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drives and accessible to a predefined group of corporate users). Key functionality is reduced to data
consolidation and aggregation from various
sources in a repetitive approach (automated, ideally) from trusted data sources.
Dashboards. Dashboards contain high-level,
aggregated strategic company data, inclusive comparable presentations, and consolidated performance indicators. They include both static and
interactive reports with data translated into graphics, charts, gauges and illustrations to simplify the
communication of complex topics. Dashboards
allow basic interactions (such as drill down, sliceand-dice operations to play with the data) and
provide various levels of detail to achieve deeper
insights. However, the explanatory power of dashboards relies mostly on users interpretations.
Analysis. At the analysis level, BI systems
provide not only consolidated information that
users can detail and filter, but also forecasts and
trend analyses to develop new insights (based on
the raw data).
Analytics. At the top level of a BI system is
automated intelligent data analyses based on
sophisticated fuzzy logic and neuro-fuzzy systems. Based on user-friendly but powerful functions, the BI system can retrieve meaningful
insights while hiding the underlying complexity
of data interpretation. What-if scenarios and
simulation functionality provide advanced, tailored decision-making support.
The fundamental basis of every BI system,
however, is the data base on which it operates. Basic
systems focus on corporate financial data only,
while advanced systems interconnect internal and
external sources with qualitative and quantitative
data. Advanced systems process the comprehensive
data set using methods perfectly tailored to a firms
needs and condense the findings into meaningful
knowledgehiding the complexity and selecting
2
Figure 1
Three phases of a business intelligence solution
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Phase 1
Phase 2
Phase 3
Implement solution
and improve tool
according to release plan
Source: A.T. Kearney analysis
Figure 2
The main tasks in Phase 1
Perform qualitative
evaluation
Evaluate potential key
performance indicators
(KPIs)
Analyze empiricial findings
related to use of KPIs
Determine value
correlations
Evaluate simple
profitability metrics
Compare analysis of
value-add KPIs
Make
recommendations
Analyze
risks
connecting to existing data warehouses and additional calculations should be kept to a minimum.
Also, the various layers of a BI system are evaluated to define which areas should be addressed
and identify specific parts that should be eliminated (see figure 3 on page 4).
It is important to clarify at the beginning
which areas shall be covered by the project: Is it
a BI system for finance KPIs only or does it also
include supply chain management? Will the project integrate other functional areas, departments
or even specific business lines within operations?
Often human resources and customer relationship
management (CRM) are the next candidates to
improve finance BI and integrate more of the
Phase 1 should always be completed fully before proceeding with the second phase, as the required reporting and the defined KPIs set the framework for tool selection.
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Life-cycle Mgt.
Localization
Metadata-integration, repositories
Time series
ECM
Guided decisions
OLAP
Usage analytics
QA
BAM / CEP
eLearning
NLP
Predictive analytics
Statistical analysis
Web analytics
Adapters / tool kits
DQ cleansing, profiling
MDM
Guided search
Operational DSS
Discovery and
integration
Version control
Discovery accelerators
EAI / SOA
EII
ETL / CDC
Columnar DBMS
Data
Hierarchical / XML
Multi-dimensional OLAP
Multi-value RDBMS
Streaming DBMS
Infrastructure
In-memory DBMS
RDBMS
Search DBMS
Servers
Network
Storage
Org
Form
factor
PSO
Strategy
Methodology
Scorecards
Governance
SI
Geospatial
Metrics / KPIs
Search
Center of Excellence
Alerts
Appliance
Dashboards
Analytics
Disconnected
BPO
Support
applications
Portals
Mobile
BISaaS
Performance
management
Office suites
Hosted BI (ASP)b-layers)
Reporting
Desktop gadgets
Delivery
Apps
Figure 3
Layers of a business intelligence system
Phase 2 is not only about collecting requirements regarding the functionality of a future tool
(navigation and analysis deep dives, for example)
but also about report design, dashboards and tool
functionality. One point must be stated very
clearly: A pure management cockpit or dashboard cannot replace the internal or external
reporting. As a first step, it can be seen as a second
channel (always available), but with a different
level of detail (management adequate). All management cockpit tools offer a reporting functionality used to print-out the dashboard content.
Replacing the complete paper-based internal (or
external) reporting requires significant efforts as
the detailed design of every single page is outlined
up-front. Both the dashboard screen design and
the report layouts, which cover all of the depicted
content regarding historic numbers and comparisons, among other things, finally get defined
before the detailed concept is handed over to a
system integrator for implementation. The realization of the screens and the corresponding KPI
visualization are the main drivers of the system
implementation and the testing. Therefore stability is required.
Figure 4
The tasks in phase 2
Focus on cross-organizational
efforts
Distinguish between businessdriven and IT-driven projects
Define the long-term BI scope,
from the beginning
Realize a mobile version of
business intelligence
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Assessment
Perform assessment
to ensure the need
for a cockpit
Conduct a brief costbenefit analysis of the
area and other potentially
affected areas such as
procurement
Vendor
selection
Draw up a short list
of vendors, taking into
account industry reports
and other external
information
Assess the options from
an internal viewpoint
Requirements
and prototypes
Complete a list of
business requirements
and build a first simple
PowerPoint prototype
to develop a look-andfeel of the final product
Proof of concept
Begin company-vendor
discussions
Help the vendor understand
the client and ensure vendor
receives timely feedback so
to make quick improvements
Source: A.T. Kearney analysis
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Category
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On-board tools
Vendor 1
Vendor 2
Implementation
design
Implementation
comments
Implementation
simulation
Transition from
prototype to
release I to II
Connectivity to
data
Executed on machine
one, no export of the cube
data needed
Hardware costs
None
Full function
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MIDDLE EAST
& AFRICA
Abu Dhabi
Dubai
Johannesburg
Manama
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Authors
Alexander Martin is a principal in the strategic information technology practice. Based in the Dsseldorf office,
he can be reached at alexander.martin@atkearney.com.
Robert Jekel is a consultant based in the Zurich office. He can be reached at robert.jekel@atkearney.com.
Edgar Simons is a consultant in the Dsseldorf office. He can be reached at edgar.simons@atkearney.com.
2011, A.T. Kearney, Inc. All rights reserved.
A.T. Kearney Korea LLC is a separate and independent legal entity operating under the A.T. Kearney name in Korea.
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