business value chain

8/7/2019 business value chain

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Business InformationSome of the latest thinking in

Business Information Analysis

Data Analytics Management Consulting,1999This document or any part of this document may be freely quoted or distributed eitherelectronically or in hard copy format, provided the identity and contact details of the author (ieJeff Popova-Clark) and this sentence are included and that none of the contents of the document

are altered.

Further articles are freely available at the Data Analytics web site: www.dataanalytics.com

ByJeff Popova-Clark BA, PGDipCogSci, MBA, AIMMSenior PartnerData Analytics Management Consulting3/4 Bushmead StreetNERANG QLD 4211Phone: +61 7 5527 2063Mobile: +61 0412 553 952Email: [email protected]: www.dataanalytics.com


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Collectthe

Data

Validate,Enter &

Store Data

Extract &Transfer

Data

Transform,Cleanse

Data

Analyse,Interpret

Data

Determine &CommunicateConsequences

ActionPlan toCollect

Data

Business Information Value Chain

Develop Form Templates (e.g. Timesheet, Leaveform) Design research methodology Design survey forms, interview plan Review Internet or Academic Literature


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Collectthe

Data

Validate,Enter &

Store Data

Extract &Transfer

Data

Transform,Cleanse

Data

Analyse,Interpret

Data



Data


Complete/Fill-out Forms Undertake experiment, survey, or interview Extract data from literature review


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Collectthe

Data

Validate,Enter &

Store Data

Extract &Transfer

Data

Transform,Cleanse

Data

Analyse,Interpret

Data



Data


ERP Data Entry Enter data into spreadsheet or Survey SupportApplication

Generate data (e.g. during a pay run) Audit data RDBMS with Active Data


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Collectthe

Data

Validate,Enter &

Store Data

Extract &Transfer

Data

Transform,Cleanse

Data

Analyse,Interpret

Data



Data


Data Staging Integrate from multiple sources RDBMS for static data


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Collectthe

Data

Validate,Enter &

Store Data

Extract &Transfer

Data

Transform,Cleanse

Data

Analyse,Interpret

Data



Data


Datawarehouse Datamarts MDBMS


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Collectthe

Data

Validate,Enter &

Store Data

Extract &Transfer

Data

Transform,Cleanse

Data

Analyse,Interpret

Data



Data


OLAP Ad-hoc Query Standard Reporting

Forecasting Benchmarking Data Mining Statistical Analysis ROI/NPV/EVA


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Collectthe

Data

Validate,Enter &

Store Data

Extract &Transfer

Data

Transform,Cleanse

Data

Analyse,Interpret

Data



Data


Verbal Presentation Graphical Presentation Annual or Regular Report

Special or Project Report Inter- or Intra-net Meeting Agenda Item Business Case Hallway Discussion


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Collectthe

Data

Validate,Enter &

Store Data

Extract &Transfer

Data

Transform,Cleanse

Data

Analyse,Interpret

Data



Data


Change Corporate Strategy Change Business Behaviour Change Policy

Undertake Training Decide on a more detailed analysis Media Release Modify Budget Allocation


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Collectthe

Data

Validate,Enter &

Store Data

Extract &Transfer

Data

Transform,Cleanse

Data

Analyse,Interpret

Data



Data


ChangeCorporateStrategy ChangeBusinessBehaviour ChangePolicy UndertakeTraining Decide on amore detailedanalysis MediaRelease ModifyBudgetAllocation

DevelopFormTemplates(e.g.Timesheet,Leave form) Designresearchmethodology Designsurvey forms,interview plan ReviewInternet orAcademicLiterature

ERP DataEntry Enter dataintospreadsheet orSurveySupportApplication Generatedata (e.g.during a payrun) Audit data RDBMSwith ActiveData

CompleteForms Undertakeexperiment,survey, orinterview Extractdata fromliteraturereview

DataStaging Integratefrommultiplesources RDBMSfor staticdata

Dataware-house Datamarts MDBMS

OLAP Ad-hoc Query StandardReporting Forecasting Benchmarking Data Mining StatisticalAnalysis ROI/NPV/ EVA

Verbal Presentation GraphicalPresentation Annual or RegularReport Special or ProjectReport Inter- or Intra-net Meeting AgendaItem Business Case Hallway Discussion


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Collectthe

Data

Validate,Enter &

Store Data

Extract &Transfer

Data

Transform,Cleanse

Data

Analyse,Interpret

Data



Data



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Business Information Continuum

StandardReporting

BusinessResearch

Surveys,Large ScaleInterviewing

Ad-hocReporting

OLAP


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Business Information Focus

StandardReporting

BusinessResearch


Ad-hocReporting

OLAP

Speed, ConvenienceFocus

Accuracy, ReliabilityFocus


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Business Information Investment

StandardReporting

BusinessResearch


Ad-hocReporting

OLAP

Low Effort,Relatively Cheap

Resource Intensive,Expensive


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Business Information Flexibility

StandardReporting

BusinessResearch


Ad-hocReporting

OLAP

Completely standard,No flexibility Completely flexible


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Business Information Drivers

StandardReporting

BusinessResearch


Ad-hocReporting

OLAP

Opportunistic Deliberate


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Business Information Timeframes

StandardReporting

BusinessResearch


Ad-hocReporting

OLAP

Short time frame,Even instant Long time frame,Even years


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Business Information Complexity

StandardReporting

BusinessResearch


Ad-hocReporting

OLAP

Simple,Interpretation obvious

Complex, Interpretationrequires explanation of

assumptions & definitions


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Business Information Verification

StandardReporting

BusinessResearch


Ad-hocReporting

OLAP

Little independentverification

Peer reviewed


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Effect of Technology

- Before

StandardReporting

BusinessResearch

$

OLAP


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Effect of Technology

- After

StandardReporting

BusinessResearch

$

OLAP


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Information Source Dimensions

Quantitative Qualitative

Internal

External


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Business Analysis Audience Functions clients Senior Executive group Government Statisitcal Entities Central Office or Department (e.g. audit)

Other functions staff Other corporate peers (e.g. Finance) Benchmark partners Media/students/interested external parties Your direct supervisor

Yourself (or at least your unit)


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Monitor vs Investigate Monitoring

Performance Service Level Agreements Budgetary or Tax purposes

Proactive (detect issues before they become an issue) Investigating

Find opportunities to make a larger impact

Better allocate resources Test an hypothesis (do we really need Performance

Pay?)

Reactive


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Business Measures Dollars Products Sales Days, Years

Customers Advertisements/

Promotions

Contracts Patents

Contacts Invoices Deliveries Assets

Errors Returns Complaints Share of Wallet Market Share

Or any mathematical combination of the above


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People-Related Business Measures Dollars Employees FTE Days, Years (absence,

accruals) Incidents Transactions

Job Titles/Positions Locations

Qualification Level Experience Level Competencies Injuries

Participations/ Attendances(workshops, doctor)

Errors Grievances/Claims Vacancies

Or any mathematical combination of the above


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Comparisons External

Internal

Past

GoldStandard


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Refinement ContinuumRaw

ProductionData

One PageSummary

Report

DetailedAnalysis

Suite of ReportTables

Datamart,Data Extract


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Trust of AnalystRaw

ProductionData

One PageSummary

Report

DetailedAnalysis



Little Trust of Analyst Required

Analyst Mustbe Fully Trusted


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Effort of AudienceRaw

ProductionData

One PageSummary

Report

DetailedAnalysis



High Levels of EffortAnd Analysis ExpertiseRequired

Little Effort orAnalysis ExpertiseRequired


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Risk of BiasRaw

ProductionData

One PageSummary

Report

DetailedAnalysis



Low Level of Risk of Analyst Bias EffectingResults

High Level of Risk of Analyst Bias Effecting

Results


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Reporting Biases Overly positive

Find any good news (irrelevant of cause) Excuses Justifying previous investments

Understating risk Putting on a positive spin Recommend steady as she goes

Overly negative Find any bad news Assign blame & overstate risk

Recommend fixes


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Breadth of Analysis Organisation-wide

Absence, Turnover, OH&S Severity & Frequency Revenue, Expenses, Profit Return on Shareholder Investment

Function Wide Rec & Sel Efficiency T&D Expenditure/Investment

ROI of entire HR function Project/Intervention-Wide

Return-on-Investment


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Types of Analysis- Summary

Timeframe Available Resources Available Source/Type of Information Target Audience Breadth of Analysis

Monitor or Investigate Comparison Targets Bias Tendency

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