Business Intelligence in the real-world
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1 Queens University Business Intelligence in the real-world Pat Beattie
2 Contents 1. Introduction 3 2. What is Business Intelligence and Analytics? 5 3. Why do businesses need BI&A? Business challenges in implementing BI BI isn t new, so what s different? 20 2
3 1. Personal Introduction Pat Beattie Graduated from Queens in 1996 with a degree in Information Management Now an Associate Partner in I lead our Information Management team in NI which consists of 4 distinct areas; Information Architecture Strategy & Governance Business Intelligence & Analytics Enterprise Data Management Enterprise Content Management Companies our team are currently supporting include; Jaguar Land-rover, Lehman Bros (IA) Heineken, Reed Elsevier Royal Bank of Scotland AstraZeneca, BBC Guys & St Thomas Hospital 3
4 1. Lecture Introduction The aim of these lectures and tutorials, is to give you a non technical perspective of how BI&A (Business Intelligence and Analytics) is used in the real world, including; What businesses define as BI How businesses are using BI to help solve business issues What is stopping businesses realising the value of BI Our 2 nd Lecture will focus on the latest People, Process and Technology which are found in an organisation and how to resolve some of the key issues they face. The emerging trends in BI The new approaches businesses are taking to implementing BI to realise benefits 4
5 2. What is Business Intelligence and Analytics? BI&A is the collective term for strategies, methods and tools that empower an organisation to unlock value from their data. It is the key to an organisation making better decisions using relevant, reliable and timely data. Without it, businesses would make poor decisions based on gut instinct alone. Enterprise Reporting Alerts and Notifications Data Visualisation Predictive Analytics Forecasting Scorecards Business Process Modelling Modelling Data Mining OLAP Analysis Data Cubes Text Mining BI Strategy and Roadmap BI Competency Centre Dashboards Mobile BI 5
6 2. Different components provide organisations with different levels of competitive advantage 6
7 2. BI&A Taxonomy Finance and Operation Reporting Enterprise reports are the most commonly used reports within the business intelligence world encompassing a vast array of operational reporting directly from ERP, CRM. The vast majority of these reports are web base as companies look for simple access to enable decision making at all levels of the organization. Static report usually presented in tabular format. 7
8 2. BI&A Taxonomy Monitoring Dashboards Dashboards provide at a glance information about current business performance across an organisation. They are used to present key matrices that an organisation wishes to measure. Alerts and Notifications The process of alerting and notifying key business stakeholders at particular time or event These are automated messages or signals send via , sms etc to indicate that an event or certain condition has been reached and that some action is required. Scorecards A scorecard or balance scorecards is a strategic planning and management tool which is used to help align business activities to the vision and strategy of the organisation. Real Time Decision Making The process of minimizing the time from the business event happening to delivering information and analytics to enable a corrective action or notification to be initiated and business processes optimized. 8
9 2. BI&A Taxonomy Analysis Data Visualisation The process of visualizing data and information using graphics, animation etc in order to draw out meaningful patterns and analysis. Query/Drill Down A set of operations which enable the user to query or drill down from summary information to detail data. Data / Text Mining The process of extracting previously unknown patterns from large volumes of data. Statistical Analysis The process of applying a set of mathematical techniques to understand key correlations and relationships within the data. 9
10 2. BI&A Taxonomy Prediction Forecast/Modelling The process of developing models to understand the impact that different financial or commercial decision will have on various operational and financial aspects of an organisation. Predictive Analytics A set of techniques that analyze current and historical facts to make predictions about future events. 10
11 2. BI&A Taxonomy Predictive Analytics Forecast and Modelling Query/Drill Down Statistical Analysis Data/Text Mining Data Visualisation Monitoring What is Happening Now? Scorecards Dashboard Alerts and Notification Real Time Descision Making Reporting What Happened? Operational Reporting Financial Reporting Provides Platform for BI&A Derive Value from Data Prediction What is going Happening? Analysis Why did it Happen? Strategy, Architecture and Governance How does BI operate in the firm? Infrastructure and Tools What Technologies do I need to support BI&A? BI Strategy BI Operating Model BI Architecture Tool Installation and Configuration Data Structures (ODS, OLAP Cubes etc) Hardware Infrastructure Policy and Compliance Definition 11
12 2. BI&A Technologies The Magic Quadrant for Business Intelligence Platforms presents a global view of Gartner's opinion of the main software vendors that should be considered by organizations seeking to develop BI applications Magic Quadrant for Business Intelligence Platforms have a strategic focus on key BI Platforms found in the Challengers and Leaders Quadrant: Oracle Microsoft SAP Business Objects SAS Qlikview Tableau Spotfire 12
13 3. Business Intelligence and Analytics enables organisation to understand. What Happened? Reporting What is going to Happen? Prediction BI&A Analysis Why did it Happen? Monitoring What is Happening Now? 13
14 3. Why do businesses need BI? Benefits of BI&A 14
15 4. Managing risk & reputation 1. Regulatory reporting Southern Water ( 20m+) Thames Water ( 12m) Goldman Sachs ( 17m+) 2. Risk Management ENRON Lehman Bros (IA) 3. Reputational Risk HMRC (incorrect Tax calculation) Edf (billing) TalkTalk (billing) BI Maturity - level 1 Keep us out of jail/headlines Businesses are usually better prepared for this type of reporting Statutory submissions e.g. Annual accounts are well practiced Underpinning Data is usually highly governed 15
16 4. Managing business complexity 1. Reduce Costs Procurement Analysis Materials management Profitability 2. Improve operations Process improvement Workforce effectiveness Sales force management BI Maturity - level 2 Do what we do, well Businesses have some of this capability Usually delivered via stand-alone, silo d operational systems e.g. ERP, CRM etc 3. Enable business strategy Mobile BI Supplier collaboration Underpinning Data is governed on a system by system basis 16
17 4. Growing the business From hindsight to Insight 1. Customer Insight Customer Analysis (Tesco) Interests/Preferences (Elsevier) Customer Service (Vodafone) 2. Cross-sell/Up-sell Personalised services (Amazon) RBS (banking, insurance) 3. Market Intelligence Market Trends on-line music Product trends - Apple BI Maturity - level 3 What else could we do? Businesses are keen to develop this but pre-requisites often don t exist i.e. skills, data, tools etc New skills require business insight with technical skills Underlying data in different formats, in different systems, lack of external standards, 17
18 5. Business Challenges in implementing BI 1. Unclear Business objectives 6. Requirements are Technology led 2. Ownership CFO, CIO? 7. Existing technology complexity 3. Business buy-in due to previous 8. Data Quality failures 4. Business changes 9. Implementation approach 10.Cost & Return on investment 5. Lack of Skills Business Technical 18
19 6. BI isn t new, so what s different? 1. Competitive advantage what value is first mover advantage? 2. Rapidly changing external environment e.g. Market need to be more competitive and reduce costs Regulations increasing post the crash on all businesses Shareholders want better performance and transparency Customers demanding greater value for money 3. Information overload - drowning in data but starved for knowledge (John Naisbitt) 4. Technology investments failing to deliver promised RoI; Lack of business ownership ERP & Operational/silo d reporting solutions Data is not managed as a corporate asset 19
20 Business Intelligence and Analytics The power to know Any Questions? This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it PricewaterhouseCoopers LLP. All rights reserved. In this document, refers to PricewaterhouseCoopers LLP which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
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