This document proposes a case study for improving business intelligence (BI) at Guthy-Renker. It summarizes Guthy-Renker's current state of BI maturity as Level 3, identifies areas for improvement, and makes recommendations. Key recommendations include achieving Level 5 BI maturity, better aligning IT and business strategies, improving performance management, and extending the existing BI system across the entire value chain. The proposal also outlines strategies for business, IT, performance management, people focus, and information systems.

1. Case Study Proposal
Alexandra Chtchtedrina | Pragya Seth
Craig Doner | Kieran Blubaugh
2/21/2013

2. Agenda
Current State Analysis
Business Strategy
IT Strategy
Business Performance Improvement
People Focus
Informational Systems
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3. Current State of BI at Guthy-Renker
• Currently Guthy-Renker is in Stage 3 Proactive:
• Characteristics of Stage 3:
▫ Upper level management attention
▫ BI system in place at their central hub
• Level 4 Barriers
▫ A group coordinates all information-management activities
across the enterprise. Data stewards assume responsibility for
data quality in the business units and IT organization.
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Current State Business Strategy IT Strategy
Performance
Management
People Focus
Information
Systems

4. GR should focus on the following improvements
 Get to maturity level 5
 Better alignment of IT and Business
 CEO involvement
 Improving Performance
Management
 Extending current BI
system across the entire
value chain
 Enterprise Information
Management to drive
results
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Supply
Chain
Users
Current State Business Strategy IT Strategy
Performance
Management
People Focus
Information
Systems

5. Key aspects of business strategy focus
• CEO sets a unifying vision
• Board of Directors maintains a consistent vision if
leadership changes
Importance of
Executive Support
• Institutionalize data driven decision making before
rolling out BI Implementation
Creating a Data
Driven Culture
• Vendors, Outsourcers and Partners must share data-
driven decision culture and utilize the BI structures
developed by Guthy-Renker as data producers and as
data consumers
Vendor
Relationships
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Current State Business Strategy IT Strategy
Performance
Management
People Focus
Information
Systems

6. IT strategy should align with business needs
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Current State Business Strategy IT Strategy
Performance
Management
People Focus
Information
Systems
• Business users buy-
in
• Understanding the
impact of BI, how to
realize more benefits
from the system
• Use information
from BI systems to
predict future needs
• Understand
reporting
requirements
• Understand
business
communication
•Support for
increasingly virtual
and international
organization
Business IT

7. IT Strategy to support business processes
 Immediate areas of improvement
 Consistency across all data source systems
 Implementation of enterprise data warehouse
 Enhancements to ETL tools and reporting tools
 Improvement in future – new BI approaches
 Social media analytics
 In-memory analytics
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Current State Business Strategy IT Strategy
Performance
Management
People Focus
Information
Systems

8. Social Media Analytics for customer data
Analysis of tapped information using visualization and modeling
Social Media BI – structure the unstructured information
Use of social media for marketing
GR focus on marketing campaigns and customer response
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Current State Business Strategy IT Strategy
Performance
Management
People Focus
Information
Systems

9. In-Memory Analytics for faster BI systems
 Features
 Self-service analytical capabilities
 Agility of development
 Faster query responses
 Benefits to Guthy-Renker
 Performance improvement
 Cost efficiencies
 Improved information access
 Flexibility
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Current State Business Strategy IT Strategy
Performance
Management
People Focus
Information
Systems

10. IT Governance to support BI strategy
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Maintain current alliance
with Trinius to work
towards achieving BI
maturity
In-house data quality
groups for internal audits
External consultants to
audit systems and data at
regular intervals
User surveys to identify
areas of improvement
Current State Business Strategy IT Strategy
Performance
Management
People Focus
Information
Systems

11. Business Performance Management at GR
 Currently GR uses soft Measures:
 Are people involved
 Are people invested in the project
 Extending Key Metrics to Value add indicators
 Cost per order Financial  Reduction of overall
costs due to system
 Customer lifetime value Internal business 
Revenue Increase
 Return on Promotional Investment Customer
Perspective  Number of under performing
promotions eliminated
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Current State Business Strategy IT Strategy
Performance
Management
People Focus
Information
Systems

12. How personnel changes influenced effectiveness
 The change from FoxPro to IBM’s Cognos was not
enough to solve all problems
 At first, it only migrated the same bad process
 Brought in consultants from Trinus Corporation
 They possessed the proper skills and experience to make a
successful process
 Key to success was a “shake up” of the development team
 This disrupted the habitual behaviors that caused errors to repeat
in the past
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Current State Business Strategy IT Strategy
Performance
Management
People Focus
Information
Systems

13. Current Information Systems architecture at GR
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Operational System
ETL Tools - Informatica
Managers
(Users)
Operational System
Various data source systems
Operational data store (Oracle)
Managers
(Users)
Managers
(Users)
…Dashboards Analytics Scorecards/ reports
Reporting systems
– IBM Cognos
Derived System
Reconciled System
Operational System

14. Reporting system
 IBM Cognos reporting system
 3 sets of auto-generated reports: flash, weekly, monthly
 Tailored for specific functional users: executives,
operations. Etc..
 Ad hoc reports available
 Open source – service oriented architecture
 Expand this system to entire value chain
 Train users
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Current State Business Strategy IT Strategy
Performance
Management
People Focus
Information
Systems

15. Derived system
 Implement Enterprise Data Warehouse - Inmon’s
approach
 Leverage existing relational databases
 Strategic approach to address enterprise wide needs
 Scalability and flexibility
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• Inadequate involvement from top
management
• Inadequate involvement form
business users
• Data quality issues not addressed
• Important to understand
organization’s needs
• Continuous assessment of
business requirements
• Centralized implementation
approach
Common mistakes Key Learning
Current State Business Strategy IT Strategy
Performance
Management
People Focus
Information
Systems

16. Reconciled system
 Master Data Management:
 Unify GR's many units within one business strategy
 Importance of Data Accuracy:
 Data Profiling as a tool to ensure Data Accuracy
 Data must be accurate, timely, relevant, complete, understand, and
trusted
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Common mistakes Key Learning
Implement new IT
solution over the existing
faulty data structure
Complete Data Profiling
and re-design business
processes before
implementing a new IT
solution
Current State Business Strategy IT Strategy
Performance
Management
People Focus
Information
Systems

17. Data Governance
respected
enterprise-wide
effective
communicator
proficient in
business
builds
consensus
manages
change
builds teams
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Assign data ownership in a
way that reinforces silo-ing of
data and territoriality
Use Data Stewardship as a
data-ownership model to
facilitate sharing
Common mistakes Key Learning
 Master Data Management:
 Unifies GR's many units within one business strategy
 Effective Data Steward:
 Respected enterprise wide, effective communicator,
proficient in business, builds consensus, manages change,
builds teams
Current State Business Strategy IT Strategy
Performance
Management
People Focus
Information
Systems

18. Conclusion
Currently: Level 3 – Proactive
Proposal: Achieve Level 5 – Effective
Improvement Factors
 Better alignment of IT and Business
 CEO involvement
 Improving Performance Management
 Extending current BI system across the entire value chain
 Improvements in BI technology
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19. Questions?
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20. Appendix: EIM Maturity Model
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21. Appendix: BI Methodology
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22. Appendix: GR Org Structure
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23. Appendix: Processing Data at GR before BI
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24. Appendix: Intended BI Structure
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25. Appendix: The BI Continuum
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26. Appendix: GR’s KPI’s
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27. Appendix: References
1 Fisher, T. "Data Profiling: The Diagnosis for Better Enterprise Information," Business
Intelligence Journal (12:3) 2007.
2 Henderson, J.C., and Venkatraman, N. "Strategic alignment: Leveraging information
technology for transforming organizations," IBM Systems Journal (32:1) 1993, pp 4-16.
3 Kaplan, R.S., and Norton, D.P. "The balanced scorecard – measures that drive performance,"
Harvard Business Review (70:1) 1992, pp 71-79.
4 Khatri, V., and Brown, C.V. "Designing Data Governance," Communications of the ACM
(53:1) 2010, pp 148-152.
5 Newman, D., and Logan, D. "Gartner Introduces the EIM Maturity Model," Gartner
Research) 2008.
6 Strong, D.M., Lee, Y.W., and Wang, R.Y. "10 Potholes in the Road to Information Quality "
Computer (30:8) 1997, pp 38-46.
7 Wadehra, A. "The ABCs of Master Data Management: Architecture, Business Case, and
Customer," Business Intelligence Journal (12:1) 2007.
8 Bonde, A. “Blending BI and Web 2.0: The Path to Collaborative Business Intelligence”,
Evoke CRM, February, 2010.
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