Business IntelligenceBusiness IntelligenceSusan Doniz FirkaSusan Doniz Firka

Associate Director Business Associate Director Business IntelligenceIntelligence

Procter & Gamble Procter & Gamble

AgendaAgenda

WhatWhat is BI? is BI?

WhyWhy BI? BI?

HowHow is BI being used in industries? is BI being used in industries?

WhereWhere are the challenges? are the challenges?

Q&AQ&A

What is Business Intelligence?What is Business Intelligence?

DATADATA

KNOWLEDGE KNOWLEDGE

ACTIONACTION

How does it work?How does it work? Executive

Causal Measures of KPIsCausal Measures of KPIs

Strategies & Best PractisesStrategies & Best Practises

Key Performance Indicators (KPIs)Key Performance Indicators (KPIs)

Seamless link

Ad Hoc

ObjectivesObjectives

Transactional ReportingSeamless link

Operational

Detect

Explain

Prework requiredPrework required

Streamlined Processes

Timely & Complete Info.

Simple & Intuitive Tools

Intelligence Engines

Simple & Intuitive Tools Simple & Intuitive Tools DashboardsDashboards

Provide “One-Stop Shopping” to deliver key Provide “One-Stop Shopping” to deliver key information to decision-makersinformation to decision-makersSimple Graphical interface to flag issues & opportunitiesSimple Graphical interface to flag issues & opportunities

Role-based information and modulesRole-based information and modules

Eliminate information clutter by eliminating “in-control” Eliminate information clutter by eliminating “in-control” datadata

Information week 2006

Why invest in BI?Why invest in BI?BottomlineBottomline

81% Executives81% Executives22 state that timely, high state that timely, high quality easy to access data would increase quality easy to access data would increase profitsprofits

23% of companies use causal models23% of companies use causal models1: 1: Of Of those Return on Equity and Assets are 5 & those Return on Equity and Assets are 5 & 3% more respectively of those that do not 3% more respectively of those that do not use causal modelsuse causal models

1 Harvard Business Review Survey2 CIO Insight

Predictive Business ManagementPredictive Business Management

“Rear-ViewMirror” Driving

“Windshield-View”

Driving

“Jedi-like” Driving (React before

it Happens

Hurricane Hurricane PredictionPrediction

““A hurricane just A hurricane just hit..” …circa hit..” …circa 19001900

““We predict a hurricane We predict a hurricane will hit the North will hit the North Carolina coast in 48 to Carolina coast in 48 to 72 hours.”72 hours.”… circa 1965… circa 1965

““We predict that 10 We predict that 10 hurricanes will hit the hurricanes will hit the Atlantic coast next year. Atlantic coast next year. Here are the approx. Here are the approx. dates and strengths for dates and strengths for each.”each.” … circa 2004 … circa 2004

Business Business MgmtMgmt

Explain React Predict

Reporting What

Happened?

Focus on Key Business Drivers

Predict the Future & Act

Predictive Business ManagementPredictive Business Management

“Rear-ViewMirror” Driving

“Windshield-View”

Driving

“Jedi-like” Driving (React before

it Happens

Hurricane Hurricane PredictionPrediction

““A hurricane just A hurricane just hit..” …circa hit..” …circa 19001900

““We predict a hurricane We predict a hurricane will hit the North will hit the North Carolina coast in 48 to Carolina coast in 48 to 72 hours.”72 hours.”… circa 1965… circa 1965

““We predict that 10 We predict that 10 hurricanes will hit the hurricanes will hit the Atlantic coast next year. Atlantic coast next year. Here are the approx. Here are the approx. dates and strengths for dates and strengths for each.”each.” … circa 2004 … circa 2004

Business Business MgmtMgmt

““We missed our We missed our forecast due to a forecast due to a $20MM hit from $20MM hit from FPLC.”FPLC.”

““Looking at our initiative Looking at our initiative pipeline, we do not have pipeline, we do not have sufficient volume to sufficient volume to meet our FY05/06 profit meet our FY05/06 profit goals.”goals.”

““We can act and We can act and respond proactively to respond proactively to events because we see events because we see indications of what will indications of what will happen next year.”happen next year.”

Explain React Predict

Reporting What

Happened?

Focus on Key Business Drivers

Predict the Future & Act

BenefitsBenefits

Power user community freed up …Power user community freed up …… from the mundane and enabled to leverage their intellect and … from the mundane and enabled to leverage their intellect and experience in discovering knowledge and solid strategies.experience in discovering knowledge and solid strategies.

Corporate IQ grows …Corporate IQ grows ……as intelligence building ways are captured and propagated …as intelligence building ways are captured and propagated across company and knowledge is preserved across company and knowledge is preserved

Decision makers attention gets focused …Decision makers attention gets focused …… on the few areas where the biggest problem or opportunity … on the few areas where the biggest problem or opportunity exists despite of the future “raw” data complexity explosionexists despite of the future “raw” data complexity explosion

How Business use BI scorecardsHow Business use BI scorecards

Information week 2006

Example: ScorecardsExample: Scorecards

Key Business Drivers Key Business Drivers Dashboard ExampleDashboard Example

1. Executive looks at OGSM measures on their Cockpit in portal1. Executive looks at OGSM measures on their Cockpit in portal OGSM Measures

Volume 107

NOS +3%

Share 35

Profit +6%

TSR +18%

Position +3%

EPS $3.91

!

! Details

Details

Details

Details

Details

2. Double-click on profit 2. Double-click on profit shows that Realization/SU shows that Realization/SU

is the issueis the issue

Realization/$

Volume

Realization/SU

GBU Profit Drivers VOLUME [MSU] GLOBAL F&HC FABRIC&HOME CARE

130000.0

140000.0

150000.0

160000.0

170000.0

180000.0

190000.0

200000.0

210000.0

Q1-99/00

Q2-99/00

Q3-99/00

Q4-99/00

Q1-00/01

Q2-00/01

Q3-00/01

Q4-00/01

Q1-01/02

Q2-01/02

Q3-01/02

Q4-01/02

Q1-02/03

Q2-02/03

Q3-02/03

Q4-02/03

Q1-03/04S&OP

Q2-03/04S&OP

Actuals

Average

UCL

LCL

3. Double-click on 3. Double-click on Real/SU shows the Real/SU shows the

control chart.control chart.

Ease of Use/Skill DevelopmentEase of Use/Skill Development

Critical to define the ‘WHO’ :Critical to define the ‘WHO’ :Prime Prospect UserPrime Prospect User

Use of KPIsUse of KPIs

Data QualityData Quality

Start with KPIsStart with KPIs

Amount of data/standardization of dataAmount of data/standardization of data

High Level endorsement of Single version High Level endorsement of Single version of the truth and Reward systems of the truth and Reward systems

Garbage in = Garbage outGarbage in = Garbage out

Challenge : ROIChallenge : ROI

BrandManagement

TransformationValue

Greater productivityBetter decisions

Drive InternalEfficiencies

IncreasedExternalSuccess

1. Run goingbusiness on

Autopilot

2. Drive downinternal budgets

4. Anticipate &respond better &

faster

5. Increase InitiativeSuccess

6. Become mostsuccessful HairCare company

Eliminate redundant work-processes

Reduce/eliminate unnecessarycosts & spending

React to market changes andbusiness needs faster

Design more successfulinitiatives

Drive TSR through increasedProfit & NOS

3. Accelerate speedof decisions

Streamline internal decisionprocesses

LowerCosts

IncreaseSpeed

IncreaseQuality

Who are the leaders in the BI space?Who are the leaders in the BI space?

Questions?Questions?