Taking Business Intelligence to the Next Level with Performance Management Timo Elliott Senior Director, Strategic Marketing Business Objects

Taking Business Intelligenceto the Next Level

with Performance Management

Taking Business Intelligenceto the Next Level

with Performance Management

Timo ElliottSenior Director, Strategic Marketing

Business Objects

Confidential and proprietary. Copyright © 2005 Business Objects S.A. All rights reserved.Slide 2

Enterprise Performance Management

Laying the Foundations

Getting Started

Conclusion

Topics


Managing the Business, Not Just Understanding It

Give me information I can trust

Show me just what’s important

Tell me what’s urgent or unusual

Tell me where we’re going—giveme information I can act on

Organize data the way I think

“BI”?

61% of business managers and executives say they make decisions on gut feel more than 50% of the time

Business Week

What do managers and executives want?

Base: 675 US and European business executives and managers. Source: BusinessWeek Research Services



The application of business intelligence, metrics, and methodologies to improve enterprise performance


Enterprise Performance Management = Results

“Measurement managed” companies consistently outperform their peers

Source: American Management Association

0%

100%

Perceived as an Industry leader over the past three years

20%

40%

60%

80%

Percentage of Organizations

44%74%

52%

83%

55%

97%

Reported to be financially ranked in the top third of their

industry

Last major cultural or operational

change judged to be very or moderately

successful

Measurement-Managed Organizations

Non Measurement-Managed Organizations


Dashboards—Key Performance Indicators

Interaction with analytics — e.g.

drill

Automated alerting based on business

rules

Trends over time, comparisons between KPIs

Content that is specific to a user’s role


Scorecards—Connecting Goals, Metrics, People

Prioritized lists of KPIs

Collaboration around KPIs

Comparisons against targets

Recommended actions


EPM aligns and connects all users, and makes strategy everyone’s job

Translate strategy into operational and process improvements

Executive ManagementScorecards, trends, exceptions, strategy maps

Operations ManagementDashboards, ad-hoc & guided analysis, collaboration

Front Line Employees Reports, actions, and tasks

EPM—Strategic Alignment for the Enterprise

Continual process


Example: From Metrics to Management

Key metrics updated

Incentives tied to process and measures

Real time planning

Ease of use

Interactive

Dashboards, summary reporting, and executive to line level

Set goals

Monitor progress


Example: Connects Executive Metrics to Line Level

Plant Level

Line Level

Executive targets feed Plant Productivity targets

Plant targets feed Line Level targets

Executive Level




Getting Started

Conclusion

Topics


BI Standards

SAP

Marketing

PeopleSoft

Enterprise DW

Budgeting

SpreadsheetsApproximately 70% of the costs of each BI project is ‘infrastructure’

Foundation for EPM


Data Quality

Nationality of user conference attendees

Afghanistan

United States

Canada

Europe

Asia/Pac

?!


Information Trust

43% of business managers and executives say they’re not sure if internal information is accurate

Business Week

Base: 675 US and European business executives and managersSource: BusinessWeek Research Services


Lineage: Where Did That Number Come From?

When was it last updated?

How was it calculated?

What is the original source?


Information Trust

Requires DI+BI integration and end-to-end metadata,

Quality

Controls

Interpretation

DW manager

BI center manager

Business users

data integration

Security

Reports and analysis

Semantic layer

Operational systems

INFORMATION ACCOUNTABILITY FRAMEWORK

• Duplicates• Data profiling• Impact analysis

• Security• Privacy• Usage tracking

• Meaning• Lineage• Consistency

Sin

gle, In

tegrated

System


TriageAssessmentand Entry

PatientRegistration

Patient Statusand Room Assigned

Nurse ExamIndicator Changed

PhysicianExamines

Patient

Physician Note

Created

Labs and/orX-rays areOrdered

Lab Report(s)Returned via

EDIM

Physician NoteCompleted

Prescription(s)Written

Patient Referred for

Follow-up Care

DischargeInstructions

Created

Electronic Chart

is Completed

History Fileis

Created

PatientArrives

PhysicianConsults with

Patient

PatientDischarged

Patient Leaves ED

EDIM ReportsCreated/Printed

Alignment With Business Processes


Emergency Medical Associates


Leveraging Finance And Compliance

“Accounting & Controlling is expected to provide a holistic business view by combining lagging & leading indicators. Hence only business intelligence services beyond traditional financial oriented reporting adds real value and becomes a must.”

UBS

business intelligence

external

internal

lagging indicators leading indicators

Infor-mation source

Sales Manage-

ment

Controlling

Accounting

Strategic Analysis

Business Manage-

ment / HR

Marketing

Business Develop-

ment

expected business2

2

Donebusiness3

3

potential business1

1

Auditedbusiness4

4


People are More Important than Technology

Investment Historical Determinant of Success

People 2% 20%

Process 2% 15%

Organization 2% 10%

Culture 1% 20%

Leadership 1% 10%

Data 10% 15%

Technology 82% 10%

“Information competency is the result of the people you have in place, the processes they follow, the culture of your firm, and many things other than technology”

Don Peppers

85% of success determined by things OTHER than data

and technology

Source: Information Masters: Secrets of the Customer Race. John McKean




Getting Started

Conclusion

Topics


HP: Using BI to Optimize IT Performance


Dashboards—Get Started Now

Step 1: Create a view-only prototype Select the metrics that matter Verify definitions with action-takers Validate data sources and benchmarks

Step 2: Make prototype actionable Add thresholds and action-takers Match refresh rates to the cycle of

decision making Institute review and feedback

Step 3: Analyze and refine Revisit thresholds Add contextual analysis Collaborate on problem solving

Step 1Days 1-30

Step 3Days 30-90

Step 2Days 15-45




Getting Started

Conclusion

Topics


A Strategic Approach to Drive Performance


EPM = Business Intelligence + Metrics + Methodology

Business Intelligence connects all users Reports, dashboards, scorecards, and customer analytics Leverages your existing reporting and systems

EPM requires business sponsorship IT and business operations must be aligned

Start small, think big and scale fast Plan for enterprise deployment

Measure the results Improved returns from people, process, systems


Thank You

Timo ElliottSenior Director, Strategic Marketing

Business Objects

[email protected]

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Taking Business Intelligence to the Next Level with Performance Management Timo Elliott Senior Director, Strategic Marketing Business Objects