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Dr. James Thomann
DecisionPath Consulting
November 14, 2007
Determining the Success of
Your BI Initiative
Determining the Success of Your BI Initiative
Dr. James ThomannPrincipal Consultant
TDWI Webinar
November 14, 2007
Topics
Introduction
BI Success
Measuring BI Success
Impacts on BI
Summary
Introduction – Goal of BI
Business Intelligence (BI)
provides information to the
business in order to
achieve improved business
results – i.e. IMPACT the
business
Introduction – Need Proof
At some point you will need
to prove that your BI
Initiative has the desired
impact. Return on Investment
(ROI)
Return on Assets (ROA)
Total Cost of Ownership
Total Value of Ownership
PROOF
BI Success – Definition
Success is the difference
between what is being
achieved prior to BI and
what is being achieved with
BI
Results business
currently achieving
Results after BI
delivered
BI Success – Challenges
Challenges: What is the expected
impact of this new BI?
How will you define
success?
Can you measure
success?o It is very difficult to
extract what can be
attributed to BI
o Not all the impact may be
measurable in dollars
o Costs are very visible
and easy to measure
For whom must success
be defined and measured?
Growth due to BI
Expected Growth
BI Success – 3 Critical Areas
Business Success
Political Success Technical Success
BI Success – Business Success
It is the impact on the
business results that can
be attributed to BI
BI delivers information that
directly contributes to the
organization meeting its
drivers, goals, strategies
and tactics
Success can be measured
at Enterprise, Division,
Departmental, and
Application levels
Business Success
BI Success – Political Success
It is delivering the right
information to the people
who need it
These are the people who
the BI applications were
designed and constructed
for
Others may be drawn to it
The applications provide
access, are available, and
the customers are happy
with them
Political Success
Business Success
BI Success – Technical Success
Using the right technology
for the “problem” being
solved
Using the chosen
technology correctly
Everyone has the ability to
use the technology as
designed
Deals in reach, range,
maneuverability, capability,
and quality
Business Success
Political Success Technical Success
BI Success – Failing is Easy
If failure occurs in one
success area, then …
Business Success
Political Success Technical Success
BI Success – Failing is Easy
If failure occurs in one
success area, then
eventually it will occur in all
three
It may not be possible to
concentrate on all 3 areas
at the same time
If not start with the Political
area
Business Success
Political Success Technical Success
BI Success – Proving It
ROI (for example) can not
be calculated without data
Where does the data come
from? – It needs to be
measured and collected
If the expectations for the BI
initiative are unknown, then
how can anything be
measured
SURVEY1.2.3.4.5.6.7.8.9.10.
Measurement
BI Success Data
Impact Measurement Results
needed
for
BI Success – Common Metrics
These may be OK, but … Which metrics actually
provide the data that tells
you when you are meeting
the customers’ expectations
Are the baselines known?
Measuring BI Success – GQMM Approach
BI’s Information
Environment is developed
using the GQMM Approach
GQMM stands for: Goal
Question
Metric
Measure
BI’s Information Environment
BI Success Data
Mining Data
Exploration
Metric Data
Analysis
Reports
Review
SURVEY1.2.3.4.5.6.7.8.9.10.
Measurement
Measuring BI Success – Goals
The organization’s goals for
BI
What are the expectations
for BI?
Success goals should be
from all 3 areas: Business,
Political, and Technical
Analyze & Act
Measure
Goal
Question
Metric
Measuring BI Success – Questions
The questions define the
details of what needs to be
known about the goals for
BI Success
The answer to these
questions provide the tools
to determine if BI is
successful for not.
Analyze & Act
Measure
Goal
Question
Metric
Measuring BI Success – Metrics
The metric defines the form
and content of the answer
or part of the answer for
each question
It defines: The subject, quantum,
strata, and application
The units of measure and
their standards
Any needed algorithms
The same metric may be
needed for more than one
question
Analyze & Act
Measure
Goal
Question
Metric
Measuring BI Success – Measures
The measures are the data
items required to derive a
metric value.
Each measure may support
multiple metrics
They must conform to: Standards for the units of
measure
Any related business
context Analyze &
Act
Measure
Goal
Question
Metric
Measuring BI Success – Summary
BI can be considered its
own “enterprise”
A BI Initiative needs its own
information in order to be
successful
GQMM is the basis of
almost every successful BI
Approach
Constraints require that the
approach be simpler for BI,
yet comprehensive over
time
Analyze & Act
Measure
Goal
Question
Metric
Impacts on BI – Time
Success will not be
achieved at once, it takes
time
Success measurement is
not done just once, it must
be done continuously over
time
It should continue as long
as the BI application is
actively usedTime – Months
Resu
lts –
$
BI Success
Costs
Impacts on BI – Many Applications
Cost of Measurement
Problems of separate
efforts: Funds
Overlap
Etc.
One measurement program
for the success of all BI
Facilitates looking at overall
success, each application,
and managing the costs of
measurement
Data Warehouse
Under Construction
Metric CubeData
Mart
Custom Tables
Metric Cube
Flat Files
Impacts on BI – Program Management
Managing BI as a Program,
rather than a series of
separate projects, also
facilitates measuring the
success of the BI Program,
since Program management
manages BI as a single
effort with many
components
Data Warehouse
Under Construction
Metric CubeData
Mart
Custom Tables
Metric Cube
Flat Files
Data Warehouse
Data Warehouse
Under ConstructionUnder Construction
Metric CubeMetric CubeMetric CubeData
MartData MartData Mart
Custom Tables
Custom Tables
Custom Tables
Metric CubeMetric CubeMetric Cube
Flat FilesFlat FilesFlat Files
Impacts on BI – Also Impacted
This effort also helps the BI
Initiative to manage: Expectations
Quality
Change
Growth
Improvements
Etc.
Program Management
Project Management
Change M
anagem
ent Q
ua
lity M
ana
ge
me
nt
Data Warehouse
Under Construction
Metric CubeData
Mart
Custom Tables
Metric Cube
Flat Files
Data Warehouse
Data Warehouse
Under ConstructionUnder Construction
Metric CubeMetric CubeMetric CubeData
MartData MartData Mart
Custom Tables
Custom Tables
Custom Tables
Metric CubeMetric CubeMetric Cube
Flat FilesFlat FilesFlat Files
Summary
BI Success is the difference
between what is being
achieved prior to BI, what is
being achieved after BI,
less any expected growth
BI Success has 3 critical
areas: Business, Political,
and Technical
Success can not be
guessed at, it must be
measured.
GQMM is a practical
approach to develop the
appropriate metrics and
measures
Determining the Success of HP’s
BI Initiative
29
BI/EDW GOALS
• Single source of all information used for BI
• Global scope for analytics for KPIs, customer
understanding, Supply chain, channels etc.
• Source data once
• Enable all operational managers to directly benefit from BI
• Extend to suppliers and customers
30
Production
Control
MRP
Inventory
Control
Parts
Management
Logistics
Shipping
Raw Goods
Order Control
Purchasing
Marketing
Finance
Sales
Accounting
Management
Reporting
Engineering
Actuarial
Human
Resources
Legacy Applications + Datamarts = Chaos
• Problematic data integration
•72 ERPs
•,22,000 SAP extracts
• 35 EDWs
• Over 762 BI assets i.e. data mart sprawl
• Data metrics, meanings and
uses
• Lacking enterprise data
model/warehouse
Where we started in 2005
31
Where we will be by the end of 2008
Production Control
MRP
InventoryControl
Parts Management
Logistics
Shipping
Raw Goods
Order Control
Purchasing
Data
Warehouse
Enterprise Data Warehouse = Simplification
Principles
• Obtain data once and at the source
• Data is complete and detailed
• Global scope
• Define, model, and map all data
• Ensure all data has integrity
• Provide complete access
• Flexibility and scale
Single
version of the truth
32
HP IT EDW project:
Enterprise data warehouse strategy
Time
Priority
Customer
Sales
Shipments
Product
Customer
Global revenue
unit—margin30 April 2006
Dollarized
Incidents
Tech
support
Call details
Service
Contracts
Finance
September 2005
Supply chainGap
resolutionContinuous
improvement2008
700+ Data Marts and 35 Data warehouses (September 2005)
1
CRM/MRM
1000+ reports
80,000+ reports
180,000+ reports
350,000+ reports
300 users
on new system
50,000 users
EDW
33
Governance – Global Business Intelligence
Steering Committee• Representatives from all business groups, geographies, corporate and IT
• Central point of authority over initial and continuing MDM, reporting, BI solutions and
infrastructure planning groups and goals setting
• Measure achievement of those goals on quarterly basis
Global BI
Exec SteeringCommittee
Finance &
Corp Functions
IPG
PSG
GO
Marketing
Services
Sales
*Direct
TSG
EMEA
APJ
Americas
WW
*Indirect
Data Quality
Supply Chain
IT Mandatory
Work
34
Determining the success
• Technical Success Using the right technology for the “problem” being solved
Everyone has the ability to use the technology as designed
• Political Success It is delivering the right information to the people who need it
Others may be drawn to it
The applications provide access, are available, and the customers are
happy with them
• Business Success Has impact on the business results that can be attributed to BI
BI delivers information that directly contributes to the organization
meeting its drivers, goals, strategies and tactics
Success can be measured at Enterprise, Division, Departmental, and
Application levels
35
Logical View of EDW
Browser eMail PDA-?
Portal (Presentation/ Security layer)
Dashboards Standard reports
Reporting Engine & Analytics
Ad Hoc Queries
Source systems
Integration layer (ETL = Extract, Translate, Load)
Enterprise Data Warehouse
(integration & centralization of data stores)
Transactional / operational systems
Windows/Linux/Unix
HP/UX
1 Neoview EDW
256 CPU 300TB
Windows/ .Net
36
Technical success criteria
• Meeting decommissioning schedule of
data marts
• Providing better/trusted data
• All managers have logins and can do ad
hoc, pre-planned analytical queries and
reporting queries
37
Political success
• All managers that are given access are using it
• All managers given access to the EDW complete training on its use and
how to create their own ad hoc queries
• All managers given access are doing ad hoc queries in addition to
standard daily, weekly, monthly and quarterly queries
• Managers who have switched from decommissioned data marts to EDW
are:
– happy with the switch
– are getting more and better decision-enabling data.
• Managers still using yet-to-be-decommissioned data marts want access
to the EDW.
38
Business success
• Supply chain efficiency has risen
• Cost of product has gone down
• Revenue predictability has improved
• Complete 360° view of every customer
– Every product, purchasing channel, contract,
revenue, profitability, trends etc.
• Constantly updated KPIs are visualized for management
• Analytical detection of events affecting revenue
• Optimized product, options and component rationalization
• Etc.
39
Questions??
40
Contact Information
• If you have further questions or comments:
Jim Thomann, DecisionPath ConsultingJimThomann@aol.com
Jim Henry, HPjim.henry@hp.com
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