Business Intelligence (BI) Vision and Strategy

Sample Executive Summary

Background

• Instigated by CIO, Enterprise architecture set-up a terms of reference and asked for Business support to set-up a project team

Business Intelligence is not just Reporting• BI now – “Insight instead of Hindsight”

Capabilities of BI

Where we are now: Current Business Intelligence Competencies in <Your Company>

Your Company

Business Unit 1 Business Unit 2

Dept X

Business Unit 3

BI Manager and Team

Corporate Centre

Group Finance

Shared Service

HR

IT

Give a BI Competency Commentary for each business unit

Give a BI Competency Commentary for Shared Services

and IT

e.g. Financial reporting in can be very labour intensive

and there is an over reliance in Excel!

Where we are now:How much is this costing <your company>

• Include current IT Spend in BI• Any financial and HR reviews that quantified the

labour resource time doing reporting and analysis• Any products purchased by a specific BU and used by

that Business Unit only ( ideally one that the BU would be happy to get rid of!)

• How much time are people spending in Excel!

Looking forward: Many Initiatives requiring Business Intelligence

To handle these demands we need a BI Strategy for efficient and cost

effective delivery.Lets look to external best practice..

BI Demands

Propose A Vision : Example….

*

*BICC: Business Intelligence Competency Center Gartner

Where are we now ?

?

?

?

?

?

Next : Need get the basics right across the whole

company

Corporate Performance Management

Vision: Need to implement a BICCWhere are we going?

Corporate Performance Management requires a long journey and a serious investment

Corporate Metrics Framework

People

Processes

Data

Benefits

Requires largeinvestment

BICC

Is this too ambitious to achieve right now? Organisational changes and significant investment required. Business Units

would have concerns about losing autonomy

Business Intelligence Vision

Better BI Systems

More BI End-User

Capabilities

Better Productivity

and Capability

Implementation of Common BI Platform

Implementation of BICC

Better Collaboration

between Business and IT

Reduces the Business-IT Information

Gap

More Efficiency and Less

Data Quality Issues

BI Maturity

1.

2.

Getting the Basics Right: Provision of better BI and reporting capabilities allow non-IT staff to create reports themselves without needing IT. IT can focus their efforts in data compliance and generating critical reports for BUs. This will provide better use of business AND IT resources going forward.

Focus on harnessing our staff to develop the appropriate skills to be able to leverage this tools and to be better organised to handle the demand for business intelligence in the future. Also develop efficiencies in how BU and IT interact

Corporate Performance Management

COMMON BI PLATFORMStep 1 : GETTING THE BASICS RIGHT

Better BI Systems

More BI End-User

Capabilities

Better Productivity

and Capability

Implementation of Common BI Platform

Getting the basics right: Lack of BI Self Service capability, incurring high IT Costs

I have a question to

answer

My existing reports do not give me that

answer - I need a new report

Time spent defining

requirements with IT

Time spent developing

Report

Time spentTested report and verifying

data

The report raises another

question

Getting the basics right: Lack of BI Self Service capability, incurring high IT Costs

• Recommendations• IT to concentrate on reports that do not change often and are critical• IT to provide a more visual means of delivering reports and reduce the amount

of “Excelisation” of Warehouse data.• For the rest of the reports, need to Empower Business Users to create their

own reports, within the environment instead of outside the environment (Excel) by the deployment of BI Self Service Capabilities.

Getting the basics right :Help move staff up the BI value chain

How are we doing?

Are we compliant?

Why is my business performing this way?

How will my business perform in the future?

What would happen to our business if I make a particular change?

How can I best change my business model gain further competitive advantage?

65%

30%

5%

Value

Est. Time spent

Reporting

Analysis

ModellingAnd Analytics

• Recommendations• Need to increase skills in Modelling and Analytical to gain greater value of BI in

<Your Company>.

The Process of Management Reporting

• Staff, extract data from ERP and other systems on a monthly basis

• Using Excel, tables and charts are produced

Report data Inserted into Word with some commentary and Emailed to SMT

1 2

3

Report Creation Email Dissemination

Presentation created and presented to SMT

4

Presentation

Question is Asked

A member of the SMT asks a question about the report

5Question is Answered

Staff , using Excel and ERP spend time analysing data and finds answer to question.

Answer is added to report for next month

Report gets bigger

A new way of Management Reporting?

• The “How are we doing?” report , developed with IT is run in Data warehouse .

• This report will help us answer “Are we compliant?”

Report is emailed automatically to key stakeholders

1 2

3

Automated Report CreationEmail Dissemination

Analysts present a report with analysis to SMT

4Presentation

Analysis

A member of the SMT asks a question about the report or analysis

5 Question is Asked

Why is the business preforming this way?Analyst tries to do provide the

appropriate answers for the obvious questions

Automated

Why Questi

on

Analyst gets new Toolset to help provide

faster analysis

How will my business preform in the future?

What would happen to our business if I make a particular change?

How can I best change my business model gain further competitive advantage?

Modelling and Analytics6

Complex Question

IMPLEMENT A BICC IN THE BUSINESS SERVICES CENTER

Step 2

Implementation of BICC

Better Collaboration

between Business and IT

Reduces the Business-IT Information

Gap

More Efficiency and Less

Data Quality Issues

Business Intelligence Competency CentersPeople + Information = Intelligence

What is a BICC?

• What is a BICC?• A permanent, cross functional, formal

organisation structure that includes Business units and IT, to advance and promote effective use of business Intelligence to support the organisation’s business strategy (Infosys)

• Helps to• Business staff get a big picture of all the

systems used in a particular domain• Business increases their understanding

how the data is stored in their systems• IT to understand the business context of

the data• Overall improves Data Quality, Co-

ordination and Support

Gartner

How to Deploy BI across the Company

• The Problem

• Decentralised Approaches : Many business intelligence (BI) programs have departmental roots with analytical resources embedded in the business. This model worked well to service departmental needs, but lacked consistency of data definitions and measures across the organization.

• Centralised Approaches : Often, the IT organization stepped in to solve this inconsistency problem by establishing a central team to deliver BI. However, this overly centralized model lacks the agility and familiarity of the de-centralized model.

• The Solution – Gartner’s “Think Global – Act Local”

• Create an organizational model that balances centralized technology and architecture with a decentralized delivery and support model.

• Develop strong, two-way collaboration between the centralized BI team and the local delivery teams embedded in the business units

Creation of a BICCRecommendation : Creation of a new BICC reporting to Shared

Services Manager that will support and manage a new BI ServiceBI Role Global BICC Business Units

(Local BICC)

Business Domain Expertise

HR, Finance Relevant BU Domains – e.g. Customer, Sales, Marketing etc..

BI Power Users Yes Yes

BI Analysts Yes Yes

Mathematician/ Statistician

Yes Yes

IT Developers Yes Issues and Options to be explored

SO WHAT DOES THIS MEAN?Conclusion

Impacts of BI Strategy to Business Units

Key Impacts

• Empower Business Users with better tools to increase productivity and provide a more cost effective use of BI

• IT to provide better support for data management for Modelling and Analytics

• Utilising better BI tools to visualise and view reports

• Power Users can build their own reports without going to IT

• Using Analysis Tools instead of Excel

Impacts of BI Strategy to Business Units

Key Impacts

• Empower Business Users with better tools to increase productivity and provide a more cost effective use of BI

• IT to provide better support for data management for Modelling and Analytics

Focus on Compliance, use of Data-marts to support Modelling and Analytics

Data-martInputs

Model

Outputs

Impacts to IT - Implement Common BI Platform (€K)

• Hardware and Software Licensing • Self Service BI

• CAPEX : €K, OPEX : €K

– Better Data Management and integrity by the use of Data-marts

• CAPEX : €K, OPEX : €K

– Better Analysis Product Set• CAPEX : €K, OPEX : €K

• Implementation including Installation, Deployment, training and Proof of Concepts

Recommendations• Implement Common BI Platform

– Approve in principal the expenditure for a CIO sponsored project to deploy a more capable, agile and compliant IT BI platform, to provide common BI capabilities to all business units. This expenditure has been agreed in principal with the working group.

• Agreement on the creation of a BICC– Agree that the concept of an HR and Finance BICC should be included into the

plans of Shared Services. Need to work with the Business Units to agree how this BICC could work.

• Consider Corporate Performance Management in the future– Review in 2-3 years how best to move to the next step of implementing Corporate

Performance Management