Learn how to define success in business intelligence, the 12 keys to success in BI and an overview of the market-leading business intelligence tools. View the video recording and download this deck: http://www.senturus.com/resources/keys-to-success-in-business-intelligence/.
BI tools covered include: Microsoft, Cognos, Business Objects and Oracle.
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1. Part of the
BI Demystified Series
Keys to Success
in Business Intelligence
June 21, 2012
www.senturus.com
Helping Companies Learn From the Past, Manage the
1 Present and Shape the Future
2. This slide deck is part of a recorded webinar.
To view the FREE recording of this entire
presentation and download the slide deck, go to
www.senturus.com/recorded-webinars.php
You will find this—and many other recorded webinars-- under the “Business
Intelligence 101“
2
3. Agenda
• Introduction
• Define Success
• Keys to Success
• What about Tools & Technology?
• Q&A
3
5. Who is Senturus ?
• Consulting firm specializing in Corporate Performance
Management
– Business Intelligence
– Tools of the Office of Finance
• Enterprise planning & budgeting
• Consolidate, close, report and file (CCRF)
– San Francisco Business Times Hall of Fame -- Four
consecutive years in Fast 100 list of fastest-growing
private companies in the Bay Area
• Experience
– 12-year focus on performance management
– More than 1,000 projects for 500+ clients
• People
– Business depth combined with technical expertise.
Former CFOs, CIOs, Controllers, Directors...
– DBAs with MBAs
5
8. Measuring Success in BI
Cost
Business Time
Reduction
Value Savings
+ Revenue User
+ Profit Adoption
+ Growth
+ Share…
+ Total (# & %) Number of
+ Active (# & %) Reports
ROI Number of
Subject Shift to
Manual BI Areas Fact-
Elimination Based
- Excel Decisions
- Access New
Requests
8
9. Bottom Line Results
Value Integrators
> 20x 49% 30%
more 14.0% more more All other enterprises
12.1%
11.3%
9.4% 9.3%
0.5%
EBITDA Revenue ROIC
5-year CAGR, 2004-2008 5-year CAGR, 2004-2008 5-year average, 2004-2008
Value Integrators also have an almost
20% better operating efficiency ratio than
all other companies examined.
Source: IBM Institute for Business Value, The Global CFO Study 2010
9
10. This slide deck is part of a recorded webinar.
To view the FREE recording of this entire
presentation and download the slide deck, go to
www.senturus.com/recorded-webinars.php
You will find this—and many other recorded webinars-- under the “Business
Intelligence 101“
10
11. Success in Business Intelligence
• Decisions made by fact, not gut
• Analyzing, not gathering and compiling
• Spend less, get more
• Consensus: BI is a Competitive Differentiator
• Perception: ―We couldn’t run the organization without it‖
• Bottom Line: Better Business Performance
11
12. Based on 1,000+ projects over 12 years
KEYS TO SUCCESS IN BUSINESS
INTELLIGENCE
12
13. Keys to Success in Business Intelligence
1. Find your ―Richard Branson‖
2. Don’t build what they ask for, build what they need
3. Don’t try to boil the ocean
4. Become a Pareto disciple
5. Shoot early and often
6. Don’t build castles on sand
7. Rally a team
8. Worry about the Data
9. Remember everything is relative
10. Get the ball all the way across the goal line
13
14. 1. Find your “Richard Branson”
Executive Sponsorship is critical
14
15. Executive Leadership/Sponsorship
Nonexistent or Somewhat
Very committed
uncommitted committed
Moving the needle:
• Selection – In-place executive is already a great leader
and has strong commitment to BI
• Conversion – Very challenging. Best shot is to build on
tangible successes
• Prototyping can create converts before funding gets
vetoed
15
16. Scope of Business Intelligence
Individual Department Division Enterprise
Moving the needle:
• Executive leadership
• BI Team leadership – Helps the organization
understand the low cost/high value nature of
integration points and the high cost of missing the
lay-ups.
16
17. 2. Don’t build what they ask for,
build what they need
17
18. … and seek Relevance at all costs
Work from real requirements backwards
18
19. Seek Forward Visibility & Accountability
Lagging Leading Predictive Automated
None
indicators indicators analytics corrections
Moving the needle:
• Understand the actions that decision-makers can take
• Map and deliver the information that helps them
prioritize their actions (Usually leading indicators)
• Monitor key metrics for accountability (What gets
measured, gets managed)
19
20. 3. Don’t try to boil the ocean
Make projects as small as possible, yet aim to achieve ―Wow!‖
20
21. This slide deck is part of a recorded webinar.
To view the FREE recording of this entire
presentation and download the slide deck, go to
www.senturus.com/recorded-webinars.php
You will find this—and many other recorded webinars-- under the “Business
Intelligence 101“
21
22. Incrementally built, yet integrated
• Do not set out to build a data warehouse
• Instead, incrementally build business
process analytical capabilities, with
integration built in
• Gain the benefits of a data warehouse
without doing a ―data warehouse‖ project
22
23. 4. Become a Pareto disciple
Practice religious devotion to the 80/20 rule
23
24. 5. Shoot early and often
Rapid iterations and prototyping while pursuing a
long-term plan dramatically enhance project
success
24
25. 6. Don’t build castles on sand
Choosing the right architecture is critical
25
26. … and be careful with your plumbing
Choosing the right architecture is critical
26
27. Typical “Best Practices” BI Architecture
Integrated Business Process Dimensional Models with Metadata layer(s)
Threshold
Alerting
Standard
Reports
Single Version of the Truth
Planning Data
Querying
Data Warehouse
Ad hoc
Self-service Reporting
Data Abstraction Model
& Analysis
Source Systems of Record
Web Portal
Slicing &
Data Integration
Dicing
ERP Data
Dashboards/
Dashboard
Authoring
Scorecards
Conforming
Authoring
CRM Data
Report
Business Process
Dimensional Models Threshold-based
Alerts
Information Security
Other Sources
27
28. 7. Rally a well-rounded team
A strong Business-IT partnership with Cross-
functional involvement is critical
28
29. Business Intelligence “Team”
Understands both business and technology. Strong leaders.
Dashboards/
Scorecards
―What do you want?‖ ―What do you have?‖
Source Systems of Record
Decisions & Actions
Planning Data Standard
Reports (Push-
Pull)
ERP Data Self-service Reporting
& Ad-Hoc Analysis
CRM Data Alerts
Other Sources
The Chasm
29
31. This slide deck is part of a recorded webinar.
To view the FREE recording of this entire
presentation and download the slide deck, go to
www.senturus.com/recorded-webinars.php
You will find this—and many other recorded webinars-- under the “Business
Intelligence 101“
31
32. 8. Worry about the Data
The data will be dirty, but don’t let that stop you…
32
33. Aim for Integrated Data Across The
Enterprise
Non-integrated
Integrated data
Spreadmarts data marts
warehouse
(aka. Silos)
Moving the needle:
• This topic is covered in-depth in earlier session of the
Senturus BI Demystified Series: Do We Need a
Data Warehouse?
33
37. 10. Get the ball across the goal line
Focus on User Adoption and the rest will follow
37
38. … User Adoption starts in the beginning
Focus on User Needs from Beginning to End
38
39. … “If you build it they will come”
does NOT work in BI
39
40. Focus on Users & User Adoption
Provide information that is:
1. Relevant
2. Trustworthy
3. Timely
4. Comprehensive
5. Explorable
6. Well-understood
7. Contextual
40
41. Perception of BI Value is crucial
Competitive
Cost Center Tactical Mission Critical Strategic
differentiator
Moving the needle:
• Prove the value – Work to quantify the value of each
BI initiative. Deliver consistent string of high ROI
projects.
• Tout the results internally. Sell!
41
42. … Finally, shout it from the rooftops
Proactive BI ―PR‖ will drive further success
42
43. This slide deck is part of a recorded webinar.
To view the FREE recording of this entire
presentation and download the slide deck, go to
www.senturus.com/recorded-webinars.php
You will find this—and many other recorded webinars-- under the “Business
Intelligence 101“
43
44. Not key to success?
WHAT ABOUT TOOLS & TECHNOLOGY?
44
50. This slide deck is part of a recorded webinar.
To view the FREE recording of this entire
presentation and download the slide deck, go to
www.senturus.com/recorded-webinars.php
You will find this—and many other recorded webinars-- under the “Business
Intelligence 101“
50
57. Vendor Comparison – BI Offerings
Component Microsoft Cognos Business Objects Oracle
Data Integration SQL Server Integration Data Manager Business Objects Warehouse
Services (SSIS) Data Integrator Builder (OWB)
Data Aggregation SQL Server Analysis Powerplay Aggregate tables or Essbase, OLAP
(OLAP) Services (SSAS) Transformer 3rd party (e.g. SSAS) Option in DBMS
Data Abstraction SSAS Designer, Model Framework Universe Designer BI Server
Modeling Designer (limited to Report Manager, Modeler, Essbase
Builder) Transformer Modeler
Report Authoring SQL Server Reporting Report Studio Crystal, BI Publisher,
Services (SSRS), Excel WebIntelligence Financial Rpting
Analysis Tool PerformancePoint Analytics Biz Insight WebIntelligence, BI Answers,
(ProClarity), Excel Advanced Voyager Essbase
PivotTables/PowerPivot
Ad hoc Report Builder, Biz Insight WebIntelligence BI Answers
Query/Report PPS Analytics, MS Query Advanced
Dashboard PerformancePoint Report Studio, Xcelsius, BI Interactive
Authoring Dashboard Designer, Metrics Studio, Dashboard Builder Dashboards
Sharepoint Excel Services Biz Insight
Scorecard PerformancePoint Metrics Studio Xcelsius, BI Interactive
Authoring Dashboard Designer Dashboard Builder Dashboards
Portal Sharepoint Cognos Business Objects BI Portal
Connection Enterprise Portal
57
58. Technology ―20,000 foot‖ Summary
• Commoditization
• Tool features & power < 20% utilized
• Restless business users
• Unrealistic dashboard claims
• Lower than expected BI Success rates
• Tools do NOT drive BI Success
58
61. This slide deck is part of a recorded webinar.
To view the FREE recording of this entire
presentation and download the slide deck, go to
www.senturus.com/recorded-webinars.php
You will find this—and many other recorded webinars-- under the “Business
Intelligence 101“
61
Hello. Welcome to this month’s installment of the Senturus education series in which we demystify business intelligence. In today’s session we will discuss the keys to success in business intelligence.
After a quick introduction of the team, we’ll describe what success in business intelligence looks like. We’ll then describe the primary keys to success based on we have learned across more than 1,000 projects during the past 12 years. Next, we’ll share our perspectives on the expectations business intelligence technology vendors are setting relative to success in BI. We’ll wrap with a Q&A session that will address the questions not already covered interactively during the webinar.
from IBM study of 2,000 companiesValue Integrators excel in both efficiency and business insight, which is correlated to financial outperformance.Revenue Growth: N = 580; EBITDA: N = 531; ROIC: N = 501;
Organizations are already spending massive amounts on Business Intelligence … and we are not talking about formal BI tools and Data Mart projects***** DO 2 POLL NOW – “How would you define your success?” & “Has BI improved your companies performance?”
At this point I’m going to pass the presentation over to John Peterson. He’ll describe the target – the description of what success in business intelligence looks like. John, the floor is yours.
Find your Richard BransonExecutive Sponsorship is criticalDon’t build what they ask for, build what they need Bi must be Business Requirements driven & RelevantDon’t Boil the OceanMake projects as small as possible Don’t set out to build a data warehouseBecome a disciple of Vilfredo ParetoReligious devotion to the 80/20 ruleStart off on the Right FoundationThe right architecture is criticalWorry about the DataData QualityShoot early and oftenRapid iterations while laying a long term foundationRally a teamOrganize for SuccessRemember everything is relativeIntegrate contextGet the ball all the way across the goal lineFocus on User Adoption
*** DO 2 POLLS FIRSTTDWI and Kimball surveys routinely show that this is THE most important factor
Requirements-driven BI Relevance is keyNEXT SLIDE: Focus on leading indicators, not just lagging ones (see next slides)
Requirements-driven BI EXAMPLE: Buongiorno report specs…Relevance is key
No boiling of ocean– Layout a roadmap & Prioritize– Start as small as possible (phased)– But create a 100% functioning system… and a Wow! FactorFocus on Business Process Dimensional Models (next slide)EXAMPLE: Old DW problem: 3 year, $3million failures
Vilfredo ParetoEXAMPLE: Large Finance/GL Mart excluded Quantity and Units in first phase to hit dates needed to support annual planning cycleEXAMPLE: Start with Gross Margin, move to Net Profit (avoid allocation quagmire)
Use pseudo-Agile development And LOTS of PrototypingSeries of short projects -- but always within a larger campaign, vision and architectureDeliver string of high ROI projects EXAMPLE: Large financial services company: Early prototyping flushed out the true hierarchies and rollups
Organize data into business process dimensional modelsFacts and conforming dimensionsArrange the data the way business people look at itArchitecture matters – can’t rely on a veneer in the metadataAbstracted meta-data layerAggregations and OLAP (important for self-services and performance)Build upon conforming dimensional models (Kimball)Laying the right foundation is criticalMaintain historical contextConvert codes into plain English Integrated data across the enterprise
Organize data into business process dimensional modelsFacts and conforming dimensionsArrange the data the way business people look at itArchitecture matters – can’t rely on a veneer in the metadataAbstracted meta-data layerAggregations and OLAP (important for self-services and performance)Build upon conforming dimensional models (Kimball)Laying the right foundation is criticalMaintain historical contextConvert codes into plain English Integrated data across the enterprise
Business-IT partnershipCross-functional involvementLeadership is key-----------------------Strong project managementVisionary leadershipExecutive sponsorship ?? Organizing for success BI steering committee BICCCross-functional teamsBusiness and ITHave wide scope to your BIHave wide funding (cross department, cross division)Business IT PartnershipCompile a team that knows business and techStrong leaders on the BI teamTrainingInnovation
EXAMPLE: AFC cross-functional team prioritized the 3-5 year roadmap
Data qualityAnd lack of dimensionality in source systemsFix issues as far “upstream” as possible (in ERP, not in DW or Reports)Only get one chance to make a good first impressionHuge amount of reworkBI exposes lack of data qualityData quality chicken and egg – Don’t let dirty data stopEXAMPLE: Kelly-Moore (use Large Paint Manufacturer) POS data cleanup and vendor totals issue
Avoid Silos
Actuals vs. PlanVs. Last YearVs. Competition
TrendingRatio analysis
In fact, every new addition to your BI System or data warehouse adds exponential value due to relative analysisEXAMPLE: Large Retailer Sales Data + Inventory Data = Days On Hand analysis
*** DO POLL HEREEXAMPLE: Semiconductor Manufacturer (Zoran) not doing formal training after year-long $250K project
System success starts with User Requirements and ends with solid training and supportPromote BI capabilities and awarenessFocus on benefits, not tech featuresTrainingFacilitate changeProvide a bridge between the old and the newPredominance of gut-feel decision-makingProvide relevance (see chapter “9”)Foster fact-based decision-making
Remember to sing it from the rafters… BI PR is critical
Don’t let it be a well-kept secret
Do it right the first time, and don’t keep heading down the wrong path…