Organizing for BI. Halil Aksu Istanbul, Bogazici University

Transcription

1 Organizing for BI Halil Aksu Istanbul, Bogazici University

2 Skills, Not Technology, Inhibit Enterprises in BI Through 2007, business intelligence will be a key component to realizing new strategic business initiatives (0.7 probability). By 2006, large enterprises will need three times as many BI personnel as they did in 2002 (0.7 probability). By 2006, demand for BI skills and staff will outweigh supply by 2-to-1 (0.8 probability). By 2007, enterprises will not be effective in meeting their strategic business objectives if they do not invest in, organize and align their BI skills to these business objectives (0.8 probability).

3 Conclusions There is return on investment associated with business intelligence, but only if you organize for it. Enterprises need to centralize their skills in a BI competency center to break down organizational barriers. Teamwork between business users and the IS organization is essential to building a solid foundation with the data warehouse. The BI competency center works closely with the data warehouse team. The BI competency center is crucial in helping enterprises successfully embrace new business paradigms.

4 Is BI Contributing to Your Bottom Line or Top Line? Revenue Increase BI Driving Operations Time Costs Down Operations Driving BI

5 The New BI Silos Executives? Functionality Human Resource es Sales an nd Marketin ng Finance Operatio ons BI Apps.: Strategic, Operational, Analytical Q+R: Standard, Canned, Ad Hoc Infrastructure BI Platforms, EBIS, Data Mining, IT-Centric/User-Driven Data warehouse IT ODS ETL Integration brokers

6 Only Organizing for BI Brings Leverage Business Organization Key Trends: Globalization, Virtualization, Transparency Performance Management, Front-Office/Back-Office Information, Culture (Inclusion, Exclusion) User Types, BI Methodology, Skills and BI Department Competitiveness Leverage Functionality BI Applications: Strategic, Operational, Analytical Q+R: Standard, Canned, Ad Hoc, User-Driven Effectiveness BI Platforms, EBIS, Data Mining, IT-Centric/User-Driven Infrastructure Data Warehouse ODS Efficiency ETL Integration Brokers Point in Time Real Time Transactional ERP CRM SCM Legacy...

7 Organize Analytic Skills in a BI Competency Center Summarize and analyze Link to corporate strategy Develop decision alternatives Interpret results Business Skills Alter processes BI CC Prioritize and set expectations Establish requirements Monitor results Implement changes Discover and explore Analytic Skills Identify data Extract data Store, maintain, integrate data IT Skills

8 The BI Competency Center Is Managed Using A Well-Defined Methodology

9 But... Where to Find These People? Business skills Accountant, business analyst, marketing analyst BI competency center as a career tool IT skills Information analysts/junior information manager who wants to cross over to business BI competency center as a stepping stone Analytic skills Econometrist, statistician, senior list manager

10 The Scope of Governance Depends on Project Scope Degree of Governance by the BI Competency Center 0% 100% Special-purpose BI applications Departmental BI Applications. Framework and Standards Cross-Functional BI Applications Multiple departments and data sources Corporate BI Applications

11 Where to Place the BI Competency Center? Plan A: Report to the business (in a collaborative environment) CFO Core Business Plan B: Report to the CFO (only if matured from financial control to management control) Plan C: Report to the CIO (if IS has the only overviewing role) CIO

12 Funding the BI Competency Center Overhead g No barrier of using BI competency center services g No indication of economic value Subscription-based g Reducing barriers for use g Understanding economic value Billing queries, activities... g Fair share of costs; heavy users pay more g Creating a barrier for use Service-based g Venture funding to start up g Fixed price bid and annual support

13 It Takes Teamwork to Build a Solid BI Foundation

14 Case Studies: Organizing Data Warehouse Administration Rating Classic IS organization treating data warehouse as OLTP; same escalation, same incident management and more Retail chain has no administrative skills/resources; data warehouse and BI applications are kept in development Asset management firm has shared resources, but on top of that there are three service lines : OLTP, data warehouse, e-business Large telco data warehouse has completely separate administration because of esoteric platform Organization chose to outsource its complete SAP R/3 operations, including SAP-centric data warehouse + +/ +/

15 Overview of All Roles Sponsors DBA Production Specialist BI Competency Center Metadata Administration Architect BI Developers Data Warehouse Developers Query Specialists Business Consultant Application Coordinator Analysts DQ Inspector Executives Knowledge Workers Data Stewards Middle Management IT Business

16 The Impact of Collaborative BI Applications The Expert Bottleneck Users Finance Users Finance Users The Collaborative Value Chain Users

17 Corporate Performance Management and The BI Competency Center Processes Strategy formulation Budgeting and forecasting Goal setting Performance feedback Business activity monitoring Methodologies Balanced scorecard European Foundation for Quality Management Value-based management/ economic-value added Activity-based costing Intangible asset management Metrics Financial and nonfinancial Short term and long term Quantitative and qualitative Lagging and leading Aligned BI Applications Strategic Operational Analytic

18 Think Outside the Enterprise Competitors Benchmarking Back-office economy of scale analysis Government Legal reporting Operational insight Shareholders Profit reporting Shareholder loyalty Supply-chain optimization Suppliers Marketplace analysis Planning Empowerment Sales force automation Employees Loyalty instrument BI is the product Customers

19 Recommendations Organize for BI: Think of the skills you need. Implement an appropriate funding strategy. Find the right executive to report to. Work closely with the data warehouse team. Give the BI competency center a strategic role in embracing new organizational paradigms. The BI competency center is not the only competency center, and should actively collaborate and share resources with the other competency centers.