Post on 01-Nov-2014
description
Business Intelligence (BI) Vision and Strategy
Sample Executive Summary
Background
• Instigated by CIO, Enterprise architecture set-up a terms of reference and asked for Business support to set-up a project team
Business Intelligence is not just Reporting• BI now – “Insight instead of Hindsight”
Capabilities of BI
Where we are now: Current Business Intelligence Competencies in <Your Company>
Your Company
Business Unit 1 Business Unit 2
Dept X
Business Unit 3
BI Manager and Team
Corporate Centre
Group Finance
Shared Service
HR
IT
Give a BI Competency Commentary for each business unit
Give a BI Competency Commentary for Shared Services
and IT
e.g. Financial reporting in can be very labour intensive
and there is an over reliance in Excel!
Where we are now:How much is this costing <your company>
• Include current IT Spend in BI• Any financial and HR reviews that quantified the
labour resource time doing reporting and analysis• Any products purchased by a specific BU and used by
that Business Unit only ( ideally one that the BU would be happy to get rid of!)
• How much time are people spending in Excel!
Looking forward: Many Initiatives requiring Business Intelligence
To handle these demands we need a BI Strategy for efficient and cost
effective delivery.Lets look to external best practice..
BI Demands
Propose A Vision : Example….
*
*BICC: Business Intelligence Competency Center Gartner
Where are we now ?
?
?
?
?
?
Next : Need get the basics right across the whole
company
Corporate Performance Management
Vision: Need to implement a BICCWhere are we going?
Corporate Performance Management requires a long journey and a serious investment
Corporate Metrics Framework
People
Processes
Data
Benefits
Requires largeinvestment
BICC
Is this too ambitious to achieve right now? Organisational changes and significant investment required. Business Units
would have concerns about losing autonomy
Business Intelligence Vision
Better BI Systems
More BI End-User
Capabilities
Better Productivity
and Capability
Implementation of Common BI Platform
Implementation of BICC
Better Collaboration
between Business and IT
Reduces the Business-IT Information
Gap
More Efficiency and Less
Data Quality Issues
BI Maturity
1.
2.
Getting the Basics Right: Provision of better BI and reporting capabilities allow non-IT staff to create reports themselves without needing IT. IT can focus their efforts in data compliance and generating critical reports for BUs. This will provide better use of business AND IT resources going forward.
Focus on harnessing our staff to develop the appropriate skills to be able to leverage this tools and to be better organised to handle the demand for business intelligence in the future. Also develop efficiencies in how BU and IT interact
Corporate Performance Management
COMMON BI PLATFORMStep 1 : GETTING THE BASICS RIGHT
Better BI Systems
More BI End-User
Capabilities
Better Productivity
and Capability
Implementation of Common BI Platform
Getting the basics right: Lack of BI Self Service capability, incurring high IT Costs
I have a question to
answer
My existing reports do not give me that
answer - I need a new report
Time spent defining
requirements with IT
Time spent developing
Report
Time spentTested report and verifying
data
The report raises another
question
Getting the basics right: Lack of BI Self Service capability, incurring high IT Costs
• Recommendations• IT to concentrate on reports that do not change often and are critical• IT to provide a more visual means of delivering reports and reduce the amount
of “Excelisation” of Warehouse data.• For the rest of the reports, need to Empower Business Users to create their
own reports, within the environment instead of outside the environment (Excel) by the deployment of BI Self Service Capabilities.
Getting the basics right :Help move staff up the BI value chain
How are we doing?
Are we compliant?
Why is my business performing this way?
How will my business perform in the future?
What would happen to our business if I make a particular change?
How can I best change my business model gain further competitive advantage?
65%
30%
5%
Value
Est. Time spent
Reporting
Analysis
ModellingAnd Analytics
• Recommendations• Need to increase skills in Modelling and Analytical to gain greater value of BI in
<Your Company>.
The Process of Management Reporting
• Staff, extract data from ERP and other systems on a monthly basis
• Using Excel, tables and charts are produced
Report data Inserted into Word with some commentary and Emailed to SMT
1 2
3
Report Creation Email Dissemination
Presentation created and presented to SMT
4
Presentation
Question is Asked
A member of the SMT asks a question about the report
5Question is Answered
Staff , using Excel and ERP spend time analysing data and finds answer to question.
Answer is added to report for next month
Report gets bigger
A new way of Management Reporting?
• The “How are we doing?” report , developed with IT is run in Data warehouse .
• This report will help us answer “Are we compliant?”
Report is emailed automatically to key stakeholders
1 2
3
Automated Report CreationEmail Dissemination
Analysts present a report with analysis to SMT
4Presentation
Analysis
A member of the SMT asks a question about the report or analysis
5 Question is Asked
Why is the business preforming this way?Analyst tries to do provide the
appropriate answers for the obvious questions
Automated
Why Questi
on
Analyst gets new Toolset to help provide
faster analysis
How will my business preform in the future?
What would happen to our business if I make a particular change?
How can I best change my business model gain further competitive advantage?
Modelling and Analytics6
Complex Question
IMPLEMENT A BICC IN THE BUSINESS SERVICES CENTER
Step 2
Implementation of BICC
Better Collaboration
between Business and IT
Reduces the Business-IT Information
Gap
More Efficiency and Less
Data Quality Issues
Business Intelligence Competency CentersPeople + Information = Intelligence
What is a BICC?
• What is a BICC?• A permanent, cross functional, formal
organisation structure that includes Business units and IT, to advance and promote effective use of business Intelligence to support the organisation’s business strategy (Infosys)
• Helps to• Business staff get a big picture of all the
systems used in a particular domain• Business increases their understanding
how the data is stored in their systems• IT to understand the business context of
the data• Overall improves Data Quality, Co-
ordination and Support
Gartner
How to Deploy BI across the Company
• The Problem
• Decentralised Approaches : Many business intelligence (BI) programs have departmental roots with analytical resources embedded in the business. This model worked well to service departmental needs, but lacked consistency of data definitions and measures across the organization.
• Centralised Approaches : Often, the IT organization stepped in to solve this inconsistency problem by establishing a central team to deliver BI. However, this overly centralized model lacks the agility and familiarity of the de-centralized model.
• The Solution – Gartner’s “Think Global – Act Local”
• Create an organizational model that balances centralized technology and architecture with a decentralized delivery and support model.
• Develop strong, two-way collaboration between the centralized BI team and the local delivery teams embedded in the business units
Creation of a BICCRecommendation : Creation of a new BICC reporting to Shared
Services Manager that will support and manage a new BI ServiceBI Role Global BICC Business Units
(Local BICC)
Business Domain Expertise
HR, Finance Relevant BU Domains – e.g. Customer, Sales, Marketing etc..
BI Power Users Yes Yes
BI Analysts Yes Yes
Mathematician/ Statistician
Yes Yes
IT Developers Yes Issues and Options to be explored
SO WHAT DOES THIS MEAN?Conclusion
Impacts of BI Strategy to Business Units
Key Impacts
• Empower Business Users with better tools to increase productivity and provide a more cost effective use of BI
• IT to provide better support for data management for Modelling and Analytics
• Utilising better BI tools to visualise and view reports
• Power Users can build their own reports without going to IT
• Using Analysis Tools instead of Excel
Impacts of BI Strategy to Business Units
Key Impacts
• Empower Business Users with better tools to increase productivity and provide a more cost effective use of BI
• IT to provide better support for data management for Modelling and Analytics
Focus on Compliance, use of Data-marts to support Modelling and Analytics
Data-martInputs
Model
Outputs
Impacts to IT - Implement Common BI Platform (€K)
• Hardware and Software Licensing • Self Service BI
• CAPEX : €K, OPEX : €K
– Better Data Management and integrity by the use of Data-marts
• CAPEX : €K, OPEX : €K
– Better Analysis Product Set• CAPEX : €K, OPEX : €K
• Implementation including Installation, Deployment, training and Proof of Concepts
Recommendations• Implement Common BI Platform
– Approve in principal the expenditure for a CIO sponsored project to deploy a more capable, agile and compliant IT BI platform, to provide common BI capabilities to all business units. This expenditure has been agreed in principal with the working group.
• Agreement on the creation of a BICC– Agree that the concept of an HR and Finance BICC should be included into the
plans of Shared Services. Need to work with the Business Units to agree how this BICC could work.
• Consider Corporate Performance Management in the future– Review in 2-3 years how best to move to the next step of implementing Corporate
Performance Management