BearingPoint and Oracle: Redefining Business Intelligence

Transcription

1 BearingPoint and Oracle: Redefining Business Intelligence Organizations need to get the right information to the right people so they can immediately apply decision making that links to strategic business priorities and day-to-day demands. BearingPoint and Oracle discuss how new and emerging business intelligence (BI) solutions, coupled with lessons learned over the past several years, are finally making this a reality for leading companies. In this point of view Introduction: A rapidly evolving market 3 Greater expectations for BI 3 Raising the BI bar 4 New technologies open the door 6 The case for comprehensive BI 7 Think big, start small, deliver quickly 7 Capitalizing on collaboration Conclusion: Turning insight into action 10 BearingPoint and Oracle 10 About the authors 10 Insight Point of View

2 Introduction: A rapidly evolving market The market for business intelligence (BI) solutions has undergone dramatic changes already in 2007, continuing a trend of the past few years. Major vendors are acquiring companies and product lines to combine, augment and strengthen their offerings and emerge as leading, full-service BI solution providers. Oracle s acquisition of Hyperion Solutions is among the latest and most significant of these developments. Niche players, meanwhile, are honing their strategies and offerings. BearingPoint and Oracle believe that organizations can derive significant benefits through a strategic approach to BI that leverages their existing investment in enterprise resource planning and other systems. A big reason for this rush of activity: Customers are integrating enterprise analytics, BI and enterprise data at an aggressive pace. This is driving intense demand for tools and technologies that present the elusive single source of truth in a way that is accessible, accurate and available. Enterprises are eager to use BI tools to improve business performance, conduct meaningful analysis that expands insight and understanding, and drive action. A recent InformationWeek survey of business technology managers reflects this growing interest. The survey found that 44 percent of the managers have data warehouses on their 2007 project list, while 43 percent are exploring data analysis tools. 1 Whatever the particular technologies organizations are looking to acquire today dashboards, databases, analytics or transactional applications it s a safe bet that they want to get more business value from their BI investments. Many past deployments have focused on solving individual problems. Often this has been done with a point solution, either a single, hard-coded reactive dashboard or a solution for a single business unit that was not aligned with overall enterprise strategies and goals. These efforts have lacked a broader view of how the solution can benefit the enterprise as a whole. Data quality also has been an issue. Valid data must be an integral component of datadriven decision making. BearingPoint and Oracle believe that organizations can derive significant benefits through a strategic approach to BI that leverages existing investment in enterprise resource planning (ERP) and other systems. By taking a holistic view that looks at data, processes, people and technology, enterprises can use powerful BI-supporting technologies to improve return on investment, enhance information delivery and decision making, and increase efficiency and effectiveness throughout the organization. Greater expectations for BI Organizations historically have used BI tools to address needs in specific functional areas, such as corporate financials, sales and marketing, operations, or human resources. How many accounts do I serve and in what geography, and what products am I selling? How 1 Mary Hayes Weier, It s the End of the Business Intelligence World as We Know It, InformationWeek, March 5, 2007, available at Insight Point of View 3

3 do customer and supplier satisfaction ratings relate to product or service revenue? How do I use customer relationship management (CRM) data to train call center agents or modify marketing campaigns to improve cross-selling? Recently, some organizations have focused on compliance and are looking for ways to link it to their existing BI programs. What is my risk-adjusted return on investment by segment, line of business or customer? What is my exposure to loan loss or probability of default? Can I develop programs that target customer or supplier behavior changes to drive higher margins and lower risk? Earlier-generation BI tools provided some support in tackling these questions. Yet they have fallen short for some fundamental reasons. First, earlier solutions have typically focused on backward-looking, retrospective, report-driven approaches. They provided information on what s happened, but not on why it happened and what to do about it. Plus, they didn t help people tackle specific day-to-day tasks. BI efforts also have suffered from the common enterprise problem of too many unconnected, and at times conflicting, information sources different spreadsheets and different databases managed by different people. In addition, enterprise information typically changes as different stakeholders across the organization touch it. The result is multiple or different versions of the truth, often based on a departmental or line-of-business point of view. Finally, while BI deployments have focused on solving individual problems, often they have not contributed to a strategic view. They have not been used to rationalize enterprise data and analytic problems and to address enterprisewide priorities. The line-of-business needs have to be met, but they must fit into an overall road map for the company s strategy and technology backbone. Companies are asking how they can structurally pull BI initiatives together to create enterprise methodologies and definitions and establish a consistent point of view. Ultimately, they want to find ways to use these technologies to improve how the overall business operates. Companies today are asking how they can structurally link BI initiatives to create true enterprise methodologies, standardize definitions and define governance structures. They want to get data into a common format. Accuracy, understanding and speed of delivery are key requests. Ultimately, companies want to achieve a common, accepted enterprise view that supports the organization s strategy, while using new technologies to improve how the overall business operates. Raising the BI bar Corporate-level concerns are driving the interest in better BI capabilities. One high-priority concern is fulfilling the need of executives to implement enterprisewide performance measures, better manage profitability and improve processes to lower costs. Organizational leaders also want to institutionalize compliance activities to meet ongoing and dynamic risk management priorities. They want to build on these efforts to drive strategic change. Insight Point of View 4

4 BI is needed by everyone within the organization and sometimes by external parties. It is pervasive in its reach front-line employees, back-office workers, executives, suppliers, vendors and regulators. BearingPoint and Oracle believe companies can capitalize on the trend toward consolidation among BI tools and technology vendors to make the most of their BI investment by taking a holistic approach that supports their company s strategic direction and business priorities. As the industry consolidates, and vendors begin to take a broader approach to BI problems, customers are beginning to see a broader definition of BI that spans from source data to integrated data stores, data marts and analytical applications. Companies can make the most of their BI investment by taking a holistic approach that supports their company s strategic direction and business priorities. By connecting the dots across functional areas of the organization, they can create an integrated, corporate-level approach to business processes. A broader BI approach also incorporates an understanding of who can access data, when and how they access it, and what they can do with it. Because of this, security and identity management are important components of the overall BI road map. Information is a key asset of the organization that should be managed with care and investment. So too are business processes. By connecting the dots across functional areas of the organization, companies can create an integrated enterprise approach to business processes. Again, this requires a holistic view of data, processes, people and technology. Using today s BI tools, organizations can cut through the chaos of numerous stovepipe systems to create a total view of the enterprise and drive sustainable change. We ve worked closely with leading financial, commercial and public service organizations worldwide. We ve seen organizations gain strategic advantage by improving data management and deploying the processes and technologies to advance corporate performance. Organizations are using BI technologies to: Consolidate data from finance, supply chain management, CRM, human capital management and other applications into a robust, centralized reporting and analytics repository. Leverage the online transaction processing environment to improve efficiency in an array of industries retailers, manufacturers, telecommunications companies, financial institutions, healthcare companies, public service institutions and other organizations. Achieve an integrated view of financial and operational results by improving enterprise process management, reporting and analytics. Create tighter linkage between planning, budgeting and forecasting processes and actual results. Increase understanding and effective use of financial data throughout the organization. Merge external data with internal data to market, service and drive efficiency across the value chain. Create a more robust view of business and technical metadata to develop more meaningful predictive analytics and analyses from both structured and unstructured data. Companies in a wide array of industries are capitalizing on BI solutions (see the sidebar on page 8, BI: Tales from the field). Insight Point of View 5

5 New technologies open the door BI tools are continuously evolving in power, performance and integration capability. Comprehensive solutions now emerging encompass a broad spectrum of capabilities, including: Data integration and access BI dashboards and reporting tools Databases and other data stores Analytical applications Transactional applications, such as ERP and CRM Significant technology developments, especially in the area of data management, are elevating the capabilities and efficiency of BI systems. The expanding use of metadata and federated queries, for example, allows organizations to control multiple, and at times conflicting, data stores. Business process applications provide intelligent navigation of data stores to gain better enterprise information at both the strategic and tactical level. Figure 1 describes an effective BI architecture. Figure 1. An effective BI architecture DATA SOURCES DATA MODEL DATA WAREHOUSE BI TOOLKIT BPM APPLICATIONS Dashboards Planning ERP Other legacy systems Retailer systems CRM HRMS External data feeds Channel Account type Sub-account type Data model 1 Customer Product Brand Consumer Segments Profitability KPIs 3 Corporate Regions Territories Modeling tools Analytics Reports Scorecards Scenario modeling Analysis Reporting Monitoring Execution Data quality managed and enforced at the source Consistent definitions that make sense to business users Integrated information base with context Integrated applications that form the core of planning and performance management DATA MANAGEMENT Documented procedures and responsibilities for managing key data entities through the entire life cycle Approve and create Modify and update Maintain Delete and archive For most organizations, BI implementation leverages existing infrastructure and uses enterprise-standard vendors, where applicable, to build out the framework components. Insight Point of View 6

6 Figure 2. The Oracle Enterprise Performance Management System REPORTING SCORECARDING ANALYTIC APPLICATIONS PLANNING Modeling Planning Budgeting Financial management Consolidation Scorecards Sales and marketing Financial analytics Human resources Order management and fulfillment Supply chain Verticals Common Enterprise Information Model Oracle Business Intelligence Foundation OLTP and OTS systems Data warehouse Data mart Essbase SAP, Oracle, PeopleSoft, Siebel, customer applications Files, Excel, XML Business processes Source: Oracle Corporation The case for comprehensive BI Technology vendors are working to pre-build applications with analytics and business processes at the core of the technology. They also are driving integration of these solutions. For example, Oracle s comprehensive suite of BI and performance management applications is designed to help organizations achieve greater business insight and higher performance by aligning the right information and resources to strategic objectives (Figure 2). Oracle s offering delivers business intelligence, planning and budgeting, consolidation, profitability management, and analysis and reporting capabilities across the enterprise. A unified data model provides a single, accurate view of enterprisewide information, promoting transparency, actionable analysis and rapid execution. Think big, start small, deliver quickly A BI implementation is a large undertaking for any organization. So where to start? To avoid the problems of narrow, departmental implementations, it s important to begin with a quick assessment of the organization s position on a BI maturity model. This assessment can help to articulate the company s current approach to BI and then to identify where improvements can be made as the company becomes more comprehensive in its ability to plan and execute BI initiatives. Figure 3 describes such a model. An initial assessment can help establish the overall strategic vision and road map. The road map can help guide where the organization is going and lay out goals and activities over the next couple of years. The next step is to select projects that can be put in place relatively quickly to start toward integrated, real-time BI. The best opportunities will be guided by where the organization is on the maturity model and how it fits into business requirements and goals. These quick-hit projects can be incorporated into the overall strategy and be Insight Point of View 7

7 BI: Tales from the field BearingPoint and Oracle have supported the deployment of business intelligence (BI) solutions in a variety of industries: Large U.S. bank To address compliance with the Basel II Accord, one of the 10 largest and most complex U.S.-based commercial banks set out to implement a credit risk data warehouse. BearingPoint assisted the bank in developing a robust, systematic process to incorporate data from dozens of source systems and leverage compliance needs to support strategic capabilities. BearingPoint received the 2006 Oracle North America Titan Partner Award in the category of Business Intelligence Solution for solutions BearingPoint has provided to clients over the last year. The Oracle North America Titan Awards are awarded to partners recognized as leaders in providing Oracle-based solutions and business practices developed or delivered during Oracle s fiscal year The resulting solution provides data for Basel II credit and equity risk capital calculations. It also facilitates credit risk and economic capital reporting. The solution features a robust reporting and analytics layer and ad hoc query capabilities. With the new solution, the bank is positioned to acquire deeper enterprise business insight by further extending the data warehouse to facilitate customer and product profitability reporting. Human resource consulting firm A global leader in human resource and financial services with operations in more than 40 countries wanted to implement a one-firm strategy for BI and customer relationship management (CRM). The company wanted to gain insight into its global pipeline and accounts, consolidate revenue reports for multinationals, and complete sales forecasts at different levels. We assisted the organization in aggregating data across multiple local platforms. We then helped create new standard reports for measuring sales and operational performance across the globe. The resulting solution now serves more than 4,600 CRM and 300 BI users, providing enhanced market intelligence and improved decision support for organizational leaders. The new system is also driving a new sales methodology, improving overall data quality and providing the functionality to manage client and team relationships more effectively. This global, enterprisewide solution is supporting higher revenue per client, an improved opportunity win rate and lower overall business management costs. Wireless service provider Recent Securities and Exchange Commission (SEC) regulations prompted a wireless service provider with more than 1.5 million subscribers to develop a BI strategy and key performance indicator assessment. We assisted the company in developing an enterprise data management environment, with a focus on addressing immediate inventory and service revenue reporting needs. The resulting solution automates 85 percent of the company s revenue bookings, provides consistent and reliable data, and standardizes business rules and data definitions across the enterprise. The solution also provides self-service analytics and ad hoc reporting capabilities. In addition, the company can now measure customer profitability for targeted marketing efforts on the scalable BI platform. Insight Point of View 8

8 Figure 3. A BI maturity model Traditional BI is being redefined as a broad-based enabler of business performance. To facilitate the journey, BearingPoint has developed criteria for the 5-level maturity scale developed by the former META Group. 5 Optimized 4 Managed 3 Proactive 2 Reactive 1 Aware Information management supports innovation Information assets are used for competitive differentiation Information development is a strategic initiative Focus on continuous improvement Best-in-class solution architecture exists Information is managed as an enterprise asset Well-developed engineering processes and organizational structures exist Functional integration of data across departments Enterprise management processes exist to make data meaningful to constituencies outside the original information creators Action occurs as a tactical response to issues Actions are specific to a system, function or department Minimal action has been taken for managing data Awareness that problems exist executed to build momentum. By demonstrating success through an iterative series of quick wins, BearingPoint believes that clients have a much greater chance to succeed than by executing on large, drawn-out, big-bang initiatives. Capitalizing on collaboration 2.0 Experience with other major technology transformations has made organizations wary of the major investments that may be required in new, potentially game-changing BI solutions. However, the growing use of collaborative development approaches in the new technology cycle can provide some comfort. Web 2.0 and an emerging set of open source tools such as Wikis, blogs, discussion boards and instant messaging are combining to push the envelope on information and idea sharing. This evolution is increasingly evident in the realm of enterprise application development. BearingPoint is embracing this trend toward open source tools and technology through our involvement in MIKE2.0. MIKE stands for Methodology for an Integrated Knowledge Environment. MIKE2.0 is managed by a mix of information management professionals consultants and vendors who are helping organizations grapple with information management issues, and professionals who are ultimately the managers, consumers and users of the information. MIKE2.0 is designed to be: Collaborative and multilingual. It s an open source online community of peers who are tackling the same range of problems. Insight Point of View 9

9 A bridge. It provides a way to link external reporting minimum standards with multiple internal data consolidation processes. Technology neutral and technology rich. We ll address processes and standards independently of technology, yet within the context of multiple technologies. BearingPoint and Oracle BearingPoint s experienced professionals help organizations deploy BI solutions powered by Oracle to guide decision making, monitor compliance and provide flexible business intelligence. We are Oracle s Systems Integrator Partner of Choice for BI solutions and a member of the Oracle Business Intelligence Partner Advisory Council. As a Certified Advantage Partner in the Oracle PartnerNetwork, BearingPoint has completed more than 2,000 Oracle implementations and upgrades in more than 50 countries. We were one of the first consulting companies to consolidate Oracle, PeopleSoft, JD Edwards and Siebel practices. With these products in one fold, we offer a global network of more than 3,000 professionals providing implementations, upgrades and strategic methodologies across the entire suite of Oracle products. Today, we are supporting Oracle Applications Unlimited and the evolution to Oracle Fusion Applications, Oracle s initiative to protect customer investments while extending and evolving the functionality of its current and emerging product lines. A way to remove barriers to entry. Most organizations are challenged by complexity and cost when seeking to advance their information management capabilities. The collaborative, open source approach of MIKE2.0 assists industry professionals in overcoming these challenges. Through the Data Governance and Management Consortium, BearingPoint, as founding member, is seeking to expand the adoption of MIKE2.0 and facilitate a commercial approach from technology vendors and systems integrators to map directly into their offerings. By its very nature, MIKE2.0 is serving as a true game-changing force in the market for BI tools, technologies and deployments. It offers information management professionals an initiative through which they can shape their industry build, embrace, influence and extend standards that govern the growing challenge of non-ledger data and information. Conclusion: Turning insight into action Exciting developments in BI technology are opening the door to dramatic improvement in business performance. Organizations can more effectively capitalize on this opportunity by taking a strategic approach to BI deployment. They can pursue long-term goals, while capturing immediate, incremental improvements in organizational performance and decision making. Enterprises that take the lead in deploying these powerful new tools can turn insight into action. About the authors Greg Molley is a BearingPoint managing director. He leads the firm s Oracle Business Intelligence practice and serves on Oracle s Business Intelligence Partner Advisory Council. Greg has more than 20 years experience in the services industry, with extensive concentration in financial institutions. His professional background includes leadership positions in finance, technology and marketing. Lawrence Manno, PMP, a BearingPoint director, is a leader in the firm s Oracle Business Intelligence practice. He has deep experience delivering large-scale data integration and enterprise technology projects across a variety of business functions. He has assisted clients in various industries and led initiatives for several global banks to deliver business intelligence, Basel II and CRM solutions. Joe Thomas is senior product director for BI Applications at Oracle Corporation. He has spent nearly 20 years focused on selling, marketing and implementing business intelligence, enterprise performance management and information portals. He has been a key part of the integration teams unifying the BI components of PeopleSoft, Siebel and Hyperion into the Oracle Business Intelligence portfolio of offerings. Insight Point of View 10

10 Helping our clients get sustainable, measurable results BearingPoint is a leading management and technology consulting company serving the Forbes Global 2000 and many of the world s largest public services organizations. Our more than 17,000 passionate, experienced consultants help organizations around the world solve their most pressing challenges, day in and day out. Through our collaborative and flexible approach, we help our clients get practical, sustainable, measurable results, make the right strategic decisions and implement the right solutions. We are BearingPoint, management and technology consultants. To learn more, contact us at BRNGPNT ( from outside the United States and Canada), or visit our Web site at BearingPoint, Inc International Drive McLean, VA BearingPoint, Inc. All rights reserved. Printed in the United States. BearingPoint is a registered trademark of BearingPoint, Inc. or its affiliates in the United States and other countries. Any other marks are the property of their respective owners. C USRD983