Th B e usi ness rategy behind Business Intelligence and The C loud Cloud

Transcription

1 The Business Strategy t behind Business Intelligence and The Cloud

2 Business Intelligence (BI) Page 2 What it is 1. Presentation of concise, relevant and timely performance metrics 2. Easy to read snapshots of specific summarized information used to evaluate performance and progress 3. KPI reports and dashboards that consolidate data from multiple sources What it isn t 1. The same old data put in pretty charts 2. Designed by IT 3. Software

3 Why do companies need BI? Page 3 Where is the pain? 1. Monthly reports don tcutit managers need to assess performance in real time 2. Business systems produce too much data and not enough information 3. Generic reporting often fails to tailor information to the audience BI should: 1. Quickly synthesize the most valuable information 2. Provide the right ihtlevel lof fdtilf detail for the user 3. Deliver information that supports the business strategy

4 What comes first... Strategy or Analytics? Page 4 BI delivers contextual, relevant and actionable insight, resulting in improved decision-making and better-informed actions. Successful BI delivers the metrics that support business strategy Therefore, the business strategy must be defined before BI metrics are created

5 BI Process Page 5 Evaluation and Action Steps Analytic Tool Reporting/Dashboard Tactical Business Action Individual id Metric Strategy Goals Design Steps

6 What makes for effective BI? Page 6 Too many organizations simply summarize financial reporting and call it business intelligence. Is this really effective BI? Are your goals and performance metrics just financial? What non-financial metrics are drivers or indicators of success? What are the predictive indicators of business performance? Do sub-groups and departments have unique goals, metrics or indicators? Effective BI defines and delivers the true drivers and indicators of business success. The key to effective BI is identifying the right business metrics to track. The technology, tools and dashboards are just enablers.

7 Tailoring to specific audiences Page 7 1. Board Focus their attention on the strategy... not the details Summarized information, not just financial Compare plan to actual wherever possible 2. Senior Management Key operational, financial and market metrics that measure progress against the strategic plan Roll ups of departmental and functional metrics 3. Functional Managers Focus on the metrics managers can control or influence Regularly remind operators of their plan and strategy Provide detail and more focus on current activity

8 BI Development Steps Page 8 1. Start out small (a single audience, department or group) 2. Gather copies of current reporting from all sources 3. Gather copies of strategic plans, departmental and individual goals 4. Interview leaders from the group to understand: Current useful key indicators and metrics Current reports that tare never used Requested key indicators and metrics Drivers of strategic plan success Indicators of future problems

9 BI Development Steps (continued) Page 9 5. Define the relevant points of information Tie the dashboard directly to their plans Timing i and time frame of data Context trends and ratios 6. Develop a draft mockup of the dashboard: Use graphics where they make it more interesting and informative Reduce detail where possible Use summary key indicators/metrics (Output/Input = Productivity) (Value added/cost = Profitability) Show trends turn static data into information Identify the source data and database locations

10 BI Development Steps (continued) Page Collaborate between finance and business application experts to identify and determine locations of existing data 8. If key data is not available, create data collection and storage processes 9. Meet with the target users, technology support and the BI application provider to define the delivery methods 10. Determine BI/dashboard delivery method to end-users Cloud? 11. Develop and implement your BI/dashboard solution 12. Periodically meet with users to assess and improve the tool 13. Start over at Step #1 for your next group

11 BI in The Cloud Page 11 Cloud a new word or phrase Location, location and location Delivery methods Transparent to the end-user Cloud is a tool and part of the strategic plan Business reason to use the cloud Workforce mobility Data and systems may be more secure, reliable and supported in a data center

12 Cloud Strategy Page 12 Should you be in the cloud? Each organization has unique needs, requirements and situation Cloud is not a strategy - it is a tool Develop a technology plan that correlates to your business plan Start small to test your culture, support services, speed, etc. Any change in technology is an opportunity to improve business processes Bf Before doing di anything PLAN

13 Planning for The Cloud Page 13 Strategic and business reasons for utilizing the cloud Expected benefits of a move to the cloud Understand the expected effect on technical and non-technical staff How will the cloud affect current business processes? Cost, benefit and compare to current costs Access to the Internet in remote locations Current substantial investment in infrastructure and technology staff Company culture regarding technology support and frequency of change Risk of critical business applications and data files on the servers of another company Loss of control of technology Understanding and transparency of the cloud provider s internal controls, security and encryption, and disaster recovery/business continuity

14 Questions or Comments Page 14 Douglas Askam CPA, CITP Partner EKS&H Kent McSparran Partner EKS&H