Business Intelligence Project Prioritization System

Transcription

1 THINK TANK FIVE: COMPETITIVE INTELLIGENCE AND MARKET RESEARCH GIL 2012: SILICON VALLEY Business Intelligence Project Prioritization System FEATURING Enterprise IT Solutions (EITS), a division of L-3 Communications Holdings, Inc. DAN GOLDENBERG Global Vice President, Growth Partnership Strategy Frost & Sullivan Dan.Goldenberg@frost.com

2 Agenda TIME CONTENT 9:45 Business Intelligence Project Prioritization System A case-based best practice presentation on how the EITS Division of L-3 developed a system to prioritize its BI (market research and competitive intelligence) project portfolio, allocate resources, and reduce redundant requests. FACILITATOR: Dan Goldenberg, Global Vice President, Growth Partnership Strategy, Frost & Sullivan 10:45 Building a Sustainable Companywide Intelligence Network A case-based best practice presentation on how Cintas created a self-sustaining competitive intelligence (CI) network that involves the entire work force. FACILITATOR: Dan Goldenberg, Global Vice President, Growth Partnership Strategy, Frost & Sullivan CO-FACILITATOR: Troy Pfeffer, Competitive Intelligence Director, Cintas 2

3 The Growth Team Membership (GTM) GTM is a subscription program that supports executives within the functions that report to the CEO CEO s Growth Team GTM provides best practices, events, and services that enable executives to address challenges within their companies GTM: Creating Client Value GTM s case-based best practices help executives: R&D/ Innovation Corporate Strategy Sales Leadership Speed the design and implementation of initiatives by not reinventing the wheel Marketing CEO Corporate Development Save money and reduce risk by avoiding mistakes made by other companies Investors/ Finance Competitive Intelligence Competitive Intelligence Market Research Market Research Accelerate problem-solving with a cross industry perspective Improve their functions and companies performance and productivity 3

4 Profiled Best Practice Company Firm: Enterprise IT Solutions (EITS), a division of L-3 Communications Holdings, Inc. Industry: Headquarters: Geographic Footprint: Ownership: Revenue (2009): Aerospace and Defense New York, New York, USA Global Public $15.6 billion USD 4

5 Growth Challenge Problem: EITS Business Intelligence (BI)* struggles to prioritize its project portfolio, allocate resources, and reduce low value requests. * Business Intelligence encompasses Competitive Intelligence and Market Intelligence. 5

6 Business Intelligence develops a system to prioritize requests and allocate resources accordingly Project Request Classification and Prioritization System Overview Start: Evaluate Business Intelligence Request Objective: Determine if request is ad hoc or part of the year s baseline projects. Ad Hoc Project Objective: Classify requests as high or lowpriority based on their potential business impact and required resources. Percentage of Projects in Pipeline: 80% Ad Hoc Baseline Knowledge Project Objective: Allocate pre-determined resources, place into project portfolio, and address when able. Percentage of Projects in Pipeline: 20% Baseline Knowledge High-Priority Percentage of Projects in Pipeline: 30%. High- Priority Low-Priority Percentage of Projects in Pipeline: 50% Low-Priority 6

7 Assess ad hoc requests through formal criteria that compare business value to resource investment Ad Hoc Request Evaluation Criteria BUSINESS IMPACT RESOURCE INVESTMENT Strategic Fit BI Time Requirement Determine the request s alignment with strategic initiatives Estimate the amount of time a request requires Tactical Value Calculate the value that a request adds to a customer proposal BI Resources Quantify the request s external (secondary) and internal (primary) research costs 7

8 Standardize project assessments by organizing the impact and resource investment criteria into a checklist Using the Project Prioritization Checklist: Low Priority Example Prioritize the Request Business Impact =1 Low Tactical Value Impact on Company Revenue:: ;; < $10 Million (USD) High Resource Investment =7 Business Impact < Business Impact Resource Investment ity r io t Pr ues w Lo Req Identify Action Steps Strategic Fit High profile request Aligns with strategic objective ;; Not aligned with strategy What is the project s impact? $11 to $99 Million (USD) > $100 Million (USD) When is the project due? Potential to lead to more contracts with this customer Resource Investment BI Time Requirements Team Hours: ;; < 8 hours Due Date: Flexible due date Long-term 8 to 40 hours > 40 hours ;; Inflexible due date Is funding available? ;; immediate/short-term BI Resources Required Funding available by requestor: Yes ;; No External Resources (secondary research, consultants, research partnerships): Minimal ;; Moderate Extensive What resources are available? ;; Requires secondary research Requires travel Internal Resources (primary research conducted by BI staff): Minimal ;; Moderate Extensive ;; Information available on BI Portal Internal collection and analysis Primary Research Survey Internal focus group 8 External focus groups Low-Priority Action Steps: ;; Refer requestor to BI Portal Respond quickly with a brief answer Negotiate due date and place in long-term project portfolio

9 Establish a self-service portal to absorb low-priority requests End-User Engagement Business Intelligence Portal Components BI Interviewee End-User Interviews Interviewees: Senior vice presidents, six vice presidents, and 10 directors from a range of business units and functions Objective: Identify information needs to develop a user-friendly self-service BI Portal. BI Documents Library Provides access to business intelligence reports and studies. Databases Provides links to external sources, reports, and databases. Competitor Wikis Provides competitor profiles presented as wiki pages. User Support Provides guidance and tools to help end users use the portal. 9

10 Tailor BI s role to maximize the value of high-priority projects Phase 1. War-Game Prep Work Phase 2. War-Game Guidelines Phase 3. War-Game Debrief Objective: Develop a competitive strategy based on strengths, competitors anticipated actions, and customers preferences. L-3 EITS s Current Market Share Targeted Customer Review Competitor Maps visual representation of competitors in this market Competitor A Review Competitive Overview: --Summary of the competitive environment --Summary of each competitor s potential actions --Suggested responses to each competitor s moves How-to-Win Strategy --Suggested tactics from BI team --Best practices for implementing BI s suggestions 10

11 Configure baseline knowledge projects that pre-empt ad hoc requests Baseline Project Example: Annual Win/Loss Report Illustrative Report Contents Typical Ad Hoc Questions Supplementary Content The Annual Win/Loss Report Includes: Graphs Summaries Highlights Noteworthy Wins Based on our history, what contracts should we expect to win next year? What can we do to increase our wins with high-value contracts? BI Includes recommendations on trends in wins and losses for: Best-fit contract types How to improve strategies and goto-market planning for specific contract types 11

12 Business Results BI Project (Illustrative) BI Portal Usage (Illustrative) 300 2x Number of 150 x Average Number of Portal Visitors per Day Year Year BI Project Portfolio (Illustrative) 100% 75% 25% 60% Planned Ad hoc BI 50% 75% 25% 40% 0%

13 GTM Members can access the full 11-page Best Practice Guidebook Download the complete Best Practice Guidebook at your Growth Team Membership client portal. The Guidebook includes: Full content and guidance Key Lessons Learned Tools and Resources Section growth team membership growth team membership Best Practice Guidebook The contents of these pages are copyright 2009 Frost & Sullivan. All rights reserved. best practice guidebook best practice guidebook Business Intelligence develops a system to prioritize requests and allocate resources accordingly key takeaway: Project Request Assess Classification ad hoc and requests Prioritization through System Overview formal criteria that compare business value to resource investment Business Intelligence Project Prioritization System BI uses a set of screening Evaluate questions Business Intelligence to make the Request evaluation criteria user-friendly guidebook summary Objective: Determine if request is ad hoc or part of the year s baseline projects. Ad Hoc Request Evaluation Criteria Firm: Enterprise IT Solutions, (EITS), a division of L-3 Communications Holdings, Inc. Industry: Aerospace and Defense Headquarters: New York, New York, Business USAImpact Criteria Resource Investment Criteria Geographic Footprint: Global Ad Hoc Project Baseline Knowledge Project Ownership: Public Strategic Fit BI Time Requirement Parent These Company unplanned Revenue Purpose: projects (2008): need Determine to be $14.9 prioritized the billion request s and USD placed alignment with strategic initiatives These pre-planned Purpose: projects include Estimate annual, the amount monthly of and time a request requires in the BI project portfolio. weekly reports, white papers, or updates to previous or Baseline Screening Questions: Screening Questions: Knowledge ongoing research. BI forecasts the number of these projects Problem: Objective: Classify project Is the requests high as high- profile? or lowpriority based Intelligence on their Business and Results: resource needs in its Can annual the answer planning. be The quickly projects researched and ed to the EITS Business Is (BI)* potential the request struggles business related to impact to prioritize and a strategic its objective? project 35% topics reduction are mostly in ad determined hoc requests requestor? through requests. portfolio, required allocate resources. resources, and reduce low-value requests. Ad Hoc 400% increase in daily visitors to BI portal What impact will the answer have on the company s objectives? Objective: Allocate pre-determined Will this request resources, require place more than eight hours to complete? Consequently, Percentage BI of has Projects to manage: in Pipeline: 80% Resources requests Required: in project portfolio, Will this and request address require as capacity three to four weeks to complete? A small staff relative to its large number of internal customers permits. Two months to develop and refine the prioritization system Variability in the importance and urgency of requests Six months Percentage to of develop Projects in and Pipeline: roll 20% out a self-service Web 2.0 portal. The A disproportionate amount of time spent on reactive or ad hoc process involved internal client focus groups requests Tactical Value BI Resources Redundant or repetitive project requests Applicability of Best Practice to Executive Functions: Low-Priority : Purpose: Calculate the value that a request adds to a customer Purpose: Quantify the request s external (secondary) and internal Function proposal (primary) research costs Applicability Solution: 60% can be referred to the BI Portal Business Intelligence develops a process that: Competitive Intelligence 40% require less than 8 hours to complete High-Priority Screening Questions: Low-Priority Prioritizes ad hoc projects based their business impact and Market Research Screening Questions: resource requirements What revenue could this project generate? What are the direct costs (e.g., travel, primary research)? ; Business impact: Has high revenue potential or ; Business impact: Has low revenue potential and Establishes supports action a strategic steps What commensurate initiative urgent problem with is project s the request importance helping solve? and low strategic alignment What are the indirect costs (e.g., consultants, secondary available What financial impact will the answer have on a current research, conferences)? ; BI resources : Requires more than 40 hours to ; BI resources: Can be addressed in less than eight Low-Priority complete has an project, immediate proposal, and inflexible or acquisition? due date hours or has a flexible How due date will the request affect current projects and completion Creates a BI portal that allows self-service for low-priority requests dates? Percentage of Projects in Pipeline: 30% High-Priority Percentage of Projects in Pipeline: 50% Can the requestor cover the direct costs? Example Deliverable: War-gaming session Example Deliverable: Documents Library section of the BI Portal * In this Guidebook, Business Intelligence encompasses Competitive Intelligence The contents of these pages are copyright 2009 Frost & Sullivan. All rights reserved. and Market Intelligence. The contents of these pages are copyright 2009 Frost & Sullivan. All rights reserved. growth team membership Source: EITS, L-3 Communications Holdings, Inc; Source: EITS, L-3 Communications Holdings, Inc; 13