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  • The challenge and promise of business intelligence revolves around providing employees with the right information, at the right time to accomplish a specific goal. Making this promise a reality demands a business intelligence solution that is comprehensive, secure, integrated with operational systems, and available all day, every day. Business intelligence advancements include: • End-to-end business intelligence platform with integrated analytics including online analytical processing (OLAP); data mining; extract, transformation, and load (ETL) tools; data warehousing; and reporting functionality. This comprehensive, integrated approach helps enable organizations to seamlessly build and deploy robust business intelligence applications while controlling costs. • Improved decision making. Advancements to existing business intelligence features, such as OLAP and data mining, and the introduction of a new reporting server provides enterprises with the ability to transform information into better business decisions at all organizational levels, from the information worker to the CEO. • Scalability, availability, and security enhancements help provide users with uninterrupted access to business intelligence applications and reports. • Enterprise-wide analytical capabilities. ETL tool enables organizations to more easily integrate and analyze data from multiple heterogeneous information sources. By analyzing data across a wide array of operational systems, organizations may gain a competitive edge through a holistic understanding of their business. Source: http://www.microsoft.com/sql/solutions/bi/overview.mspx
  • EPM has three fundamental ingredients: Metrics: Up-to-the-minute snapshots of your key performance indicators (KPIs) in a personalized, web-based dashboard to enable fast, proactive decisions and organizational agility. Business intelligence: Enterprise software designed to track, understand, and manage information. BI enables decision makers to manage by exception, stay informed with alerts, and drill into data to examine the root cause of business conditions. Methodology: A systematic and sustainable means of tracking, measuring, and improving business performance, applied top-down throughout the enterprise. Source: Business Objects Define Strategy Define your company's strategy by putting it within the context of key performance indicators (KPIs) and objectives. Management teams and employees will gain deeper insight by combining rich drill-down capabilities, personalized scorecards, reports, and analysis tools with unstructured data such as documents, spreadsheets, and Web sites. Monitor Metrics Monitor business performance by tracking the progress of KPIs using detailed scorecard views of performance and accountability. Scorecard views can be customized by employee role and allow for quick, personalized notification of status changes. Analyze Issues Formulate a strategy and execute on plans to build scorecards in a collaborative environment. Share insight and feedback through group analysis before scorecards are published and made available to an organization or organizational division. http://www.microsoft.com/office/bi/bpm/default.mspx
  • Proactive. Predictive. Precise. EPM solutions put you in the driver’s seat, with the ability to be: Proactive: Speed is the critical factor.You’re in trouble if it takes two weeks for news of manufacturing problems at a key supplier to bubble up and demand your attention. By then, you face the risk of a costly slowdown in your own procurement, manufacturing, and fulfillment processes.You have to scramble to purchase from a rival supplier—but that supplier needs two weeks advance notice to fulfill an order. EPM solutions are easily configured to alert you to problems in mission-critical areas as they happen. If a key supplier is hit with a labor strike, or a problem with a new product has triggered a surge in customer complaints to your support center, you don’t find out about it at a dinnertime call to your cell phone on the second Tuesday of next month.You find out immediately. It’s red-flagged on top of your EPM dashboard. Predictive: Business is nothing if not dynamic. Knowing what’s up and what’s down requires you to examine all of its elements: Time of year. Geographic region. Color of merchandise. Price of product. Customer demographics. R&D costs. Return rates. Labor costs. In too many organizations today, those dimensions and many more are shaken up like a cup of dice. Whether the roll is a profitable one is too often left to chance. EPM minimizes the element of chance. It enables managers to easily collate, analyze, and drill into historical and external data to ascertain optimum pricing, spending, delivery, and service. Those insights are essential to predicting conditions and adapting accordingly. Precise: The margin for error has diminished. A fast-paced economy captained by fickle consumers magnifies missteps. Precise execution requires precise data— quality information that is consistent across the enterprise. More than ever, one accurate, integrated view is a prerequisite for success. EPM helps provide quality assurance for your information. Because it’s tied to standardization on one BI tool, a common enterprise data model, and a common methodology, it ensures that executives and managers throughout the enterprise work from a single version of the truth. In many cases, the back-end processes that integrate data from customer, supply chain, finance, and other applications to support BI and EPM improve an organization’s overall informational quality by turning inconsistent data into a cohesive whole.
  • Purpose of Balanced Scorecard : A method of implementing a business strategy by translating it into a set of performance measures derived from strategic goals. Reasons for the Need of a Balanced Scorecard Focus on traditional financial accounting measures such as ROA, ROE, EPS gives misleading signals to executives with regards to quality and innovation. It is important to look at the means used to achieve outcomes such as ROA, not just focus on the outcomes themselves Executive performance needs to be judged on success at meeting a mix of both financial and non-financial measures to effectively operate a business. Some non-financial measures are drivers of financial outcome measures which give managers more control to take corrective actions quickly. Too many measures, such as hundreds of possible cost accounting index measures, can confuse and distract an executive from focusing on important strategic priorities. The balanced scorecard disciplines an executive to focus on several important measures that drive the strategy. Business Scorecard gives companies a broad view of business opportunities, through which employees can better understand business challenges, effectively shape solutions, and quickly execute on their objectives. Decision-making happens across all levels of an organization, and empowering employees with powerful business intelligence (BI) solutions can help them have greater impact. Articulate, Monitor, Analyze, Collaborate, and Act A Web-based solution, Business Scorecard Manager provides organizations with a cost-effective stage on which to articulate goals, priorities and strategies, monitor business activity through performance metrics, identify and analyze issues, and collaborate and act on business intelligence. Articulate Clearly define a business strategy using scorecards, identify and map KPIs, and leverage existing business intelligence hidden within other systems. Monitor Easily monitor business performance and KPIs with detailed views of performance and accountability, custom scorecard views, and personalized notification of status changes. Analyze Gain insight into business drivers and perform group analysis using detailed, contextual business analysis from reports, charts, and spreadsheets, as well as unstructured contextual data. Collaborate and act Share strategies, enable collaborative group analysis, assign and monitor tasks, and put insight into action to improve business performance and execute on strategic plans.

1BusinessPerformance.. Presentation Transcript

  • 1. LSSG Black Belt Training Business Performance Management
  • 2. Data to Decisions BI is the technology for translating data into “actionable” information BI => Data => analysis and modeling => DSS => evaluation of alternatives => Decisions
  • 3. Enterprise Performance Dashboards Graphic Source: Business Objects Metrics Business intelligence Methodology Define Objectives Monitor Metrics Analyze Data Improve Process Control Performance Dashboards provide a powerful interface to manage key performance indicators and strategic objectives. Drill-Down capabilities allow the identification of root causes for variation from objectives – facilitation of quick remedial action.
  • 4. EPM: Process Drives Performance Source: Business Objects Define Measure Analyze Improve Proactive. Predictive. Precise.
  • 5. The Balanced Scorecard and Voices of 6S A method of implementing a business strategy by translating it into a set of performance measures derived from strategic goals. Multiple Performance Perspectives Financial : How do we look to our Shareholders? Customer : How do our Customers See Us? Internal Business Process : What should we do that is Excellent? Employee and Organization Innovation and Learning : Can we continue to Improve and Add Value? Microsoft Scorecard Manger
  • 6. Balanced Scorecard Multiple perspectives ensure long-term ability to create value.
  • 7. Internal Business Process Measures
    • Manufacturing Cycle Effectiveness (MCE) = Processing Time / Throughput Time
    • Throughput Time = Processing time + inspection time + movement time + waiting/storage time
    • MCE closer to 1, implies less wasted time, greater efficiency
    Identify Market Create Product Build Product Deliver Product Service to Customer Customer Need Identified Innovation Process Operations Process Post-Sale Service Process Customer Need Development Cycle Time Quality/Defects (MCE) Delivery Cycle Time Satisfaction Segmentation
  • 8. 1. Balanced Scorecard: Financial Customer Internal Business Process Learning & Growth Strategy Objectives Metrics Key Process Indicators Business Analysis: Workout Sessions Catalyst Sessions Leadership Planning SOAR Planning Service/ Process Design Strategic Initiatives Process Improvement Lean/ Waste Reduction Just Do It 2. Strategic Improvement Goals: Based on Key Process Indicators Tied to Business Metrics 3. Prioritize Opportunities 4. Identify Specific Projects, Resources Design for Six Sigma Master Black Belts Black Belts PMO MBB, BB, PMP Core Six Sigma Black Belts Green Belts 8-D, KT Problem Solving BB, GB or Trained Team Ldr Lean Thinking Black Belts Green Belts Kaizen BB, GB or Trained Team Ldr Six Sigma Select Tools Trained Team 8-D, KT Problem Solving BB, GB or Trained Team Ldr
  • 9. Lean Six Sigma Comprehensive Implementation Model