Business Intelligence Turning Data into Profit. By: Ryan Rigby

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1 Business Intelligence Turning Data into Profit By: Ryan Rigby

2 Who am I? 15+ years experience in Business Analysis, Product Management, Project Management and Management Consulting Past President of IIBA Vancouver Chapter Certified CBAP, PMP, Agile Scrum Master and Product Owner

3 Key Learning Points What is Business Intelligence (BI)? The Business Intelligence Recipe Real World examples of Business Intelligence Visualizing Business Intelligence New Business Intelligence terms

examples of Business Intelligence Visualizing

4 What is BI? Business Intelligence (BI) The right information in the right context to the right person at the right time, which in turn, gives organizations the insight they need to achieve real business agility Set of methodologies, processes, architectures, and technologies that transform raw data into meaningful and useful information used to enable more effective strategic, tactical, and operational insights and decision-making Identifying key trends and patterns in your data that have the potential to unlock new growth opportunities, streamline processes and/or reduce costs

the insight they need to achieve real business agility Set of methodologies, processes, architectures, and technologies that transform raw data

5 Impressions of BI

6 BI helps answer Business Questions like..

7 I know that half my advertising budget is being wasted but which half? Lord Leverhulme

8 Who are my customers?

9 Which of my customers are the most profitable? Which of my customers with the least cost could I turn into more profitable customers?

10 Which of my products are the most profitable?

11 What are my highest costs?

12 Which costs can I cut and how, with the least impact?

13 How do we find the best employees? What do our employees think of us? What can we do to retain employees?

14 More reasons on why BI is becoming so important today Evidence Based Decision Making Cloud Enablement Advancement of Analytics Companies who use BI have a 6% higher productivity 1.5M shortage of people in the US to support BI in the coming years From Wall Street Journal - 18 th Sept % of CIOs from Fortune 500 companies said that BI is one of their top priorities 51% of Fortune 500 companies plan to increase spending on BI in the next year

5M shortage of people in the US to support BI in the coming years From Wall Street Journal - 18 th Sept 2013 44%

15 Is business intelligence just for management? Strategic vs. Tactical

16 Strategic BI Historical Data Analysis Data Centric Future Oriented Typically involves the thinkers in the company

17 Tactical BI Deals with the here and now Uses Real-Time Data Activity Centric Provides information to support decision making to align with strategic goals Involves whole company across all departments

18 Business Intelligence Done Right Turns: Raw Data into Information Information into Knowledge Knowledge into Decisions Decisions into Profits

19 The Business Intelligence Recipe

20 Business Intelligence Recipe Step 1 - Bring in your BA & PM (Team)

21 Business Intelligence Recipe Step 2 - Identify and engage stakeholders across the organization Source: Alec Sharpe Clariteq Systems Consulting Ltd.

22 Business Intelligence Recipe Step 3 - Determine what Business Questions are we trying to address?

23 Business Intelligence Recipe Step 4 - Determine your metrics for answering the business question

24 Business Intelligence Recipe Step 5 Determine your sources of raw data

25 Business Intelligence Recipe Step 5 Determine your sources of raw data

26 Business Intelligence Recipe Step 6 - Turn that Data into Information

27 Business Intelligence Recipe Step 7 - Get the information in front of the Right Group and Analyze it (Knowledge)

28 Business Intelligence Recipe Step 8 - Identify and implement new changes (Decisions)

29 Business Intelligence Recipe Step 9 Rinse & Repeat What else can we learn? Additional business questions

30 BI Project Methodology How is a BI project different then a traditional project? Business analysts have typically worked to a requirementsbased model, answering clearly-defined business questions. BI however, demands a different approach, using opportunistic analytics and exploring answers to ill-formed or nonexistent questions. (Gartner)

31 Where is the value in BI?

32 Real World Examples - Airlines Average Airline profit margin 2% (run a loss 6yrs out of 9yrs) To buy 737NG is $70M 787 costs is $210M To lease 737NG - $250k+pm $750k+pm Airline issues - Maximizing Revenue Lowering Costs Delays, Fuel, Maintenance

33 Real World Examples $82B in revenue, $4B in profit (2012) 172,000 employees 12,000 airplanes currently in service (75% world fleet) Production rate airplanes per month airplanes per month 787 Program Cost (2011) $32B Boeing handled 1.1B parts last year 60 Petabytes (60k Terabytes) of data on its network 787 Battery Problem

34 Real World Examples MEC 40 years old 4M Members Started in employees, $65 startup capital Today 1,800 employees, 17 stores, $300M revenue New logo announced 18 th June 2013

35 Real World Examples Smarter Cities City of Oakland has used SeeClickFix IBM developed algorithms to identify efficiencies in municipal water provision Fehr & Peers has produced network simulations to inform the design and operation of transportation systems from Silicon Valley to Kunming, China UrbanVision 3D simulator to help the public more fully understand their choices for development Carnegie Mellon has campus-wide sensors for monitoring water, power, infrastructure, biometrics, and others systems. Oakland has implemented map based infographics for crimespotting. City of Minneapolis has a tool to integrate data streams for events, permits, incidents, and infrastructure.

36 Visualizing Data - Historically

37 Visualizing Data - Historically

38 Visualizing Data

39 Visualizing Data

40 Visualizing Data

41 Visualizing Data

42 Visualizing Data

43 Visualizing Data

44 Visualizing Data

45 Visualizing Data

46 Visualizing Data

47 Visualizing Data

BI Buzz Words Big Data Big Data is the term for a collection of data sets so large and complex that it becomes difficult to process using onhand database

48 BI Buzz Words Big Data Big Data is the term for a collection of data sets so large and complex that it becomes difficult to process using onhand database management tools or traditional data processing applications. The challenges include capture, curation, storage, search, sharing, transfer, analysis, and visualization.

49 BI Buzz Words Web Analytics Web analytics is the measurement, collection, analysis and reporting of internet data for purposes of understanding and optimizing web usage. Web analytics is not just a tool for measuring web traffic but can be used as a tool for business and market research, and to assess and improve the effectiveness of a web site.

50 BI Buzz Words Predictive Analytics Predictive analytics encompasses a variety of techniques from statistics, modeling, machine learning (learning engines), and data mining that analyze current and historical facts to make predictions about future, or otherwise unknown, events

52 Review What is BI? BI Recipe BI Real World Examples Ways to visualize complex data BI terms

53 BI Recipe Steps 1. Bring in your team 2. Identify and engage your stakeholders 3. Identify which business questions to address 4. Identify your metrics 5. Identify sources of raw data 6. Turn the data into information 7. Share the information with the right group (knowledge) 8. Make Decisions 9. Review Did our profits increase? What other questions can we ask?

54 Final Thoughts BI does not show what one is not doing Data offers no knowledge about potential markets where a company does not yet compete, human intuition and experience still play key roles. You must continue to ask the right questions and, if necessary, seek out data you don t already have.

55 Questions?

56 Contact Information Sources

Cloud-based data warehousing to power aviation analytics

Cloud-based data warehousing to power aviation analytics Big Data Workshop Transportation Research Board Annual Meeting January 12, 2014 Dr. Tulinda Larsen Vice President tulinda@masflight.com +1 443.510.3566