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Road to Success in Business IntelligenceRoad to Success in Business Intelligence

Presented ByPresented ByFrank SilvaFrank Silva

February 20, 2010February 20, 2010

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The term BI is dualistic.The term BI is dualistic.

The relevant information and The relevant information and knowledge describing the business knowledge describing the business environment, the organization itself environment, the organization itself and its own situation in relation to its and its own situation in relation to its markets, customers, competitors and markets, customers, competitors and economic issues.economic issues.

The process that produces the The process that produces the intelligence described.intelligence described.

What is Business IntelligenceWhat is Business Intelligence

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Organizations are realizing that Organizations are realizing that there is more to BI than simply there is more to BI than simply deploying technology.deploying technology.

BI starts from business and ends up in business BI starts from business and ends up in business

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Right informationRight information• Provide contextual information to aid decision makingProvide contextual information to aid decision making• Provide role-specific views of dataProvide role-specific views of data• Information should provide value to the subscriber Information should provide value to the subscriber • Actionable dataActionable data• Clean dataClean data

RightRight timetime• Data, Analysis, Decision and Action LatencyData, Analysis, Decision and Action Latency• On-demandOn-demand• Alerts and notificationsAlerts and notifications• Decisions and actions at the right timeDecisions and actions at the right time

Right PersonRight Person• StrategicStrategic• TacticalTactical• SupervisorySupervisory• Front-line workersFront-line workers• Individual focusedIndividual focused

Right information, at the right time to the right personRight information, at the right time to the right person

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Business Value -------------------1Total Latency

As companies struggle to survive in today’s competitive environment, the winners will be those

that understand their customers more intimately and that react faster and smarter than the competition.

Zero Latency OrganizationsZero Latency Organizations

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A Well-balanced BI ActivismA Well-balanced BI Activism

BI ActivismBI Activism

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Road to Success – Evolutionary Road to Success – Evolutionary ProcessProcess

BI ActivismBI Activism

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Phase IPhase I

• Strong C-level SponsorshipStrong C-level Sponsorship• BI Program (2-3 years) with a clear roadmapBI Program (2-3 years) with a clear roadmap• Build up Information CultureBuild up Information Culture• Well architected Enterprise Data WarehouseWell architected Enterprise Data Warehouse• Right Technology, Standards and Best PracticesRight Technology, Standards and Best Practices• Master Data Management, Data GovernanceMaster Data Management, Data Governance• Strong Technical LeadershipStrong Technical Leadership• Highly Skilled BI ResourcesHighly Skilled BI Resources• Historical data serving strategic and tactical Historical data serving strategic and tactical

managementmanagement• Define and Measure BI SuccessDefine and Measure BI Success

Roadmap to Success in BIRoadmap to Success in BI

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Well Architected Enterprise Data Warehouse, Standards, Best PracticesWell Architected Enterprise Data Warehouse, Standards, Best Practices

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Phase IIPhase II

• Strong C-level SponsorshipStrong C-level Sponsorship• BI GovernanceBI Governance• Strategic AlignmentStrategic Alignment• BI Program (2-3 years) with a clear roadmapBI Program (2-3 years) with a clear roadmap• Serve all levels of the organization (strategic, tactical, Serve all levels of the organization (strategic, tactical,

operational)operational)• Historical as well as real-timeHistorical as well as real-time• Operational BIOperational BI• Business Performance Management (BPM)Business Performance Management (BPM)• Business Activity Monitoring (BAM)Business Activity Monitoring (BAM)

Roadmap to Success in BIRoadmap to Success in BI

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Material CouncilSuppliers – Direct (production material), indirect, freightSpend by commodity, customer, products, supplierHistorical purchasing patterns, Quality of products receivedIn deciding which suppliers to keep or to award more business,Kimball is using scorecards rating suppliers on cost, quality,delivery, services and technological advancement. Essentially,the company looks at total cost of ownership and supplier commitment.Supplier commitment

Reduced 3% - 4% Cost of Material

1500 suppliers but 75% of spend with 50Increase this %

Strategic Alignment of BIStrategic Alignment of BI

An Example

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• Set of management and analytic processes, supported Set of management and analytic processes, supported by technology, that enable businesses to define strategic by technology, that enable businesses to define strategic goals and then goals and then continuously measure and managecontinuously measure and manage performance against those goals.performance against those goals.

• Creating and sustaining processes for successful Creating and sustaining processes for successful strategy executionstrategy execution, connecting processes, people, and , connecting processes, people, and performance performance from workroom to boardroomfrom workroom to boardroom..

• Strategic PM, Tactical PM, Operational PMStrategic PM, Tactical PM, Operational PM

Business Performance management (BPM)Business Performance management (BPM)

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• Business process (a strategic asset) is a set of Business process (a strategic asset) is a set of coordinated tasks and activitiescoordinated tasks and activities, conducted by both , conducted by both people and equipment, that will lead to accomplishing a people and equipment, that will lead to accomplishing a specific organizational goal.specific organizational goal.

• Improve the Improve the speed and effectivenessspeed and effectiveness of business of business operations.operations.

• Faster reactionFaster reaction is the key to operational effectiveness. is the key to operational effectiveness.• MonitorMonitor, , decidedecide and and react fastreact fast on on critical business critical business

operationsoperations..• Expensive to implement in high-volume and low-latency Expensive to implement in high-volume and low-latency

environments.environments.• Not all processes need BAM, need to identify Not all processes need BAM, need to identify critical critical

processesprocesses..• Not all critical processes need real-time data (Not all critical processes need real-time data (right-timeright-time). ). • Need to identify Need to identify business benefitsbusiness benefits of applying BAM on of applying BAM on

processes.processes.• BAM must be interfaced with EDW/BI.BAM must be interfaced with EDW/BI.• BAM is not just about technology.BAM is not just about technology.

Business Activity Monitoring (BAM)Business Activity Monitoring (BAM)

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•Need to be defined at three levels: Need to be defined at three levels: strategic, consumer, BI process strategic, consumer, BI process

•Need to be measuredNeed to be measured•Need to be shared with the rest of the Need to be shared with the rest of the

organizationorganization

What is success in BI?What is success in BI?

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•Strong sponsorshipStrong sponsorship•Business FirstBusiness First•Business/BI Alignment Business/BI Alignment •Information CultureInformation Culture•Best PracticesBest Practices•Right Information at the Right Place at Right Information at the Right Place at

the Right Timethe Right Time•Measure SuccessMeasure Success

To be Successful in BI?To be Successful in BI?

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What is success in BI?What is success in BI?