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Business Intelligence in decentralized organizations : a business case

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Implementing BI core models to govern and manage performance in decentralized organnizations and to manage post merger processes

Implementing BI core models to govern and manage performance in decentralized organnizations and to manage post merger processes

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  • 1. Empowering a “think global, act local” business strategy with BI core model Empowering a “think global, act local” business strategy with BI core model Jean-Luc CHIRON, CIO Legrand Group Olivier NINET, Manager Business&Decision
  • 2. Empowering a “think global, act local” business strategy with BI core model Content • 1 - Introduction • 2 – BI core-Model : Strategy • 3 – BI core-model : Implementation and Deployment • 4 – Conclusion
  • 3. Empowering a “think global, act local” business strategy with BI core model Legrand Profile Legrand operates in a vast and solid market with strong long-term growth potential. This market amounts to some 60 billion euros in the electrical installation and data network sectors. Turnover: 3 578 M€ Workforce 29 600 (in over 70 countries) Electrical Intelligence solutions and services Integrated functions Enhanced Sales by activity functions Commercial: 50% Standard Residential: 40% products Industrial: 10% No electrical power supply
  • 4. Empowering a “think global, act local” business strategy with BI core model Legrand : focus on Information System • IT lanscape – Decentralized ERP : Mapics, Oracle, mfg/pro, SAP. – Datawarehouse : IBM Cognos C8, Datastage, SAP BPC, WPC – Supply Chain Management : Manugistics (DRP), Catalyst (WMS) – HR : Sigal, local pay-roll systems – CRM : Salesforce.com – XAO : Catia – PLM: e-Matrix • IT headcounts : 322 (incl 98 in France) • Data-center : Limoges(fr) and Varese(it)
  • 5. Empowering a “think global, act local” business strategy with BI core model Business&Decision Profile A global player in solutions and Our key success factors: Systems Integration Founded in 1992 * Ability to align business best Presence in 19 countries practices with innovative and More than 1700 worldwide clients specialised technology, to develop 2500 employees IT systems designed to meet our Listed on Eurolist C customers’ business needs. Delivered in excess of 3,000 projects * Partnering with our customers through the life-cycle of the An expert in: project: from consulting to continuous improvement, through hosting & ongoing change * Business Intelligence (BI) management * Customer Relationship Management (CRM) * e-Business * Expertise to create delivery * Enterprise Information Management (EIM) models which can be adapted to * Enterprise Solutions our customers needs, industry * Management Consulting requirements and cultures.
  • 6. Empowering a “think global, act local” business strategy with BI core model Introduction (1/4) • “Through 2012, more than 35 per cent of the top 5,000 global companies will regularly fail to make insightful decisions about significant changes in their business and markets” Gartner Business Intelligence Summit, 2009 • Through reporting and analytical processing, Business Intelligence (BI) solution provide : – historical, – current and predictive views of business operations • Benefits of BI applications are numerous : – Elimination of cost due to legacy reports production – Group division may control and ensure that local unit are on target for corporate strategy – Local unit can report, control and analyze their business with a solution adapted to their local needs
  • 7. Empowering a “think global, act local” business strategy with BI core model Introduction (2/4) • Through an accelerated series of targeted acquisitions, the Legrand Group has been able to gain a unique global position and raise its profile across the world. – Over 120 acquisitions • Consequently, the Group is now a large organization with multiple local units. Each of them dedicated to manufacturing activities or to sales activities or both
  • 8. Empowering a “think global, act local” business strategy with BI core model Introduction (3/4) • ERP systems among subsidiaries are not unified – QAD/MFG Pro in Hungary, Mexico, Costa Rica … – Infor Mapics in Austria, Spain, UK, India, China, Russia, Poland, Potugal… – Oracle e-Business and SAP in France… • Organization is mainly globalized – Finance, Marketing, Supply Chain Management, Purchase, IT … • Before joining the Group, most of the subsidiary didn’t know anything about Business Intelligence
  • 9. Empowering a “think global, act local” business strategy with BI core model Introduction (4/4) • Alignment of BI with Legrand’s context has been achieved with BI core-models through an enterprise data warehouse architecture : – 4 functional domain addressed : Sales, Marketing, Supply chain and Finance – 1 500 named users – More than1 500 reports – 200 analytical area • IBM Cognos 8 has been chosen for his ability to deliver a complete range of BI capabilities – Reporting – Analysis – Dashboarding and Scorecards – On a single, service-oriented architecture (SOA)
  • 10. Empowering a “think global, act local” business strategy with BI core model Content • 1 - Introduction • 2 – BI core-Model : Strategy • 3 – BI core-model : Implementation and Deployment • 4 – Conclusion
  • 11. Empowering a “think global, act local” business strategy with BI core model BI Core-Model Strategy • Legrand is a global company operating with decentralized processes. What value does Business Intelligence bring to this context ? • 1 – Performance management can be managed globally – Core model provides the link between the local and the global view : eg, at corporate level, results by customer is too detailed,. • 2 – Autonomy at the local level – No need of IT support in local unit – Ability to monitor and challenge sales representative and team results – Core model provides both a local (eg. Local classifications of product data) and global (eg : group level product classifications) view of the same data • 3 – Empowerment at the field level – Legrand BI best practices are delivered to local unit – Statistics are delivered to customers regularly and help sales representative find opportunities to increase their sales
  • 12. Empowering a “think global, act local” business strategy with BI core model BI Core-Model Strategy • 4 – Local execution but global control – Core model provides a quality proof process and short delays to reconcile data at corporate level without mandating common ERP or even common operational business processes – Financial consolidation in less than 8 days despite heterogeneous applicative architecture – Follow-up of sales by marketing product line is done at a Group level each month – Logistic and Purchase are consolidated as well but at lower frequency • 5 – Agility – Considering new acquisitions, BI core-model helps to accelerate post-merger process • 6 – Quality and governance – Ability to better manage the quality of local operational system and make business accountable for data quality • 7 – Economies of scales, resulting in lower TCO – IT is centralized and maintenance effort and infrastructure costs reduced
  • 13. Empowering a “think global, act local” business strategy with BI core model BI Core-Model Strategy Corporate vision Corporate vision Local Vision Local Vision Corporate vision Corporate vision Local Vision Local Vision Corporate vision Corporate vision Local Vision Local Vision • Core-model BI is a different approach than the Enterprise data warehouse approach: – Data model is unique but physically rolled out in every local unit – Each local unit populates its core-model with its own data (e.g. customer referential is different from one subsidiary to another) – The core model mandates reconciliated data on some domains (financial, marketing product line). Reconciliation must be done at local level, based on well defined group master data – Benefits from reconciliated data are not only “bottom-up” : data Institutional reports and aggregated data views also help local teams to gain from Legrand’s BI best practices
  • 14. Empowering a “think global, act local” business strategy with BI core model BI Core-Model : General organization • Organization dedicated to BI core-model solution is a mix of centralized and decentralised stakeholders Centralised • Technical administration activities • Operation • Maintenance with offshore subcontractor BI Technical • Servers and licensing costs shared Platform Local Unit • Definition of common needs with a restricted number of local subsidiary • Autonomy when building simple reports or analysis area for local purpose • Accountability on the quality of data populating the BI solution • Administration of local access to the application • Without local IT support
  • 15. Empowering a “think global, act local” business strategy with BI core model BI Core-Model : Challenges • Defining and building a BI core-model addresses several challenges • 1 – Fulfilment of multiple business needs with a generic BI Model • 2 – Robustness – BI solution are gathering data coming from several systems : • Finance and accounting, sales, warehouse management system... – Furthermore, local units may operate different systems (Mapics, SAP, Mfg/pro,...) • 3 – Technical architecture – Impact when choosing to deploy core-model – How a company like IBM is able to offer Performance Management solution in adherence with those constraints and challenges ?
  • 16. Empowering a “think global, act local” business strategy with BI core model Content • 1 - Introduction • 2 – BI core-Model : Strategy • 3 – BI core-model : Implementation and Deployment • 4 – Conclusion
  • 17. Empowering a “think global, act local” business strategy with BI core model BI Core-Model Implementation 1 - Fulfilment of business needs with an unique BI Model • Operational activities are the same within the Group : – All unit face the same issues issues in manufacturing product; supply chain management has the same complexities.. • Recommendations – Elementary data required for BI solutions are similar from one location to another and reports as well – BI core-model should not address the specificities of each local unit – But BI core model must guarantee its end-users an area from which they will be able to analyse data and address manually those specificities.
  • 18. Empowering a “think global, act local” business strategy with BI core model BI Core-Model Implementation 2 – Robustness • Simplicity when extracting data from ERP: – Less transformation rules or filter criteria as possible – All calculation are done by in BI system – Scope of extraction defined during specification phase and is wider than expressed business needs. • Each local unit must strictly follow these rules and is accountable for its own data quality • BI core-model is consequently independent from underlying ERP • Deploy pilot first: – One operating SalesForce.com, One operating MFG PRO, One operating infor ERP
  • 19. Empowering a “think global, act local” business strategy with BI core model BI Core-Model Implementation 3 – Technical architecture • BI platform may be centralised from a technical standpoint • Four database cases are operated asynchronously, one by main time zone – America, Asia, Western and Eastern Europe • The ETL IBM Datastage is used to build and operate complex data flows – Subsidiary running Oracle e-business for example BI Core-Model West ern Eastern America Asia Europe Europ
  • 20. Empowering a “think global, act local” business strategy with BI core model BI Core-Model Implementation • In BI solutions (core-model or not), delivery to end-users has to fulfil different needs : – Activity reporting for local unit or for Group Division at an aggregated level – Business analysis for local unit or for Group Division at an aggregated level – Dashboards and Scorecards for several level of management (local or group)
  • 21. Empowering a “think global, act local” business strategy with BI core model BI Core-Model Implementation • IBM Cognos 8 delivers the complete range of BI capabilities – Reporting, Analysis, Dashboards, and Scorecards -- on top of a single service-oriented architecture (SOA)
  • 22. Empowering a “think global, act local” business strategy with BI core model BI Core-Model Implementation • Before IBM Cognos 8, Legrand was facing limitations when deploying BI core-model – Specific characters (Greece, China, Turkey, etc.) are now fully visible in reports – With its full-web solution, deployment of core-model is now possible into countries with low internet bandwidth. Issue with client-server solutions are now in the past.
  • 23. Empowering a “think global, act local” business strategy with BI core model BI Core-Model : Next steps • Migration toward IBM Cognos 8.4 – Expected benefit is to increase autonomy of local units with less and less IT support • Analysis is provided with multidimensional model • With Analysis Studio (web solution) • Or directly into Excel (Cognos Analysis fro Excel)
  • 24. Empowering a “think global, act local” business strategy with BI core model BI Core-Model : Organization • Business&Decision provides its BI expertise and is fully integrated into Legrand’s landscape BI Expertise Service desk Delivery center (India) (Portugal) Business Application Support (India) Operation
  • 25. Empowering a “think global, act local” business strategy with BI core model BI Core-Model : Organization • Next step is to include usage of HP quality center into BI core-model projects Quality Center BI Expertise Service desk Delivery center (India) (Portugal) Business Application Support (India) Operation
  • 26. Empowering a “think global, act local” business strategy with BI core model BI Core-Model ROI • Legrand Group has already deployed several core-model BI Domain Status Sales 11 units deployed Finance 25 units deployed Purchase 13 units deployed Marketing 5 units deployed Logistic Started in Q4 2010 First local unit currently in UAT phase 3 units will be deployed before summer Manufacturing Started in February this year. First roll- out expected by the end of this year • Average delay for the definition of a BI core-model and its first iteration is between 6 and 10 months
  • 27. Empowering a “think global, act local” business strategy with BI core model BI Core-Model ROI • One of the objectives of the BI Core-Model is to reduce cost of implementation • That means : – BI Data model is the same, regardless of the ERP underneath – Development used to extract data from ERP should be re-used. One set of development templates for each ERP (SAP, Mino , Mapics, etc.) – Development used to populate BI Solution is unique – Calculation rules to provide BI indicators are unique – Set of reports is unique and doesn’t need to be designed or adjusted again for each roll-out – Each new deployment is carried out at lowest possible cost – Simplified maintenance
  • 28. Empowering a “think global, act local” business strategy with BI core model BI Core-Model ROI • Comparison between BI core-model and classical BI solution Project Phase First iteration / Upgrade* Each new deployment Design Phase +30% None Build = None UAT = -60% Go-Live = -50% Training (Key-users) = -80% (Training session is ready) Training (Technical = None administrators) Transfer to maintenance team = None *Upgrade only takes into account core-model enhancement and never specific local unit request
  • 29. Empowering a “think global, act local” business strategy with BI core model Content • 1 - Introduction • 2 – BI core-Model : Strategy • 3 – BI core-model : Implementation and Deployment • 4 – Conclusion
  • 30. Empowering a “think global, act local” business strategy with BI core model Conclusion • Information Management and BI disciplines provide even more value in decentralized organizations – Local processes but global control and governance – Fast reconciliation (eg : post merger processes) • With BI core-model, Legrand Group has achieved its objectives : – Manage information globally – Preserve agility and autonomy at local level – Reduce IT costs • Main challenges are : – Organizational : mixed global and local teams from the business lines dealing with data reconciliation, quality and certification – Processes: well defined roll-out procedures – Technology: enterprise ready, but deployed to resource constrained organisations