Aligning BI investments and the bottom line nw

Aligning BI Investments and The Bottom-Line

The Role of Business Requirements

Nancy Williams, VP
DecisionPath Consulting
nancy.williams@decisionpath.com

Copyright DecisionPath Consulting 2011 — All Rights Reserved

The BI Information Paradigm

Business
Business Business Business
Measurement
Information Decisions Actions
& Analysis

In the Context of Business Processes

Management Customer Operating Processes,
Processes, e.g. Processes, e.g. e.g. Manufacturing,
Planning, Budgeting, Marketing, Sales, Order Fulfillment,
Controlling Customer Service Billing

Business Intelligence and
Equals Business Results $$$
Copyright DecisionPath Consulting 2011 — All Rights Reserved 2

Repositioning the Value of Information

Traditional Reporting Business Intelligence
• Static and Retrospective • Interactive, both Forward-looking and
Retrospective

• Frequently single system • Cross-system, cross-functional view;
operational view strategic, tactical, operational

• Not necessarily actionable or • Actionable — purpose is enabling improved
decision-oriented business performance

• No special data architecture or • Leverages special “data pre-positioning”
tools required approaches and tools to simplify analysis by
end-users


Legacy Information Requirements Paradigm

The Report “Order-Taking” Model

Individual Business Users Report Writers
Specify Data, Sort Order, Format
Usually Little if Any Business Context


Achieving BI: The New Information
Requirements Paradigm

What business information do we need?
For what business measurement & analyses?
In support of which key business decisions?
That impact which core business processes?
To deliver how much business value?
Via what changes to people, processes, and
technology?


The Information Paradigm Shift : Common
Approaches That Haven’t Delivered

Data Dumping Big Bang

Focus on Technology Focus on Reports/KPIs

BI Maturity and Business Requirements:

Stage 3
Greater Changed Information Usage
Value New BI Business Requirements Approach Paradigms
Creation Across Enterprise
to Leverage BI

Stage 2
New BI Business Requirements Approach Changed Information Usage
Paradigms in One or More
Value Creation

Functions to Leverage BI
Business

Stage 1
No Change to Information Legacy Business Requirements Approach
Usage Paradigms

Stage 0
No DW / BI Experience

BI Maturity Greater Maturity

Changing The Paradigm: Pain vs. Gain

Stage 3
Greater Changed Information Usage
Value Information Used Across Enterprise to
Paradigms
Creation Measure and Manage Business Performance
Across Enterprise
to Leverage BI

Stage 2
New Information Assets- From Reporting
Changed Information Usage
to Analysis and Action
Paradigms in One or More
Value Creation

Functions to Leverage BI
Business

Stage 1
No Change to Information Improved Reporting
Usage Paradigms

Stage 0
Status Quo
No DW / BI Experience

BI Maturity Greater Maturity

BI Maturity- Where Are You?
Where Do You Want To Go?

High
Degree of Data Integration

Integration

Medium th igm
ow
Integration Gr arad
sire d ag
eP
De Us ity
on r
ati Matu
orm I
Inf her B
Low in ig
nge H
Integration C ha

Reporting Analysis Prediction
Performance Measurement Performance Analysis Performance Forecasting
(WHAT?) (BASIC WHY?) (COMPLEX WHY? WILL? )

Level of Analytic Capability


Repositioning Business Roles and Responsibilities

Legacy Requirements BI Requirements

• Data oriented specifications • “As-Is” versus“To-Be” information
capabilities linked to business goals and
objectives

• Requirements oriented around • Requirements oriented around projects that
individual reports/projects that provide new information capabilities that
provide access to data subjects support improved business performance

• Little if any business • Strong alignment with business strategy and
context/business case business processes

• Project or individual data • Interviews/facilitated sessions, active
specification, little business business oversight
involvement


High-Impact BI Requires Alignment

Business – centric BI

Alignment


Using BI to Meet Business Goals

Operating Purchasing Manufacturing Distribution Service
Processes

Business
Intelligence: Customer
• Business information Processes Service Marketing Sales
• Business analysis
• Decision support

Management Finance Human Planning
Processes Resources


Delivering the Right Information the Right Way

Different BI Tool Capabilities for Different Purposes and Users
BI Capabilities and Tools Aligning BI for User Needs
Do we have the right pricing
Do we have the right pricing
strategy to optimize the
strategy to optimize the
Types of Business Intelligence (BI) Related Tools & Techniques balance between risk and
balance between risk and
return? How has pricing
return? How has pricing
Execs and Senior impacted sales and margins?
impacted sales and margins?
What happened (or is Reports, Dashboards, Alerts, Management
happening right now)? OLAP

What happened,
Scorecards, Reports, Alerts
as related to goals? For which channels and
For which channels and
products are sales declining?
products are sales declining?
OLAP, Data Mining, Advanced Why?
Why?
Why did it happen?
Visualization
Middle Management,
Analysts, Power Users
Forecasting, Predictive
What do I expect to happen?
Modeling, Data Mining
Which of my customers are
Which of my customers are
What do I want to happen? Planning, Scorecards not meeting account-level
not meeting account-level
sales goals? What are their
sales goals? What are their
order patterns?
order patterns?

Front Line Users

Copyright DecisionPath Consulting 2011 — All Rights Reserved
Decisioning Tiers 13

BI Pathway Approach to Requirements

Roadmap Phase Deliver & Impact Phases

Program Management

Leverage BI for
Leverage BI for
Create a BI
Create a BI Develop BI
Develop BI Execute BIBI
Execute BI
Execute BI
Execute
Assess BI Risk
Assess BI Risk Business BI
Leverage BI
Leverage
Business
Strategy
Strategy Roadmap
Roadmap Projects BI
Execute BI
Execute
Projects
Projects
Projects BI Leverage BI
Leverage BI
for Business
for Business
Execute
Projects BI
Execute
Projects Results
Results
for Business
for Business
Results
Results
Projects
Projects Results
Results

…
Specify Assess Determine Reduce Risks, Capture
Business Needs Risks How to Proceed Optimize Costs Planned ROI

Aligning BI Investments with the Bottom Line Achieving Business
Value

Aligning BI Investments for Business Impact

Time-boxed BI Planning Effort

Create a BI
Create a BI Develop BI
Develop BI
Assess BI Risk
Assess BI Risk
Strategy
Strategy Roadmap
Roadmap

Define Data
Define Data
BI Alignment &
BI Alignment &
BI Opportunity Portfolio
BI Opportunity Portfolio Architecture &
Architecture &
Governance Risk
Governance Risk Technical Strategy
Technical Strategy

BI Business Case
BI Business Case BI Delivery Risk
BI Delivery Risk BI Source Data Analysis
BI Source Data Analysis

Define Prioritized BI
Define Prioritized BI
BI Requirements
BI Requirements BI Business Adoption
BI Business Adoption Portfolio, Program Plan
Portfolio, Program Plan
Definition
Definition Risk
Risk & Roadmap
& Roadmap

Define BI Performance
Define BI Performance
Measurement Program
Measurement Program
3-4

BI Requirements and Roadmap Effort

Optimal:
Time-boxed BI Program Level
Requirements

Risky: Risky:
Limited, Project-level “Big Bang” Program-level
Requirements Effort Requirements Effort


BI Opportunity Checklist

Opportunity n Opportunity Checklist:
What business goals and strategies are in focus?
As is definition:
What information is currently available to support
these business goals and strategies
What business questions can’t be answered and why
is this a problem?
To be definition:
What type of BI capability (provide name) is needed?
How will this BI capability address the business
problem?
What specific business questions need to be
answered?
What business improvement opportunities can be
realized through using this BI capability?
How does this help achieve business goals and
strategies?
How will performance improvements be measured?

Developing the BI Opportunity Portfolio

What specific BI project opportunities exist to deliver business value?

High Revenue Supply Chain
Management Analysis

High Risk /
Plums
Business Impact

Reward
Customer
Service Anal. Category
Inventory
Management Management

Easy Wins Why Do It?

Low

Low Risk High


Prototyping the BI Application

User Profiles Usage Scenarios Delivery Methods

Business Process:
Customer Service -
Order Fulfillment
Execs and Senior Manage customer relationships
Management Business Activity This data use… Leads to this information…
Dashboards, Scorecards
Look at order fill rate by One set of customers are lower than the
customer average

Business Scenario Compare to target fill rate and We are not meeting target fill rates for these
explore year to date trends customers and service levels have dropped

Explore the orders by product Identify common traits for lower order fill
and location rates (similar products, shipping location,
Middle Management, etc)

Analysts, Power Users Offer promotions to retain these customers
Business Decisions Correct cause of lower fill rates (underestimated sales Reports
forecast, manufacturing problem, distribution center backlog)

Knowledge Workers, How will they use the
Casual Users information? OLAP, Ad-Hoc Query

Who will use the How should the
information? information be
delivered?


From BI Opportunity to Bottom Line Results


Critical Success Factors- BI Maturity and Business Impact

• Executives embrace the new information paradigm

• Belief amongst business sponsors that information provides competitive
advantage

• BI is positioned as a business initiative; new requirements approaches
are used that identify and explicitly align new BI capabilities that will
support/enable business goals and strategies

• BI is incorporated in supporting/changing business processes to support
optimal business performance

• The BI team is viewed as strategic, has a “seat at the table”, and is
actively involved in a business partnership on an ongoing basis


Questions and Discussion


Aligning BI investments and the bottom line nw

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