0.0% u u u

>75% 33.2% 34.5% 32.1% u u

BENCHMARK GOAL RESULTS TARGET MET2011

<=2.0 5.2 4.3 4.4 u u uGoal 2009 2010 2011 2009 2010

Revenue Management

Rating & ISS Performance –Yearly Scorecard

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Report Create Date:

Target Met Target Not Met

Fully Concurred >90%

Metric* Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

1) Fully Concurred u u u u u u u u u u u u u u u u u u u u u u u u u u u0.4

2) Settle Silent w/Funds T u u u u u u u u u u u u u u u u u u u u u u u u u u u

3) Undisputed Settlements u u u u u u u u u u u u u u u u u u u u u u u u u u u

4) Ave Days to Settlement u u u u u0.8 0.8 0.8 0.4 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.4 0.8 0.8 0.8 0.8 0.8 0.4 0.8 0.4 0.8 0.8 0.8 0.4

5) Average Days to Funds T u u u u u u u u

6) Settlements w/o Trial Bal u u u u u u u u u u u u u u u u u u u u u u u u u u u

7) PP-CC Neg Settlements u u

8) Post Settle Adjustments u u u u u u u u

9) S Differences -Rec u

10) S Differences -Pay u u u u u u

# of ISS Goals Met: 3 5 5 5 5 4 6 6 4 5 6 5 5 4 4 4 6 6 6 6 4 5 5 4 6 5 3

Post Settle Adjust>95% <38 Days <55 Days No Waybills No Waybills <.5%

Settle Silent w/Funds TNo Waybills

Undisputed Settlement Ave Days Settlement Ave Days to Funds T Settlements w/o TB PP-CC Neg SettlementsMonthly Benchmarks/Goals

4/11/11 ISS SCORECARD

uMONTHLY PERFORMANCE TREND

2009 2010 2011

Revenue Management

ISS Performance –Monthly Scorecard

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4/11/11 Figures Through :

RR Name: ABC Railroad RR Mark: ABC Owner: ABC

Local Rule 11 ISS Payables ISS Receivables8.8% 31.2% 54.5% 5.5%

Local Forward Received Intermediate8.8% 86.4% 4.8% 0.0%

Type Year LOCAL FWD 11 REC 11 INT 11TOTAL

R11 FWD PP REC CCTotal

ISS Pay FWD CC REC PP INTTotal

ISS RecTOTAL

WAYBILLS

2009 54 150 2 - 153 272 6 278 7 18 - 25 5102010 32 153 4 - 156 255 6 261 16 10 0 27 4762011 131 389 9 - 398 691 30 721 54 42 - 96 1,346

3 Yr Ave 43 149 3 0 152 260 6 266 12 14 0 27 488

2009 10.6% 29.5% 0.4% 0.0% 29.9% 53.3% 1.2% 54.5% 1.5% 3.5% 0.0% 5.0%2010 6.7% 32.0% 0.8% 0.0% 32.9% 53.6% 1.2% 54.8% 3.4% 2.1% 0.1% 5.6%2011 9.7% 28.9% 0.7% 0.0% 29.6% 51.3% 2.2% 53.6% 4.0% 3.1% 0.0% 7.1%

3 Yr % 8.8% 30.5% 0.6% 0.0% 31.2% 53.2% 1.3% 54.5% 2.6% 2.9% 0.0% 5.5%

Summary Traffic Statistics2009-2011

Revenue Settlement:

Type of Traffic:

Waybill Averages & Percentages

Month

ly

Aver

ages

% o

f

Way

bills

Report Create Date: 3/31/11

RATING BY TRAFFIC TYPE REPORT

About Report: This report is designed to provide information on the road's traffic type and settlement of revenues. It analyzes RATED WAYBILLS and classifies them into settlement and traffic types.

ACTIVITY REPORT

LOCAL8.8%

RULE 1131.2%

ISS RECEIVABLES5.5%

ISS PAYABLES54.5%

2009-2011 Waybills ISS Category

LOCAL9%

FWD 1130%

REC 111%INT 11

0%FWD PP53%

REC CC1%

FWD CC3%

REC PP3%

INT0%

2009-2011 Waybills by Traffic Type & Method of Payment

Revenue Management

Rating Activity Report

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Inventory Management Dashboard

Each KPI shows various inventory measures:• S/F/P• Cartype• L/E• Status• Location

Drill-down provides details on each KPI

down to individual car id level

OPERATIONS

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OPERATIONS

Car Dwell Dashboard

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OPERATIONS

Idle Car Dashboard With Drill-Down

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Summary

Information is growing at the fastest rate ever

How you manage information has a direct tie to how successful the business will be

BI is no longer an “optional” element of business

Business Intelligence is about making effective business decisions

The key to success is effectively using metrics & KPI’s to drive business performance

Remember BI is a Journey that can transform the way you do business

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QuestionsQuestions

acacso annual meeting november 11, 2011 presented by joel christensen using business intelligence to...

Documents

drivers business environment

business focus

transforming business

performance slide

performance data

bi summary qa

erroneous data

present data