Impact_BI -Enabling Decision Making Through BI.ppt

,EnablingDecisionMakingThroughBusinessIntelligence,ExecutiveSummary,BusinessIntelligencerepresentsasignificantopportunityfortheentireorganization,BusinessIntelligence(BI)isasetofprocessesandtechnologieswhichprovidesconsistent,accuratedataandanalyticaltoolstomeetstrategicandoperationalobjectives.ThevalueofBIliesinitsabilitytomanipulatedataforthepurposeofansweringbusinessquestionsinatimelyfashion.AlthoughlargerorganizationsarethebiggestconsumersofBIproducts,demandisgrowinginsmalltomediumsizedenterprises(SMEs)tosecureacompetitiveedge.OrganizationsthathavealreadyimplementedBIhaverealizedbothsubstantialandimmediatestrategicandefficiencybenefits.,BIimprovesbusinessdecisionmakingbyfacilitatingallaspectsofenterprisedataandinformation.EnterprisesshouldexplorehowBIcanhelpexpandstrategicplanningandoperatingcapabilities.,ExecutiveSummary,ProjectobjectivesdriveBItodeliverbenefit,66%ofrespondentsreportedthatbothbusinessandITcollaboratetodecidewhethertodeployBI.RespondentstypicallyachievedbenefitsassociatedwiththosethingsthatdrovethemtoimplementBIinthefirstplace.,WhenorganizationschosetoimplementBItoachievebetterinsightintooperations,theyrealizedthatinformationbecameeasiertoaccess.Ifdataconsistency,integrationandcentralizationweredrivers,organizationsindicateddeeperinsightintodataasasignificantbenefit.Aneedforfasterprocesscycletimeresultedinincreasedemployeeproductivityacrossmostrespondents.,ThetopthreeBIbenefitsare:EaseofinformationaccessDeeperinsightintodataIncreasedemployeeproductivity,ThetopBIprojectdriversare:BetterinsightintooperationsDataconsistency,integrationandcentralizationFasterprocess/reportingcycletime,ExecutiveSummary,SuccessfulBIprojectsdependoncompanycharacteristicsandimplementationreadiness,Usethe“BusinessIntelligenceSuccessEstimationTool”todetermineyourfitwithBI,andanticipatedlevelofbenefitsandchallenges.,AssessingorganizationalfitforBIinvolvesanalyzingtwomaingroupsofindicators:DemographicandImplementationReadinessIndicators.Relativetoothersurveyrespondents,organizationswithahighfitforBIhadthefollowingfeatures:,BIbringsmorevaluetoorganizationswithcertaindemographicandimplementationreadinessindicators.Usethe“BISuccessEstimationTool”todetermineoverallBIfit,anticipatedbenefits,andanticipatedchallenges.,ExecutiveSummary,FollowthreeessentialrecommendationstoensuresuccesswithBI,ABIprojectisnotacapitalinvestmentthatisinstalledandthenworksonitsownitisanevolvingdiscipline.Deliverthemostimportantfunctionalitiestothebusinessquicklyandgraduallyincreasethisovertime.Quickwinsboostuseradoptionratesandincreasemanagementsupport.,TakeaPhasedApproachtoBI,1,EnsuringthebusinessisaresponsiblepartyintheBIprojectconsiderablyincreasesitschanceofsuccess.Involvingthebusinessby,forexample,teachinguserstogeneratetheirownreports,willmakesuccessfuloperationsmoreprobable.,InvolvetheBusinessintheProjectandOperations,2,Dataqualityiscitedasthegreatestoperationalchallengeandincorrectorinconsistentinformationleadstopoordecision-makinganduserfrustration.Havingdedicateddataqualitystaffandstrictdatagovernancepoliciesisthebestwaytomitigatethischallengeandensuregrowthinusage.,AllocateDedicatedDataQualityStaff,3,ExecutiveSummary,Obtainingexecutivesupportisthemostimportantplanningactivity.Executivesponsorshipoffersincreaseduseradoption,greateraccesstoresourcesandmindshareofthec-suite.Enduserrequirementsanalysiscomesaclosesecond,sinceaBIprojectsprimaryobjectiveistodelivervaluetoitsusers.Plantodeliverimmediatefunctionalityinunderayearandanswerafewquestionsverywellratherthantryingtoanswereverythingatonce.,AllorganizationsshouldevaluatetheirfitwithBIbeforemovingforwardwiththeproject.Ifthefitisrightandtheplanningstepsareappropriate,theprobabilityofasuccessfulprojectishigh.,AcontrolledandfocusedITplanningprocessallowsITtofittheBIprojecttobusinessneedsandtherebysatisfyendusersandmanagementalike.,Thebestprojectsaredoneinplannedandcontrolledstages,ExecutiveSummary,Maketechnicalandbusinessstaffkeyprojectparticipants,AcombinationofITandbusinessstaffcreatesaprojectteamthatunderstandsthetechnicalsideoftheimplementationandtherequirementsofthebusiness.ABIprojectisnotado-it-yourselftypeofproject.Usethirdpartyresourcesforexpertiseifitdoesnotexistinternally.BItoolfunctionalityisthemostimportantoverallvendorselectioncriterion.HighlycomplexITenvironmentsplacemoreimportanceonBItoolintegrationcapabilities.DevoteresourcesinITtodatacleansing,ensuringthattheuserneverseesbaddata.,Pilottorefinebusinessrequirementswhilegivingthebusinessapreviewofwhatthetoolwilldoforthem.EachBIprojectfeedsintothenextone.ConsiderthatBIisanongoinginitiativewhichtransformsthewaybusinessusersanalyzeandmakedecisions.,ExecutiveSummary,Operationalsuccessisachievedbyinstitutingstructureandprocedure,OngoingdataqualityisessentialinBIprojectsuccessandresultsshowthateasierandmoretrustworthydataanalysispromptsgrowthinBIusage.MakingsureaBIapplicationisservicedproperly,requiresmanagingyoursupportstaffnumberstofityourBIuserrates.AstrongtrainingprogramcanrelieveITsupportdemandsandincreaseend-useradoptionrates.Enduseracceptancealsosignifiesthattheprojectismorelikelytosucceedinthelongterm.49%oforganizationshaveaformalprocedureforBIfeatureandreportrequests.Whenusersgeneratetheirownreportstheorganizationismorelikelytorealizehighuseracceptanceandoveralloperationalsuccess.,ExecutiveSummary,ABusinessIntelligenceCompetencyCenter(BICC)willdrivegrowthinusageandimproveROI.Itmustbepermanentandcross-functional.SmallerorganizationscanformavirtualBICCwithstaffparticipatingonapart-timebasis.,ResearchMethod,ResearchMethod,TheImpactreportstudyisbasedontheinformationcollectedfrom201differentorganizations.161ITrespondentscompletedacomprehensivesurveyand40engagedinadetailedinterviewprocess.Allcompanysizes,majorindustrysegments,revenuebrackets,andBIstatuseswererepresented.,ResearchMethod,WhatisBusinessIntelligence?,BusinessIntelligence(BI)isasetofprocessesandtechnologies,BIasaprocessistheconsolidation,analysis,andapplicationofbusinessdatatoassistbusinessdecisionmakingandyieldgenuinebusinessvalue(e.g.byprovidingstrategicinsight).BIasasoftwareapplicationconsistsofavarietyoftoolsthatfacilitateBIprocessesbyprovidingbetterdata,moreefficiently,tobusinessdecisionmakers(e.g.automatedanalysisandreporting;real-timesnapshotsofbusinessperformance;analytics).,WhatisBusinessIntelligence?,Fordefinitionsoffunctionalities,seetheglossaryoftermsattheendofthisdocument.,BIprovidesdataandanalyticaltoolstomeetbusinessobjectives,WhatisBusinessIntelligence?,Themainvalueofbusinessintelligenceliesinitsabilitytomanipulatedataforthepurposeofansweringbusinessquestionsinatimelyfashion.,OrganizationswithhighannualrevenuesandmorestaffformthehighestproportionofBIadopters,Organizationswithanannualrevenueinexcessof100milliondollarsmake-up70%ofBIadopters.46%ofBIadoptershaveover1000FTEemployees.AlthoughlargerorganizationsarethebiggestconsumersofBIproducts,clientfeedbackindicatesthatthedemandforBIappearstobegrowinginsmalltomediumsizedenterprises(1000FTEs).,BIAdoption,DeployBIfunctionalitiesinorderofimportance,9,Dashboards/KeyPerformanceIndicators(KPIs),InformationVisualization,What-IfAnalysis,10,11,12,DataMining,Forecasting,LevelofimportanceofBIfunctionalitiescorrespondstotheirobservedratesofdeploymentandtheirrelevancetotheaverageenterprise.MandatoryFeatures.Presentinmorethan75%ofBIprojectsstandardpractice.TargetFeatures.Presentinmorethan50%ofBIprojectsbeneficialtomost.NicheFeatures.Presentinlessthan50%ofBIprojectsnicheapplications.,#,=Orderofimportance/rateofdeployment,DeploymentofBusinessIntelligenceFunctionalities,MostBIdeploymentsincludereportingfunctionalities,PuttinginformationintothehandsofdecisionmakersisthegoalofBI.Reportingfunctionalitiesachievethis,whichexplainstheirhighratesofdeployment.ScheduledReportingautomatesthecreationofstandardorganizationalreports.Forenterprisesthatgeneratetheirreportsmanually,scheduledreportingcutsreportproductiontime,especiallyinheavyreportingenvironments.AdHocQuerying/Reportingempowersuserstoretrieveonlytheinformationtheyneedandenablesthemtoproducetheirownsummaryreports.,DeploymentofBusinessIntelligenceFunctionalities,NeedforbetterdatacontroldependsonthecomplexityoftheoverallBIproject,Datawarehousing,dataconsolidationandbusinessanalyticsenableorganizationstogetabetterhandleontheirdataandmakemoreinformeddecisions,buttheyaremoreresourceintensivetoimplement.Datawarehousingcentralizesdataforquickeraccess,whiledataconsolidationcreatesasingleauthoritativesourceofinformationforconsistentdecisionmaking.Businessanalytics(BPM,BAM,andOLAP)addvaluebygivingmanagersbetterinsightonthecurrentandhistoricalstateofbusinessoperations.,DeploymentofBusinessIntelligenceFunctionalities,Considerorganizationneedsandtheavailabilityofresourcesbeforeimplementingnichefeatures,Dashboardsoperateinreal-timetodeliverinformationaboutthebusinessasitishappening.Theyaresuitablefororganizationsrequiringquickresponsetimes.Fororganizationsthatdonothavelargeamountsofhistoricaldata,miningdatatoestablishsignificantpatternswillbeoflimitedvalue.Whilethereisdefinitevalueinpredictingthefutureandevaluatingpossiblebusinessscenarios(e.g.sensitivityanalysis),Forecastingandwhat-ifanalysisareextrafeaturesthatshouldbecarefullyassessedforvaluebeforeimplementing.,DeploymentofBusinessIntelligenceFunctionalities,BIAdoptionDrivers,ResolvedataissuestomaximizethechanceforsuccesswithBI,BIAdoptionDrivers,Dataisutilizedineveryaspectofthebusiness.Itplaysanintegralroleineachoftheotherbusinessobjectives.OnlywithqualitydatacanBIofferorganizationsbetteroperationalinsightandstrategicplanningadvantagesoverthecompetition.,HelpfulHint:Avoidthegarbage-in,garbage-outdatapredicamentbyemployingdedicateddataqualitystaffthroughouttheBIproject.,BIadoptiondrivers:theindustryperspective,BIAdoptionDrivers,BIAdoptionDrivers,BIadoptiondrivers:theindustryperspective,BenefitsofBI,BIprojectsdeliverstrategicandefficiencybenefits,BIBenefits,StrategicBenefits:Improveddecisionmaking.Deeperinsightintodata.Improvedcustomerservice.Improvedaccuracyofpredictions.Revenuegeneration.Frauddetectionandprevention.,EfficiencyBenefits:Easeofaccesstoinformation.Increasedemployeeproductivity.Fasterprocesscycletime.Streamlineddailyworkflowsandprocesses.,Withemployeesfreefromonerousmanualintelligencegathering,theyareabletofocuswhollyonstrategicbusinessinitiatives.ThebenefitsofBIareevidentacrosstheenterprise.,SavetimeandresourcesacrosstheorganizationwithBI,BIBenefits,OrganizationsthatimplementedBItypicallyrealizedalloftheiranticipatedbenefits.Easeofinformationaccess,fasterprocesscycletime,andstreamlineddailyworkflowsalldriveincreasedemployeeproductivity.ThemostsignificanttimesavingswillbeforthosewhoworkdirectlywithBI,suchasbusinessusersrunningregularreports.EmployeeswhousetheinformationgeneratedfromtheBIsolutiontomakedecisions,buildbusinesscases,andscheduledailyoperationswillalsosavetimethroughBI.,ITandenduserssavetimewithBI,BIBenefits,BIefficiencybenefitsarerequiredtoachievestrategicimprovements,BIBenefits,Efficiencybenefitssuchasstreamlineddailyworkflowsimprovecustomerserviceanddecisionmaking.Easeofaccesstoinformationimprovesdecisionmaking,offersdeeperinsightintodataandhelpsdriverevenue.Fasterprocesscycletimeimprovestheaccuracyofpredictionsandenablesorganizationstocatchfraudulentactivityinatimelymanner.,StrategicplanninganddeliveryisimprovedwithBI,BIBenefits,BISuccess,ProjectresultsimprovewhenITandthebusinesscollaborate,ThemostcommonmodelisforthebusinessandITtojointlydecideonBIthishasproventobethemodelthatdrivesthegreatestsuccess.66%ofrespondentsindicatedthatboththebusinessandITinitiallyidentifiedtheneedtoevaluateBItogether.Insmallorganizations,ITwasmorelikelytohaveamajorroleintheBIprojectthaninlargerorganizations.,Inmanycases,BIhelpstoachievebusinessobjectivesandsavestimeforIT.Bothpartiesseepersonalbenefitandthereforeproceedwiththeprojecttogether.,“ThereareaspectsoftheBIprojectthatthebusinesswontunderstand,andtherearebusinessrequirementsthattheITpeopleshouldntguessat.”Consultant,ProfessionalServices,BIProjectSuccess,OrganizationswithmorestaffdedicatedtoBIaremoresuccessful,LargerorganizationsappeartohavemoresuccesswithBIoverall.Oneexplanationforthisisbecauselargerenterpriseswilltendtohavetheorganizationalmaturitytomanageacomplexproject/operationlikeBI.,BIProjectSuccess,Usethe“BusinessIntelligenceSuccessEstimationTool”todetermineyourfitwithBI,andanticipatedlevelofbenefitsandchallenges.,FocusoninternalclientsatisfactionforBIprojectsuccess,Ultimately,thesuccessofaBIprojectisdeterminedbytworelatedfactors:Isthetechnologyused?Arepeoplesatisfiedwithit?TheBIprojectsuccessfactorsonwhichclientsscoredthehighestwereallmeasuresofsatisfactionforthethreemajorstakeholders:management,ITdepartment;andendusers.,BIProjectSuccess,Ingeneral,morethan60%oforganizationsreportthatkeystakeholdersaresatisfiedwiththeBIsolution.Morethanhalfofprojectswereontimeandbudget.,UsepredictorsofBIprojectsuccessforawinningstarttoBI,ThecomplexityofBIprojectsmeansthattherearenoguaranteeswhenitcomestoachievingprojectgoals.However,thechancesofasuccessfulstartimprovewhenenterprisestakethepropersteps.,BIProjectSuccess,ImproveoperationalsuccessbyincreasingBIusage,OperationalsuccessismeasuredbythedegreetowhichanorganizationobtainsgreatervaluefromtheirBIinvestment.Therearetwotypesoffactorsthattrackoperationalsuccess:Growthoftheapplication.Improveddecisionmaking.,OperationalSuccess,Growthoftheapplicationcanbemeasuredbyincreaseddemandforreportsandincreasingnumbersofusers.ImproveddecisionmakingcanbemeasuredbythedegreetowhichBIgivesusersthedatatheywant,inatimelymanner,suchthattheycanmakebetterdecisions/predictionsetc.,UsepredictorsofoperationalsuccesstokeepBIrunningeffectivelyonanongoingbasis,WhileitisimportanttostarttheBIprojectoffwell,theongoingsuccessofBIrequiresadditionalefforttobeexpendedbyITinkeyareas.Thepredictorsbelowfocusontwoareas:datamanagementandsystemaccess/usage.,OperationalSuccess,EnterprisesthatexperiencehigherBIprojectsuccessalsotendedtoexperiencehighersuccesswithongoingoperations,asindicatedbythetrend-linesinthegraph.Thus,incrementallyimprovingBIprojectsuccesswillleadtocorrespondingimprovementsinoperationssuccess.TheconvergenceofthelinesshowsastrongrelationshipbetweenhighBIprojectsuccessandhighoperationalsuccess.Note:OrganizationsthathavehaddifficultBIprojectsshouldnotbediscouragedbythisdata.BIprojectsuccesshelpsoperationalsuccessbutitisnotnecessaryforit.,High,High,Low,Low,*Themaximumandminimumlinesarebothonestandarddeviationfromtheaverage.Thismeansthatover68%ofalldatawillfallsomewherebetweenthemaximumandtheminimum.,OperationalsuccessbeginswithsuccessfulBIprojects,BIProjectSuccessvs.OperationalSuccess,Plan,Implement,Operate,1.ProjectPlanning,2.ObtainingBuy-in,3.ScopeDefinition,4.Resourcing,5.VendorSelection,6.Cleanse,Pilot,Deploy,7.GainUserAdoption,8.Operations,9.Governance,Plan,Implement&Operate,Obtainingthebuy-inofmanagementisidentifiedasthemostimportantplanningactivity,withover80%oforganizationsrecognizingthisasacrucialstepinaBIproject.Thosethatreportedthisstepashavinggreatimportanceweremorelikelytoseesuccessinenduseracceptance.,Obtainingmanagementbuy-inisthemostimportantplanningactivity,Enduserrequirementsanalysisisthesecondmostimportantplanningstep,essentialtoensuringproperscopedefinition.Organizationsthatusedthirdpartyconsultationhaddecisionmakersdemandingnewformsofdata.OrganizationsthatplacedimportanceonROIanalysisalsostatedRFI/RFPsasimportant.,ProjectPlanning,Planforarealisticprojecttimeline,butdontlettheprojectdragonlongerthanneeded,MostsuccessfulBIprojects,72%,takebetween6and12months.Theseprojectswerealsomorelikelytobecompletedontime.Projectsthattookupto12monthsweremorelikelytoplaceinthetopquartileforprojectsuccess.Allprojectsthattookover2yearsplacedinthebottomhalfforprojectsuccess.Plantodeliverimmediatefunctionalityinunderayearandanswerafewquestionsverywellratherthantryingtoanswereverythingatonce.Thisincremental,phasedapproachwillminimizetheenduserlearningcurveandboostacceptance.,ProjectPlanning,ThesizeoftheBIprojectbudgetisnotanindicatorofsuccess,BIprojectbudgetsrangeanywherefromlessthan$10,000towellover$5M.Budgetspendisnotcorrelatedtoprojectsuccessandprojectsofallsizeplacedinthetopquartileforsuccess.Variabilityinprojectbudgetsismostinfluencedby:#ofBIusersFunctionalitiesdeployedTimetoimplementProjectteamsize,Projectsofallsizescanbesuccessful.Spendtheminimumthatyouneedtoinordertodeliverthefunctionalitythatisrequiredtoansweryourkeyquestions.,ProjectPlanning,*Doesnotincludeinternalresourcecosts,ROIisnottheonlywaytojustifyaBIproject,LargerorganizationstendtobemoreformalintheirBIjustification,moreoftenconductingaformalROI/costbenefitanalysis.OrganizationswithaconservativeinvestmentstrategyaremorelikelytoprepareaformalbudgetrequestandROIanalysisthanleadingedgeorganizations.,ObtainingBuy-in,Plantotakebabystepstoachievequickwins,*Percentageoforganizationsthatfoundtheitemtobemoderatelytosignificantlychallenging.,ObtainingBuy-in,ShowaneedforBI,notdesire,whenseekingmanagementapproval,ObtainingBuy-in,Developarealisticscopealignedwithbusinessobjectives,Organizationsthatareresistanttochange,orviewITasacostcenter,findprojectscopingandrequirementsanalysisverydifficult.Theseorganizationsshouldbuildinextratimeforthisphase.,ScopeDefinition,Plan,Implement,Operate,1.ProjectPlanning,2.ObtainingBuy-in,3.ScopeDefinition,4.Resourcing,5.VendorSelection,6.Cleanse,Pilot,Deploy,7.GainUserAdoption,8.Operations,9.Governance,Plan,Implement&Operate,Businessinvolvementiscrucialtoprojectsuccess,Resourcing,ManyrespondentsthoughtthatthebusinessshouldleadtheBIproject.Thepositiveaffectonsuccessishighestwhenthebusinessisresponsibleandakeyprojectparticipant.Havingthebusinessconsultedoraccountablearethenextbestalternativestohavingthemresponsible.ITcanensurethattheprojectteamdoesntoverlooktheimportanttechnicalissuesinherenttotheongoingsuccessofaBIsolution.Theproject-centricfocusofmostITdepartmentscanaddtremendousprojectvalue.,Idealinvolvementlevel,BIprojectteamsizeisinfluencedbyorganizationsize,Organizationswithlessthan400employeestypicallyallocateupto1full-timeequivalent(FTE)totheproject.Organizationswithover1000employee