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Business Intelligence. How To Avoid Analysis Paralysis And Create A Competitive Advantage. Richard Vaughn Suporn Jantastoo Rajesh Gopalsamy. Business 2005: Hostile Environment. Profit pressure Vicious competition Empowered consumers Internet services

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    1. Business Intelligence How To Avoid Analysis Paralysis And Create A Competitive Advantage

    2. Richard Vaughn Suporn Jantastoo Rajesh Gopalsamy

    3. Business 2005: Hostile Environment • Profit pressure • Vicious competition • Empowered consumers • Internet services • B2B, tighter integration with partners • Massive data accumulation • Governmental interference • How are you going to manage?

    4. It’s a Jungle Out There – Are You Lost?

    5. Business Intelligence:GPS for Business

    6. Sounds Nice – What Is It? “Current literature on BI has proved to be fairly sketchy and theoretical. There is no generally agreed conception of BI, but, rather, each author has promoted his or her own idea of its connotations.” “The term is used by different pundits and software vendors to characterize a broad range of technologies, software platforms, specific applications, and processes.” Hannula, Pirttimaki “Business Intelligence. Empirical Study on the top 50 Finnish Companies”. Journal of American Academy of Business. Cambridge; Mar 2003. Vitt, Luckevich, Misner in “Business Intelligence”. Microsoft Press: Redmond. 2002

    7. BI Evolution BI is an evolving area derived from: • Need to manage the massive accumulation of data from OLTP, OLAP, CRM, ERP, legacy systems, external data and other sources • Need to integrate, analyze, transform data across the enterprise for decision support • Need to adapt to rapidly changing business environment, competition, reporting regulations • “Making better decisions faster” Vitt, Luckevich, Misner in “Business Intelligence”. Microsoft Press: Redmond. 2002

    8. Business Intelligence (BI) • “The processes, technologies, and tools needed to turn data into information, information into knowledge, and knowledge into plans that drive profitable business action. • Business intelligence encompasses data warehousing, business analytic tools, and content/knowledge management” • $75 billion market by 2005 • 2nd only to web portal investment (Forrester) Source: the Data Warehouse Institute Faculty Newsletter, Fall 2002

    9. Sounds Nice – How Do We Do It?

    10. Isolated silos

    11. Take action Measure results Gain insight Clean data

    12. Is It Business Intelligence? Does it: • integrate data, • allow user queries, • adress a business concern and • enable better decisions faster?

    13. BI Segments • Information Delivery • Analysis and Reporting • Visualization • Analytics • Data Mining Moving from applications to services model Best of breed or integrated solution?

    14. BI Vendors

    15. BI Best Practices • Define the business case carefully • Cost-benefits analysis (?intangibles) • Alignment with business goals • Management support • Business representation at every stage • Change, vendor and project management • Clean Data! • Technology (last!) Does this look familiar? Moss, Atre. Business Intelligence Roadmap. Boston, MA: Pearson Education, Inc., 2003

    16. BI Implementation “A staggering 60% of BI projects end in abandonment or failure because of inadequate planning, missed tasks,missed deadlines, poor project management, undelivered business requirements or poor quality deliverables.” Moss, Atre. Business Intelligence Roadmap, p. 5. Boston, MA: Pearson Education, Inc., 2003

    17. Pitfalls for BI Projects • Misunderstanding the complexity • Cross-organizational projects are different • Missing/unwilling business representation • Poor sponsor choice (weak or no sponsor) • Poor staff/project management or skills • No iterative development methodology • No business analysis • Not understanding data/metadata Moss, Atre. Business Intelligence Roadmap, p. xxi. Boston, MA: Pearson Education, Inc., 2003

    18. Risk Assesment • Low Risk: supports business workflow seemlessly • Medium: some manual intervention • High: significant manual intervention • Technology • Complexity • Integration • Organizational • Project Team • Financial Investment Moss, Atre. Business Intelligence Roadmap, p. 41. Boston, MA: Pearson Education, Inc., 2003

    19. Implementation • IDC survey of 400 BI projects • 1/3 failure • 1/3 adequate • 1/3 successful • Risk of delay, decreased functionality and failure increases with organizational size and BI complexity Business Analytics Implementation Challenges: Top 10 Considerationsfor 2003 and Beyond, January 2003 IDC #28728

    20. Budget Data quality User expectations Culture change Time to implement Data integration Training/educ ROI case Business rules Sponsorship 10 Biggest BI Challenges Business Analytics Implementation Challenges: Top 10 Considerations for 2003 and Beyond, January 2003 IDC #28728

    21. BI: IT vs Management • Management focused on training and education • IT focused on data quality and culture change • User expectations and training needs INCREASE with acceptance of BI • Data warehouse and BI investment GROWS over time Business Analytics Implementation Challenges: Top 10 Considerations for 2003 and Beyond, January 2003 IDC #28728

    22. Bottom Line • Huge amount of data to monitor • Rapidly changing business environment • Pace of business is increasing • Increased reporting burden • Data can be transformed into better, faster decisions • You need BI to manage your enterprise and stay competitive.

    23. Canadian TireCompany Business Intelligence (Richard Ivey School of Business. Business intelligence strategy at Canadian Tire,(9B03E019)

    24. Four Portions of CTC Case Study • CTC Business Background • IS Problem at CTC • BI make IS better, cheaper and faster • BI champion

    25. Company Background • The company was founded in 1922 • More than 45,000 employees • More than 1,000 stores and gas bar operations across Canada

    26. Business line • “Canadian Tire Retail (CTR) was one of the best-know Canadian retailers, with 390 associate dealers owning and operating 430 stores” • Canadian Tire Financial Services (CTFS) ( ourstory.html.accessed: August 22, 2003)

    27. Business line (con’t) • Canadian Tire Petroleum (CTP) • Part Source- chain of specialized automotive parts stores • Mark’s Work Wearhouse

    28. Financial Performance 2003 (

    29. “We are growing 2003 was a year marked by an unwavering commitment to the initiatives that will deliver the goals of our five-year Strategic Plan. We produced record results and are financially stronger.We are delivering on our foremost priority – superior shareholder returns. And we are growing.” (Wayne C. Sales President & Chief Executive Officer at CTC)

    30. Four Portions of CTC Case Study • CTC Business Background • IS Problem at CTC • BI make IS better, cheaper and faster • BI champion

    31. From 2003 to 2005 CTC IT strategy focused on simplification, integration and cost-cutting. Therefore, the IT group faced 7 challenges: Training hard-working people to have the right skill set for future programs IT costs were higher than industry standard Business users were not responsible for their IT costs IS Problems at CTC

    32. IS problem at CTC (con’t) 4. Project priority was not set for using business value 5. Adding new systems without consideration of global cost 6. IT reacted only to short-term needs 7. “Shadow IT” business unit groups were not managed and considered in IT cost

    33. Four Portions of CTC Case Study • CTC Business Background • IS Problem at CTC • BI make IS better, cheaper and faster • BI champion

    34. BI: Chaos at the start • In 1994 CTC started BI, developing an information warehouse (IW) in order to change CTR’s image and role from that of a wholesaler to that of a retailer • BI became fragmented and IW evolved on old infrastructure and a poor data model • Multiple independent data sources, inaccurate data, failing architecture, lack of standards

    35. Businessusers Launcher Report Developer Current BI Environment Report Developers Information Warehouse (IW) User Request Source system Extract/ Transform/ Load (ETL) Businesssupport CTAPS Competitive Data CTR online MWW PartSource Reporting and ad hoc analysis Independent Data Source

    36. Businessusers Future BI Environment ABC M/models Consolidations Plan &Budget Intranet Presentation Layer BI specialists Supply Chain Data Mart Financial Data Mart Intranet Presentation Layer Source system Extract/ Transform/ Load (ETL) Performance Dashboard CTR Portal Vender Data Mart Information Warehouse (IW) Marketing Data Mart HR Data Mart CTAPS, PeopleSoft, Equity, CTFS, HR, CTR online, WWW, Part Soft, Other Retail Science: Super users Meta Base

    37. Quick Win Projects “These projects consist of short-term actions that IT could take to improve BI capacities and to provide users with new information” Business intelligence strategy at Canadian Tire, page 9

    38. Quick Wins • Access to daily sales promotional data • Market basket analysis • Forecasting • Pricing optimization by region • Price competitiveness analytics, brand analysis • Incremental successes were key, but starting to block overall plan!

    39. New BI program goals • Develop an enterprise philosophy (Governance) • Foster a culture valuing high data quality • Support and enable the CTR business strategies and IT strategies • Improve BI efficiency through cross-functional synergies • Define and implement the technology changes to enable and sustain BI and IW • Define and implement organization changes Business intelligence strategy at Canadian Tire,(9B03E019), page9

    40. Four Portions of CTC Case Study • CTC Business Background • IS Problem at CTC • BI make IS better, cheaper and faster • BI champion

    41. BI Champion • Andrew Wnek, CTC CIO, worked with CTC system since the mid-90s • He lead the initial development of theIW and FRAG- separated BI of CFO for CTR • He wanted to restructure BI environment at CTC in 2005

    42. How to make it successful • According to Andrew Wnek perspective, there are four areas to foster BI system • The restructuring of the IT function to include a specific focus on retail IT • The development of an IT vision and IT strategy • The engagement of Cap Gemini Ernst &Young to assess CTR’ s BI effort • The assignment of a lead business consultant to the BI project Andrew Wnek SVP IT & CIO

    43. Conclusion • Secured the support of top management (Wnek-Project Champion) • Redesign business process before technology selection • Buy in vendor experience (Cop Gemini Ernst &Young) and let employees learn • Implement Incrementally • Include users on the development team ( Ashok Subramanian and Mary C. Lacity. Journal of Information Technology: Managing client/server implementations: today’s technology, yesterday’s lessons, page 169-186. 1997)

    44. Maximizing Profitability – The Frank Russell Company • One of the world’s leading investment managers, with assets under management (AUM) of more than $66 billion • Some of the largest institutional investors around the world turn to Russell to guide investment over $1 trillion worldwide • Founded as a small brokerage firm in 1936 by Frank Russell in Tacoma, Washington. • In 2002, it was ranked 11th in the nation in fortune magazine’s annual list.

    45. The Frank Russell Company • Data and decisions fragmented across business lines • Data stored in different formats • Different databases • No ad-hoc query, manual extraction & formating • TOO SLOW and EXPENSIVE

    46. Business requirements • Timely Information needed to manage day to day operations • Business users need access to predefined tabular reports in which they could make simple changes • Analysts needed quick responses for new business questions to protect revenue as best as possible • A better solution was essential to moving the business forward

    47. Picasso Solution Picasso Architecture

    48. Picasso Sample Report

    49. Picasso Solution Benefits • Reduction in the time spent in gathering operational data • Everyone has access to the information within the first five minutes of the workday • The time required to develop a new report has also improved radically • Each business user has direct and faster access to the data needed to support individual decision making • Ability to rapidly prototype the solution

    50. Einstein Solution – Building on Success • Einstein was launched in May 2001 to support the analysis of revenue from trades performed on behalf of money managers and to study profitability • The institutional brokerage business unit planned to use Einstein to improve its ability to manage product profitability and vendor relationships • The project was less complex than Picasso and required a small team to implement