BI survey - it breakfast club - 29 january 2013 ver 2.0

Copyright PA Consulting Group

How companies initiate, plan and develop actionable business insight using BI

IT Breakfast Club, 29 January 2013

Christian Riekehr and Anders Rom

© PA Knowledge Limited 2013 Copyright PA Consulting Group

Realisation of Business IntelligenceExplore how companies initiate, plan and develop actionable business insight using BI

We looked for insights into…

• The vision: What were drivers for BI, where was it initiated and was it well found in the business?

• The results: To what extent does BI deliver to promise?

• The future: What are next steps and what will BI v. 2.0 look like?

…in order to understand:

• Why so many BI projects fail to deliver on promise

• How to increase the business benefits of BI

BI realisationSurvey covers and links three aspects

The results

We examine if BI delivered on the promise stated in the vision

Does it deliver the expected value

Discuss where things went wrong and why

The future

Looking into the future. What role is BI expected to play. Is it all about fixing existing BI or are there plans for a BI evolution to a version 2.0

And given experience, what are the recommendations

The vision

In the vision we will examine the origin of BI. We will look into the key drivers, sponsors and what was the expectations for BI

Furthermore, we will look into what was the initial business purpose and what users was BI supposed to support


The VisionIn the vision we will examine the origin of BI. We will look into the key drivers, sponsors and what was the expectations for BI

Furthermore, we will look into what was the initial business purpose and what users was BI supposed to support


What were the initial drivers for working with BI?

Key Statements

“Didn’t begin as BI, but driven by a need of a controllable and

transparent business… sales and planning of production”

“Budding… an overview of the diesel consumption”

“Have worked with data for many years. It got too fragmented... [This industry] should have the lowest IT spending…”

“Began in the eighties as a technology push, but later evolved to a technology pull.”

“A need for transparency in the business”

“Operational reporting. Transparent data. [We were on] a burning platform [to become] one company. [We needed

to go from] a decentralised organisation to a centralised

organisation.”

“Growth, increase in customer base, countries [in which we operate]/ business

areas. [We wanted a] qualified discussion about performance

(financial and non-financial). Management reports with KPIs and the

option of having scorecards.”

“The main goal is supporting the performance management process - from Planning to

registration to ‘follow up activities’.”

The key driver was a need for a centralised and transparent reporting model to support decision making

“The driver was a need for doing following up…The idea was to collect all operational

data produce knowledge and present it to the users…”

“…We need data for making decisions… target and financial management. [We] used

many resources to compile data.”

Key Finding


The BI project was well-founded in the business organisation and in business requirements.

BI vision and approach

“Developed from IT. A data platform was created and from here data was

delivered to the business”

“IT was the driver… no business sponsor”

“It was an IT push and not a business pull”

“The BI project was well founded in the IT organisation, but not well founded in the

business organization. The business have trouble describing their requirements”

“It was owned by the CFO”

“This is not an IT project”

A sound and clear vision for the BI project was developed at the beginning of the BI project.

Neutral, disagree or highly disagree

55%

Highly or slightly agree

45%


64%

Neutral, disagree or

highly disagree

36%


What was the expected value?

Key Statements

“Optimisation of operations, but it wasn’t until recently that it worked”

Optimisation, transparency and shared understanding leading to better management and more informed decisions

“It is a fragmented picture. For follow up of production it is valuable, while less value for sales”

“A more focused sales effort… and realising the sales strategy”

“… streamlined processes, more rapid responds to what worked and what didn’t. Left behind the old BW where everybody worked independently. You

needed to know how to use the data…”

“More transparency in the business. Not today but the

long term trends.

“We don’t know”

“Having a tool for managing the entire

company”

“One point of entrance, one common perception of data, data could be used for other [business] areas. The amount of data increases and you are not able

to handle it manually anymore…”

“We made a 1 and 5 year vision. Historically we had a mass marketing approach, now it is

group based… [Now we have] one common data set and shared definitions, as well as

better control of the company.”

“Not quantified. We got better control, controlling costs. [We wanted to] have better

grounds for navigating based on being informed.”

Key Finding


Sales Management Other

Origin45% 27,5% 27,5%

Bite size Big Bang

Approach91% 9%

Where did BI originate from and what approach was used ?

”One big project with different

tracks”

“It is an incremental process… it has taken longer than

anticipated”

“The approach was taking BU to BU. This approach

was used for a better success”

“Big bang. SAP was rolled out to all organisational

units…”

“Started as big bang… hereafter we got better at

scoping the projects and now they are bite size.”

“Sales, then logistics…”

“Sales was the big one…”

“Sales began, then came

procurement…”

“It originated in the need for financial

reporting, hereafter it was spread out to

the business…”

“From the management perspective and of

course also from finance and IT”

“Operational management reporting…”

“Originated in operations…

planning operations”


The ResultWe examine if BI delivered on the promise stated in the vision

Does it deliver the expected value

Discuss where things went wrong and why


On what level is Business Intelligence used today?

“Medium maturity…, using functions for reporting but with no statistics… only

historic reports… sales forecasting… but have no predictions”

“… big difference in data and quality, business units collect information on it’s own and master data is different… has

‘only’ 95% of the data in the system which is not enough for making

strategic decisions”

“Bi is used for “scheduling, holiday planning…”

“…Decisions are made based on facts, not gut-feeling. We use BI for customers

segmentation. Sales potential is calculated and used for budgeting including growth

targets. Segmentation determines which value pack is offered.”

“Consultant work scheduling and sales management…”

“…HR to get an overview of the development of the salary”

Strategic Tactical Operational


82%


highly disagree

18%


55%


45%


91%


highly disagree

9%


Expected value and measurable benefit

“Some activities have improved which in turn save costs. BI has made visible a number of things…”

“Makes things easier for our customers…and [they] need to do

less… [we] are starting to use reported data….”

“”[We] are better at keeping the discussion on the right track… drives the business during a… crises and still produces a positive result. We

use BI to develop the business.

“Better finance control… improved understanding in the business

units”

“… lower license costs. Less time to assemble information.

The BI project delivered the outcomes that were expected.

What are the measurable benefits?


64%Highly or slightly

agree

36%


The BI project only to a limited extent ran into significant challenges?

Key Statements


64%Highly or slightly

agree

36%

The BI project only to a limited extent ran into significant challenges?

“IT technical issues, difficulties supporting cubes, and

complications with report subscription service”

“… after development the system was to go into operation.

That took a longer than anticipated”

“Good executive backing. What gets in

the way is that we want to do everything at

once. “

“… get things to run fast enough. To go from a push to pull, the business must see

the value of BI.”

“We had technical issues compiling data… waiting for the business… [they are] still

using Excel.”

“We were not mature enough”

“… the tool is still difficult to use for the end-users… the real time perspective

is still an issues, and performance.”


The Future of BILooking into the future. What role is BI expected to play. Is it all about fixing existing BI or are there plans for a BI evolution to a version 2.0

And given experience, what are the recommendations


The BI system etc. is a very good foundation for further development where new possibilities will be made use of

We have a clear vision for the future and a clear road map for coming there.

BI vision and approach

“We still need to [use] the tool to their full potential… there are no

immediate obstacles”

“The functionalities are now in… better condition. The Data Ware House Concept has been changed to be

more flexible and real-time based.”

“A desire for a joint BI system remains”

“There is no roadmap but solutions are developed

based on [vendor name] as requests are received for

the business”

“No need (for a vision) any more. BICC manages the

development… BI is part of the general development”

“There no written BI strategy, but [we] have planes for what

is to be done for e.g. sales”

“Is being addressed at the moment”

“It is being discussed”


55%


45%


82%


highly disagree

18%


Data Quality Master Data Link to business Architecture

27% 27% 27% 19%

The Future of the BI project

What initiatives do you have for enhancing existing BI?

“Simulations of the future and predictive analytics” “[We are] looking into big data,

marketing and customers behaviour on the net.

“… predictive analytics, data mining, and …. Big data.”

The future of BI is working with big data and data mining in an attempt to produce predictive analytics

Key Finding

“… no more than we have today. Data from Facebook, Twitter and online store should be consolidated, but that will be in the future. We

are expecting more data from wholesale customers, [are they buying] at full price or with

a discount…”

“… Follow up of strategic initiatives and using data for reaching other ends. The group will gain

more insight.”

“Data mining is the sales departments responsibility and will be further

developed. Strategic forecasting for markets, and producing predictions

for specific markets.”

How does BI 2.0 look?


Peer recommendations

• “Implement the BI step by step in cooperation to the BU”

• “Don’t try everything at once”

• “The small successes are important”

• “Don' t use the Big Bang”

8. Think big, start small

Top recommendations

• “Less is more”

7. Don’t overcomplicate things

• “Ensure consistency in data, ideally it’s in one place but not at any price “

6. Focus on the data validity

• “Define the goal you are trying to reach with BI”

5. Make a BI strategy

• “Identify the tool that fits the purpose, it needs to be flexible”

4. Ensure platform flexibility – right tool for right purpose

• “Hire someone who knows the business side to bridge IT and the business”

• “Match the competences for those who delivers BI with those that are to receive it”

3. Change management is probably 50% of the project

• “Make a clear Service Level Agreement with the BU”

• “Ensure that expectations are managed”

• “Thorough analysis of the needs”

• “Begin with your customers' needs”

• “Define ownership”

• “Local ownership and participation”

• “Think about the organisation that is to use BI”

2. BI is not an IT project, focus on the business

• “How mature is the organisation?”

• “Think about what there is in it for your organisation”

1. Do not let the hype guide your decisions


Business Intelligence specialists

For more information, contact:

Christian RiekehrPartnerTuborg Boulevard 52900 Hellerupwww.paconsulting.dkT: +45 3925 5021M: +45 4178 1301E-mail: [email protected]

Anders RomManagement ConsultantTuborg Boulevard 52900 Hellerupwww.paconsulting.dkT: +45 3925 5193M: +45 2812 5917E-mail: [email protected]

http://www.paconsulting.dk/

http://www.paconsulting.dk/

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BI survey - it breakfast club - 29 january 2013 ver 2.0

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Transcript of BI survey - it breakfast club - 29 january 2013 ver 2.0