Annual Meeting del FORUM ICT                     LEAN IT          Approccio e Roadmap per la      razionalizzazione dei si...
AgendaExecutive Summary: contesto e mandatoDHL Express: profilo azienda e profilo ITIl Progetto “Lean BI”: approccio, road...
Executive Summary: il contesto [1/2]  Tutte le attività e risorse ICT necessarie per lo sviluppo e la manutenzione, insiem...
Executive Summary: il contesto [2/2]   ICT staff - Corporate e Regional (EU, AM, APEM) - recentemente ridotti a pocheunità...
Executive summary: Obiettivi del Progetto      BI & EDW Roadmap: keep it simple, keep it lean!  Semplificare e razionalizz...
DHL e il gruppo Deutsche Post DHLDHL is Part of the Worlds Leading Logistics Group, Deutsche Post DHL  It offers integrate...
DHL Express: StrutturaHead Office:                  Bonn, GermanyRevenue:                      Approx. 11.8 billion euros ...
DHL express: Struttura BI & DWH Corporate     Sviluppo stratificato e non organico di soluzioni dipartimentali: Siloed Dat...
Piattaforma DWH/BI - Prague                                              Many applications copy data from                 ...
Global BI Ecosystem• Solid foundation  > DWH pillars by Business Process: Commercial, Finance, Operations  > TD best of br...
Why BI Roadmap for DHL Express?Optimization of Run Costs by                                                        Get mor...
High Level estimate for Lean IT impact                                                                                    ...
General BI Roadmap methodology          Phases          Stream 1:                                                         ...
Two Major Cost Drivers     As-Is             Cost Driver #1                                                       Cost Dri...
Run Costs fragmentation      BI Run Costs by Scope                                          BI Run Costs by Process2009 BS...
As-is findings         Cost savings from immediate actions: Shut down, decommissioning, soft      migration and other acti...
Cost Driver #1: actions   Further Investigations                                                                      Acti...
Two Major Cost Drivers     As-Is             Cost Driver #1                                                       Cost Dri...
Resources Costs: savings opportunitiesCurrent BI Processes                         Process Potential                      ...
Time Savings potential                              Current        Future         BenefitsBI Setup                        ...
La scelta metodologica: lean ITIdentificazione e rimozione di inefficienze e ridondanze con impatto su:         customer s...
Business Case dimensions            BI Run Costs reduction            •   Global: from xx M€/Y to y M€/Y            •   Re...
Business Case: Run Costs dimension            Global: total run costs xxM€/Y            •   Items sunset in the last 12 mo...
Vision for EDW             To Be                                                       Major topics to address            ...
Governance Framework: vista organizzativa                            Entities                                             ...
Focus : BICC            Structure                                                    BICC Fundamentals                    ...
Agnostic Approach to BI Framework3x3 Guidelines matrix: 3 BI metrics, 3 BI perspectives (SDG adapt-case©):                ...
BI / CPM Framework          End-to-end BI: from data to dashboard (SDG adapt-case©):                                      ...
BI Technical FrameworkComposite Framework – incremental best-of-breed adoption (SDG adapt-case©):                         ...
Recommendations                               Evaluation of Results: DHL                                                  ...
Business Case summary              Benefits without EDW                                             Business Case: Benefit...
EDW Roadmap: starting point                                                                       Many BI applications    ...
Function-driven approach                      Business Functions                                                          ...
New approach: BI functionality driven BI                          C                                                       ...
EDW Roadmap in context         C                                                                                          ...
Change of mindset is required• Split applications into smaller building blocks; reduce build  complexity by focusing on cr...
BICC as enabler for BI simplificationThe BICC is the x-functional body that governs and manages the transition from today’...
Take Aways … by Lean IT approach Waste Element                           Issues                                   Negative...
luca.quagini@sdggroup.com                                               matteo.rossetti@sdggroup.comCopyright © 2012 SDG g...
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Approccio e Roadmap per la razionalizzazione dei sistemi analitici Corporate: il caso DHL Express

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Intervento di Luca Quagini e Matteo Rossetti all'Annual Meeting 2012 di Forum ICT

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Approccio e Roadmap per la razionalizzazione dei sistemi analitici Corporate: il caso DHL Express

  1. 1. Annual Meeting del FORUM ICT LEAN IT Approccio e Roadmap per la razionalizzazione dei sistemi analitici Corporate: il caso DHL Express a cura di Luca Quagini e Matteo Rossetti SDG Group20 novembre 2012, Fondazione CUOA Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com
  2. 2. AgendaExecutive Summary: contesto e mandatoDHL Express: profilo azienda e profilo ITIl Progetto “Lean BI”: approccio, roadmap e scelte Tecnologiche Funzionali OrganizzativeTake Aways Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 2
  3. 3. Executive Summary: il contesto [1/2] Tutte le attività e risorse ICT necessarie per lo sviluppo e la manutenzione, insieme aquelle per la gestione dell’infrastruttura di comunicazione e di esercizio degli applicativi,sono state demandate ad una società del gruppo (ITS). Presenza di due distinti centri (Praga e Kuala Lumpur) di competenza ed eserciziodella funzione ICT, in una sorta di “regionalizzazione” delle architetture e soluzioniapplicative: Europa e America (EUAM) vs. Asia Pacific e Emerging Markets (APEM) Due sistemi standard centralizzati di billing, adottati da ciascuna country Limitata standardizzazione dei sistemi ERP adottati da ciascuna country, nessunacentralizzazione degli stessi Sistema centralizzato (OPMS) di gestione e monitoraggio delle Operations lungotutta la Supply Chain per singolo shipment (dalla richiesta di pickup, al pickup, agli stepdi attraversamento di ogni singoli gate/hub, fino alla delivery finale) Integrazione di OPMS con i sistemi di billing, con attivazione di eventi (transazioni) infunzione di ciascun checkpoint superato lungo la supply chain Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 3
  4. 4. Executive Summary: il contesto [2/2] ICT staff - Corporate e Regional (EU, AM, APEM) - recentemente ridotti a pocheunità e focalizzati su competenze di Program/Project Management, di supportoall’analisi funzionale dei requisiti di business e dedicati alla gestione dei progetti ICTassegnati direttamente ad ITS e/o subappaltati da quest’ultima ad altri vendors. Piena autonomia alle singole country nell’individuazione e implementazione disoluzioni applicative locali, al di fuori dei sistemi di billing e OPMS (centralizzati). Business IT (B-IT): si tratta di una funzione aziendale presente in ogni legal entity(Country, Region, Corporate) e dedicata al ruolo di collegamento funzionale tra LoB(Sales, Finance, Operations, Customer Service …) e dipartimenti ICT locali e/o lastruttura ITS globale. B-IT Operations B-IT Sales & Finance B-IT Customer Service Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 4
  5. 5. Executive summary: Obiettivi del Progetto BI & EDW Roadmap: keep it simple, keep it lean! Semplificare e razionalizzare l’architettura funzionale e tecnologica di BI a livelloCorporate e Regional Creare i presupposti per l’adozione della nuova piattaforma BI anche a livelloCountry Aumentare l’efficienza dei processi di fruizione e gestione della BI: Fruizione: riduzione time-to-delivery dei report e delle analitiche BI Self Service riduzione degli errori manuali automazione riduzione errori di comunicazione vocabolario comune confidenza nelle metriche di business single version of the truth Gestione: riduzione del numero di sistemi/silos di BI riduzione licensing costs riduzione user support & application maintenance costs aumento affidabilità: ridondanza, disaster recovery, load balancing Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 5
  6. 6. DHL e il gruppo Deutsche Post DHLDHL is Part of the Worlds Leading Logistics Group, Deutsche Post DHL It offers integrated services and tailored, customer-focused solutions for managingand transporting letters, goods and information. It comprises four divisions. Express Global Forwarding, Freight Supply Chain Global MailThese segments operate under the control of their own divisional headquarters. TheGroup management functions are performed by the Corporate Center.Internal services which support the entire Group, including Finance Operations, IT andProcurement, have been centralized. This consolidation enables DHL to increase theflexibility of our business, improve service quality and leverage economies of scale andcost benefits.DHLs international network links more than 220 countries and territories worldwide. Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 6
  7. 7. DHL Express: StrutturaHead Office: Bonn, GermanyRevenue: Approx. 11.8 billion euros (2010: approx. EUR 11.1 billion)Shipments: Approx. 468 million (TDI: 141 million)Network: More than 220 countries and territories served // more than 500 airports served globallyEmployees: Approx. 100,000Customers: Approx. 2.5 millionAircraft: Approx. 250 dedicated aircraftMain Global Partner Airlines: Aerologic, Kalitta Air, Polar Air Cargo Worldwide, Southern AirCommercial Flights: Approx. 1,760 daily flights (average; domestic and international)Vehicles: Approx. 31,000Facilities: Approx. 4,100Service Points: 34,0003 Global Hubs: Hong Kong, Leipzig, Cincinnati15 Main Regional Hubs: Amsterdam, Bergamo, Brussels, Copenhagen, East Midlands (UK), Frankfurt, London, Paris, Vitoria (Spain) // Bangkok, Singapore // Bahrain, Dubai, Lagos // PanamaGlobal IT Centers: IT centers in Cyberjaya (Malaysia) and Prague (Czech Republic), supporting the entire global networkGlobal QCC: Global Quality Control Center are located in Bonn (Germany), Leipzig (Germany), Cincinnati (US) and Singapore (Singapore). Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 7
  8. 8. DHL express: Struttura BI & DWH Corporate Sviluppo stratificato e non organico di soluzioni dipartimentali: Siloed Data Mart Replica incontrollata di informazioni sia anagrafiche, sia di metriche aziendale Assenza di un business dictionary cross-funzionale comune Piattaforme diverse e “regionalizzate” presso i due IT Center: Praga: Teradata + IBM Cognos 8 Kuala Lumpur: Informix + IBM Cognos 7.x + PowerPlay Cubes Fallimento delle precedenti inziative di Enterprise DataWarehouse Regional Implementazione di soluzioni custom estemporanee Scarso utilizzo di strumenti di sintesi Sistemi BI Regional pressoi due IT Center Country In alcuni casi: applicazione siloed presso IT Center In generale: development, run e maintenance locale Data Feed: da sistemi di billing (centrali) e/o ERP (locale) Solo linee guida corporate su scelte tecnologiche e di piattaforma BI/DWH landscape disomogeneo Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 8
  9. 9. Piattaforma DWH/BI - Prague Many applications copy data from different into their data mart Almost each application is usingThe same data is it‘s own BI Layer stored in many places on the same Teradata system Data availability Two major silos: and data OPMS, DDWc freshness might Many applications not support the build on top of these needs of future BI Data is being processed in many different ways leading to a lack of transparency Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 9
  10. 10. Global BI Ecosystem• Solid foundation > DWH pillars by Business Process: Commercial, Finance, Operations > TD best of breed expertise and technology• Highly fragmented > Up to 100 items (ETL, Data Marts, Virtual Repository, Front-End Apps, Web Applications, …) > No standardization strictly applied• Vertical by Process > No horizontal layer serving different business processes > BI apps developed regionally and adopted as best practice > No single version of the truth• Sub-optimized > Act now! vs. Consolidated Global BI Tomorrow > Difficulties on execution of Long Term Strategy > Lack of Data Governance Partial data duplication > Local and Regional BI sometimes not aligned with Global BI Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 10
  11. 11. Why BI Roadmap for DHL Express?Optimization of Run Costs by Get more knowledge out ofconsolidation of BI Systems existing informationBetter and more detailed Give faster answer to all kindsunderstanding of customers BI of questions RoadmapGet use of early warnings andrisk management To see challenges in context Single version of the Truth Analyse root cause and reactInformation as a differentiator proactivelyOptimize enabling BI systems Avoid the Babylonian Languageand business processes Tangle Reduce costs and getting more lean Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 11
  12. 12. High Level estimate for Lean IT impact Annual 0,1% Rule Quarterly Facts Opportunities Leverage (estimation) Impact Impact Bundling of product New Cross- with service: Sell/Up-Sell Information opportunities management (i.e. through cross- Event Management divisional data (SMS), GoGreen Certificates, Etc. 0,1% 2,62 Mio. Ca. 10 Mio. Revenue growth growth per Additional per Quarter Customer develop- Year2.620 Mio € New customers: ment: Special revenueRevenue in Focused offers for High campaigns on value customers; Q1 (2010) granular and Development of consistent data specific products,Assumption: etc. REVENUE 95% of Revenue = costs (5% global process Identification of cost Value drivers and margin) management bottlenecks of processes, with insight as Monetary Network basis visibility 0,1% 2,5 Mio. Cost Ca. 10 Mio. savings per Cost savings Cost Quarter per Year Business Cross-divisional savings performance benefits through holistic view and Management better root cause (Single view of analysis, Reduced the business) Data Latency COSTS Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 12
  13. 13. General BI Roadmap methodology Phases Stream 1: Stream 2: Data Sources and IT Infrastructure Processes and Business requirementsStatus Quo • BI Landscape: Status Quo of analytical systems and of • Focus on Business Users and core processes: requirements operative Data Sources and most important business questions(as-is: current • Evaluation of existing BI KPI (Teradata Spidernet): Datasituation and status Volume, concurrent queries, Data complexity, Data Models, • Aggregated picture: IT Landscape , core processes, KPI and metricsquo of BI Landscape) Data Volume, flexibility, actuality and mixed workload • Internal Analysis: Strategic directions of DHL Express for • External analysis: Trends in the market of courier eypress andTarget state Express business and their effects on BI parcel services and their influence on BI • System evaluation based on Teradata „Spidernet“ • Competitor analysis: BI Strength and weaknesses, recognized(to-be: requirement best practisesanalysis) • Development of DHL Express BI Landscape along the information evolution roadmap • Big Picture of BI-Solutions (BI Wish List) with KPIGap Analysis • SWOT of most important BI Systems, identification of value • Business needs prioritization: what needs to be addressed drivers asap(Identification of • Clustering of needs into short-, mid- and long-term needsBusiness and IT • Identification and quantification of gaps along the Teradata „Spidernet“ • Structured business BI needsGaps)BI Scenarios • Creation of an assessment schema /including business and it • Design of 3 scenarios to close the gaps. High-Level requirements(Strategic alternatives description of efforts and investment (tangible and intangible) • Agree upon the assessment schemato fill the gap)Evaluation • Identification of short-, mid- and long-term potentials of the • Evaluation of Scenarios with focus on BI and Technology scenarios(Benefit analysis of • Categorization of Scenarios (Focus: costs, migration efforts, • Sorting of the scenarios based on cost viewsselected BI benefit horizons, etc.)Scenarios) • Evaluation and selection of the BI-scenariosBI Roadmap • Detailed BI Roadmap based on the existing IT-Landscape • Business case and action plan(Business case and • Action plan, next steps and resourcesaction plan) Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 13
  14. 14. Two Major Cost Drivers As-Is Cost Driver #1 Cost Driver #2Run Costs Resources Costs(Redundancies and Inefficiencies) (Users and business processes)• Methodology • Methodology• BI-Landscape • Processes and Potential Opportunities• Target global platform costs • Business Users & Organization• Findings and actions • Operations• Opportunities (Potentials) and outlook • Result Estimate of costs savings and business improvement potentials Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 14
  15. 15. Run Costs fragmentation BI Run Costs by Scope BI Run Costs by Process2009 BSC: TOTAL Run Costs: XX M€/Year 2 main global sites (PRG, CBJ) charging 50% each Many different technologies Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 15
  16. 16. As-is findings Cost savings from immediate actions: Shut down, decommissioning, soft migration and other actions. Change of mindset required: Cleaning up the garden vs. starting new projects Warning: Any new BI development is now costly and can’t contribute alone to! integration/consolidation/optimization. CBJ: Still spring for best practices, but needs to be fully aligned and compliant with Global BI strategy. Finance: INSIGHT adds Cost Transparency to Finance BI Country DW/DM: Almost annual x.y Mio.€ run costs from BSC for local BI applications and systems. Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 16
  17. 17. Cost Driver #1: actions Further Investigations Actions Focus on: • Change Management • Corporate Performance Management (CPM) pervasive approach Lean • Global BI Framework Regional Reporting / Local BI BI Gov. & landscape Strategy Demand Management Aviation BICC Corporate data CPM Tools model Planning & Metadata layers Budgeting EDW BI Portal Gloabl vs. Industry metrics LocalMedium Term Plan and analytics Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 17
  18. 18. Two Major Cost Drivers As-Is Cost Driver #1 Cost Driver #2Run Costs Resources Costs(Redundancies and Inefficiencies) (Users and business processes)• Methodology • Methodology• BI-Landscape • Processes and Potential Opportunities• Target global platform costs • Business Users & Organization• Findings and actions • Operations• Opportunities (Potentials) and outlook • Result Estimate of costs savings and business improvement potentials Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 18
  19. 19. Resources Costs: savings opportunitiesCurrent BI Processes Process Potential 10,00 5,00Future BI Processes 0,00 User Potential 1 2 3 4 5 Senior Manager Power User Medium Light Consumer TOTAL TOTAL Number of users per profile 500 users 1194 users 600 users 3848 users 7416 users Average annual cost for 1 FTE 90.000 EUR 70.000 EUR 60.000 EUR 50.000 EUR 50.000 EUR Cost per hour 45 EUR 35 EUR 30 EUR 25 EUR 25 EUR Current Setup Average weekly working hours for Processs 1-11 per User 5,50 h 36,00 h 15,70 h 10,13 h 3,50 h Average annual working hours for Processs 1-11 per User 275 1.800 h 785 h 506 h 175 h Structure of BI-User Total annual working hours for user profile 137.500 h 2.149.200 h 471.000 h 1.948.050 h 1.297.800 h 6.003.550 h Total Cost 6.187.500 EUR 75.222.000 EUR 14.130.000 EUR 48.701.250 EUR 32.445.000 EUR 176.685.750 EUR Future Setup Average weekly working hours for Processs 1-11 per User 2,00 h 18,35 h 4,00 h 3,14 h 1,38 h Average annual working hours for Processs 1-11 per User 100 918 h 200 h 157 h 69 h Total annual working hours for user profile 50.000 h 1.095.495 h 120.000 h 603.655 h 509.850 h 2.379.000 h Total Cost 2.250.000 EUR 38.342.325 EUR 3.600.000 EUR 15.091.375 EUR 12.746.250 EUR 72.029.950 EUR Reduction -3.937.500 EUR -36.879.675 EUR -10.530.000 EUR -33.609.875 EUR -19.698.750 EUR -104.655.800 EUR TOTAL S e n io r M g r P o w er U ser M e d iu m L ig h t C on su m e r O p e r a t io n s 100 200 0 0 4 .5 0 0 F in a n c e 100 457 0 924 8 S ale s 100 80 600 2 .0 0 0 2 .9 0 0 M a r k e tin g 100 0 0 0 0 P r ic in g 100 457 0 924 8 TO TAL 500 1 .1 9 4 600 3 .8 4 8 7 .4 1 6 1 3 .5 5 8 Result C u r r e n t S e t u p E s t i m a t e s G o v e r n a n c e A n n u a l C o s t s B I L e v e l R u n /S u p p o r t A v e r a g e B u il d / B u s in e s s F T E M a i n t e n a n c e c o s t s c o s t s In s id e o f IT - S O u t s i d e IT S S e r v ic e C e n t e r s S e r v ic e C e n t e r s C u r r e n t T o t a l B a s e d o n 2 0 0 9 D e c r e m e n t a l In c r e m e n t a l B S C s i n c e b e g in n in g s in c e b e g i n n in g o f 2 0 0 9 o f 2 0 0 9 G lo b a l 1 1 .3 8 6 . 0 0 8 ,9 4 9 .8 7 5 .5 0 8 , 9 2 - 4 9 . 4 9 9 ,9 8 1 . 5 6 0 .0 0 0 , 0 0 0 , 0 0 3 .0 0 0 .0 0 0 ,0 0 R e g io n a l 4 .4 0 1 . 8 1 5 ,7 3 9 .4 9 9 .8 5 3 , 6 2 - 5 .5 9 8 . 0 3 7 ,8 9 5 0 0 .0 0 0 , 0 0 5 0 0 .0 0 0 , 0 0 7 0 0 .0 0 0 ,0 0 1 7 6 .6 8 5 . 7 5 0 ,0 0 C o u n t r y 6 5 4 . 9 1 3 ,9 1 4 5 4 .9 1 3 , 9 1 0 ,0 0 2 0 0 .0 0 0 , 0 0 1 . 0 0 0 .0 0 0 , 0 0 2 .0 0 0 .0 0 0 ,0 0 T O T A L 1 6 .4 4 2 . 7 3 8 ,5 9 1 9 .8 3 0 .2 7 6 , 4 6 - 5 .6 4 7 . 5 3 7 ,8 7 2 . 2 6 0 .0 0 0 , 0 0 1 . 5 0 0 .0 0 0 , 0 0 5 .7 0 0 .0 0 0 ,0 0 1 7 6 .6 8 5 . 7 5 0 ,0 0 F u t u r e S e t u p E s t im a te s G o v e r n a n c e A n n u a l C o s t s B I L e v e l R u n /S u p p o r t A v e r a g e B u il d / B u s in e s s F T E M a i n t e n a n c e c o s t s c o s t s In s id e o f IT - S O u t s i d e IT S S e r v ic e C e n t e r s S e r v ic e C e n t e r s G lo b a l 2 5 .0 0 0 . 0 0 0 ,0 0 0 , 0 0 5 .0 0 0 .0 0 0 ,0 0 R e g io n a l 7 2 .0 2 9 . 9 5 0 ,0 0 C o u n t r y T O T A L 2 5 .0 0 0 . 0 0 0 ,0 0 0 , 0 0 0 ,0 0 0 , 0 0 0 , 0 0 5 .0 0 0 .0 0 0 ,0 0 7 2 .0 2 9 . 9 5 0 ,0 0 R e d u c t i o n T O T A L 8 .5 5 7 . 2 6 1 ,4 1 - 1 . 5 0 0 .0 0 0 , 0 0 - 7 0 0 .0 0 0 ,0 0 - 1 0 4 .6 5 5 . 8 0 0 ,0 0 Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 19
  20. 20. Time Savings potential Current Future BenefitsBI Setup Average Average (difference) Weekly average [hours] 1 Data Gathering 0,7 2 Data Linking 0,6 0,6 -1,4 3 Processing 0,7 4 Evaluate 0,7 0,4 -0,4 5 Analyze 1,2 0,8 -0,4 6 Formatting 0,8 0,2 -0,6 7 Review and Approve 1,4 1,0 -0,4 8 Re-Iterations 5,0 1,7 -3,3 9 Publish 0,7 0,1 -0,610 Communicate 1,6 0,6 -1,011 Accept 0,8 0,3 -0,512 Action InformationTotal 14,2 5,8 -8,4 Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 20
  21. 21. La scelta metodologica: lean ITIdentificazione e rimozione di inefficienze e ridondanze con impatto su: customer service, customer facing activities costi di gestione e mantenimento del business produttività inidividuale costi di gestione piattaforma DWH/BI/AnalyticsFOCUS Defects Overproduction Waiting Non-Value Added Processing Transportation Inventory Excess Motion (Excess) Employee Knowledge (Unused) Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 21
  22. 22. Business Case dimensions BI Run Costs reduction • Global: from xx M€/Y to y M€/Y • Regional: assess and move to global platform • Local: assess and eliminate redundancies • Aviation: assess for integration synergies BI User Processes optimization • Huge impact on BI productivity • Estimated value: xx M€/Y Uncover Business Potentials • EDW Best Practices generate Revenue Growth and Cost Savings • Conservative Achievable Benefits: +xxM€/Y Revenue and - xxxM€/Y Costs Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 22
  23. 23. Business Case: Run Costs dimension Global: total run costs xxM€/Y • Items sunset in the last 12 months and recent actions: xx M€/Y • BPD environment: xx M€/Y • Oracle OPMS duplication: x M€/Y • FINANCE BI applications and INSIGHT: x M€/Y • Other BI items (commercial, pricing, ops): x M€/Y Regional: run costs are unknown • EMEA, AP, NA, IA must converge into global BI vision • TO DO: assessment and action plan Local: run costs are unknown • Local BI apps play relevant role and absorb resources • TO DO: assessment and action plan Aviation • Ongoing integration of organization and processes • BI must be assessed and integrated as well Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 23
  24. 24. Vision for EDW To Be Major topics to address Holistic Blueprint: 8 Success Factors for Triple A BI Framework (“Access – Analytics – Action”) Decisions and Management Process planning „Closed Loop“ OPERATIONS iDW Platform ANALYTICS Analytics Enterprise iDW iDW Archi- Gover- and tecture Data nance Sustain- Model ability Reporting BI Appli- Data Analytics and Storage cation 1 Data (“Storage”) Agility Analytical Capa- bilities Data Quality, Security; Privacy Master- data Manage- ment Operational Finance Logistics Customers Prodcuts ProcessesSrc BI Appli- BI cation 2 Layer EDW Enterprise EDWSrc Gover- BI Appli- Archi- Data Sustain- nance cation 3 tecture Model ability Data Master- Analytical Quality data Agility Capa- Single Version of the Truth Security Manage- bilities Privacy ment Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 24
  25. 25. Governance Framework: vista organizzativa Entities Roles C-Level Sponsors: cross-functional support for EDW initiative from CxO is key Chief Performance Officer (CPO) & C-Level Sponsors Steering Committee: provide ultimate authority and empowerment to unify metrics and information across the whole organization. CPO & SteeringBusiness IntelligenceCompetency Center Committee Governance Council: representative of the entire business organization to enable alignment and synch points when information are unified Governance Council Data Stewards: span and work across all business application landscape and systems to ensure integrity of data objects and subject areas Data Stewards Business Intelligence Competency Center (BICC): provides foundation for strategic and tactical alignment of the EDW Business initiative IT IT: partners with business and ensures tools, systems and data are all available Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 25
  26. 26. Focus : BICC Structure BICC Fundamentals CPO can be appointed based on leadership skills and business knowledge skills. Virtual BICC BICC members should have strong business background, and good links with BI fellows Business processes participation ensures Finance Ops Sales knowledge of business requirements All business functions should be able to support cross functional BI initiatives It provides deep, up-to-date business knowledge and focus BICC Virtual: flexible organizational structure adjusting to BI needs across each function No need to hire dedicated SME (Subject CPO Matter Expert) to be allocated in each function Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 26
  27. 27. Agnostic Approach to BI Framework3x3 Guidelines matrix: 3 BI metrics, 3 BI perspectives (SDG adapt-case©): Perspectives Strategic Integrated Performance Alignement Planning Monitoring Performance Metrics Financial OperationalMajor Phases Key Factors KPIs BI/PM Process Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 27
  28. 28. BI / CPM Framework End-to-end BI: from data to dashboard (SDG adapt-case©): BI Corporate Scorecard and Dashboard by Report Perspective By BI by Planning & Forecasting Financial Consolidation Process ByProcess Data Marts Analytics Analytics Analytics by “Performance” “Financial” “Operational” Metric Model By DWH Data Management, Mining and Warehouse by Logical Data Model Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 28
  29. 29. BI Technical FrameworkComposite Framework – incremental best-of-breed adoption (SDG adapt-case©): “Business users driven, business Global Reporting / Planning Global reference “Metabase” common language” Essential EnablersTop-Down Bottom-Up Elastic Enterprise Toolkits by Business Process DWH by Business Model “Think big, start small” Parallel DesignShort term Medium-Long term “Enterprise and Active” Datawarehouse “Scalable and Agile” Business Intelligence “Multidimensional and for-planning” CPM “Unique and Collaborative” Portal “Reduce costs and getting more lean” Essential ComponentsFrom Data To Dashboard Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 29
  30. 30. Recommendations Evaluation of Results: DHL Recom- Challenge As-Is To-be Next Steps mendationsStart building an EDW in parallel to the existing BI application landscape An Enterprise Logical Data Model is a key asset as it represents the whole enterprise in aconsistent way Name a EDW / BI Architect, install the virtual Governance structures within the business,and install a BICC and CPOChange from an application centric BI landscape to an integrated BI landscapeIntroduce agile methodologies, e.g., “Sandboxing”, SCRUM, XP An EDW, integrating major data sources in one data model, will allow for consolidating thecurrent BI landscapeEmpower the data stewards to drive the „Data Quality Improvement Process“Focus on a subject area of the Enterprise LDM for master data Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 30
  31. 31. Business Case summary Benefits without EDW Business Case: Benefits with EDWBenefits Benefits Annual Business > x Mio. € potential /year EDW is required to reach the (new Business and potential Opportunities) Master Savings through consolidation EDW Annual Resource Road-map potential (Migration and centralization (User and their processes) through the EDW – BI processes) > x Mio. € /year TCO savings potential *) Annual Run-Cost Saving x Mio. €/year Annual Run-Cost Saving Potential Potential Benefit Spectrum Benefit Spectrum *) Consolidation will lower TCO Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 31
  32. 32. EDW Roadmap: starting point Many BI applications BI functional silos Data duplication Non-homogeneous tools Data flows (horizontally & vertically) across multiple layers Any BI strategy almost impossible to enforce Cross-functional collaboration and decisions driven by common BI strategy are key to success! Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 32
  33. 33. Function-driven approach Business Functions Each business function drives its own stack of BI applications Drive Drive Drive Drive Huge amount of data duplications PAPAYA 1.5 INSIGHT 1.5 Business Rules not aligned across START 1.0 functions: GSI 2.0 Illustrative Data Overlap Customer hierarchies CustomerAccount 100%Customer 75% Profitability reportingGeography 100%Revenue 100% This lead to siloed, complex, static andCost 50%Shipment 75% expensive BI landscapeService 100%Revenue (daily) 25% Such BI infrastructure and platformTime 100%Human Resources 25% causes inefficient back-office BI processesGeneral Ledger 25% and slows down business responsivnessClaim and Complain 25%Shipment Profile 25%Contract 25% Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 33
  34. 34. New approach: BI functionality driven BI C Agreed Priorities: • Business RequirementsBI Roadmaps Consolidationby Functionality • Global BI Roadmap • Cost/OpportunityBusiness … Business Data Areas asData Areas Building Blocks Business Requirements are prioritized by BICC on a cross-functional base and drive Data Areas availability along iDW Roadmap Data Areas deliver cross-functional BI features and business metrics Concept Both aspects are tightly interconnected and have to be managed together! BICC to enforce standard processes and tools: BI demand management BI dictionary BI implementation practices BI Governance Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 34
  35. 35. EDW Roadmap in context C New Roadmap PROPOSAL to BICC EDW milestones are placed when BIinfrastructure supports BI functionalities Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 35
  36. 36. Change of mindset is required• Split applications into smaller building blocks; reduce build complexity by focusing on cross-functional re-usage of data, functionality and metrics (Business BI Dictionary)• BICC prioritizes each single building block by BI function aligned with Business Data Areas roll-out along iDW Roadmap C Traditional: by application C New: by functionality Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 36
  37. 37. BICC as enabler for BI simplificationThe BICC is the x-functional body that governs and manages the transition from today’sscattered BI landscape to one that is integrated and centralized.Custodian of the future Single Source of Truth. It will increase the quality and availability of information.No extra FTEs, but helping key BI Experts to work together efficiently. BICC will build bridgesacross functions and combine Business, IT and Analytical skills. Enable Faster BICC takes on responsibility in Revenue Generation several steps. It will grow while Reduce Overhea we continue to replace legacy Reduce Decisions d Cost BI and free up resources which Time-to- Market Achieve we can then move as part of BI Agility Business Model Data Rules BICC. Remove BICC Redundancies It will reduce costs by Bus iness Rules Model Data Business Ruled Model Data streamlining BI processes and reducing IT overhead Avoid Data Reduce Reduce Manage Replication Data Infrastructure IT Cost Footprint Cost Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 37
  38. 38. Take Aways … by Lean IT approach Waste Element Issues Negative Outcomes solvedDefects • Unauthorized BI system and application Poor customer service, increased changes. costs. • Substandard project execution.Overproduction •Unnecessary delivery of low-value BI Business and IT misalignment,(Overprovisioning) applications and services. Increased costs and overheadsWaiting •Slow BI application response times. Lost revenue, poor customer service, •Manual service escalation procedures. reduced productivity.Non-Value Added • BI metrics to business managers. Miscommunication.ProcessingInventory (Excess) •Server sprawl, underutilized hardware. Increased costs: data center, energy; •Multiple repositories to handle risks and control. lost productivity. •Benched application development teams.Employee Knowledge •Failing to capture ideas/innovation. Talent leakage, low job satisfaction,(Unused) •Knowledge and experience retention issues. increased support and maintenance •Employees spend time on repetitive tasks. costs. Source: 2008, Peter Waterhouse “Improving IT Economics: Thinking Lean” Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com 38
  39. 39. luca.quagini@sdggroup.com matteo.rossetti@sdggroup.comCopyright © 2012 SDG group. All rights reserved. www.sdggroup.com 39

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