Business Intelligence

How To Avoid Analysis Paralysis And Create A Competitive Advantage

Richard Vaughn Suporn Jantastoo Rajesh Gopalsamy

Business 2005: Hostile Environment

Profit pressure Vicious competition Empowered consumers Internet services B2B, tighter integration with partners Massive data accumulation Governmental interference How are you going to manage?

Its a Jungle Out There Are You Lost?

Business Intelligence: GPS for Business

Sounds Nice What Is It?

Current literature on BI has proved to be fairly sketchy and theoretical. There is no generally agreed conception of BI, but, rather, each author has promoted his or her own idea of its connotations. The term is used by different pundits and software vendors to characterize a broad range of technologies, software platforms, specific applications, and processes.
Hannula, Pirttimaki Business Intelligence. Empirical Study on the top 50 Finnish Companies. Journal of American Academy of Business. Cambridge; Mar 2003. Vitt, Luckevich, Misner in Business Intelligence. Microsoft Press: Redmond. 2002

BI Evolution
BI is an evolving area derived from: Need to manage the massive accumulation of data from OLTP, OLAP, CRM, ERP, legacy systems, external data and other sources Need to integrate, analyze, transform data across the enterprise for decision support Need to adapt to rapidly changing business environment, competition, reporting regulations

Making better decisions faster

Vitt, Luckevich, Misner in Business Intelligence. Microsoft Press: Redmond. 2002

Business Intelligence (BI)

The processes, technologies, and tools needed to turn data into information, information into knowledge, and knowledge into plans that drive profitable business action. Business intelligence encompasses data warehousing, business analytic tools, and content/knowledge management $75 billion market by 2005 2nd only to web portal investment (Forrester)
Source: the Data Warehouse Institute Faculty Newsletter, Fall 2002

Sounds Nice How Do We Do It?

Isolated silos

http://businessintelligence.ittoolbox.com/browse.asp?c=BIPeerPublishing&r=http%3A%2F%2Fwww%2Eittoolbox%2Ecom%2Fpeer%2Fbi%2Epdf

Take action

Measure results

Gain insight

Clean data

http://www.m87systems.com/services/bi_cycle.htm

Is It Business Intelligence?
Does it: integrate data, allow user queries, adress a business concern and enable better decisions faster?

BI Segments
Information Delivery Analysis and Reporting Visualization Analytics Data Mining Moving from applications to services model Best of breed or integrated solution?

BI Vendors

BI Best Practices
Define the business case carefully Cost-benefits analysis (?intangibles) Alignment with business goals Management support Business representation at every stage Change, vendor and project management Clean Data! Technology (last!) Does this look familiar?

Moss, Atre. Business Intelligence Roadmap. Boston, MA: Pearson Education, Inc., 2003

BI Implementation
A staggering 60% of BI projects end in abandonment or failure because of inadequate planning, missed tasks,missed deadlines, poor project management, undelivered business requirements or poor quality deliverables.

Moss, Atre. Business Intelligence Roadmap, p. 5. Boston, MA: Pearson Education, Inc., 2003

Pitfalls for BI Projects

Misunderstanding the complexity Cross-organizational projects are different Missing/unwilling business representation Poor sponsor choice (weak or no sponsor) Poor staff/project management or skills No iterative development methodology No business analysis Not understanding data/metadata

Moss, Atre. Business Intelligence Roadmap, p. xxi. Boston, MA: Pearson Education, Inc., 2003

Risk Assesment
Low Risk: supports Technology business workflow Complexity seemlessly Integration Medium: some Organizational manual intervention Project Team High: significant Financial Investment manual intervention

Moss, Atre. Business Intelligence Roadmap, p. 41. Boston, MA: Pearson Education, Inc., 2003

Implementation
IDC survey of 400 BI projects 1/3 failure 1/3 adequate 1/3 successful Risk of delay, decreased functionality and failure increases with organizational size and BI complexity

Business Analytics Implementation Challenges: Top 10 Considerations for 2003 and Beyond, January 2003 IDC #28728

10 Biggest BI Challenges
1. 2. 3. 4. 5. Budget Data quality User expectations Culture change Time to implement 6. Data integration 7. Training/educ 8. ROI case 9. Business rules 10. Sponsorship

Business Analytics Implementation Challenges: Top 10 Considerations for 2003 and Beyond, January 2003 IDC #28728

BI: IT vs Management
Management focused on training and education IT focused on data quality and culture change User expectations and training needs INCREASE with acceptance of BI Data warehouse and BI investment GROWS over time
Business Analytics Implementation Challenges: Top 10 Considerations for 2003 and Beyond, January 2003 IDC #28728

Bottom Line
Huge amount of data to monitor Rapidly changing business environment Pace of business is increasing Increased reporting burden Data can be transformed into better, faster decisions You need BI to manage your enterprise and stay competitive.

Canadian Tire Company

Business Intelligence

(Richard Ivey School of Business. Business intelligence strategy at Canadian Tire,(9B03E019)

Four Portions of CTC Case Study

CTC Business Background IS Problem at CTC BI make IS better, cheaper and faster BI champion

Company Background
The company was founded in 1922 More than 45,000 employees More than 1,000 stores and gas bar operations across Canada

Business line
Canadian Tire Retail (CTR) was one of the best-know Canadian retailers, with 390 associate dealers owning and operating 430 stores Canadian Tire Financial Services (CTFS)
(http://www2.canadiantire.ca/CTenglish/h ourstory.html.accessed: August 22, 2003)

Business line (cont)

Canadian Tire Petroleum (CTP) Part Source- chain of specialized automotive parts stores

Marks Work Wearhouse

Financial Performance 2003

(http://media.corporate-ir.net/media_files/TOR/CTR.A.TO/reports/ar03.pdf)

We are growing 2003 was a year marked by an unwavering commitment to the initiatives that will deliver the goals of our five-year Strategic Plan. We produced record results and are financially stronger.We are delivering on our foremost priority superior shareholder returns. And we are growing.
(Wayne C. Sales President & Chief Executive Officer at CTC)

Four Portions of CTC Case Study

CTC Business Background IS Problem at CTC BI make IS better, cheaper and faster BI champion

IS Problems at CTC
From 2003 to 2005 CTC IT strategy focused on simplification, integration and costcutting. Therefore, the IT group faced 7 challenges:
1. Training hardworking people to have the right skill set for future programs 2. IT costs were higher than industry standard 3. Business users were not responsible for their IT costs

IS problem at CTC (cont)

4. Project priority was not set for using business value 5. Adding new systems without consideration of global cost 6. IT reacted only to short-term needs 7. Shadow IT business unit groups were not managed and considered in IT cost

Four Portions of CTC Case Study

CTC Business Background IS Problem at CTC BI make IS better, cheaper and faster BI champion

BI: Chaos at the start

In 1994 CTC started BI, developing an information warehouse (IW) in order to change CTRs image and role from that of a wholesaler to that of a retailer BI became fragmented and IW evolved on old infrastructure and a poor data model Multiple independent data sources, inaccurate data, failing architecture, lack of standards

Launcher Report Developer

Business users

Current BI Environment
Report Developers

Source system

Extract/ Transform/ Load (ETL)

Information Warehouse (IW)

Business support

User
Request

Competitive Data CTR online MWW PartSource

CTAPS

Reporting and ad hoc analysis

Independent Data Source

Future BI Environment

Business users ABC M/modelsConsolidations Plan &Budget Intranet Presentation Layer BI specialists

Financial Data Mart

Source system

Extract/ Transform/ Load (ETL)

Supply Chain Data Mart

Vender Data Mart

CTAPS, PeopleSoft, Equity, CTFS, HR, CTR online, WWW, Part Soft, Other

Information Warehouse (IW)

Marketing Data Mart

Performance Intranet Dashboard Presentation CTR Layer Portal

HR Data Mart

Retail Science: Super users

Meta Base

Quick Win Projects

These projects consist of short-term actions that IT could take to improve BI capacities and to provide users with new information

Business intelligence strategy at Canadian Tire, page 9

Quick Wins
Access to daily sales promotional data Market basket analysis Forecasting Pricing optimization by region Price competitiveness analytics, brand analysis Incremental successes were key, but starting to block overall plan!

New BI program goals

1. Develop an enterprise philosophy (Governance) 2. Foster a culture valuing high data quality 3. Support and enable the CTR business strategies and IT strategies 4. Improve BI efficiency through cross-functional synergies 5. Define and implement the technology changes to enable and sustain BI and IW 6. Define and implement organization changes
Business intelligence strategy at Canadian Tire,(9B03E019), page9

Four Portions of CTC Case Study

CTC Business Background IS Problem at CTC BI make IS better, cheaper and faster BI champion

BI Champion
Andrew Wnek, CTC CIO, worked with CTC system since the mid-90s He lead the initial development of the IW and FRAG- separated BI of CFO for CTR

He wanted to restructure BI environment at CTC in 2005

How to make it successful

According to Andrew Wnek perspective, there are four areas to foster BI system
1. The restructuring of the IT function to include a specific focus on retail IT 2. The development of an IT vision and IT strategy 3. The engagement of Cap Gemini Ernst &Young to assess CTR s BI effort 4. The assignment of a lead business consultant to the BI project
Andrew Wnek SVP IT & CIO

Conclusion
1. Secured the support of top management (Wnek-Project Champion) 2. Redesign business process before technology selection 3. Buy in vendor experience (Cop Gemini Ernst &Young) and let employees learn 4. Implement Incrementally 5. Include users on the development team
( Ashok Subramanian and Mary C. Lacity. Journal of Information Technology: Managing client/server implementations: todays technology, yesterdays lessons, page 169-186. 1997)

Maximizing Profitability The Frank Russell Company

One of the worlds leading investment managers, with assets under management (AUM) of more than $66 billion Some of the largest institutional investors around the world turn to Russell to guide investment over $1 trillion worldwide Founded as a small brokerage firm in 1936 by Frank Russell in Tacoma, Washington. In 2002, it was ranked 11th in the nation in fortune magazines annual list.

The Frank Russell Company

Data and decisions fragmented across business lines Data stored in different formats Different databases No ad-hoc query, manual extraction & formating TOO SLOW and EXPENSIVE

Business requirements
Timely Information needed to manage day to day operations Business users need access to predefined tabular reports in which they could make simple changes Analysts needed quick responses for new business questions to protect revenue as best as possible A better solution was essential to moving the business forward

Picasso Solution
Picasso Architecture

Picasso Sample Report

Picasso Solution Benefits

Reduction in the time spent in gathering operational data Everyone has access to the information within the first five minutes of the workday The time required to develop a new report has also improved radically Each business user has direct and faster access to the data needed to support individual decision making Ability to rapidly prototype the solution

Einstein Solution Building on Success

Einstein was launched in May 2001 to support the analysis of revenue from trades performed on behalf of money managers and to study profitability The institutional brokerage business unit planned to use Einstein to improve its ability to manage product profitability and vendor relationships The project was less complex than Picasso and required a small team to implement

Einstein Solution Benefits

Company executives are now able to prepare thoroughly for negotiations with vendors Managers are able to obtain accurate information Managers are able to identify which vendors are receiving high volumes of business

Summary
Successfully deployed 2 BI solutions in 2000 and 2001 Plans to expand these deployments to include European and Asian data sources to bring a global perspective to its internal operations Einstein made brokerage managers easily and independently assess the relative value of vendor relationships and trading volumes and take decisive action to maximize profitability Rapid access to formatted information = better decisions, faster!

Business Intelligence at SSM

How to Save Lives and Win a National Quality Award

Large health care delivery organization $1.7 billion operating revenues 21 acute care hospitals and other facilities Not-for-profit operated by Franciscan Sisters of Mary BI integral to performance improvement

Baldrige award recipient profile: www.nist.gov/public_affairs/releases/SSMhealth.htm

 5,000 physicians (some employed) 23,000 employees Hospitals, home health, hospice, outpatient clinics, nursing homes Oklahoma, Wisconsin, Illinois, Missouri First health care organization to win the Malcolm Baldrige National Quality Award
Baldrige award recipient profile: www.nist.gov/public_affairs/releases/SSMhealth.htm

System Goals
Exceptional Clinical Outcomes Exceptional Patient, Employee and Physician Satisfaction Exceptional Financial Performance

Sr. Mary Jean Ryan CEO

William Schoenhard COO

Thomas Langston System VP SSMIC

Steven Hunter Regional President System VP SSMHC OK

Ronald Levy Regional President System VP SSMHC STL Depaul Hospital Cardinal Glennon SJHC, SSMRI SJHW, SMHC MCO, PO

Mary Starmann-Harrison James Sanger Regional President Regional President System VP System VP SSMHC Wisconsin St. Marys Good Sam

Information Center

St. Anthony hosp Bone and Joint

St. Clare St. Marys Hosp St. Marys care center

Good Sam Regional Health center

http://www.ssmhc.com/internet/home/ssmcorp.nsf/SSMHC_Org_Chart?OpenPage (modified)

SSM Information Center

200 employees $30 million revenue Expertise in CQI, KPI management Winner of Missouri Quality Award Duopoly with system management with CIO serving at high administrative level
Mo. Quality award application: www.mqa.org/pdf/ssmic02.pdf

U.S. Health Care Crisis

Regulatory burden (Medicare) Financial performance Market competition Standardization problems Older sicker patients with more technology Variation in care for same problem

Reimbursement is being tied to quality CDOs must be able to track outcomes They must report quality data Financial pressure is intensifying Quality improvement is difficult to track Not all MDs are employees Cannot tell a doctor what to do

Business Driven Opportunities existed across all adult hospital campuses for length of stay reductions resulting in large cost savings, and that cost savings due to lower length of stay can have a positive association with improved clinical quality
Dr. Paul Convery, CMO SSM STL

Medical Management Teams

Develop patient care plans Standardization of care, EBM Peer to peer interaction with MDs Discharge planning Patient and MD education Quality improvement processes
Dr. Paul Convery, CMO

Medical Management Report

Centralized report across SSM Clinical outcomes, benchmarked Cost Patient satisfaction Safety
Dr. Convery, CMO

Network Medical Management Committee Clinical Performance Improvement Center (CPIC) (centralized consulting service and data management)

Hospital campus Medical Director QI, VPMA, CM Nurse, HIM

Hospital campus Medical Director QI, VPMA, CM Nurse, HIM

Hospital campus Medical Director QI, VPMA, CM Nurse, HIM

MMR Report Trendstar analyst Clinical outcomes specialist CMO

Mckesson TrendStar Decision Support Application

Chart Reviews JCAHO Core measures QI Teams

Patient Surveys

3M Health Data Mangement Application

MMR REPORT
1. Cover sheet: key Medicare LOS, volume; outcomes for groups; safety outcomes; system KPIs by month, YTD and last 2 years. For high level administration overview 2. Patient satisfaction summary by hospital 3. Performance improvement data sheets: drill down into additional factors with monthly data over the last 12 months, used by PI teams

Safety Indicators
Near miss reports Surgical site marking compliance Dangerous abbreviations

System Indicators
Patient loyalty, satisfaction (surveys) 31-day readmission rate Unscheduled return to OR or ER

MMR: Patient Groups

1. 2. 3. 4. 5. 6. Pneumonia (DRG: 79 & 89) Cardiac Bypass Surgery-CABG (DRG 107) Heart Failure (DRG 127) Hip/Knee replacement (DRG 209) Cardiac Stent (DRG 516 & 517) Acute Myocardial Infarction (ICD9 410)

MMR: Results from BI

Extracted & synthesized from multiple sources Used to focus efforts on performance improvement in line with core objectives Reduced Medicare length of stay 0.5 days $5 million savings, annualized Improved compliance with Medicare CORE measures Better patient outcomes! Key to winning Malcolm Baldrige Award
Dr. Paul Convery, CMO

MMR: Patient Outcomes

- Improved coronary artery bypass surgery mortality - Improved congestive heart failure readmission rate - Improved use of beta blocker with MI patients - Decreased Medicare length of stay
Dr. Paul Convery, CMO

SSM: Lessons Learned

Align with mission and goals Physician support Data definitions Benchmarking Report formatting (dont change it) Distribution Executive support Education of users Link to processes for improvement
Dr. Paul Convery, CMO

 The use of the MMR and the improvement it tracks were a key component to the performance improvement processes which resulted in SSM Health care winning the Malcolm Baldrige National Quality Award in November, 2002
Dr. Paul Convery, CMO

Is It Business Intelligence?
Does it: integrate data, allow user queries, adress a business concern and enable better decisions faster?

BI Test For Our Cases

SSM
Integrate data? Allow user queries? Adress a business problem? Faster, better decisions?

CTC A A A B

Russell A A A A

A B A A

BI Best Practices
SSM
Defined Business Case Cost Benefit Analysis Alignment with Business Goals

CTC C>B NA C>A

Russell A B A

A A A

Management Involved
Business Representation

A
A

F>B
A>A

A
A

Remember -Its a Jungle Out There Are You Lost?

Business Intelligence: GPS for Business

Questions?