Keys to Business Intelligence Success

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Learn how to define success in business intelligence, the 12 keys to success in BI and an overview of the market-leading business intelligence tools. View the video recording and download this deck: http://www.senturus.com/resources/keys-to-success-in-business-intelligence/.

BI tools covered include: Microsoft, Cognos, Business Objects and Oracle.

Senturus, a business analytics consulting firm, has a resource library with hundreds of free recorded webinars, trainings, demos and unbiased product reviews. Take a look and share them with your colleagues and friends: http://www.senturus.com/resources/.

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  • Hello. Welcome to this month’s installment of the Senturus education series in which we demystify business intelligence. In today’s session we will discuss the keys to success in business intelligence.
  • After a quick introduction of the team, we’ll describe what success in business intelligence looks like. We’ll then describe the primary keys to success based on we have learned across more than 1,000 projects during the past 12 years. Next, we’ll share our perspectives on the expectations business intelligence technology vendors are setting relative to success in BI. We’ll wrap with a Q&A session that will address the questions not already covered interactively during the webinar.
  • from IBM study of 2,000 companiesValue Integrators excel in both efficiency and business insight, which is correlated to financial outperformance.Revenue Growth: N = 580; EBITDA: N = 531; ROIC: N = 501;
  • Organizations are already spending massive amounts on Business Intelligence … and we are not talking about formal BI tools and Data Mart projects***** DO 2 POLL NOW – “How would you define your success?” & “Has BI improved your companies performance?”
  • At this point I’m going to pass the presentation over to John Peterson. He’ll describe the target – the description of what success in business intelligence looks like. John, the floor is yours.
  • Find your Richard BransonExecutive Sponsorship is criticalDon’t build what they ask for, build what they need Bi must be Business Requirements driven & RelevantDon’t Boil the OceanMake projects as small as possible Don’t set out to build a data warehouseBecome a disciple of Vilfredo ParetoReligious devotion to the 80/20 ruleStart off on the Right FoundationThe right architecture is criticalWorry about the DataData QualityShoot early and oftenRapid iterations while laying a long term foundationRally a teamOrganize for SuccessRemember everything is relativeIntegrate contextGet the ball all the way across the goal lineFocus on User Adoption
  • *** DO 2 POLLS FIRSTTDWI and Kimball surveys routinely show that this is THE most important factor
  • Requirements-driven BI Relevance is keyNEXT SLIDE: Focus on leading indicators, not just lagging ones (see next slides)
  • Requirements-driven BI EXAMPLE: Buongiorno report specs…Relevance is key
  • No boiling of ocean– Layout a roadmap & Prioritize– Start as small as possible (phased)– But create a 100% functioning system… and a Wow! FactorFocus on Business Process Dimensional Models (next slide)EXAMPLE: Old DW problem: 3 year, $3million failures
  • Vilfredo ParetoEXAMPLE: Large Finance/GL Mart excluded Quantity and Units in first phase to hit dates needed to support annual planning cycleEXAMPLE: Start with Gross Margin, move to Net Profit (avoid allocation quagmire)
  • Use pseudo-Agile development And LOTS of PrototypingSeries of short projects -- but always within a larger campaign, vision and architectureDeliver string of high ROI projects EXAMPLE: Large financial services company: Early prototyping flushed out the true hierarchies and rollups
  • Organize data into business process dimensional modelsFacts and conforming dimensionsArrange the data the way business people look at itArchitecture matters – can’t rely on a veneer in the metadataAbstracted meta-data layerAggregations and OLAP (important for self-services and performance)Build upon conforming dimensional models (Kimball)Laying the right foundation is criticalMaintain historical contextConvert codes into plain English Integrated data across the enterprise
  • Organize data into business process dimensional modelsFacts and conforming dimensionsArrange the data the way business people look at itArchitecture matters – can’t rely on a veneer in the metadataAbstracted meta-data layerAggregations and OLAP (important for self-services and performance)Build upon conforming dimensional models (Kimball)Laying the right foundation is criticalMaintain historical contextConvert codes into plain English Integrated data across the enterprise
  • Business-IT partnershipCross-functional involvementLeadership is key-----------------------Strong project managementVisionary leadershipExecutive sponsorship ?? Organizing for success BI steering committee BICCCross-functional teamsBusiness and ITHave wide scope to your BIHave wide funding (cross department, cross division)Business IT PartnershipCompile a team that knows business and techStrong leaders on the BI teamTrainingInnovation
  • EXAMPLE: AFC cross-functional team prioritized the 3-5 year roadmap
  • Data qualityAnd lack of dimensionality in source systemsFix issues as far “upstream” as possible (in ERP, not in DW or Reports)Only get one chance to make a good first impressionHuge amount of reworkBI exposes lack of data qualityData quality chicken and egg – Don’t let dirty data stopEXAMPLE: Kelly-Moore (use Large Paint Manufacturer) POS data cleanup and vendor totals issue
  • Avoid Silos
  • Actuals vs. PlanVs. Last YearVs. Competition
  • TrendingRatio analysis
  • In fact, every new addition to your BI System or data warehouse adds exponential value due to relative analysisEXAMPLE: Large Retailer Sales Data + Inventory Data = Days On Hand analysis
  • *** DO POLL HEREEXAMPLE: Semiconductor Manufacturer (Zoran) not doing formal training after year-long $250K project
  • System success starts with User Requirements and ends with solid training and supportPromote BI capabilities and awarenessFocus on benefits, not tech featuresTrainingFacilitate changeProvide a bridge between the old and the newPredominance of gut-feel decision-makingProvide relevance (see chapter “9”)Foster fact-based decision-making
  • Remember to sing it from the rafters… BI PR is critical
  • Don’t let it be a well-kept secret
  • Do it right the first time, and don’t keep heading down the wrong path…
  • Keys to Business Intelligence Success

    1. 1. Part of the BI Demystified Series Keys to Success in Business Intelligence June 21, 2012 www.senturus.com Helping Companies Learn From the Past, Manage the1 Present and Shape the Future
    2. 2. This slide deck is part of a recorded webinar. To view the FREE recording of this entire presentation and download the slide deck, go to www.senturus.com/recorded-webinars.php You will find this—and many other recorded webinars-- under the “Business Intelligence 101“2
    3. 3. Agenda • Introduction • Define Success • Keys to Success • What about Tools & Technology? • Q&A3
    4. 4. Welcome and Introduction John Peterson Greg Herrera Co-founder Co-founder Chairman & COO CEO4
    5. 5. Who is Senturus ? • Consulting firm specializing in Corporate Performance Management – Business Intelligence – Tools of the Office of Finance • Enterprise planning & budgeting • Consolidate, close, report and file (CCRF) – San Francisco Business Times Hall of Fame -- Four consecutive years in Fast 100 list of fastest-growing private companies in the Bay Area • Experience – 12-year focus on performance management – More than 1,000 projects for 500+ clients • People – Business depth combined with technical expertise. Former CFOs, CIOs, Controllers, Directors... – DBAs with MBAs5
    6. 6. A few of our 500+ Clients6
    7. 7. What does it look like? DEFINE SUCCESS7
    8. 8. Measuring Success in BI Cost Business Time Reduction Value Savings + Revenue User + Profit Adoption + Growth + Share… + Total (# & %) Number of + Active (# & %) Reports ROI Number of Subject Shift to Manual BI Areas Fact- Elimination Based - Excel Decisions - Access New Requests8
    9. 9. Bottom Line Results Value Integrators > 20x 49% 30% more 14.0% more more All other enterprises 12.1% 11.3% 9.4% 9.3% 0.5% EBITDA Revenue ROIC 5-year CAGR, 2004-2008 5-year CAGR, 2004-2008 5-year average, 2004-2008 Value Integrators also have an almost 20% better operating efficiency ratio than all other companies examined.Source: IBM Institute for Business Value, The Global CFO Study 20109
    10. 10. This slide deck is part of a recorded webinar. To view the FREE recording of this entire presentation and download the slide deck, go to www.senturus.com/recorded-webinars.php You will find this—and many other recorded webinars-- under the “Business Intelligence 101“10
    11. 11. Success in Business Intelligence • Decisions made by fact, not gut • Analyzing, not gathering and compiling • Spend less, get more • Consensus: BI is a Competitive Differentiator • Perception: ―We couldn’t run the organization without it‖ • Bottom Line: Better Business Performance11
    12. 12. Based on 1,000+ projects over 12 years KEYS TO SUCCESS IN BUSINESS INTELLIGENCE12
    13. 13. Keys to Success in Business Intelligence 1. Find your ―Richard Branson‖ 2. Don’t build what they ask for, build what they need 3. Don’t try to boil the ocean 4. Become a Pareto disciple 5. Shoot early and often 6. Don’t build castles on sand 7. Rally a team 8. Worry about the Data 9. Remember everything is relative 10. Get the ball all the way across the goal line13
    14. 14. 1. Find your “Richard Branson” Executive Sponsorship is critical14
    15. 15. Executive Leadership/Sponsorship Nonexistent or Somewhat Very committed uncommitted committed Moving the needle: • Selection – In-place executive is already a great leader and has strong commitment to BI • Conversion – Very challenging. Best shot is to build on tangible successes • Prototyping can create converts before funding gets vetoed15
    16. 16. Scope of Business Intelligence Individual Department Division Enterprise Moving the needle: • Executive leadership • BI Team leadership – Helps the organization understand the low cost/high value nature of integration points and the high cost of missing the lay-ups.16
    17. 17. 2. Don’t build what they ask for, build what they need17
    18. 18. … and seek Relevance at all costs Work from real requirements backwards18
    19. 19. Seek Forward Visibility & Accountability Lagging Leading Predictive Automated None indicators indicators analytics corrections Moving the needle: • Understand the actions that decision-makers can take • Map and deliver the information that helps them prioritize their actions (Usually leading indicators) • Monitor key metrics for accountability (What gets measured, gets managed)19
    20. 20. 3. Don’t try to boil the ocean Make projects as small as possible, yet aim to achieve ―Wow!‖20
    21. 21. This slide deck is part of a recorded webinar. To view the FREE recording of this entire presentation and download the slide deck, go to www.senturus.com/recorded-webinars.php You will find this—and many other recorded webinars-- under the “Business Intelligence 101“21
    22. 22. Incrementally built, yet integrated • Do not set out to build a data warehouse • Instead, incrementally build business process analytical capabilities, with integration built in • Gain the benefits of a data warehouse without doing a ―data warehouse‖ project22
    23. 23. 4. Become a Pareto disciple Practice religious devotion to the 80/20 rule23
    24. 24. 5. Shoot early and often Rapid iterations and prototyping while pursuing a long-term plan dramatically enhance project success24
    25. 25. 6. Don’t build castles on sand Choosing the right architecture is critical25
    26. 26. … and be careful with your plumbing Choosing the right architecture is critical26
    27. 27. Typical “Best Practices” BI Architecture Integrated Business Process Dimensional Models with Metadata layer(s) Threshold Alerting Standard Reports Single Version of the Truth Planning Data Querying Data Warehouse Ad hoc Self-service Reporting Data Abstraction Model & AnalysisSource Systems of Record Web Portal Slicing & Data Integration Dicing ERP Data Dashboards/ Dashboard Authoring Scorecards Conforming Authoring CRM Data Report Business Process Dimensional Models Threshold-based Alerts Information Security Other Sources27
    28. 28. 7. Rally a well-rounded team A strong Business-IT partnership with Cross- functional involvement is critical28
    29. 29. Business Intelligence “Team” Understands both business and technology. Strong leaders. Dashboards/ Scorecards ―What do you want?‖ ―What do you have?‖Source Systems of Record Decisions & Actions Planning Data Standard Reports (Push- Pull) ERP Data Self-service Reporting & Ad-Hoc Analysis CRM Data Alerts Other Sources The Chasm 29
    30. 30. Business Intelligence ―Team‖ • Cross-functional involvement • Business & IT ―joint-venture‖ • Leadership30
    31. 31. This slide deck is part of a recorded webinar. To view the FREE recording of this entire presentation and download the slide deck, go to www.senturus.com/recorded-webinars.php You will find this—and many other recorded webinars-- under the “Business Intelligence 101“31
    32. 32. 8. Worry about the Data The data will be dirty, but don’t let that stop you…32
    33. 33. Aim for Integrated Data Across The Enterprise Non-integrated Integrated data Spreadmarts data marts warehouse (aka. Silos) Moving the needle: • This topic is covered in-depth in earlier session of the Senturus BI Demystified Series: Do We Need a Data Warehouse?33
    34. 34. 9. Remember everything is relative… Good decision-making requires context34
    35. 35. 9. Everything is relative… Good decision-making requires context35
    36. 36. 9. Everything is relative (cont.) And more context…36
    37. 37. 10. Get the ball across the goal line Focus on User Adoption and the rest will follow37
    38. 38. … User Adoption starts in the beginning Focus on User Needs from Beginning to End38
    39. 39. … “If you build it they will come” does NOT work in BI39
    40. 40. Focus on Users & User Adoption Provide information that is: 1. Relevant 2. Trustworthy 3. Timely 4. Comprehensive 5. Explorable 6. Well-understood 7. Contextual40
    41. 41. Perception of BI Value is crucial Competitive Cost Center Tactical Mission Critical Strategic differentiator Moving the needle: • Prove the value – Work to quantify the value of each BI initiative. Deliver consistent string of high ROI projects. • Tout the results internally. Sell!41
    42. 42. … Finally, shout it from the rooftops Proactive BI ―PR‖ will drive further success42
    43. 43. This slide deck is part of a recorded webinar. To view the FREE recording of this entire presentation and download the slide deck, go to www.senturus.com/recorded-webinars.php You will find this—and many other recorded webinars-- under the “Business Intelligence 101“43
    44. 44. Not key to success? WHAT ABOUT TOOLS & TECHNOLOGY?44
    45. 45. 45 Microsoft - Corporate Scorecard
    46. 46. 46 Microsoft - Excel Front-End to SSAS
    47. 47. Microsoft - Interactive Charts with Drills47
    48. 48. Oracle – Order Fulfillment Dashboard48
    49. 49. Oracle Personalized Start Page49
    50. 50. This slide deck is part of a recorded webinar. To view the FREE recording of this entire presentation and download the slide deck, go to www.senturus.com/recorded-webinars.php You will find this—and many other recorded webinars-- under the “Business Intelligence 101“50
    51. 51. Oracle – Regional Profit & Sales51
    52. 52. Cognos - Executive & District Dashboards (1)52
    53. 53. Cognos - Executive & District Dashboards (2)53
    54. 54. Cognos - Sector Operations Dashboard54
    55. 55. Business Objects - Personal Finances Portal55
    56. 56. Business Objects - Xcelsius College Cost Calculator56
    57. 57. Vendor Comparison – BI Offerings Component Microsoft Cognos Business Objects Oracle Data Integration SQL Server Integration Data Manager Business Objects Warehouse Services (SSIS) Data Integrator Builder (OWB) Data Aggregation SQL Server Analysis Powerplay Aggregate tables or Essbase, OLAP (OLAP) Services (SSAS) Transformer 3rd party (e.g. SSAS) Option in DBMS Data Abstraction SSAS Designer, Model Framework Universe Designer BI Server Modeling Designer (limited to Report Manager, Modeler, Essbase Builder) Transformer Modeler Report Authoring SQL Server Reporting Report Studio Crystal, BI Publisher, Services (SSRS), Excel WebIntelligence Financial Rpting Analysis Tool PerformancePoint Analytics Biz Insight WebIntelligence, BI Answers, (ProClarity), Excel Advanced Voyager Essbase PivotTables/PowerPivot Ad hoc Report Builder, Biz Insight WebIntelligence BI Answers Query/Report PPS Analytics, MS Query Advanced Dashboard PerformancePoint Report Studio, Xcelsius, BI Interactive Authoring Dashboard Designer, Metrics Studio, Dashboard Builder Dashboards Sharepoint Excel Services Biz Insight Scorecard PerformancePoint Metrics Studio Xcelsius, BI Interactive Authoring Dashboard Designer Dashboard Builder Dashboards Portal Sharepoint Cognos Business Objects BI Portal Connection Enterprise Portal57
    58. 58. Technology ―20,000 foot‖ Summary • Commoditization • Tool features & power < 20% utilized • Restless business users • Unrealistic dashboard claims • Lower than expected BI Success rates • Tools do NOT drive BI Success58
    59. 59. Parting thought The sooner you stop to sharpen the saw, the better59
    60. 60. More info…60
    61. 61. This slide deck is part of a recorded webinar. To view the FREE recording of this entire presentation and download the slide deck, go to www.senturus.com/recorded-webinars.php You will find this—and many other recorded webinars-- under the “Business Intelligence 101“61
    62. 62. Contact Senturus Senturus, Inc www.senturus.com sales@senturus.com 888-601-601062
    63. 63. 6363 63

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