IBM Business Consulting Services

iAnalytics (Business Intelligence)

Wednesday, October 9, 2002

Discussion Topics iAnalytics – What is it?

Public Sector perspective–A provincial case study –Results for Canadians

Questions and Answers

Context

Over ten years ago, the ERP/back-office transaction systems constituted the first wave of large-scale IT investment

Next were Year 2K initiatives, paralleled by Data Warehousing and CRM/front-office applications

Integrated Analytics is the next wave aimed at unleashing the value contained within these past investments

Business Intelligence

Performance Management

BusinessOptimization

iAnalyticsiAnalytics

Business IntelligenceManagement

BusinessOptimization

iAnalytics

Performance

iAnalytics – It’s About Closing the Gap

Today’s solutions are successful in accessing data, and making it available to users, however…

…today’s solutions are not successful in directly linkinginformation to action, and its corresponding value

the gapData Action ValueInformation

Strategy Definition, Evaluation &

Communication

Financial Analytics

HR Analytics

Client Service Analytics (CRM)

Perf. Framework

ManagementProcesses

Strategic Planning Account. ContractsFeedback

Operational Planning

INTERNALCONSUMERS

EXTERNAL CONSUMERS

Performance Improvement

Tactics

PerformanceMonitoring

Executive

Management

Operational

Regulatory

OGDs, Partners

ClientsVendors

CO

MM

UN

ICA

TIO

NCO

LL

AB

OR

AT

ION

“Supply Chain” Analytics

iAnalytics – It’s About Closing the Gap

Integrated Performance Management

Solutions (IPM)

Advanced Analytics

Integrated Data & Information Solutions (IDIS)

Vis

ion

, In

teg

rate

d R

oad

map

& B

luep

rin

ts (

VIR

B)

Pro

gra

m M

anag

emen

t/O

ffic

e (P

MO

)

• PMO Design • Governance

Design & Implementation

• Benefits Planning & Realization

• Performance Measurement & Balanced Scorecard Solutions

• Integrated Planning, Forecasting & Budgeting• Business Performance Management• Process Measurement & Control

• Strategic Analytics• Financial Analytics• Customer Analytics• Supply Chain

Analytics• HR Analytics• IT Analytics

• Enterprise Info Quality Management • Data Transformation & Integration• Data Modeling• Database Management• ODS, Data Warehouse, Data Mart Solutions• Information Delivery Solutions• ERP/Packaged Solutions• Vendor Evaluation

• Vision & POV Development

• Capability Assessment

• Business case/value proposition

• Integration Roadmap

• Process Blueprint• Organizational

Blueprint• Technical Blueprint

A Public Sector Context

The realm of possibility– iAnalytics demonstration (U.S. federal department example)

–Note – intention is to do this demo on line (screen shots are only a fall back)

A Provincial Case Study –

Situation

Approach and Solution

The Way We Were

Lots of paper; no information Variety of applications and reporting tools with limited skill sets Desire to provide tools to enable financial accountability and:

Provide good (i.e. correct) useful information and a means of delivering it to enable managers to pinpoint problems

Enable managers to get information without going through IT shop

Built a ‘Proof of Concept’ generic template including a Oracle Fin’ls data mart, ETLs, data cubes, and reports for GL and Payables– IBM provided data, database, analysis experience, and methodologies

for rapid deployment using Oracle Financials– Cognos provided tools and DW expertise

Template customized with BCFC data Iterative demonstration/tailoring cycles to BCFC Users Application into production

A Provincial Case StudyKey Success Factors

Executive level and business buy in secured through use of prototypes and demonstrations

Tight scope control Involvement of trained BC Ferries staff

– Project Manager, User Group Developers, Testers Solid / expandable technical infrastructure

The Federal Agenda – Modern Comptrollership and Results-Based Management

Results for Canadians grounds performance measurement in:–shift of focus from activities/outputs to outcomes/results–clear, concise reporting of achievements–strong internal and external accountabilities–using performance information to take action

Modern Comptrollership underpinnings:– Integrated performance information –Sound approach to risk management–Appropriate control systems–Ethical practices and values

Key Business DriversMission

Strategic Goals

Strategic Objectives

Strategic Priorities

Increasingly, corporate plans reflect top-down, outcome-based strategic performance management frameworks but…– dots aren’t always connected– frameworks have not yet cascaded down

Management systems are generally not aligned– Lack of integrated financial and non-financial data

– Everyone is struggling with data – availability, timeliness, integrity Lack of “corporate” data architecture and metadata strategy Getting data out of the ERPs is difficult and requires

considerable “transformation”– Point solutions are being implemented to provide short term relief

Departments are procuring tools to solve performance (particularly financial) reporting challenges

Lessons Learned: To succeed, you’ll need…

Committed Leadership (at all levels)– Active involvement (not just verbal support)– Focal points (if everyone owns it… no one owns it)– Buy-in to goals and ways of way of measuring success– Accountability contracts aligned with performance targets

Trained Staff (especially Program Managers)– Understand concept of performance/results-based management– Primary “users” are actively engaged and understand where they fit

within the framework

Incentives to Use Performance Information– From top leadership down to front line employee– Measures make sense to staff throughout the organization linking

what employee does day-to-day with organizational goals

Range of Solutions

BUSINESS FOCUS

Top-down, integrated Performance Management Framework

Chart of Accounts Design

Systems Strategy

etc.

DISADVANTAGES:

Slow and expensive

Strong chance that changes will never occur

PROGRAM/POLICY FOCUS

(One-off) RMAF

TECHNOLOGY FOCUS

New Reporting Tools

(Enterprise) Data Warehouse

DISADVANTAGES:

Eliminates some symptoms but not root cause

Faster processing of flawed data

Won’t produce insight – long term vision

IDEAL SOLUTION

Develop long-term roadmap

Deliver incrementally with quick wins

Technology-enabled

Address data quality

Change some processes

Continuous improvement

COMPLETE POINT SOLUTIONS

Lessons Learned: The biggest challenge is balancing speed and completeness

Questions and Answers

?