Business Intelligence and Government. Major applications of business intelligence software at federal, state, and local levels of government

Transcription

1 Business Intelligence and Government Major applications of business intelligence software at federal, state, and local levels of government

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3 Business Intelligence and Government 1. Introduction The Government Sector: Improved Service, Faster Response, and Better Performance Unique Business Intelligence Challenges for Government Agencies Applying Business Intelligence to the Needs of Government Agencies Budget Management Citizen Relationship Management Other Application Areas in the Public Sector Government Organization Snapshots: Ohio Department of Education, State of Tennessee, US Postal Service, Internal Revenue Service of Brazil Conclusion...12

4 Business Intelligence and Government Major applications of business intelligence software at federal, state, and local levels of government Federal, state, and local government agencies face many operational challenges at all levels. With strict budget and performance goals and reporting requirements, as well as diverse and demanding constituencies, government agencies need information management solutions that allow them to make better decisions, keep tight tabs on their operations, and control information security. Government agencies need to use all the tools at their disposal to manage their many operational challenges and ensure they meet their many obligations through intelligent e-government and other data-driven solutions. With such a far-reaching scope of services and concerns in the public sector, government agencies handle immense amounts of information. These agencies face incredible pressure to use this information to improve financial and service performance, and they need the tools to take advantage of the myriad information at their disposal. The information technology available today allows government agencies to make better operational decisions and to better target performance goals. MicroStrategy offers government agencies the business intelligence software to report on, analyze, and monitor the vast amounts of public sector and other relevant data through a business intelligence architecture that helps agencies track fiscal performance, enable secure information sharing, and maximize the value of information. The Government Sector: Improved Service, Faster Response, and Better Performance Changes in the political and technological environments are placing great pressure on government agencies to alter the way they do business in order to meet the growing demands of both their operational constrictions and their constituencies. At all levels, these agencies face increasing pressure to react more quickly to the needs of their constituents and other levels of government. Since the terrorist attacks of September 11, 2001, the government sector has been forced to respond more quickly on issues involving Homeland Security, and this demand has transferred over into other areas of government operations. In addition, the private sector s greatly increased focus on customer service over the past decade has raised consumers expectations for integrated government service, as well. This means that government agencies must have the tools and accessible information to react quickly and efficiently to growing demands from both above and below. The rapid developments in information technology have also changed the way government agencies do business. MICROSTRATEGY: BEST IN BUSINESS INTELLIGENCE Over the past decade, the government sector has increasingly used the Internet to disseminate and collect information. This proliferation of e-government has allowed agencies to more easily interact with their customers, businesses, and other levels of government. It has also presented opportunities for reduced costs, increased revenue, greater convenience, and heightened accountability. While e-government has opened many new doors and resulted in huge increases in efficiency, it has also placed new and different demands on government agencies. The emergence of real-time government has forced agencies to streamline their operational systems. In addition, growing security concerns combined with increased Internet activity mean that government agencies are under more pressure than ever to maintain secure informational systems. The Federal Information Security Management Act of 2002 places increased accountability and reporting requirements on government agencies to ensure the security of their information systems. The greater use of

5 technology also means that government agencies must find ways to integrate their information systems and make information available across government agencies and to the front lines of agency workers. They need applications that enable the sharing of data both across and through agencies. Finally, government agencies are becoming more focused on both performance and accountability. Facing stringent regulatory compliance and budget constraints, government agencies must tightly monitor and report on internal processes and operational performance. In addition, they must show accountability both internally and externally for how well they meet their performance goals. Unique Business Intelligence Challenges for Government Agencies The challenges mentioned above require government agencies to be proactive in managing and utilizing critical data to meet the many demands they face from both their constituencies and other levels of government. That s where Business Intelligence comes in. Business Intelligence software gives government agencies the capability to analyze the vast amounts of information they already have to make the best decisions. The software allows agencies to tap into their huge databases and deliver easy-to-comprehend insight to improve operational performance, stay within budget, and maintain regulatory compliance. Government agencies can now use business intelligence software for secure information access to applications including financial performance management, revenue and expenditure tracking, and performance reporting. MicroStrategy can outfit government agencies with the software to maximize their information gathering and make the best use of the data to improve operational strategies by optimizing their budgets, increasing staff productivity, and effectively allocating resources. In addition, MicroStrategy can help government agencies meet the goals of the Information Technology Management Reform Act of 1996 (also known as the Clinger-Cohen Act), which requires federal agencies to follow corporations best practices for managing information technology. MicroStrategy s business intelligence software enables agencies to establish investment controls, set performance goals, and create systems to measure progress. The applications of business intelligence in the government sector are far-reaching. First, government agencies must be able to share select information within their own operations and across agencies. MicroStrategy s business intelligence software offers a unified Web interface with both extranet and intranet capabilities that allow government agencies to share information to facilitate better decision making. There is no software to install or download. By simply obtaining security credentials from the agency and logging on to the Internet, other agencies can access a secure website where they can utilize MicroStrategy s extensive analytical and reporting capabilities. They can use the information the agency has designated for them by running easy-tounderstand and intuitive reports and analyses. MicroStrategy also allows government agencies to disseminate information to thousands of users internally through the many levels of the agency all the way to the front lines. The MicroStrategy architecture provides unique capabilities for government agencies to reach users both inside and outside their organizations immediately and securely. With so many users who require to access reports and analyses, all of whom have unique security credentials, it s essential to have business intelligence software that adheres to the highest level of information security controls. MicroStrategy s centralized administration and bullet-proof security enable government agencies to determine who accesses which information to protect the most granular level of detail. To ensure robust security, MicroStrategy implements industry-leading security measures at every layer of the architecture. Business Intelligence and Government

6 Business Intelligence and Government Different users also have different skill levels and reporting requirements from Chiefs of Staff who need highlevel customized summary data with drill-down capabilities to power users who need to create and design custom reports to data analysts who must identify and communicate red flags. MicroStrategy s intuitive reporting and analysis capabilities allow different users to easily access the information relevant to them. In addition, government agencies must manage large volumes of data from many sources (both internal and external), including general ledger, personnel, budgeting and other legacy systems. MicroStrategy s integrated architecture allows agencies to easily integrate and cross-reference vast amounts of information from multiple sources, identify relationships among the information, and learn how different factors affect each other and the agency s bottom line. MicroStrategy s drill-anywhere capabilities allow users to perform in-depth analyses through many layers of information. Finally, government agencies must adhere to strict budgets and operational constraints. Not only does business intelligence software allow agencies to make sure they stay within budget, but MicroStrategy s in-depth analytical tools give government agencies at all levels forecasting and strategic planning capabilities for better decisionmaking. Agencies can also cut costs and grow revenue by tracking the most cost-effective uses of resources and improving operational efficiency and overhead costs. Business intelligence software allows agencies to integrate their budget, planning, and performance measurement processes, as well as effectively manage their finances and demonstrate financial accountability. In addition, since agencies now face pressure to buy rather than build software solutions, MicroStrategy a best-in-class business intelligence solution can save government agencies money by delivering reporting and analysis of data from legacy systems to make the most of prior investments and by enabling agencies to build reports and dashboards easily and efficiently. MicroStrategy s business intelligence software offers government agencies a complete range of services, including operational reporting, budget forecasting, resource monitoring, and performance analysis. MicroStrategy s business intelligence architecture simultaneously accesses all this information, enabling analysis from many sources at once and providing the most thorough and integrated reporting. MicroStrategy then presents this information in user-friendly reports, scorecards, and dashboards and allows users to look at the information in different formats, offering the most straightforward and useful ways to analyze the information to get the desired results operational strategies that effectively manage resources, carry out agency missions, and provide services to citizens. MICROSTRATEGY: BEST IN BUSINESS INTELLIGENCE

7 Applying Business Intelligence to the Needs of Government Agencies Civilian and Defense governmental agencies use business intelligence software for key public sector applications, including: Budget management To properly manage and adhere to budgets, government agencies must be able to quickly and easily access and analyze the vast information on agency expenditures, resource allocation, and revenue. MicroStrategy s unified business architecture simultaneously accesses financial information across all agency departments to determine any over- or under-usage of allocated funds in order to facilitate the most effective and economical use of appropriations and funds. It also allows analysts to monitor actual performance against budget and enables decision-makers to identify areas where they can streamline processes and procedures to reduce overhead costs. Relevant KPIs: Actuals Analysis Budget Allocation Current vs. Prior Year Funds Appropriation Cost Center Analysis Actuals vs. Plan Operating Revenue Current Month vs. YTD Sample Report : Agency Financial PerformancE YEAR: 2006 MONTH: JUNE Current Month Year to Date Budget Centers Current Actual Plan LY Actual % Plan % Prior Year Current Actual Plan LY Actual % Plan % Prior Year Revenue $57,223, $60,250, $45,726, % 25.1% $347,377, $361,500, $352,404, % -1.4% Services $13,567, $12,500, $12,768, % 6.3% $81,451, $75,000, $76,575, % 6.4% Products $1,176, $1,250, $1,376, % -14.5% $7,064, $7,500, $8,213, % -14.0% Commercial $31,465, $35,750, $33,827, % -7.0% $191,728, $214,500, $202,874, % -5.5% Retail Channels $825, $750, $722, % 14.2% $4,956, $4,500, $4,320, % 14.7% Other $10,187, $10,000, $10,074, % 1.1% $62,176, $60,000, $60,420, % 2.9% Costs $58,575, $57,045, $55,888, % 4.8% $351,262, $342,270, $324,056, % 8.4% Finance $487, $520, $528, % -7.9% $2,932, $3,120, $3,067, % -4.4% Human Resources $689, $650, $643, % 7.0% $4,147, $3,900, $3,734, % 11.1% Administration $122, $125, $124, % -1.8% $739, $750, $722, % 2.4% Operations - Facilitaties $13,786, $15,000, $14,887, % -7.4% $82,962, $90,000, $86,321, % -3.9% Operations - Support $29,457, $27,500, $26,588, % 10.8% $176,500, $165,000, $154,169, % 14.5% Operations - Transportation $1,184, $1,250, $1,287, % -8.0% $7,130, $7,500, $7,464, % -4.5% Operations - IT $12,847, $12,000, $11,827, % 8.6% $76,849, $72,000, $68,578, % 12.1% Every department in every agency is faced with budget issues, overruns, and daily struggles. As the above report shows, MicroStrategy allows you to see on the fly analysis of specific cost and profit centers and performance against budget and previous time periods. Business Intelligence and Government

8 Business Intelligence and Government Citizen Relationship Management After years of debate in which government leaders often rebuked the idea of referring to their constituents as customers, agencies at all levels of the public sector have begun to accept the principles of Customer Relationship Management (CRM) into regular activity. Often referred to as Citizen Relationship Management instead of Customer Relationship Management, CRM in the government domain allows leadership to be more in touch with the preferences and needs of their taxpayer base. MicroStrategy allows customers such as the State of Ohio and the US Department of Education to develop analytics that enhance their understanding of the citizens and to personalize the services that they offer. More services are being implemented to give direct, real-time access for constituents to their information, benefits, and allowances. Agencies are also cutting down on costs and resources by immediately and electronically notifying citizens about required updates or business and allowing them to complete these activities online. Relevant KPIs: Customer Notifications Customer Access to Information Customer Wait Times Customer Service Times Citizen-centric analysis Communication with Citizens Targeted Service Needs Personalized Information Delivery Effective Customer Billing Personalized Identification Sample Report : Customer Service Dashboard Customer Service Customer Satisfaction (As Reported) (OCT) Wait and Service Times (in minutes) (OCT) Number of Complaints Filed at Service Center 87 Average Wait Time for Service 12.4 Number of Complaints Filed Online 123 Average Service Time 18.9 Number of Complaints Filed by Telephone 14 Average Time for Extra Service (if necessary) 4.5 Number of Compliments Filed at Service Center 74 Average Wait Time for Service (National Average) 7.8 Number of Compliments Filed Online 109 Average Service Time (National Average) 9.5 Number of Compliments Filed by Telephone 3 Wait and Service Times by Time of Day 6 Service Time Wait Time Service Time (National Average) Wait Time (National Average) MICROSTRATEGY: BEST IN BUSINESS INTELLIGENCE Number of Minutes :00 02:00 04:00 06:00 08:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00 Just like other service industries, it is important for government agencies to analyze the service they deliver to their citizens and benchmark themselves against other similar agencies around the country. The above dashboard allows an executive to see how the month went in terms of service and also where the agency is behind or ahead of the national average. Time of Day

9 Other Application areas in the Public Sector where Business Intelligence enables enhanced competitive standing: Financial Management At all organizational levels of financial responsibility in government from financial managers, budget analysts, and auditors up through program directors and executives business intelligence plays a key role in increasing accountability, improving management visibility, and identifying potential issues or overruns. Authorized individuals in these roles run financial reports, analyze variances from budget, and monitor controls via financial dashboards. Every report and dashboard is automatically personalized by role and security clearance level, can combine data from multiple sources, and is accessed from MicroStrategy s intuitive Web interface with extranetcaliber security. The United States Postal Service, US Department of Education, and US Department of Energy run financial management applications on the MicroStrategy platform. Financial statement reporting: Agencies must produce financial statements to report on results from programs administered, revenues received, and costs incurred. Balance sheet reporting presents critical information on assets, liabilities, and investments and is enhanced with business intelligence software that enables analysis of accounts payable and accounts receivable, for instance, directly from the Web-based version of the report. Statements of net cost, statements of changes in net position, and statements of financing created with MicroStrategy communicate critical data and allow for further analysis of operating expenses, investigation of how funds were used, and forecasts of future performance. MicroStrategy s business intelligence architecture integrates information from annual financial plans with data from accounting systems and locally administered operational systems for complete tracking, diagnostic, and verification of financial statements. Forecasting: Government agencies face tremendous pressure to not only meet their budgets, but also to forecast future revenue and costs and to identify economic trends. Government agencies must manage resources and proactively develop response solutions using predictive analysis to have disaster recovery procedures in place before they are needed. Integral to the MicroStrategy platform, advanced statistical and data mining capabilities allow agencies to perform in-depth analyses for contingency planning, vulnerability assessments, and financial security projections. Logistics Management Advances in procurement and logistics, including RFID and supply chain management systems, benefit Civilian and Defense agencies tasked with managing critical resources, optimizing inventory, and ensuring efficient provisions and supplies. Procurement specialists and supply chain managers use business intelligence software for monitoring utilization and managing inventory in order to prevent shortages and waste. Private and public sector organizations alike use MicroStrategy in secure extranet deployments for suppliers and customers to access critical information immediately and easily and to analyze down to the transaction level of detail. Government agencies use MicroStrategy for integrated logistics solutions that provide a broad view of the entire supply chain, enable strategic decision making, and allow forecasting based on historical data. procurement analysis: As part of their resource management, government agencies must determine the most cost-effective ways to acquire needed materials. MicroStrategy allows agencies to analyze internal Business Intelligence and Government

10 Business Intelligence and Government demand patterns for specific materials and ensure they are sourcing materials for the lowest possible investments. In addition, by analyzing buying patterns and how well suppliers are responding to agency needs, MicroStrategy enables government agencies to improve their supply chains and turn vendors into strategic sources for key commodities. MicroStrategy also allows agencies to streamline the purchasing process, eliminate non-value-adding activities, and identify opportunities to consolidate or redistribute purchasing across buyers. asset tracking: It is quite a burden on government resources to manage and track the incredibly high number of physical and intellectual assets owned by the public sector. MicroStrategy allows agencies to do more than merely track the location and value of their assets by enabling analytics for determining total cost of ownership and depreciation of all assets. Program Management With the size and number of ongoing projects and programs within each department and agency always growing, government leadership is continually searching for ways to improve oversight into these activities. It is no longer sufficient enough to report on the status of a project in weekly updates and reviews. An increasingly connected and demanding constituency requires information on cost and performance data, key milestones and decision points, personnel allocations, and contractor performance. In response to this growing demand, the OMB implemented a set of criteria in 2005 for identifying high risk projects, focusing on a defined set of reasons and criteria. MicroStrategy allows government agencies to not only report on budgets, allocations, trends, and performance, but also to track the required criteria, and instantly notice when projects may be entering into highrisk areas. Continuous updates and alerts, proactively delivered to project, program, and agency management, allow leadership to accurately assess productivity and performance whenever necessary. MICROSTRATEGY: BEST IN BUSINESS INTELLIGENCE Knowledge Management Historically, business intelligence was thought of as a parallel technology, or even a competitor, to knowledge management. However, it is becoming increasingly clear that using the tools and capabilities that BI provides to knowledge management systems makes this information far more useful and effective. In the public sector, where information is spread both across many systems and even more locations, being able to intelligently and quickly query and report on the different knowledge management systems is becoming an essential component. Specifically in the areas of law enforcement and intelligence, the ability to have access to information from anywhere in the country or any group within the department would greatly enhance the ability to close cases. Using MicroStrategy software, agencies allow their analysts and resources who are spread across the world to have access to research and content, in both structured and unstructured formats. Performance Management Government agencies must adhere to strict reporting requirements. The extensive monitoring and reporting capabilities of business intelligence, specifically of MicroStrategy, allow agencies to stay in compliance with OMB and other regulatory bodies. More importantly, MicroStrategy allows agencies to provide their executives with the view of budgets, costs, timelines, and assets in a format that is most appropriate to them. Performance can therefore be monitored quickly and easily across all levels of management and across all operations within the agency. Internal processes can be tightly monitored for inefficiencies and resource drains to be sure goals and agency objectives are adequately met.

11 Anomaly Detection Just like all industries, the public sector relies on the analytics and modules of business intelligence to identify outliers and anomalies within the vast amounts of real-time data that come through their systems. Government agencies, and specifically security agencies, rely on the real-time mining of data to generate notifications and reports when situations outside of the regular pattern are identified. All agencies use BI technologies regularly in the identification of financial oddities and lost assets. Law enforcement and security agencies, like customs and border patrol services, rely on business intelligence systems to catch and isolate any suspicious patterns or changes in patterns at ports, airports, and borders. MicroStrategy has also enabled tax agencies around the globe to identify filing irregularities, monitor payments, and uncover fraudulent activities from taxpayers. Intelligence and Homeland Security It has been mentioned repeatedly above, but arguably the biggest users of BI in the public sector are in the Intelligence and Homeland Security agencies. In addition to the anomaly identification mentioned previously, security agencies utilize the analytics of BI to detect suspicious activity in transportation (airlines, trains, etc.) and in the immigration process. Specifically, the Transportation Security Administration (TSA) uses MicroStrategy software to collect, analyze, and report on passenger and baggage screening data. Intelligence departments across the country also use the software integrated with geographic information systems (GIS) to perform location intelligence and spatial analysis. Business Intelligence and Government

12 Business Intelligence and Government government organizations snapshots Information Access for Multiple Users at the Ohio Department of Education Achieving academic excellence is not a benefit generally associated with the MicroStrategy Business Intelligence Platform, but the State of Ohio uses it to do just that. Providing easy access to primary and secondary public school performance data, the Ohio Department of Education is giving parents, teachers, administrators, legislators, and journalists one-click access to a profile of the State s education system. The Ohio Department of Education contracted with MicroStrategy after the Ohio General Assembly required the department to release an annual report card on school district performance. To complement an annual paper report card mailed to parents of public school children, the department wanted an interactive tool to facilitate data analysis and to provide anytime access. The department s MicroStrategy application is called the Interactive Local Report Card (ilrc). The application lets anyone with an interest in the State s education program get the latest performance and statistical data pertaining to any school district or individual school in the State. This information changes our ability to effectively address educational issues in Ohio, because we have data to drive our decisions. Why do students read better at this school? Why do they keep dropping out at that school? Quick and easy access to performance data lets us get to the bottom of trouble situations and take action to improve them. Cost and Efficiency Savings at the Us Postal Service MicroStrategy supports business intelligence applications in every major functional group in the US Postal Service. There are over 30,000 managers using the data provided by these business intelligence applications. The users include financial and account analysts, service delivery analysts, budget coordinators, retail managers, and local postmasters across the Postal Service. The Postal Service has 4,000 users running 31,000 daily queries, and over 140,000 reports are run every week for 30,000 managers to monitor and analyze financial performance, on-time delivery performance, network efficiency, in-plant operations, and retail outlet performance. The United States Postal Service uses the Enterprise Data Warehouse to drive increases in revenue, reduce costs, improve operations, detect fraud, and increase efficiencies in mail service. To date, over $350 million in savings/cost MICROSTRATEGY: BEST IN BUSINESS INTELLIGENCE avoidance have been realized. MicroStrategy has been an integral component of our department since 1997, and its technology has enabled us to make remarkable improvements in areas including operational efficiency, financial performance, transportation logistics, and customer service. 10

13 Better Decision-Making at the State of Tennessee The State of Tennessee is using MicroStrategy to anchor its financial data access data warehouse. With MicroStrategy, decision-makers in more than 60 statewide agencies, including the Departments of Human Services, Mental Health, and Education, are able to more effectively track revenues and expenditures and make more informed decisions that can reduce costs and increase efficiency. MicroStrategy is providing the State of Tennessee s end users with comparative and exception reporting, more efficient and timely data analysis, enhanced financial data analysis, summary level reporting for management, and consistent interpretation of financial data definitions and business rules. With the MicroStrategy platform, end users are able to access financial data via the Web, which is proving to be the most valuable service the State of Tennessee has provided to its statewide agencies in the last decade. More than just a report writer, the MicroStrategy Business Intelligence Platform offers analytical capabilities far beyond what has been available. It is anticipated that the use of MicroStrategy software will help the State of Tennessee better manage financial information, leading to efficiencies that will save both time and money. Ultimately, we expect to see improved strategic planning, activity-based costing, and activity-based management in support of State programs. Tax Payer Analysis at Brazil s Internal Revenue Service Brazil s Internal Revenue Service (IRS) developed and deployed a corporate portal on their intranet allowing several thousand end users, including secretariats, superintendents, agents and inspectors, to monitor, report, and analyze taxpayer activity information. End users run more than 300 distinct reports against a 6-terabyte Oracle data warehouse that provide insight into the auditing, tax levy, inspection and administration of taxpayer activity. With MicroStrategy, Brazil s IRS is able to identify parties with possible filing irregularities, analyze taxpayer activity for the purposes of uncovering fraud, monitor payments made to the IRS, and supply information to prepare the nation s budget forecast. Brazil s Internal Revenue Service is the government department responsible for collecting taxes and controlling the customs operations, fulfilling and requiring the fulfillment of applicable legislation, promoting tax improvement and customs policy, offering Brazil s society excellent service and stimulating the voluntary fulfillment of tax obligations. Business Intelligence and Government 11

14 Business Intelligence and Government MicroStrategy: The Choice of Government Agencies Worldwide At MicroStrategy, we are fully dedicated to helping government agencies keep up with growing performance and accountability requirements. We believe that business intelligence properly applied to public sector and other relevant data provides government agencies with the insight they need to operate more efficiently, improve service to civilians, and comply with laws and regulations. Today, government agencies at the federal, state, and local levels rely on MicroStrategy s business intelligence architecture for their reporting, analysis, and monitoring of critical data. MicroStrategy s public sector customers in the U.S. include the Internal Revenue Service, state education agencies, and the U.S. Postal Service. These agencies put their confidence in MicroStrategy s bullet-proof security to ensure protection of classified information. MicroStrategy s unified architecture offers government agencies far-reaching opportunities for ever-expanding business intelligence. Whether starting with one or several applications, agencies can evolve to utilize MicroStrategy s unique competencies: a unified Web interface with extranet-caliber security and accessibility for thousands of users, reporting and analysis of tremendous amounts of data across multiple sources, graphical dashboards and boardroom-quality reports, and unconstrained analytical flexibility. Government agencies rely heavily on the collection, analysis, communication, and presentation of information in ways that are useful to the public, their employees, businesses, and other government agencies. MicroStrategy equips agencies with the tools they need to make the best use of the vast amounts of information available to them, allowing them to operate more efficiently and improve performance. At MicroStrategy, we are committed to helping government agencies better fulfill their missions by devising smart strategic solutions and making better operational decisions every day. MICROSTRATEGY: BEST IN BUSINESS INTELLIGENCE 12

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