Presentation Outline. Business Intelligence Foundational Pyramid 7/15/2013. From its Origins in Infographics. By Dan McHenry & Melissa Ness.

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1 Business Intelligence From its Origins in Infographics to Dashboards to Today s Business Intelligence By Dan McHenry & Melissa Ness Presentation Outline Infographics Dashboard KPIs A Group Exercise To Today s Business Intelligence Dashboard A Real World PEO Dashboard Example Business Intelligence Foundational Pyramid BI Prescriptive BI Predictive BI Diagnostic (Interactive Visualization & Drill Down) BI Descriptive (Reports & Dashboards) Information Graphics or Infographics 1

2 The Definition of Business Intelligence Nic Smith, Senior Director of Marketing for SAP Mobile Analytics Business Intelligence is about providing the right data at the right time to the right people so they can make the right decisions. Information Graphics or Infographics Infographics (IG) are graphic visual representations of information, data, or knowledge intended to present complex information quickly and clearly. IG improves cognition by utilizing graphics to enhance the human visual system s ability to see patterns and trends. History of Infographics In 1626, Christopher Scheiner illustrates the Sun s rotation patterns. In 1790, William Playfair first uses statistical graphs, bar charts, line graphs and histograms 1626 Scheiner documents the sun s rotation patterns graphically 1820 Ritter uses map legends and modern geography In 1820, Carl Ritter first uses map legends to illustrate modern geography Playfair first uses graphs, bar and pie charts and histograms 2

3 History of Infographics In 1857, the English nurse Florence Nightengale used IG to persuade Queen Victoria to improve conditions in military hospitals. History of Infographics In 1861, Charles Minard releases an information graphic on the subject of Napolean s disasterous march on Moscow in History of Infographics Infographics created by Peter Sullivan for the Sunday Times in the 1970s and 1980s were key factors in encouraging newspapers to use more IG. Since its inception in 1982, USA Today became the lead periodical in using IG in communicating content and information. 3

4 Infographics are Made Up of Three Parts Visual Colors Graphics Content Statistics Facts Knowledge Insight Resource Infographics are based upon Visualization Humans receive inputs from all five senses. 50% of the brain is dedicated to visual functions. U.S. Population Primary Learning Method 35% 65% Images process much faster than text. Visual learning method Other learning methods Communication is Important in Infographics Three provisions of communication when designing an infographic: Order of Importance Academia, Corporate or Science Commercial Sales Editorial Appeal Comprehension Retention Comprehension Retention Appeal Appeal Retention Comprehension Appeal Comprehension Retention 4

5 Infographics are the Building Blocks of Dashboards Top 5 Visualization Categories Time series data Statistical distributions Maps Hierarchies Networking Dashboards Descriptive BI For our purposes, a dashboard is an easy to read, often single page real time interface using a graphical presentation of the current status and historical trends of an organization s key performance indicators. Analytical Strategic Dashboard Types Operational Select KPIs for Your Strategic Dashboard (SD) SDs provide managers and executives at all levels of the organization the information needed to understand the health of the organization and help identify potential opportunities for expansion and improvement. An SD should be simple and contain aggregate metrics that represent the overall health of the organization. Group Participation

6 Select KPIs for Your Analytical Dashboard (AD) ADs provide users with the data they need to understand trends and why certain things are happening by making comparisons across time and multiple variables. AD contain more information per square inch and are more complex than SDs or ODs. Group Participation Select KPIs for Your Operational Dashboard (OD) ODs are used to monitor real time operations and alert the users with deviations in the norm. This means OD should be updated frequently, if not in real time, and contain less information than SDs or ADs, and is impossible to misunderstand the alert when something deviates from acceptable standards. Group Participation A Sample Dashboard Process Discuss the Merit Methodology 6

7 A Sample Strategic Dashboard Use a Merit format (can change to sample data) A Sample Analytical Dashboard Use a Merit format (can change to sample data) A Sample Operational Dashboard Use a Merit format (can change to sample data) 7

8 BI Software Tools are Advancing Rapidly Gartner, a leading IT research and advisory firm has been following the innovations and trends in leading software platforms in business intelligence (BI) and detailed their research in a February 2013 on BI called: Magic Quadrant Business Intelligence and Analytics Platforms BI & Analytic Platform Characteristics Gartner defines the BI and analytics platform market as a software platform market as those that delivers 15 characteristics across 3 categories: Integration BI Infrastructure Metadata Management Development Tools Collaboration Information Delivery Reporting Dashboards Ad hoc query Microsoft Office Integration Search based BI Mobile based BI Analysis Online Analytical Processing (OLAP) Interactive Visualization Predictive modeling and data mining Scorecards Prescriptive modeling, simulation and optimization Gartner s Top Players in the BI Market The Gartner Magic Quadrant Report analyzed in detail the top players within the Business Intelligence marketplace with an in depth analysis of the dominant players and up and comers with in the space. 8

9 Four Phases of the BI Platforms Market Descriptive (most common now) Most common such as reports and dashboards are used to describe the dimensions and measures of a particular aspect of the business. Diagnostic (most focus now) Leverage critical capabilities such as interactive visualization to drill more easily into data to get more insights. Predictive (most focus tomorrow) As organizations mature at diagnostic analysis, they become so adept at understanding the root causes in their business processes that they can identify the explanatory variables that predict what the measure will be in a future period. Prescriptive (the future) Solutions can be further evolved to prescriptive analytics as the insights from predictive models are integrated into business processes to take corrective or optimal actions. Descriptive Diagnostic Predictive Prescriptive Business Intelligence Test (Fill in the Blank) Business Intelligence is: Providing the data At the time To the people To make the decisions Business Intelligence Survey Do You Believe Yes No Visualization is an easier way to understand data? Visualization is a faster way to understand data? The most important communication aspect in Infographics is: Appeal Comprehension Retention Does Your Company Yes No Prepare Dashboards? Use dashboard/bi software? Use a software vendor from the Gartner Magic Quadrant report? Do you believe that business intelligence software can give you a competitive advantage? Plan on investing more on Business Intelligence in the Future? 9

10 For More Information Dan McHenry Business Advisory Group Practice Leader McHenry Consulting, Inc Highland Manor Drive Suite 200 Tampa, FL (813) (813) mobile YouTube Channel: McHenry Consulting, Inc. Melissa Ness Vice President of Finance & Information Technology Merit Resources, Inc th Street Des Moines, IA IA (800) (515) mobile 10

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