blue print for next generation analytics v1.10 … design chain supply chain program design chain...
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2Confidential and Proprietary
Agenda
• What is new about the next generation?
• The five (5) keys for success you need
• Strategy and approach (road map development)
– Understanding your current state
– End State - Where do you want to go?
– Gap analysis – uncovering the actionable activities you will need to accomplish success
• How to get started
3Confidential and Proprietary
What is new about the next generation?
• Visual Discovery Tools– Quickly and easily visualize and interact with data to gain new insights
and make better decisions
• Integrated Master Data Management– Clean, high quality reference data
– Customer, Product, Contract-Agreement, Location
– Mature federated environments
• High-Performance Analytical Platforms– Massively parallel (MPP) databases, ETL work streams
• Robust data acquisition and profiling products
• Closed loop processing– Analytic products feed back to OLTP
(continuous, stream-oriented query processing)
– Business Services Support (SOA)
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The five (5) keys for success
• People, not Technology
• Process, not Project
• Value, not Cost
• Insight, not Data (Data ≠ Information)
• Think out of the box
People - Insight and Visibility
Customer support repCustomer support rep
“I need better access to information to make better decisions on cross-sell and up-sell opportunities.”
“I need to have the right demographic information so I can better target my opportunity prospecting.”
Sales repSales rep
Chief executive officer (CEO)Chief executive officer (CEO)
““I need to know that the people in my I need to know that the people in my organization have the right goals in place organization have the right goals in place to understand to understand and execute on the execute on the strategic initiatives of the company.strategic initiatives of the company.””
VP, operationsVP, operations
“I need better visibility into my cost of operations so I can target specific cost reduction opportunities that won’t have a negative impact.”
Chief financial officer (CFO)Chief financial officer (CFO)
““I need to improve our analytics I need to improve our analytics capabilities so we so we can understand our current business performance can understand our current business performance and do a better job of planning for the future.and do a better job of planning for the future.””
Source: “Creating the Office of Strategy Management” by Robert Kaplan and David P. Norton, Harvard Business School, April 2005
VP, sales and marketingVP, sales and marketing
“I need better visibility into our pipeline performance so I can focus on deals that help me grow business with my most profitable customers.”
Gross Margin?Profit Margin (EBIT, EBITDA, NOPAT)?Operating Expenses?Asset Turnover?Working Capital Management?GMROI?Actual Employee Turnover Costs?
Debt to Asset Ratios?Debt to Capitalization?Interest Coverage?Burden Coverage?Cash Flow? Cash Flow / Share?Return on Total Net Worth?Return on Common Equity?
Earnings Per Share?Share Prices Appreciation?Dividends Per Share?Price to Earning Ratio?Market Book Value?Value Drivers?
Our Market Share?Effectiveness of Campaigns?Selling Together?Not Selling Well?Selling in What Market?
My Customers?Their Competition?My Next Sales Opportunity?What is Selling Now?
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People – What Is Needed
• Address the human-side systematically
• Obtain top level support
• Involve every layer
• Clearly communicate the business case
• Create ownership, install change agents
• Clearly and continually communicate the message
• Assess the cultural impacts and issues
• Prepare for the unexpected
• Define WIIFM (What's in it for me?) for each role or individual
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Distinguish casual users from power users
Source: The Data Warehousing Institute, Wayne Erickson, February 2009
Monitor, Analyze, and Drill to detail
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Match Profiles to Tool Categories
Analytic Profile % Users Users Type of Activity Type of User Optimal Tool Category Important Functionality
Miners 3% 3 Creating Statistical
Models
Statistician Data Mining Tools (neural networks,
decision trees, statistical analysis, etc.)
Workbench that supports model
development lifecycle: Database
integration
Developers 7% 7 Create reports,
queries, OLAP cubes,
applications
Programmer, Systems
Analyst, Technology
Savvy Business Analyst
Ad hoc query tools, reports writers, OLAP
tools, development tools
Query complexity, rapid development
and testing, source data access, report
broad- and select-casting
Explorers 10% 10 Analyze large
amounts of data or
data with lots of
attributes in an
interactive,
exploratory fashion
Business Analyst,
"Power Users"
Relational OLAP Performance scalability, analytical
breadth and depth
Planners 20% 20 Perform "what if"
analyses to create
budgets or planning
assumptions in order
to run a department
Managers Spreadsheets, Desktop OLAP, Multi-
Dimensional OLAP, Custom Applications
Read/write capability, collaboration,
integration with Excel
Reviewers 40% 40 Review a consistent
set of data on a
consistent basis, and
drill down to more
detail only when
something in awry in
the data
Managers, Executives,
Customers, and
Suppliers
Interactive reports (parameterized
formatted reports, pivot tables, or OLAP
views that users filter against)
Exception alerts, personalized delivery,
ease of use
Gatherers 20% 20 Retrieve a specific
piece of data in near
real-time to perform a
specific business
process
Customer Service
Representatives,
Administrative Workers
Custom applications, etc. Ease of use, sub-second response
times, reliability
14Confidential and Proprietary
Think Process, Not Projects
Design Chain Operations Reference
(DCOR) v1.0
Research IntegrateDesign Source DeliverMake
Product Design Chain Supply Chain
Program Design Chain Cycle Time Order Fulfillment Cycle Time
Customer Requirements
Bill of Materials, Specification
Product
Program and Operational
Business Plan
Supply Chain Operations Reference
(SCOR) v9.0
Product Development Global Operations
Product Lifecycle Management
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Reduce Action Latency
Planning, analysis, decision and execution cycles are accelerating
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Deliver value to meet business needs
Source: The Data Warehousing Institute, Wayne Erickson, February 2009
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Right tools for the right job
Purchase Analytic BI tools that are not too complex for casual users but are sophisticated enough for power users.
Source: The Data Warehousing Institute, Wayne Erickson, February 2009
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33%
23%
77%
40%
36%
65%
8%
23%
Have significant decision-support/analytical
capabilities
Value Analytical insights to a very large extent
Have above average analytical capability within
industry
Use analytics across their entire organization
Source: Competing on Analytics, Thomas Davenport
Insight – The Competitive Edge
Low Performers
High Performers
High performing companies are more likely to use analytic information strategically
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Think out of the box
Source: FMS Advanced Systems Group, Sentinel Visualizer
• Find hidden relationships • Identify clusters and patterns quickly • Perform ad-hoc analysis, and test theories and scenarios • Organize complex networks into manageable groups• Geospatial Visualizations
23
IDEAL Method
Initiating
Diagnosing Establishing
Acting
Learning
ProposeFutureActions
AnalyzeandValidate
Pilot/TestSolution
CreateSolution
Develop Approach
Set Priorities
DevelopRecommendations
Characterize Current and Desired
States
CharterInfrastructure
BuildSponsorship
Stimulus for Change
Set Context
ImplementSolution
RefineSolution
Plan Actions
Roadmap for
Management
Improvement
Initiative
Assessment
Roadmap
Initiative
Projects
The IDEAL(SM) Model
The IDEAL model is an organizational
improvement model that serves as a
roadmap for initiating, planning, and
implementing improvement actions.
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Creating the Road Map
1. Current State Review 2. Future State Definition 3. Initiatives Definition 4. Initiative Prioritization
Business
Objectives
Functional
Needs
High Impact
Business
Processes
Org and
Process
Improvement
Cost and
Complexity
Drivers
Functional
Initiatives
Outputs From Current
State Field Work
Performance
Targets
Guiding
Principles
Architectural
Imperatives
Organization
Initiatives
Organizational
Initiatives
Process
InitiativesRoadmap
The process will focus on
placing business
objectives, initiatives and
projects on the roadmap
1.
2.
3.
4.
5.
5. Roadmap Development
1.
2.
3.
4.
5.
Biz and Tech
Artifacts
Recommendations
Gap Analysis
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How to get started
• Evaluate incremental improvements to existing architecture and enabling technology – leverage what you already have
• Ensure you have the capability to deliver– Aligned with agreed strategy and goals
– Supporting organization is well defined
– Processes (vertical through planning and budgeting, or horizontal through lateral relationships (matrix) exist or can be adopted to meet the new platform
– Leverage key people and core competencies
– Performance measures and rewards match intent
• Supporting business case is sound and defensible
• Mitigate or minimize technical and design debt in the design and adoption of the new platform (http://c2.com/cgi/wiki?TechnicalDebt)
30Confidential and Proprietary
Ensure you have the capability to deliver
Do not try to build a system whose complexity
exceeds the organization's capabilities
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Develop a supporting business case
Table of contents
1. Executive summary
Background
2. Current business
Description/economics
3. Proposed project
Description/strategic fit
4. Options evaluation
5. Timescale and investment
analysis
6. Standard management practices
7. Appendices
Supporting material
• Analysis of benefits• Analysis of costs• Financial spreadsheet• Metrics – ROI, NPV, etc.
• Risk analysis and mitigation• Alignment• Project change mgmt• Quality assurance• Project finance• Reporting• Governance
33Confidential and Proprietary
A word about technical debt…
• Metaphor developed by Ward Cunningham…
• Doing things the quick and dirty way sets us up with a technical debt, which is similar to a financial debt
• Like financial debt, technical debt incurs interest payments in the form of the extra effort in future development due to the quick and dirty design choices.
• We can:
– Choose to continue paying the interest, or
– Pay down the principal by refactoring the quick and dirty design into a better design. Although it costs to pay down the principal, we gain by reduced interest payments in the future.
Questions and reference links
• Beyond Reporting - Delivering Insights with Next-Generation AnalyticsTDWI 2009, Wayne W. Eckerson
• Technical Debt (Ward Cunningham)http://c2.com/cgi/wiki?TechnicalDebt
• Applied Enterprise ArchitectureJames Parnitzkehttp://www.pragmaticarchitect.wordpress.com
• Creating the Office of Strategy Management Robert Kaplan and David P. NortonHarvard Business School, April 2005
36Confidential and Proprietary
Mr. Parnitzke is a hands-on technology executive, trusted partner, advisor, software publisher, and widely recognized database management and enterprise architecture thought leader. Over his career he has served in executive, technical, publisher (commercial software), and practice management roles across a wide range of industries. Now a highly sought after technology management advisor and hands-on practitioner his customers include many of the Fortune 500 as well as emerging businesses where he is known for taking complex challenges and solving for them across all levels of the customer’s organization delivering distinctive value and lasting relationships.
Contact:j.parnitzke@comcast.net
Blogs:Applied Enterprise Architecture (pragmaticarchitect.wordpress.com)
The Corner Office (cornerofficeguy.wordpress.com)
Data management professional (jparnitzke.wordpress.com)
Essential Analytics (essentialanalytics.wordpress.com)
The program office (theprogramoffice.wordpress.com)
Blue Print for Next Generation Analytics
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