The Role of BI in Your Performance Management Initiatives• Drive revenue and profit growth with...

The Role of BI in Your Performance Management

Initiatives

Radoslav Vangelov

Applications Sales Representative

2 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.

Agenda

• Performance Management Challenges

• Solutions Overview

• Customer Success

• Q&A


What is performance management ?

• Anywhere in the world people interact with their

environments to produce desired effects

• Performance management includes activities that

ensure that goals are consistently being met in an

effective and efficient manner. Performance

management can focus on the performance of an

organization, a department, employee, or even the

processes to build a product or service, as well as

many other areas.


Enterprise Performance

Management is a Discipline

that Enables Management to:

Link strategies to plans and execution,

Monitor financial and operational results

against goals, and applying analytics to

Drive enterprise-wide performance

improvement.

4


Market Pressures Demand Effective

Performance Management

Today’s Reality: Management

Processes Are Fragmented

• Lack of business alignment

• Low predictability in performance

• Inconsistency in business

decisions

ECONOMIC VALUE ADDED

(EVA)

ANALYZE

PERFORMANCE

GOAL

SETTING

SCORECARDS FINANCIAL

REPORTING

FINANCIAL

MODELING

VARIANCE

ANALYSIS

ROLLING

FORECAST

OPERATIONAL

PLANNING

MONITOR

RESULTS

$ € £ ¥


Management Excellence:

The Next Competitive Edge

Time

Competitive

Advantage

OPERATIONAL EXCELLENCE

MANAGEMENT EXCELLENCE


• “One-off”, ad-hoc analyses are difficult to re-use

• Scenario modeling is manual and time intensive

• Difficult to link strategy to the real-world facts

Fact: Disconnect Between

Analytics and Action

What Happened? Why Did it Happen?

Take Action Who Does What?

How to Optimize Across Alternatives?


• Multiple BI tools impact analytical

productivity

• Flawed view of business

performance

• Emergence of shadow BI projects

• Higher costs from fragmented

BI infrastructure

Fact: Expensive Analytic Silos Perceived

as Quick Fix

MARKETING

FINANCE

MANUFACTURING

SALES


Fact: BI Requirements

Continually Evolve

• 50% of analytic requirements changed in the first year

• Difficult to incorporate new or emerging data sources

• Expensive to integrate BI with IT infrastructure

• Development risk is result

50% CHANGE


<Insert Picture Here>

Solutions Overview:

Oracle BI Applications Oracle BI Foundation


Agenda BI Apps

• Business Need for Pre-Built Applications

• Oracle BI Applications overview and

benefits


SINGLE

ENTERPRISE INFORMATION

MODEL

The New Standard for Enterprise Analytics Oracle’s Integrated Analytic Solution

DETECT

ANALYZE ACT

MODEL

SINGLE

ENTERPRISE INFORMATION

MODEL

Sales

Marketing

Service

Contact Center

Price

Loyalty

Financial Services

Communications

Healthcare

Retail

Financials

HR

Procure & Spend

Projects

Supply Chain

Order Mgt

Logistics

Scorecard

Strategic Planning

Financial Close

Planning & Forecasting

Profitability Management


Business Intelligence Challenges

BUSINESS

• Lack visibility and insight into

performance, processes, and

customers

• Poor alignment of decisions

and actions at all levels with

strategy and goals

• Lack single, consistent view of

information

• Time wasted gathering data to

manage and report

IT

• Backlog of report requests and

need to provide self-service

access to intelligence

• Resource constraints inhibit

ability to broaden BI

deployment to meet demand

• Complex IT environments –

disparate data, applications,

and integration challenges

• Push to reduce costs and

standardize tools


Business Intelligence Drives Increased

Effectiveness in Every Business Function

Service & Contact Center Analytics

Optimize service

processes, reduce

costs, retain and

grow customers

Supply Chain & Procurement Analytics

Optimize spend,

overall supplier

performance, and

inventory levels

…But Few Organizations have Achieved Such Pervasive BI. Why?

HR Analytics

Retain talent,

manage comp

costs, increase

productivity

Sales Analytics

Improve pipeline

visibility, forecast

accuracy and sales

effectiveness

Financial Analytics

Always understand

financial condition

and drivers of cost

and profitability

Marketing Analytics

Optimize campaign

execution, results,

and ROI


Oracle BI Applications Prebuilt Solutions for EBS, PeopleSoft, Siebel, JD Edwards, and

more

Other Data Sources

IVR, ACD, CTI Hyperion MS Excel

Syndicated

Oracle BI Server

Common Enterprise Information Model

Add insight to CRM and

ERP applications

Easy to adapt and extend

Tight integration with OLTP

systems

Works with existing IT

environment

Fast time to value; Low TCO

Over 2,000 customers

ERP Analytics Financials

Human Resources

Procurement & Spend

Supply Chain & Order Mgmt

Projects

CRM Analytics Sales

Service & Contact Center

Marketing

Loyalty

Price

http://www.siebel.com/

http://www.peoplesoft.com/corp/en/public_index.jsp


CRM ANALYTICS ERP ANALYTICS

SALES

• Pipeline Analysis

• Forecast Accuracy

• Up-sell/Cross-sell

• Cycle Times

• Lead Conversion

• Sales Team Effectiveness

MARKETING

• Campaign Effectiveness

• Customer Insight

• Product Propensity

• Market Basket Analysis

• Campaign ROI

SERVICE &

CONTACT CENTER

• Service Effectiveness

• Customer Satisfaction

• Resolution Rates • Service Rep

Efficiency • Service Cost • Service Trends

ORACLE BUSINESS INTELLIGENCE AND OTHER OPERATIONAL AND ANALYTIC SOURCES

SOURCE ADAPTERS:

PRICE

• Price Segments

• Price Waterfall Analysis

• Deal Life Cycle

• Deal Desk Analysis

• Product Pricing Performance

LOYALTY

• Member Demographics

• Program Revenue

• Membership Trends

• Promotion Effectiveness

• Points Analysis

FINANCIALS

• General Ledger

• Accounts Receivable

• Accounts Payable

• Cash Flow

• Profitability

• Expense Management

PROCUREMENT &

SPEND

• Direct & Indirect Spend

• Buyer Productivity • Contract

Compliance • Supplier

Performance • Purchase Cycle

Time • Employee Expense

SUPPLY CHAIN &

ORDER MGMT

• Revenue & Backlog

• Inventory Analysis

• Fulfillment Status

• Customer Status

• Order Cycle Time

• BOM Analysis

PROJECTS

• Project Funding and Budget

• Product Cost

• Project Revenue

• Project Billing

• Project Profitability

HUMAN

RESOURCES

• Employee Productivity

• Compensation

• Talent Management

• Recruiting Analysis

• Learning Analysis

• Workforce Profile

Broadest Analytic Application Coverage Oracle BI Applications

http://www.siebel.com/

http://www.sap.com/index.asp

http://www.peoplesoft.com/corp/en/public_index.jsp


17

What is an Oracle BI Application?

Integrates Data for Analysis and Reporting

• Pre-built integration of data from Oracle EBS, PeopleSoft, Siebel, JD Edwards,

SAP and other sources into an integrated data warehouse optimized for analysis

Provides User-Friendly Analytic Model of Enterprise Information and Metrics

Embedded best practice calculations, metrics, and KPIs

Easy for business people to access, analyze, and use the information

Delivers Personalized Performance Dashboards for Everyone

Thousands of pre-built dashboards, reports, and alerts by business function and

role

1

2

3

1 2 3


18

Common Enterprise Information Model

Single Consistent View and User Self-Sufficiency

User Roles, Preferences

Simplified View

Logical SQL Interface

PRESENTATION LAYER

Dimensions

Hierarchies

Measures

Calculations

Aggregation Rules

Time Series

SEMANTIC OBJECT LAYER

PHYSICAL LAYER

Map Physical Data

Connections

Schema

Role-Based Views of the Information Relevant to the User

Consistent Definition of Business Measures, Metrics, Calculations

Model Once, Deploy Everywhere

Across Any Data Sources


The Problem No Vendor Has Solved

Until Now…

Data warehouse design

Data mapping & transformation from multiple applications

Analytic models, KPIs, metrics

Much more…

DASHBOARDS

“Visible”

“PLUMBING”

“Under the

Surface”

Significant time,

resources and

expertise

required

COMPLETE BI SOLUTIONS ARE MUCH MORE THAN JUST DASHBOARDS


Speeds Time to Value and Lowers TCO

Pre-built DW design, adapts to your EDW

Build from Scratch with Traditional BI Tools

Oracle BI Applications

Weeks or Months

Back-end

ETL and

Mapping

DW Design

Define Metrics

& Dashboards

Back-end ETL and Mapping

DW Design

Define Metrics & Dashboards

Training/Roll-out

Training/Rollout

Quarters or Years

Source: Patricia Seybold Research, Gartner, Merrill Lynch, Oracle Analysis

Pre-built business adapters for Oracle, PeopleSoft,

Siebel, SAP, others

Role-based dashboards and thousands of pre-defined metrics

Easy to use, easy to adapt

Faster deployment

Lower TCO

Assured business value


Oracle BI Applications – Key Benefits

KEY BENEFITS

Improve visibility and

insight into

performance,

processes, and

customers

• Compare operational results to plans in real-time

• Quickly identify and respond to problems & opportunities

• Drive revenue and profit growth with better targeting

• Increase customer profitability and share of wallet

Align strategy and

tactics across

functions

• Manage and execute at all levels based on common view

of information and common performance metrics

• Improve efficiency and reduce costs while maintaining

good product quality and customer satisfaction

• Identify and replicate operational best practices

Leverage existing data,

applications, and IT

staff

• Add value and insight to CRM and ERP applications

• Get faster time-to-value with lower cost and risk

• Lower the total cost of ownership compared to custom

built solutions


COMMUNICATIONS AUTOMOTIVE FINANCE/BANKING CONSUMER GOODS HIGH TECH

MEDIA/ENERGY AERO/INDUSTRIAL INSURANCE/HEALTH LIFE SCIENCES OTHER

Business Intelligence Customers

Select References

http://www.bt.com/index.jsp?BV_SessionID=@@@@0465278720.1086302531@@@@&BV_EngineID=cccjadcljfhiihecflgcefkdffndfnn.0&obsOID=30777&obsPage=/index.jsp&vStore=1128&obsType=LINK&obsNoSee=true

http://www.reuters.com/home.jhtml

http://www.goldmansachs.com/

http://www.abnamro.com/com/homepage.asp

http://www.loreal.com/us/index.asp

http://www.autodesk.com/

http://www.zurich.com/home.jhtml;jsessionid=ODROXK53XHGYSCR4SJSB5VQKH0JHQH54

http://www.astrazeneca.com/ncm.aspx

http://marriott.com/default.mi

http://www.dillards.com/index.html

http://www.metrogroup.de/servlet/PB/menu/-1_l1/index.html

http://www.telecomitalia.it/cgi-bin/tiportal/TIPortal/ep/home.do?BV_UseBVCookie=Yes&tabId=0


Oracle Business Intelligence Foundation Built to Last and Made For Change

First Intelligent Business Process

Improve business performance by linking

insight to action

Lowest Cost of Ownership

Reusable analytic assets deliver productivity and

provide consistent enterprise metrics

Start Simple and Evolve

Manage risk with single analytic framework across a range of schemas and deployment options





insight to action







Intelligent Business Processes Insight in Every Decision

1

What Happened?

4 Take Action Who Does What?

2

Why Did it Happen?

3 How to Optimize Across Alternatives?


Intelligent Business Processes Insight in Every Decision

1

What Happened?

4 Take Action Who Does What?

2

Why Did it Happen?

3 How to Optimize Across Alternatives?

KPI Watch List: Customer satisfaction and renewal rates are below expectations

Analyze: Extra support required for retail customers, no margin for additional support.

Should we adjust discounts at retail?

Model: How much extra cost to satisfy retail vs. online customers? How much in lost sales if discounts are reduced?

Approve: new discount policy for retail stores

Update: KPIs and track performance against new targets


Set Strategic Goals, Track Initiatives and

Detect Variances 1

What Happened?


Unified Interface for all Analytic Functions Improves User Adoption and Self-Service

2

Why Did it Happen?

•Single analytic view across all data sources.

•Advanced interactive analysis, regardless of data source

•Same powerful analytic context available in Microsoft Office tools.


“Senior executives want scenarios and

simulations that provide immediate guidance

on the best actions to take when disruptions

occur – ranging from unexpected competitors or

an earthquake in a supply zone to a customer

signaling a desire to switch providers.”

What MIT Sloan Is Saying


Create Scenarios to Model Future Outcomes

3

How to Optimize Across Alternatives?

• Model Complex Business

Scenarios

– Advanced calculation

engine

– Intuitive dimensions,

derived metrics

• Single view of the business

• Centralized, User-oriented

– Functions, calculations,

consolidations


4

Take Action Who Does What?

Link Insights to Action Embed BI to Shorten Decision Cycles


Intelligent Decision Cycles In the Organization Pervasive Insight-Driven Management Processes

• Shared KPIs

• Shared Metrics & Targets

• Consistent Metadata

• Tie Strategy to Operations

Drive intelligence decision cycles across all levels of

management from strategy to operational execution

STRATEGIC

PLANNING

OPERATIONAL





insight to action







Reusable Analytic Assets Common Enterprise Information Model Enables Scale

• User Roles, Preferences

• Simplified View

• Member Selection

• Logical SQL Interface

PRESENTATION LAYER

• Dimensions

• Hierarchies

• Measures

• Calculations

• Aggregation Rules

• Time Series

SEMANTIC OBJECT LAYER

• Map Physical Data

• Connections

• Schema

PHYSICAL LAYER

• Insulates Users from

Complexity

• Consistent Definition

of Business Metrics

& Calculations

• Easier Maintenance

• Model Once, Deploy

Everywhere

• Any Set of Data Sources

MORE VALUE

REUSABLE


Build Once, Deploy Anywhere

Office Integration

Ad-hoc Analysis

Scorecards

Secure Search

Strategy Maps

Geographic Visualization

Embedded in Applications

Interactive Dashboards

Scenario Analysis

Production Reporting

Business Processes

Predictive Analysis Tablet / Mobile


Oracle Business Intelligence Mobile

• An option of Oracle BI

11g

• Enables iPads and

iPhones to become

another 1st class BI

channel

• Delivers mobile BI

instantly, leveraging

existing BI Foundation





insight to action







Start Simple and Evolve Your BI Strategy Single BI Foundation For All Analytic Functionality

Operational Reporting

Interactive Dashboards

Scenario Analysis

Strategic Scorecards

Process Integration

Predictive Analytics


Direct Reporting Against Any Data Source Any Data Source Becomes an Information Asset

Data Warehouse

Packaged Applications

Business Process

OLAP Cubes

Unstructured Data

XML Files





insight to action







<Insert Picture Here>

Customer Success


Retail Aero / Industrial Insurance / Health Life Sciences Travel & Transport

Communications Public Sector Finance / Banking Consumer Goods High Tech

Business Intelligence Customers Business Analytic Tools and Applications

http://www.autodesk.com/

http://www.goldmansachs.com/

http://www.loreal.com/us/index.asp


http://www.astrazeneca.com/ncm.aspx

http://www.telecomitalia.it/cgi-bin/tiportal/TIPortal/ep/home.do?BV_UseBVCookie=Yes&tabId=0

http://www.emersonmotors.com/index.htm


BT Sharpens its Intelligence with Oracle BI

BT is one of Europe’s leading providers of telecommunications services, with over £8.5 billion in revenue and over 18,000 employees.

Before

Need to replace slow, fragmented

reporting processes

Desire to develop more timely insight

into sales, marketing, and service

interactions

Need to avoid duplication in customer

communications

Want the ability to monitor and

manage customer and business

performance.

After

Implemented OBIEE in 100 days to

1,200 sales, marketing, and service

staff

Ability to monitor and manage

customer and business performance

Improved access to sales opportunity

pipeline data

Replaced 95% of manual sales

reporting

Reduced cost per lead by 41%



Rapid Deployment and Quick ROI 7-Figure return in 5 months

Before

Expensive, error prone, time

consuming manual process to

generate spend data

Users combining data from 14 QAD

instances, Salesforce.com, SAP,

Manugistics, MSFT Access and Excel

Several multi-year Cognos projects

had failed to deliver value

No single source of truth for spend

data; supplier rebates were being

missed

Black & Decker: Hardware & Home Improvement Group was formed in 1989 as a division of Black & Decker. Headquartered in Lake Forest, California, the revenue of this division exceeds $1B.

After

Procurement & Spend Analytics +

Essbase deployed in 16 weeks

Provides “visibility to spend data that

was previously unavailable”

IT spend reduced 36% vs previous

Cognos solution

SG&A report produced in 5 minutes

versus 8 hours

“7 Figure Supplier Rebates” were

identified within weeks of go-live,

resulting in immediate ROI.


Reduces Repair Expenses with Oracle BI

Union Pacific is the largest railroad in North America, with revenue of $14B and coverage of 23 states.

Before

Need to improve railroad track

maintenance activities

Desire to improve allocation of

maintenance spend

Goal of improving employee safety

Need to increase levels of customer

satisfaction

Increase productivity and lower

operating costs

After

With OBIEE, deployed 300+ analytic

applications for Maintenance, Safety,

and Business Performance Mgmt.

4,000+ users access multiple TB of

data spanning Oracle, Teradata and

3rd party sources

Maintenance issues detected before

track shutdowns are required

Improved on-time deliveries and

customer satisfaction

Reduced operating expenses


Cisco Leverages BI Across the Enterprise Single cross-functional BI solution

Cisco Systems is the worldwide leader in networking equipment for the Internet.

Before

Desire to provide business

performance visibility to executives

and line of business managers across

sales, marketing and finance

Need to transform marketing

organization to metrics-based focus

Need to provide executive visibility

into key HR performance metrics

After

Deployed OBIEE as enterprise BI

solution across Sales, Marketing, HR,

Finance, Quality & Manufacturing

18,000 users, growing to 40,000; 10+

TB of data

Senior management tracks near real-

time sales performance

Enhances ability to reallocate scarce

resources to impact performance

30% employee productivity gain


Florida State University Selects Oracle BI End Users Can Monitor Financial Performance

Before

Unable to track budget, expended,

encumbered, and remaining

balances across various levels of

the University

End-users unable to interact with

data, view data at different levels,

and drill into data without IT help

Could not provide HR based data

for demographic and regulatory

reporting in timely fashion

After

Oracle BI Publisher and Oracle BI EE

will enable Florida State University to

view multiple levels of data, quickly

and efficiently. Can now aggressively

track spending across all levels of the

university.

End-users can access complex data

in a meaningful fashion without

custom development by IT under the

previous solution.

Dramatic reduction in report requests

to IT.

University-wide, consistent view of

financial performance and HR costs.

National graduate research university, 35,000+ students, $1B annual operating budget, with more than 8,000 Employees.

The Role of BI in Your Performance Management Initiatives• Drive revenue and profit growth with...

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