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Fei presentation 4-22-08 Fei presentation 4-22-08 Presentation Transcript

  • Because Finance Touches All Areas ofan Organization… Manage …an Effective Ability to Taxes Finance invest Preservation Ability to and Function is raise Management Ability to funds of Capital Critical to manage portfolio Prospective Success at risk Support Owners and “What If” Leading Analysis other stakeholders Organizations Standardize Finance Director BetterConsolidate / CFO Budgeting Run an efficient Support decision finance function making Eliminate Real-time information Measurement Automate Quantitative More reliable and Qualitative information analysis Faster reporting © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 2
  • Value Preservation to Value CreationKPMG International commissioned the Economist Intelligence Unitto conduct research to examine how finance executives areimproving the effectiveness of the finance and accounting function  Survey of 286 senior executives (53% came from organizations with > $1 billion in annual revenues)  Cross section of industriesResearch found that top performing businesses have topperforming finance functions © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 3
  • Value Preservation to Value Creation –What Does That Mean?Transforming the finance function  From an inward-looking organization focused primarily on financial reporting and controls (value preservation)  To one that spends more time focused on strategic decision- making (value creation)Challenges  Assumption of new responsibilities  Pressure to control costs  Regulator and investor demand for information and tight controls © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 4
  • Business Intelligence OutlineDiscussion objectiveWhat is Business IntelligenceCommon challengesBenefits achieved through successful implementationSummary © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 6
  • Business IntelligenceDiscussion ObjectiveShare what we know about BIShare what others are saying about BIShare the perspective of BI stakeholdersWhat is BIShare common challengesShare our lessons learnedProvide leading practices examples © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 7
  • Objectives of the discussionThe objective of this discussion is to share what we know about Business Intelligence, and what itcan mean to the Enterprise. What are some of the things you have heard of when you think of BI? How do we Ability to do The planning compare as a“ variance analysis for current and prior periods easily within the system process is very stressful due to time constraints and data gathering efforts business in our industry? Across industries? I have the data but my reports BI Is just a provide multiple technology for answers to the reporting Better, faster, quicker same question. – better information Level detail Does my faster, allowing needs to be business resources to be lower to allow strategy align deployed to higher meaningful with my BI value activities What KPIs does Where does a BI detailed analysis program? my business CC sit, finance need to assess We need a or IT or other? performance centralized source to pull data I am a large ERP I need the ability Core customer, what to store and use analytics in do I do with all different exchange rates What do I need to report on a matter of hours the different BI offerings from “ globally? versus days them? © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 8
  • Business IntelligenceWhat is Business Intelligence?Industry ViewKPMG ViewKPMG BI FrameworkTop 10 TrendsCFO and CIO perspective – What mattersWhy we should care about BI?What can BI mean?Business Strategy AlignmentThe promise of BIBI and Business Performance Management (BPM)Components of BI © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 9
  • What is Business Intelligence?Business Intelligence (BI) is the use of information that enables organizations to best decide,measure, manage, and optimize performance to achieve efficiency and financial benefit.– Gartner, 2008 Layers of Gartner Business Intelligence & Performance Management Framework Business Centric Business Strategy Performance Management People Process BICompetency Center Analytic Applications BI Platforms Information Management Infrastructure IT Centric Source: Gartner Position Paper, October 2006BI — a set of methodologies, processes, architectures, and technologies that transform rawdata into meaningful and useful information — Forrester, 2008 © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 10
  • What is Business Intelligence?It’s about business performance……The capacity to acquire, correlate and transform data into insightfuland actionable information through analytics, enabling anorganization and its business partners to make better, more timelydecisions © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 11
  • KPMG Framework: Adapted IndustryView Enterprise BI Framework Key Framework Components • Corporate Strategy and Alignment to Goals Tactical (KPI. Scorecards, Short term decisions) Strategic (Enterprise Insights ) Financial Reporting & Analysis (External, Regulatory, Managerial) Operational Reporting (Customer, Product, Capacity) • Organizational Readiness and Staffing Business Business Strategy • Enterprise Business Intelligence Vision Alignment • Executive Commitment and Sponsorship • Organizational Structures and Accountabilities • BI Competency Center • Policies and Procedures (Master Data Mgmt) Governance • Risk, Control, Compliance • Change Management/QA • KPI’s/Metrics Defined Performance • Reporting Definition and Development (content) Management • Performance Scorecards/Dashboards Defined Process & Reporting • Decision Support and Workflow Mapped • Master Data Management Prioritization Processes Integrated Information • Data Standardization Management • Conceptual Design • Information Integrity & Compliance • Analytics Applications & Tool Portfolio/Selection Business Intelligence • OLAP Front End/Back EndTechnical Platform (Translation) • Visual Development Tool • Information Access and Delivery Methods • Technology Tool Portfolio and Selection Infrastructure • Data Warehousing/Mining Management/Source Systems • ETL and Data Cleansing/Data Integrity • Security and Data Access Technologies © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 12
  • The Top 10 Trends inBusiness Intelligence1. Information Quality: at the heart of many business challenges and opportunities2. Master Data Management: building a common language3. Data Governance: overcoming organizational barriers4. Enterprise-level BI: striving for an integrated view of the business5. Regulatory Compliance: driving BI investment6. Enterprise Data Transparency: keeping companies off the front page7. Actionable BI: turning volumes of data into usable insights8. Service-oriented Architecture: drawing the connections to BI9. “Rightsharing:” making BI development more efficient10. Semi-structured and Unstructured Data: entering the BI universe Source: TDWI © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 13
  • Business Performance is aCFO Priority% of respondents Measuring/Monitoring Business Performance Partnering with your organization to identify and execute growth Continuous process improvement/business improvement Leading finance-related compliance programs Meeting fiduciary and statutory requirements Source: IBM Global CFO Study, December 2005 © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 14
  • BI is a CIO Priority © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 15
  • Why Do We Care About BI?There are many benefits to the business at the surface, however a sustainable and defined infrastructureand governance framework is required to support the consistent delivery of effective BusinessIntelligence and Performance Management information. Valued Business Information Dashboards, Monitoring, Insight KPIs, Scorecards Real Time Reporting Supporting Framework Business Strategy Alignment Governance Integrated Information Management BI Platform Infrastructure – Database, Security, ETL © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 16
  • What Can BI Mean?Performance management aligning operations to the strategic planA enterprise-wide framework to assess, monitor and act upon business unit,employee, customer, supplier performanceA set of standard measures, performance indicators, and metrics for evaluatingcompanies for acquisition, as well as monitoring their performance duringintegrationRole-based scorecards that indicate company sales revenue, profit, and inventoryturns by region and product versus planCorporate dashboards that allow management and staff to reduce T&E costs byseeing potential & lost savingsReports that identify the effectiveness of product placement within a storeEliminating manual spreadsheet reporting and manipulation processes bywarehousing data and using standard enterprise-wide analytics platform © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 17
  • The Promise of Business Intelligence Strategy Map Drives definition of all measuresStrategic Dashboards – Executives can quicklyassess their progress toward strategic objectivesand identify areas for action as well as reviewleading indicators to drive the business forward. Management Dashboards – Managers and business analysts can track frontline performance, track against plan, quickly review group performance and drill down into specific details. Granular reports are available for performance reviews. Operational Dashboards – Empowering the front line with information to track daily activities and processes. Employees can drill down into detailed reports and use information to improve business process. Simplified access and standardized reporting across the organization based on a single version of the truth empowers improved decision making at all levels © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 18
  • Business Intelligence and Performance ManagementEffective performance management focuses attention on the things that drive the mostvalue and provides a clear link between day-to-day activities and long-term strategic goals. Effective Measurement – Strategy and Performance Management Framework business objectives are the starting point for identifying the KPIs and measures required to manage the business. Effective Performance Reporting and Reviews – Clear principles are articulated around expectations of how information is to be used to drive effective decision-making and technology is in place to support the closed loop process. Effective Tracking and Remediation – Fit for purpose processes exist for capturing issues and actions to resolve. Accountabilities are defined and best practices are accessible to resolve individual or team issues. Effective Rewards and Compensation Process – Processes are in place that link personal rewards to the strategic business objectives. This will involve strategically linked measures being included as part of an individual’s performance review. © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 19
  • Business IntelligenceWhat is Business Intelligence?Where does finance fit in?What can finance do to improve?What does finance need to do to get there? © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 20
  • Where is finance’s role?Its about less time on cost control and more time on decision support… Key Points Top Performing AverageAreas where finance plays a leading role © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 21
  • What can finance do to improve?… More time on planning budgeting and forecasting, and managementreporting. Top five priorities for improvement in finance’s capabilities © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 22
  • What does finance need to do to getthere?Use non-financial performance metrics, and increase the understanding within the business. Top five areas where finance needs to improve its skills © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 23
  • Business IntelligenceWhat is Business Intelligence?It’s about business performance…the capacity to acquire, correlate and transform data into insightful andactionable information through analytics, enabling an organization and its business partners to make better, moretimely decisions.What can it mean?  Align, assess, monitor and act upon performance standard  Acquisition, integration, data model, scorecards  Dashboards, savings, alerts, effectiveness, eliminating Excel, analyticsFramework  Strategy alignment  Governance  Performance management and reporting  Integrated information management  BI platform  InfrastructureFinance’s role  Its about less time on cost control and more time on decision support  More time on planning budgeting and forecasting, and management reporting  Use non-financial performance metrics, and increase the understanding within the business © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 24
  • Business IntelligenceCommon ChallengesChallenges from the stakeholder perspectiveWhere do I begin? How do I know I am zeroing in on BI? © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 25
  • Common Challenges CFO CMO CEOFragmented reporting Lack of agility in defining &Compliance (SOX etc.) Inadequate performance insight managing marketing plansLimited forecasting capabilities Lack of robust analytics Lack of data and informationTimeliness in reporting integrity Lack of customerData integrity relationship and intelligenceLack of robust analytics Costly, manual reporting to get management comprehensive viewSpreadsheet dependency Wasted communicationRedundant data marts Risk of error and loss of economic based on poor informationIneffective KPIs value What is BI? COO CIO Lack of insight on operations costRedundant data, multiple – big ‘hidden factory’sources Multiple transaction systemsUser security Lack of intelligent, automatedTechnology vs. business Clients aren’t asking “How do I turn customer support servicesrequirement interpretation information into insight?” Unable to monitor product landed But rather saying “I need costToo many controls over data trustworthy data access, integrityLack of planning & resources and validation” Not enough detail, need “drill- down” capabilitiesfor coordinated BI strategy © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 26
  • Where do I begin? How do I know I amzeroing in on BI?Do these issues resonate with you and your team members?How do we compare as a business in Does my business strategy align withour industry? Across industries? my BI program?I can’t provide accurate forecasts or What KPIs does my business need toplans. assess performance?What are my global reporting Is my BI program working?requirements? Am I meeting my industry regulatoryI have 100s of reports, how do I requirements or my SEC requirements?standardize? I have the data but my reports provideI need flexibility between my actual and multiple answers to the same question.my forecast data. What are my industry metrics?Tax needs to be able to consume myforecast data for their purposes. © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 27
  • Business IntelligenceBenefits achieved through successful implementationPotential benefits are broad in reachLessons learnedGeneral benefits © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 28
  • Potential benefits are broad in reach CFO CMOEnhanced capability for analytics and CEO More effective use of sales andpredictive analysis marketing tools Increased shareholder value throughCapability to support KPI Enhanced insight into markettransparency and drill down increased customer loyalty information and customer/clientGreater alignment of financial and Competitive advantage preferencesoperational reporting to strategy Quicker business decisions Enhanced utilization of personalizedEnhanced capability to support a products/services and customercomplete digital reporting process Enhance view of enterprise information stratificationIntegrated financial, managerial, Target products correctlyregulatory, and control reporting and Integration across organizationalmeasurement functions to provide EnhancedOne version of the truth Performance Management COO Accurate spend tracking and CIO supplier scorecardingMore standardized Engineering cost reduction savingsinformation architecture Ability to better manage and controlMore timely information advertising spendingdelivery Trustworthy data access, integrity Ability to tie financial and and validation which provides operational forecastEnhanced sustainability andrepeatability of master data Business Insight Ability to retrofit design from servicemanagement processes issues Ability to tie labor to earned valueEnhanced data integrity methods and optimize workforcestandards and governance cost © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 29
  • What have we learned?Engagements with long-lasting success have taught us a few lessons to share It is critical to understand your process deficiencies – both from a performance and controls perspective Process Standardizing and simplifying processes and data will enhance performance and control Focus on the beginning of the process redesign lifecycle, particularly requirements and visioning Involvement and contribution of senior executive leadership can provide the governance and management necessary to achieve organizational buy-in Organization Bureaucratic processes and organization structures can slow and complicate the completion of process implementation improvements and dampen user support It is critical to constantly manage the stakeholders’ expectations of the transformation program Develop a vision with supporting goals and objectives based upon improving specific Strategy capabilities achieves success in the transformation program Complex levels of detail that typically exist at global manufacturers (particularly in the budgeting process) diverts focus from analysis and leads to information overload Finance should focus on those views and hierarchies that concentrate value and enable Reporting future looking analysis rather than an extensive list of views and reports Business Intelligence capabilities provide an improved ability to quickly identify and respond to performance and risk management issues © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 30
  • Business IntelligenceBenefits achieved through successful implementationWhat BI can do for youBI’s value to your organizationMarket overviewBI applicationsBI leading practicesBased on the number of failed and under-utilized BI implementations – to successfully implement BI tools CFOsand CIOs need to team together in the areas of:• Resource management/Organizational alignment• Data quality/integrity, and• Overall alignment/integration of Enterprise and BI Strategies © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 31
  • BI can provide you…Vision, strategy and performance alignmentProactive decision capabilitiesGovernance and communicationSustainable change managementConsistent control and compliance across the organizationReporting and monitoringFlexible data model(s)Foundational toolset for future needsACTIONALBLE INSIGHT and DECSION MAKING ABILITY © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 32
  • The Application of BusinessIntelligenceExamples of Business Intelligence Applications Strategy alignment Governance BI Program Performance Management Framework Order Service & Supply Finance HR Management Contact Sales Marketing Chain & Fulfillment Center A/R & A/P Employee Supplier Order Churn Pipeline Campaign Analysis Productivity Performance Linearity Propensity Analysis Scorecard GL/Balance Compensation Spend Orders Customer Triangulated ResponseSheet Analysis Analysis Analysis vs. Available Satisfaction Forecasting Rates Inventory Customer HR Compliance Procurement Resolution Sales Team Product & Product Cycle Time Reporting Cycle Times Analysis Rates Effectiveness Propensity Profitability Workforce Inventory Backlog Service Rep Up-sell/ Loyalty and P&L Analysis Profile Availability Effectiveness Cross-sell Attrition Analysis Expense Turnover Employee Fulfillment Service Cost Cycle Time Market Basket Management Trends Expenses Status Analysis Analysis Analysis Cash Flow Return on BOM Analysis Customer Service Lead Campaign ROI Analysis Human Capital Receivables Trends Conversion Master Data Management BI Platform Data Models © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 33
  • Leading PracticesA few sample itemsBusiness StrategyMeasures should be aligned with, and demonstrably support, the business strategyNorton-Kaplan strategy maps are considered the most useful organizing constructThey should define linkages from the financial to customer to operationalprocesses and finally people (as the key foundational element)Measures should cascade from the business strategy down to the individualscorecards at the lowest point of organizational accountability © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 34
  • Leading PracticesA few sample itemsPerformance ManagementDefines how the BI and PM program deliverables link to achieve the overallbusiness strategyUse rolling corporate planning forecasts (e.g., 3 – 6 months forward, regardless ofyear-end, corporate plans of 3 – 5 years)Measures should be quantifiable and include targetsReports should show actual performance against targets and measure forecastaccuracy to improve the process and increase confidence in the numbers © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 35
  • Leading PracticesA few sample itemsPeople & ProcessesCreation of an “BI Competency Center” to support field level activities and driveconsistency in people skills and processesExtensive focus on change management to drive the right set of behaviors – usingthe information for analytics, focusing only on the key metrics instead of allmetrics, etc.Consistent set of processes for analytics and data management are defined andimplemented (e.g., archival, retrieval, storage, refresh, MRD controls/changemanagement)Data is effectively managed across its “lifecycle” (model, cleanse, map, etc.) withsupporting governance to ensure the data is well maintained and the MI is flexibleto support the changing needs of the business © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 36
  • Leading PracticesA few sample itemsAnalytic ApplicationsDefine the relationship and integration between the analytic applications to achieveneeded levels of consistency, relevancy, accuracy and timeliness for cross-functional analysisMove from reporting what happened, to analyzing root causes, or predicting whatmight happen next under certain customer, competitor, or market scenariosPulls all the source data into a single analytic tool to harmonize reporting andpromote consistency © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 37
  • Leading PracticesA few sample itemsInformation Management StructureAddress how the data architecture and data integration infrastructure ensureefficiency and agility to react to changing business requirementsConsistency in data used across the other layersAppropriate controls are in place to provide optimum security and appropriateaccessCore ERP functionality is leveraged to the maximum extent © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 38
  • Leading PracticesA few sample itemsBI PlatformsConsists of Enterprise Information Portals (EIPs) for providing access to bothstructured and unstructured data, augmented by knowledge management toolsSupports process improvement, definition, and captureMonitors and measures improvements in processAccess to corporate data and ability to push information stores should be designedto increase user productivity and knowledge sharingConsider a phased roll-out to build expertise and support for changeEnsure data harmonization across multiple source systems © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 39
  • Business IntelligenceSummaryObjective of this discussionBusiness Intelligence – Our definitionTop BI TrendsCommon ChallengesLessons LearnedBenefits achieved through successful implementationMarket OverviewLeading Practices © 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 40