Enterprise-wide Information Logistics –  A Different Managerial View on Data, Information and Synergies  Prof. Dr. Robert ...
Enterprise-wide Information Logistics ©  06/06/09  IWI-HSG, Robert Winter Slide  What is “information logistics”? Why anot...
Enterprise-wide Information Logistics The role of quality for information logistics management  3 What's in it for me?  4 ...
Information Logistics: Planning, Implementation and Control of Cross-unit Data Flows Data flows relevant for  information ...
IL Characteristics <ul><li>Only cross-unit data flows are considered: </li></ul><ul><ul><li>Data flows between jobs in a d...
The Value Proposition of Information Logistics “ Supply the  right information  with  appropriate quality  (e.g. timelines...
Information Logistics  vs. Existing Concepts ©  06/06/09  IWI-HSG, Robert Winter Slide  Local &  Cross-unit &  Short Term ...
Why Yet Another Term? <ul><li>Data warehousing : focus on certain integration technology </li></ul><ul><li>Business intell...
IL Focuses on Synergy Exploitation <ul><li>“ The whole is more than the sum of its parts” </li></ul><ul><li>By planning, i...
Enterprise-wide Information Logistics What is “information logistics”? Why another term? 1 The role of quality for informa...
Business   and  Technology   Focus Alternates <ul><li>Technology   Innovation </li></ul><ul><ul><li>e.g. SAP R/2, SAS, EAI...
IL Development: Project by Project vs. IL Operations: Integrated Project 1 Project 2 Project 3 Project n IL Operations ©  ...
Managerial Challenges After 20 Years of DWH/BI Research <ul><li>Operations organization </li></ul><ul><ul><li>IL product /...
IL Operations Mgt Building Blocks IL Goals IL Products IL Reference Processes IL Service Models IL Costs and Pricing IL Re...
The IL Value Proposition is the Basis for Its Organizational Setup “ Supply the  right information  with  appropriate qual...
IL Products [Klesse / Herrmann 2004]  adapted from [Zarnekow, Brenner 2003] Poor Business Orientation Good Low Complexity ...
IL Reference Processes ©  06/06/09  IWI-HSG, Robert Winter Slide  adapted from [Klesse / Winter 2007]  Use IL Conducting s...
IL Service Models ©  06/06/09  IWI-HSG, Robert Winter Slide  adapted from [Klesse / Winter 2007]  Full Service Provider 50...
Enterprise-wide Information Logistics What is “information logistics”? Why another term? 1 What's in it for me?  4 After 2...
Once again: IL Goals “ Supply the  right information  with  appropriate quality  (e.g. timeliness, correctness) to cover  ...
IS Quality in General User Easy to Use Adequancy Easy to Learn (User) Documentation Robustness Efficiency Easy to Integrat...
Data Accuracy in Particular Source: Jack E. Olson,  Data Quality  The Accuracy Dimension ©  06.06.09  IWI-HSG, Robert Wint...
Problems due to Poor Data Quality ©  06.06.09  IWI-HSG, Robert Winter Slide
Data Quality Measures <ul><ul><li>Laissez faire </li></ul></ul><ul><ul><li>Corrective measures </li></ul></ul><ul><ul><li>...
Framework „Corporate Data Quality“ Source: CC CDQ, Univ. of St. Gallen,  http://cdqm.org ©  06.06.09  IWI-HSG, Robert Wint...
The Data Quality Management Challenge: There are Always Trade-offs to Consider… Quality Speed Output (volume, capacity, se...
The Contribution of Data Quality  to Information Logistics  <ul><li>Actual events prove that it becomes ever more, not les...
Enterprise-wide Information Logistics What is “information logistics”? Why another term? 1 The role of quality for informa...
„ The Whole is more than the Sum of its Parts“ Infrastructure View Business Unit B Business Unit A Transformation Project ...
Where are the Synergies? (And who is in Charge?) <ul><li>Industrialization requires that large amounts of similar activiti...
Informations Logistics: What‘s in it for me? <ul><li>For  business units </li></ul><ul><ul><li>Industrialization allows to...
The Road Ahead <ul><li>Actual developments prove that  more, faster and better decisions  are needed. Industrialization an...
Q&A… ©  06.06.09  IWI-HSG, Robert Winter Slide  Prof. Dr. Robert Winter [email_address] www.iwi.unisg.ch +41 71 224 2190
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  • Robert Winter - Enterprise Wide Information Logistics - Data Quality Summit 2008

    1. 1. Enterprise-wide Information Logistics – A Different Managerial View on Data, Information and Synergies Prof. Dr. Robert Winter Institute of Information Management University of St. Gallen [email_address] www.iwi.unisg.ch
    2. 2. Enterprise-wide Information Logistics © 06/06/09 IWI-HSG, Robert Winter Slide What is “information logistics”? Why another term? 1 The role of quality for information logistics management 3 What's in it for me? 4 After 20 years of research in data warehousing and business intelligence, what are the biggest managerial challenges? 2
    3. 3. Enterprise-wide Information Logistics The role of quality for information logistics management 3 What's in it for me? 4 After 20 years of research in data warehousing and business intelligence, what are the biggest managerial challenges? 2 © 06/06/09 IWI-HSG, Robert Winter Slide What is “information logistics”? Why another term? 1
    4. 4. Information Logistics: Planning, Implementation and Control of Cross-unit Data Flows Data flows relevant for information logistics © 06/06/09 IWI-HSG, Robert Winter Slide adapted from [Dinter / Winter 2008] Business Unit A Business Unit B Company A Company B Department A Depart- ment B Job A Job B
    5. 5. IL Characteristics <ul><li>Only cross-unit data flows are considered: </li></ul><ul><ul><li>Data flows between jobs in a department </li></ul></ul><ul><ul><li>Data flows between departments in a business unit </li></ul></ul><ul><ul><li>Data flows between business units in a company or legal unit </li></ul></ul><ul><ul><li>Data flows between companies in a value network or between legal unit in a corporation </li></ul></ul><ul><ul><li>NON-LOCAL </li></ul></ul><ul><li>Focus on ANALYTICAL data use (= information supply) </li></ul><ul><li>Only managerial issues are considered: </li></ul><ul><ul><li>Engineering management (requirements, design, financials) </li></ul></ul><ul><ul><li>Operations management (responsibilities, organization) </li></ul></ul><ul><ul><li>NON-TECHNICAL </li></ul></ul>© 06/06/09 IWI-HSG, Robert Winter Slide Business Unit A Business Unit B Company A Company B Department A Depart- ment B Job A Job B
    6. 6. The Value Proposition of Information Logistics “ Supply the right information with appropriate quality (e.g. timeliness, correctness) to cover all relevant information demand which are based on data originating from other units” Customer orientation Quality orientation Business orientation © 06/06/09 IWI-HSG, Robert Winter Slide
    7. 7. Information Logistics vs. Existing Concepts © 06/06/09 IWI-HSG, Robert Winter Slide Local & Cross-unit & Short Term Long Term Perspective Perspective Managerial Focus Technical Focus Information Logistics Data Warehousing Business Intelligence
    8. 8. Why Yet Another Term? <ul><li>Data warehousing : focus on certain integration technology </li></ul><ul><li>Business intelligence : focus on ‘local’ utilization process </li></ul><ul><li>MSS/DSS, MIS, EIS : specific types of users or types of analyses </li></ul><ul><li>For corporate information management, we need an additional perspective which </li></ul><ul><ul><li>is focusing on cross-unit synergies </li></ul></ul><ul><ul><li>is open for all suitable technology / integration approaches </li></ul></ul><ul><ul><li>is focusing on sustained operations rather than on development only </li></ul></ul><ul><li>and which </li></ul><ul><ul><li>is not focused on operational data integration alone </li></ul></ul><ul><ul><li>is not focused on “internal” (e.g. workplace) data integration </li></ul></ul>© 06/06/09 IWI-HSG, Robert Winter Slide
    9. 9. IL Focuses on Synergy Exploitation <ul><li>“ The whole is more than the sum of its parts” </li></ul><ul><li>By planning, implementing and controlling data flows across units (and storing / provisioning such data), more value can be generated than by using such data only locally </li></ul><ul><li>Examples </li></ul><ul><ul><li>Using claims data for policy pricing (synergies across departments of same business unit) </li></ul></ul><ul><ul><li>Using sales data of banking unit for cross-selling by insurance unit (synergies across business units of same company) </li></ul></ul><ul><ul><li>Using airline status data for offerings by hotel or rental car company (synergies across companies) </li></ul></ul>© 06/06/09 IWI-HSG, Robert Winter Slide
    10. 10. Enterprise-wide Information Logistics What is “information logistics”? Why another term? 1 The role of quality for information logistics management 3 What's in it for me? 4 After 20 years of research in data warehousing and business intelligence, what are the biggest managerial challenges? 2 © 06/06/09 IWI-HSG, Robert Winter Slide
    11. 11. Business and Technology Focus Alternates <ul><li>Technology Innovation </li></ul><ul><ul><li>e.g. SAP R/2, SAS, EAI tools, SAP byDesign </li></ul></ul><ul><ul><li>Initially isolated, often end-to-end solutions </li></ul></ul><ul><li>Business Digestion from a Project Perspective </li></ul><ul><ul><li>Business case for innovation projects </li></ul></ul><ul><ul><li>Do‘s and dont‘s for innovation projects </li></ul></ul><ul><li>Technology Integration </li></ul><ul><ul><li>e.g. meta data, master data </li></ul></ul><ul><ul><li>Integration from a technical perspective: standards and interfaces </li></ul></ul><ul><li>Business Digestion from a Operations Perspective </li></ul><ul><ul><li>Integration from a business perspective: architecture, guidelines </li></ul></ul><ul><ul><li>Economics of (sustained) operations : service definition, pricing mechanisms </li></ul></ul><ul><ul><li>From (temporary) project organization towards (permanent) process organization </li></ul></ul><ul><ul><li>Best practices, reference models </li></ul></ul><ul><ul><li>Finally standardization, development of benchmarks, consolidation / increased efficiency </li></ul></ul>© 06/06/09 IWI-HSG, Robert Winter Slide From Innovation to Integration Management From Project/Dev to Process/Ops Management
    12. 12. IL Development: Project by Project vs. IL Operations: Integrated Project 1 Project 2 Project 3 Project n IL Operations © 06/06/09 IWI-HSG, Robert Winter Slide
    13. 13. Managerial Challenges After 20 Years of DWH/BI Research <ul><li>Operations organization </li></ul><ul><ul><li>IL product / service (reference) catalogues </li></ul></ul><ul><ul><li>IL operations (reference) models </li></ul></ul><ul><li>Operations financials </li></ul><ul><ul><li>IL business value calculation and investment models </li></ul></ul><ul><ul><li>IL pricing models </li></ul></ul><ul><li>Strategy & marketing </li></ul><ul><ul><li>IL strategy process </li></ul></ul><ul><ul><li>IL marketing and business value communication </li></ul></ul><ul><li>No method / reference model fits all! We need application scenarios as a foundation for </li></ul><ul><ul><li>situational method adaption and </li></ul></ul><ul><ul><li>situational reference solution adaption </li></ul></ul>© 06/06/09 IWI-HSG, Robert Winter Slide
    14. 14. IL Operations Mgt Building Blocks IL Goals IL Products IL Reference Processes IL Service Models IL Costs and Pricing IL Reference Architectures © 06/06/09 IWI-HSG, Robert Winter Slide
    15. 15. The IL Value Proposition is the Basis for Its Organizational Setup “ Supply the right information with appropriate quality (e.g. timeliness, correctness) to cover all relevant information demand which are based on data originating from other units” Requirements management Information quality mgt Service management © 06/06/09 IWI-HSG, Robert Winter Slide
    16. 16. IL Products [Klesse / Herrmann 2004] adapted from [Zarnekow, Brenner 2003] Poor Business Orientation Good Low Complexity for service provider High High Complexity for service consumer (Business) Low © 06/06/09 IWI-HSG, Robert Winter Slide Level 1 IL Product = IT Resource E.g.: 1 MIPS 1 DB-Server 1 GB for 1 month 1 Person day Level 2 IL Product = IT Solution E.g.: Development,opera- tions and support of a data mart application for campaign mgt Level 3 IL Product = IT Process Support E.g.: Direct support of campaign planning or campaign execution (generation of leads, priced per lead)
    17. 17. IL Reference Processes © 06/06/09 IWI-HSG, Robert Winter Slide adapted from [Klesse / Winter 2007] Use IL Conducting standard reporting Conducting special analyses Conducting information-intensive business processes IL Applications IL Integration Infrastructure IL Platform (Hardware, DBMS, etc.) Change IL Development of IL Applications Development of IL Integration Infrastructure Development/ configuration of IL Platform Run IL Operations of IL Applications Operations of IL Integration Infrastructure Operations of IL Platform Legend: Component Process Component-specific process Support of IL Applications Support of IL Integration Infrastructure Support of IL Platform
    18. 18. IL Service Models © 06/06/09 IWI-HSG, Robert Winter Slide adapted from [Klesse / Winter 2007] Full Service Provider 50% 60% 70% Business Service Provider IL Utilization IL Information System IL Platform 60% 40% 20% IL Competence Center 30% 40% 30% IL Platform Provider 30% 50% 60% Vertical Integration of IL Business Integration of Service Provider IL Utilization IL Information System IL Platform IL Utilization IL Information System IL Platform IL Utilization IL Information System IL Platform
    19. 19. Enterprise-wide Information Logistics What is “information logistics”? Why another term? 1 What's in it for me? 4 After 20 years of research in data warehousing and business intelligence, what are the biggest managerial challenges? 2 © 06/06/09 IWI-HSG, Robert Winter Slide The role of quality for information logistics management 3
    20. 20. Once again: IL Goals “ Supply the right information with appropriate quality (e.g. timeliness, correctness) to cover all relevant information demand which are based on data originating from other units” Requirements management Information quality mgt Service management © 06.06.09 IWI-HSG, Robert Winter Slide
    21. 21. IS Quality in General User Easy to Use Adequancy Easy to Learn (User) Documentation Robustness Efficiency Easy to Integrate Reliability Correctness Availability (Developer) Documentation Portability Easy to Maintain Easy to Reuse Corporate Sponsor Software Developer © 06.06.09 IWI-HSG, Robert Winter Slide
    22. 22. Data Accuracy in Particular Source: Jack E. Olson, Data Quality The Accuracy Dimension © 06.06.09 IWI-HSG, Robert Winter Slide Valid data Invalid data Missing data Correct data Incorrect data Correct representation 12052005  Dec?May? Incorrect Representation 05122005  Dec?May? Accurate Data Inaccurate data
    23. 23. Problems due to Poor Data Quality © 06.06.09 IWI-HSG, Robert Winter Slide
    24. 24. Data Quality Measures <ul><ul><li>Laissez faire </li></ul></ul><ul><ul><li>Corrective measures </li></ul></ul><ul><ul><li>Correctness testing </li></ul></ul><ul><ul><li>Reference data (comparison of different data sources) </li></ul></ul><ul><ul><li>Business rules (internal routines) </li></ul></ul><ul><ul><li>Pre-emptive measures </li></ul></ul><ul><ul><li>Process control and evolution </li></ul></ul><ul><ul><li>Process design </li></ul></ul>Source: de Fries, Seidl, Windheuser 1999 © 06.06.09 IWI-HSG, Robert Winter Slide “ Laissez faire” Data Importance Data Stability High Low High Low Data Cleansing (corrective measures) Pro-active data quality management (pre-emptive measures)
    25. 25. Framework „Corporate Data Quality“ Source: CC CDQ, Univ. of St. Gallen, http://cdqm.org © 06.06.09 IWI-HSG, Robert Winter Slide Strategy (“what?”) CDQ Strategy Organization (“how?”) Coordination and Control CDQ Orga&Governance CDQ Processes and Methods IS (“by what means?”) CDQ Software Systems Information Architecture for CDQ local global
    26. 26. The Data Quality Management Challenge: There are Always Trade-offs to Consider… Quality Speed Output (volume, capacity, service) Costs Assumption: Development capabilties are a constant © 06.06.09 IWI-HSG, Robert Winter Slide + - + - - + - +
    27. 27. The Contribution of Data Quality to Information Logistics <ul><li>Actual events prove that it becomes ever more, not less important to supply the right information with appropriate quality to cover information demands by (human and machine) decision makers. </li></ul><ul><li>Inadequate quality is as much a problem as lateness, bad service levels or excessive costs. </li></ul><ul><li>Cost management and output management may be less disputed than quality (and speed) management because they are more “technical” (i. e. can be approached by IT alone). </li></ul><ul><li>Quality (and speed) management need an integrated business-to-IT approach . “What”, “how” and “by what means” questions need to be approached holistically and systematically by business and IT together . </li></ul>© 06.06.09 IWI-HSG, Robert Winter Slide
    28. 28. Enterprise-wide Information Logistics What is “information logistics”? Why another term? 1 The role of quality for information logistics management 3 After 20 years of research in data warehousing and business intelligence, what are the biggest managerial challenges? 2 © 06/06/09 IWI-HSG, Robert Winter Slide What's in it from the user perspective? 4
    29. 29. „ The Whole is more than the Sum of its Parts“ Infrastructure View Business Unit B Business Unit A Transformation Project Portfolio © 06.06.09 IWI-HSG, Robert Winter Slide
    30. 30. Where are the Synergies? (And who is in Charge?) <ul><li>Industrialization requires that large amounts of similar activities are pooled. Since products, markets and processes become ever more differentiated (and such business units), industrialization can only be driven by the corporate center. </li></ul><ul><li>Many data do not originate at the same place where they create business value. In order to identify and exploit data integration potentials, information logistics can only be driven by the corporate center. </li></ul>Automation and specialization Standar- dization Centralization © 06.06.09 IWI-HSG, Robert Winter Slide
    31. 31. Informations Logistics: What‘s in it for me? <ul><li>For business units </li></ul><ul><ul><li>Industrialization allows to use professional, cost efficient services </li></ul></ul><ul><ul><li>Utilization or integration of “foreign” information enables new decision support (and maybe business innovation) potentials </li></ul></ul><ul><li>For shared service units </li></ul><ul><ul><li>The more business units are provided with data, the more efficient information logistics can be implemented </li></ul></ul><ul><li>For the corporation as a whole </li></ul><ul><ul><li>The whole is worth more than the sum of its parts only if synergies are looked for, and exploited </li></ul></ul><ul><ul><li>Certain business solutions (e. g. one stop customer experience) can only be implemented if partial information is integrated </li></ul></ul>© 06.06.09 IWI-HSG, Robert Winter Slide
    32. 32. The Road Ahead <ul><li>Actual developments prove that more, faster and better decisions are needed. Industrialization and e-everything lead to more data and more fragmentation . </li></ul><ul><li>The gap widens between </li></ul><ul><ul><li>demand for timely supply of more, higher quality data and </li></ul></ul><ul><ul><li>availability of more, more fragmented, often inconsistent data </li></ul></ul><ul><li>While enterprise-wide technical approaches (DWH) and local business approaches (BI) have matured, information logistics needs to be established as an enterprise-wide, business oriented approach to information management . </li></ul><ul><li>Quality issues have high impact on overall information mgt performance. IL quality mgt (like speed mgt) is (at least) as important as output mgt and cost mgt. </li></ul>© 06/06/09 IWI-HSG, Robert Winter Slide
    33. 33. Q&A… © 06.06.09 IWI-HSG, Robert Winter Slide Prof. Dr. Robert Winter [email_address] www.iwi.unisg.ch +41 71 224 2190

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