Charting the Path to Real Business Intelligence

How to Achieve Information Impact

Watch your step

What is Business Intelligence (BI)?

Leveraging information assets within key business processes to achieve improved business performance

For the private sector, efforts are generally focused on increasing Profit and realizing a positive Return on Investment (ROI)

Examples of real BI
U.S. airline company near bankruptcy in the 1990s $30 million investment in BI to: Improve business processes Improve customer service In six years reaped $500 million return on investment ROI of over 1,000 percent!

Examples of real BI (cont.)

Manufacturer of computer hard disk drives Annual sales of over $3 billion Uses BI to better manage: Inventory Supply Chains Product Lifecycles Customer Relationships. Reduced operating costs by 50 percent

Examples of real BI (cont.)

Major retailer of computer equipment and software Uses BI to analyze its sales trends ROI of over $6 million in the first phase of the project

So Why Do Some Have a Head Start?

The Problem
The definition of BI is not understood Even if the organization gets it
the definition

It doesnt know how to get it

leverage information to realize improved business performance

Organizations resist the change needed to achieve the business reward

BI Maturity - Changing Information Usage

Greater Value Creatio n

Information Fully Integrated into Business Building and Using Information Assets

Stage 3 Changed Information Usage Paradigms Across Enterprise to Leverage BI

Stage 2 Changed Information Usage Paradigms in One or More Functions to Leverage BI

Business Value Creation

Stage 1 No Change to Information Usage Paradigms Stage 0 No DW / BI Experience

Improved / Focused / Custom Reporting

Status Quo BI Maturity

Greater Maturity

BI Maturity and ROI

Greater Value Creatio n

Enterprise Gains Departmental Gains

Stage 3 Highest ROI Optimize information usage at enterprise level

Stage 2 High ROI Potential Optimize information usage at business level

Business Value Creation

Stage 1 Limited ROI Improve user access to same information Stage 0 Status Quo Inadequate information access

Individual Gains

No Gain
BI Maturity
Greater Maturity

Following the Evolution

Stage 0 - Status Quo Inadequate Information Access Characteristics:

Usually IT-driven initiative Little, if any, common understanding of business purpose Emphasis is on faster/better data access Focus is on What data will be delivered

Is your organization stuck here?

Stage 1 Limited ROI Improved User Access to Same Information

The Definition of BI is not Understood

Po c oie te ao n imr v ga c s t in r aio r je ts r n d r u d po in c e s o fomt n

whu it o t :

d rs n in lin a e toimro e b s e sre u u e ta d g k g s n Reports p v d u in s s lts Ad Hoc Queries Data Scorecards Dashboards KPIS Integrated Customer Data

BI

Common Risks

Stage 1 - No Change to Information Usage Paradigms

Architecture and Performance problems Scope creep
projects that never get done

Becomes increasingly hard to justify funding

ROI?

Business users dissatisfied

Low usage of BI applications

Common Obstacles Getting to Lacking Business Leadership Stage 2

Organizational Expectations are not Aligned Dont know how to Get BI Requirements Organizational Bandwidth issues Organizational Resistance to Change

Stage 1 - No Change to Information Usage Paradigms

Evolving From Stage 1 to Stage 2 Improving your BI Maturity

Use Business-focused requirements approach to develop BI opportunities Educate and Inspire: Find business champion to market BI potential Find business pain point that can be addressed with new information/process Find competitor information on how BI is being used Prototype the possibilities

Stage 2 Changed Information Usage Paradigms in One or More Functions to Leverage BI

Stage 1 No Change to Information Usage Paradigms

Stage 2- High ROI potential New ways to use information introduced

Characteristics: Usually led by business champion Departmental project orientation New opportunities to use information are identified to meet business goals Focus on What and Why Beginnings of Who, When, Where
changes in business processes

Or, is your organization here?

Stage 2- High ROI Potential New ways to use information introduced

Common Risks
BI success associated with key individual(s) rather than organization Leadership void if key individual leaves Still project level- limited program view Stove-piping across organization Success in one area not repeatable in other business areas

Stage 2- High ROI potential New ways to use information introduced

Common Obstacles Getting to Stage 3

Lacking Business Leadership to Broaden Organizational BI efforts Personalities and Politics Organizational Expectations are not Aligned Organizational Bandwidth issues Organizational Resistance to Change Enterprise Level Financial Investment

Evolving From Stage 2 to Stage 3 Build Upon Success Market potential expanded BI
opportunities to executives Demonstrate current BI capabilities Measure and communicate ROI Enterprise BI Steering Committee identifies highimpact BI opportunities Look for / promote / build interdepartment capabilities Use business pain resulting from the lack of information integration

Stage 3 Changed Information Usage Paradigms Across Enterprise to Leverage BI

Stage 2 Changed Information Usage Paradigms in One or More Functions to Leverage BI

Improving your BI Maturity

Stage 3- Achieving Enterprise BI

Characteristics:
Led by Executive Management Business Program Orientation Enterprise focus on opportunities to improve business performance by leveraging information assets Strategic alignment between BI initiatives and business priorities Focus on What, Why, Who, When, Where Demonstrated ROI associated with BI investments Continuous improvement cultureactive business process change

Or, is your organization here?

Are We There Yet?

Concluding Thoughts BI is About Changing Your Business to Leverage New Information Capabilities

Concluding Thoughts - Leveraging BI How Much Is Your Organization Willing To Greater Change? Value
Creatio n Stage 3 More Pain but Optimal Gain

Stage 2 Pain with Gain

Business Value Creation

Stage 0 No Pain No Gain

Stage 1 Some Pain with Some Gain

Difficultly Level

Greater Maturity

Thank You!
Nancy Williams, CBIP, is a vice president and principal consultant with DecisionPath Consulting and brings more than 20 years of business and technical experience to the firm. Nancy co-authored The BI Pathway Approach, a full lifecycle BI implementation methodology, has written numerous articles for leading BI and DW publications, and presents regularly at TDWI conferences. Her consulting experience includes requirements facilitation, business case development, program planning and logical data modeling for a wide range of clients in the commercial and government sectors.

Look for Nancy & Steve Williams newly published book: The Profit Impact of Business Intelligence

Nancy.Williams@DecisionPath.com