Business Intelligence: A company’s CIA?

1. Business Intelligence:A company’s CIA?

2. Business Intelligence “Get more knowledge about your business” Why?

3. Why? to make better decisions  Need for “BIA”

4. Definition • BI refers to skills, knowledge, technologies, applications, quality, risks, security issues and practices used to help a business to acquire a better understanding of market behaviour and commercial context. • For this purpose it undertakes the collection, integration, analysis, interpretion and presentation of business information

6. Corporate Performance Management CPM All of the processes, methodologies, metrics and systems needed to measure and manage the performance of a company.

7. Flexibility + innovation Companies need accurate knowledge to make the right decision fast

8. ‘Speed’ of decision making

9. Not enough information?

10. Information easy accessible?

11. Amount of information managers receive that has no value • 0 – 30% • 30 – 50% • Over 50%

12. Amount of information managers receive that has no value • 0 – 30% • 30 – 50% • Over 50%

13. How much time do managers waste each day, searching for information? • 0 – 30 min • 1 – 3 hr • > 3 hr

14. How much time do managers waste each day, searching for information? • 0 – 30 min • 1 – 3 hr • > 3 hr

15. What % of managers accidently use the wrong information, at least once a week? • 0 – 30% • 30 – 50% • Over 50%

16. What % of managers accidently use the wrong information, at least once a week? • 0 – 30% • 30 – 50% • Over 50%

17. And some more facts • 7 to 20% of an employee’s time is spent replicating answers for others • 6 to 12% of an employee’s time is spent locating information resources • < 20% of the knowledge available to the company is actually utilised • 50% of files and e-mails are stored in the wrong folders

18. Cost of inproductivity? • Direct cost is 39 to 100€ per day per employee • Indirect cost much higher!

19. What Are Key Performance Indicators (KPI)? Key Performance Indicators are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization.

20. Information? To know what? KPI’s Key Performance Indicators • Only Key when it is of fundamental importance in gaining competitive advantage and is a make or break component in the success or failure of the enterprise. • Only relating to Performance when it can be clearly measured, quantified and easily influenced by the organisation. For example, weather influences many tourist related operations – but the organisation cannot influence the weather. Sales growth may be an important performance criteria – but targets must be set that can be measured. • Only an Indicator if it provides leading information on future performance. Example: • Load factor > 80% per month • Time to market for new products < 2 months

21. CSF: critical success factor something that needs to be in place to achieve the KPI objective Critical factors/activities for success in your business Example: • install a help desk for handling complaints • Short time to market for new products

22. KPI in your dashboard • Which KPI’s for your airline/hotel?

23. Amount of data BI BI-gap Importance Bi increasingly important Time to make a decision now 20th century Year 0 BI gap

24. Information gathering decide no BI 80% 20% 50% 20% 30% Time remaining BI Total decision process time Better and faster decisions

25. Business Intelligence • Offers clear and relevant information and powerful analysis tools • To whom?

26. Used by whom? By all managers to make the right decisions in a timely manner

27. Business Intelligence is a system that uses application software and other technologies to • gather • store • analyze • and provide access to data. the process of enhancing data into information and then into knowledge.

28. Raw Data Organized Information Better Business Decisions Business Intelligence allows people to: • use corporate data to support decision-making • explore and analyze data to reveal trends within a business. q

29. About the importance of BI …. ICTmanagers consider Business Intelligence as their 1st priority of 2011 ! 75% of the services sector have BI-software. This will increase. Even the public sector, education and the health care follow. Evolution from transaction driven to knowledge driven steering of companies.

30. BI: “technical” overview Business Intelligence Intensive Program Page 30

31. ETL definition Extract, Transform, and Load (ETL) is a process in data warehousing that involves: • extracting data from outside sources • transforming it to fit business needs (which can include quality levels) • loading it into the end target, i.e. the data warehouse

32. OLAP • Enables managers to interrogate consolidated data interactively • Analytical operations include: • Consolidation (aggregation of data) • Drill-down (and display detail data) • Slicing and dicing (look at database from different viewpoints)

33. Product – Chocolate Concept of a Cube or Pivot Table Date – May 2008 Region – South East Measure – Sales Date Region Product How much Chocolate did we sell in the South East in May 2008?

34. Sales example: BI Questions • What happened? • What were our total sales this month? • What’s happening? • Are our sales going up or down, trend analysis • Why? • Why have sales gone down? • What will happen? • Forecasting & What If Analysis • What do I want to happen? • Planning & Targets

35. BusinessIntelligence business ICT Related to … CRM DM KM CPM BSC ManagementCockpit DWH ERP EIS DSS OLAP,MDDB

36. How Data Analysis has Affected Enterprise Performance Over Time

37. Tool categories BI • OLAP (Online Analytical Processing) sometimes simply called "Analytics" • Data warehouses • Data marts • Data mining (DM) • Business Performance Management (BPM) • Scorecarding, Dashboarding and Information visualization • Text mining • Executive Information Systems (EIS) • Decision Support Systems (DSS)

38. Manager as a pilot

39. Management Cockpit

40. Dashboards - A High-Level View for Executives and Managers

41. Dashboard (1)

42. Dashboard (2)

43. Reporting: WHAT is… • Olap (On Line Analytical Processing): WHY is… • Visualisation: HOW is… • Data Mining /Textmining: WHERE is…

44. What-if and forecasting • Actions pre calculations to gain insight in consequences • what-if: company specific correlations in scenarios • forecasting: predict future results based on historical data

45. The BI vendors since 2008: Strategic Partnerships PerformancePoint Server SAS Activity-Based Management SAS Financial Management SAS Profitability Management SAS Strategic Performance Management Page 45

46. Gartner Reference :Business Intelligence Platforms, 2009

47. Gartners magic quadrant 2011

48. What does Gartner say? “BI-platforms allow organisations to build applications that allow them to better understand their business”. Gartner describes leaders as “suppliers who are strong concerning coverage and depth of the functionality of their BI platform and who realise company-wide implementations, supporting a wide BI-strategy. They offer a clear proposal for woldwide implementation”

49. Evolution of BI • In the 1990s: BI was tactical • In the 2000s: it has become strategic • Next stage will be ubiquity: BI ≈ @

50. BI ≈ @ • Infrastructure provided centrally by IT • Standard across the organisation • All users make use of it • Access outside and inside the organisation • Unthinkable not to have it Business Intelligence just like e-mail