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Hvordan sikres (mere) værdi af

Business Intelligence projekter? JORGEN.STEINES@PLATON.NET

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© Platon

● A leading Independent Information Management consulting company

● Headquarters in Copenhagen, Denmark

● 220+ employees in 9 offices

● 300+ clients in 8 countries

● Founded in 1999

● Employee-owned company

Platon – The Company

“Platon received good feedback in our satisfaction survey. Clients cited the following strengths: experience and skill of consultants, business focus and the ability to remain focused on the needs of

the client, and a strong methodological approach”

Gartner July 2008

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• Fokus på Business Intelligence og Master Data Management

• Unikke internationale eksperter

• Netværksreception med underholdning af Jonatan Spang

• Afsluttende netværksmiddag

Vi glæder os til at se dig og dine kollegaer d. 12. oktober 2011.

Nordens største Information Management konference: Keynote:

JAMES TAYLOR

Vi er stolte over at annoncere årets

keynote-taler: én af de største Business

Intelligence-guruer hele vejen fra San

Francisco i USA. James er en ledende

ekspert og forfatter indenfor regelbaseret

beslutningsstøtte (Decision Management

& Predective Analytics) og en anderkendt

keynote-taler ved diverse globale

konferencer.

28 unikke præsentationer, bl.a:

Book allerede datoen i din kalender i dag!

Du kan følge udviklingen af programmet på

www.IM2011.net.

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Agenda

● What is BI

● BI Governance

● BI Adoption

● BI requirement specification

● Summing up

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Data Warehouse & Business

Intelligence

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Analytical

applications

OLAP

Data

Mining

Enterprise

reporting

Business Intelligence ?!?

Data

Warehouse

The term Business Intelligence (BI) covers

the use of information to drive business

insight.

Basically it‟s about providing a better

foundation for decision makers by providing

information in the right form, in the right

quality, at the right time.

The term Data Warehouse covers the management of data

Data is extracted from operational systems and integrated in the Data Warehouse environment in order to provide an

enterprise wide perspective, one version of the truth.

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Drivers for Business Intelligence

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Procurement

Production and logistics

Sales

Service

HR Many types of employees

High employee turnover

Bad employee satisfaction

Decreasing competencies

Need for collaboration

. . .

Marketing Decreasing market share

Missing cross/up-sales Bad campaign response

Slow time to market

CRM aspirations

. . .

IT Heterogeneous infrastructure

Data quality issues Reporting back-log

Project delivery issues

. . .

Finance Cash flow problems

Low profitability

Losses on debts receivable

Inflexible planning process

CPM aspirations

. . .

CEO Low profitability

Decreasing market share Slow reaction to threats and opportunities

Challenges implementing business strategy Challenges with mergers

. . .

Falling revenue

Missing cross/up sales

Increasing COGS

Missed opportunities

Bad forecasting

Decreasing prices

Complex markets

. . .

Bad customer satisfaction

Increasing response time

More complaints

Random service levels

. . .

Quality issues

Falling service levels

Increasing lead time

Rising inventory levels

Resource bottlenecks

Increasing distribution costs

Inefficient processes

Extended value chain aspirations

Process outsourcing

Just-in-time aspirations

. . .

Unattractive prices

Bad service levels

Lack of supplier insight

Lack of market insight

Rising stock levels

. . .

The

Multidimensional

Manager:

”24 Ways to Impact your Bottom Line in 90 days”

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An example

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● It is estimated that 10% of all insurance claims are attempts to fraud

● For Codan this equals 400 mill. DKR per year

Predictive analytics

Codan - Fraud

Insurance claim - collect information

Standard case

Loss consultant

investigates

??

Insurance claim - collect information

Standard case

Loss consultant

investigates

Risk of fraud is predicted

through a

data mining tool

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Predictive analytics

Codan - Pricing

Old model – postal codes New model – 100 x 100 meter cells

Low risk

High risk

• Several parameters to determine the risk

• Only a few from the customer

• The rest is based on data

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Agenda

● What is BI

● BI Governance

● BI Adoption

● BI requirement specification

● Summing up

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IT Governance

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IT Governance: Specifying the decision rights and

accountability framework to encourage desirable

behavior in the use of IT

Governance Corporate governance

● The opposite of Governance: Anarchy (from Greek: ἀναρχίᾱ anarchíā, "without ruler“)

● "No rulership or enforced authority.”

● "Absence or non-recognition of authority and order in any given sphere.”

● "Act[ing] without waiting for instructions or official permission... The root of anarchism is the single impulse to do it yourself: everything else follows from this.”

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BI Governance

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BI Governance is the framework and processes for

determining the priorities, deployment practices, and

business value of enterprise business intelligence initiatives.

How do we get exe-

cutive level awareness

and support?

How do we resolve

conflicting interests?

Who decides what to

work on next?

How can we be more

proactive and

anticipate changing

business needs?

How do we quantify

and track the values of

our BI investments?

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BI Governance

- Business and IT standpoints

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Business Innovation

Flexibility

Responsiveness

Train

Users

Recommend

Actions

Analyze

information DBA

Develop

ETL

Data

modelling

Requirement

Specs

Design

Front end Develop

reports

User

support

Execute

Bus. Proc.

Standards

for reporting

IT

Cost effectiveness

Operational efficiency

Reliability Scalability

BICC

IT

DW Business

unit

Business

unit

Business

unit

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BI Governance

- Organisational structure

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Program Board

Coordinate & prioritize

Coordinate & prioritize

Program level

Project C

Steering Committee

Project B

Steering Committee

Project A

Steering Committee

Project level

Operation level

BICC DW

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IT Governance

Infrastructure and

operational applications

BI Governance

Business performance

and decision support

Governance relationships

Data Governance

Information quality

and processes

● The purist would claim they are independent

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IT Governance

Data Governance BI Governance

Infrastructure

and operational applications

Information quality

and processes Business performance

and decision support

Business strategy alignment

Legal compliance

Knowledge management

Project portfolio management

Service Level Agreements

Governance relationships

Business value tracking

…

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Step 1: Define the governance

level of the BI Program

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BI Methodology

BI Policies

BI Organisation

Common Data Definitions

BI Tools & Systems

One way Ad hoc Degree of federation

BI Architectures

BI Project prioritization

Step 1: Define the governance level of the BI Program

Step 2: Identify decision making ‟bodies‟

Step 3: Define decision areas and decision rights

Step 4: Design and implement governance processes

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Agenda

● What is BI

● BI Governance

● BI Adoption

● BI requirement specification

● Summing up

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What can drive better

deployment and adoption

Better BI adoption

Strategy clarification

Focus on usage

Organisational Change

Management

Communication, marketing and

branding

Other

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Change Management

I can not live

without my

Excel sheets.

Let‟s build

it and they

will come.

We earn

money

anyway.

The users

The managers

The BI people

I need my own

definitions. I don‟t want my

results to be

visible for all.

We know

what they

need.

Similar to ERP implementations?

The successful companies focuses 70 % of

the implementation resources on processes,

education and other soft aspects and only 30

% on technology

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● Branding…

● Provides a single identity when communicating about your BI Program

● Differentiates your „product‟ from other choices

● Create a logo

● Use it on reports, the intranet and all communications like newsletters,

status reports, presentations etc.

● Extend your brand through report certification

● A process of promoting a report to a mass audience

● Further drives the data integrity of your BI program and builds user

confidence

● Creates a adoption effect as management only wants to view reports

that have been branded and/or certified

Communication, marketing and

branding

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Agenda

● What is BI

● BI Governance

● BI Adoption

● BI requirement specification

● Summing up

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Does this look familiar?

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Analysis Design Development Implementation

Increasing costs to fix defects

discovered later due to

incorrect requirements

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BI solution types

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Dashboards / cockpits

Predictive analytics / data mining

Ad hoc analytics / OLAP

Reporting

Alerts and exception

GIS and other visualization

Balanced scorecard

Performance management

Analytical CRM

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Types of (BI) requirements

● Business requirements

● Information requirements

● Functional requirements

● Detailed report / usage requirements

● Other requirements

● How about defining the business processes that apply the new

information to managerial actions?

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What is the business

need, pain or problem?

What business questions

do we need to answer?

What data is necessary to

answer those questions?

How do we need to use the

resulting information to

answer those questions?

All the other stuff – AKA non

functional requirements

Detailed layout etc

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David McCandless: The beauty of data visualization

Design inspiration

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The requirement specification

document – The simple version

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● Introduction

● Business requirements

● Business process requirements

● Information requirements

● Functional requirements

● Detailed report / usage req.

● Other requirements

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The requirement specification

document – The really simple

version

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The requirement specification

document – The expanded version

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● Executive summary

● Introduction

● Business requirements

● Business process requirements

● Information requirements

● Functional requirements

● Detailed report / usage req.

● Security requirements

● Performance requirements

● Operational requirements

● Migration requirements

● User doc. and training requirements

● Other requirements http://www.volere.co.uk/template.htm

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Business process requirements

● “Change” is the keyword

● Textual description is ok

● Or use a swim lane design where the workflow or supporting

instructions, procedures or use cases are changed

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Procedure

–Prioritize order based on

customer rating by… Use Case

–When the sales rep enters…

The system shows…

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Cover all information

requirements

● Ask, ask, ask…

● Explain and exemplify - with all stakeholders

● Facts

● Business rules

● Dimensions and hierarchies

● Value sets

● Timeliness

● How „fresh‟ should the data be (update frequency)

● Specific dates the new data is needed

● History

● How much calendar time should be covered

● How about changes in hierarchies - program requirement could be

type 2 SCD and project requirement could be type 1 SCD

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Does this look familiar?

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Perhaps some more structured techniques are needed?

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The process & methods

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Identify stakeholders

Clarify method of collecting

requirements

Plan and invite for meetings

Prepare and send material or mindset at

meeting

Conduct / collect

Consolidate / document

Validate/ prioritize

Update requirement

spec.

Send for review

Verify and sign off

● The sub activities for specification process is outlined in the figure

below.

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The process & methods

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Identify stakeholders

Clarify method of collecting

requirements

Plan and invite for meetings

Prepare and send material or mindset at

meeting

Conduct / collect

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BI and Agile development

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The effect of initial roll-out times

on project success

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BI Requirements

- Business and IT standpoints

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Innovation

Flexibility

Ease of use

Reliability Scalability

Accuracy

Correctness Speed

User Experience

BICC ?

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Pay attention to data quality

● Poor data quality is the second most common reason for BI

failure

● Data quality is a big risk

● Get a clear picture on data quality issues as early as

possible - during analysis or even before

● Don‟t wait until the development takes place

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Agenda

● What is BI

● BI Governance

● BI Adoption

● BI requirement specification

● Summing up

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© Platon

Summing up

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● Value comes from decisions and changed behavior – not

from providing reports

● Information requirements are key in all BI projects

● Make the right balance between time and perfection

● Expect change and expect to manage change