BEING IN THE KNOW - THE POWER OF BUSINESS INTELLIGENCE AND ANALYTICS

Transcription

1 AGC'S Contractor to Contractor Webinar Series: BEING IN THE KNOW - THE POWER OF BUSINESS INTELLIGENCE AND ANALYTICS Nick Persellin, CPA Director of Financial Systems Bay, Ltd. A Berry Company Jon Bruce Solution Engineer Computer Guidance Corporation Rick Gott Product Manager Computer Guidance Corporation Sponsored by

2 Discussion Points Construction Moneyball ERP & The Role of Data The Value of Information Being In The Know in a Construction Enterprise Business Intelligence Technology Utilizing Business Intelligence within Bay Ltd. Looking Into The Future Top 10 Trends in BI in 2014 Sponsored by

3 Nick Persellin Director of Financial Systems at Bay Ltd, A Berry Company Various positions in Accounting including Controller and Director of Financial Reporting Expertise in construction accounting, software implementation consulting and product support BBA in Accounting, MBA in Information Systems and CPA licensed in Arizona

4 Bay Ltd., A Berry Company Heavy Highway/Civil Regional Offices in: Aransas Pass, TX; Friendswood, TX; Calgary, AB, Canada; Amelia, LA; Belle Chasse, LA; Delegacion Miguel Hidalgo, CP, Mexico; Billings, MT; Barranquilla, Colombia A full-service multi-discipline construction, fabrication, and maintenance contractor specializes in refining, chemical and petrochemical manufacturing, gas processing and transmission, offshore exploration, power generation, and more

5 Rick Gott Product Manager at Computer Guidance Corporation 30 years with Computer Guidance, construction ERP solution provider Experience includes development, installations, support management and technical sales Rick has a Liberal Arts Degree and is a graduate of IT Technical School rgott@computerguidance.com

6 Jon Bruce Solution Engineer at Computer Guidance With Computer Guidance for more than 15 years, serving in various roles during that time Jon has worked as both a public accountant and controller in the construction industry Jon has a Bachelor of Science in Business Administration and CPA in the state of Michigan jbruce@computerguidance.com

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8 Moneyball The Movie: Use of sophisticated statistical models to analyze professional players performance The Concept: Making decisions by using science and statistics through Big Data and Business Intelligence instead of sentiment, gut feeling, for money alone, company values, personal relations Your Opinion? Is this Good? Is this Bad? Our Opinion: Data sharpens your vision to see beyond the obvious

9 Construction Moneyball Important Construction Statistics Employment / Hiring Labor Productivity Equipment Performance Materials Purchasing Subcontractor Performance A/P and A/R Status Weather Conditions / Forecasting Why? Enhance margins Improve productivity Improve cash flow Reduce costs Win more bids Hedge risks

10 Construction Moneyball Key Requirements Integrated System Enterprise-class System Single Data Source Reporting Tools Dashboards How? ERP with Business Intelligence & Analytics Accessibility Scalability

11 What is an ERP? Why is it important? Data Resides in one database regardless of source Real-time Accurate Live Integrated Processes Documented Visible / Shared Standardized Consistent Automated ERP delivers a unified platform for the standardization and integration of business processes and data

12 The Role of Data Capture, collect, store and make available facts, figures and statistics Raw data has little value until it is transformed into information and intelligence

13 The Value of Information Fact-based decision-making process (i.e. moneyball) Better Business Historical performance analysis Current KPIs and statistics Future projections and forecasts

14 Business Performance Management Study 3,083 companies were surveyed 32% of responses were companies with 5,000 employees 5% no data or very little data used 15% some facts and sporadic, ad-hoc data used 12% have some data to collect and report performance data 36%have data to produce reports 33% have data and uses data, starting to gain benefits 7% using data for improving operational performance 11% using data for strategic decision-making Actuate Advanced Performance Institute 2012 Study

15 Business Intelligence In Construction

16 Business Intelligence In The Office

17 Business Intelligence In The Office Accounting Outstanding Payables Aging Receivables DSO Aging POs and Invoices On-time Delivery Subcontract Payments Payroll Payroll Costs (budgeted vs. estimated) Field Productivity (Payroll Entry) Forecasted Labor Rates & Hours Vacation & Holiday Availability

18 Business Intelligence In The Office Finance Cash Flow Profitability (business unit, job, company overall) (P&L) Backlog Value Job / Contract Management Job Costs CORs Original Contract Summary Project Budget / ECAC Planned Profit per Job Contract Analysis based on CORs and Contract Summary Expected Profit based on input from the field Equipment Costs Labor Costs Financial Reporting Auditing Strategic Planning

19 Business Intelligence In The Office Human Resources Employee Demographics Stats Benefits Costs Average Sick Days Compensation per Department Number of Employees per Department Skills Training Certifications / Expirations Safety Training Certifications / Expirations Staff Requirements and Availability Safety & Risk Management Management Reporting Auditing Strategic Planning

20 Current Ratio Total Liabilities Total Funded Debt EBITDA Revenue-to-equity Debt-to-equity Debt-to-income Revenue/Operating Profit Contract Bookings DSO Backlog Backlog Depletion Level Sales Pipeline Financial Management KPIs

21 Human Resources KPIs # of Employees Turnover % Employed vs. Contracted Employees by Department Labor cost by Employee Employee by State Revenue per Employee Margin by Employee Profit by Employee Safe Hours Skills Inventory / History

22 Top Performing Equipment Least Performing Equipment Performance per Equipment Type / Class Equipment Cost per Type / Class Equipment Revenue per Type / Class Equipment Utilization by Type / Class Equipment Maintenance Costs Equipment Performance per Sourcing Equipment Costs per Sourcing Equipment Revenue per Sourcing YTD/LTD Revenue Equipment Accounting KPIs

23 Materials Management KPIs Stock Availability Re-order Analysis Inventory Turnover Bill of Materials Seasonal Trends Contract Pricing Price Index

24 Business Intelligence In The Field

25 Business Intelligence In The Field Project Management Job Costs Job Performance Job Budgets Comparisons among Crews, Project Managers and Jobs Field Payroll Time and Attendance Crew Productivity Crew Labor Costs Crew Man Hours Comparisons among Crews and Jobs Company-wide Communication Pro-active Decision-making Stakeholder Collaboration

26 Hours Earned Safe Hours Productivity A/R aging Revenue per Employee Budget ECAC Revised Contract % Complete by Cost Type Budget Performance to Date Project Management KPIs

27 Contract Performance Analysis Contract Summary Contract Changes Summary Job Cost Analysis Current Contract Values per Type of Work Budget Performance per Job Cash Position Operations KPIs

28 Business Intelligence Technology

29 Business Intelligence Architecture Technology Layer View

30 Business Intelligence Architecture User / Functional View

31 Information Presentation Browser-based GUI Dashboards Reports Alerts Drill-downs Search, Filtering and Indexing

32 Accessibility Browser-based Solutions On-premise Deployment Cloud-based Deployment Mobile Devices

33 Security Employee Profile Based Software User Profile Based Database Field Based Incorporation of ERP Security

34 Smart Business At Bay Ltd.

35 ecms + ERP = ecms 3 rd Party Apps Estimating PM Document Control Legacy Apps Timekeeping Procurement Offline Reporting Forecasting Financial Consolidation Historical Ratios Ad hoc queries Lots of data Many data sources

36 Our Goals Multiple Data Sources Relevant Reporting Beneficial Accurate Timely Push Control Presentable / Variety of formats

37 Our Path Examine exiting reports Identify key Eliminate non-essential About 4,000 removed! Isolated BI Team Implemented BI approval process Internal Audit Review

38 Business Intelligence at Bay Custom Reports to assist: Accounts Receivable Personnel Payroll Plant Sales Dashboards provide real-time information: Historical charting Pie Charts Comparisons Graphs

39 A/R Aging Dashboard

40 A/R Aging Historical Comparison

41 Overhead Graph

42 Employee Distribution Chart

43 Monthly Job Analysis Monthly Job Analysis Page1 User :NICKP Begin Date: 01/01/2014 End Date: 01/31/2014 Report Date :02/08/14 Report Time :17:28:56 Job Number Fiscal Years FY Month Sales Cost Profit Profit/Cost Equipment Charges Equip/Cost Jan 2014 $224, $180, $44, % $22, % FY Total $224, $180, $44, % $22, % Overall - Total $224, $180, $44, % $22, %

44 BI Going Forward Focus on nonaccountants DMs, PMs, etc. Reduce manual efforts Empowerment Continued report migration COGNOS + TM1 Cognos Controller Increased database integration 3 rd party, legacy, offline, tables, etc.

45 Top 10 Trends in Data-driven Culture 2. Cloud Goes Mainstream 3. Big Data Goes To The Sky 4. Agile Business Intelligence 5. Predictive Analytics 6. Embedded BI 7. Storytelling Becomes Priority 8. Mobile Business Intelligence 9. Social Media Analytics 10. Unstructured Data (NoSQL) Source: Tableau White Paper

46 ConExpo/AGC BOOTH #65132 Computer Guidance Corporation ecms Construction ERP Solution

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