Business Intelligence at the University of Minnesota Defining the need and the solution for a comprehensive decision support system for the University of Minnesota Internal Communications Network December 16, 2010 Peter M. Radcliffe Executive Director Office of Planning and Analysis
How do we make good decisions? Good decisions bring together Evidence and Information What does reality look like? How do the parts fit together? Expertise and Judgment How will stakeholders respond? What resources are available? What are our goals?
Paths to improving decision-making Attempt to improve the decision-maker s skills or enrich their context The University provides professional development and training for leaders through internal and external opportunities Business intelligence is a strategy to increase the quality, accessibility, and use of evidence
What is business intelligence? Many different ways of phrasing concept by different authors General concept is captured by: "BI represents an integrated set of technologies and processes that use data to analyze and understand organizational performance" Most importantly, BI is not a software package or set of tools, but a comprehensive strategy
What s in a name? There are often concerns surrounding the application of ideas from the corporate or business world into academic decision-making The concerns reflect uncertainties about how decisions will be made and what information will be used to make them Business intelligence is a well studied, well articulated, widely applied concept BI has the potential to increase transparency, which has the potential to increase trust
Business Intelligence Initiative People and Processes Data governance common definitions and consistent practices Forum for collaboration and sharing spreading innovations and insights Training and development tools, analysis, and process improvement Tools and Technology Oracle Business Intelligence Enterprise Edition (OBIEE) Dashboards tabular and graphic reporting Analytics Ad hoc pivot table like reporting tool BI Publisher Report writer for Peoplesoft and/ or local data sources
What is the Need? University demand well documented more than a dozen institutional reports have investigated and reported on the need for validated data, tools and dashboards, metrics and measurements, and increased analytic capacity. PEL 2009 Academic Analytics Report
Consensus from University of Minnesota task force reports support BI as a priority Foster agreement and use of metrics and analytic tools Engage leadership support Develop quality assurance for each Enterprise System Create clusters of analytic staff and approaches Need for tools and dashboards Units have unique needs Need for data validation and oversight Need for analytic skills Themes Recommendations Perceptions of the Office of Institutional Research 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Source: PEL Academic Analytics analysis of 13 University of Minnesota task force reports
Why now? Our costs are escalating State appropriations are unlikely to rebound significantly Demographics will increase the competition for scarce resources As an institution we must innovate and improve efficiency and productivity
Higher Education and Consumer Inflation 1983-2009 300 HEPI Index Value (1983=100) 250 200 150 100 50 0 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 CPI
Minnesota Higher Education Expenditures per $1,000 Disposable Income $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $- 1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009
Trends in Tuition & State Funds 1997 to 2011 $800.0 $700.0 $600.0 $500.0 Tuition State Funds $400.0 $300.0 $200.0 $100.0 $0.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Percentage of projected Minnesota population by age group 2008-2040 25% 65+ 20% 15% 10% 18-24 5% 25-29 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
How can BI help? Student recruitment and retention Monitor and predict enrollment or dropout Each incremental student generates over $8,000 in tuition annually on average Course scheduling and support Optimal course offerings and timing reduce costs and increase graduation An incremental course costs about $10,000 in salary and fringe Total UofM instructional costs roughly $700 million
How else can BI help? Purchasing Analysis of unit spending by category/item Total UofM purchasing about $1 billion Employee satisfaction Analysis of survey results to pinpoint issues Avoid search costs and lost productivity due to turnover
Collaboration and sharing Shared data a common home for institutional and unit data Shared understanding consistent data definitions and usage Shared tools a common suite of reporting tools for central, unit, or blended data Shared development units can develop and share their reports without waiting for central resources to be identified and assigned
Empowering faculty and staff Easier to use reporting tools empower faculty and staff to access the data they need Customizable report templates empower units to organize data to meet their specific needs Centrally supported tools empower units to develop their own reports and data-driven processes without heavy IT infrastructure investments
Implementation Implementation BI Implementation Committee Production BI Steering Committee BI Project Teams Data Governance U of M Analytics Collaborative
Organization supporting collaboration Business Intelligence Steering Committee Will provide overall direction and coordination Data governance committee Connect data custodians and other actors responsible for data integrity University of Minnesota Analytics Collaborative A virtual organization serving as a business intelligence competency center to guide and promote training, improve metadata, and facilitate innovation, sharing, and cooperation
Training: U of M Analytics Collaborative Source: How to Define and Run a Successful Business Intelligence Competency Center, Gartner, August 2007
Why use new tools? The Oracle BI toolset give us capabilities that are harder to produce otherwise, and are easier to use Improving ease of use democratizes access to data Improved sharing of innovation speeds dissemination of good ideas and best practices
1 Pre-built warehouse with more than 16 star-schemas designed for analysis and reporting on Financial Analytics Data: EDW & EPM 3 Pre-mapped metadata, including embedded best practice calculations and metrics for Financial, Executives & other Business Users. Presentation Layer Logical Business Model Physical Sources 2 Pre-built ETL to extract data from hundreds of operational tables and load it into the DW, sourced from Peoplesoft. 4 A best practice library of over 360 pre-built metrics, Intelligent Dashboards, 200+ Reports and alerts for CFO, Finance Controller, Financial Analyst, AR/AP Managers and Executives
Tools: Integrated set of Technologies in BI Continuum Strategic Dynamic Answers Dashboards Answers Dashboards Modeling Past Oriented BI Publisher PS ReporCng Answers Gateway Access PS Query Answers BI Publisher Ad-Hoc Query & Reporting Analytics Future Oriented Standardized Reporting Operational Static
Tools: OBIEE BI Interactive Dashboards BI Answers Ad hoc Analysis BI Delivers Microsoft Office Plug In Reporting & Publishing BI Publisher Common Enterprise Information Model Oracle BI Server OLTP & ODS Systems Data Warehouse Data Mart Oracle PeopleSoft, Siebel, Custom Apps Files Excel XML Business Process Other Local/ Enterprise Systems
BI Program History FY 2006 - On six year strategic plan Q1 2010 - OIT BI initiative kick-off Q3 2010 - Pilot Project with Oracle BI Tool Suite completed Q1 2011 - Tool Purchase and Program Planning FY 2011 - Initial Implementation
Implementation Timeline Fall 2010 Winter 2011 Spring 2011 Summer 2011 Future Planning and needs identification Analysis and design of test projects Implementation of test projects Rollout and training, establishment of governance and collaboration groups Expansion of content and distributed development
Key Success Factors Training and Skill Development U of M Analytics Collaborative Developer/Support Training Data Enterprise Data Warehouse (EDW) Enterprise Performance Management (EPM) Data Governance Tools Oracle BI Enterprise Edition (OBIEE)
Discussion and Updates We will continue to communicate with the University community through multiple venues To receive updates on the progress of the BI program, please send a request to opa@umn.edu (Office of Planning and Analysis)