IBM Business Consulting Services i Analytics Business Intelligence

IBM Business Consulting Services i. Analytics (Business Intelligence) Wednesday, October 9, 2002

Discussion Topics § i. Analytics – What is it? § Public Sector perspective – A provincial case study – Results for Canadians § Questions and Answers

Context § Over ten years ago, the ERP/back-office transaction systems constituted the first wave of large-scale IT investment § Next were Year 2 K initiatives, paralleled by Data Warehousing and CRM/frontoffice applications Business Optimization i. Analytics Performance Management § Integrated Analytics is the next wave aimed at unleashing the value contained within these past investments Business Intelligence

i. Analytics – It’s About Closing the Gap § Today’s solutions are successful in accessing data, and making it available to users, however… …today’s solutions are not successful in directly linking information to action, and its corresponding value

i. Analytics – It’s About Closing the Gap INTERNAL CONSUMERS Strategy Definition, Evaluation & Communication EXTERNAL CONSUMERS Perf. Framework Regulatory Executive Strategic Planning Account. Contracts Management Processes Management Operational Planning Operational Performance Monitoring Client Service Analytics (CRM) Financial Analytics HR Analytics “Supply Chain” Analytics OGDs, Partners Performance Improvement Tactics Clients Vendors COMMUNICATION COLLABORATION Feedback

• • Integrated Performance Management Solutions (IPM) Advanced Analytics Integrated Data & Information Solutions (IDIS) Enterprise Info Quality Management Data Transformation & Integration Data Modeling Database Management ODS, Data Warehouse, Data Mart Solutions Information Delivery Solutions ERP/Packaged Solutions Vendor Evaluation • PMO Design • Governance Design & Implementation • Benefits Planning & Realization Program Management/ Office (PMO) Vision, Integrated Roadmap & Blueprints (VIRB) • Vision & POV Development • Capability Assessment • Business case/value proposition • Integration Roadmap • Process Blueprint • Organizational Blueprint • Technical Blueprint • Performance Measurement & Balanced Scorecard Solutions • Integrated Planning, Forecasting & Budgeting • Business Performance Management • Process Measurement & Control • • Strategic Analytics Financial Analytics Customer Analytics Supply Chain Analytics • HR Analytics • IT Analytics

A Public Sector Context § The realm of possibility – i. Analytics demonstration (U. S. federal department example) – Note – intention is to do this demo on line (screen shots are only a fall back)

A Provincial Case Study – Situation The Way We Were Approach and Solution § Lots of paper; no information § Variety of applications and reporting tools with limited skill sets · Desire to provide tools to enable financial accountability and: · Provide good (i. e. correct) useful information and a means of delivering it to enable managers to pinpoint problems · Enable managers to get information without going through IT shop § Built a ‘Proof of Concept’ generic template including a Oracle Fin’ls data mart, ETLs, data cubes, and reports for GL and Payables – IBM provided data, database, analysis experience, and methodologies for rapid deployment using Oracle Financials – Cognos provided tools and DW expertise § Template customized with BCFC data § Iterative demonstration/tailoring cycles to BCFC Users § Application into production

A Provincial Case Study Key Success Factors § Executive level and business buy in secured through use of prototypes and demonstrations § Tight scope control § Involvement of trained BC Ferries staff – Project Manager, User Group Developers, Testers § Solid / expandable technical infrastructure

The Federal Agenda – Modern Comptrollership and Results-Based Management § Results for Canadians grounds performance measurement in: – shift of focus from activities/outputs to outcomes/results – clear, concise reporting of achievements – strong internal and external accountabilities – using performance information to take action § Modern Comptrollership underpinnings: – Integrated performance information – Sound approach to risk management – Appropriate control systems – Ethical practices and values

Key Business Drivers Mission § Increasingly, corporate plans reflect top-down, outcome-based strategic Strategic Goals performance management frameworks but… Strategic – dots aren’t always connected Priorities – frameworks have not yet cascaded down § Management systems are generally not aligned – Lack of integrated financial and non-financial data Strategic Objectives – Everyone is struggling with data – availability, timeliness, integrity § Lack of “corporate” data architecture and metadata strategy § Getting data out of the ERPs is difficult and requires considerable “transformation” – Point solutions are being implemented to provide short term relief § Departments are procuring tools to solve performance (particularly financial) reporting challenges

Lessons Learned: To succeed, you’ll need… § Committed Leadership (at all levels) – Active involvement (not just verbal support) – Focal points (if everyone owns it… no one owns it) – Buy-in to goals and ways of way of measuring success – Accountability contracts aligned with performance targets § Trained Staff (especially Program Managers) – Understand concept of performance/results-based management – Primary “users” are actively engaged and understand where they fit within the framework § Incentives to Use Performance Information – From top leadership down to front line employee – Measures make sense to staff throughout the organization linking what employee does day-to-day with organizational goals

Lessons Learned: The biggest challenge is balancing speed and completeness COMPLETE Range of Solutions POINT SOLUTIONS BUSINESS FOCUS PROGRAM/POLICY FOCUS · Top-down, integrated Performance Management Framework · (One-off) RMAF · Chart of Accounts Design · Systems Strategy · etc. IDEAL SOLUTION · Develop long-term roadmap · New Reporting Tools · (Enterprise) Data Warehouse · Deliver incrementally with quick wins DISADVANTAGES: · Slow and expensive · Strong chance that changes will never occur TECHNOLOGY FOCUS · Technology-enabled · Address data quality · Change some processes · Continuous improvement DISADVANTAGES: · Eliminates some symptoms but not root cause · Faster processing of flawed data · Won’t produce insight – long term vision

Questions and Answers ?