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

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

Peter Randall [email protected]

George [email protected]

State of WashingtonInformation Processing Management Association (IPMA)

Forum 2008 – 5/20/08

Session D1

“Demystifying Business Intelligence”


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.


AGENDA Defining BI

The Information Evolution model

The “BI Pyramid”


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.


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?


IBM Journal article by Hans Peter Luhn titled “A Business Intelligence System” October 1958 ( 50 years ago !!! )


“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


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


Evolution and decision making….

Easy

DifficultValue

Time

Degree of Difficulty

Tactical

Strategic

Periodic

Infrequent

Operational

Frequent


Evolution of BI


Tactical

Operational

Infrequent

Periodic

Frequent

Strategic

Evolution of BI


People and

ProcessImprove 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 StrategyBI projects must be aligned and

linked to overall business objectives.

Key performance indicators (KPIs) or other metrics


Information Management

Data Quality


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.


People and


Performance

Management



Information

Management







ERP CRM Finance HRExternalSystems

Executives Line of BusinessManagers

Business Analyst /Modeler

Legal/Finance

PowerUser

Customers /Partners

Data Warehouse Data Marts OLAP Data

Advent of the BI Platform

IT / Developers

Common Metadata


Oracle

ERP

DB2

MS Access

3rd Party

Warehouses

Data Marts

Data Stores

Extracts

M E T A D A T A

Data Integration

BusinessIntelligenceand PredictiveAnalytics

OutputData

Single metadata layer….


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


Single BI platform…

DataData ETL & Data Access

ETL & Data Access

Intermed Storage

Intermed Storage

Business Intellig.

Business Intellig.

Predictive Analytics

Predictive Analytics

Knowledge= Insight

Knowledge= Insight

B

A collection of tools approach…


Intelligence Platform



People and


Performance

Management



Information

Management







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.


The Process…

SOFTWARE TOOLS

DATA

OUTPUT

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


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


EnterpriseBI Strategy

PromotionOf BI within

the enterprise

Governance &Policies

Alignment withStrategic Goals

TechnologyRequirements& Standards

Data QualityStandards

BI Competency Center Functions


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


People and


Performance

Management



Information

Management





Key performance indicators (KPIs) or other metrics fed by the BI platform


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


data store / / data mart

BI and Performance Management


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


People and


Performance

Management



Information

Management





Key performance indicators (KPIs) or other metrics fed by the BI platform


Volume 1 – Winter 2007



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…

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

Thanks for your time.

Documents

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