Successfully Leveraging Information into a Specific Action Peter McCallum

Successfully Leveraging Successfully Leveraging Information into a Information into a

Specific ActionSpecific ActionPeter McCallumPeter McCallum

AgendaAgenda IntroductionIntroduction Data Warehouse Benefit Realisation Data Warehouse Benefit Realisation

ResearchResearch Key Learning from that ResearchKey Learning from that Research Real Life Examples of Analytical Based Real Life Examples of Analytical Based

Work ProcessesWork Processes Automated KPIs in a Retail environmentAutomated KPIs in a Retail environment Plan Optimisation application for a TelcoPlan Optimisation application for a Telco Intelligent Invoice Analysis in an AirlineIntelligent Invoice Analysis in an Airline

SummarySummary

IntroductionIntroduction Who am I?Who am I?

18 years experience in the IT industry18 years experience in the IT industry First 8 years in bespoke software First 8 years in bespoke software

developmentdevelopment ““Discovered” Business Intelligence in 1998Discovered” Business Intelligence in 1998 Spent the last 10 years working exclusively Spent the last 10 years working exclusively

in BI & data warehousingin BI & data warehousing

Introduction (cont’d)Introduction (cont’d) Why Business Intelligence?Why Business Intelligence?

BI is one area of IT where real business BI is one area of IT where real business value can be deliveredvalue can be delivered

……. But not always. But not always A particularly challenging project made me A particularly challenging project made me

ask “Why do some BI initiatives deliver far ask “Why do some BI initiatives deliver far more benefit that others?”more benefit that others?”



Work ProcessesWork Processes Automated KPIs in a Retail environmentAutomated KPIs in a Retail environment Intelligent Invoice Analysis in an AirlineIntelligent Invoice Analysis in an Airline Segmented call routing in a TelcoSegmented call routing in a Telco

SummarySummary

DW Benefit RealisationDW Benefit Realisation Back to schoolBack to school

Enrolled in MCOMEnrolled in MCOM Bright Futures Enterprise ScholarshipBright Futures Enterprise Scholarship

Thesis on DW Benefit RealisationThesis on DW Benefit Realisation Qualitative approachQualitative approach Exploratory studyExploratory study Sample of organisations that had recently Sample of organisations that had recently

implemented a DWimplemented a DW Interviewed Business owners and IT Interviewed Business owners and IT

representativesrepresentatives Data analysed using Grounded TheoryData analysed using Grounded Theory

DW Benefit RealisationDW Benefit Realisation The benefits realised by each of the The benefits realised by each of the

organisations varied hugelyorganisations varied hugely One organisation recouped their entire One organisation recouped their entire

investment in just 2 months of operationinvestment in just 2 months of operation Whereas another organisation slashed Whereas another organisation slashed

their planned BI program significantly after their planned BI program significantly after realising few benefitsrealising few benefits

Why the difference?Why the difference?



Work ProcessesWork Processes Automated KPIs in a Retail environmentAutomated KPIs in a Retail environment Intelligent Invoice Analysis in an AirlineIntelligent Invoice Analysis in an Airline Segmented call routing in a TelcoSegmented call routing in a Telco

SummarySummary

Research Findings Research Findings DW Benefit Realisation Analytical FrameworkDW Benefit Realisation Analytical Framework

Environment

Project InitiationOrganisational Readiness

Project Delivery

Benefit Monitoring System Use

Perceived Benefits

Research FindingsResearch Findings # 1. Supporting Business Process # 1. Supporting Business Process

““The more that the use of the data The more that the use of the data warehouse can be embedded into the warehouse can be embedded into the business process being supported, the business process being supported, the more likely it is that benefits will be more likely it is that benefits will be realised”realised”

““Operational business processes tend to Operational business processes tend to realise the benefits of data warehousing realise the benefits of data warehousing more readily and more quickly than tactical more readily and more quickly than tactical or strategic business processes.”or strategic business processes.”

Research FindingsResearch Findings # 2 External & Contextual Influences # 2 External & Contextual Influences

EnvironmentEnvironment State of IndustryState of Industry Level of Government InterventionLevel of Government Intervention

Organisational ReadinessOrganisational Readiness Existing IT SystemsExisting IT Systems Information Sharing cultureInformation Sharing culture Analytical competency of usersAnalytical competency of users

Project InitiationProject Initiation Motivation Motivation Project SponsorProject Sponsor

Research FindingsResearch Findings # 3. Strategies to increase Benefits # 3. Strategies to increase Benefits

realisedrealised Focus on increasing use of DWFocus on increasing use of DW Providing superior training & supportProviding superior training & support Maintaining high level of business Maintaining high level of business

involvementinvolvement Communicating with the businessCommunicating with the business Ensuring data quality is goodEnsuring data quality is good Achieving a high level of system qualityAchieving a high level of system quality


ResearchResearch Key Learnings from that ResearchKey Learnings from that Research Real Life Examples of Analytical Based Real Life Examples of Analytical Based


SummarySummary

Automated KPI SystemAutomated KPI System Large hardware retail chain Large hardware retail chain Major business improvement programMajor business improvement program 12 Store Level KPIs identified 12 Store Level KPIs identified

Year on Year RevenuesYear on Year Revenues Gross MarginsGross Margins Stock TurnoverStock Turnover Out of StocksOut of Stocks ……

Automated KPI SystemAutomated KPI System Calculated for each branch on a Calculated for each branch on a

monthly basismonthly basis Results made available online via Results made available online via

intranetintranet Posters printed and displayed in each Posters printed and displayed in each

branchbranch Staff were paid bonuses on Staff were paid bonuses on

achievement of KPIsachievement of KPIs

Automated KPI SystemAutomated KPI System Technologies utilised:Technologies utilised:

Conscious decision to leverage Conscious decision to leverage technologies already in usetechnologies already in use

Data sourced from Data sourced from OLAP CubesOLAP Cubes Oracle FinancialsOracle Financials Manually maintained spreadsheetsManually maintained spreadsheets

Microsoft SQL ServerMicrosoft SQL Server Microsoft ExcelMicrosoft Excel Microsoft IIS & Active Server PagesMicrosoft IIS & Active Server Pages

Automated KPI SystemAutomated KPI System Major BenefitsMajor Benefits

Production & Distribution of KPIs was Production & Distribution of KPIs was entirely automatedentirely automated

System became part of the regular monthly System became part of the regular monthly reporting processreporting process

Branch management & staff responded to Branch management & staff responded to the challengethe challenge

SignificantSignificant cost savings were achieved cost savings were achieved




SummarySummary

Plan OptimiserPlan Optimiser Mobile Telecommunications OperatorMobile Telecommunications Operator Committed to launching a new planCommitted to launching a new plan Designed to increase revenue by Designed to increase revenue by

increasing the footprint within the increasing the footprint within the customer’s organisationcustomer’s organisation

But unsure of how to accurately But unsure of how to accurately determine which existing customers to determine which existing customers to targettarget

Plan OptimiserPlan Optimiser Challenge involved:Challenge involved:

Analysing 3 months call usage data for Analysing 3 months call usage data for each customereach customer

Approximately 300,000 customers in the Approximately 300,000 customers in the target segmenttarget segment

Executing within very tight timeframeExecuting within very tight timeframe

All customers were categorised:All customers were categorised: No changeNo change Or recommended one of 3 variations of the Or recommended one of 3 variations of the

plan (depending on usage)plan (depending on usage)

Plan OptimiserPlan Optimiser Technologies utilised:Technologies utilised:

No choice but to leverage technologies No choice but to leverage technologies already in usealready in use

Data sourced from Data sourced from EDW – Customer call dataEDW – Customer call data

Redbrick Data Warehouse Redbrick Data Warehouse Hyperion ReportingHyperion Reporting JavascriptJavascript

Plan OptimiserPlan Optimiser Major BenefitsMajor Benefits

Entire target base analysed prior to launchEntire target base analysed prior to launch Proactively communicated to entire base Proactively communicated to entire base

exactly which plan suited them bestexactly which plan suited them best Low cost but effective solution Low cost but effective solution Ensured call centre was not swamped on Ensured call centre was not swamped on

launch datelaunch date Prevented customers being sold the wrong Prevented customers being sold the wrong

planplan




SummarySummary

Intelligent Invoice AnalysisIntelligent Invoice Analysis New Zealand Airline New Zealand Airline Low cost enhancement to the EDWLow cost enhancement to the EDW Automated verification of Frequent Automated verification of Frequent

Flyer Partner airline’s invoicesFlyer Partner airline’s invoices

Intelligent Invoice AnalysisIntelligent Invoice Analysis Involved automating a series of simple Involved automating a series of simple

checkschecks Was the Frequent Flyer one of ours?Was the Frequent Flyer one of ours? Did the airline fly those legs?Did the airline fly those legs? Did the airline fly those legs on those Did the airline fly those legs on those

dates?dates? ……

All invoice lines were categorised:All invoice lines were categorised: OKOK SuspectSuspect RejectReject

Intelligent Invoice AnalysisIntelligent Invoice Analysis Technologies utilised:Technologies utilised:

Conscious decision to leverage Conscious decision to leverage technologies already in usetechnologies already in use

Data sourced from Data sourced from EDW – Loyalty dataEDW – Loyalty data EDW – Flight Schedule dataEDW – Flight Schedule data Loyalty Partner’s Invoice Detail filesLoyalty Partner’s Invoice Detail files

Oracle Oracle Informatica ETLInformatica ETL Hyperion ReportingHyperion Reporting

Intelligent Invoice AnalysisIntelligent Invoice Analysis Major BenefitsMajor Benefits

Verification of Partner Invoices was almost Verification of Partner Invoices was almost entirely automatedentirely automated

System became part of the regular monthly System became part of the regular monthly Partner Payments processPartner Payments process

Quality of Data from Partners improved Quality of Data from Partners improved markedlymarkedly

Payback in 3-4 months of operationPayback in 3-4 months of operation



Work ProcessesWork Processes Automated KPIs in a Retail environmentAutomated KPIs in a Retail environment Intelligent Invoice Analysis in an AirlineIntelligent Invoice Analysis in an Airline Plan Optimisation application for a TelcoPlan Optimisation application for a Telco

SummarySummary

SummarySummary Supporting the Business ProcessSupporting the Business Process

““The more that the use of the data The more that the use of the data warehouse can be embedded into the warehouse can be embedded into the business process being supported, the business process being supported, the more likely it is that benefits will be more likely it is that benefits will be realised”realised”

SummarySummary Supporting the Business ProcessSupporting the Business Process

““Operational business processes tend to Operational business processes tend to realise the benefits of data warehousing realise the benefits of data warehousing more readily and more quickly than tactical more readily and more quickly than tactical or strategic business processes.”or strategic business processes.”

SummarySummary Doesn’t necessarily require new tools or Doesn’t necessarily require new tools or

technologiestechnologies People and process are more important People and process are more important

than the technologythan the technology Focus on increasing use of the dataFocus on increasing use of the data

Documents

Successfully Leveraging Information into a Specific Action Peter McCallum