Business Intelligence by Toa Charm

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Trends and Business Values of Business Intelligence Toa Charm DBA (candidate), M.A., B.Sc., CBIP (TDWI) Chairperson, BI Special Interest Division, Hong Kong Computer Society Regional Head of BICC, Asia Pacific, HSBC

Transcript of Business Intelligence by Toa Charm

Page 1: Business Intelligence by Toa Charm

Trends and Business Values of Business Intelligence

Toa CharmDBA (candidate), M.A., B.Sc., CBIP (TDWI)

Chairperson, BI Special Interest Division, Hong Kong Computer SocietyRegional Head of BICC, Asia Pacific, HSBC

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Outline

1. Introduction of HKCS BISID2. BI Adoption Worldwide

Gartner’s CIO SurveyMIS Asia CIO SurveyHKCS BISID Survey

3. Business Values of BIAnswering the Most Critical Business QuestionsJourney of a Data-Driven Enterprise

4. Q &A

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Hong Kong Computer Society Business Intelligence

Special Interest Division (BISID)

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HKCS Special Interest Divisions

CIOB - Chief Information Officer BoardBISID – Business Intelligence SIDEBSID – E-Business SIDETSID - Emerging Technologies SIDHITSID – Health IT SIDISSID – Information Security SIDQMSID - Quality Management SIDYoung IT Professional Club

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Mission of BISID

Professional and Career Development for BI and IT Practitioners

Values Creation for Businesses in Different Industries through the Best Use of BI

Bridging BI Professionals with Business Executives

Access to BISID Knowledge Repository, Publication, Research on the latest BI Market Trend, Best Practices and Technology Development.

Our current members mainly come from large multinational companies, local SMEs, major BI vendors and consulting firms and major universities

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BI Adoption Worldwide

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Business Intelligence ApplicationsEnterprise Applications (ERP, SCM and CRM)

Server and Storage Technologies (Virtualization)

Legacy Application Modernization

Collaboration Technologies

Networking, Voice and Data Communications (VoIP)

Technical Infrastructure

Security Technologies

Service-Oriented Technologies (SOA and SOBA)

Document Management

The Importance Of Business Intelligence

To what extent will each of the following technologies be a Top 5 priority for you in 2009?

1

2

3

4

5

6

7

8

9

10

Rank2009

1

2

5

3

6

8

4

10

9

7

Rank2007

Source: 2009 Gartner Executive Programs CIO Survey, January 14, 2009

2009 CIO Technology Priorities

1

2

3

4

8

7

6

5

10

9

Rank2008

1

**

9

10

4

8

12

2

6

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Rank2006

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2008/2009 Asian CIO Survey (1 of 2)Source: MIS Asia, December 2008

#1 in 2009

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2009 BI Survey for Hong Kong Jointly conducted by HKCS BISID and CityU Dept. of Information Systems

• Through the BISID of the Hong Kong Computer Society, representatives of major BI vendors invited their clients to participate in a BI survey which was conducted in November 2008;

• The Hong Kong Computer Society (outside BISID) also invited its members to participate in the BI Survey;

• Respondents voluntarily participating in the online BI survey; the survey engine is hosted at the Dept. of Information Systems of City University of Hong Kong;

• Post-survey data analysis was performed by the Dept. of Information Systems of City University of Hong Kong.

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Most respondents (45%) come from mid-size to large organizations

(with at least three thousand employees)

Size of Organizations (No. of Employees)

< 9920%

100-49911%

500-9995%

1000-199914%

>500036%

3000-39994%

4000-49995%

2000-29995%

< 99100-499500-9991000-19992000-29993000-39994000-4999>5000

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Main Users of the “Intelligence”: Middle and Top Management

Main Users of Business Intelligence

Senior management

36%

Middle management

41%

Operational personnel

20%

External customers

2%

Others1%

Senior management

Middle management

Operational personnel

External customers

Others

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What is the “Business Intelligence” mainly about: Customers’ Interests, Information of

Specific Business Sector, and Financial Risks

Technology9%

Country specific market information

9%

Situation about the specific business

sector that the organization is

operating15%

Competitors9%

Customers’ interests19%

Customers’ fields of business

9%

Raw materials2%

Suppliers' capabilities2%

Financial Risks11%

Human Resources5%

Others2% Legal aspects

2%General economic

trends6%

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Major Functional Areas Which Utilize BI Solutions: Sales & Marketing, Strategy & Planning, Accounting

0 5 10 15 20 25 30 35

AccountingSales & Marketing

Information TechnologyHuman Resources

Strategy & PlanningGeneral Administration

ProductionLogistics

ProcurementLegal

Research & DevelopmentCorporate Services

Risk ManagementOthers

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Most common problems encountered while deploying BI Solutions: Internal Expertise Not Available, Lack of Interests from Business

Users, Poor Quality of Source Data

0 5 10 15 20 25 30

Poor quality of source data

Unable to collect data from some sources

Security weaknesses

Company politics

Could not agree on requirements

Lack of interest from business users

Unreliable software

Missing key product features

Query performance too slow

System too difficult to be used

System could not handle large numbers of users

System could not handle large volume of data

Requirements changed before projects were completed

People-related administrative problems

Poor System documentation

Data cannot be standardized/integrated

Internal expertise not available

External expertise not available

Others

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Anticipation of Organizations’ BI Spending in Next Five Years: Remain Unchanged or Slightly Increase

0 2 4 6 8 10 12 14 16 18 20

Decrease Significantly

Decrease

Decrease Slightly

Remains Unchanged

Increase Slightly

Increase

Increase Significantly

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ICT Applications with Top Priority in 2009

1. Business Intelligence Applications

2. Enterprise Applications (CRM, ERP, SCM, etc.)

3. Legacy Application Modernization

4. Security Technologies

5. Server and Storage Technologies

6. SOA and SaaS

7. Technical Infrastructure management and development

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Business Values of BI

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Business Values of BI (1 of 3) Answering the most critical business questions

Customer IntelligenceKnow who our customers are and know who they should be.Use data and analytics to profile customers using demographics, psychographics and behavioral data.Measure customer satisfaction, loyalty, and lifetime value.Seek opportunities to increase satisfaction, loyalty and value.

Targeted MarketingSegment the customer base and marketplace by likes and dislikes.Use customer/market segmentation to increase response rates and decrease costs of marketing campaign

Opportunity RecognitionUse predictive analytics that forecast trends in demand, supply, consumer purchasing behaviors, and other significant business influences.Establish or improve competitive position in a market.Realize the value potential of opportunities.Avoid the cost of missed opportunities.

Business Process OptimizationSeek and exploit opportunities to increase business process performance and decrease business process costs. Examples include capacity planning to maximize resources utilization, performance monitoring to identify and remove bottlenecks, materials utilization monitoring to minimize waste, etc.

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Business Values of BI (2 of 3) Answering the most critical business questions

Financial ManagementBalance Sheet: How do we balance and structure the financial funding options, resources, and underwriting risks of the business to incorporate investment accounting and portfolio analysis requirements?

Solvency/Capital Adequacy: How quickly can we leverage loss projections and reinsurance contract information to forecast restoration of adequate capital to overcome catastrophic losses?

Income Statement: How did the business team score? Where was performance strong or weak?

Drill-down variance: What causes changes in financial performance?

Operational plan variance: How do we best support, coordinate, and manage the delivery of meaningful plans?

Cash Flow and Working Capital: How do we monitor cash use effectively?

Capital Expenditure (CapEx) and Strategic Investment: What are the investment priorities and why?

Treasury: How can we efficiently manage cash, investment income requirements and cost of capital decisions for surplus targets?

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Business Values of BI (3 of 3) Answering the most critical business questions

Risk ManagementRisk recognition, including fraud detection, regulatory compliance monitoring, early indicators of customer attrition, competitor evaluation, etc.Information-based recognition and assessment of risks allows a business to determine the potential cost of a risk, evaluate costs of various mitigation approaches, and mitigate in the most cost-effective way.Cost prevention through risk avoidance, and cost reduction with cost-effective mitigation methods.

Quality ImprovementDefect analysis for products and processes to identify and correct root causes minimizes both the cost of rework and risks associated with delivering a defective product to customers.

Resource PlanningAnticipate resource demands – whether staffing, equipment, materials, facilities, or other resources.Forecast to avoid risks (and associated cost) of insufficient resources to meet demand. Plan to avoid cost of under-utilized resources.

Many more ..

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Answering More Critical Questions during BI Maturity

source: SAS Institute

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Start(Aspiration)

Half-Way(AnalyticalCompany)

Journey Completed(Analytical Competitor)

Thomas Davenport’s “Competing on Analytics”

From Aspiration to Analytical Competitors (1 of 3) source: “Competing on Analytics”, Thomas Davenport

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Start(Aspiration)

Half-Way(AnalyticalCompany)

Journey Completed(Analytical Competitor)

Thomas Davenport’s “Competing on Analytics”

From Aspiration to Analytical Competitors (2 of 3) source: “Competing on Analytics”, Thomas Davenport

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From Aspiration to Analytical Competitors (3 of 3) source: “Competing on Analytics”, Thomas Davenport

Start(Aspiration)

Half-Way(AnalyticalCompany)

Journey Completed(Analytical Competitor)

A D

ata-

Driv

en E

nter

pris

e

Developing a Culture of BI Best Practice and Community

Thomas Davenport’s “Competing on Analytics”

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Q & A