How companies initiate, plan and develop actionable business insight using BI IT Breakfast Club, 29 January 2013 Christian...
Realisation of Business Intelligence         Explore how companies initiate, plan and develop actionable business insight ...
The Vision       In the vision we will examine the origin of BI. We will       look into the key drivers, sponsors and wha...
What were the initial drivers for working with BI?                                                                    Key ...
BI vision and approach   A sound and clear vision for the BI project was                             The BI project was we...
What was the expected value?                                                                    Key Statements         “Op...
Where did BI originate from and what approach was used ?                                                    Bite size     ...
The Result       We examine if BI delivered on the promise stated in the       vision       Does it deliver the expected v...
On what level is Business Intelligence used today?                       Strategic                                 Tactica...
Expected value and measurable benefit  What are the measurable benefits?                                                  ...
The BI project only to a limited extent ran into significant challenges?                                                  ...
The Future     of BI       Looking into the future. What role is BI expected to       play. Is it all about fixing existin...
BI vision and approach   The BI system etc. is a very good foundation for                                We have a clear v...
The Future of the BI project                                                What initiatives do you have for enhancing exi...
Peer recommendations                                                          Top recommendations                8. Think ...
Business Intelligence specialists         For more information, contact:                Christian Riekehr                 ...
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BI survey - it breakfast club - 29 january 2013 ver 2.0

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PA Consulting conducted a survey in January 2013 and presented the results and their insights and an "IT Breakfast Club" meeting.

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BI survey - it breakfast club - 29 january 2013 ver 2.0

  1. 1. How companies initiate, plan and develop actionable business insight using BI IT Breakfast Club, 29 January 2013 Christian Riekehr and Anders RomCopyright PA Consulting Group
  2. 2. Realisation of Business Intelligence Explore how companies initiate, plan and develop actionable business insight using BI We looked for insights into… • The vision: What were drivers for BI, where was it initiated and was it well found in the business? BI realisation • The results: To what extent doesSurvey coversto promise? aspects BI deliver and links three • The vision What are next steps and what will BI v. 2.0 look like? The future: The results The future In the vision we will examine the We examine if BI delivered on the Looking into the future. What role is origin of BI. We will look into the key promise stated in the vision BI expected to play. Is it all about drivers, sponsors and what was the fixing existing BI or are there plans Does it deliver the expected value for a BI evolution to a version 2.0 expectations for BI Discuss where things went wrong And given experience, what are the Furthermore, we will look into what and why recommendations was the initial business purpose and what users was BI supposed to support …in order to understand: • Why so many BI projects fail to deliver on promise • How to increase the business benefits of BICopyright PA Consulting Group© PA Knowledge Limited 2013 Page 2
  3. 3. The Vision In the vision we will examine the origin of BI. We will look into the key drivers, sponsors and what was the expectations for BI Furthermore, we will look into what was the initial business purpose and what users was BI supposed to supportCopyright PA Consulting Group© PA Knowledge Limited 2013 Page 3
  4. 4. What were the initial drivers for working with BI? Key Statements “Didn‟t begin as BI, but driven by a “Began in the eighties as a technology push, “Budding… an overview of the diesel need of a controllable and but later evolved to a technology pull.” consumption” transparent business… sales and planning of production” “The main goal is supporting the performance “Growth, increase in customer base, management process - from Planning to countries [in which we operate]/ business registration to „follow up activities‟.” areas. [We wanted a] qualified discussion about performance “Have worked with data for many years. “The driver was a need for doing following (financial and non-financial). It got too fragmented... [This industry] up…The idea was to collect all operational Management reports with KPIs and the should have the lowest IT spending…” option of having scorecards.” data produce knowledge and present it to the users…” “Operational reporting. Transparent data. [We were on] a burning platform “A need for transparency in the “…We need data for making decisions… [to become] one company. [We needed business” target and financial management. [We] used to go from] a decentralised organisation many resources to compile data.” to a centralised organisation.” Key Finding The key driver was a need for a centralised and transparent reporting model to support decision makingCopyright PA Consulting Group© PA Knowledge Limited 2013 Page 4
  5. 5. BI vision and approach A sound and clear vision for the BI project was The BI project was well-founded in the business developed at the beginning of the BI project. organisation and in business requirements. Highly or slightly Highly or slightly agree agree Neutral, disagree or Neutral, disagree or 45% highly disagree highly disagree 64% 55% 36% “It was owned by the CFO” “It was an IT push and not a business pull” “The BI project was well founded in the IT “This is not an IT organisation, but not well founded in the project” “Developed from IT. A data platform business organization. The business have “IT was the driver… no business sponsor” was created and from here data was trouble describing their requirements” delivered to the business”Copyright PA Consulting Group© PA Knowledge Limited 2013 Page 5
  6. 6. What was the expected value? Key Statements “Optimisation of operations, but it “It is a fragmented picture. For follow up of wasn‟t until recently that it worked” production it is valuable, while less value for sales” “More transparency in the business. Not today but the “… streamlined processes, more rapid responds to long term trends. what worked and what didn’t. Left behind the old BW where everybody worked independently. You “Having a tool for needed to know how to use the data…” managing the entire company” “A more focused sales effort… and realising the sales strategy” “We don’t know” “Not quantified. We got better “We made a 1 and 5 year vision. Historically we control, controlling costs. “One point of entrance, one common had a mass marketing approach, now it is [We wanted to] have better perception of data, data could be used group based… [Now we have] one common grounds for navigating for other [business] areas. The amount data set and shared definitions, as well as based on being informed.” of data increases and you are not able better control of the company.” to handle it manually anymore…” Key Finding Optimisation, transparency and shared understanding leading to better management and more informed decisionsCopyright PA Consulting Group© PA Knowledge Limited 2013 Page 6
  7. 7. Where did BI originate from and what approach was used ? Bite size Big Bang Approach 91% 9% ”One big project “It is an incremental “The approach “Started as big bang… “Big bang. SAP was rolled with different process… it has was taking BU to hereafter we got better at out to all organisational tracks” taken longer than BU. This approach scoping the projects and now units…” anticipated” was used for a they are bite size.” better success” Sales Management Other Origin 45% 27,5% 27,5% “Sales, then logistics…” “Sales began, “It originated in the “Operational “From the management “Originated in then came need for financial management perspective and of operations… procurement…” reporting, hereafter “Sales was the reporting…” course also from finance planning it was spread out to big one…” and IT” operations” the business…”Copyright PA Consulting Group© PA Knowledge Limited 2013 Page 7
  8. 8. The Result We examine if BI delivered on the promise stated in the vision Does it deliver the expected value Discuss where things went wrong and whyCopyright PA Consulting Group© PA Knowledge Limited 2013 Page 8
  9. 9. On what level is Business Intelligence used today? Strategic Tactical Operational Highly or slightly Highly or slightly Highly or slightly agree agree agree Neutral, disagree or Neutral, Neutral, 45% highly disagree disagree or disagree or highly disagree highly disagree 55% 82% 91% 9% 18% “…Decisions are made based on facts, not “… big difference in data and quality, gut-feeling. We use BI for customers “Consultant work scheduling and sales business units collect information on it‟s segmentation. Sales potential is calculated management…” own and master data is different… has and used for budgeting including growth „only‟ 95% of the data in the system targets. Segmentation determines which which is not enough for making value pack is offered.” strategic decisions” “Medium maturity…, using functions for reporting but with no statistics… only historic reports… sales forecasting… but “…HR to get an overview of the “Bi is used for “scheduling, have no predictions” development of the salary” holiday planning…”Copyright PA Consulting Group© PA Knowledge Limited 2013 Page 9
  10. 10. Expected value and measurable benefit What are the measurable benefits? The BI project delivered the outcomes that were expected. “… lower license costs. Less time to assemble information. “”[We] are better at keeping the discussion on the right track… drives Neutral, disagree or the business during a… crises and highly disagree still produces a positive result. We Highly or slightly use BI to develop the business. “Makes things easier for our agree 64% customers…and [they] need to do 36% less… [we] are starting to use reported data….” “Some activities have improved which in turn save costs. BI has made visible a number of things…” “Better finance control… improved understanding in the business units”Copyright PA Consulting Group© PA Knowledge Limited 2013 Page 10
  11. 11. The BI project only to a limited extent ran into significant challenges? Key Statements The BI project only to a limited extent ran into significant challenges? “Good executive “We were not backing. What gets in mature enough” Neutral, disagree or the way is that we want “We had technical issues highly disagree to do everything at compiling data… waiting for Highly or slightly once. “ the business… [they are] still using Excel.” agree 64% “… the tool is still difficult 36% to use for the end-users… the real time perspective is still an issues, and “… get things to run fast performance.” enough. To go from a push to pull, the business must see “… after development the the value of BI.” system was to go into operation. That took a longer than “IT technical issues, difficulties anticipated” supporting cubes, and complications with report subscription service”Copyright PA Consulting Group© PA Knowledge Limited 2013 Page 11
  12. 12. The Future of BI Looking into the future. What role is BI expected to play. Is it all about fixing existing BI or are there plans for a BI evolution to a version 2.0 And given experience, what are the recommendationsCopyright PA Consulting Group© PA Knowledge Limited 2013 Page 12
  13. 13. BI vision and approach The BI system etc. is a very good foundation for We have a clear vision for the future and a clear road further development where new possibilities will be map for coming there. made use of Highly or slightly Highly or slightly agree agree Neutral, disagree or Neutral, disagree or 45% highly disagree highly disagree 82% 55% 18% “It is being discussed” “No need (for a vision) any “Is being “The functionalities are now in… better condition. The addressed at more. BICC manages the Data Ware House Concept has been changed to be the moment” development… BI is part of more flexible and real-time based.” the general development” “There is no roadmap but “We still need to [use] the tool to “There no written BI strategy, solutions are developed “A desire for a joint BI based on [vendor name] as their full potential… there are no but [we] have planes for what system remains” requests are received for immediate obstacles” is to be done for e.g. sales” the business”Copyright PA Consulting Group© PA Knowledge Limited 2013 Page 13
  14. 14. The Future of the BI project What initiatives do you have for enhancing existing BI? Data Quality Master Data Link to business Architecture 27% 27% 27% 19% How does BI 2.0 look? “Simulations of the future and “… Follow up of strategic initiatives and using predictive analytics” “[We are] looking into big data, marketing data for reaching other ends. The group will gain and customers behaviour on the net. more insight.” “… no more than we have today. Data from Facebook, Twitter and online store should be “Data mining is the sales departments “… predictive analytics, data consolidated, but that will be in the future. We responsibility and will be further mining, and …. Big data.” are expecting more data from wholesale developed. Strategic forecasting for customers, [are they buying] at full price or with markets, and producing predictions a discount…” for specific markets.” Key Finding The future of BI is working with big data and data mining in an attempt to produce predictive analyticsCopyright PA Consulting Group© PA Knowledge Limited 2013 Page 14
  15. 15. Peer recommendations Top recommendations 8. Think big, start small 5. Make a BI strategy 2. BI is not an IT project, focus on the business • “Implement the BI step by step in • “Define the goal you are trying to reach cooperation to the BU” • “Make a clear Service Level Agreement with BI” with the BU” • “Don‟t try everything at once” • “Ensure that expectations are • “The small successes are important” managed” • “Don t use the Big Bang” 4. Ensure platform flexibility – • “Thorough analysis of the needs” right tool for right purpose • “Begin with your customers needs” 7. Don’t overcomplicate things • “Identify the tool that fits the purpose, it • “Define ownership” needs to be flexible” • “Local ownership and participation” • “Less is more” • “Think about the organisation that is to use BI” 3. Change management is 6. Focus on the data validity probably 50% of the project 1. Do not let the hype guide your • “Ensure consistency in data, ideally it‟s • “Hire someone who knows the business decisions in one place but not at any price “ side to bridge IT and the business” • “How mature is the organisation?” • “Match the competences for those who delivers BI with those that are to receive • “Think about what there is in it for your it” organisation”Copyright PA Consulting Group© PA Knowledge Limited 2013 Page 15
  16. 16. Business Intelligence specialists For more information, contact: Christian Riekehr Anders Rom Partner Management Consultant Tuborg Boulevard 5 Tuborg Boulevard 5 2900 Hellerup 2900 Hellerup www.paconsulting.dk www.paconsulting.dk T: +45 3925 5021 T: +45 3925 5193 M: +45 4178 1301 M: +45 2812 5917 E-mail: christian.riekehr@paconsulting.com E-mail: anders.rom@paconsulting.comCopyright PA Consulting Group© PA Knowledge Limited 2013 Page 16
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