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Copyright © 2006, SAS Institute Inc. All rights reserved. Peter Randall George Mackinnon State of Washington.

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Presentation on theme: "Copyright © 2006, SAS Institute Inc. All rights reserved. Peter Randall George Mackinnon State of Washington."— Presentation transcript:

1 Copyright © 2006, SAS Institute Inc. All rights reserved. Peter Randall George Mackinnon State of Washington Information Processing Management Association (IPMA) Forum 2008 – 5/20/08 Session D1 “Demystifying Business Intelligence”

2 Copyright © 2006, SAS Institute Inc. All rights reserved. Note: The content of this presentation is not an official SAS position on BI but a generic overview of various BI topics as requested by the IPMA organizing committee. The views expressed in this presentation are those of the presenter and are not an official SAS position on BI or related industry topics. The presentation adopts a non vendor specific approach.

3 Copyright © 2006, SAS Institute Inc. All rights reserved. AGENDA  Defining BI  The Information Evolution model  The “BI Pyramid”

4 Copyright © 2006, SAS Institute Inc. All rights reserved. Defining BI….  Burning Index (BI) - A relative number related to the contribution fire behavior makes to the amount of effort needed to contain a fire within a given fuel type.  Bi - Latin prefix meaning two;  Bibliographic Instruction: sessions during which librarians acquaint users with the resources and services available to them in the Library. Risk and classification assessments, and much more  BI - BI is Bravo India. When operators were instructed to"go BI", they would bring up the next keyset for a specific crypto device.

5 Copyright © 2006, SAS Institute Inc. All rights reserved. Which organization coined the term “Business Intelligence”? IBM SAS Gartner Cognos Microsoft How long ago was this term first used / documented?  10 – 20 – 30 – 40 – 50 years?

6 Copyright © 2006, SAS Institute Inc. All rights reserved. IBM Journal article by Hans Peter Luhn titled “A Business Intelligence System” October 1958 ( 50 years ago !!! )Hans Peter Luhn

7 Copyright © 2006, SAS Institute Inc. All rights reserved. “ The process organizations go through to gather, store and analyze data.” Business Intelligence is getting the right information to the right people at the right time to support improved decision making at all levels. Every BI software vendor trying to push the definition that best fits its strategy. Some BI Definitions

8 Copyright © 2006, SAS Institute Inc. All rights reserved. Five Levels of Evolution Level 5: Innovate - Proactive capabilities Level 4: Optimize - Operational efficiency Level 3: Integrate – State wide view Level 2: Consolidate - Departmental silos Level 1: Operate - Individual focus Information Evolution Model

9 Copyright © 2006, SAS Institute Inc. All rights reserved. Evolution and decision making…. Easy Difficult Value Time Degree of Difficulty Tactical Strategic Periodic Infrequent Operational Frequent

10 Copyright © 2006, SAS Institute Inc. All rights reserved. Evolution of BI

11 Copyright © 2006, SAS Institute Inc. All rights reserved. Tactical Operational Infrequent Periodic Frequent Strategic Evolution of BI

12 Copyright © 2006, SAS Institute Inc. All rights reserved. People and Process Improve through a BI Competency Center Performance Management BI platform needs to have tools that are consistent, collaborative and connected to overall strategy. BI Platform Information Management Must also cater for unstructured data, data integration and data quality Business Strategy BI projects must be aligned and linked to overall business objectives. Key performance indicators (KPIs) or other metrics

13 Copyright © 2006, SAS Institute Inc. All rights reserved. Information Management Data Quality

14 Copyright © 2006, SAS Institute Inc. All rights reserved. Tips on Information Management  Do not forget data quality  Focus on the business needs  Reuse metadata where possible  Do not forget about unstructured data  Communicate through the use of diagrams; everyone loves visuals.  Document current state, document desired future state and show the steps to get there over time.

15 Copyright © 2006, SAS Institute Inc. All rights reserved. People and Process Improve through a BI Competency Center Performance Management BI platform needs to have tools that are consistent, collaborative and connected to overall strategy. BI Platform Information Management Must also cater for unstructured data, data integration and data quality Business Strategy BI projects must be aligned and linked to overall business objectives. Key performance indicators (KPIs) or other metrics

16 Copyright © 2006, SAS Institute Inc. All rights reserved. ERPCRMFinanceHR External Systems ExecutivesLine of Business Managers Business Analyst / Modeler Legal/ Finance Power User Customers / Partners Data WarehouseData MartsOLAP Data Advent of the BI Platform IT / Developers Common Metadata

17 Copyright © 2006, SAS Institute Inc. All rights reserved. Oracle ERP DB2 MS Access 3 rd Party Warehouses Data Marts Data Stores Extracts M E T A D A T A Data Integration Business Intelligence and Predictive Analytics Output Data Single metadata layer….

18 Copyright © 2006, SAS Institute Inc. All rights reserved. Importance of a single metadata layer  Saves staff time searching for datasets  Saves staff time searching for information about data  Personnel turnover does not invalidate data  Saves time by preventing duplication of data collection efforts within agencies  Proper metadata enables submission to a clearinghouse node  Impact analysis on existing reports and procedures

19 Copyright © 2006, SAS Institute Inc. All rights reserved. Single BI platform… Data ETL & Data Access Intermed Storage Business Intellig. Predictive Analytics Knowledge = Insight B    A collection of tools approach…

20 Copyright © 2006, SAS Institute Inc. All rights reserved. Intelligence Platform

21 Copyright © 2006, SAS Institute Inc. All rights reserved.

22 People and Process Improve through a BI Competency Center Performance Management BI platform needs to have tools that are consistent, collaborative and connected to overall strategy. BI Platform Information Management Must also cater for unstructured data, data integration and data quality Business Strategy BI projects must be aligned and linked to overall business objectives. Key performance indicators (KPIs) or other metrics

23 Copyright © 2006, SAS Institute Inc. All rights reserved. Data Analyst Understands the complexities of the data, understands join structures, can manipulate data. Power User Builds reports and provides Information. (does not need or understand the complexities of the database structure) Ad Hoc Reporting User Information Consumer General “one click” Users – can open a Report, Execute a Report with filters Administrator Administers Users, Security, and the BI environment and managed access to data. Understands complex data manipulation, processes, flows and integration.

24 Copyright © 2006, SAS Institute Inc. All rights reserved. The Process… SOFTWARE TOOLS DATA OUTPUT

25 Copyright © 2006, SAS Institute Inc. All rights reserved.Copyright © 2004, SAS Institute Inc. All rights reserved. What does the BICC do?  Define requirements to support the organization’s strategy of structuring and using information  Create best practices for interpreting and using information  Support the execution of a an organization-wide BI strategy  Ensure that BI is integrated into relevant business processes of the organization  Plan and prioritize BI initiatives BI Competency Center

26 Copyright © 2006, SAS Institute Inc. All rights reserved. What is a BI Competency Center? a formal organizational structure / team sponsored by executive management representatives from business & IT well defined roles, responsibilities and processes implements the BI strategy responsible for BI standards and procedures

27 Copyright © 2006, SAS Institute Inc. All rights reserved. Enterprise BI Strategy Promotion Of BI within the enterprise Governance & Policies Alignment with Strategic Goals Technology Requirements & Standards Data Quality Standards BI Competency Center Functions

28 Copyright © 2006, SAS Institute Inc. All rights reserved. Functions of the BI Competency Center  BI Program – define and monitor implementation of the BI strategy, be responsible for consistent BI deployment, standards, technology assessments, knowledge management, best practices, domain expertise  Data Stewardship – metadata management, data standards, data quality, data architecture  Support – dealing with technical and business – related user questions  BI Delivery – front-end development, reporting, business logic application, user applications testing and maintenance  Data Acquisition – data integration and data store development, testing and maintenance  Predictive Analytics – data mining, statistical modeling, optimization, text mining, forecasting  Training – training business users and project teams  Vendor contracts management – user licenses administration, updates and project teams

29 Copyright © 2006, SAS Institute Inc. All rights reserved. People and Process Improve through a BI Competency Center Performance Management BI platform needs to have tools that are consistent, collaborative and connected to overall strategy. BI Platform Information Management Must also cater for unstructured data, data integration and data quality Business Strategy BI projects must be aligned and linked to overall business objectives. Key performance indicators (KPIs) or other metrics fed by the BI platform

30 Copyright © 2006, SAS Institute Inc. All rights reserved. Application / Business / Operational Performance Management  availability of software applications.  help businesses discover efficient use of resources.  ways to improve business results, across organizations. Balanced Scorecards  primarily a tool to help strategy implementation. Predictive Performance Management  predict potential outcomes with a high degree of confidence. Performance Management

31 Copyright © 2006, SAS Institute Inc. All rights reserved. data store / / data mart BI and Performance Management

32 Copyright © 2006, SAS Institute Inc. All rights reserved. Performance Management Do’s and Don'ts  Do focus on alignment with goals  Do leverage BI to assess progress  Do address cultural issues  Don’t ignore the importance of Executive level sponsorships  Don’t leave anyone out  Don’t rush into measurement

33 Copyright © 2006, SAS Institute Inc. All rights reserved. People and Process Improve through a BI Competency Center Performance Management BI platform needs to have tools that are consistent, collaborative and connected to overall strategy. BI Platform Information Management Must also cater for unstructured data, data integration and data quality Business Strategy BI projects must be aligned and linked to overall business objectives. Key performance indicators (KPIs) or other metrics fed by the BI platform

34 Copyright © 2006, SAS Institute Inc. All rights reserved. Volume 1 – Winter 2007

35 Copyright © 2006, SAS Institute Inc. All rights reserved.

36  Work towards a single BI platform  Plan to use predictive analytics to move you up the value chain  Start small, but have a longer term goal  Implement a virtual BI Competency Center  Always adopt a project approach Some final recommendations…

37 Copyright © 2006, SAS Institute Inc. All rights reserved. Thanks for your time.


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