Business Intelligence Manifest - Challenging Perfect Management Reporting

Challenging Perfect
Management Reporting
Visionary Strategic & Tactical Profit Decisions
by Bozidar Kralj
It is about how to set up Company Information System to gain
new profit streams.
Competitive Intelligence is within company. But, there is no

platform to allow internal fine tuning of profit contributions.
Business Intelligence Manifest | Providing Genuine Advantage | Bozidar Kralj | 2010-11-30 | Page 2
Main
Problems
Problems
?
?
What is profit contribution per organizational
units, products, services, projects?
New Management Reports hard to get ?
Can not trust own data ?
?
?
Already implemented Business Management Information

Systems but still not making solid Competitive Advantage ?
Introduction
types of problems and solving levels
Problems can be grouped on: structured, non structured and partially structured. Structured
problems are repeated, routine problems and decisions are same (repeated and routine).
Structured problems are common on lowest (operative) level of management. Partly structured
problems are not routine and is not known how to solve problems and what are the steps.
This level of problem solving needs experience and management „feeling“.
Unstructured problems are complex problems. For those problems there are no obvious and
routine solutions and manager and his knowledge has major roles. Problems mostly appear
for the first time. Unstructured problems are solved with unprogrammed decisions: no
known procedures, situations are new, each case is independent and needs individual
approach.
Structured, routine problems solve operative management levels while unstructured problems
solve highest, strategic levels of management.
Introduction
types of problems and solving levels 2
Top management levels

Non structured Unprogrammed
problems decisions
Structured Programmed
problems decisions
Lowest management levels
What is problem more complex, higher level of management will solve it.
Same as problem solving types is usage of business intelligence BI tools. BI tools extract data from production
systems for operative work, for tactical decisions and for strategic decisions.
Data, Information, Knowledge, Wisdom
m
sd o
Figure (left, above) shows process of how data is
Wi
converted into information, information into
Port knowledge and knowledge into wisdom. This is
ge
led
al how it should be.
ow
Problem is that big companies do not have only
Kn
one business intelligence solution but more
DWH
than one. So if there are more BI solutions,
ta
Da
information and knowledge generating looks like

n
many cones (left, below). Cones/pyramids

tio
ma
Production provide knowledge to management structures,

or
Inf
separately.
Complex systems in big companies can not have

only one BI solution. Many solutions exist since
technical boundaries do not allow creation of
one super cone with drill down capabilities
through company data.
Each Data Mart can be considered as one

information island, consolidated and integrated.
So, how does report for top management look like? Just imagine white paper on top of cones. Top
management reporting just gathers aggregated data from many Business Intelligence tools, portals,
dashboards, scorecards and similar. Below the cones are data-marts.
Paper copy, report,

dashboard
Look from the top on the cones and white

paper, data look like on the figure below. This
data are
highly aggregated from data mart's. Data
marts are stand alone logical business
models, important is to highlight data within
data marts should be highly integrated and
usually are.
Highly integrated peaks of cones represent

Key Performance Indicators (KPIs).
Reporting details
So looking from above data islands
perspective would look like spots on plane.
Plane can be hard copy of company official
report or corporate dashboard.
Financial Financial Let's give names to spots on plane. Each

Products
statements ratios spot can contain from several KPI's up to
several hundred KPIs.
Customer
Customers Satisfaction
And how does more detailed report look

like, report with more KPI's would look like
this. It is only more stuffed report (from the
point of cone it is something like this)
It only means more data from

pyramid/cone.
Data, Information, Knowledge, Wisdom
Looking once again from front view on data, pyramid delivers data on
requested level of detail. Information quantitiy is equal to less or more data
provided (size of circles from previous figures)
Aggregated report
Detailed report with hundreds of KPIs
All depends on wanted the level of details and raising or lowering analysis details (blue arrows).
Connecting different data islands
Next step,
how can strategic decision maker see
connection between balance sheet and
customer satisfaction? It is part of
nonprogrammed knowledge.
Or how can EVA from financial ratios be

connected with residential customer
segmentation? Figure (left) shows data
connection between EVA and residential
customer segmentation trends.
Is this easy to achieve?
Connecting different data islands - Example
Executives wants to see impact of scheduled marketing campaigns with new products on
residential market. Steps are following.
1. Task is delegated to reporting department and marketing product development departments to make
targeted business case and to create custom report.
2. Reporting, controlling or product development will try to make it form current Business Intelligence
solutions but most probably will not make it. They will address IT to prepare report.
3. IT will analyze DWH and will found out that all necessary data is in DWH, data from CRM, Product
management and ERP but it is not mapped. IT will also found out data contains many to many
relations…. In other words not easy to make connection.
4. If connection through several production systems is not possible project and CAPEX is needed.
5. Other projects, process changes, reorganization or application updates that might slow down project
(have not been concerned here) can happen during the project implementation. Agreement who will
maintain mapping codes is also achieved.
6. Finally after several years project is finished.
7. Reporting gets new tool and finally can effectively report according to requested functionality.
Multi dimensional management view
Strategic and Tactical management decisions are based upon many additional data, additions
that include cross referential data from different business intelligence solutions.
For example, business cases need data from different data marts/business intelligence. For
better understanding business cases (projects) are presented with different irregular shapes
(blue and purple) and business intelligence as circles (looking cones from above).
Business Case #1
Business Case #2
Regular strategic and tactical decisions deal with hundreds of business cases.
Is there an issue with information and knowledge flow? Definitely.
It is not easy to connect data from separated data islands, data-marts. There is no direct and obvious
connection how customer segmentation changes affect EVA at the start! There is NO FAST CONNECTIVITY!
After some time (usually 2-3 years) management gets solid reporting functionality for only one task.

After getting static knowledge in form of static presentation of company performance
(cones and KPI’s on plane) strategic decion makers want to see dynamic knowledge.
If decision is made, action followed, results need to be measurable. Decision has to be

possible to be measured through complete company (not separated islands). Decision has
to be possible to make as many times as wanted in many variations and in bundle with
other actions (not as isolated action like in laboratory, because company is not living in
laboratory)
This is DYNAMIC KNOWLEDGE.
Does planning process solves this problem? No! It is in right direction but it is very rigid
and slow. Planning is done separately in independent processes and units. Knowledge
stays there. Decision makers receive only bread crumbs. And speed is essential. Can not
wait one year for next planning round and forecasts and follow ups every few months.
Dashboards are also static. Do not create dynamic knowledge.

And decision makers do not need static picture on TV, but movie!
Current Business Intelligence concept suffers
from crucial problem,
lack of complete INTEGRATION.

Perfect
Each decision is similar to waterdrop on

water surface. Results are spreading radial.
Apply waterdrop effects on management
reports (dashboards) and will cause many
radial results (figure below). Dynamic
knowledge acts like fluid.
If actions are made and there are

many effects on surface is it
possible to measure impact of
many different decisions in point
D?
D
Can you measure your decisions?
• Managements wants to know is how effectively to measure

actions.
• If decision and following action happens in company it is
similar to raindrop and radial circles around water drop.
Waves are influencing other KPI’s in dashboard or official
report.
• Influence of one decision/action is not easy to calculate on
other KPI’s
• Impact of many decisions, raindrops was impossible to
measure until now.
THE Solution
It is possible to measure all actions if all data island peaks are connected
with platform that provides integration on level of KPI’s (red dashed lines).
Solution is one platform that connections between peaks and that

provides for peaks to act as one, like simulator for all actions on integrated
level. Model blueprint of solution is Total Controlling Concept.
Total Controlling Concept
Total Controlling Concept (TCC) allows connectivity on top level of reporting
platforms. Allows to see quantified impact of change or changes on other
top performance indicators (pyramid peaks).
TCC makes all business intelligence solutions to act as one. They are totally
integrated.
Connecting peaks does not take years but hours or days.
What’s In It For Me
Call for action
Total Controlling Concept is the future standard.
There is no other more profit oriented business

intelligence and management reporting blueprint. Nor
now nor in near future.
Can you afford to be follower or gone be proactive?
Find introduction of TCC here

http://www.business-intelligence-secrets.com/free-download
Do you know how to cross chasm?
I do!
It is Total Controlling Concept for Perfect Management Reporting!
Because, I look on problem totally differently then others.
Differently does not mean necessarily it is good, BUT…
I've seen it, adopted initial

model, developed idea,
worked on prototype.
Prototype worked.
That is why I'm totally

confident TCC crosses
chasm.
What’s In It For Me
With blueprint you’ll learn how to integrate all
relevant data into one mega reporting-simulating
solution. Use the knowledge to negotiate best for
you with current solution provides.
With TCC implementation

you’ll be capable to find
hidden influences between
KPI’s and official reports =
EARN MORE PROFIT FROM
EXISTING BUSINESS
Contact:
bozidar.kralj2@gmail.com
http://www.business-intelligence-secrets.com

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Challenging Perfect

Competitive Intelligence is within company. But, there is no

Already implemented Business Management Information

Top management levels

information and knowledge generating looks like

many cones (left, below). Cones/pyramids

Production provide knowledge to management structures,

Complex systems in big companies can not have

Each Data Mart can be considered as one

Paper copy, report,

Look from the top on the cones and white

Highly integrated peaks of cones represent

Financial Financial Let's give names to spots on plane. Each

And how does more detailed report look

It only means more data from

Or how can EVA from financial ratios be

Is this easy to achieve?

If decision is made, action followed, results need to be measurable. Decision has to be

This is DYNAMIC KNOWLEDGE.

Dashboards are also static. Do not create dynamic knowledge.

lack of complete INTEGRATION.

Each decision is similar to waterdrop on

If actions are made and there are

• Managements wants to know is how effectively to measure

Solution is one platform that connections between peaks and that

Total Controlling Concept is the future standard.

There is no other more profit oriented business

Can you afford to be follower or gone be proactive?

Find introduction of TCC here

Because, I look on problem totally differently then others.

Differently does not mean necessarily it is good, BUT…

I've seen it, adopted initial

That is why I'm totally

With TCC implementation

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