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Transcript of Business Intelligence and “U” Steve Gillard and Peter Radcliffe University of Minnesota Analysts...
Business Intelligence and “U”
Steve Gillard and Peter RadcliffeUniversity of Minnesota Analysts Group
July 3, 2008
What is Business Intelligence?
Business intelligence and analytics represents an integrated set of technologies and processes that use data to analyze and understand organizational performance
Note it is not just a piece of software you purchase and deploy, but involves people, policies, philosophy, and technology
Other similar terminology• In addition to business intelligence, a number
of other terms are used to describe a similar approach, such as:– Fact-based decision-making– Evidence-based decision-making– Data-informed decision-making– Business analytics (can be thought of as a subset
of BI)
• All of these concepts revolve around using facts or evidence as a basis for decisions, in place of exclusive reliance on instinct and experience
Foundations of Business Intelligence• Foundations of business intelligence outline
components that are the prerequisites to achieving effective data driven decision making throughout the University. Also illustrated here are interdependencies between parts of the model which come together to form the foundation of what leads to business intelligence framework.
• Elements of effective decision making include:– An organizational component– Infrastructure layer– Data layer– Operational layer– Strategic layer
Business Intelligence and Analytics• Business intelligence and analytics
represents an integrated set of technologies and processes that use data to analyze and understand organizational performance.
• Business Intelligence helps answer five questions1. What happened?2. What is happening?3. Why is it happening?4. What will happen?5. What do we want to have happen?
BI Tools
• Oracle/PeopleSoft/Hyperion
• Microsoft SQL Server
• “Homebrew” systems
• Many other vendors exist– Cognos, SAP, etc.
END USER TOOLS & PERFORMANCE MANAGEMENT APPS
ExcelExcel PerformancePoint PerformancePoint ServerServer
BI PLATFORM
SQL Server SQL Server Reporting ServicesReporting Services
SQL Server SQL Server Analysis ServicesAnalysis Services
SQL Server DBMSSQL Server DBMS
SQL Server Integration ServicesSQL Server Integration Services
SharePoint ServerSharePoint Server
DELIVERY
ReportsReports DashboardsDashboards Excel Excel WorkbooksWorkbooks
AnalyticAnalyticViewsViews ScorecardsScorecards PlansPlans
Oracle BI Architecture
Enabling Concepts for BI
• Strategy Maps – representations of an organization’s mission, goals, and activities
• Balanced Scorecards – representations of different perspectives on an organization and its performance
• Key Performance Indicators – measures that represent how successful and organization is in different domains
STRATEGY MAPDefine & communicate priorities and focus
BALANCED SCORECARDMeasure performance against priorities
MISSIONWhy we exist
VALUESWhat’s important to us
VISIONWhat we want to be
STRATEGYOur game plan
EMPOWERMENT / PERSONAL OBJECTIVESMotivate employees
INITIATIVE and PLANNING PROCESSManage actions and resources to drive change
STRATEGIC OUTCOMES
SatisfiedSHAREHOLDERS
Delighted CUSTOMERS
Efficient and EffectivePROCESSES
Motivated & PreparedWORKFORCE
The Strategy Map and the Balanced Scorecard bridged the strategy implementation gap. They link leadership at the top to management of initiatives, process improvements and
employees’ everyday actions.
Strategy Mapping
• Connects mission and goals to activities and projects and through that to measures
• Can feed budgetary decisions by illustrating what initiatives fit goals
• Can inform selection of performance measures
Balanced Scorecard
Set of perspectives from which to view organization
1. Customer
2. Internal
3. Learning and Growth
4. Financial
Bizspeak and the Ivory Tower
• These organizational performance management tools were created in the business world
• Terminology imported from business can irritate academics
• More importantly, a business-based model can place focus in the wrong places (e.g. the “bottom line”)
• Both terminology and models must be adapted to higher education
The “C” word
• Business philosophies applying business intelligence, strategy maps, and balanced scorecards often refer to themselves as “customer-focused”, and devote considerable attention to customer satisfaction.
• Thinking about the individuals and entities served by higher education as “customers” often encounters significant resistance within academia.
“University-Friendly” Terms• From a workshop on using the balanced scorecard in
higher education by Jan Lyddon and Bruce McComb
• Stakeholder Perspective– To achieve our mission, how must we look to our
stakeholders?
• Internal Perspective– To satisfy our stakeholders, at which processes must we
excel?
• Learning and Growth Perspective– To achieve our mission, how must our organization learn
and improve?
• Fiduciary Perspective– If we succeed, how will we look to our taxpayers?
UMD’s Strategy Map for Improving Graduation Rates
• Core Process Area– UMD Retention Areas
• Strategic Priorities– See “Literature Review”
• Opportunities for Action– See “Best Practices” and “Idea Brainstorming”
• New Initiatives (2006-07)– See “TLP Projects”
UMD’s Strategy Map: Core Process Areas
I. Fit: Interests and educational goals of students are aligned with UMD, its programs, and regional setting.
II. Financial: Students have access to sufficient resources to plan for and invest in their education.
III. Learning: Students are engaged in challenging learning activities leading to timely degree completion.
IV. Support: Students are connected to a strong network of caring faculty, staff, and students.
V. Culture: Students, faculty, and staff are valued participants in, and contributors to, a diverse and inclusive community that is educationally purposeful.
Internal ProcessesTo satisfy our customers, at which operational & quality processes must we excel?
FinancialTo financially sustain our Mission, on what must we focus?
*Cancer,Cardiovascu-lar,Digestive, Surgery, Children Specialty Services
Vision: SMDC will be the best place to work and the best place to receive care.
CustomerTo achieve our focus on Quality, Safety & Value, how should we appear to our internal & external customers?
SMDC FY06-08 Strategy Map
Copyright © 2006 by St. Mary’s/Duluth Clinic Health System
Service Excellence
F5 Capture earned revenue
Clinical Excellence
P3 Capital investment emphasis in technology & facilities to support clinical & financial objectives
F3 Restructure regional clinic business & clinical models
Management Excellence
Learning & GrowthHow will we sustain our ability to change and improve as a system
F1 Achieve a 3% Operating Margin by FY08 to sustain our Mission and achieve our Vision
*F2 Grow key specialty services & programs
F4 Redesign Duluth & Superior primary care strategy
We will pursue our mission and vision through a focus on Quality, Safety and Value
L2 Emphasize entity & system missions
L1 Create an environment that has an expectation of consistently delivering quality health care
P7 Excel in efficient & effective operations
P1 Right patient, right care, right process, best outcome
L3 Recruit & develop people to outstanding levels of
performance
L4 Engage physician leaders & managers as partners in
success with SMDC
P2 Provide easy, timely, coordinated
access to health care services
P4 Create direct access to specific programs & services
P6 Optimize physician & staff productivity
P5 Design & implement coordinated care models to effectively manage disease
processes
C3 Customer Value • Efficient Care
C2 Clinical Expertise • Effective Care• Safe Care
C1 Quality Relationships• Timely Care • Patient-centered Care• Equitable Care
Mission: SMDC brings the soul and science of healing to the people we serve.
The Strategy Map and Balanced Scorecard should represent a complete program of action.
$XXXX
Action Plan
Initiative Budget
• Customer Loyalty Program
• $XXX
• On Ground Cycle Time Optimization
• Quality Management
• $XXX
• $XXX
• ESOP
• Ground Crew Training
• Crew Scheduling System Rollout
• CRM System
Total Budget
• $XXX
• $XXX
• $XXX
• $XXX
Execute
Strategy Map
Theme: Operating Efficiency Objective
• Profitability
• Grow revenues
• Fewer planes
Financial Profits & RONA
Grow Revenues
Fewer Planes
• Flight is on-time
• Lowest prices
• Attract and retain more customers
CustomerAttract & Retain More Customers
On-time Service
Lowest Prices
Fast Ground Turnaround
Internal • Fast ground turnaround
• Ground crew aligned with strategy
• Develop the necessary skills
• Develop the support system
Learning
Strategic Job
Ramp Agent
Strategic Systems
Crew Scheduling
Ground Crew Alignment
Balanced Scorecard
Measurement Target
• Market Value
• Seat Revenue
• Plane Lease Cost
• 30% CAGR
• 20% CAGR
• 5% CAGR
• FAA On-Time Arrival Rating
• Customer Ranking
• # Repeat Customers• # Customers
• #1
• #1
• 70%• Increase
12% annual
• On Ground Time
• On-Time Departure
• 30 Minutes
• 90%
• % Ground Crew Stockholders
• Strategic Awareness
• Strategic Job Readiness
• Info System Availability
• 100%
• 100%
• Yr 1 - 0%Yr 3 - 90%
Yr 5 - 100%
• 100%
MeasureCommunicate
Alignment
• Effort to be more strategic in initiatives and foster greater “alignment”
• Alignment means having a stronger connection between the purposes and functions of units and initiatives and the strategic goals of the organization
• Funding is directed toward initiatives that promise progress on strategic goals
Strategic Context of the UofM
• “Top 3” goal
• Strategic positioning process
• Metrics and measurement efforts
• Increased focus on quality and continuous improvement
• New EFS reporting tools and environment
BI and EFS
• EFS Project views reporting instance as a step toward a business intelligence system for the UofM
• Reporting instance provides a variety of tools for traditional reporting, parameterized queries, and ad-hoc queries (but not analytics directly)
• Key will be eventual shift of other topic areas to same reporting approach
BI and EFS: Reporting Tools
• The “triangles” chart shows how the EFS reporting environment tools fit into a concept of business intelligence
• Moving from End User to Enterprise Analyst, tool capabilities ascend the “Analytics” chart
• Goal is to provide tools across the spectrum of users
BI and Strategic Positioning
• Articulated mission, values, goals
• Collection of initiatives launched to achieve goal
• Measurements still being discussed
• Strategic vs operational uses for BI
Business Intelligence Dashboard• This business intelligence dashboard summarizes our
evaluation of key foundational elements at the University of Minnesota using the stoplight metaphor. This approach offers an ‘at a glance’ overview of how the institution as a whole is doing relative to these components.
• Next steps– Develop common data definitions– Develop staff training resources– Improve distribution of analysis skills– Create a sustainable pipeline for BI projects– Build a collaborative community of BI practitioners– Develop a shared vision of BI for the U of MN
BI and Skills Capacity• Do we have the analytic capacity to
make use of information?
• Do we have analytic capacity in the right places?
• Do we have the capacity to provide analytic training?
• Do we have coherent training to produce clean data?
BI and UofM Culture
• Do we have an agreement on how to connect our initiatives to our goals and how to measure progress?
• Are we prepared to make budgetary choices on the basis of measures and strategy?
BI and UofM Infrastructure
• What kinds of tools do we need to put in place?
• How will those tools fit with existing software and staffing?