Advancing Your Reporting Solution Towards an Enterprise Information Management Architecture

1. Advancing Your Reporting Solution Towards an Enterprise Information Management Architecture PRESENTATION TO: DAMA Minneapolis Users Group March 2006 PRESENTED BY: Trevor Noon

2. PURPOSE OF PRESENTATION • As the information needs of an organization expand and evolve, the supporting information architecture must be responsive to satisfy them. Most information technology groups within an organization addressed these information needs by creating subject matter or functional area reporting solutions. • However, most of these reporting solutions are not designed to provide cross-functional or enterprise information analysis. This presentation will focus on the natural evolution of reporting solutions in response to an organization’s information needs and framework of an enterprise information management architecture. • While enterprise information management encompasses both structured and unstructured data, this presentation will only address structured data.

3. Categories of Information Solutions Evolution Towards Enterprise Information Management Enterprise Information Management Architecture Summary AGENDA

4. Information Solutions Category 4 Enterprise Information Management Category 3 Subject matter or functional area reporting solutions Category 2 Transactional systems with limited integrated reporting capabilities Category 1 Transactional systems only Proportionate Number of Organizations CATEGORIES OF INFORMATION SOLUTIONS

5. Category 1 Transactional systems only CATEGORIES OF INFORMATION SOLUTIONS • As the activities of the organization increase in volume and complexity, manual processes begin impeding the pace of operations. • To support operations, transactional systems such as enterprise resource planning (ERP) applications are implemented. An ERP system automates and integrates business processes, thereby enabling the organization to significantly increase its activities. • Organizations at this stage implement transactional systems to automate their manual processes and operations, and their information needs are not very complex. • The information needed to run the business shifts from managers’ heads and becomes the data within the ERP system.

6. Category 2 Transactional systems with limited integrated reporting capabilities CATEGORIES OF INFORMATION SOLUTIONS • As the volume and complexity of activities continue to grow, managing operations requires greater monitoring and analysis. This often requires data to be extracted and manipulated from ERP and other transactional systems to fulfill information requests. • At this stage, organizations automate their business processes through the use of transactional systems and extract data from those systems to fulfill information requests. Standard reports from the ERP system do not suffice. • The extracted data is manipulated using spreadsheets or RDBMSs, to integrate and transform the data into the information that is needed. By using an RDBMS, the organization may also dabble in data warehousing by creating denormalized or aggregated tables for reporting purposes, but it may not yet have created a true data warehouse.

7. Category 3 Subject matter or functional area reporting solutions CATEGORIES OF INFORMATION SOLUTIONS • At this stage of information appreciation, a significant shift occurs within the organization. The focus on collecting and processing data about its activities becomes subservient to the desire for a greater understanding of the business. • As the demand for data and information increases, so does the need to create scalable information solutions. Most organizations turn to BI and DW technologies to address their increased information needs. • Organizations at this stage implement a data warehouse or create subject-matter-specific data marts. BI applications are deployed to individuals throughout the organization. The available information is logically grouped by business function or subject area.

8. Category 4 Enterprise Information Management CATEGORIES OF INFORMATION SOLUTIONS • Management views BI and DW technologies as enablers of the business. Decisions are based upon information instead of "gut reaction" and are monitored to determine effectiveness. Business questions often span business processes and functions. • Organizations at this stage build an information infrastructure based upon the corporate information factory or dimensional warehousing approaches. They quickly respond to requests for information and changes to the business. Information is integrated and enables cross-functional analysis.

9. Categories of Information Solutions Evolution Towards Enterprise Information Management Enterprise Information Management Architecture Summary AGENDA

10. EVOLUTION TOWARDS ENTERPRISE INFORMATION MANAGEMENT • In order to evolve towards enterprise information management, one has to understand: • Current information environment • Management’s appreciation for information and their level of sophistication to do something with it • Vision about the information needs and usage by the organization • Capacity for the organization to change • Organizational priorities • Ability to dedicate human and financial resources • Ladder of Business Intelligence (LOBI) model • Identifies natural progression of information needs and usages from basic facts to enabled intuition

11. LADDER OF BUSINESS INTELLIGENCE (LOBI) MODEL Brainwave? Enabled Intuition Domain of human brain Collaborate Understanding Validate / modify with experience Knowledge Domain of IT / Computers Information Provide intelligent content • Ladder of Business Intelligence (LOBI) model • Developed by Jim Cates • Lane, Dean. CIO Wisdom: Best Practices from Silicon Valley. Prentice Hall PTR, 1st edition (July 25, 2003). Chapter 16: Ladder of Business Intelligence: A Systematic Approach to Success for Information Technology, pp. 373 - 394 Data Integrate, order Facts

12. Integrate, order Facts LEVEL 1: FACT • Organizations achieve this level by being a going-concern • Spreadsheet or disparate data input • Organizations cannot make consistent, repeatable decisions • Data cannot be retrieved in a timely manner by business role Example: Revenue from customer XYZ in March 2005 was $550,000.

13. Provide intelligent content Data LEVEL 2: DATA • ERP or other transactional applications that captures data • Data is integrated, order facts • Data enables other applications and provides economies of scale to support costs across systems • Data can be retrieved but the data-to-information transformation process is labor-intensive; hence decision are less likely to be timely or effective Example: Invoice numbers 2231 through 2375, stored as records in the Oracle Financial Applications, represent all the revenue from customer XYZ in March 2005.

14. Validate / modify with experience Information LEVEL 3: INFORMATION • FAQs, ticker price, output of BI tools • Information is order data • As business roles link information needs to KPIs, these roles become more effective as the information is utilized • Decisions are timely but the business cannot scale, since decisions are made by the few people who have the needed experience Example: Revenue of $550,000 from customer XYZ was more than the revenue for the previous month by $50,000.

15. Collaborate Knowledge LEVEL 4: KNOWLEDGE • “What if” scenarios or information with experience: created by business rules • Knowledge is ordered information within the context of experience in similar situations • Business gains the most value from information by reusing methods, concepts, and experience across operating units • “Atomic knowledge units” make the decision-making process independent of people (these could be as simple as FAQs or as complex as artificial intelligence systems) Example: If the inventory level for product 84739 is less than 1,000, then instruct manufacturing to create 250 units.

16. Brainwave? Understanding LEVEL 5: UNDERSTANDING • Alternative business models: “what if” scenarios • Understanding is organized knowledge • Organizations that reach this level tend to outlast their competition because they gain insight into their customers’ minds and see opportunities before rivals do • Qualitative refinements of knowledge that is currently still achieved by “brain-waves” Example: Given our customers, such as customer XYZ, and the products that we sell, we can increase sales by expanding our product offering to include complementary products 1, 2 & 3.

17. Enabled Intuition LEVEL 6: ENABLED INTUITION • The “Aha!” stage: deep insight • Enabled intuition is reached when different dimensions of a situation are understood over the course of repeated encounters • “Out-of-the-box” solutions are generated • Qualitative refinements of knowledge and understanding that is currently still achieved by “brain-waves” Example: Given our extensive distribution capabilities for our products, we can enhance our business model by leveraging these capabilities to distribute products for other organizations.

18. DESCRIPTIONS OF LOBI MODEL LEVELS

19. Categories of Information Solutions Evolution Towards Enterprise Information Management Enterprise Information Management Architecture Summary AGENDA

20. ENTERPRISE INFORMATION MANAGEMENT • The two primary architectures for structured data in Enterprise Information Management are: • The Corporate Information Factory (CIF) • Dimensional Warehouse

21. CORPORATE INFORMATION FACTORY • Technical architects • Bill Inmon and Claudia Imhoff • Components • Operational Data Store (ODS) • Data Warehouse • 3rd Normal Form • Data Marts • Dimensional model • Design approach • Source systems to provide available data

22. DIMENSIONAL WAREHOUSING • Technical architect • Ralph Kimball • Data modeling approach • Dimensional / Star Schema • Design approach • Based upon user front-end access needs

23. KNIGHTSBRIDGE’S DW/BI MODEL HAS SIX CAPABILITIES REPRESENTING THE KEY MANAGEMENT LEVERS Performance and scalability – The ability of the system to respond to design points in a robust fashion. The ability of the environment to satisfy future needs at higher volumes based on proportional increases in HW, SW and human capital costs. Security – The ability of the system to maintain the required level of security and consistently across internal and external corporate users. This includes access restrictions to data, aggregated data or other aspects of the system including auditing. Reliability – The ability of the system to meet service level requirements (uptimes, response times, robustness) during operational hours as well as during maintenance periods. Performance and Scalability Security Reliability Operability – The ability of the system to be maintained by the organization at the designed cost and service level points in conjunction with sources of data and other dependencies. Master data management over time has become an important operability theme. This category includes business governance. Affordability – The ability to maintain the cost point of the environment or scale the cost appropriately. The ability to achieve cost transparency when maintaining a decision support environment including capital, non-capital costs, opportunity costs as well as “hidden” costs. Affordability Operability Flexibility Flexibility – The ability to accommodate previously unknown, new, or changing requirements without re-architecting the environment.

24. DATA FLOW WITHIN INFORMATION CENTRIC ORGANIZATIONS

25. The first release of each data warehouse project is usually longer than others Procure/install data warehouse environments (Dev/Test/QA/Prod) Develop/implement data warehouse-related business processes to take advantage of the data warehouse Develop/implement data governance and organization processes Each release should be kept timely to ensure continued organizational support (3-6 months max) Technical Release 2 COORDINATED, MANAGEABLE RELEASES DRIVE DELIVERABLES Ensure that technical releases are synchronized and coordinated within existing timelines with new business capability releases and roadmaps Business capability n Rel n Technical Release n Rel 3 Business capability C Technical Release 3 Rel 2 Business capability B Rel 1 Business capability A Technical Release 1 (Includes HW/SW & Org changes)

26. CONCEPTUAL ILLUSTRATION EACH RELEASE PROVIDES FULL CROSS-ARCHITECTURE CAPABILITIES Each release provides full cross-architecture capabilities Meta Data Analytical Tool Suite Staging Area Load Data Warehouse • Extract • Transform Application Systems Internal Data Sources Data Marts (inclusion in release to be determined) Transform Release 1 External Data Sources Release 2 Data history to be converted Release 3 (Does not map to physical assets) Release 4

27. Categories of Information Solutions Evolution Towards Enterprise Information Management Enterprise Information Management Architecture Summary AGENDA

28. SUMMARY • An organization's stage of information appreciation directly corresponds to its information architecture, the sophistication of its management team and its executives' desire to have relevant, timely and accurate information at its disposal for monitoring, analysis, reporting and decision-making purposes. • The movement from one information solutions category to the next comes from a probable combination of enlightenment due to increased information, management epiphany and new members of the management team who are advocates of BI and DW.

29. THANK YOU Trevor Noon (312) 577-0210 X 5391 tnoon@knightsbridge.com Fortune 500 companies and other large data-centric organizations turn to Knightsbridge for solutions to their most difficult data problems—problems rooted in massive data volumes or complex information challenges. Our clients rely on us to deliver actionable and measurable business results that inform decision making, optimize IT efficiency, and improve business performance. Knightsbridge data solutions focus exclusively on the information management disciplines of data warehousing, data integration, information quality, and business intelligence. With proven methodologies, the best consulting staff in the industry, industry-specific business knowledge, and deep expertise in the tools and technologies for managing complex data environments, we deliver practical solutions that reduce time, reduce cost, and reduce risk. Knightsbridge maintains offices in Chicago, San Francisco Bay Area, New York Metro, Houston, Washington, DC and London. To learn more, visit us at www.knightsbridge.com.