2009-11-12 November 2009 Business Intelligence

PMI - Sacramento Valley Chapter's I-80 Breakfast Roundtable Meeting – November 12, 2009 at 8:00 AM
Business Intelligence – A Methodology for Strategic Planning and Execution
Dan Beebe

Here is an outline of the Business Intelligence topics that were presented:

Introduction

Business Intelligence
Rules that govern your decision making – How you run the business to make it profitable
Help understand these questions:

Scorecard as the Strategy
What do you call success?
Number of calls, delays in shipping
Provide positive impact to bottom line
Understand organization objectives
How do you measure it?
Why do you measure it?
Are you measuring the elements that play into daily decision making?
Let the scorecard drive the navigation towards making better decisions
Dashboard subset of BI
Defined methodology for improving business performance
Overall health of the organization

Challenge is that we want to make better decisions
Many competing data sources, metrics, people, goals, objectives and processes
That directly affect critical business decision making
The results in multiple “versions of the truth” and the inability to measure the
Success and progress of the organization along common lines or to align to
Corporate objectives.

Whatever you believe, or I can make you believe, conceptually based

The right date, to the right people at the right time
- Scorecards for performance management
- Ad-hoc and structured reporting for consumption
- Analysis and exploration to find aberrations and trends
- Throughout the organization, on time, relevant
- Not just ‘database’ date – documents, lists, too
A predigested, cohesive set of integrated tools processes and views to support better decision
Making – value based decision train

Other terms you might hear in this space
Data Warehousing
Decision Support Systems
Data Mining
Online Analytical Processing
Forecasting
Predictive Analytics
Artificial Intelligence
Digital Dashboards
Reporting Systems
Statistical Analysis
Business Process Eng

BI – Technical piece, business analysis (Processed driving organization), aggregating dating

Structure methodology for implementing BI

Run into some managers who are threatened by the implementation of BI
Way they make decisions are dissected
Afraid they will no longer be needed

The Strategy Focused Organization
A Strategic Management System
Financial – lagging indicators – end of the cycle, too late to change
Citizens/Constituents/Customers
Internal Business
Innovation and Learning

Guiding Concepts
· Fosh – Financial, Customer, Internal Learning and Growth, more+, Govt
· Linking measures to your Corporate Strategic Objective
· Achieving

Strategy Map
Diagram showing the organization’s strategy
Shows cause-and-effect relationships between objectives and KPIs
Links perspectives through processes

Determining Key Performance Indicators
Strategic Initiative à Performance Driver (Lead Indicator) à Strategic Outcome Measure
(Lag Indicator)
Sales Process à Supply Chain à Customer Service

Reading Material: The Balanced Scorecard by Robert S. Kaplan and David P Norton

Implementing the Scorecard

Properties of Key Performance Indicators
- A mix of lead and lag indicators
o Lag – Typically standard measures across verticals and industries
§ (think reactive)
o Lead – Usually unique to business units (think proactive)
- Measures are explicitly and proactively managed and validated

Business Intelligence Effort Implementation
· Start at a manageable level of a single objective or goal
· Define success factors and work backward
· Create strategy map and pain chain
· Choose team
o Required competencies to affect change? What currently exists? How large is gap?
o Execs, architects, consultants, contributors, those who are affected by change, those who need to react to changes
· Understand and agree on processes
· Understand key performance indicators and metrics that fall out of processes
· Gather organizational data and develop technical architecture
· Get organizational buy-in

Technical Components of BI Solution
· Strategic Scorecards
· Standardized Reports
· Cohesive Platform

Post Implementation
· Help the team ‘work’ the results
· Continue to evaluate and refine best practices
· Revisit Scorecard goals and targets
· Provide mechanism for feedback

The Balanced Scoreboard Demo – Ataira Healthcare Performance Improvement Program

Facility Scorecard – for Physicians
Look at metrics between peers

Calculations for goals need to be decide by upper management
Against actual