How and Where to Get Started. with Business Intelligence (BI)
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1 How and Where to Get Started with Business Intelligence (BI)
2 Paul & Lisa Paul Keogan Founder and Principal at BackOffice Thinking Leading technology consultant for the past 20 years. Lisa Streight West Ohio Conference Communications Marketing & communications professional for 20 years
3 Our Goals We hope that you will leave with at least: A better understanding of Business Intelligence and its value for nonprofits. Two or three action items that you can implement next week. An idea of appropriate tools for your nonprofit. Collaboration Notes:
4 What is Business Intelligence? Simple: Use the past to predict the future. Traditional: A process to transfer data to actionable information. Our Take: Using data to create stories that drive decisions and actions resulting in success of your mission.
5 Why is BI Important for Nonprofits? Reduces reliance on gut instinct decision making. Leverages existing Constituent Relationship Management (CRM) database. Discourages silos by encouraging cross-department data sharing. Helps allocate limited resources.
6 Key Definitions KPI: Key Performance Indicator Driver: Something that influences the KPI Data Discovery: Less structured approach to data exploration, more about discovering hidden patterns and trends. We will not be discussing key words like: Fact, dimension, attribute, OLAP, etc. We re staying away from IT-centric BI tools & terms.
7 Example of a KPI and its three Drivers Campaign Increase Recurring Donations Attend Event Direct Ask
8 BI in a Faith-Based Industry About the West Ohio Conference: 1100 churches 900 active clergy 180,000 constituents Congregation sizes from 25-10,000 Central office with 8 satellite offices Led by Bishop and Cabinet
9 Pros and cons Pros: Cons: Lots of available data Hungry to learn Motivated to stop decline Highly mission focused Integrity Have CRM Have key internal sponsors Behind in technology Low-tech users Silos of information Finance & IT driven Slow decision making Limited supply of resources
10 Key Performance Indicators Our Breakthrough Goals expressed as measurables Number of Professions of Faith Average weekly worship attendance Average small group attendance Members engaged in mission & outreach Average weekly giving
11 Key Drivers Resources for refocusing church s primary mission Cultural sensitivity training Provide free access to basic needs Meet neighborhood needs Partner with community agencies Members engaged in mission and outreach Local and global mission trips
12 User-friendly dashboard
13 Immediate feedback
14 Viewable trends
15 Visual storytelling
16 User input
17 What story is the data telling us? Which churches don t know how to set appropriate goals. Where hot spots of growth are. Which churches need resources for KPI s. Which churches may need help with finances. Potential successful churches to send interns, residents Where success stories are that can be shared.
18 Next steps Measuring what drives successful churches Develop resources based on key success drivers Cabinet dashboard for big picture decision-making Automated reporting to leaders Celebration of milestones
19 Software $14.1B market in 2013, expected to grow at 8.7 % through 2018 (Gartner) Evolving quickly Data discovery vs. traditional BI faster implementation; easier tools Newer leaders (Tableau, Qlik) are based more on data discovery Becoming more integrated with other enterprise software (Salesforce) On the high end more use of: natural language in making sense of unstructured data geospatial techniques in data analysis
20 Magic Quadrant Source: Gartner 23 February com/technology/reprints.do?id=12aclp1p&ct=150220&st=sb
21 Software Nothing specifically built or marketed to nonprofits BUT the trend in data discovery is very positive for nonprofits Less expensive Easier to use understand Natural Language
22 Salesforce: Salesforce Analytics Cloud (Wave) works with Salesforce and non-salesforce cloud data this is an initial offering; lacks more advanced features for data exploration Strong on usability, mobile, visualizations Robust partner eco-system Pricing: Wave + user my summary of the latest Gartner analysis: about ¾ through the white paper
23 BUT... the last thing to do is to pick software.
24 Why Business Intelligence is Important Time saving Eliminate time spent on unproductive initiatives Eliminate time spent crunching numbers Discover relevant patterns and insights in data that change what your organization does Become a data driven decision making organization Data Driven organizations outperform competitors! source:
25 Why Business Intelligence is Important Examples: Fundraising: Donors respond better to personalized attention, but what donors warrant the additional time and expense Programs: Some programs take longer to succeed, but what slower moving programs are worth the additional time and resources
26 Keys to Success Tell stories / provide visuals; it will change the culture: Non-techies are comfortable with the outcome and results and are becoming curious People want to experiment and adopt There are only a few KPIs with clear links to organizational goals You're able to communicate what you re doing throughout your organization and Board of Directors
27 Why aren t all nonprofits data-driven? Blockers: Lack of skills Don t know how to start Resistance Stallers: Information silos Started but approach is not working Software first approach; too tech dominated Too many or can t decide on KPIs
28 Everyone can do this, but. Don t expect a silver bullet Getting good takes time You will make mistakes Discovering relevant patterns and insights in data is tough
29 Who Should lead this effort Defining the goals and KPIs: Executive Director or high ranking person The number one reason why BI projects fail is they are led by IT or technology strategy
30 Diagram of the process Develop KPIs Grey = First run through Blue = Run additional tests Brainstorm possible Drivers Green = Develop new Controls Develop Controls or Variables Red = Brainstorm new Drivers Run a Test Measure / Analyze
31 Simple Fundraising Example KPI: Number of Recurring gifts Possible key variables Possible Drivers: Direct Mail Appeals Phone Calls Fundraising Event Age, Income Level Volunteer History Giving History Letter: Direct Ask Indirect Ask Signed by Ex Dir Not signed by Ex Dir
32 Simple Fundraising Example Controls: Volunteer Largest Gift Results: % that gave a recurring gift What other variables may affect results? What s the Story? Next Steps? Volunteer / Largest Gift last 12 months Regular Volunteer Infrequent Volunteer Never Volunteer < $25 3.1% 0.0% 0.1% $26 - $50 3.2% 0.5% 0.2% $51 - $ % 0.4% 0.2% $100 - $ % 3.1% 4.8% >$ % 5.2% 6.1%
33 Diagram of the process Develop KPIs Grey = First run through Blue = Run additional tests Brainstorm possible Drivers Green = Develop new Controls Develop Controls or Variables Red = Brainstorm new Drivers Run a Test Measure / Analyze
34 How BI tools can help Data Discovery: Run tests without needing define data to control Examples: Tableau and Qlik In our example we needed to control our variables and review our data in a matrix or two dimensions With a Data Discovery tool, the tool helps you discover which variables are most important (age, gender, highest gift, most recent gift, etc.) If you have the data, the tool can tell you which is the most important You can compare results across over time You ll make improvements quicker
35 How BI tools can help Advanced Reporting: Develop reports that include complex calculations and different summary levels Examples: Tibco s Jasper - Community Run reports automatically, automatically Make available on the web and through portals
36 How BI tools can help Data Visualization: Develop visualizations that tell stories Update real time as data changes Make available on flat screens in your office Tell stories
37 How BI tools can help Prerequisites to adding an advanced BI Solution A CRM/Donor management or AMS A sizable constituent database; several thousand at a minimum Dedicated time/money to choose the right tool You ll need data to analyze You may start with an inexpensive tool or collection of tools Executive Ownership/Sponsorship A leader (not from IT)
38 Interactive Sessions Let s separate into small groups and start working through our next steps: People in groups should be looking to work on similar activities Defining KPIs Defining Drivers and Controls Defining tests Discussing results and repeating tests Discussing BI tools
39 Diagram of the process Develop KPIs Grey = First run through Blue = Run additional tests Brainstorm possible Drivers Green = Develop new Controls Develop Controls or Variables Red = Brainstorm new Drivers Run a Test Measure / Analyze
40 Thank You Evaluation Survey: Collaboration Notes:
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