Analysing Analytics: What to Consider Prior to Embarking on a BI Implementation to Maximize Value

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"Analyzing Analytics: What to Consider Prior to Embarking on a BI Implementation to Maximize Value." Presented at the Mid Market IT Summit in Las Vegas, NV, June 27th, 2011

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Analysing Analytics: What to Consider Prior to Embarking on a BI Implementation to Maximize Value

  1. 1. Analyzing Analytics: What to Consider Prior toEmbarking on a BI Implementation to Maximize Value Dr. Alma Barranco-Mendoza Chief Information Officer Trinity Western University Langley, BC, Canada Mid Market IT Summit Las Vegas, NV, June 27th, 2011
  2. 2. Understanding Business Intelligence (BI)!   BI is a broad category of technologies and applications to help enterprise users make better business decisions by: !   gathering, !   storing, !   analyzing, and !   providing access to data.Dr. Alma Barranco-Mendoza Mid Market IT SummitTrinity Western University Las Vegas, June 27th , 2011
  3. 3. BI Applications!   BI applications include the activities of: !   decision support systems !   query and reporting, !   online analytical processing (OLAP), !   statistical analysis, !   forecasting, and !    data mining.Dr. Alma Barranco-Mendoza Mid Market IT SummitTrinity Western University Las Vegas, June 27th , 2011
  4. 4. BI Application Uses!   BI applications can be: !   Mission-critical and integral to an enterprises operations or occasional to meet a special requirement. !   Enterprise-wide or local to one division, department, or project. !   Centrally initiated or driven by user demand.Dr. Alma Barranco-Mendoza Mid Market IT SummitTrinity Western University Las Vegas, June 27th , 2011
  5. 5. Data Analytics!   Data Analytics is the science of examining raw data with the purpose of drawing conclusions about that information. !   Often involves studying past historical data to: !   research potential trends, !   analyze the effects of certain decisions or events, or !   evaluate the performance of a given tool or scenario.!   Goal: to improve the business by gaining knowledge which can be used to  make improvements or changes.Dr. Alma Barranco-Mendoza Mid Market IT SummitTrinity Western University Las Vegas, June 27th , 2011
  6. 6. Analytics vs. Data Mining!   Distinguished by: !   the scope,  !   purpose and !   focus of the analysis. !   Data mining: uses sophisticated software to sort through huge data sets to determine undiscovered patterns and establish hidden relationships. !   Data analytics: its focus is inference, the process of deriving a conclusion based exclusively on what is already known. The data sets required are generally much smaller than those required for data mining.Dr. Alma Barranco-Mendoza Mid Market IT SummitTrinity Western University Las Vegas, June 27th , 2011
  7. 7. Prior to a BI implementation!   Prepare and define the DOS: !   Data: Analysis is only as good as your data. !   Objective: Clearly identify the objective. !   Scope: Clearly define the scope.Dr. Alma Barranco-Mendoza Mid Market IT SummitTrinity Western University Las Vegas, June 27th , 2011
  8. 8. Prior to a BI implementation!   Use the RACT test to design your business case: Relevant Accurate Insight should be Correct, precise appropriate to answer important business questions Consistent Timely Obtain the same results Answers and Insights across multiple tools and should be available when applications. needed. (Source: Gartner)Dr. Alma Barranco-Mendoza Mid Market IT SummitTrinity Western University Las Vegas, June 27th , 2011
  9. 9. Develop an Information Strategy!   Strategize: Executive management defines and articulates the overall strategy.!   Align: Bus. Unit managers align functional strategies with corporate strategy.!   Govern: Data stewards/IT focus their attention on the data most important to the strategy.!   Execute: Business and IT work together on operational initiatives directed by functional strategies.!   Optimize: Analytical applications improve frontline decision- making with accurate predictive analytics (Source: Kevin R. Quinn, “Developing an Information Strategy”, Information Builders) Dr. Alma Barranco-Mendoza Mid Market IT Summit Trinity Western University Las Vegas, June 27th , 2011
  10. 10. 7 Common Pit Falls to Avoid1.  Ignoring data quality !   “Garbage in = garbage out” !   Consider creating a data quality assurance program !   Include quality assurance, quality control, inspection, and audit. !   Put responsibility for data quality where it belongs — in the business (define data stewards)2.  Not having a single version of the truth !    A true enterprise-wide understanding of the project and how it will positively transform the business is critical to BI success. !   Get buy-in from senior management and communicate to the entire organization. Dr. Alma Barranco-Mendoza Mid Market IT Summit Trinity Western University Las Vegas, June 27th , 2011
  11. 11. 7 Common Pit Falls to Avoid3.  Assuming that BI is a one-time project !   BI is an activity, not a project. !   Usually, more than half of the requirements are going to change within the first eight months to one year, !   Think of BI as an "evolutionary" process !   Plan and budget accordingly. 4.  Building for the power user !   "If we build it, they will come” hardly ever holds true !   design the system to appeal to the mass user and then, if needed, expand the capabilities for the power user.Dr. Alma Barranco-Mendoza Mid Market IT SummitTrinity Western University Las Vegas, June 27th , 2011
  12. 12. 7 Common Pit Falls to Avoid5.  Assuming that BI is a “one size fits all” solution  !   Assuming, without analysis, that existing enterprise application BI tools can do the job could be far more expensive in the long run. !   Build a business case for more-strategic BI than management reporting alone.6.  Becoming dazzled with dashboards !   Impressive graphical dashboards, without the required data integration and architecture behind it, are just another flawed reporting tool. !   Incorrectly implemented dashboards can cause a lack of confidence in BI and undermine long-term efforts.  Dr. Alma Barranco-Mendoza Mid Market IT Summit Trinity Western University Las Vegas, June 27th , 2011
  13. 13. 7 Common Pit Falls to Avoid7.  Assuming you can fully outsource BI implementation  !   Service providers can complement a skills shortage and provide "re-usable methodologies," but they are no replacement for knowledgeable employees who fully understand the business. Dr. Alma Barranco-Mendoza Mid Market IT SummitTrinity Western University Las Vegas, June 27th , 2011
  14. 14. Summary!   BI is a broad category of technologies and applications to help enterprise users make better business decisions.!   The success of a BI implementation critically depends on the initial planning stage. !   Develop a corporate information strategy. !   Clearly define Data, Objective and Scope. !   Develop a business case that is Relevant, Accurate, Consistent and Timely.!   Avoid common pit falls.Dr. Alma Barranco-Mendoza Mid Market IT SummitTrinity Western University Las Vegas, June 27th , 2011
  15. 15. Summary!   Create a data quality assurance program.!   Define a corporate-wide single version of the truth and assure senior executive buy-in.!   Think of BI as an "evolutionary" process, plan and budget for it.!   Design the system to appeal to the mass user.!   Build a business case for strategic BI and evaluate multiple vendors.!   Don’t let dashboards be your sole focus.!   Don’t try to outsource the entire BI implementation.Dr. Alma Barranco-Mendoza Mid Market IT SummitTrinity Western University Las Vegas, June 27th , 2011
  16. 16. Questions?!   Contact: !   Dr. Alma Barranco-Mendoza, CIO !   Trinity Western University 7600 Glover Rd., Langley, BC, Canada ! Linkedin: http://www.linkedin.com/in/almabarranco !   Twitter: @iridiaDr. Alma Barranco-Mendoza Mid Market IT SummitTrinity Western University Las Vegas, June 27th , 2011

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