Business Intelligence and Mining Customer Data


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  • Financial information is an important source of information about a client’s performance – however, Limited by information captured in the general ledger – Providing a one dimensional view your client’s performance. Retrospective Does not provide the richness of detail Metrics Prospective analysis Business risk analysis Performance analysis
  • The real world is complex and multi dimensional with critical operational information coming from myriad sources. In order to harness this information to enhance your clients performance, we need a tool that brings these sources together. This will allow multi dimensional operational analysis both pre-planned and ad hoc. e.g., metrics, “what-if” analysis, predictive analysis. It will broaden the boundaries of business analysis But how is this accomplished?
  • We start with the same information sources. BI translates them into meaningful, multi-dimensional analysis providing depth and insight into the operational state of your client.
  • Business Intelligence and Mining Customer Data

    1. 1. Business Intelligence and Mining Customer Data Capitalizing On Your Customers Data
    2. 2. Agenda <ul><li>Introduction of Team Members </li></ul><ul><li>BI and OLAP – What does it mean and How are they related? </li></ul><ul><li>Value Proposition to the ITA community and your clients </li></ul><ul><li>Interface – Mining your own Client Relationships </li></ul><ul><li>BI3 – Using Business Intelligence with every day data </li></ul><ul><li>Questions and Answers </li></ul>
    3. 3. Objectives <ul><li>Understanding Business Intelligence Technologies </li></ul><ul><li>Value to ITA to Mine Clients and Clients Data </li></ul><ul><li>Increase Billable Dollars by Providing Analytical Analysis </li></ul><ul><li>Increase Profitability of Clients with Proactive Data Analysis </li></ul><ul><li>Increase Your Profitability by Mining your own Data and Relationships </li></ul><ul><li>A Tool to Provide Benchmarking Capabilities to Specific Industries </li></ul>
    4. 4. Speaker Introduction <ul><li>Jerry Grady </li></ul><ul><ul><li>Managing Director- Follmer Rudzewicz Advisors </li></ul></ul><ul><ul><ul><li>Managing Director - Centerprise Information Solutions, the technology group of Follmer Rudzewicz Advisors </li></ul></ul></ul><ul><ul><ul><li>CPA Background </li></ul></ul></ul><ul><ul><ul><ul><li>17 years managing an Accounting/Tax group </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Leader and Developer of the CIS group for Detroit </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Dual Degreed - AIS </li></ul></ul></ul></ul>
    5. 5. Speaker Introduction <ul><li>Warren Richman </li></ul><ul><ul><li>CEO – </li></ul></ul><ul><ul><li>20 years in IT field </li></ul></ul><ul><ul><li>Director and VAR Channel Leader </li></ul></ul><ul><ul><li>Developed Business and Strategy Plans for Start-up technology firms </li></ul></ul>
    6. 6. Speaker Introduction <ul><li>Alex Brunner </li></ul><ul><ul><li>Founding Partner and Past President </li></ul></ul><ul><ul><li>Developed worldwide Distribution channels for Kodak </li></ul></ul><ul><ul><li>Invented and developed the world's first add-on retrofit microfilm scanner </li></ul></ul><ul><ul><li>Holder of the prestigious 1996 AIIM (Association of Information and Image management) Pioneer Award </li></ul></ul>
    7. 7. Speaker Introduction <ul><li>Bill Pintsak </li></ul><ul><ul><li>Regional Sales Manager – Interface Software </li></ul></ul><ul><ul><li>8+ Years of experience in the Software Industry </li></ul></ul><ul><ul><li>5+ Years in the Professional Services Industry Rick Klau </li></ul></ul><ul><ul><li>President – Interface Software </li></ul></ul>
    8. 8. Why Consultants Lose Customers <ul><ul><li>Our Consultant just doesn't treat me right </li></ul></ul><ul><ul><li>Ignore thy customer </li></ul></ul><ul><ul><li>Fail to cooperate with the customer </li></ul></ul><ul><ul><li>Let the Owner/CEO contact lapse </li></ul></ul><ul><ul><li>Don’t keep the customer informed </li></ul></ul><ul><ul><li>Assume the Customer is a technicians </li></ul></ul><ul><ul><li>Use as training ground for new team </li></ul></ul>
    9. 9. Why Consultants Lose Customers, A Rockefeller Corporation Study <ul><ul><li>1% The customer dies </li></ul></ul><ul><ul><li>3% The customer moves away </li></ul></ul><ul><ul><li>5% The customer has a friend </li></ul></ul><ul><ul><li>9% The customer is lost to a competitor </li></ul></ul><ul><ul><li>14% The customer is dissatisfied with the service </li></ul></ul><ul><ul><li>68% The customer believes you don’t care about them </li></ul></ul>
    10. 10. Secure and Retain your Customers <ul><ul><li>Interpersonal Skills – You must have them </li></ul></ul><ul><ul><li>Ability to explain procedures and processes in terms your customer understands </li></ul></ul><ul><ul><li>Interest in the customer </li></ul></ul><ul><ul><li>Willingness to give advice </li></ul></ul><ul><ul><li>Demonstrate an outcome that the client achieves, you have transformed the business to value added and provided true value to the client. </li></ul></ul>
    11. 11. What OLAP Isn’t <ul><li>Not Another Ron Eagle Acronym </li></ul><ul><li>O bserving and L everaging A ccounting P rocess </li></ul><ul><li>O bjectively L everaging A ccount P ayables </li></ul><ul><li>O ne L ast Putt </li></ul>
    12. 12. OLAP Is : <ul><ul><li>On </li></ul></ul><ul><ul><li>Line </li></ul></ul><ul><ul><li>Analytical </li></ul></ul><ul><ul><li>Processing </li></ul></ul><ul><ul><li>Your gateway to Business Intelligence </li></ul></ul>
    13. 13. Advantages of Business Intelligence <ul><ul><li>Efficient access to Information, not just data </li></ul></ul><ul><ul><li>Turns management data previously reviewed in reports into “hands-on” slice & dice “cubes” </li></ul></ul><ul><ul><li>Allows the analyst to view the information the way they think and allows them to easily change their minds. </li></ul></ul><ul><ul><li>No more waiting for IT to build reports </li></ul></ul><ul><ul><li>Access to previously unused data </li></ul></ul><ul><ul><li>Capitalize on your Data to build Relationships </li></ul></ul>
    14. 14. Advantages of Business Intelligence <ul><ul><li>Understand what’s driving your business and provide analysis to why you may not be growing </li></ul></ul><ul><ul><li>“ Speed of Thought Analysis” in an O n L ine A nalytical P rocessing environment </li></ul></ul><ul><ul><li>Ability to deliver result oriented experiences to the client. </li></ul></ul><ul><ul><li>Ability to Increase your value and your billable hours/dollars to the Client </li></ul></ul><ul><ul><li>Ability to mine your entire contact database to increase the closing ratio – Utilize the relationships that exist in your organization </li></ul></ul>
    15. 15. Advantages of Business Intelligence <ul><ul><li>Trendsetter Companies Prove the Point </li></ul></ul><ul><ul><ul><li>Business Intelligence is Key to Their Success </li></ul></ul></ul><ul><ul><ul><li>73% Show Increase in Cash flow </li></ul></ul></ul><ul><ul><ul><li>73% Show Increase in Company Sales </li></ul></ul></ul><ul><ul><ul><li>71% Show Improved Accounts Receivable </li></ul></ul></ul><ul><ul><li>Great opportunity to help segment new business practice to your business </li></ul></ul><ul><ul><li>Capitalize on your current contact management system </li></ul></ul>
    16. 16. The Working Model <ul><ul><li>Data is extracted from your Clients’ databases on a scheduled basis and “Transform” it into Multi-Dimensional Information Cubes. </li></ul></ul><ul><ul><li>The Consultant and the client access cubes with a standard browser. </li></ul></ul><ul><ul><li>Your current Contact system notifies those with the relationship of your contact and increases your efficiencies </li></ul></ul><ul><ul><li>It’s painless and effortless to the client and your team. </li></ul></ul>
    17. 17. The Working Model – Benefits to Industry <ul><ul><li>Wholesale Distributors </li></ul></ul><ul><ul><ul><li>Inventory Turns </li></ul></ul></ul><ul><ul><ul><li>Sales Analysis per item </li></ul></ul></ul><ul><ul><ul><li>Sales Analysis per region </li></ul></ul></ul><ul><ul><ul><li>Receivables Turns </li></ul></ul></ul><ul><ul><ul><li>Receivables DSO </li></ul></ul></ul><ul><ul><li>Retail Environment </li></ul></ul><ul><ul><ul><li>Sales per Square Feet </li></ul></ul></ul><ul><ul><ul><li>Sales per labor Hours </li></ul></ul></ul><ul><ul><ul><li>Sales Mix Analysis </li></ul></ul></ul>
    18. 18. The Working Model – Benefits to Industry <ul><ul><li>Service Industry </li></ul></ul><ul><ul><ul><li>Labor Efficiency Reporting </li></ul></ul></ul><ul><ul><ul><li>Labor Utilization Reporting </li></ul></ul></ul><ul><ul><ul><li>Trend Analysis for Billable Hours </li></ul></ul></ul><ul><ul><ul><li>Labor Hours per Region/Service Area </li></ul></ul></ul><ul><ul><ul><li>Billings per Region/Manager/Leader </li></ul></ul></ul><ul><ul><ul><li>Billing analysis per Client/Service Code </li></ul></ul></ul>
    19. 19. The Working Model – Benefits to Industry <ul><ul><li>Manufacturing </li></ul></ul><ul><ul><ul><li>Machine Time Analysis </li></ul></ul></ul><ul><ul><ul><li>Overhead and Burden Analysis </li></ul></ul></ul><ul><ul><ul><li>Trend Analysis for Billable Hours </li></ul></ul></ul><ul><ul><ul><li>Labor Efficiency Reporting </li></ul></ul></ul><ul><ul><ul><li>Inventory Turns </li></ul></ul></ul><ul><ul><ul><li>WIP Analysis </li></ul></ul></ul>
    20. 20. The Working Model – Benefits to Industry <ul><ul><li>Think outside the Box in other Industries: </li></ul></ul><ul><ul><li>Healthcare </li></ul></ul><ul><ul><ul><ul><li>Doctors/Specialist </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Dentists </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Hospitals </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Urgent Care Facilities </li></ul></ul></ul></ul><ul><ul><ul><li>Bank / Financial Institutions </li></ul></ul></ul>
    21. 21. The Working Model – Not Just Accounting Data <ul><ul><li>Some of the highest ROI opportunities exist with data from other areas of the business: </li></ul></ul><ul><ul><ul><li>Sales </li></ul></ul></ul><ul><ul><ul><li>Marketing </li></ul></ul></ul><ul><ul><ul><li>Operations </li></ul></ul></ul><ul><ul><ul><li>Planning </li></ul></ul></ul><ul><ul><li>Building Business Intelligence solutions that address these areas provides at the clients fingertips the ability to analyze the lift of the last campaign, the results of T & E spending, or easily determine DSO trends. </li></ul></ul>
    22. 22. Value to ITA Members <ul><ul><li>Very affordable hosted OLAP Solution that allow even the smallest companies to take advantage of the power of OLAP once reserved for only the big boys </li></ul></ul><ul><ul><li>A true Business Intelligence tool, WEB enabled, all you need is your browser </li></ul></ul><ul><ul><li>Scaleable and Extendable as needs increase the ROI increase for you and your client </li></ul></ul><ul><ul><li>We all use a contact or Email server so extending its capabilities is easy </li></ul></ul>
    23. 23. Value to ITA Members <ul><li>Increase your engagement revenues and improve your profits by offering Business Intelligence to your clients </li></ul><ul><li>Low Risk, High Return </li></ul><ul><li>Leverage your Relationships throughout your organization, to increase your close ratios </li></ul><ul><li>Provide for additional consulting opportunities within customers by helping them understand and leverage the power of Business Intelligence </li></ul>
    24. 24. Take it from the experts As Gartner says…. “ Now is the time for all enterprises to raise Business Intelligence to the level of a strategic initiative.”
    25. 25. Mining Customer and Relationship Data Interface Software
    26. 26. Opportunity for Professional Services CRM Product Companies Service Companies <ul><li>Professional </li></ul><ul><li>Marketing Communication </li></ul>Client or Customer Interaction: Types of Companies: <ul><li>Web & E-mail </li></ul><ul><li>Sales Force </li></ul><ul><li>Call Center </li></ul><ul><li>Field Service </li></ul><ul><li>Channel Partners </li></ul><ul><li>Marketing Communications </li></ul>Business Development Process Unique & Opportunistic Structured & Repetitive
    27. 27. Common CRM Requirements <ul><li>Centralized and Shareable Repository of Customer/Client/Prospect Information </li></ul><ul><li>Capture and Track All Customer/Client/Prospect Interactions </li></ul><ul><li>“ 360 Degree” View of Customer/Client/Prospect </li></ul><ul><li>Applications that Leverage the Customer/Client/Prospect Knowledge Base </li></ul><ul><li>Tools to Mine and Distribute Data </li></ul><ul><li>Data Quality </li></ul>Customers or Client Company
    28. 28. Professional Services CRM Requirements <ul><li>“ Who Has a Relationship with this Prospective </li></ul><ul><li>Client?” </li></ul><ul><li>“ Who Else Do We Know at the Client’s Company?” </li></ul>Companies Professionals Professional Services Firm <ul><li>Professionals </li></ul><ul><li>Other Firm Employees </li></ul><ul><li>Management Consulting </li></ul><ul><li>Accounting </li></ul><ul><li>Investment Banking </li></ul><ul><li>Legal </li></ul><ul><li>Engineering/Architecture </li></ul><ul><li>Associations </li></ul>
    29. 29. Complex Relationships <ul><li>“ Who Knows Whom ™ ?” </li></ul><ul><li>“ Who Are Our Contacts in this Industry?” </li></ul><ul><li>“ Who Are the Client’s Professional Relationships ?” </li></ul>People Professionals <ul><li>Professionals </li></ul><ul><li>Other Firm Employees </li></ul><ul><li>Clients </li></ul><ul><li>Former Clients </li></ul><ul><li>Prospects </li></ul><ul><li>Competitors </li></ul><ul><li>Professional Services </li></ul><ul><ul><li>Law Firms </li></ul></ul><ul><ul><li>Accounting Firms </li></ul></ul><ul><ul><li>Venture Firms </li></ul></ul><ul><ul><li>Etc. </li></ul></ul><ul><li>Vendors </li></ul>Companies Professional Services Firm <ul><li>Management Consulting </li></ul><ul><li>Accounting </li></ul><ul><li>Investment Banking </li></ul><ul><li>Legal </li></ul><ul><li>Engineering/Architecture </li></ul><ul><li>Associations </li></ul><ul><li>Clients </li></ul><ul><li>Prospects </li></ul><ul><li>Alumni </li></ul><ul><li>Referral Sources </li></ul><ul><li>Experts </li></ul>
    30. 30. Relationship Intelligence Data Model <ul><li>“ Have We Ever Done This Type of Deal Before?” </li></ul><ul><li>“ Who Were the Key Players in That Engagement?” </li></ul><ul><li>“ What Transactions Did We Perform for This Client Last Year?” </li></ul>People Professional Services Firm Professionals Projects <ul><li>Deals </li></ul><ul><li>Transactions </li></ul><ul><li>Engagements </li></ul><ul><li>Matters </li></ul><ul><li>Projects </li></ul><ul><li>Management Consulting </li></ul><ul><li>Accounting </li></ul><ul><li>Investment Banking </li></ul><ul><li>Legal </li></ul><ul><li>Other PSO’s </li></ul><ul><li>Clients </li></ul><ul><li>Former Clients </li></ul><ul><li>Competitors </li></ul><ul><li>Professional Services </li></ul><ul><ul><li>Law Firms </li></ul></ul><ul><ul><li>Accounting Firms </li></ul></ul><ul><ul><li>Venture Firms </li></ul></ul><ul><ul><li>Etc. </li></ul></ul><ul><li>Vendors </li></ul><ul><li>Clients </li></ul><ul><li>Prospects </li></ul><ul><li>Alumni </li></ul><ul><li>Referral Sources </li></ul><ul><li>Experts </li></ul>Companies
    31. 31. Relationship Intelligence <ul><li>A Firm-wide Asset That Reveals the Unique and Complex Connections Between People, Companies, Relationships, Experience and Expertise </li></ul><ul><li>Key CRM-enabling Technology for Professional Services Organizations </li></ul><ul><li>Critical Component to Any Knowledge Management Strategy </li></ul>Relationship Intelligence Personal Knowledge Organizational Knowledge External Knowledge
    32. 32. Four Processes Comprising Relationship Intelligence System <ul><li>Relationship Discovery </li></ul><ul><li>Relationship Management </li></ul><ul><li>Client Services Automation </li></ul><ul><li>Knowledge Delivery </li></ul>To Aggregate, Manage & Deliver Relationship Intelligence Content:
    33. 33. Relationship Discovery <ul><li>PDAs </li></ul><ul><li>Outlook / Notes </li></ul><ul><li>Personal Experience </li></ul>Professional Enterprise External <ul><li>Accounting </li></ul><ul><li>Human Resources </li></ul><ul><li>Legacy </li></ul><ul><li>Other </li></ul><ul><li>Content Providers </li></ul><ul><li>External Sources </li></ul><ul><li>Automated Processes for Discovering Content and Relationships in Existing Systems </li></ul><ul><ul><li>Delivers Access to Previously Unattainable Information & Expertise </li></ul></ul><ul><ul><li>Reuses Captured Data and Transforms it into Relationship Intelligence </li></ul></ul>
    34. 34. Relationship Management <ul><li>Delivers Single Instance of a Contact </li></ul><ul><li>Aggregates Enterprise Data and Provides Context </li></ul><ul><li>Applies Business Rules </li></ul><ul><ul><li>Provide Security </li></ul></ul><ul><ul><li>Processes </li></ul></ul><ul><ul><li>Information Changes </li></ul></ul>Josh Smith Joshua Smith J.L. Smith Multiple Sources… Joshua L. Smith <ul><li>Cleansing </li></ul><ul><li>Association </li></ul><ul><li>Duplicate Merge </li></ul>
    35. 35. Client Services Automation Referral Tracking Client/Prospect Profiling RFP Responses Event Management Queries, Data Mining, Reporting Follow Through Mailing Lists <ul><li>Unique Functionality for High Value Low Volume Business Development </li></ul><ul><li>Rich Tools for Relationship-Based Marketing Automation </li></ul>List Management
    36. 36. Knowledge Delivery <ul><li>Delivers Critical Relationship Intelligence Content to Firm’s Knowledge Management Platform of Choice </li></ul><ul><li>Designed to Complement a Firm’s Portal, Intranet and Extranet Strategies </li></ul>InterAction Web Client Portals, Intranets and Extranets Internally Developed Applications PDA Devices Microsoft Outlook or Lotus Notes Reports
    37. 37. Key Challenges <ul><li>Firm Culture </li></ul><ul><ul><li>How does the firm compensate professionals for business generation? </li></ul></ul><ul><ul><li>How does the firm measure/track client-related expenses? </li></ul></ul><ul><ul><li>How does the firm track business development efforts? </li></ul></ul><ul><li>Management Commitment </li></ul><ul><ul><li>Has Senior Management communicated commitment to the rest of the firm? </li></ul></ul><ul><li>Processes </li></ul><ul><ul><li>Has the firm built processes that ensure professional participation and deliver value? </li></ul></ul>
    38. 38. Interface <ul><li>A real live Relationship Demonstration </li></ul>
    39. 39. Business Intelligence – OLAP’ing the Data
    40. 40. The World According to GAAP Accounting Based Reporting Financial Accounting Information General Ledger Copyright: Resource Management Systems, Inc.©2002. Use by permission only .
    41. 41. Operational Reporting Financial Records Compliance POS CRM Manufacturing The Client Business Operations Economic Data Credit/ Risk Copyright: Resource Management Systems, Inc.©2002. Use by permission only
    42. 42. The World According to Business Intelligence Brand sales by zip code by store A/R aging by store by zip code Customer returns by product by plant by defect Business Intelligence From Bi3 ® Copyright: Resource Management Systems, Inc.©2002. Use by permission only CRM Compliance POS Financial Records Manufacturing Economic Data Credit/ Risk Data Transformation Operational Analysis
    43. 43. BI for Everyone <ul><li>“ Traditional BI is too expensive!” </li></ul><ul><li>Cost limits acceptance by medium and small businesses and corporate business units. </li></ul><ul><li>The ASP model overcomes the cost constraint without sacrificing functionality. </li></ul><ul><li>Bi3 is the premier BI ASP </li></ul>
    44. 44. Conventional BI Solutions Global 2000 Market $5+ Billion ASP HOSTED SOLUTION SME Market $25 + Billion $25,000-250,000 1-6 Months $25,000-150,000 1-3 Months $25,000-100,000 1-3 Months $50,000-500,000 1-3 Months $75,000-300,000 $50,000-250,000 $275,000-1,550,000 First Year $50,000-250,000 /Year Implementing Business Intelligence Conventional vs. Legacy Interface “ ETL” Hardware Purchase Installation and Training On-Going Maintenance Support Fees and Personnel Software Purchase & Customization TOTALS Application Development Study and Analysis Pre-Defined “On the Shelf” Custom - $5,000-25,000 N/A Pre-Defined Output Fixed Fee - $5,000-25,000 $10,000-25,000 1-4 Weeks N/A 1 Day Training $1500-2500 ASP Subscription Fees $3,000-25,000 / Year $29,500-100,000 First Year $3,000-$25,000 / Year
    45. 45. Demo
    46. 46. BI from Bi3 Summary <ul><li>BI from Bi3 saves considerable monies both in business process analysis and report creation. </li></ul><ul><li>BI from Bi3 over the web is an ideal consulting tool. </li></ul><ul><li>BI from Bi3 does not require a large upfront investment – the perfect antidote for the current market malaise! </li></ul><ul><li>BI from Bi3 is good for YOUR client’s business! </li></ul>
    47. 47. Questions and Answers
    48. 48. Contact Information Jerry Grady – Follmer Rudzewicz Advisors, Inc. [email_address] Warren Richman – [email_address] Bill Pintsak– Interface Software Pintsak, [email_address] .com]
    49. 49. Thank You!