Case Study Proposal

Alexandra Chtchtedrina | Pragya SethCraig Doner | Kieran Blubaugh

2/21/2013

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Agenda

Current State Analysis Business StrategyIT StrategyBusiness Performance ImprovementPeople FocusInformational Systems

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Current State of BI at Guthy-Renker

•Currently Guthy-Renker is in Stage 3 Proactive:

•Characteristics of Stage 3:▫ Upper level management attention▫ BI system in place at their central hub

•Level 4 Barriers▫ A group coordinates all information-management

activities across the enterprise. Data stewards assume responsibility for data quality in the business units and IT organization.

Current State Business Strategy IT Strategy Performance

Management People Focus Information Systems

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GR should focus on the following improvements Get to maturity level 5

Better alignment of IT and Business

CEO involvement Improving Performance

Management Extending current BI

system across the entire value chain

Enterprise InformationManagement to drive results

Supply Chain Users

Current State Business Strategy IT Strategy Performance

Management People Focus Information Systems

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Key aspects of business strategy focus

• CEO sets a unifying vision• Board of Directors maintains a consistent vision

if leadership changes

Importance of Executive Support

• Institutionalize data driven decision making before rolling out BI Implementation

Creating a Data Driven Culture

• Vendors, Outsourcers and Partners must share data-driven decision culture and utilize the BI structures developed by Guthy-Renker as data producers and as data consumers

Vendor Relationships

Current State Business Strategy IT Strategy Performance

Management People Focus Information Systems

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IT strategy should align with business needs

Current State Business Strategy IT Strategy Performance

Management People Focus Information Systems

• Business users buy-in

• Understanding the impact of BI,

how to realize more benefits

from the system

• Use information from BI systems to

predict future needs

• Understand reporting

requirements

• Understand business

communication

• Support for increasingly virtual and

international organization

Business

IT

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IT Strategy to support business processes

Immediate areas of improvement Consistency across all data source systems Implementation of enterprise data

warehouse Enhancements to ETL tools and reporting

tools

Improvement in future – new BI approaches Social media analytics In-memory analyticsCurrent State Business

Strategy IT Strategy Performance Management People Focus Information

Systems

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Social Media Analytics for customer data

Analysis of tapped information using visualization and modeling

Social Media BI – structure the unstructured information

Use of social media for marketing

GR focus on marketing campaigns and customer response

Current State Business Strategy IT Strategy Performance

Management People Focus Information Systems

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In-Memory Analytics for faster BI systems

Features Self-service analytical capabilities Agility of development Faster query responses

Benefits to Guthy-Renker Performance improvement Cost efficiencies Improved information access Flexibility

Current State Business Strategy IT Strategy Performance

Management People Focus Information Systems

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IT Governance to support BI strategy

Maintain current alliance with Trinius to work towards achieving

BI maturity

In-house data quality groups for internal

audits

External consultants to audit systems and data

at regular intervals

User surveys to identify areas of improvement

Current State Business Strategy IT Strategy Performance

Management People Focus Information Systems

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Business Performance Management at GR

Currently GR uses soft Measures: Are people involved Are people invested in the project

Extending Key Metrics to Value add indicators Cost per order Financial Reduction of overall

costs due to system Customer lifetime value Internal business

Revenue Increase Return on Promotional Investment Customer

Perspective Number of under performing promotions eliminated

Current State Business Strategy IT Strategy Performance

Management People Focus Information Systems

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How personnel changes influenced effectiveness The change from FoxPro to IBM’s Cognos was

not enough to solve all problems At first, it only migrated the same bad process

Brought in consultants from Trinus Corporation They possessed the proper skills and experience to make

a successful process

Key to success was a “shake up” of the development team This disrupted the habitual behaviors that caused errors

to repeat in the past

Current State Business Strategy IT Strategy Performance

Management People Focus Information Systems

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Current Information Systems architecture at GR

Operational System

ETL Tools - Informatica

Managers (Users)

Operational SystemVarious data source systems

Operational data store (Oracle)

Managers (Users)

Managers (Users)

…

Current State Business Strategy IT Strategy Performance

Management People Focus Information Systems

Dashboards

Analytics Scorecards/ reports

Reporting systems – IBM

Cognos

Derived System

Reconciled System

Operational System

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Reporting system

IBM Cognos reporting system 3 sets of auto-generated reports: flash, weekly,

monthly Tailored for specific functional users:

executives, operations. Etc.. Ad hoc reports available Open source – service oriented architecture Expand this system to entire value chain Train users

Current State Business Strategy IT Strategy Performance

Management People Focus Information Systems

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Derived system

Implement Enterprise Data Warehouse - Inmon’s approach Leverage existing relational databases Strategic approach to address enterprise wide needs Scalability and flexibility

• Inadequate involvement from top management

• Inadequate involvement form business users

• Data quality issues not addressed

• Important to understand organization’s needs

• Continuous assessment of business requirements

• Centralized implementation approach

Common mistakes Key Learning

Current State Business Strategy IT Strategy Performance

Management People Focus Information Systems

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Reconciled system

Master Data Management: Unify GR's many units within one business strategy

Importance of Data Accuracy: Data Profiling as a tool to ensure Data Accuracy Data must be accurate, timely, relevant, complete, understand,

and trusted

Common mistakes Key Learning

Implement new IT solution over the

existing faulty data structure

Complete Data Profiling and re-design business

processes before implementing a new IT

solution

Current State Business Strategy IT Strategy Performance

Management People Focus Information Systems

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Data Governance respected enterprise-

wide

effective communicato

r

proficient in business

builds consensus

manages change

builds teams

Assign data ownership in a way that reinforces silo-

ing of data and territoriality

Use Data Stewardship as a data-ownership model

to facilitate sharing

Common mistakes Key Learning

Master Data Management: Unifies GR's many units within one business

strategy

Effective Data Steward: Respected enterprise wide, effective communicator,

proficient in business, builds consensus, manages change, builds teams

Current State Business Strategy IT Strategy Performance

Management People Focus Information Systems

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Conclusion

Currently: Level 3 – Proactive

Proposal: Achieve Level 5 – Effective

Improvement Factors Better alignment of IT and Business CEO involvement Improving Performance Management Extending current BI system across the entire value chain Improvements in BI technology

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Questions?

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Appendix: EIM Maturity Model

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Appendix: BI Methodology

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Appendix: GR Org Structure

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Appendix: Processing Data at GR before BI

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Appendix: Intended BI Structure

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Appendix: The BI Continuum

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Appendix: GR’s KPI’s

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Appendix: References

1 Fisher, T. "Data Profiling: The Diagnosis for Better Enterprise Information," Business Intelligence Journal (12:3) 2007.

2 Henderson, J.C., and Venkatraman, N. "Strategic alignment: Leveraging information technology for transforming organizations," IBM Systems Journal (32:1) 1993, pp 4-16.

3 Kaplan, R.S., and Norton, D.P. "The balanced scorecard – measures that drive performance," Harvard Business Review (70:1) 1992, pp 71-79.

4 Khatri, V., and Brown, C.V. "Designing Data Governance," Communications of the ACM (53:1) 2010, pp 148-152.

5 Newman, D., and Logan, D. "Gartner Introduces the EIM Maturity Model," Gartner Research) 2008.

6 Strong, D.M., Lee, Y.W., and Wang, R.Y. "10 Potholes in the Road to Information Quality " Computer (30:8) 1997, pp 38-46.

7 Wadehra, A. "The ABCs of Master Data Management: Architecture, Business Case, and Customer," Business Intelligence Journal (12:1) 2007.

8 Bonde, A. “Blending BI and Web 2.0: The Path to Collaborative Business Intelligence”, Evoke CRM, February, 2010.