Transcript Analytic Value Creation Practice

IBM Business Consulting Services
iAnalytics (Business Intelligence)
Wednesday, October 9, 2002
Discussion Topics
 iAnalytics – What is it?
Public Sector perspective
– A provincial case study
– Results for Canadians
Questions and Answers
Context
Over ten years ago, the ERP/backoffice transaction systems constituted
the first wave of large-scale IT
investment
Business
Business
Optimization
Optimization
iAnalytics
Next were Year 2K initiatives, paralleled
iAnalytics
by Data Warehousing and CRM/frontPerformance
Performance
Business
office applications
Management
Intelligence
Management
Integrated Analytics is the next wave
aimed at unleashing the value
contained within these past investments
iAnalytics – It’s About Closing the Gap
Today’s solutions are successful in accessing data,
and making it available to users, however…
Data
Information
p
a
g
e
h
t
Action
Value
…today’s solutions are not successful in directly linking
information to action, and its corresponding value
iAnalytics – It’s About Closing the Gap
INTERNAL
CONSUMERS
Strategy Definition,
Evaluation &
Communication
EXTERNAL
CONSUMERS
Perf. Framework
Regulatory
Executive
Strategic Planning
Account. Contracts
Management
Processes
Management
Operational
Planning
Operational
Performance
Monitoring
Client Service Analytics (CRM)
Financial Analytics
HR Analytics
“Supply Chain” Analytics
OGDs, Partners
Performance
Improvement
Tactics
Clients
Vendors
COMMUNICATION
COLLABORATION
Feedback
•
•
•
•
•
•
•
•
Integrated
Performance Management
Solutions (IPM)
Advanced Analytics
Integrated Data &
Information Solutions (IDIS)
Enterprise Info Quality Management
Data Transformation & Integration
Data Modeling
Database Management
ODS, Data Warehouse, Data Mart Solutions
Information Delivery Solutions
ERP/Packaged Solutions
Vendor Evaluation
• PMO Design
• Governance
Design &
Implementation
• Benefits Planning
& Realization
Program Management/
Office (PMO)
Vision, Integrated Roadmap &
Blueprints (VIRB)
• Vision & POV
Development
• Capability
Assessment
• Business
case/value
proposition
• Integration
Roadmap
• Process Blueprint
• Organizational
Blueprint
• Technical Blueprint
• Performance Measurement & Balanced Scorecard
Solutions
• Integrated Planning, Forecasting & Budgeting
• Business Performance Management
• Process Measurement & Control
•
•
•
•
Strategic Analytics
Financial Analytics
Customer Analytics
Supply Chain
Analytics
• HR Analytics
• IT Analytics
A Public Sector Context
The realm of possibility
– iAnalytics demonstration (U.S. federal department example)
– Note – intention is to do this demo on line (screen shots are
only a fall back)
A Provincial Case Study –
Situation
The
Way
We
Were
Approach
and
Solution
 Lots of paper; no information
 Variety of applications and reporting tools with limited skill sets
 Desire to provide tools to enable financial accountability and:
 Provide good (i.e. correct) useful information and a means of
delivering it to enable managers to pinpoint problems
 Enable managers to get information without going through IT shop
 Built a ‘Proof of Concept’ generic template including a Oracle Fin’ls
data mart, ETLs, data cubes, and reports for GL and Payables
– IBM provided data, database, analysis experience, and
methodologies for rapid deployment using Oracle Financials
– Cognos provided tools and DW expertise
 Template customized with BCFC data
 Iterative demonstration/tailoring cycles to BCFC Users
 Application into production
A Provincial Case Study
Key
Success
Factors
 Executive level and business buy in secured through use of
prototypes and demonstrations
 Tight scope control
 Involvement of trained BC Ferries staff
– Project Manager, User Group Developers, Testers
 Solid / expandable technical infrastructure
The Federal Agenda – Modern Comptrollership
and Results-Based Management
 Results for Canadians grounds performance measurement in:
– shift of focus from activities/outputs to outcomes/results
– clear, concise reporting of achievements
– strong internal and external accountabilities
– using performance information to take action
 Modern Comptrollership underpinnings:
– Integrated performance information
– Sound approach to risk management
– Appropriate control systems
– Ethical practices and values
Key Business Drivers
Mission
 Increasingly, corporate plans reflect
top-down, outcome-based strategic
Strategic
Goals
performance management frameworks but…
Strategic
– dots aren’t always connected
Priorities
– frameworks have not yet cascaded down
 Management systems are generally not aligned
– Lack of integrated financial and non-financial data
Strategic
Objectives
– Everyone is struggling with data – availability, timeliness, integrity
 Lack of “corporate” data architecture and metadata strategy
 Getting data out of the ERPs is difficult and requires
considerable “transformation”
– Point solutions are being implemented to provide short term relief
 Departments are procuring tools to solve performance
(particularly financial) reporting challenges
Lessons Learned: To succeed, you’ll need…
 Committed Leadership (at all levels)
– Active involvement (not just verbal support)
– Focal points (if everyone owns it… no one owns it)
– Buy-in to goals and ways of way of measuring success
– Accountability contracts aligned with performance targets
 Trained Staff (especially Program Managers)
– Understand concept of performance/results-based management
– Primary “users” are actively engaged and understand where they
fit within the framework
 Incentives to Use Performance Information
– From top leadership down to front line employee
– Measures make sense to staff throughout the organization
linking what employee does day-to-day with organizational goals
Lessons Learned: The biggest challenge is
balancing speed and completeness
COMPLETE
Range of Solutions
POINT
SOLUTIONS
BUSINESS FOCUS
PROGRAM/POLICY FOCUS
 Top-down, integrated Performance
Management Framework
 (One-off) RMAF
 Chart of Accounts Design
IDEAL SOLUTION
 Systems Strategy
 Develop long-term roadmap
 etc.
 Deliver incrementally with
quick wins
DISADVANTAGES:
 Technology-enabled
 Slow and expensive
 Address data quality
 Strong chance that changes will
never occur
 Change some processes
 Continuous improvement
TECHNOLOGY FOCUS
 New Reporting Tools
 (Enterprise) Data Warehouse
DISADVANTAGES:
 Eliminates some symptoms but
not root cause
 Faster processing of flawed
data
 Won’t produce insight – long
term vision
Questions and Answers