Today’s Theme The BI Journey – Part 1 Roger Warnock

1. Today’s ThemeThe BI Journey – Part 1Roger Warnock

2. 40th year in computer technologies and business systems 1969 - 1st Job: Senior Operator with AP Parts - Toledo 1972 - Ohio Plate Glass - Programmer & Manager of Data Processing 1976 - Business Planners, Inc. - Vice President of Systems Development, Systems Support, and Hardware Maintenance 1981 - Systems Alternatives, Inc. - Founder and President 1989 to Present - Founder and President of Warnock + Associates, Warnock, Tanner & Associates, Inc. / WTA Consulting Roger Warnock

3. My BI Journey My History of Processing & Reporting The Approach – Then and Now – A Question of Balance The BPM / BI /Project Management Approach & BI Pyramid – requiring Roger’s exercise is plagiarism Introduction

4. 1960’s - Wired Boards, Sorted cards, Accounting Machines Mid to late 1960s - the IBM 360 MainFrame – Autocoder & COBOL – batch entry Reporting is mainly a summary of business transactions - ledgers Where Have We Been?

5. 1970’s - Batch entry for invoicing & Customer payments; A/P & Vendor Payments; and GL Reporting - Mainly Sales & Financial Analysis – Some Material Replenishment Lots of Green Bar reports Where Have We Been?

6. 1970's & 1980's - More batch Processing for Shipped Replenishment - Production & Purchasing Analysis -> Inventory Management (EOQ) & MRP Computer becomes strategic to the business – creates competitive advantage Where Have We Been?

7. Late 1970’s and 1980’s – Advent of the Mini-Computer for small to medium business – Dec, IBM 32/34/38, Data General, Borroughs, etc – Lots of custom development & reporting Advent of the IBM PC and Desktop development & reporting like Lotus 123, Foxpro, and Ashton-Tate Dbase II/III/IV, etc Where Have We Been?

8. 1990’s – Era of big relational databases; MRP became ERP; lots of packaged applications Beginning of the Data Warehouse and ad hoc query tools Where Have We Been?

9. Mid to Late 1990’s & up to the present – “The Internet changes everything” – Larry Ellison The eBusiness bubble bursts and the economy goes into roller coaster mode – information becomes one of the most valuable corporate assets! Where Have We Been?

10. Present – BI Applications and Suites Each Generation was a more mature Real Time Entry/Processing and Reporting - capability, but not any different in terms of requirements or need - biggest change in the evolving business model is the velocity of change. Where Have We Been?

11. IT or Business Driven Projects - Should the Project be Initiated and Driven by the affected Business Units or by the IT Department? Front End Clarity vs. Iterative Discovery - Waterfall Analysis & Development vs. Agile Iterative Development Outcome Centric vs. Platform Centric - Should I Start with the Desired Outcomes, i.e. The Business Case, or Should I approach this as a Reporting Platform Search & Selection The Reporting Approach – Then and Now “A Question of Balance”

12. Template Driven vs Unique Development - Should I select a tool set that already has Metadata and Templates from my industry or pick the best technology and UI for a Custom Developed deployment Internal Team Staffing vs. Outside Team Staffing - Should I only use internal Business and IT personnel for the knowledge and future support capability or should I bring in "Pro's" who have done this before and have Industry or Technology experience The Approach – Then and Now “A Question of Balance”

13. The following slides were stolen directly from an excellent Presentation on Business Process Management (BPM) given by Ron Kelley of Image Integration Systems at a recent JDE Users Group . The case and approach for BPM goes hand in hand with the case and approach for both BI as well as for Project Management Official PlagiarismDisclaimer

14. Business Process Management is Methodology used to study a process to: Streamline processes Gain efficiencies Implement changes Ongoing improvements BPM is all about change to improve outcomes Process + Rules = BPM What is BPM? What is BPM?

15. Who’s usually responsible for BI…

16. Information Technology is most commonly responsible for BPM The IT Department + CIO is 32% Not surprising given… IT Analysis/Design skills Application/Integration of computer systems Caution: BPM and BI are more than “automation of information” The IT Role

17. 45% Process/organizational issues 41% Staff knowledge/training 30% Internal politics 29% Scope creep Implementation Challenges

18. The Basics: The BI Pyramid Data Mining Dashboards, Scorecards, etc. (Top Mgt) Ad Hoc Query and “What If” (Department Managers and Analysts) Operational Reporting (Clerical… and Top Mgt before BI)

19. Oracle Covers the Spectrum of EPM / BI Needs Optimization Prediction Planning Forecasting BI OLAP Scorecarding Complexity Reporting Competitive Advantage

20. Change is constant Velocity of Change is increasing so is need for real time transaction processing Velocity of Change is increasing so is need for real time Reporting and Analysis BI must be driven from Business Community and not IT BI projects are iterative and should be justified by observable continuous business improvements Enterprise Reporting starts with Operational Reports and moves to Data Warehousing and BI – Data Mining is still complicated and therefore niche positioned Summary

21. Today’s ThemeThe BI JourneyPart 1Roger Warnock- roger@wtainc.com Questions?

22. Today’s ThemeThe BI Journey – Part 2Roger Warnock – roger@wtainc.com

23. 40th year in computer technologies and business systems 1969 - 1st Job: Senior Operator with AP Parts - Toledo 1972 - Ohio Plate Glass - Programmer & Manager of Data Processing 1976 - Business Planners, Inc. - Vice President of Systems Development, Systems Support, and Hardware Maintenance 1981 - Systems Alternatives, Inc. - Founder and President 1989 to Present - Founder and President of Warnock + Associates, Warnock, Tanner & Associates, Inc. / WTA Consulting Roger Warnock

24. 1960’s - Wired Boards, Sorted cards & the IBM 360 MainFrame - Autocoder 1970’s - Batch entry for mainly invoicing, payments, and GL - Mainly Sales & Financial Analysis - GreenBar reports Early 1970's & 1980's - More batch Processing for Shipped Replenishment - Production & Purchasing Analysis -> Inventory Management (EOQ) & MRP Late 1970’s and 1980’s – Advent of the Mini-Computer for small to medium business – Dec, IBM 32/34/38, Data General, Borroughs, etc – Lots of custom development & reporting Advent of the IBM PC and Desktop development & reporting like Lotus 123, Foxpro, and Ashton-Tate Dbase II/III/IV, etc Part 1 recap - Brief History of Computing/Reporting

25. 1990’s – Era of big relational databases; MRP became ERP; packaged applications; & ad hoc query tools Mid to Late 1990’s & up to the present – “The Internet changes everything” – Larry Ellison Present – BI Applications and Suites Each Generation was a more mature Real Time Entry/Processing and Reporting - capability, but not any different in terms of requirements or need - biggest change in the evolving business model is the velocity of change. Part 1 Recap - Brief History of Computing/Reporting

26. Today’s Reality: Management Processes Are Fragmented SIX SIGMA GOAL SETTING VARIANCE ANALYSIS ROLLING FORECAST FINANCIAL MODELING OPERATIONAL PLANNING MONITOR RESULTS ANALYZE PERFORMANCE FINANCIAL REPORTING SCORECARDS • Lack of business alignment • Low predictability in performance • Inconsistency in business decisions

27. The Basics: The BI Pyramid Data Mining Dashboards, Scorecards, etc. (Top Mgt) Data Warehouse Ad Hoc Query and “What If” (Department Managers and Analysts) Operational Reporting (Clerical… and Top Mgt before BI)

28. The Basics: The DataWarehouse See DataWarehouse basics presentation

29. Before You Start… Assess The Problem Develop Business Case What business problems are you trying to fix? What outcomes do you want? Identify Stakeholders and Project Team Define project boundaries Discuss expected results Our Approach – Then and Now

30. Understand what you have before deciding what needs to change and what should not change Interview and Observe – Listen and Document – Be prepared to challenge Identify risks Cost of doing nothing Review “As-Is”

31. You need to know where you are going before you can change Identify opportunities for improvement in current state – ideal state Apply process constraints (budget, resources, technology, goals, boundaries) Validate with stakeholders The “BI Journey” is an Ongoing Process of Continuous Improvement Define “To-Be”

33. Gartner - BI #1 Technology Priority for 2009 “Gartner EXP Worldwide Survey of More than 1,500 CIOs” Gartner Press Release - January 14, 2009

34. BI Successes: Case #1 – Reduced daily average inventory of a local auto repair franchisee from $13.5M to $9.5M which at 10% carrying cost is a bottom line cost saving of $450K. Case #2 Reduced the Finished Goods inventory of a local steel company from 90 days supply to 35 days supply for steel applicators that used the BI Data Mart. What BI Can Do For You

35. Typical Effort & Customization balance Additional dashboards and reports, guided and conditional navigations, iBots, etc. Dashboards & Reports Easy Additional derived metrics, custom drill paths, exposing extensions in physical, logical and presentation layer, etc. OBIEEMetadata Moderate Extension of DW Schema for extension columns, additional tables, external sources, aggregates, indices, etc. DW Schema Intermediate Extension of ETL for extension columns, descriptive flexfields, additional tables, external sources, etc. ETL Involved Level of Effort Degree of Customization

36. Selected Key Entities of Business Analytics Warehouse Sales • Opportunities • Quotes • Pipeline • Order Management • Sales Order Lines • Sales Schedule Lines • Bookings • Pick Lines • Billings • Backlogs • Marketing • Campaigns • Responses • Marketing Costs Supply Chain • Purchase Order Lines • Purchase Requisition Lines • Purchase Order Receipts • Inventory Balance • Inventory Transactions • Finance • Receivables • Payables • General Ledger • COGS Call Center • ACD Events • Rep Activities • Contact-Rep Snapshot • Targets and Benchmark • IVR Navigation History • Service • Service Requests • Activities • Agreements Workforce • Compensation • Employee Profile • Employee Events • Pharma • Prescriptions • Syndicated Market Data Financials • Financial Assets • Insurance Claims • Public Sector • Benefits • Cases • Incidents • Leads Conformed Dimensions • Customer • Products • Suppliers • Internal Organizations • Customer Locations • Customer Contacts • GL Accounts • Employee • Sales Reps • Service Reps • Partners • Campaign • Offers • Cost Centers • Profit Centers • Modular DW Data Warehouse Data Model includes: • ~350 Fact Tables • ~550 Dimension Tables • ~3,500 prebuilt Metrics • (2,000+ are derived metrics) • ~15,000 Data Elements

37. Speeds Time To Value and Lowers TCOOracle BI Applications Build from Scratchwith Traditional BI Tools Oracle BI Applications Training / Roll-out Define Metrics& Dashboards • Faster deployment • Lower TCO • Assured business value DW Design Back-end ETL andMapping Training / Rollout Easy to use, easy to adapt Role-based dashboards and thousands of pre-defined metrics Define Metrics& Dashboards DW Design Prebuilt DW design, adapts to your EDW Back-end ETL andMapping Prebuilt Business Adapters for Oracle, PeopleSoft, Siebel, SAP, others Quarters or Years Weeks or Months Source: Patricia Seybold Research, Merrill Lynch, Oracle Analysis

38. Application Integration StrategyFor BI Apps and Performance Management Apps Financials Sales Marketing Procure & Spend Supply Chain & Order Mgmt HR Service Common Enterprise Information Model BI Server Ad hoc Analysis Interactive Dashboards Reporting &Publishing Proactive Detection and Alerts SmartView MS Office BI Applications Performance Management Apps What If HFM Planning FDM FDM Essbase OLTP Data Native Access (Plans, Consolidated Results) BI Applications DW (BAW) Data Movement 1) Plans 2) Consolidated results DataWarehouse Data Mart SAP, Oracle PeopleSoft, Siebel, Custom Apps Files Excel XML OLTP & ODS Systems Business Process "This information is not a commitment to deliver any material, code, or functionality. The development, release, and timing of any features or functionality described remains at the sole discretion of Oracle"

39. Change is constant Velocity of Change is increasing so is need for real time transaction processing Velocity of Change is increasing so is need for real time Reporting and Analysis BI must be driven from Business Community and not IT BI projects are iterative and should be justified by observable continuous business improvements Enterprise Reporting starts with Operational Reports and moves to Data Warehousing and BI – Data Mining is still complicated and therefore niche positioned The tools for Enterprise Reporting and BI are being consolidated by large players like Oracle BI Applications and Suites are becoming more comprehensive BI Applications and Suites are speeding up the time to implement Summary

40. Today’s ThemeThe BI Journey – Part 2Roger Warnock – roger@wtainc.com Questions?