UPDATED 6/27/08 1/13 U-M Business Intelligence VISUAL BI Logo What is BI? Who uses BI? How can BI help me? Where do I start? Download BI templates and logos www.bi.umich.edu FULL TEXT Welcome to the University of Michigan Business Intelligence community! This presentation will give you a brief, high-level introduction to the basic concepts, practices, and benefits of Business Intelligence or BI. This instructional presentation consists of four modules, each of which requires three to five minutes to view. You may step through the modules in order, or view sections independently by clicking on the tabs along the top of the screen The control buttons along the bottom of this screen allow you to change slides and control the audio. You may also toggle the narration and full text on and off. Members of the BI community who would like to create their own customized presentations can download the BI PowerPoint template, logos and other materials you may find useful. Also, be sure to visit the BI main site, www.bi.umich.edu, for more information. There, in the BI Links & Research section, you will find all the resource materials mentioned in this presentation.
UPDATED 6/27/08 2/13 U-M Business Intelligence Module 1: What is BI? Definition The collecting, structuring, analyzing and leveraging of data to turn it into easy-to-understand information. Concepts and Methods Trend reporting Data mining Predictive analysis Alerts Data-driven decisions How It Happens Enterprise Resource Planning Systems (ERPS) like M-Pathways Data warehousing How It Happens Builds on the benefits of ERPS and data warehouses Identifies patterns and correlations Provides decision-makers with critical insights A Brief History of BI at U-M Advisors on Information Management Strategy (AIMS) Began September 2005 Academic and central office staff So what exactly is Business Intelligence? Business Intelligence is also known as academic analytics or institutional intelligence at U-M. Business Intelligence is a term that refers to the collecting, structuring, analyzing and leveraging of data to turn it into easy-to-understand information. The term dates back to a seminal October 1958 IBM Journal article by Hans Peter Luhn titled, A Business Intelligence System. In 1989, analyst Howard Dresner popularized BI as an umbrella term to describe a set of concepts and methods to improve business decision-making by using fact-based decision support systems. BI is a way of combining data in new ways to identify trends, reveal previously unseen problems or opportunities, predict outcomes, and provide alerts -- enabling leaders to make data-driven decisions in support of organizational strategies. Business intelligence is the art of sifting through large amounts of data, quickly extracting pertinent information, and turning that information into knowledge from which timely actions can be taken. So, how does this all happen? Enterprise Resource Planning Systems (ERPS), such as our M-Pathways system, are used to capture and store data and are considered the backbone of data processing for many organizations. M- Pathways contains thousands of tables with hundreds of elements and extremely complex data relationships. Data warehousing technologies help us organize, store, and analyze the data in a way that allows us to generate simple reports. Business intelligence builds on the benefits of ERPS and data warehouses by identifying patterns and correlations to provide decision-makers with critical insights. The Advisors on Information Management Strategy or AIMS, began work on a BI strategy recommendation in September 2004. AIMS included key staff from University central offices, schools and colleges, and Michigan Administrative Information Services or MAIS.
UPDATED 6/27/08 3/13 U-M Business Intelligence The U-M Strategy Strategy tailored to U-M Report: A Business Intelligence Strategy Proposal for the University of Michigan Key recommendations Four steps The U-M Strategy 1. Expose people to BI 2. Drive demand via increased awareness 3. Increase collaboration 4. Avoid redundant or disparate technologies Progress More than 100 BICE members and 250 SIG members Over 20 BI projects New MAIS BI division Enterprise BI products BI Maturity Model Testimonials Tim Slottow, Executive Vice President and Chief Financial Officer Business intelligence is not just technology. It is a powerful management approach that can deliver knowledge, improve the quality of decisions and drive a more effective use of resources. BI provides the means to work smarter and will ultimately shape the future of this University. The result was a strategy built on expert advice, but tailored to the actual experiences and needs of the University. This report, A Business Intelligence Strategy Proposal for the University of Michigan, made key recommendations and outlined four steps for the University to reach information maturity: 1. Expose people to BI by pursuing BI initiatives in units and business areas that are ready and willing. 2. Publicize the success and benefits of these projects to increase BI awareness in order to further drive demand for BI throughout campus. 3. Increase collaboration across campus and strengthen the relationship of the schools and the colleges with MAIS. 4. Ensure that U-M does not end up with a redundant or disparate portfolio of technologies. The BI initiative has made great progress to date. There are now more than 100 members in the Business Intelligence Community of Experts or BICE. The Business Intelligence Special Interest Group or SIG has over 250 members Many units have adopted BI positions in their organization and are producing BI projects, which can be put to use across campus. MAIS has organizationally aligned to support BI through its BI division and launched several enterprise BI tools. As more BI projects succeed, awareness and demand will grow, the culture will change, user information needs will become more aligned, and BI will provide the strategic insight that U-M s data assets can provide. Many top decision-makers at U-M recognize the importance of BI to the future success of the University and fully support its implementation.
UPDATED 6/27/08 4/13 U-M Business Intelligence Laura Patterson, Associate Vice President for Michigan Administrative Information Services The real power of BI is that we are able to leverage our investment in enterprise resource planning systems for people throughout the University to make data-driven decisions. The collaboration and structure of support for BI enables users to learn from each other and leverage the analytical, business process and methodology expertise that exists at the University. John King, Vice Provost for Academic Information The University has made substantial investments in enterprise-wide administrative systems in recent years. If these new systems merely replace earlier systems, the investments don t provide much payoff. The real power of the investments comes from people throughout the University being able to make decisions based on data rather than hunches. That s what business intelligence provides the means to work smarter. We have great opportunities, but insufficient resources to pursue all of them. We have to make the smartest choices, and that requires detailed information and the skills and discipline to make sense out of that information. I encourage the leadership of all of the University s units to participate in the business intelligence efforts underway. Rick Francis, Associate Dean for Budget, LSA The College of LSA uses the data analysis and graphical display capabilities of BI systems to analyze course enrollment patterns and trends, study classroom utilization efficiency, develop metrics for the college s performance budget model, and much more. The ready availability of this information in graphical formats has enabled better resource allocation in many areas of the college s operations. For example, near real-time display of course registration empowers staff and faculty to better serve students by tracking course waitlists and opening sections to meet enrollment demand. BI makes much of the work we do easier, and in many instances enables initiatives that we could not otherwise undertake.
UPDATED 6/27/08 5/13 U-M Business Intelligence Gus Evrard, Professor of Physics and Professor of Astronomy, LSA Although the business side of academia is essential, many faculty and staff tend to think of themselves as members of the academy first, then as employees of the University of Michigan. These people may prefer to think in terms of academic analytics (AA) rather business intelligence (BI). Regardless of label, the notion of AA/BI to me means fostering an atmosphere of greater transparency regarding functional aspects of the University s academic mission. Those empowered with appropriate knowledge will be more capable of orienting their local (classroom or unit-level) directions with broader institutional priorities. With extensive enterprise information systems already in place at Michigan, expressing the above notion means working harder to develop services that help us all do our jobs more effectively. Module 2: Who uses BI? BI and IT Research and analysis Online Analytical Processing (OLAP) reporting Better decision-making process Smarter management decisions Improved performance Increased efficiencies Potential Users of BI Deans and directors Mid- and senior-level managers Key administrators Analysts Staff supervisors Anyone involved with strategic direction and tactical decision making Current BI processes rely heavily on software and information technology to mine, analyze and report data. Modern BI software allows users to cross-analyze and perform deep data research rapidly for better analysis of organizational performance across many levels. Online Analytical Processing, or OLAP, reporting technologies allow managers and analysts to quickly compile reports for forecasting and analysis to support informed decision-making. However, it is important to remember that while IT is a key tool that enables BI, the true benefit of BI is realized in the decision-making and the alignment of business processes. The collection, storage and analysis of data are just steps in a process that ultimately should result in more impactful management decisions, improved performance and increased efficiencies. Therefore, the potential user group for BI goes well beyond those power users in the IT community to include deans and directors, mid- and senior-level managers, key administrators, analysts, staff supervisors Basically anyone involved with strategic direction and tactical decision-making will benefit from BI!
UPDATED 6/27/08 6/13 U-M Business Intelligence Approaches Strategic: Aligns processes with objectives through integrated performance management and analysis. Tactical: Optimizes processes by identifying what trends, anomalies and behaviors need management action. Key Performance Indicators (KPI) Yield rates Retention Voluntary staff turnover Business Process Areas Human resources Space utilization Budget and finance Time management Recruitment Alumni relations Fundraising and development Communications and marketing Government relations Admissions Aid disbursement Scheduling and enrollment Purchasing and procurement Grant writing and research funding Issues of Privacy and Security www.bi.umich.edu Module 3: How can BI help me? BI strives to eliminate guessing in an organizations decision-making process by leveraging the mountains of data that enterprises collect every day. At the strategic level, BI provides significant value by aligning multiple processes with strategic objectives through integrated performance management and analysis. At the tactical level, BI can help optimize processes by identifying what trends, anomalies and behaviors need management action. Business Intelligence often uses Key Performance Indicators, or KPIs, to assess current performance and to prescribe a course of action. KPIs measure business processes that directly impact an organization s strategic objectives. For example: the number of admitted students who enroll in a program or school; or the number of donors in a fundraising initiative. Retention rate is another KPI. With such broad utility, BI can provide benefits to virtually any business process area within the U-M community. One of the primary products of BI is to develop information about people employees, students, donors, faculty, alumni, patients, and many others. Therefore, data gathered as part of University business should be managed as an asset that is used appropriately and treated in accordance with U-M data security guidelines. To learn more about data privacy and security issues, visit the BI site.
UPDATED 6/27/08 7/13 U-M Business Intelligence Key Benefits Key Benefits Improve operational efficiency Eliminate reporting backlog and delays Find root causes of problems Identify opportunities to utilize resources and reduce costs Leverage your investment in your data warehouse Maximize the effectiveness of your communications Improve strategies with better analysis Empower your staff Make better decisions Provide quick answers to questions Challenge assumptions with factual information Negotiate better contracts with suppliers and vendors Tools, Applications, and Data Tools Business Objects ProClarity SPSS-SAS BI provides many benefits to organizations. For example, with BI you can: Improve operational efficiency Eliminate reporting backlog and delays Find root causes of problems Identify opportunities to utilize resources and reduce costs Leverage your investment in your data warehouse Maximize the effectiveness of your communications Improve strategies with better analysis Empower your staff Make better decisions Provide quick answers to questions Challenge assumptions with factual information Negotiate better contracts with suppliers and vendors To achieve these benefits, Business Intelligence uses various tools, applications and data warehousing technologies that aid in the analysis and presentation of information. The following examples are just a few of the many resources available to you and your staff. Business Objects is a query, reporting and analysis tool that allows users to access, present and analyze data stored in a data warehouse. ProClarity helps BI users identify trends, explore data, and pinpoint what is driving organizational performance. SPSS-SAS is an application that provides statistical analysis of data. It allows for in-depth data access and preparation, analytical reporting, graphics, and modeling. SPSS-SAS offers an array of tools that users can employ to uncover and analyze information.
UPDATED 6/27/08 8/13 U-M Business Intelligence Tools Crystal Xcelsius Arc-GIS Excel Crystal Xcelsius is customizable data visualization software that transforms Excel spreadsheets into insightful and engaging dashboards with a set of unique visual components. Arc-GIS is geographic information system software that can perform spatial analysis, manage large amounts of data with geographical elements (such as ZIP code, address, coordinates, etc.), or produce visually appealing maps to aid in decision-making. Excel is a spreadsheet program that allows one to enter numerical values or data into the rows and columns of a spreadsheet, and then use the entries for calculations, graphs, and statistical analysis. Applications HR Metrics M-Reports RealTime Financials Scholarship/Fellowship Matching HR Metrics is a web-based tool that assists in reviewing and analyzing human resources data. HR Metrics includes HR and financial measurements that facilitate strategic decisions involving human capital management and staffing trends. It is accessed via ProClarity, an OLAP tool. M-Reports is a web-based reporting environment that delivers management reports in a role-based, intuitive user interface. Built on Microsoft technology, the system uses the university s vast data resources to deliver preaggregated data to provide the most efficient information retrieval process. RealTime Financials integrates payroll, employee benefits, and financial aid expenses into a single system, enabling users to quickly understand the state of the business and focus their attention where it will have the greatest impact. Scholarship/fellowship matching combines student data with donor-specified criteria for scholarships for example, academic achievement, financial status, high school, athletic participation, etc. in minutes, proactively matching dollars to students and saving time for staff.
UPDATED 6/27/08 9/13 U-M Business Intelligence Data Data Warehouse Relational Models Dimensional Models/Star Schemas OLAP Cubes Case Studies and Examples Reporting Psychology Department, LSA M-Reports/Internal Controls Zurich North America Evaluation & Forecasting Data Analysis Medical School Ben & Jerry s College of Engineering Pharmacy Services, University of Michigan Health System Volkswagen Finance A data warehouse is a central repository of data that provides the U-M community with integrated, up-to-date data from various administrative systems. Relational Models refers to data modeling based on multiple flat files for records, with dissimilar attribute structures, connected by a common key attribute. Relational models allow for flexibility, but often require full understanding of the data most commonly attributed to power users. Dimensional models or star schemas. This is a type of data modeling suited for data warehousing. Fact tables, which record measures, join to a larger number of independent dimensional tables, which record information on each dimension. Data is predetermined, making it accessible by casual users. OLAP cubes are created from dimensional models, these specially designed, multidimensional databases are optimized for reporting and analysis, allowing for instant data retrieval. But how does Business Intelligence play out in the real world? On this page, case studies and examples from both U-M and the business world show how the benefits of BI can be applied to challenges across many business models.
UPDATED 6/27/08 10/13 U-M Business Intelligence Psychology Department, LSA The Department of Psychology tracked and stored administrative data in multiple disparate systems (including M-Pathways) across many area administrative offices, which made it very difficult to generate accurate department-wide reports. In response, the department implemented the Psychology Department Information System (PDIS), a single, easyto-use, Web-based, operational BI solution that it now uses for course planning and scheduling, enrollment tracking and reporting, faculty performance reports, faculty HR administration, research financial information, and graduate student funding management. The course scheduling functionality alone has saved hundreds of hours of administrative time for the department. Listen to a presentation about this project. Medical School M-Dash, short for Michigan-Dashboard, pulls together a wide variety of data about the Medical School and turns it into easy-to-understand and useful charts, graphs and projections. The school uses the tool to evaluate numerous aspects of unit and school productivity, which helps to forecast future needs, such as when a new research building may be required. M-Dash received national attention in Academic Medicine and Business Week and locally in the Ann Arbor Business Review. Download a PowerPoint presentation about this project. College of Engineering The College of Engineering created a tool for scholarship matching that combines enterprise and local engineering data to match student qualifications for scholarships with donor stipulations, automating the matching of more than 600 scholarships. Previously, it often took several days for this to be accomplished. The tool also allows administrative staff to run potential scholarship matches for all students at once, saving time and reducing the need for reshuffling matches later. Many of the Engineering features were incorporated into a new M-Pathways application that has been implemented by several units on campus. View screenshots of the scholarship match interface and a sample report.
UPDATED 6/27/08 11/13 U-M Business Intelligence Pharmacy Services, University of Michigan Health System Pharmacy Services became eligible for a federal program called the 340B Program, which allows institutions that provide for a disproportionate share of the indigent or poor patients to purchase drugs at a significant savings. However, complex government rules made it too difficult to take full advantage of the program. The group developed a BI solution that examines overall drug usage, identifies the percentage eligible for discount, and then interacts with the wholesaler to determine the appropriate pricing. Pharmacy Services has saved over $10 million a year using the system, which also manages virtual inventory and coordinates drug purchases. M-Reports M-Reports is an online reporting environment that transparently provides data from multiple sources, guides analysis on those data areas, and requires no user training. The tool s drill-to-detail functionality eliminates the need to run subsequent reports in order to examine details for anomalies and outliers. M- Reports was one of the first projects on campus to use Microsoft.NET technology and the Microsoft Business Intelligence toolset to create a dimensional model of data that allows for instant information retrieval a vast improvement from the time it used to take to run a single report. Ben & Jerry s BI allows the U.S. ice cream maker to track, understand and manage information on the thousands of consumer responses it receives on its products and promotional activities. Through daily customer feedback analysis, Ben & Jerry s is able to identify trends and modify its marketing campaigns and products to suit consumer demand. Zurich North America Zurich, a $6.2 billion insurance and risk management corporation, used BI to deploy an extranet that gave customers direct online access to their information. The company estimates it has saved up to $400,000 per year in printing and shipping costs because it no longer needs to send out paper reports. The total three-year ROI for their BI deployment was 249 percent.
UPDATED 6/27/08 12/13 U-M Business Intelligence Volkswagen Finance Based on their socio-economic profiles, Volkswagen thought the customers of a particular Audi vehicle model would want long lease terms and fairly large upfront payments. Instead, BI analysis revealed that the Audi customers actually wanted shorter leases and to finance a large part of the purchase. Based on that insight, the company introduced a new lease program, which saw immediate success and resulted in over $2 million in new revenue. User Testimonials <VIDEOS> Module 4: Where do I start? www.bi.umich.edu Next Steps Next Steps Get Involved with BICE or the BI SIG Join TDWI (www.tdwi.org) Visit Gartner research (www.gartner.com) Go to Educause (www.educause.edu/ecar) Use U-M s MyLINC site (https://maislinc.umich.edu) Watch webinars and demos Using Metrics and Dashboards to Continuously Improve Business Performance Your BI to do List for 2008: Lessons Learned from 2007 NCAA Financial Dashboard demo It s not just executive level staff at U-M who can benefit from BI. Learn what managers and administrators involved with U-M s BI initiative have to say about how BI has helped them. In this section, we ll give you some specific, actionable next steps that will help you learn more about BI and get your own BI initiatives off to a strong start. Remember, all the following resources plus many more can be accessed on the BI site: www.bi.umich.edu First step: get involved! Get connected to the campus BI network by attending BI events or by becoming a member of the Business Intelligence Community of Experts or the Business Intelligence Special Interest Group. Join TDWI. The Data Warehousing Institute offers a wealth of BI information, as well as a BI Assessment Survey, which can evaluate you, or your organization s, readiness to embrace BI. Registration is free to U-M staff. You can access research from Gartner Consulting through the U-M library system with your uniqname and Kerberos password. Gartner provides fact-based consulting services to help clients use and manage IT to enable business performance. The Educause Center for Applied Research publishes studies on academic analytics and the uses of management information and technology in higher education. Learn all about data management and BI tools with U- M s My Learning and Information Center or MyLINC classes. MyLINC provides training, documentation and communications for Business Objects, M-Pathways, employ and the U-M Data Warehouse. Watch webinars and demos. Those listed on the BI website give a good overview of BI, challenges people should be aware of, and a preview of the most visible pieces of BI -- for example, dashboards and scorecards.
UPDATED 6/27/08 13/13 U-M Business Intelligence Resources BI assessment tool BI planning Get expert help Thank You! Download the full text of this presentation. [PDF] The following tools and resources are available to help you start your BI project: A BI assessment tool from TDWI's Business Intelligence Program Management course. You can also find advice and guidelines at TDWI on putting together a BI plan. Finally, there are numerous BI subject matter experts right here at U-M who you can contact for advice on your project. Thank you for viewing this presentation. We hope you found it informative and look forward to your participation in the U-M BI community. You may download the full text of this presentation for reference by using the link indicated here.