1. Copyright © Business Intelligence Assoc., LLC Business Intelligence Essentials

2. Copyright © Business Intelligence Assoc., LLC Session 1 Business Intelligence Overview

3. Copyright © Business Intelligence Assoc., LLC Reactive Corrective Adaptive Preventative What Happened? Can we live with it? How can we fix it? Event Management Proactive We are aware of this and have already taken steps to prevent it. How can we prevent this from happening again? Business Intelligence Managing Events Within the Enterprise  Management must remain on the cutting edge of information analysis or risk industry obsolescence.

4. Copyright © Business Intelligence Assoc., LLC Database Data WarehouseData Cubes External Data Metadata and Dimensional Modeling Enterprise ReportingDashboardsBusiness Analysis Data Layer Modeling Layer Consumer Layer Decision Support System  In order to be effective, Business Intelligence must facilitate decision making within the enterprise.

5. Copyright © Business Intelligence Assoc., LLC Problem Resolution vs. Elapsed Time  The ability to isolate and resolve problems is largely dependent on the freshness of information provided.

6. Copyright © Business Intelligence Assoc., LLC Enterprise Performance Management  Enterprise Performance Management processes enable the enterprise to define strategic goals and measure performance against goal.

7. Copyright © Business Intelligence Assoc., LLC Delivered Timely Consumer Friendly Solution Conscious Results Oriented Bottom Line Focused Event Driven Business Intelligence  Business Intelligence enables the decision maker to quickly determine the cause and effect of events within the enterprise.  In order to be effective, information must be:

8. Copyright © Business Intelligence Assoc., LLC Single Version of the Truth  In the typical enterprise, reports are created through a variety of sources from enterprise databases to spreadsheets.  Systems of this type have no built-in method of checks and balances.  This practice leads to multiple versions of the “truth”, leading to disputes and debates over whose numbers are correct.  Properly designed Business Intelligence systems use a common source of data for reporting and analysis where each participant has access to the same information.

9. Copyright © Business Intelligence Assoc., LLC  Collection of raw facts, figures, formulas and attributes about the enterprise.  Numbers, statistics and attributes that have been processed into a legible, coherent set of reports.  Information which has been distilled, analyzed and presented in a manner suitable for informed decision making. Data Information Intelligence Data vs. Information vs. Intelligence

10. Copyright © Business Intelligence Assoc., LLC Market Strategy Leadership Skills Quality Control Customer Care Productivity Profitability Mission Statement Critical Success Factors of the Enterprise  Critical Success Factors are those elements which are vital for the survival and success of the enterprise.

11. Copyright © Business Intelligence Assoc., LLC Improve quality by reducing returns, recalls and customer complaints Reduce ReturnsEliminate Recalls Minimize Complaints Strategic Initiative Key Performance Indicators % Returns% Recalls % Complaints Group Strategy How Do We Measure Success?  Key Performance Indicators measure critical success within the enterprise.

12. Copyright © Business Intelligence Assoc., LLC Green symbolizes areas of the enterprise which are at or above the target goals set for the measure. Yellow symbolizes marginal areas of the enterprise which should be investigated further and monitored more closely. Red symbolizes areas of the enterprise where performance is unacceptable. Modeled after the common traffic light, simple scorecards use colors as indicators of performance. On Target MarginalUnacceptable Scorecard Monitoring Highs and Lows of the Enterprise  In its simplest form the scorecard uses color to enable managers to determine how well the enterprise is performing by measuring actual performance against predetermined targets.

13. Copyright © Business Intelligence Assoc., LLC Financial Perspective Customer Perspective Innovation & Learning Perspective Internal Business Perspective How do we look to our shareholders? How do our customers see us? What must we excel at? Can we continue to improve and create value? Balanced Scorecards  Balanced scorecards measure performance from the perspective of the enterprise as a whole.

14. Copyright © Business Intelligence Assoc., LLC Vision Values Strategy Key organizational objectives Strategy Map Balanced Scorecard % Returns% Recalls % Complaints Mission Statement ObjectivesMeasurements Targets Initiatives Strategic Objective Balanced Scorecards  Balanced Scorecards translate corporate strategy into tangible measurements of actual numbers vs. target goals.

15. Copyright © Business Intelligence Assoc., LLC Economic Indicators Historical Sales Profit Margin Prior Year Production Raw Material Cost Seasonal Demand Monitoring Trends Within the Enterprise  Trend Analysis involves the collection and analysis of historical information to predict future outcomes.

16. Copyright © Business Intelligence Assoc., LLC F RAGILE Event Perspectives Within the Enterprise  What happened? We shipped a product  When did it happen? Last month  Where did it happen? San Francisco  Who was involved? The shipping group, the transport group, the receiving group  How effective were we? Did the shipment arrive on time? Was it the correct item? Was it damaged or defective? Was it what the customer ordered?

17. Copyright © Business Intelligence Assoc., LLC Weekly sales are down 8 % in Dallas Daily production is up 5% in Omaha Returns are 7% higher in Toronto 3% of shipments were more than 5 days late in Toledo last month Inventory is consistently below threshold levels in Calgary Customer satisfaction is 9% higher in Miami Defective products complaints were 3% higher last month Employee absence was 6% higher last quarter Why Is This Happening?  Business Intelligence enables the decision maker to discover why an event occurred. Copyright © Business Intelligence Assoc., LLC

18. Scenario: Due to labor issues, 10% of shipments may not reach the Central US this week, leading to an expected delivery shortfall of 5%. Action: Notify all Central US store managers of the situation. Action: Check inventory levels in each store in the region against projected sales to determine if temporary store-to-store transfers are feasible. Action: Check inventory levels at the nearest Canadian warehouse to determine if non-tariff inventory can be shipped to Central US stores. Action: Arrange alternative transportation until the issue is resolved. What Can We Do About It?  Advance knowledge of an event exponentially increases the chances of preventing a crisis.

19. Copyright © Business Intelligence Assoc., LLC Workshop  What is the difference between Business Intelligence and Enterprise Performance Management?  Name five types of event management.  Distinguish between data, information and intelligence.  Explain the difference between scorecards and balanced scorecards.  What are the five event perspectives within an enterprise?  What is the role of Business Intelligence in solving problems within the enterprise?

20. Copyright © Business Intelligence Assoc., LLC Business Intelligence Essentials  Thank you for viewing this sample seminar.  We hope it was an enjoyable and informative learning experience.  For all your training needs, please contact Business Intelligence Associates. Copyright © Business Intelligence Assoc., LLC