CEO / CXO Architecture - The missing piece in your BI&A architecture

The human side of decision making
CEO/CXO Architecture
Tor Inge Vasshus, CEO | Corporater
Nov 19, 2019

Confidential and/or proprietary. Not to be copied to third parties. © Copyright Corporater AS - All rights reserved.
2
Human decision making
The missing piece in your BI&A architecture
One of the more striking findings in this year’s
survey was the fact that – despite billions of
dollars of investment and priority positioning
on the C-suite agenda – the gap between
the information CEOs need and what they
get has not closed in the past ten years.
– PwC 22nd Annual Global CEO Survey
“

3
A Practical Guide
for Improving
Communication
and Getting What
You Want

The two worlds
Man/Machine
GRC
Management
Strategy
Corporate
Performance
Employee
Wellness
Innovation
+
+
+

5
Decision Making Environment
Levels of Decisions | Taxonomy of decision-making
Core
Requirement
Nature of
Decision
Who
Strategic
Planning
Long term,
unstructured
Humans
Management
Control
Shorter term,
semi-structured
Humans
Operational
Control
Short term,
structured
Humans and
machines
Process
Control
Pure
Classification
Machines
Executive
Operational
Transactional
Top/Mid-Level

6
AI is not new
6

7
AI/Machine Learning – 56 years later
Areas where AI/Machine learning is playing an important role
Recommendation
Systems
Voice
Assistants
Churn
Prediction
Scoring Models
Predictive
Maintenance/
Autonomous driving

8
AI/Machine Learning – Classification
Better than humans in classifying images
Image net >14 million imagesComputers are better at classifying images than humans

9
AI/Machine Learning – Limitations

10

11
AI/Machine Learning – Limitations
Where is the road? | Even the term “road” is not clearly defined
Source: Daniel Langkilde

12
Decision Making Environment
Levels of Decisions | Taxonomy of decision-making
Core
Requirement
Nature of
Decision
Who
Strategic
Planning
Long term,
unstructured
Humans
Management
Control
Shorter term,
semi-structured
Humans
Operational
Control
Short term,
structured
Humans and
machines
Process
Control
Pure
Classification
Machines
Executive
Operational
Transactional
Top/Mid-Level

13
Human Decision Making
Let’s take a look at the domains where humans make decisions
Executive
Top/Mid-Level
Finance GRC QC Sales HR Operations ITPortfolio
D A T A
Strategy

14
Human decision making
What do I need?

15
Processes
Trigger Stored
procedures
ToolsSolutions
Agility and inconsistency Structure and consistency
Human
decision making Today’s Architecture
INTERACTION
Relations
Language
Business Data
Formula
Master data
Metadata
Data Data model
Logic/
calculations

16
Tools
Solutions
GAP
Solutions vs. Tools

17
Tool for data
consolidation
DATA
Gain insight
from data
INSIGHT+
Make better
business decisions
BUSINESS
CONTEXT
+
And plan and execute
on the decisions made
PLANNING+ EXECUTION+
Generate
Business
Outcome
= IMPACT
Managerial Decision Making EnvironmentWe need to add a
Formula for Business Outcome
Does our architecture give access to tools, or are you delivering
solutions supporting the formula for Business Outcome?

18
Core
Requirement
Strategic
Planning
Management
Control
Operational
Control
Process
Control
DATA INSIGHT
BUSINESS
CONTEXT
PLANNING EXECUTION
Transactional
real time data
Alarms/
Decision/ Rule
Engine based
on AI
ID/ Location/
TAG/ VR-
Classify in a
specific
domain
No planning.
Operate. Pre-
programmed
actions
PLS/
Automation
Operational
process data/
Big Data
Pattern/ AI/
CEP
Drawings and
maps
Operational
Plans
IBPM
Higher level
business data
Qualitative
assessments
and
quantitative
trends
Business
frameworks
Functional
goal based
plans
Workflow
Executive
dashboards
Recommenda-
tions with high
level
background
Strategic plan
Strategic
planning/
goals
Management
meetings
Operational
Transactional
Managerial Decision Making Environment
Executive
Top/Mid-Level
Levels of Management | Different reporting needs for different levels of management

19
Processes
Trigger Stored
procedures
ToolsSolutions
INTERACTION
Relations
Language
Business Data
Formula
Master data
Metadata
Data Data model
Logic/
calculations
Human

20
Trigger Stored
procedures
Processes
Processes and
business rules

21
A typical process that BI&A needs to support
Executive
Top/Mid-Level
Operational
Eg. Project – cross “silos”

22
Human Decision Making - cross domains
Executive
Top/Mid-Level
Operational
A typical example from the CXO world
Finance GRCHR Portfolio
Strategy
PLANNING
Where are we going as a company?
What are our goals?
How do we get there?
Do we need to start a program –
Digitalization program?
What are the criteria for deciding
this?
How much money are we
requesting?
What is the payback?
What is the risk?
What is our capacity?
Do we have the right competence?
In which order should we start the
various projects?
Are there any project charters/
handbook/ policies we should
follow when doing the projects?

23
Human Decision Making - cross domains
Executive
Top/Mid-Level
Operational
A typical example from the CXO world
Finance GRCHR Portfolio
Strategy
EXECUTION
Where are we with regards to
our projects and portfolio?
What is our spending?
What is our risk profile?
What are our priorities?
Will we make it?
Are we complying with our
project management handbook?
REVIEW
How did it go?
Did we achieve our goals?
Did we achieve our anticipated
benefits?
What did we learn?
What do we have to do
different next time?

24
 If this KPI goes below X – call for meeting
 If deviation is more than 5% – update prognosis
 If Risk assessment has not been performed last 6 months – call to action
 If underperformance – explain
 If consistency in underperformance – take actions
 Every 6 months – do an audit
CXO Management Automation
Business Rules
Beyond triggers and stored procedures

25
Facilitate meetings
Plan
Classify
Assess
Evaluate
Approve
Document
Inform
Assure
Review
Execute
Prioritize
Score
Alert/warn
Start/ act
CXO Architecture
It’s a new way of working – Interactive – Dynamic

26
Full of
action-
oriented
commands:
 Add
 Upload
 Download
 Comment
 Update
 Delete
 Check
 Start
 Send
 Invite
 Delegate FOR ILLUSTRATION
PURPOSES ONLY
MEETING FACILITATION

27
Master data
Metadata
Language
Do you support
the CXO language?

28
Compliance
Porter’s5Forces
Managementbyobjectives
Businessmodelcanvas
BarrierManagement
MalcomBaldrige
Balanced Scorecard
BPR
EFQM
COSO
GDPR7S framework
GE/ McKinsey nine box matrix
Deming Quality
FinancialPlanning
FinancialBudgeting
FinancialModeling
OKR’s
Strategic review
STRATEX/ Target setting
Cash planning
Revenue planning
Profit management
Pillar 1, 2
Solvency
Regulatory requirements
Strategic review
Strategic Initiatives
7S framework
OKRs
Malcom Baldrige
CXO lives in a domain of Business Frameworks
Product
Product ID
Size
Factory
Machine
Time
Unit
QA checked
Price
Rate
Currency
Value
Volume
Weight
Address
Data and
metadata
you will find
in a DWH/ lake
CXO
Business World
Transactional/operational
- Often system generated data -
Business
Frameworks
Business
Terms
Focus
Descriptors
Who
Why
What
When
Where
How
Strategy maps
Perspective
Objective
Owner
Sponsor
Mark for meeting
Flag
KPI
Task
++
Business language vs. system language

29
CXO
Business World
Descriptive,
free form nature,
telling the story,
connecting the
“dots”. Classification
Fact based,
structured,
tables, columns,
rows
CXO lives in a domain of Business Frameworks
Business language vs. system language
Transactional/operational
- Often system generated data -

30
Executive
Operational
Transactional
Top/Mid-Level
CXO
Business
Metadata
Operational,
Transactional
Metadata
???

31
Processes
Trigger Stored
procedures
ToolsSolutions
INTERACTION
Relations
Language
Business Data
Formula
Master data
Metadata
Data Data model
Logic/
calculations
Human

32
Logic/
calculations
Formula
How do we support them in
expressing logic/ calculations?

33
Why do all spreadsheet have
“additional calculations”
SELECT u.users
(count(*)*.5)+
count(*)+
(count(*)*2totalcore
FROM users as u
LEFT JOIN COMMENTS as c
ON u.user_id = c_user_id
LEFT JOIN RATINGS as r
ON r.user_id = u.user_id
LEFT JION ITEM as i
ON i.user_id = u.user_id
GROUP BY u.user_id
ORDER by totalcore DESC

34
Processes
Trigger Stored
procedures
ToolsSolutions
INTERACTION
Relations
Language
Business Data
Formula
Master data
Metadata
Data Data model
Logic/
calculations
Human

35
Data
Business
Data
Data is more than
numbers

36
 Report based
 Filter/ query
based
 Quantitative in
its nature
 Not suited for
top level
management
Quantitative
Report NameFilters
A typical analytical dashboard
Main functions
FOR ILLUSTRATION
PURPOSES ONLY

37
Orchestration
communicating
the strategy
through
storytelling
FOR ILLUSTRATION
PURPOSES ONLY

38
High Level
Insight
Assessment
Alignment
Description
VARIOUS BUSINESS DATA/METADATA
FOR ILLUSTRATION
PURPOSES ONLY
Business meta data –
business framework
Initiaitves
KPI in
context

39
Voting
Images
DATA COLLECTION
FOR ILLUSTRATION
PURPOSES ONLY

40
Processes
Trigger Stored
procedures
ToolsSolutions
INTERACTION
Relations
Language
Business Data
Formula
Master data
Metadata
Data Data model
Logic/
calculations
Human

41
Data modelRelations
Everything is
connected

42
From silo to connected

43
Easy navigation
(visual navigation)
Value driver
trees
CAUSE AND EFFECT – LOGICAL DIAGRAMS
FOR ILLUSTRATION
PURPOSES ONLY

44
SPOT ISSUES
FOR ILLUSTRATION
PURPOSES ONLY

45
CONNECTING THE INSIGHT FROM THE OPERATIONAL DOMAIN
FOR ILLUSTRATION
PURPOSES ONLY

46
Processes
Trigger Stored
procedures
ToolsSolutions
INTERACTION
Relations
Language
Business Data
Formula
Master data
Metadata
Data Data model
Logic/
calculations
Human

47
There is always
an exception

48
 The software industry has made
software for the perfect world, however
things don’t always work out as planned
 The world is full of exceptions. Things
change and evolve, and so do company
plans, objectives, strategy, and goals.
 Having a “perfect world” locked-down
solution doesn’t allow for modifications,
which results in frustrations and costly
workarounds
Exception is the rule!
Business Solutions
Decoded

49
Summary
The missing piece in your BI&A architecture
 Most companies are failing serving the CXO level
 Architecture is different
 Less structure
 Another language
 “Hyper agile”
 BI&A is not the business – it is a domain to be applied to business
 Cross domain architecture
 Data + Insight + Context + Plan + Execute = Business Outcome

50
What now? Is there hope?
Executive
Top/Mid-Level
Operational
Transactional
Solutions
Agility and inconsistency
Trigger Stored
procedures
Tools
Structure and consistency
Master data
Metadata
Data
Data model
Logic/ calculations
Challenges Domains Frameworks
Processes
Relations
Language
Business
Data
Formula

51
One view. One platform.
BUSINESS MANAGEMENT
PLATFORM
“No code” platform trusted by
the world’s leading brands.
Integrates with leading BI&A
platforms
CORPORATER
51

52
OURPLATFORM
GOVERNANCE
RISK
PERFORMANCE
COMPLIANCE
PG
R C
Business Integrity
Monitoring
IT & Information
Security Management
Data & Information
Governance
Assurance
Strategy
Management
GPRC Dashboards
x
Corporate Performance
Management
Employee Performance
Management
Project & Portfolio
Management
KPIs, Dashboards,
and Analytics
Enterprise
Risk Management
Operational & IT
Risk Management
Project & Portfolio
Risk Management
Barrier & Hazard
Risk Management
KRIs, Dashboards,
and Analytics
Integrated
Risk Management
Individual Accountability
& Conduct
Audit Quality Management
Information & Cyber Security /
Data Privacy
Anti-Money Laundering
& Counter Terrorist
Financing
Financial Reporting
Sustainability
ISO Standards

53
Business Integrity
Monitoring
IT & Information
Security
Management
Data & Information
Governance
Assurance
Strategy
Management
 Balanced Scorecard
Software
 Strategic Planning and
Initiatives
GPRC Dashboards
Corporate
Performance
Management
 Financial Planning,
Forecasting, and
Budgeting
 Corporate Reporting
Employee
Performance
Management
Project & Portfolio
Management
 Investment Portfolio
Management Software
 Portfolio Management
Software
KPIs, Dashboards,
and Analytics
 KPI Software
 BI and Analytics
Enterprise
Risk Management
Operational & IT
Risk Management
Project & Portfolio
Risk Management
Barrier & Hazard
Risk Management
KRIs, Dashboards,
and Analytics
Integrated
Risk Management
 Digital Risk Management
 Incident Management
 3rd Party Risk Mgmt.
 Corporate Compliance &
Oversight
 Audit Management
 Business Continuity Mgmt.
Anti-Money Laundering
& Counter Terrorist
Financing
 AML/KYC
Financial Reporting
 SOX
Sustainability
 ESG
 EHS
ISO Standards
 ISO 9001 (Quality Management)
 ISO 14001 (Environmental Mgmt.)
 ISO 22000 (Food Safety Mgmt.)
 ISO 20000 (IT Service Mgmt.)
 ISO 22301 (Business Continuity)
 ISO 26000 (Sustainability)
 ISO 27001 (Information Security)
 ISO 27005 (Risk Management)
 ISO 27014 (InfoSec Governance)
 ISO 31000 (Risk Management)
 ISO 37001 (Anti-Bribery &
Corruption)
 ISO 45001 (HSE)
Individual
Accountability
& Conduct
 SMCR (UK)
 MICR/MAI (Hong Kong)
 BEAR (Australia)
 MAS (Singapore)
 MAFC (France)
 Banking Act (Germany)
 FINRA, SEC, FRB (USA)
Audit Quality
Management
 ISQM
Information &
Cyber Security /
Data Privacy
 NESA IAS (ME)
 NIST CSF (USA)
 FISMA (USA)
 ENISA (EU)
 GDPR (EU)
 POPI (South Africa)
 HIPAA (USA)
 Security Act (Norway)
GOVERNANCE RISKPERFORMANCE COMPLIANCE

54
Come and see us at our booth

Tor Inge Vasshus
CEO
vasshus@corporater.com
+47 41 53 40 50
www.corporater.com
Thank you

CEO / CXO Architecture - The missing piece in your BI&A architecture

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