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Seminar why & how to use business intelligence slides

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Smeebi's CEO Rob Connell introduces online business analytics for small business owners and their accountants at the Business Show and Accountex, ExCel, London, on June 6th & 7th 2013, Through …

Smeebi's CEO Rob Connell introduces online business analytics for small business owners and their accountants at the Business Show and Accountex, ExCel, London, on June 6th & 7th 2013, Through Smeebi's Cloud based approached we can democratize BI,

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  • 1. By  Rob  Connell  CEO  of  SmeebiWhy and how to useBusiness IntelligenceMonday, June 17, 13
  • 2. Objectives for today:Get an understanding of BI and the terms - but first of all, letsestablish do you need BI?What business problems do you have that can’t be easily solved,identifiable technical and business pain points?Most companies fail due to poor financial management, perhapscash flow, uncontrolled growth, lack of access to funds?So let’s see if BI can help and how? Remember a bad plan isbetter than no plan!Monday, June 17, 13
  • 3. Agenda:Monday, June 17, 13
  • 4. BI defined- breakthrough thehype5  minsAgenda:Monday, June 17, 13
  • 5. BI defined- breakthrough thehype5  minsDemocratizingBI - effectivesolutionsdemanded by anysized business10  minsAgenda:Monday, June 17, 13
  • 6. BI defined- breakthrough thehype5  minsDemocratizingBI - effectivesolutionsdemanded by anysized business10  minsPractical applicationof BI for an SME with use ofFinancial Management KPIs10  minsAgenda:Monday, June 17, 13
  • 7. BI defined- breakthrough thehype5  minsDemocratizingBI - effectivesolutionsdemanded by anysized business10  minsPractical applicationof BI for an SME with use ofFinancial Management KPIs10  minsDemonstrationof Smeebi- cloud based BI5  minsAgenda:Monday, June 17, 13
  • 8. BI defined - break through the hypeMonday, June 17, 13
  • 9. What’s all the hype on BI about?Business Intelligence?Business Analytics?CPM /BPM Performance Management?Data Visualization?Big Data?Mobile BI?BI is simply about making sure this data is accurate and getsinto the rights hands in a timely manner.Smeebi demonstrates it doesn’t have tobe complicated for the business user...Monday, June 17, 13
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  • 11. Monday, June 17, 13
  • 12. DataMonday, June 17, 13
  • 13. DataMonday, June 17, 13
  • 14. ManagementReportAnalysis,comments & actionsBudgets & ScenariosDashboardDataMonday, June 17, 13
  • 15. Current trends in BI..Self service business intelligence or selling business function managerswill help grow the industry to a 14 billion dollar market.Moving away from large data warehouse solutions and scheduled statictabular reports and more about what you want when you want it,available where you want it online:Data Visualization Integration 33% to 69%Dashboard adoption 58% to 91%Mobile BI integration 9% to 48%Monday, June 17, 13
  • 16. Some more background on BI..Another popular term is Business Performance Management (BPM) or CorporatePerformance Management (CPM) emerged from tools like the Balanced Scorecard(introduced in 1992) and Key Performance Indicators (KPIs).Initially collecting and reporting a small number of ‘balanced’ KPIs to manageand monitor strategy execution.Ever-increasing amounts of data and innovations with predictive analytics,big data analytics and interactive performance reports streamed to ourmobile devices with up-to-date data visualizations.This drives fact-based decision-making (both operationally and strategically)and generates truly powerful competitive advantages.Strategically it is effective but not always cascading down to an operationallevel. Something smaller organisations should be in a better position to do.Monday, June 17, 13
  • 17. What are the most popular and effective toolsAccording to “20 Years of Measuring and Managing Business Performance From KPIsand Dashboards to Performance Analytics and Big Data”Number 1 is Key Performance Indicators - over two-thirds.In second place is performance appraisals (60%)Over 50% use mission and vision statements, to provide organizations with a commonpurpose and direction.The fourth most popular management tool – with just over half of all companies – aremanagement dashboards which bring together performance information (often ingraphs, charts and traffic lights) in a concise display so that performance levels areeasier to communicate and understand.Other popular tools were benchmarking (41%), Balanced Score Card (28%) and rollingforecasting (33%).Monday, June 17, 13
  • 18. What is being measured?Financial performance is still the most measured aspect of any business, almost100 percent of companies (87% of organisations if government included).Almost 100% of companies measure financial performance.2nd is operational performance (75%)Customer (69%)Employees (68%)Sales and marketing (53%).Lower numbers of companies also measure aspects of IT performance, culture and leadership,social responsibility and environmental performance, as well as supply-chain performance.Without the strategic direction it is harder to set targetsfor KPIs, assess individual performance and find the rightbenchmarks.Monday, June 17, 13
  • 19. Practical application of BI for an SMEwith use of Financial Management KPIsMonday, June 17, 13
  • 20. Practical application for a small businessA good starting point:The Financial Management Report & KPI’sToo many business owners spend hours pouring over multiplespreadsheets, P&L reports and calculations with little endproduct.Whilst there are many different aspects to this problem, oneissue we will look at in detail is the use of Key PerformanceIndicators.Monday, June 17, 13
  • 21. Why do businesses need KPIs and real-time analysis?The pressures on small businesses have never been greater.7 out of 10 new employers survive at least two years and 51 % survive atleast five years. The key reason they give for failure is mismanagement.“Over the years Ten Forward Finance have had many clients approach usfor assistance with a failing business. In truth the majority of the issuesthey experience turn out to be due to poor financial management.However , we also see another worrying trend; the lack of easy tounderstand ‘Real-Time’ information”Nathan Balakrishnan TFF, Certified Chartered AccountantsMonday, June 17, 13
  • 22. KPI Definition:Key Performance Indicators (KPIs) can bedefined as measures that provide managerswith the most important performanceinformation to enable them to understandthe performance level of the organisation.KPIs should clearly link to the strategicobjectives of the organisation and thereforehelp monitor the execution of the businessstrategy.EducationThe act of measuring KPI promotes an atmosphereof learning in an organization and fosters criticalconversations. These discussions educate allpersonnel involved.Vital InformationKPIs provide small business owners with an immediate snapshot of the overallperformance of their business. These important KPIs provide vital decision-makinginformation.The Financial Management Report & KPI’sMonday, June 17, 13
  • 23. KPIs driving smart activityKPIs have a certain level of importance in an organization, but only if the KPIleads to actionable steps to achieve a goal.The company must convert the measured, quantified data into actionable itemsto meet its goal.Here are some examples of the type of KPI’s that you may find useful:Improvement in ProfitabilityImprovement in Revenue growthImprovement in net-new customers gainedImprovement in customer satisfactionMonday, June 17, 13
  • 24. What do you want from your business?Are you just starting out, have you been running your business for afew years?Are you looking to sell?Would you like more free time?Do you want to generate enough free cash so you can be mortgagefree in 3 years?Popular KPI’s:Debtor DaysP&L after taxGross MarginRevenueCurrent RatioMonday, June 17, 13
  • 25. Growth Company Ltd - examples of financial ratios What is Current Ratio?A liquidity ratio that measures a companys ability topay short-term obligations. Also known as liquidityratio, cash asset ratio and cash ratio. The CurrentRatio formula is Current Ratio = (current assets /current liabilities). Typically a ratio of between 1.5and 3 indicates a healthy business at least for theshort term.Issue: Current Ratio Declining, bank set a target.We all know how hard it is to get any sortof lendingMonday, June 17, 13
  • 26. Solution:Employ a credit controller and task themto reduce debtor days.Issue: Cash at BankBank Balance and Debtor DaysMonday, June 17, 13
  • 27. So how can Smeebi help Growth Company Ltd?We’ve identified some clear issues and some targets , and we can now pro-actively use Smeebi to track KPI’s…. Smeebi can help business owners toanalyse their finances in a way that is productive, practical and easyBudgets for next quarters andnext yearWhat are the KPI’S for the nextquarters?Need to improve on Debtor days;Target of 45.Improve Gross Margin to 35%Monitor Current Ratio – min 3Increase reserves by X.Monday, June 17, 13
  • 28. KPIs ConclusionWe’ve been able to see that KPI’s are important. As well as historicalanalysis Smeebi also has a neat budget tool that allows planning tosee impact on KPIs.Here are the key messages:Revenue Your critical income fromsales.Debtor Days How this impacts cashflow.Profit/Loss Retained earnings fordividends and reinvesting.Acid Test &Current RatioWill you meet yourobligations?Gross Margin How’s your cost controland pricing?Keep it Simple – 3 or 4 KPI’SBe clear about end goals/objectivesSet attainable and realistic GoalsEnsure they can be accurately measuredSet aside regular time to analyseExamples of KPI’s to monitor and react to:Monday, June 17, 13
  • 29. Democratizing BI - effective solutionsdemanded by any sized businessMonday, June 17, 13
  • 30. Recap - What is Business Intelligence?It is performance management - remember technology is justthere to serve.Insight from Smeebi’s parent OlapCon:“Makes strategies measurable by developing innovativemeasuring, reporting and planning solutions. Moreaccurate forecasts, fact based decisions and getinsights for developing business.”Mika Hurskainen, Chairman of OlapCon, IBM Premier PartnerMonday, June 17, 13
  • 31. Plan & ForecastReport & Analyse Measure & MonitorBusiness Performance ManagementMonday, June 17, 13
  • 32. ImpactoncompetitivenessOperational - StrategicAutomating manual work,delivering informationeffectivelyFor instance, improvementsover spreadsheet manualentry & calculations andmanual report creationAutomated reports - time savings and accuracyMonday, June 17, 13
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  • 34. ImpactoncompetitivenessOperational - StrategicSolutions for strategyimplementationBalance scorecard or‘strategy map’ with KPImeasures for actual vstarget etc. and ability todrill down to detailMeasuring against strategy including KPIsMonday, June 17, 13
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  • 36. ImpactoncompetitivenessOperational - StrategicStreamlining processesTypically using OLAP Cube apowerful method formultidimensional analysis,together with ad hocreporting.Ad hoc reporting & multi-dimensional analysisMonday, June 17, 13
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  • 38. ImpactoncompetitivenessOperational - StrategicPlanning & Predictive Analytics,forecasts and budgets presented in aDashboard overview with one ‘ multipage’ slide show report with allmetrics and comments and trendsSmeebi also use a simple budget toolfor ‘what if’ analysis or scenarioplanning, uses existing data to help getstarted.Planning and forecasting for the future:Monday, June 17, 13
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  • 42. Demonstration of Smeebi - cloud based BIMonday, June 17, 13
  • 43. Set up a streamlined online officeCloud based solutions have removed the barriers to IT:Perhaps you switched to an on-line accounting package? Together with the new breedof add-ons, all cloud based and therefore usually free to try and cheap to keep!Accounting data integrated in minutes with Smeebi for reporting, analysis, budgetplanning and ongoing monitoring that you are on strategy and making good timelyoperational decisions.There are other add-on tools that will integrate to help with other small business painpoints, such as CRM (Smeebi are working on adding other dimensions such as sales byproduct, customer, location)Monday, June 17, 13
  • 44. Set up a streamlined online officeCloud based solutions have removed the barriers to IT:Perhaps you switched to an on-line accounting package? Together with the new breedof add-ons, all cloud based and therefore usually free to try and cheap to keep!Accounting data integrated in minutes with Smeebi for reporting, analysis, budgetplanning and ongoing monitoring that you are on strategy and making good timelyoperational decisions.There are other add-on tools that will integrate to help with other small business painpoints, such as CRM (Smeebi are working on adding other dimensions such as sales byproduct, customer, location)Cloud Accounting + Cloud Email + CloudStorage (receipts & files) + Cloud CRM + CloudPayroll + Cloud BIMonday, June 17, 13
  • 45. company & link to your accounts1.Sign  up,  create  company  &  link  to  accounts2.  View  instant  financial  dashboard  with  your  KPIs3.  Analyse  details,  drill  down.  comment  &  create  reports4.  Create  a  budget  and  plan  mulGple  scenarios  5.  Refresh  data  to  measure  &  monitor    in  personalised  overview  &  shareMonday, June 17, 13
  • 46. Try Smeebi for FREE!Come to stand 350 fora demo and sign up fora free account for therest of 2013!Rob ConnellManaging DirectorSmeebi Ltd.rob.connell@smeebi.comUK + 44 20 8123 1302twitter.com/Smeebifacebook.com/Smeebiwww.smeebi.comTo read the latest BI news andproduct updates please visit ourblog on www.smeebi.com/blogMonday, June 17, 13