Approccio e Roadmap per la razionalizzazione dei sistemi analitici Corporate: il caso DHL Express

Annual Meeting del FORUM ICT

LEAN IT
Approccio e Roadmap per la
razionalizzazione dei sistemi analitici
Corporate: il caso DHL Express
a cura di
Luca Quagini e Matteo Rossetti
SDG Group

20 novembre 2012, Fondazione CUOA
Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com

Agenda
Executive Summary: contesto e mandato
DHL Express: profilo azienda e profilo IT
Il Progetto “Lean BI”: approccio, roadmap e scelte
Tecnologiche
Funzionali
Organizzative
Take Aways

2

Executive Summary: il contesto [1/2]
Tutte le attività e risorse ICT necessarie per lo sviluppo e la manutenzione, insieme a
quelle per la gestione dell’infrastruttura di comunicazione e di esercizio degli applicativi,
sono state demandate ad una società del gruppo (ITS).

Presenza di due distinti centri (Praga e Kuala Lumpur) di competenza ed esercizio
della funzione ICT, in una sorta di “regionalizzazione” delle architetture e soluzioni
applicative: Europa e America (EUAM) vs. Asia Pacific e Emerging Markets (APEM)

Due sistemi standard centralizzati di billing, adottati da ciascuna country

Limitata standardizzazione dei sistemi ERP adottati da ciascuna country, nessuna
centralizzazione degli stessi

Sistema centralizzato (OPMS) di gestione e monitoraggio delle Operations lungo
tutta la Supply Chain per singolo shipment (dalla richiesta di pickup, al pickup, agli step
di attraversamento di ogni singoli gate/hub, fino alla delivery finale)

Integrazione di OPMS con i sistemi di billing, con attivazione di eventi (transazioni) in
funzione di ciascun checkpoint superato lungo la supply chain

3

Executive Summary: il contesto [2/2]
ICT staff - Corporate e Regional (EU, AM, APEM) - recentemente ridotti a poche
unità e focalizzati su competenze di Program/Project Management, di supporto
all’analisi funzionale dei requisiti di business e dedicati alla gestione dei progetti ICT
assegnati direttamente ad ITS e/o subappaltati da quest’ultima ad altri vendors.

Piena autonomia alle singole country nell’individuazione e implementazione di
soluzioni applicative locali, al di fuori dei sistemi di billing e OPMS (centralizzati).

Business IT (B-IT): si tratta di una funzione aziendale presente in ogni legal entity
(Country, Region, Corporate) e dedicata al ruolo di collegamento funzionale tra LoB
(Sales, Finance, Operations, Customer Service …) e dipartimenti ICT locali e/o la
struttura ITS globale.
B-IT Operations
B-IT Sales & Finance
B-IT Customer Service

4

Executive summary: Obiettivi del Progetto

BI & EDW Roadmap: keep it simple, keep it lean!

Semplificare e razionalizzare l’architettura funzionale e tecnologica di BI a livello
Corporate e Regional
Creare i presupposti per l’adozione della nuova piattaforma BI anche a livello
Country

Aumentare l’efficienza dei processi di fruizione e gestione della BI:
Fruizione:
riduzione time-to-delivery dei report e delle analitiche BI Self Service
riduzione degli errori manuali automazione
riduzione errori di comunicazione vocabolario comune
confidenza nelle metriche di business single version of the truth
Gestione:
riduzione del numero di sistemi/silos di BI
riduzione licensing costs
riduzione user support & application maintenance costs
aumento affidabilità: ridondanza, disaster recovery, load balancing
5

DHL e il gruppo Deutsche Post DHL

DHL is Part of the World's Leading Logistics Group, Deutsche Post DHL

It offers integrated services and tailored, customer-focused solutions for managing
and transporting letters, goods and information.
It comprises four divisions.
Express
Global Forwarding, Freight
Supply Chain
Global Mail
These segments operate under the control of their own divisional headquarters. The
Group management functions are performed by the Corporate Center.

Internal services which support the entire Group, including Finance Operations, IT and
Procurement, have been centralized. This consolidation enables DHL to increase the
flexibility of our business, improve service quality and leverage economies of scale and
cost benefits.

DHL's international network links more than 220 countries and territories worldwide.

6

DHL Express: Struttura
Head Office: Bonn, Germany
Revenue: Approx. 11.8 billion euros (2010: approx. EUR 11.1 billion)
Shipments: Approx. 468 million (TDI: 141 million)
Network: More than 220 countries and territories served // more than 500
airports served globally
Employees: Approx. 100,000
Customers: Approx. 2.5 million
Aircraft: Approx. 250 dedicated aircraft
Main Global Partner Airlines: Aerologic, Kalitta Air, Polar Air Cargo Worldwide, Southern Air
Commercial Flights: Approx. 1,760 daily flights (average; domestic and international)
Vehicles: Approx. 31,000
Facilities: Approx. 4,100
Service Points: 34,000
3 Global Hubs: Hong Kong, Leipzig, Cincinnati
15 Main Regional Hubs: Amsterdam, Bergamo, Brussels, Copenhagen, East Midlands (UK),
Frankfurt, London, Paris, Vitoria (Spain) // Bangkok, Singapore //
Bahrain, Dubai, Lagos // Panama
Global IT Centers: IT centers in Cyberjaya (Malaysia) and Prague (Czech Republic),
supporting the entire global network
Global QCC: Global Quality Control Center are located in Bonn (Germany), Leipzig
(Germany), Cincinnati (US) and Singapore (Singapore).

7

DHL express: Struttura BI & DWH
Corporate
Sviluppo stratificato e non organico di soluzioni dipartimentali: Siloed Data Mart
Replica incontrollata di informazioni sia anagrafiche, sia di metriche aziendale
Assenza di un business dictionary cross-funzionale comune
Piattaforme diverse e “regionalizzate” presso i due IT Center:
Praga: Teradata + IBM Cognos 8
Kuala Lumpur: Informix + IBM Cognos 7.x + PowerPlay Cubes
Fallimento delle precedenti inziative di Enterprise DataWarehouse

Regional
Implementazione di soluzioni custom estemporanee
Scarso utilizzo di strumenti di sintesi
Sistemi BI Regional pressoi due IT Center

Country
In alcuni casi: applicazione siloed presso IT Center
In generale: development, run e maintenance locale
Data Feed: da sistemi di billing (centrali) e/o ERP (locale)
Solo linee guida corporate su scelte tecnologiche e di piattaforma BI/DWH
landscape disomogeneo
8

Piattaforma DWH/BI - Prague
Many applications copy data from
different into their data mart
Almost each application is using
The same data is it‘s own BI Layer
stored in many
places on the
same Teradata
system

Data availability
Two major silos: and data
OPMS, DDWc freshness might
Many applications not support the
build on top of these needs of future BI

Data is being
processed in many
different ways
leading to a lack of
transparency

9

Global BI Ecosystem
• Solid foundation
> DWH pillars by Business Process: Commercial, Finance, Operations
> TD best of breed expertise and technology
• Highly fragmented
> Up to 100 items (ETL, Data Marts, Virtual Repository, Front-End Apps, Web
Applications, …)
> No standardization strictly applied
• Vertical by Process
> No horizontal layer serving different business processes
> BI apps developed regionally and adopted as best practice
> No single version of the truth
• Sub-optimized
> Act now! vs. Consolidated Global BI Tomorrow
> Difficulties on execution of Long Term Strategy
> Lack of Data Governance Partial data duplication
> Local and Regional BI sometimes not aligned with Global BI

10

Why BI Roadmap for DHL Express?

Optimization of Run Costs by Get more knowledge out of
consolidation of BI Systems existing information

Better and more detailed Give faster answer to all kinds
understanding of customers BI of questions
Roadmap
Get use of early warnings and
risk management To see challenges in context
Single
version
of the Truth
Analyse root cause and react
Information as a differentiator proactively

Optimize enabling BI systems Avoid the Babylonian Language
and business processes Tangle

Reduce costs and getting more lean

11

High Level estimate for Lean IT impact
Annual
0,1% Rule Quarterly
Facts Opportunities Leverage (estimation) Impact Impact

Bundling of product
New Cross- with service:
Sell/Up-Sell Information
opportunities management (i.e.
through cross- Event Management
divisional data (SMS), GoGreen
Certificates, Etc. 0,1% 2,62 Mio. Ca. 10 Mio.
Revenue growth growth per
Additional per Quarter
Customer develop- Year
2.620 Mio € New customers: ment: Special revenue
Revenue in Focused offers for High
campaigns on value customers;
Q1 (2010) granular and Development of
consistent data specific products,
Assumption: etc. REVENUE
95% of
Revenue =
costs (5% global process Identification of
cost Value drivers and
margin) management bottlenecks of
processes,
with insight as Monetary Network
basis visibility
0,1% 2,5 Mio. Cost Ca. 10 Mio.
savings per Cost savings
Cost Quarter per Year
Business Cross-divisional
savings
performance benefits through
holistic view and
Management better root cause
(Single view of analysis, Reduced
the business) Data Latency
COSTS
12

General BI Roadmap methodology
Phases Stream 1: Stream 2:
Data Sources and IT Infrastructure Processes and Business requirements
Status Quo • BI Landscape: Status Quo of analytical systems and of
• Focus on Business Users and core processes: requirements
operative Data Sources
and most important business questions
(as-is: current • Evaluation of existing BI KPI (Teradata Spidernet): Data
situation and status Volume, concurrent queries, Data complexity, Data Models, • Aggregated picture: IT Landscape , core processes, KPI and
metrics
quo of BI Landscape) Data Volume, flexibility, actuality and mixed workload
• Internal Analysis: Strategic directions of DHL Express for • External analysis: Trends in the market of courier eypress and
Target state Express business and their effects on BI parcel services and their influence on BI
• System evaluation based on Teradata „Spidernet“ • Competitor analysis: BI Strength and weaknesses, recognized
(to-be: requirement best practises
analysis) • Development of DHL Express BI Landscape along the
information evolution roadmap • Big Picture of BI-Solutions (BI Wish List) with KPI

Gap Analysis • SWOT of most important BI Systems, identification of value • Business needs prioritization: what needs to be addressed
drivers asap
(Identification of • Clustering of needs into short-, mid- and long-term needs
Business and IT • Identification and quantification of gaps along the Teradata
„Spidernet“ • Structured business BI needs
Gaps)

BI Scenarios • Creation of an assessment schema /including business and it
• Design of 3 scenarios to close the gaps. High-Level requirements
(Strategic alternatives description of efforts and investment (tangible and intangible)
• Agree upon the assessment schema
to fill the gap)

Evaluation • Identification of short-, mid- and long-term potentials of the
• Evaluation of Scenarios with focus on BI and Technology scenarios
(Benefit analysis of • Categorization of Scenarios (Focus: costs, migration efforts, • Sorting of the scenarios based on cost views
selected BI benefit horizons, etc.)
Scenarios) • Evaluation and selection of the BI-scenarios

BI Roadmap
• Detailed BI Roadmap based on the existing IT-Landscape
• Business case and action plan
(Business case and • Action plan, next steps and resources
action plan)

13

Two Major Cost Drivers

As-Is

Cost Driver #1 Cost Driver #2

Run Costs Resources Costs
(Redundancies and Inefficiencies) (Users and business processes)
• Methodology • Methodology
• BI-Landscape • Processes and Potential Opportunities
• Target global platform costs • Business Users & Organization
• Findings and actions • Operations
• Opportunities (Potentials) and outlook • Result

Estimate of costs savings and business improvement potentials

14

Run Costs fragmentation

BI Run Costs by Scope BI Run Costs by Process

2009 BSC: TOTAL Run Costs: XX M€/Year
2 main global sites (PRG, CBJ) charging 50% each
Many different technologies

15

As-is findings

Cost savings from immediate actions: Shut down, decommissioning, soft
migration and other actions.

Change of mindset required:
Cleaning up the garden vs. starting new projects

Warning: Any new BI development is now costly and can’t contribute alone to
! integration/consolidation/optimization.

CBJ: Still spring for best practices, but needs to be fully aligned and compliant
with Global BI strategy.

Finance:
INSIGHT adds Cost Transparency to Finance BI

Country DW/DM: Almost annual x.y Mio.€ run costs from BSC for local BI
applications and systems.

16

Cost Driver #1: actions

Further Investigations Actions
Focus on:
• Change Management
• Corporate Performance Management (CPM)
pervasive approach
Lean • Global BI Framework
Regional Reporting
/ Local BI BI Gov. &
landscape
Strategy
Demand
Management
Aviation BICC

Corporate data
CPM Tools model
Planning & Metadata layers
Budgeting EDW
BI Portal Gloabl vs.
Industry metrics Local
Medium Term Plan and analytics

17

Two Major Cost Drivers

As-Is

Cost Driver #1 Cost Driver #2

Run Costs Resources Costs
(Redundancies and Inefficiencies) (Users and business processes)
• Methodology • Methodology
• BI-Landscape • Processes and Potential Opportunities
• Target global platform costs • Business Users & Organization
• Findings and actions • Operations
• Opportunities (Potentials) and outlook • Result

Estimate of costs savings and business improvement potentials

18

Resources Costs: savings opportunities

Current BI Processes

Process Potential

10,00

5,00
Future BI Processes 0,00
User Potential
1 2 3 4 5 Senior
Manager
Power User Medium Light Consumer TOTAL

TOTAL Number of users per profile 500 users 1194 users 600 users 3848 users 7416 users
Average annual cost for 1 FTE 90.000 EUR 70.000 EUR 60.000 EUR 50.000 EUR 50.000 EUR
Cost per hour 45 EUR 35 EUR 30 EUR 25 EUR 25 EUR

Current Setup
Average weekly working hours for Processs 1-11 per User 5,50 h 36,00 h 15,70 h 10,13 h 3,50 h
Average annual working hours for Processs 1-11 per User 275 1.800 h 785 h 506 h 175 h

Structure of BI-User
Total annual working hours for user profile 137.500 h 2.149.200 h 471.000 h 1.948.050 h 1.297.800 h 6.003.550 h
Total Cost 6.187.500 EUR 75.222.000 EUR 14.130.000 EUR 48.701.250 EUR 32.445.000 EUR 176.685.750 EUR

Future Setup
Average weekly working hours for Processs 1-11 per User 2,00 h 18,35 h 4,00 h 3,14 h 1,38 h
Average annual working hours for Processs 1-11 per User 100 918 h 200 h 157 h 69 h
Total annual working hours for user profile 50.000 h 1.095.495 h 120.000 h 603.655 h 509.850 h 2.379.000 h
Total Cost 2.250.000 EUR 38.342.325 EUR 3.600.000 EUR 15.091.375 EUR 12.746.250 EUR 72.029.950 EUR

Reduction -3.937.500 EUR -36.879.675 EUR -10.530.000 EUR -33.609.875 EUR -19.698.750 EUR
-104.655.800 EUR
TOTAL

S e n io r M g r P o w er U ser M e d iu m L ig h t C on su m e r

O p e r a t io n s 100 200 0 0 4 .5 0 0

F in a n c e 100 457 0 924 8

S ale s 100 80 600 2 .0 0 0 2 .9 0 0

M a r k e tin g 100 0 0 0 0

P r ic in g 100 457 0 924 8

TO TAL
500 1 .1 9 4 600 3 .8 4 8 7 .4 1 6 1 3 .5 5 8

Result
C u r r e n t S e t u p E s t i m a t e s
G o v e r n a n c e A n n u a l C o s t s B I
L e v e l
R u n /S u p p o r t A v e r a g e B u il d / B u s in e s s F T E
M a i n t e n a n c e c o s t s c o s t s

In s id e o f IT - S O u t s i d e IT S
S e r v ic e C e n t e r s S e r v ic e C e n t e r s
C u r r e n t T o t a l B a s e d o n 2 0 0 9 D e c r e m e n t a l In c r e m e n t a l
B S C s i n c e b e g in n in g s in c e b e g i n n in g
o f 2 0 0 9 o f 2 0 0 9

G lo b a l 1 1 .3 8 6 . 0 0 8 ,9 4 9 .8 7 5 .5 0 8 , 9 2 - 4 9 . 4 9 9 ,9 8 1 . 5 6 0 .0 0 0 , 0 0 0 , 0 0 3 .0 0 0 .0 0 0 ,0 0
R e g io n a l 4 .4 0 1 . 8 1 5 ,7 3 9 .4 9 9 .8 5 3 , 6 2 - 5 .5 9 8 . 0 3 7 ,8 9 5 0 0 .0 0 0 , 0 0 5 0 0 .0 0 0 , 0 0 7 0 0 .0 0 0 ,0 0 1 7 6 .6 8 5 . 7 5 0 ,0 0
C o u n t r y 6 5 4 . 9 1 3 ,9 1 4 5 4 .9 1 3 , 9 1 0 ,0 0 2 0 0 .0 0 0 , 0 0 1 . 0 0 0 .0 0 0 , 0 0 2 .0 0 0 .0 0 0 ,0 0
T O T A L 1 6 .4 4 2 . 7 3 8 ,5 9 1 9 .8 3 0 .2 7 6 , 4 6 - 5 .6 4 7 . 5 3 7 ,8 7 2 . 2 6 0 .0 0 0 , 0 0 1 . 5 0 0 .0 0 0 , 0 0 5 .7 0 0 .0 0 0 ,0 0 1 7 6 .6 8 5 . 7 5 0 ,0 0

F u t u r e S e t u p E s t im a te s
G o v e r n a n c e A n n u a l C o s t s B I
L e v e l
R u n /S u p p o r t A v e r a g e B u il d / B u s in e s s F T E
M a i n t e n a n c e c o s t s c o s t s

In s id e o f IT - S O u t s i d e IT S
S e r v ic e C e n t e r s S e r v ic e C e n t e r s

G lo b a l 2 5 .0 0 0 . 0 0 0 ,0 0 0 , 0 0 5 .0 0 0 .0 0 0 ,0 0
R e g io n a l 7 2 .0 2 9 . 9 5 0 ,0 0
C o u n t r y
T O T A L 2 5 .0 0 0 . 0 0 0 ,0 0 0 , 0 0 0 ,0 0 0 , 0 0 0 , 0 0 5 .0 0 0 .0 0 0 ,0 0 7 2 .0 2 9 . 9 5 0 ,0 0

R e d u c t i o n
T O T A L 8 .5 5 7 . 2 6 1 ,4 1 - 1 . 5 0 0 .0 0 0 , 0 0 - 7 0 0 .0 0 0 ,0 0 - 1 0 4 .6 5 5 . 8 0 0 ,0 0

19

Time Savings potential
Current Future Benefits
BI Setup
Average Average (difference)
Weekly average [hours]
1 Data Gathering 0,7

2 Data Linking 0,6 0,6 -1,4

3 Processing 0,7

4 Evaluate 0,7 0,4 -0,4

5 Analyze 1,2 0,8 -0,4

6 Formatting 0,8 0,2 -0,6

7 Review and Approve 1,4 1,0 -0,4

8 Re-Iterations 5,0 1,7 -3,3

9 Publish 0,7 0,1 -0,6

10 Communicate 1,6 0,6 -1,0

11 Accept 0,8 0,3 -0,5

12 Action Information

Total 14,2 5,8 -8,4

20

La scelta metodologica: lean IT
Identificazione e rimozione di inefficienze e ridondanze con impatto su:
customer service, customer facing activities
costi di gestione e mantenimento del business
produttività inidividuale
costi di gestione piattaforma DWH/BI/Analytics

FOCUS

Defects
Overproduction
Waiting
Non-Value Added Processing
Transportation
Inventory Excess
Motion (Excess)
Employee Knowledge (Unused)

21

Business Case dimensions

BI Run Costs reduction
• Global: from xx M€/Y to y M€/Y
• Regional: assess and move to global platform
• Local: assess and eliminate redundancies
• Aviation: assess for integration synergies

BI User Processes optimization
• Huge impact on BI productivity
• Estimated value: xx M€/Y

Uncover Business Potentials
• EDW Best Practices generate Revenue Growth and Cost Savings
• Conservative Achievable Benefits: +xxM€/Y Revenue and -
xxxM€/Y Costs

22

Business Case: Run Costs dimension
Global: total run costs xxM€/Y
• Items sunset in the last 12 months and recent actions: xx M€/Y
• BPD environment: xx M€/Y
• Oracle OPMS duplication: x M€/Y
• FINANCE BI applications and INSIGHT: x M€/Y
• Other BI items (commercial, pricing, ops): x M€/Y

Regional: run costs are unknown
• EMEA, AP, NA, IA must converge into global BI vision
• TO DO: assessment and action plan

Local: run costs are unknown
• Local BI apps play relevant role and absorb resources
• TO DO: assessment and action plan

Aviation
• Ongoing integration of organization and processes
• BI must be assessed and integrated as well
23

Vision for EDW
To Be Major topics to address
Holistic Blueprint:
8 Success Factors for Triple A
BI Framework (“Access – Analytics – Action”)
Decisions
and
Management

Process
planning

„Closed Loop“
OPERATIONS
iDW Platform

ANALYTICS
Analytics Enterprise iDW
iDW Archi- Gover-
and tecture Data nance Sustain-
Model ability
Reporting
BI Appli- Data
Analytics
and Storage

cation 1 Data
(“Storage”)
Agility
Analytical
Capa-
bilities
Data
Quality,
Security;
Privacy
Master-
data
Manage-
ment

Operational
Finance Logistics Customers Prodcuts
Processes

Src BI Appli-
BI cation 2
Layer
EDW Enterprise EDW
Src Gover-
BI Appli- Archi- Data Sustain-
nance
cation 3 tecture Model ability

Data Master-
Analytical
Quality data
Agility Capa-
Single Version of the Truth Security Manage-
bilities
Privacy ment

24

Governance Framework: vista organizzativa
Entities Roles
C-Level Sponsors: cross-functional
support for EDW initiative from CxO is key
Chief Performance Officer (CPO) &
C-Level Sponsors Steering Committee: provide ultimate
authority and empowerment to unify
metrics and information across the whole
organization.
CPO & Steering
Business Intelligence
Competency Center

Committee Governance Council: representative of
the entire business organization to enable
alignment and synch points when
information are unified
Governance Council Data Stewards: span and work across all
business application landscape and systems
to ensure integrity of data objects and
subject areas
Data Stewards Business Intelligence Competency
Center (BICC): provides foundation for
strategic and tactical alignment of the EDW
Business initiative
IT
IT: partners with business and ensures
tools, systems and data are all available
25

Focus : BICC

Structure BICC Fundamentals

CPO can be appointed based on leadership
skills and business knowledge skills.
Virtual BICC
BICC members should have strong business
background, and good links with BI fellows
Business processes participation ensures
Finance Ops Sales knowledge of business requirements
All business functions should be able to
support cross functional BI initiatives
It provides deep, up-to-date business
knowledge and focus
BICC Virtual: flexible organizational structure
adjusting to BI needs across each function
No need to hire dedicated SME (Subject
CPO Matter Expert) to be allocated in each
function

26

Agnostic Approach to BI Framework
3x3 Guidelines matrix: 3 BI metrics, 3 BI perspectives (SDG adapt-case©):

Perspectives
Strategic Integrated Performance
Alignement Planning Monitoring

Performance
Metrics

Financial

Operational

Major Phases Key Factors KPIs BI/PM Process

27

BI / CPM Framework
End-to-end BI: from data to dashboard (SDG adapt-case©):

BI
Corporate Scorecard and Dashboard by
Report

Perspective
By

BI
by
Planning & Forecasting Financial Consolidation Process
By
Process Data Marts
Analytics Analytics Analytics by
“Performance” “Financial” “Operational” Metric
Model
By

DWH
Data Management, Mining and Warehouse by
Logical Data
Model

28

BI Technical Framework
Composite Framework – incremental best-of-breed adoption (SDG adapt-case©):
“Business users
driven, business
Global Reporting / Planning Global reference “Metabase” common language”
Essential
Enablers
Top-Down Bottom-Up

Elastic Enterprise
Toolkits by Business Process DWH by Business Model “Think big, start small”
Parallel
Design
Short term Medium-Long term

“Enterprise and Active” Datawarehouse
“Scalable and Agile” Business Intelligence
“Multidimensional and for-planning” CPM

“Unique and Collaborative” Portal “Reduce costs and
getting more lean”
Essential
Components
From Data To Dashboard

29

Recommendations
Evaluation of Results: DHL

Recom-
Challenge As-Is To-be Next Steps
mendations

Start building an EDW in parallel to the existing BI application landscape
An Enterprise Logical Data Model is a key asset as it represents the whole enterprise in a
consistent way
Name a EDW / BI Architect, install the virtual Governance structures within the business,
and install a BICC and CPO
Change from an application centric BI landscape to an integrated BI landscape
Introduce agile methodologies, e.g., “Sandboxing”, SCRUM, XP
An EDW, integrating major data sources in one data model, will allow for consolidating the
current BI landscape
Empower the data stewards to drive the „Data Quality Improvement Process“
Focus on a subject area of the Enterprise LDM for master data

30

Business Case summary

Benefits without EDW Business Case: Benefits with EDW

Benefits Benefits

Annual Business > x Mio. €
potential /year
EDW is required to reach the (new Business and
potential Opportunities)
Master
Savings through consolidation EDW Annual Resource
Road-map potential
(Migration and centralization (User and their processes)
through the EDW – BI processes) > x Mio. €
/year
TCO savings potential
*)

Annual Run-Cost Saving x
Mio. €/year Annual Run-Cost Saving
Potential Potential

Benefit Spectrum Benefit Spectrum

*) Consolidation will lower TCO

31

EDW Roadmap: starting point
Many BI applications
BI functional silos
Data duplication
Non-homogeneous tools
Data flows (horizontally &
vertically) across multiple layers
Any BI strategy almost
impossible to enforce

Cross-functional collaboration and decisions driven by common
BI strategy are key to success!
32

Function-driven approach

Business Functions
Each business function drives its own
stack of BI applications
Drive

Drive
Drive

Drive
Huge amount of data duplications
PAPAYA 1.5

INSIGHT 1.5
Business Rules not aligned across
START 1.0

functions:
GSI 2.0

Illustrative
Data
Overlap Customer hierarchies Customer
Account 100%
Customer 75% Profitability reporting
Geography 100%
Revenue 100% This lead to siloed, complex, static and
Cost 50%
Shipment 75% expensive BI landscape
Service 100%
Revenue (daily) 25% Such BI infrastructure and platform
Time 100%
Human Resources 25% causes inefficient back-office BI processes
General Ledger 25% and slows down business responsivness
Claim and Complain 25%
Shipment Profile 25%
Contract 25%

33

New approach: BI functionality driven BI
C

Agreed Priorities:
• Business Requirements
BI Roadmaps Consolidation
by Functionality • Global BI Roadmap
• Cost/Opportunity

Business … Business Data Areas as
Data Areas Building Blocks

Business Requirements are prioritized by BICC on a cross-functional base and drive Data
Areas availability along iDW Roadmap
Data Areas deliver cross-functional BI features and business metrics
Concept

Both aspects are tightly interconnected and have to be managed together!
BICC to enforce standard processes and tools:
BI demand management
BI dictionary
BI implementation practices
BI Governance
34

EDW Roadmap in context
C

New Roadmap
PROPOSAL
to BICC

EDW milestones are
placed when BI
infrastructure supports
BI functionalities

35

Change of mindset is required
• Split applications into smaller building blocks; reduce build
complexity by focusing on cross-functional re-usage of data,
functionality and metrics (Business BI Dictionary)
• BICC prioritizes each single building block by BI function
aligned with Business Data Areas roll-out along iDW Roadmap

C Traditional:
by application

C New:
by functionality

36

BICC as enabler for BI simplification
The BICC is the x-functional body that governs and manages the transition from today’s
scattered BI landscape to one that is integrated and centralized.

Custodian of the future Single Source of Truth. It will increase the quality and availability of information.
No extra FTEs, but helping key BI Experts to work together efficiently. BICC will build bridges
across functions and combine Business, IT and Analytical skills.
Enable
Faster
BICC takes on responsibility in Revenue
Generation
several steps. It will grow while Reduce
Overhea
we continue to replace legacy Reduce
Decisions
d Cost

BI and free up resources which Time-to-
Market
Achieve
we can then move as part of BI Agility Business
Model
Data
Rules

BICC. Remove BICC
Redundancies
It will reduce costs by
Bus iness Rules
Model
Data

Business Ruled
Model
Data

streamlining BI processes
and reducing IT overhead
Avoid Data Reduce Reduce Manage
Replication Data Infrastructure IT Cost
Footprint Cost

37

Take Aways … by Lean IT approach

Waste Element Issues Negative Outcomes solved
Defects • Unauthorized BI system and application Poor customer service, increased
changes. costs.
• Substandard project execution.
Overproduction •Unnecessary delivery of low-value BI Business and IT misalignment,
(Overprovisioning) applications and services. Increased costs and overheads

Waiting •Slow BI application response times. Lost revenue, poor customer service,
•Manual service escalation procedures. reduced productivity.
Non-Value Added • BI metrics to business managers. Miscommunication.
Processing
Inventory (Excess) •Server sprawl, underutilized hardware. Increased costs: data center, energy;
•Multiple repositories to handle risks and control. lost productivity.
•Benched application development teams.

Employee Knowledge •Failing to capture ideas/innovation. Talent leakage, low job satisfaction,
(Unused) •Knowledge and experience retention issues. increased support and maintenance
•Employees spend time on repetitive tasks. costs.

Source: 2008, Peter Waterhouse “Improving IT Economics: Thinking Lean”

38

luca.quagini@sdggroup.com
matteo.rossetti@sdggroup.com

39

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