summit 2010 share | learn | save dr nigel geary, founder & president precisionpoint software

Summit 2010 Share | Learn | Save

BI01/EXE07 – Executive BI RoundtableDr Nigel Geary, Founder & PresidentPrecisionPoint Software

Summit 2010 Share | Learn | Savewww.axug.com

Executive Roundtable on BI

AgendaWelcomeShort PresentationInteractive DiscussionWrap-up

http://www.crmug.com/



GoalsExplore what we mean by BIBusiness Objectives of BIAnalyze alternative approachesArchitectural AlternativesPractical Approaches to achieving BI




Your SpeakersDr Nigel Geary

Founder, PrecisionPoint [email protected]



Facilitator: Dr Nigel Geary, Founder, PrecisionPoint

PhD in Computer Modelling (Polymers) Un1978-82 BPM (mainframe)

Pre-Spreadsheet Interactive Business ModellingBudgeting, Reporting, What-if?

1982-88 EPS (ThornEMI/Pilot) BPM & Multi-dimensional ModellingIBM Mainframes, DEC, HP Minis, PCsBudgeting, Consolidation, Forecasting12-Dimensional Cubes (1984), SQL Integration (1986)Customers: 50% of Global 5,000 incl. IBM, DEC, HP, Microsoft

1988-91 SQL & Client-Server EvangelistLaunched SQLBase & SQLWindows (Gupta) in UKFirst UK Microsoft SQL Server PartnerCreated first Excel/Lotus add-in for Database Access (SQL)

1992-1998 Arbor Software (Hyperion, now Oracle Essbase)First client-server OLAP engine - category defining productExcel user interface

1999-2001 BI for eCommerce – Microsoft, Cognos, Hyperion Essbase

2001-2002 Head of BI for Europe’s largest Dynamics Partner2002-present Founder/President of PrecisionPoint – BI for Dynamics

30 years in BI & Business Performance Management



What is BI?

BI empowers BUSINESS users to leverage data to:

Make better decisions

Make faster decision

Be self sufficient - i.e. not rely on IT

BI is not:Operational/ERP System Reporting (Real-time)

Spreadsheet extracts

Technology alone

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When is it BI and not regular Reporting?BI goes beyond static reportingBI should be interactive –

> report -> analyse -> action

BI should be fast – new reports in minutes, not hours/daysEvery answer raises more questions

Drill down into exceptionsSlice & Dice data for better insight“Speed of thought” response < 1-3 Secs.

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Today’s BI Reality for Many Organizations

Difficult To Use

Fragmented

Inflexible

Departmental

Costly

Complex / proprietary UI inhibit adoption and use

Functionality split across multiple tools

Rigid and unable to change with the business

Narrowly deployed without a complete view

High TCO for Enterprise Deployment


Which version of the TRUTH do you want?

100’s of Spreadsheet or Reports – 100’s of answers:

Correct data? Source? All data? When?

10-30 cubes – do they agree?Reconciliation costs time/moneyWhich cube is correct?

Data warehouse best approach but:All data warehouses are not born equalArchitecture matters – ODS, Inmon, KimballIntegrated schema – difficult but powerful

9



How Many Versions of the TRUTH?

CxO, $MultiBillion US Corp.

“We run our organization on spreadsheets. Finance has their spreadsheet. Engineering has their spreadsheet. Accounting has their spreadsheet. Marketing has their spreadsheet. And we don’t even know what the actual corporate numbers are.”

“We are making decisions of millions of dollars based on spreadsheets that may or may not have some basis in reality!” (Ref 1) Inmon

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The 80% Rule of BI

80% of analyst’s time is spent accessing, organizing & reconciling – not analyzing data

80% of failed BI projects cite data integrity as the #1 issue

80% of BI development effort is building a TRUSTED data source (data warehouse/mart)



Alternatives for BI Architectures



Four architecture for BI/Reporting for ERP

PO GL OrdersItemSales Projects InventRecBudget Tax Plan

Direct Access to LIVE ERP tables

SQL Data Marts Single subject

Multi-Cube OLAP Desktop and Server

Integrated Data Warehouse with

Hyper-cube

Query/Report Extracted Tables

Business Warehouse

Simple OLAP cubes

Data store, data mart, data warehouse modelsLive Reporting


http://www.google.com/imgres?imgurl=http://www.biodeutschland.org/cfo-gipf/SAP-Logo.jpg&imgrefurl=http://www.biodeutschland.org/cfo-gipf/cfo-gipf.php&h=551&w=945&sz=35&tbnid=9f5hdQ6CnNYH3M::&tbnh=86&tbnw=148&prev=/images?q=sap+logo&usg=__aCz3gTiEob9hiNnFwl2MQTFTWvo=&ei=mGKTSe2kG-LEjAfZnpWeCg&sa=X&oi=image_result&resnum=1&ct=image&cd=1

http://www.murihiku.com/images/Sponsor/CognosLogo.jpg

http://www.google.com/imgres?imgurl=http://www.australia.businessobjects.com/jump/insight2005/images/logos/business_objects.gif&imgrefurl=http://www.australia.businessobjects.com/jump/insight2005/speaker_highlights.asp&usg=__DPvk3aLGjZnwVAbKnhpmbM6rcp8=&h=70&w=238&sz=3&hl=en&start=11&tbnid=LpK-1oAobSF8TM:&tbnh=32&tbnw=109&prev=/images?q=business+objects+logo&hl=en&sa=G


Why Business Intelligence…Why Not use my ERP?`

`

Why not use my ERP System? ERP Systems are tuned for transactions (OLTP), not analysis (OLAP)ERP systems security is comprised when general “access” is granted to system tables.Complex table structure- users don’t want to deal with hundreds/thousands of tablesERP systems can be slowed down by analytic summaries and queries Properly designed Data Warehouse can scale to easily accommodate historical (trending) data


Modern ERP SystemsIntegrated model with complex business rules (posting, integrity)


Integrating BI and ERP an Enormous Task

Complex and undocumented logic controls the flow of data

between 1000+ ERP tables

Complex and undocumented logic controls the flow of data

between 1000+ ERP tables

Dynamics ERP NAV or AX Database



ERP Systems are Complex

WARNING: Dynamics ERP systems Can have 1,000’s of inter-related tables …Before: Customization and custom dimensions



Data Warehouse Indexing

StarSnowflake


Most BI Solutions break an integrated ERP application into “Stove Pipes” for BI Analysis.

ItemGL Sales PO Orders Tax

Sales OrdersItem TaxPOGL


Finance Sales

Many cubes = Many answers


Validate transactions

Reconcile Summaries

Hyper-CubeOLAP

(Summaries)

Data Warehouse

Transaction detail

Data Extraction

Is there a better way?

Replace ‘Stove Pipes’ of disconnected simple “cubes” with an Integrated Data Warehouse Architecture and Single Hyper-Cube.

Hyper-CubeReconciled

SQL Data Warehouse

Sales OrdersItem TaxPOGL


Improving organizationsby providing business insights to all employees leading to better, faster, more relevant decisions

Complete and integrated BI offering Widespread delivery of intelligence through Microsoft Office Enterprise grade and affordable


Data Infrastructure & BI Platform• Analysis Services• Reporting Services• Master Data Services• Integration Services• Data Mining• Data Warehousing

BUSINESS COLLABORATION PLATFORM

DATA INFRASTRUCTURE & BUSINESS INTELLIGENCE PLATFORM

BUSINESS USER EXPERIENCE

The Microsoft BI Solution Stack


Business Productivity Infrastructure• Dashboards & Scorecards• Excel Services• Web based forms

& workflow• Collaboration• Search• Content Management• LOB data integration• PowerPivot for

SharePoint






Delivered through a Familiar Interface• Self-Service access

& insight• Data exploration

& analysis• Predictive analysis• Data visualization• Contextual visualization• PowerPivot






Introducing PowerPivot

Analysing Massive Data Volumes in ExcelWith a few mouse clicks, a user can create and publish intuitive and interactive self-service analysis solutions.

PowerPivotfor Excel

PowerPivotfor SharePoint


END USER TOOLS FOR CREATING BI CONTENT

BI PLATFORM

DELIVERY

Reports Dashboards Excel Workbooks

AnalyticViews Scorecards Plans

Mainframe & Departmental Systems

Our End-to-End BI Offering Today

Report development,Ad hoc reporting

ETL Process Development, Data Quality, MDM

Data Warehouse Design and Development

Building Unified Business Models, Predictive Analytics

Spreadsheet creation,Ad hoc query

Data diagrams


Build or Buya BI Solution



Build or Buy?Build

Many risks

Lack of BI expertise in IT and Dynamics VARs

BI Specialists are expensive and in short supply (already on 1-2 year Enterprise Projects)

High maintenance

BuyStandardized Dynamics cubes need modifying

ERP agnostic BI solutions – lowest common denominator as they are not built for Dynamics.Narrow focus – Finance/Budgeting, Sales Analysis

All packaged products are not equal – try before you buy



Return on Investment for BI



Key Drivers for BI ROI

Reduce time & cost of:ReportingAnalysisReconciliation/Audit

Improve profitability–product, customerIncrease Time-Value of InformationLower cost of complianceImprove efficiencyMeasure and motivate staff

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Return on Investment from BIHow can ROI for BI be measured?

Hard benefits, costs savingsDrive up performance/profitabilityReduced head count

Report developers

Analysts / management accountants

Administrators aggregating data

Managers – flatten hierarchies

Soft BenefitsBetter insight -> better decisionsIncrease “Velocity of Information” –> Faster Decisions

Daily business view

Shorter close (month-end)

Improve productivity -> better morale

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Who should be using BI?

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0 10 20 30 40 50

Current % with BI

Business & Financal Analysts

Executives

Managers

Inside Staff

Field staff

Customers

Suppliers

BI Usage by User Segment

© Successful Business Intelligence , Cindi Howson, McGraw-Hill(Ref. 1)



Who Sponsors BI?

BI needs a C-Level executive sponsorCEOCFOCOOCIO if business background

Avoid IT only BI projectsMethodology clashAlways choose IT tools (e.g. Business Objects) not business user tools

Form User/IT partnership – ESSENTIAL

35

Executive Sponsorship is Critical



BI Must Have a C-level Sponsor

36

Executive Sponsorship and Degree of BI Success

Chief Executive Officer (CEO)Chief Operating Officer (COO)Marketing VPChief Financial Officer (CFO)Other Line of Business LeaderChief Information Officer (CIO) or IT Manager

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

21%26%28%29%31%

43%

Executive Sponsors & BI Success

BI Success?

Failure

Moderately Successful

Very Successful

© Successful Business Intelligence , Cindi Howson, McGraw-Hill



0.00 1.00 2.00 3.00 4.00

Degree of Importance

IT and business partnership

Executive support

Alignment with business goals

Quality and expertise of internal BI staff

Company culture fosters fact-based decision-making

BI program has been well-managed

BI projects are appropriately funded

Stakeholders evangelize the effective use of BI

Effective BI Steering Committee

BI Competency Center

Quality and expertise of external consultants 2.23

2.28

2.50

2.74

2.90

2.96

2.94

3.11

3.27

3.34

3.37

Importance of Organizational Aspects to BI Success

Organizational Aspects

37

© Successful Business Intelligence , Cindi Howson, McGraw-Hill

Doing BI right



Making the ROI case for BICustomer Case: PrecisionPoint/ICM, Inc

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Sample hard savings and benefits tables for Dynamic customer

Time Savings Est Time Savings Est $ Savings DetailProject Cost Accounting (Decision Support)

2 FTE—Eliminated2 FTE—Moved from data entry to analyst roles

$220,000 Monthly Construction Project Manager budget reviews and executive team documents are available within minutes with greater accuracy through PrecisionPoint rather than taking hours/days to refresh through extracting data from Nav, dropping into Excel (or Access) and then applying business rules to data to make reports.

Two FTE are more productive and effective by moving from data entry to data analyst roles. Two FTE have been eliminated (two additional have also left but attributed solely to down turn) while the

reporting and decision support capabilities have increased for the group.

Divisional Reporting

20+ hour month $6,000 Moved from infrequent two-dimensional review of Division expenses produced by manual Nav extracts and manual entry to automated Division forecast to actual reporting with "slicing and dicing" and document level drill down capabilities.

A/R Reporting 8+ hour month $2,000 Used to provide basic A/R reporting once a week using a manual process taking 2+ hours to refresh each report. Many new reports are now available providing more specific and actionable information. The new reports take about 15 minutes a day to refresh.

State Sales Tax Returns

12+ hour month $4,000 Automation using PrecisionPoint data to refresh state sales tax filings. The automation resulted in a 33% to 50% reduction in time to produce the filings.

Capacity/Topline 80+ hour month $18,000 Employee hour detail used to be keyed into Navision and then separately into different excel files for "capacity" reporting. Rather than separately rekeying this data into Excel it is now pulled directly out of PrecisionPoint and can be refreshed daily. It's estimated that this has saved 80+ hours of work a month.

Estimated Total Savings $250,000Example new capabilities: Benefits

Various new Project Management reports Visibility to more effectively manage costs for fixed bid construction work in order to increase margin. A margin increase of 0.01% on one project would drive $150k+ in net revenue. The visibility allowed the business to identify hundreds of thousands of dollars of cost savings opportunities.

Purchase order by project reporting Additional Purchase Order oversight to ensure money is spent effectively.Divisional actual to budget with detail reporting Identify opportunities, verify cost savings, drive division expense accountability with managing to budget. The reporting has

helped Finance drive thousands, and possibly hundreds of thousands of dollars out of the business.

Staff utilization/capacity Visibility to individual billable % for customer-facing roles and visibility to support personnel activities. Provided visibility to low-value work to either redirect employee efforts or reduce staff.

Spare Parts Sales Reporting Margin and spare parts "sales funnel" reporting to increase both profitability and top line sales.Cash flow forecasting Visibility to cash inflows/outflows to ensure solvency.

ICM—Estimated PrecisionPoint Savings and Benefits



The 7 Deadly Sins of BI1. No executive sponsor – CEO/CFO/COO2. IT only project – build it and they will

come3. Don’t involve business users4. Evaluate BI tools – front ends, ETL, cube

designers - analysis paralysis5. Assign BI to developer with “time to

spare”6. Expect your Dynamics partner to be BI

experts7. Make Data Integrity an afterthought



References

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1) Recommended reading:

Sucessful Business Intelligence:Secret to Making BI a Killer App, by Cindi HowsonMcGraw-Hill, 2008, ISBN 978-0-07-149851-7

2) Bill Inmon: Management by Spreadsheet, March 26, 2009 http://www.b-eye-network.com/view/9958

3) Microsoft White Paper “Business Intelligence for the Mid-Market” Jan 2009.Available here or email: [email protected] for PDF .


http://www.b-eye-network.com/view/9958

mailto:[email protected]



Wrap-UpThanks for joining us!Be sure to fill out session evaluationsMore to come…

Dr Nigel GearyFounder, President & Chief Product OfficerPrecisionPoint [email protected](650)350 4168 (US) or +44(780)110 6655 (Intl Cell)



Partner ShowcasePrecisionPoint for SharePoint2010

Business Intelligence (Launch)

Wednesday, 11am-12pm

Room: Grouper

summit 2010 share | learn | save dr nigel geary, founder & president precisionpoint software

Documents

bi slide

correct data

data extraction

data warehouses

data integrity

flow of data

historical trending

financesales slide