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Business Reporting, Visual Analytics, and Business Performance Management.pdf

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Business Reporting, Visual Analytics, and Business Performance Management.pdf

  1. 1. BUSINESS REPORTING, VISUAL ANALYTICS, AND BUSINESS PERFORMANCE MANAGEMENT BUSINESS INTELLIGENCE FRANCIS JOHN D. TOLENTINO MS Information Technology
  2. 2. Learning Objectives Define business reporting and its historical evolution BUSINESS INTELLIGENCE Recognize the need for and the power of business reporting Understand the importance of data/ information visualization Learn different types of visualization techniques Appreciate the value that visual analytics brings to BI/BA Know the capabilities and limitations of dashboards Understand the nature of business performance management (BPM) Describe the basic elements of the balanced scorecard BUSINESS REPORTING, VISUAL ANALYTICS, AND BUSINESS PERFORMANCE MANAGEMENT
  3. 3. A business report is a written document that contains information regarding business matters. WHY IS BUSINESS REPORTING IMPORTANT? It is an essential part of the larger drive toward improved managerial decision making and organizational knowledge management WHAT IS A BUSINESS REPORT? BUSINESS REPORTING, VISUAL ANALYTICS, AND BUSINESS PERFORMANCE MANAGEMENT The Role of Information Reporting in The Role of Information Reporting in Managerial Decision Making Managerial Decision Making CLARITY BREVITY COMPLETENESS CORRECTNESS
  4. 4. OLTP (online transaction processing) COMPONENTS OF BUSINESS REPORTING SYSTEM BUSINESS REPORTING, VISUAL ANALYTICS, AND BUSINESS PERFORMANCE MANAGEMENT Data Supply ETL (extract, transform, and load) Data Storage Business Logic Publication Assurance BUSINESS REPORT CATEGORIES (HILL, 2013)
  5. 5. OLTP (online transaction processing) COMPONENTS OF BUSINESS REPORTING SYSTEM BUSINESS REPORTING, VISUAL ANALYTICS, AND BUSINESS PERFORMANCE MANAGEMENT Data Supply ETL (extract, transform, and load) Data Storage Business Logic Publication Assurance BUSINESS REPORT CATEGORIES (HILL, 2013)
  6. 6. BUSINESS INTELLIGENCE "the use of visual representations to explore, make sense of, and communicate data" -(Few, 2008) Data visualization is closely related to the fields of information graphics, information visualization, scientific visualization, and statistical graphics. Until recently, the forms of data visualization available in both business intelligence applications have included charts and graphs, as well as the other types of visual elements used to create scorecards and dashboards. DATA & INFORMATION VISUALIZATION
  7. 7. BUSINESS INTELLIGENCE
  8. 8. BUSINESS INTELLIGENCE
  9. 9. BUSINESS REPORTING, VISUAL ANALYTICS, AND BUSINESS PERFORMANCE MANAGEMENT BASIC CHARTS AND GRAPHS Line Chart Bar Chart Pie Chart Scatter Plot Bubble Chart SPECIALIZED CHARTS AND GRAPHS Histogram Gantt Chart PERT Chart Geographic Map Bullet Heat Map Highlight Table Tree Map
  10. 10. BUSINESS REPORTING, VISUAL ANALYTICS, AND BUSINESS PERFORMANCE MANAGEMENT BASIC CHARTS AND GRAPHS Line Chart Bar Chart Pie Chart Scatter Plot Bubble Chart SPECIALIZED CHARTS AND GRAPHS Histogram Gantt Chart PERT Chart Geographic Map Bullet Heat Map Highlight Table Tree Map
  11. 11. Bullet Graph
  12. 12. BUSINESS REPORTING, VISUAL ANALYTICS, AND BUSINESS PERFORMANCE MANAGEMENT BASIC CHARTS AND GRAPHS Line Chart Bar Chart Pie Chart Scatter Plot Bubble Chart SPECIALIZED CHARTS AND GRAPHS Histogram Gantt Chart PERT Chart Geographic Map Bullet Heat Map Highlight Table Tree Map
  13. 13. Heat Map
  14. 14. BUSINESS REPORTING, VISUAL ANALYTICS, AND BUSINESS PERFORMANCE MANAGEMENT BASIC CHARTS AND GRAPHS Line Chart Bar Chart Pie Chart Scatter Plot Bubble Chart SPECIALIZED CHARTS AND GRAPHS Histogram Gantt Chart PERT Chart Geographic Map Bullet Heat Map Highlight Table Tree Map
  15. 15. Highlight Table
  16. 16. BUSINESS REPORTING, VISUAL ANALYTICS, AND BUSINESS PERFORMANCE MANAGEMENT BASIC CHARTS AND GRAPHS Line Chart Bar Chart Pie Chart Scatter Plot Bubble Chart SPECIALIZED CHARTS AND GRAPHS Histogram Gantt Chart PERT Chart Geographic Map Bullet Heat Map Highlight Table Tree Map
  17. 17. Tree Map
  18. 18. BUSINESS INTELLIGENCE Visual analytics Visual analytics is a recently coined term that is often used is a recently coined term that is often used loosely to mean nothing more loosely to mean nothing more than information visualization. than information visualization. What is meant by visual analytics is the What is meant by visual analytics is the combination of combination of visualization and predictive analytics visualization and predictive analytics. . While information While information visualization is aimed at answering visualization is aimed at answering "what happened" and "what "what happened" and "what is happening" is happening" and is closely associated with business intelligence and is closely associated with business intelligence (routine reports, scorecards, and dashboards), visual analytics is (routine reports, scorecards, and dashboards), visual analytics is aimed at answering aimed at answering "why is it happening," "what is more likely to "why is it happening," "what is more likely to happen," happen," and is usually associated with business analytics and is usually associated with business analytics (forecasting, segmentation, correlation analysis). (forecasting, segmentation, correlation analysis). VISUAL ANALYTICS VISUAL ANALYTICS
  19. 19. BUSINESS INTELLIGENCE Monitoring Monitoring Analysis Analysis Management Management Dashboards Dashboards provide visual displays of important information that provide visual displays of important information that is consolidated and arranged on a single screen so that is consolidated and arranged on a single screen so that information can be digested at a single glance and easily drilled information can be digested at a single glance and easily drilled in and further explored. in and further explored. Three Layers of Information: Three Layers of Information: PERFORMANCE DASHBOARDS PERFORMANCE DASHBOARDS
  20. 20. BUSINESS INTELLIGENCE They use visual components They use visual components They are transparent to the user They are transparent to the user They combine data from a variety of systems They combine data from a variety of systems They enable drill-down or drill-through to underlying data sources or reports They enable drill-down or drill-through to underlying data sources or reports They present a dynamic, real-world view with timely data refreshes They present a dynamic, real-world view with timely data refreshes They require little, if any, customized coding to implement, deploy, and They require little, if any, customized coding to implement, deploy, and maintain. maintain. Characteristics (Novel, 2009) Characteristics (Novel, 2009) PERFORMANCE DASHBOARDS PERFORMANCE DASHBOARDS
  21. 21. BUSINESS INTELLIGENCE PERFORMANCE DASHBOARDS PERFORMANCE DASHBOARDS Benchmark Key Performance Indicators with Industry Standards Benchmark Key Performance Indicators with Industry Standards Wrap the Dashboard Metrics with Contextual Metadata Wrap the Dashboard Metrics with Contextual Metadata Validate the Dashboard Design by a Usability Specialist Validate the Dashboard Design by a Usability Specialist Prioritize and Rank Alerts/Exceptions Streamed to the Dashboard Prioritize and Rank Alerts/Exceptions Streamed to the Dashboard Enrich Dashboard with Business Users' Comments Enrich Dashboard with Business Users' Comments Present Information in Three Different Levels (Visual DB, Static Report, Self Present Information in Three Different Levels (Visual DB, Static Report, Self Service Cube) Service Cube) Pick the Right Visual Construct Using Dashboard Design Principles Pick the Right Visual Construct Using Dashboard Design Principles Provide for Guided Analytics Provide for Guided Analytics Best Practices in Dashboard Design (Radha, 2008) Best Practices in Dashboard Design (Radha, 2008)
  22. 22. BUSINESS INTELLIGENCE A set of integrated, closed-loop management and analytic A set of integrated, closed-loop management and analytic processes (supported by technology) that addresses financial as processes (supported by technology) that addresses financial as well as operational activities well as operational activities Tools for businesses to define strategic goals and then measure Tools for businesses to define strategic goals and then measure and manage performance against those goals and manage performance against those goals A core set of processes, including financial and operational A core set of processes, including financial and operational planning, consolidation and reporting, modeling, analysis, and planning, consolidation and reporting, modeling, analysis, and monitoring of key performance indicators (KPIs), linked to monitoring of key performance indicators (KPIs), linked to organizational strategy organizational strategy The term The term business performance management (BPM) business performance management (BPM) refers to the refers to the business processes, methodologies, metrics, and technologies used business processes, methodologies, metrics, and technologies used by enterprises to measure, monitor, and manage business by enterprises to measure, monitor, and manage business performance. performance. Components: (Colbert, 2009) Components: (Colbert, 2009) BUSINESS PERFORMANCE MANAGEMENT BUSINESS PERFORMANCE MANAGEMENT
  23. 23. BUSINESS INTELLIGENCE CLOSED-LOOP BPM CYCLE CLOSED-LOOP BPM CYCLE The loop implies that optimum The loop implies that optimum performance is achieved by setting performance is achieved by setting goals and objectives, monitoring actual goals and objectives, monitoring actual performance against the goals and performance against the goals and objectives, and taking corrective action . objectives, and taking corrective action . The continuous and repetitive nature of The continuous and repetitive nature of the cycle implies that the completion of the cycle implies that the completion of an iteration leads to a new and an iteration leads to a new and improved one. improved one.
  24. 24. BUSINESS INTELLIGENCE PERFORMANCE MANAGEMENT SYSTEMS PERFORMANCE MANAGEMENT SYSTEMS "Assist managers in tracking the implementations of business strategy by "Assist managers in tracking the implementations of business strategy by comparing actual results against strategic goals and objectives. A comparing actual results against strategic goals and objectives. A performance measurement system typically comprises systematic methods performance measurement system typically comprises systematic methods of setting business goals together with periodic feedback reports that of setting business goals together with periodic feedback reports that indicate progress against goals." indicate progress against goals." -Simons (2002) -Simons (2002)
  25. 25. BUSINESS INTELLIGENCE KEY PERFORMANCE INDICATOR (KPI) KEY PERFORMANCE INDICATOR (KPI) A KPI represents a strategic objective and measures performance A KPI represents a strategic objective and measures performance against a goal. (Eckerson, 2009) against a goal. (Eckerson, 2009) Strategy Strategy Targets Targets Ranges Ranges Encodings Encodings Time Frames Time Frames Benchmarks Benchmarks Features: Features: 1 1. . 2 2. . 3 3. . 4 4. . 5 5. . 6 6. . Outcome KPis Outcome KPis-sometimes known -sometimes known as as lagging indicators lagging indicators-measure the -measure the output of past activity (e.g., output of past activity (e.g., revenues). They are often financial revenues). They are often financial in nature, but not always. in nature, but not always. Driver KPis Driver KPis-sometimes known as -sometimes known as leading indicators leading indicators or value or value drivers-measure activities that drivers-measure activities that have a significant impact on have a significant impact on outcome KPis (e.g., sales leads). outcome KPis (e.g., sales leads). Customer performance Customer performance Service Performance Service Performance Sales Operations Sales Operations Sales plan/forecast Sales plan/forecast Operational Areas: Operational Areas: 1 1. . 2 2. . 3 3. . 4 4. .
  26. 26. BUSINESS INTELLIGENCE PERFORMANCE MEASUREMENT SYSTEMS PERFORMANCE MEASUREMENT SYSTEMS VS. VS. PERFORMANCE MANAGEMENT SYSTEMS PERFORMANCE MANAGEMENT SYSTEMS Any performance management system has a performance measurement system, Any performance management system has a performance measurement system, but not the other way around. but not the other way around.
  27. 27. BUSINESS INTELLIGENCE BALANCED SCORECARDS BALANCED SCORECARDS From a high-level viewpoint, the balanced scorecard (BSC) is both a performance From a high-level viewpoint, the balanced scorecard (BSC) is both a performance measurement and a management methodology that helps translate an measurement and a management methodology that helps translate an organization's financial, customer, internal process, and learning and growth organization's financial, customer, internal process, and learning and growth objectives and targets objectives and targets into a set of actionable initiatives into a set of actionable initiatives As a measurement methodology, BSC is designed to As a measurement methodology, BSC is designed to overcome the limitations of overcome the limitations of systems that are financially focused systems that are financially focused. It does this by translating an organization's . It does this by translating an organization's vision and strategy into a set of interrelated financial and nonfinancial objectives, vision and strategy into a set of interrelated financial and nonfinancial objectives, measures, targets, and initiatives measures, targets, and initiatives
  28. 28. BUSINESS INTELLIGENCE BALANCED SCORECARDS BALANCED SCORECARDS Customer Customer Internal Business Process Internal Business Process Learning and Growth Learning and Growth Financial and Nonfinancial Financial and Nonfinancial Leading and Lagging Leading and Lagging Internal and external Internal and external Quantitative and Qualitative Quantitative and Qualitative Short Term and Long Term Short Term and Long Term Non-financial Objectives: Non-financial Objectives: 1 1. . 2 2. . 3 3. . Indicators: Indicators: 1 1. . 2 2. . 3 3. . 4 4. . 5 5. .
  29. 29. BUSINESS INTELLIGENCE DASHBOARDS VS. SCORECARDS DASHBOARDS VS. SCORECARDS Executives, managers, and staff use scorecards to Executives, managers, and staff use scorecards to monitor monitor strategic alignment and success with strategic objectives and strategic alignment and success with strategic objectives and targets targets. As noted, the best-known example is the BSC. . As noted, the best-known example is the BSC. Dashboards Dashboards are used at the are used at the operational and tactical levels operational and tactical levels. . Managers, supervisors, and operators use operational dashboards Managers, supervisors, and operators use operational dashboards to to monitor detailed operational performance monitor detailed operational performance on a weekly, daily, on a weekly, daily, or even hourly basis or even hourly basis
  30. 30. BUSINESS INTELLIGENCE SIX SIGMA AS A PERFORMANCE SIX SIGMA AS A PERFORMANCE MEASUREMENT SYSTEM MEASUREMENT SYSTEM Six Sigma is a performance management methodology aimed at reducing Six Sigma is a performance management methodology aimed at reducing the number of defects in a business process to as close to zero defects per the number of defects in a business process to as close to zero defects per million opportunities (DPMO) as possible. million opportunities (DPMO) as possible. closed-loop business improvement model, and it encompasses the steps of closed-loop business improvement model, and it encompasses the steps of defining, measuring, analyzing, improving, and controlling a process. defining, measuring, analyzing, improving, and controlling a process. DMAIC Performance Improvement Model DMAIC Performance Improvement Model Define Define Measure Measure Analyze Analyze Improve Improve Control Control Steps: Steps: 1 1. . 2 2. . 3 3. . 4 4. . 5 5. . For new processes, the model that is used is called For new processes, the model that is used is called DMADV DMADV (define, measure, analyze, design, and verify). (define, measure, analyze, design, and verify).
  31. 31. BUSINESS INTELLIGENCE BALANCED SCORECARD VS. SIX SIGMA BALANCED SCORECARD VS. SIX SIGMA T The main difference is that BSC is he main difference is that BSC is focused on improving focused on improving overall strategy overall strategy, , whereas Six Sigma is focused on whereas Six Sigma is focused on improving improving processes processes. .
  32. 32. BUSINESS INTELLIGENCE EFFECTIVE PERFORMANCE MANAGEMENT EFFECTIVE PERFORMANCE MANAGEMENT Measures should focus on Measures should focus on key factors. key factors. Measures should be a Measures should be a mix of past, present, and future. mix of past, present, and future. Measures should Measures should balance the needs of shareholders, employees, balance the needs of shareholders, employees, partners, suppliers, and other stakeholders. partners, suppliers, and other stakeholders. Measures should Measures should start at the top and flow down to the bottom. start at the top and flow down to the bottom. Measures need to have Measures need to have targets targets that are that are based on research and reality based on research and reality rather than arbitrary. rather than arbitrary.
  33. 33. BUSINESS INTELLIGENCE BUSINESS REPORTING, VISUAL ANALYTICS, AND BUSINESS PERFORMANCE MANAGEMENT THANK YOU!

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