Your SlideShare is downloading. ×
Aligning BI investments and the bottom line nw
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Aligning BI investments and the bottom line nw

619
views

Published on

A presentation given recently by IIBA guest speaker, Nancy Williams, Vice President of BI and Data Warehousing at DecisionPath Consulting

A presentation given recently by IIBA guest speaker, Nancy Williams, Vice President of BI and Data Warehousing at DecisionPath Consulting


0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
619
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
60
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Aligning BI Investments and The Bottom-Line The Role of Business Requirements Nancy Williams, VP DecisionPath Consulting nancy.williams@decisionpath.comCopyright DecisionPath Consulting 2011 — All Rights Reserved
  • 2. The BI Information Paradigm Business Business Business Business Measurement Information Decisions Actions & Analysis In the Context of Business Processes Management Customer Operating Processes, Processes, e.g. Processes, e.g. e.g. Manufacturing, Planning, Budgeting, Marketing, Sales, Order Fulfillment, Controlling Customer Service Billing Business Intelligence and Equals Business Results $$$Copyright DecisionPath Consulting 2011 — All Rights Reserved 2
  • 3. Repositioning the Value of Information Traditional Reporting Business Intelligence • Static and Retrospective • Interactive, both Forward-looking and Retrospective • Frequently single system • Cross-system, cross-functional view; operational view strategic, tactical, operational • Not necessarily actionable or • Actionable — purpose is enabling improved decision-oriented business performance • No special data architecture or • Leverages special “data pre-positioning” tools required approaches and tools to simplify analysis by end-usersCopyright DecisionPath Consulting 2011 — All Rights Reserved 3
  • 4. Legacy Information Requirements Paradigm The Report “Order-Taking” Model Individual Business Users Report Writers Specify Data, Sort Order, Format Usually Little if Any Business Context Copyright DecisionPath Consulting 2011 — All Rights Reserved 4
  • 5. Achieving BI: The New InformationRequirements Paradigm What business information do we need? For what business measurement & analyses? In support of which key business decisions? That impact which core business processes? To deliver how much business value? Via what changes to people, processes, and technology?Copyright DecisionPath Consulting 2011 — All Rights Reserved 5
  • 6. The Information Paradigm Shift : CommonApproaches That Haven’t Delivered Data Dumping Big Bang Focus on Technology Focus on Reports/KPIsCopyright DecisionPath Consulting 2011 — All Rights Reserved 6
  • 7. BI Maturity and Business Requirements: Stage 3 Greater Changed Information Usage Value New BI Business Requirements Approach Paradigms Creation Across Enterprise to Leverage BI Stage 2 New BI Business Requirements Approach Changed Information Usage Paradigms in One or More Value Creation Functions to Leverage BI Business Stage 1 No Change to Information Legacy Business Requirements Approach Usage Paradigms Stage 0 No DW / BI Experience BI Maturity Greater Maturity Copyright DecisionPath Consulting 2011 — All Rights Reserved 7
  • 8. Changing The Paradigm: Pain vs. Gain Stage 3 Greater Changed Information Usage Value Information Used Across Enterprise to Paradigms Creation Measure and Manage Business Performance Across Enterprise to Leverage BI Stage 2 New Information Assets- From Reporting Changed Information Usage to Analysis and Action Paradigms in One or More Value Creation Functions to Leverage BI Business Stage 1 No Change to Information Improved Reporting Usage Paradigms Stage 0 Status Quo No DW / BI Experience BI Maturity Greater Maturity Copyright DecisionPath Consulting 2011 — All Rights Reserved 8
  • 9. BI Maturity- Where Are You?Where Do You Want To Go? High Degree of Data Integration Integration Medium th igm ow Integration Gr arad sire d ag eP De Us ity on r ati Matu orm I Inf her B Low in ig nge H Integration C ha Reporting Analysis Prediction Performance Measurement Performance Analysis Performance Forecasting (WHAT?) (BASIC WHY?) (COMPLEX WHY? WILL? ) Level of Analytic Capability Copyright DecisionPath Consulting 2011 — All Rights Reserved 9
  • 10. Repositioning Business Roles and Responsibilities Legacy Requirements BI Requirements • Data oriented specifications • “As-Is” versus“To-Be” information capabilities linked to business goals and objectives • Requirements oriented around • Requirements oriented around projects that individual reports/projects that provide new information capabilities that provide access to data subjects support improved business performance • Little if any business • Strong alignment with business strategy and context/business case business processes • Project or individual data • Interviews/facilitated sessions, active specification, little business business oversight involvement Copyright DecisionPath Consulting 2011 — All Rights Reserved 10
  • 11. High-Impact BI Requires Alignment Business – centric BI Alignment Copyright DecisionPath Consulting 2011 — All Rights Reserved 11
  • 12. Using BI to Meet Business Goals Operating Purchasing Manufacturing Distribution Service ProcessesBusinessIntelligence: Customer • Business information Processes Service Marketing Sales • Business analysis • Decision support Management Finance Human Planning Processes Resources Copyright DecisionPath Consulting 2011 — All Rights Reserved 12
  • 13. Delivering the Right Information the Right Way Different BI Tool Capabilities for Different Purposes and Users BI Capabilities and Tools Aligning BI for User Needs Do we have the right pricing Do we have the right pricing strategy to optimize the strategy to optimize the Types of Business Intelligence (BI) Related Tools & Techniques balance between risk and balance between risk and return? How has pricing return? How has pricing Execs and Senior impacted sales and margins? impacted sales and margins? What happened (or is Reports, Dashboards, Alerts, Management happening right now)? OLAP What happened, Scorecards, Reports, Alerts as related to goals? For which channels and For which channels and products are sales declining? products are sales declining? OLAP, Data Mining, Advanced Why? Why? Why did it happen? Visualization Middle Management, Analysts, Power Users Forecasting, Predictive What do I expect to happen? Modeling, Data Mining Which of my customers are Which of my customers are What do I want to happen? Planning, Scorecards not meeting account-level not meeting account-level sales goals? What are their sales goals? What are their order patterns? order patterns? Front Line Users Copyright DecisionPath Consulting 2011 — All Rights Reserved Decisioning Tiers 13
  • 14. BI Pathway Approach to Requirements Roadmap Phase Deliver & Impact Phases Program Management Leverage BI for Leverage BI for Create a BI Create a BI Develop BI Develop BI Execute BIBI Execute BI Execute BI Execute Assess BI Risk Assess BI Risk Business BI Leverage BI Leverage Business Strategy Strategy Roadmap Roadmap Projects BI Execute BI Execute Projects Projects Projects BI Leverage BI Leverage BI for Business for Business Execute Projects BI Execute Projects Results Results for Business for Business Results Results Projects Projects Results Results … Specify Assess Determine Reduce Risks, CaptureBusiness Needs Risks How to Proceed Optimize Costs Planned ROI Aligning BI Investments with the Bottom Line Achieving Business Value Copyright DecisionPath Consulting 2011 — All Rights Reserved 14
  • 15. Aligning BI Investments for Business Impact Time-boxed BI Planning Effort Create a BI Create a BI Develop BI Develop BI Assess BI Risk Assess BI Risk Strategy Strategy Roadmap Roadmap Define Data Define Data BI Alignment & BI Alignment & BI Opportunity Portfolio BI Opportunity Portfolio Architecture & Architecture & Governance Risk Governance Risk Technical Strategy Technical Strategy BI Business Case BI Business Case BI Delivery Risk BI Delivery Risk BI Source Data Analysis BI Source Data Analysis Define Prioritized BI Define Prioritized BI BI Requirements BI Requirements BI Business Adoption BI Business Adoption Portfolio, Program Plan Portfolio, Program Plan Definition Definition Risk Risk & Roadmap & Roadmap Define BI Performance Define BI Performance Measurement Program Measurement Program Copyright DecisionPath Consulting 2011 — All Rights Reserved 15 3-4
  • 16. BI Requirements and Roadmap Effort Optimal: Time-boxed BI Program Level Requirements Risky: Risky: Limited, Project-level “Big Bang” Program-level Requirements Effort Requirements Effort Copyright DecisionPath Consulting 2011 — All Rights Reserved 16
  • 17. BI Opportunity Checklist Opportunity n Opportunity Checklist: What business goals and strategies are in focus? As is definition: What information is currently available to support these business goals and strategies What business questions can’t be answered and why is this a problem? To be definition: What type of BI capability (provide name) is needed? How will this BI capability address the business problem? What specific business questions need to be answered? What business improvement opportunities can be realized through using this BI capability? How does this help achieve business goals and strategies? How will performance improvements be measured? Copyright DecisionPath Consulting 2011 — All Rights Reserved 17
  • 18. Developing the BI Opportunity Portfolio What specific BI project opportunities exist to deliver business value? High Revenue Supply Chain Management Analysis High Risk / Plums Business Impact Reward Customer Service Anal. Category Inventory Management Management Easy Wins Why Do It? Low Low Risk High Copyright DecisionPath Consulting 2011 — All Rights Reserved 18
  • 19. Prototyping the BI Application User Profiles Usage Scenarios Delivery Methods Business Process: Customer Service - Order Fulfillment Execs and Senior Manage customer relationships Management Business Activity This data use… Leads to this information… Dashboards, Scorecards Look at order fill rate by One set of customers are lower than the customer average Business Scenario Compare to target fill rate and We are not meeting target fill rates for these explore year to date trends customers and service levels have dropped Explore the orders by product Identify common traits for lower order fill and location rates (similar products, shipping location, Middle Management, etc) Analysts, Power Users Offer promotions to retain these customers Business Decisions Correct cause of lower fill rates (underestimated sales Reports forecast, manufacturing problem, distribution center backlog) Knowledge Workers, How will they use the Casual Users information? OLAP, Ad-Hoc Query Who will use the How should the information? information be delivered? Copyright DecisionPath Consulting 2011 — All Rights Reserved 19
  • 20. From BI Opportunity to Bottom Line Results Copyright DecisionPath Consulting 2011 — All Rights Reserved 20
  • 21. Critical Success Factors- BI Maturity and Business Impact • Executives embrace the new information paradigm • Belief amongst business sponsors that information provides competitive advantage • BI is positioned as a business initiative; new requirements approaches are used that identify and explicitly align new BI capabilities that will support/enable business goals and strategies • BI is incorporated in supporting/changing business processes to support optimal business performance • The BI team is viewed as strategic, has a “seat at the table”, and is actively involved in a business partnership on an ongoing basis Copyright DecisionPath Consulting 2011 — All Rights Reserved 21
  • 22. Questions and DiscussionCopyright DecisionPath Consulting 2011 — All Rights Reserved 22