business intelligence yatzek mouyal malam systems ltd
TRANSCRIPT
Business Intelligence
Yatzek Mouyal
Malam Systems Ltd.
Agenda
Introduction
Business Intelligence Explained
How to Measures Success
The Enablers of Business Intelligence
Business Intelligence in the real world
Demonstration
Summery
Q & A
Business Intelligence Is…
An Attitude
at·ti·tude n.
A state of mind or a feeling; disposition.
A Management Philosophy
The belief that a rational fact-based approach to decision making is the right way to run an enterprise
A wonderful thing
Business Intelligence gives the power to control the future
Start with a Vision
What is our mission/goal?
A mental model explains how things work; how thing interrelate; describe cause and effect relationships.
Grounded in a mental model, strategy is the plan to reach the goal.
While a mental model is a simplification of reality, the model highlights what we think is important. The focus is on what is most important and most different.
Man tries to make for himself in the fashion that suits him best a simplified and intelligent picture
of the world. –Albert Einstein
Imagination is more important
than knowledge. –Albert Einstein
What is Success?
To harness the power of Business Intelligence we must devise a system of measurements …
We call these “Key Performance Indicators”
Not just $ - this is too coarse
Not just outputs – drivers also
Try to quantify cause and effect relationships
Combination of subjective and objective factors
Combination of quantifiable and qualitative
Many authors address this issue:
See any book on Balanced Score Cards
Key Performance Indicators
The corporate mental model provides the foundation for identifying key measures and targets against which progress can be measured.
The act of measurement changes organizational behavior.
Metric warfare is a good thing.
You cannot manage what you do not measure. – Carl Lindenmeyer.
Who are Decision Makers?
Number of decisions
Tactical
Executives
Middle Management
Operations
Analysts
Strategic
Decision makers are at every level of the organization
Local decisions are more immediate, more relevant
The Role of Business Intelligence
Create and validate mental models so people can take thoughtful action
Move the organization toward a single shared model, but allow for multiple, overlapping models which compete for survival
Measure and improve performance against a plan with visibility at all levels of the organization
Business intelligence and business management are two separate components that must work together to foster strategic decision support and tactical decision-making.
– Claudia Imhoff
Decision-Making Approach #1: Guess and Hope
Information Poor Missing Data Old Data Too Much Data
Quick and dirty Manual Disposable
Reactionary Short-term Limited value
The Business Intelligence Cycle
A continuous cycle of performance improvement
The analysis of information leads to insights or hunches
These suggest ways to improve the business; when acted on, the effects can be measured
These measurements can be analyzed to see what works
Decision-Making Approach #2: Follow a Process
Integrate decision-making with strategic goals
Analyze for cause and effect
Take thoughtful action
Measure results
AN
ALY
SIS
INSIGHT
ACTION
MEASUREM
ENT
BusinessIntelligence
The Business Intelligence Cycle: Analysis
Data From Many Sources Is Consolidated For Freestyle Analysis
Decision-Makers Test Assumptions About Operation Of The Business
Users Ask and Answer Many Questions Rapidly
Ask many questions
Analysis
The Business Intelligence Cycle: Insight
Insight Is The Discovery Of Patterns That Humans Recognize As Useful
Insight Into The Business Can Be Shared With Others And Provides Opportunities For Action
InsightDiscover useful patterns
The Business Intelligence Cycle: Action
Action Follows Better And Faster Decisions Made Possible With BI
Action Backed By Strong Analysis Is Clear In Purpose And Gathers Stronger Organizational Support
ActionMake and follow a plan
The Business Intelligence Cycle: Measurement
Results Are Measured Against Quantitative Standards And Launch A New BI Cycle
Key Performance Indicators Measure The Metrics, Measures, And Activity Drivers That Managers Need On A Frequent Basis
Use results to test assumptions
Measurement
Enablers of Business Intelligence
Technology
People
Organization Culture
About Technology
Advances in processing power, data volumes, & costs enable BI for the masses
A BI Platform is inevitable
Specialized Software
Networks enable broad distribution
Standards enable interoperability
Questions Spanning Data Sources – requires integration platform
SALES(SAP)
ID: 54321NAME: Mike SmithDATE: Jan 15, 2000SALES: $4,300
ID: 12345NAME: Michael J SmithDATE: Jan 15, 2000HOURS: 8
BIPlatform
HR(Peoplesoft)
Questions Spanning Time
Sales 1995 Plan ActualDomestic 450 475International 550 600Total 1000 1075
Sales 1996 Plan ActualDomestic 500 525International 550 600Total 1000 1075
Sales 1997 Plan ActualDomestic 525 500International 550 600Total 1000 1075
Sales 1998 Plan ActualDomestic 550 575International 550 600Total 1000 1075
Sales 1999 Plan ActualDomestic 600 675International 550 600Total 1150 1275
Queries which summarize years of data slow operational systems to a grind.
Questions Spanning Dimensions
Sales Staff Products States Months Indicators Combinations
10 10 1 100
Anderson Barrett Bennett Larry Leonard Mark Michelle Queen Quinn Richards
Polo Collared T-Shirt $519,852 $452,671 $330,320 $315,835 $323,469 $210,144 $353,579 $280,656 $410,558 $396,148
Long-sleeved Crewneck T-Shirt $541,153 $370,237 $346,243 $285,215 $292,146 Discontinued $457,036 $281,556 $549,625 $430,634
E-Watch $271,921 $284,760 $215,578 $175,757 $163,762 Discontinued $277,224 $134,910 $268,694 $286,949
Suede Stretch Dress $177,215 $112,602 $91,510 $115,075 $67,660 $69,702 $108,577 $105,729 $101,508 $102,026
Blazer $153,580 $66,739 $41,533 $121,707 $37,779 Discontinued $108,775 $61,313 $73,145 $106,643
Herringbone Cardigan $131,564 $49,572 $60,093 $63,248 $52,085 $533 $96,429 $73,878 $97,866 $84,151
Sports Bag $125,119 $62,398 $41,949 $66,812 $38,385 $38,293 $55,072 $41,275 $93,404 $82,028
Rose Leaf Patterned Viscose Scarf $89,168 $58,277 $37,813 $48,025 $42,351 Discontinued $55,667 $39,312 $91,988 $49,518
Milanese Stitch Shirt $56,897 $70,636 $30,785 $52,379 $35,504 $44,902 $62,258 $39,755 $68,572 $48,622
Whisky Dancer T-Shirt $61,408 $79,909 $33,080 $40,435 $38,836 $33,551 $46,392 $39,300 $51,319 $45,720
Two Dimensions
Questions Spanning Dimensions
Sales Staff Products States Months Indicators Combinations
10 10 1 100
10 10 50 1 5,000
Washington
Anderson Barrett Bennett Larry Leonard Mark Michelle Queen Quinn Richards
Long-sleeved Crewneck T-Shirt $403,419 $293,738 $277,070 $241,843 $233,426 Discontinued $356,714 $218,365 $401,852 $346,293
Polo Collared T-Shirt $135,678 $126,120 $110,992 $102,966 $105,931 $103,023 $129,735 $82,087 $107,025 $131,516
Sports Bag $98,776 $49,595 $35,780 $53,902 $30,577 $32,551 $44,814 $34,970 $73,214 $62,991
Fabric Sampler $111,913 $17,109 $21,843 $62,643 $15,885 $15,486 $59,899 $24,959 $28,968 $73,375
Milanese Stitch Shirt $43,286 $55,429 $25,895 $40,839 $31,593 $37,623 $49,024 $32,979 $57,737 $40,074
Striped Turtleneck $116,031 $28,543 $15,562 $51,289 $16,172 $20,506 $36,709 $24,978 $38,810 $45,898
Pleated Skirt $53,294 $24,721 $14,240 $26,625 $17,933 $25,930 $39,710 $21,618 $32,679 $33,158
Long-Sleeved Crewneck T-Shirt Discontinued Discontinued Discontinued Discontinued Discontinued $261,688 Discontinued Discontinued Discontinued Discontinued
Long-sleeved Missoni T-Shirt $46,341 $18,800 $7,972 $40,754 $13,166 $20,923 $40,167 $23,759 $23,100 $20,175
Suede Stretch Dress $27,246 $28,181 $22,895 $28,846 $16,291 $24,286 $26,697 $22,029 $23,764 $24,028
Three Dimensions
Questions Spanning Dimensions
Sales Staff Products States Months Indicators Combinations
10 10 1 100
10 10 50 1 10,000
10 10 50 360 1 3,600,000
AndersonBarrett
BennettLarry
LeonardMark
MichelleQueen
QuinnRichards
Dec
embe
r
Nov
embe
r
Oct
ober
Sep
tem
ber
Aug
ust
July
June
May
Apr
il
Mar
ch
Feb
ruar
y
Janu
ary
2001
$150,000
$300,000
$250,000
$200,000
$0
$50,000
$100,000
Four or More Dimensions
The Cube
AveUnits
Sales Dollars
SalesUnits
Net Price
Measures Dimension
Produ
cts D
imen
sion
Q4
Q3
Q2
Tim
e D
imen
sion
Cingular Home 50
CorporateInternational
Q1
Specialty Retail
Measures Dimension
Produ
cts D
imen
sionQ4
Q3
Q2
Tim
e D
imen
sion
Golf
CorporateInternational
Q1
Specialty Retail
Querying a Cube
AveUnits
Sales Dollars
SalesUnits
Net Price
1000
Golf
Measures Dimension
Produ
cts D
imen
sion
Q4
Q3
Q2
Q1
Tim
e D
imen
sion
Specialty RetailCorporate
International
Defining a Cube Slice
AveUnits
Sales Dollars
SalesUnits
Net Price
About Analysis
Top-down approach typical but not essential
Multi-dimensional analysis
Speed of thought response creates an experience of a different kind
OLAP is multi-dimensional analysis at the speed of thought
Contrary to some vendors BI is more than technology and more than OLAP
AndersonBarrett
BennettLarry
LeonardMark
MichelleQueen
QuinnRichards
Dec
embe
r
Nov
embe
r
Oct
ober
Sep
tem
ber
Aug
ust
July
June
May
Apr
il
Mar
ch
Feb
ruar
y
Janu
ary
2001
$150,000
$300,000
$250,000
$200,000
$0
$50,000
$100,000
A Business Intelligence PlatformA Business Intelligence Platform
Collect with ETL
Operational Data Store,
Data Staging or Data Warehouse
Distribute with ETL
Data Marts, Cubes or Data Mining
CRM
Sales
Legacy
HR
Finance
Analysis, Reporting, or Query
Extract
Cleanse
Load
Data Warehouse
Summarize
Distribute
CRM
Sales
Legacy
HR
Finance
The Aspirity Approach
ETL/Data Mgmt is a long term asset
Rapid development of customer driven data marts
MD OLAP cubes provide response time that is independent of data warehouse size
Extract
Cleanse
Load
Data Warehouse
Summarize
Distribute
CRM
Sales
Legacy
HR
Finance
Rapid Application Development
Requirements: work right to left Construction: work left to right Rapid iterative cycles of builds Don’t build a Data Landfill Remember why you’re doing this – find a killer performance metric
Data Quality
Data Quality issues are your biggest challenge
Data Quality issues grow exponentially with the number of source systems
“Similar” dimensions are the hardest
Your biggest ROI comes from metrics that span multiple source systems
Extract
Cleanse
Load
Data Warehouse
Summarize
Distribute
CRM
Sales
Legacy
HR
Finance
The User Interface
Query tools: life span is 12 to 24 months Largest investment is often user learning Browser based solutions can dramatically reduce deployment
costs for occasional users Consider a heterogeneous approach
Ranking Opportunities
Group requirements into opportunity areas Product Margin Analysis Sales Analysis
Grade opportunities by importance Actionability of Information Materiality of Impact Tactical Vs Strategic Focus
Grade opportunities by difficulty Cross-functionality of Design Existence and Accessibility of Data Complexity of Calculations
Developing an Implementation Strategy
Set Specific Goals Phased Approach Quick Wins with High Value First
Build a Prototype Design from Requirements, Not Data Structures Solicit User Feedback Frequently
Construct Production Platform Test Each Component with Small Volumes Scale Up Incrementally
Train the Users Provide Training for the Tool and the Data Institutionalize System Usage
Technology Demonstration
Question & Answer Session