What Business Managers Need to Know About BI

Evan LevyPartner and Co-Founder Baseline Consulting Group

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Baseline Consulting is a multi-vendor systems integration firm specializing in BI and CRM

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• AT&T• A&P• AARP• American Express• Bank of America• BankOne • BellSouth• Boeing• CheckFree• Coca Cola• Delta Air Lines• eBay• Equifax• Experian• Ford Motor Company• Georgia Pacific• Getty Images• Harley Davidson• Kroger• The Limited• Mattel

• McDonald’s• MCI• Monrovia• Nationwide Insurance• Qwest• Unum-Provident Insurance• Sabre• Smith + Noble (Cornerstone Brands)• Southern California Edison• SBC/Pacific Bell• Southwest Airlines• State Government (AZ, FL, IA, MI, NY, UT)• St. George Bank• Toyota• Travelocity• Verizon/Verizon Wireless• Victoria’s Secret• Wells Fargo• Wellpoint• Zions Bank

What Do They Have In Common?

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Agenda

• The changing BI landscape

• Secrets of BI success

• What to do next with your BI initiative

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What’s Changing?

ERP

Real-Time Enterprise

Business Performance Management

CRM

E-commerce

Target Marketing

Knowledge Management

Call Center Automation

ERP

New applications

are driving the need for data

like never before!

Most of the leading software“packages” weren’t

created for analytics.

Integrated data drives

operational and strategic benefits.

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What’s Driving the Need to Change?

• Integrated business analysis Programs• Six sigma

• Balanced scorecard

• Sarbanes Oxley, risk, audit...

• Business performance monitoring/ Business activity monitoring

• Supply chain Management/integration

• Multi-channel sales/service analysis

• ERP

• “Single version of the truth”

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Key Point

A company’s ability to use information

strategically is directly correlated to the degree to which

the data is integrated.

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Why Change?

Traditional IT systems focused on running the business, not analyzing it. They can’t answer:

• What’s the customer’s value (does that include sales, support, & finance)

• Compare the compensation plans to a given product category’s revenue growth

• Compare the customer’s purchases and returns over the last 5 years

• How does our cost of sales correspond to customer profitability?

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The BI Pyramid: Analytics Evolving

Standard Queries

Modeling/SegmentationComplexity

KD

StrongHypothesis

ModerateHypothesis

MildHypothesis

NoHypothesis

Multi-Dimensional

©2001, Baseline Consulting Group, All Rights Reserved

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Aligning BI to StrategyWhat We Need to Know Until Then, We’re…

How much capacity do we really need (based on actual

customer usage)?

Building out and pre-purchasing bandwidth.

Spending millions on brand awareness.

Understand product purchases for product positioning/marketing.

Know who our customers are, profile and segment

them.

Selling products to the business customers with

the worst financials.

The “hot spots” for service and support.

Trying to keep up with our backlog of trouble

tickets.

R&D

Marketing

Strategy

Analysis

Understand our markets and our potential differentiation.

Aggressively reacting to our (perceived)

competitor.

Service

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The Company Conflict

Sales

Contact ManagementSales/Pipeline ManagementCompensation

Win/Loss AnalysisSales Information

Call Center Automation

TeleSales ScriptingEmail Routing &

ManagementOnline

Communications

Finance

Sales/Revenue ForecastingPurchasing

AR/AP systemsFraud Identification

Audit Financial Review

Production ManagementApplication Operations

Network Infrastructure

Desktop PlatformsApplication ArchitectureLOB Initiative

Support

Marketing

Outbound Message MgtMarket Plan Dvmnt.

Competitive TrackingCustomer TargetingSegment AnalysisCustomer Profiling

CustomerSupport

Candidate Organizations

MarketingSalesExecs Customer

ServiceFinance

Field Services

Strategic Planning

Information Technology

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The Enterprise Quandary

• Governance model is organizationally based

• Funding typically focuses on line-of-business initiatives

• Management responsibilities are organizationally centric

• Business mandates are enterprise oriented

Sales

Contact ManagementSales/Pipeline Management

CompensationWin/Loss AnalysisSales Information

Call Center AutomationTeleSales Scripting

Email Routing & Management

Online Communications

Finance

Sales/Revenue ForecastingPurchasing

AR/AP systemsFraud Identification

Audit Financial Review

Production ManagementApplication OperationsNetwork Infrastructure

Desktop PlatformsApplication ArchitectureLOB Initiative Support

Marketing

Outbound Message MgtMarket Plan Dvmnt.

Competitive TrackingCustomer TargetingSegment AnalysisCustomer Profiling

CustomerSupport

Candidate Organizations

MarketingSalesExecs Customer

ServiceFinance

Field Services

Strategic Planning

Information Technology

Sales

Contact ManagementSales/Pipeline Management

CompensationWin/Loss AnalysisSales Information

Call Center AutomationTeleSales Scripting

Email Routing & Management

Online Communications

Finance

Sales/Revenue ForecastingPurchasing

AR/AP systemsFraud Identification

Audit Financial Review

Production ManagementApplication OperationsNetwork Infrastructure

Desktop PlatformsApplication ArchitectureLOB Initiative Support

Marketing

Outbound Message MgtMarket Plan Dvmnt.

Competitive TrackingCustomer TargetingSegment AnalysisCustomer Profiling

CustomerSupport

Candidate Organizations

MarketingMarketingSalesSalesExecsExecs Customer

ServiceCustomer Service

FinanceField

Services

Strategic Planning

Information Technology Sarbanes Oxley

Customer Value

Privacy

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Data Integration Takes Center StageFidelity is spending tens of millions of its IT budget to make all of its corporate data XML-compatible to eliminate up to 75% of the hardware and software devoted to middle-tier processing and integration... --InternetWeek.com

Up to 70% of IT resources are spent on building and maintaining connections between systems.

--Standish Group

60% of CRM implementation budget is spent on integration.”

--Computerworld

“The problem many banks face is that they have silos of customer information at different business units that they cannot link together…”

-- Union Bank of California

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Strategy Alignment in Action

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Data Warehouse

Member Details•Points Accrued and

Redeemed•Preferences•Tier Status•Location

MemberMember

Booking

Member Activity•Departure and Arrival •Cabin and Res Class•Distribution Channel•Service Preferences

Revenue

Member Revenue•Revenue / activity and

member•Point of Sale•Form of Payment

ServiceExperience

Member Experience•Complaints and Compliments•Lost Baggage•On-time Service

Travel

Member Travel• Members on board• No Shows• Members arriving

Strategic Analysis Capabilities

•Membership value models •Member Revenue by O&D•Retention / Attrition Analysis•Share of Wallet analysis

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Integration Still Fails…if you can’t deliver the

goods.

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0% 0% 0% 0% 0%

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Is Your Data Integrated?

1. We need to integrate data and are planning on it

2. Data integration is critical and it is required in each new implementation effort

3. We have an infrastructure that supports integrated data and its deployment

4. We have data silos but they haven’t caused much pain

5. Past integration efforts have failed—it’s left a bad taste in everyone’s mouth

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Do you Have the Single Version of the Truth?Customer

Profile

Accounts

Service History

Customer Value Score

Marketing Campaigns

Recent Activities

Events and Alerts

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What To Do Now… A BI Planning ChecklistEnsure that data sharing is part of every new

IT projectConsider a discrete data administration

function — evolve toward an information center of excellence

Formalize requirements gatheringDefine BI success metrics and start measuringCategorize end-user skill sets Institutionalize processes around data qualityStart quantifying ROI

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Thanks!

Baseline Consulting Group15030 Ventura Blvd, Suite

19-707Sherman Oaks, CA 91403

www.baseline-consulting.com(818) 906-7638

Data Warehouse Consulting.

CRM Services.

Executive Strategy Sessions.

Technical Staffing.

Business Intelligence.

www.baseline-consulting.com

EvanLevy@baseline-consulting.com