Business Intelligence Manifest - Challenging Perfect Management Reporting

8/8/2019 Business Intelligence Manifest - Challenging Perfect Management Reporting

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Visionary Strategic & Tactical Profit Decisions

by Bozidar Kralj


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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


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Problems can be grouped on: structured, non structured and partially structured. Structuredproblems are repeated, routine problems and decisions are same (repeated and routine).

Structured problems are common on lowest (operative) level of management. Partly structuredproblems 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 androutine solutions and manager and his knowledge has major roles. Problems mostly appearfor the first time. Unstructured problems are solved with unprogrammed decisions: noknown procedures, situations are new, each case is independent and needs individualapproach.

Structured, routine problems solve operative management levels while unstructured problems

solve highest, strategic levels of management.



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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.

Lowest management levels

Top management levelsNon structured

problems

Structured

problems

Unprogrammed

decisions

Programmed

decisions



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Figure (left, above) shows process of how data

is converted into information, information intoknowledge and knowledge into wisdom. This is

how it should be.

Problem is that big companies do not have only

one business intelligence solution but more

than one. So if there are more BI solutions,

information and knowledge generating looks

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

provide knowledge to management structures,

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.

Portal

DWH

Production



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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 BusinessIntelligence 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 withindata marts should be highly integrated and

usually are.

Highly integrated peaks of cones represent

Key Performance Indicators (KPIs).



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CustomersCustomer

Satisfaction

Financial

ratios

Financial

statements Products


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.

Let's give names to spots on plane. Each

spot can contain from several KPI's up toseveral hundred KPIs.

And how does more detailed report look

like, report with more KPI's would look likethis. It is only more stuffed report (from the

point of cone it is something like this)

It only means more data from

pyramid/cone.


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Aggregated report

Detailed report with hundreds of KPIs

All depends on wanted the level of details and raising or lowering analysis details (blue arrows).


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)


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Is this easy to achieve?


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.


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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 CONNECT IVITY!

After some time (usually 2-3 years) management gets solid reporting functionality for only one task.


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After getting static knowledge in form of static presentation of company performance

(cones and KPIs on plane) strategic decion makers want to see dynamic knowledge.

If decision is made, action followed, results need to be measurable. Decision has to bepossible to be measured through complete company (not separated islands). Decisionhas to be possible to make as many times as wanted in many variations and in bundlewith other actions (not as isolated action like in laboratory, because company is notliving in laboratory)

This is DYNAMIC KNOWLEDGE.

Does planning process solves this problem? No! It is in right direction but it is very rigidand slow. Planning is done separately in independent processes and units. Knowledgestays 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!



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D

If actions are made and there are

many effects on surface is it

possible to measure impact of

many different decisions in point

D?

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.


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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 KPIs in dashboard or official

report.

Influence of one decision/action is not easy to calculate on

other KPIs

Impact of many decisions, raindrops was impossible to

measure until now.



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It is possible to measure all actions if all data island peaks are connected

with platform that provides integration on level of KPIs (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.


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Total Controlling Concept is the future standard.

There is no other more profit oriented business

intelligence and management reportingblueprint. Nor now nor in near future.

Can you afford to be follower or gone be proactive?

Find introduction of TCC herehttp://www.business-intelligence-secrets.com/free-download



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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.


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With blueprint youll learn how to integrate allrelevant data into one mega reporting-simulating

solution. Use the knowledge to negotiate best for

you with current solution provides.


With TCC implementation

youll be capable to find

hidden influences betweenKPIs and official reports =

EARN MORE PROFIT FROM

EXISTING BUSINESS


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Contact:

[email protected]

http://www.business-intelligence-secrets.com


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Business Intelligence Manifest - Challenging Perfect Management Reporting