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BI – The Strategy and the Reality

BI – The Strategy and the Reality. Craig Erskine Mighty River Power. November 2009. Background. A brief history of MRP. An old …. but relatively new …. company ECNZ past Deregulation in 1999 Mighty River Power formed - SOE Vertically Integrated Gentailer http://www.mightyriver.co.nz/.

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BI – The Strategy and the Reality

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  1. BI – The Strategy and the Reality Craig Erskine Mighty River Power November 2009

  2. Background

  3. A brief history of MRP • An old …. but relatively new …. company • ECNZ past • Deregulation in 1999 • Mighty River Power formed - SOE • Vertically Integrated Gentailer • http://www.mightyriver.co.nz/

  4. A brief history of MRP • Retail brand = Mercury Energy • http://www.mercury.co.nz/Default.aspx • 4 main Divisions • Generation – Hydro, Thermal, Trading • Geothermal – Generation, Development • Retail – Mercury, Metrix • Corporate

  5. MRP’s original BI strategy

  6. MRP’s original BI strategy - timeline • Early 2005 – External Consultants contracted to develop MRP’s BI vision and roadmap • June 2005 - BI Strategy signed of by SMT • August 2005 – Subject areas identified and prioritised • October 2005 – ISG ratification of proposed Architecture • Nov ember 2005 – COGNOS selected by users as the preferred BI tool • January 2006 – Small BW pilot ran

  7. MRP’s original BI strategy - review • Clear and evident need for a BI strategy and roadmap • Many data repositories and reporting mechanisms • Developed in isolation and cater to info requirements of specific business units • Manual processes of data gathering and reporting • Different versions of the truth • Objectives of the BI strategy and roadmap • Unify and improve transparency of info storage, applications and accessibility • Integrate data from disparate systems, develop an unambiguous understanding of the information • Serve the information needs through automated reporting mechanisms • Provide accurate and timely information to enable better decision making

  8. MRP’s original BI strategy - review • Initial work leading up to the strategy was consultative and reasonably robust • Seemed like there was a good platform from which to build from • July 2006 -Project BINGE launched … with some degree of fanfare … to implement the BI roadmap • Business • Intelligence • Next • Generation • Environment

  9. MRP’s original BI strategy - review • BINGE – A multi-staged project designed to extend over 2 years • Broken down into 12 prioritised subject areas

  10. Outcomes of BINGE • Financial Performance – Sept 2006 • Completed within 4 months . Good user take-up. • Implemented BW 3.5 – data extracted from R/3 • GAM – Dec 2006 • Completed within 5 months but little user take-up • Implemented BW 3.5 – data extracted from Maximo (maintenance system) • CAP • Failed to deliver • Initially implemented BW 3.5 – data from various trading / customer systems • Financial Forecasting – Jan 2007 • Completed within 5 months. Good user take-up. • Implemented BPS – Imbedded Excel planning for Budgets and Forecasts

  11. Failings of BINGE • Strategy didn’t match the “internal temperature” of MRP • Rise of the federated business model • Too large an investment to swallow • Too big a program • Too slow to deliver subject areas • Loss of business / SMT interest • Lacked strong business ownership and drivers • Driven too much by external project partners • Poor expectation alignment / management

  12. Failings of BINGE • Started with an unresolved debate about preferred tools • Insufficient thought about post-Go Live support models • Competing initiatives stretching resourcing • Data “dump” into staging DB

  13. A strategy within a strategy - Finance BI strategy

  14. Rise of the Finance business unit • Development of a strong Finance team • 2004 = Combined on R/3 system and establishment of centralised Finance function across MRP • 2005 = Enhance core R/3 functionality and extend modules offered • Finance Vision established • Add value to the business by providing, relevant, quality and timely financial information and advice to customers • Be proactive in finding solutions to financial issues, improving business processes and enhancing systems • Be the business adviser of choice to our customers • To get out from behind the desk and be actively involved in our clients business • To minimise low value add finance activities • Kill our Excel addiction

  15. Rise of the Finance business unit Business Units IS • Finance • FSI • Developers • Func Specialists • Creation of permanent Financial Systems & Improvements team • Liaison between end users and IS • Ownership of the key finance systems • Operations and support • Drive the development path

  16. The reality • Start of the Finance BI Strategy … major stepping stones • Major stepping stones • A robust core financial transactional capability – SAP R/3 & ECC • A flexible and consistent multi-dimensional reporting capability – BW3.5 • An integrated, aggregated and multi-dimensional enterprise wide planning capability - BPS

  17. The reality • Further steps in the Finance BI Strategy • Now • An enhanced reporting capability and user experience – BI7 • An intuitive and targeted report visualisation capability – Portal Dashboards • An automated and targeted report dissemination capability – Portal Broadcasting • A dynamically linked management summary capability – High level Web reports • Future • An integrated and automated management and financial consolidation capability – IP or BPC-Cons • An enhanced planning capability and user experience – BPC-Plan or ??? • A high level financial scenario analysis capability – IP, BPC-Plan or BPC-Cons

  18. Finance BI strategy – Unexpected opportunities • Large scale Construction projects • BEx enabled detailed project reporting packs • Non-Financials • Leads on to Key Business Driver planning as opposed to straight $s • Green House Gas reporting • Need for a fast, simple but robust solution • Joint Venture planning • Support semi-dynamic ownership scenarios

  19. MRP’s currentBI strategy

  20. MRP’s current BI Strategy • Pragmatic BI strategy that takes advantage of our sunk investment in our key technologies but pulls them into a more clearly coordinated and standardised approach. • Re-use components of our current BI environment where it makes sense to do so • Implement … if possible a new common reporting tool … which is agnostic to the underlying technologies.

  21. MRP’s current BI Strategy • Advantages of this approach • Avoids hefty re-implementation costs • Immediate reporting capability • User driven • Chunking of BI development initiatives • Minimise operating costs • Consistency and flexibility • Reduced time to deliver • Technology proven in MRP

  22. MRP’s current BI Strategy • Looking at soft re-launch • Focus on strong business opportunities …. As opposed to an Enterprise wide initiative • Recognising the need for multiple systems / databases in the landscape • Combining rather than replacing • More about getting the capability going … as opposed to any one particular tool • A best fit approach between SQL and BI • Trialling Business Objects as an agnostic reporting tool • Consistent user tool and experience

  23. Lessons Learnt

  24. Lessons learnt • Must have a strong business owner • Otherwise don’t start • Let business need drive the development path • IS can promote and encourage • IS can’t lead it • True systems ownership • Purchasing the tool is just the initial outlay • True investment is in strong support structure • Top down if possible • But if you can’t get it, ground-up can work • Leverage each BI developments • How can we take this a little further

  25. Lessons learnt • Invest in good people • It is their smarts and creativity that is the engine of your strategy • Need to be both pragmatic and realistic • Don’t get hung-up on what convention dictates • Something is better than nothing • Strong vision – otherwise chaos can slip in • Not a “least cost approach” • But yet to see that prevail in reality • Need to put the lolly at the cave opening • How are you going to tempt them in ?

  26. Lessons learnt • Big Bang approach is highly risky • Expensive, time-consuming, difficult to maintain momentum • Business attention is more like a few months … rather than years • Tools and licensing are expensive • Need to engage the vendor in the bigger picture discussion • Process can be challenging for users • Comfort levels will impact take-up • Clarity of results can be unwelcome at the lower levels • Look for the leading lights and work with them to grow the offering

  27. Lessons learnt • Excel has a place !! • Combined BEx downloads and Excel Macros • Eliminate the re-keying • Improve the existing … as opposed to fully replacing • Weaning … a less riskier approach

  28. Questions

  29. MRP’s BI Architectures

  30. BINGE Architecture - Initial

  31. BINGE Architecture - Transition

  32. MRP’s current BI Architecture

  33. Contacts • Craig ErskineFinancial Systems & Improvements ManagerPh: 09-580-3602Mob: 027-480-4753craig.erskine@mightyriver.co.nz

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