lectura para casos de estudio

1. Public Sector Analytics
Optimizing Resource Usage with Data-Driven Decisions
May 2011
Michael Lock

2. May, 2011
Public Sector Analytics: Optimizing
Resource Usage with Data-Driven Decisions
Organizations in the public sector - many of which either primarily or Sector Insight
exclusively beholden to a pre-determined annual budget - will always have a
Aberdeen’s Sector Insights
pressing need for operational visibility and a framework to support smarter provide strategic perspective
allocation of precious resources. Aberdeen's May 2010 examination of this and analysis of primary
topic, Business Intelligence in the Public Sector: The Value of Efficient Resource research results by industry,
Utilization, revealed that the top pressure driving analytical investment in the market segment, or geography
public sector was the need for better visibility into key operational
processes. This improved visibility, however, is not the only piece of the For the purpose of clarification,
this document defines the
puzzle when it comes to achieving performance in the public sector. The
public sector as encompassing
research demonstrates that superior decision support using business the following three
analytics is predicated on data management efficiency, the application of the subcategories:
right business knowledge to that data, and the timely delivery of relevant
insight-based analysis. √ Government (Federal, State,
Local) Organizations
This Aberdeen Sector Insight draws from three discrete data sets to
examine the impact of business analytics within the public sector. The √ Educational Institutions
research shows that while these organizations typically have a mature and √ Public Utilities
largely effective strategy for back-end data management, many are not
exploiting the operational visibility and analytical potential of front-end user
facing Business Intelligence (BI) tools and strategies.
Business Context
While the economy continues its slow but steady ascent from the doldrums Recommended Actions
of early 2009, with many companies shifting back to a growth strategy, the Strategic recommendations for
public sector has maintained its laser-focus on cost. Data from the public sector organizations
Aberdeen Quarterly Business Review survey shows that cost reduction is, looking to develop a deeper
by far, the top business goal for public sector organizations (Figure 1). and more effective strategy for
business analytics:
Figure 1: Top Business Goals for 2011 √ Collect and incorporate end-
user analytical needs
Cost Reduction 58%
27% √ Develop programs to coach
Improve Public Image / Brand Value 41% / train / develop analytical
27%
40%
talent in-house
Sustain Business through Downturn
21%
19% √ Implement automated alert
Organic Revenue Growth 47% reporting capabilities for
real-time visibility into
0% 20% 40% 60%
crucial changes
Public Sector All Other Industries
Percentage of Respondents, n = 1,663 √ Evaluate in-memory
technology for operational
Source: Aberdeen Group, January 2011 decision support
This document is the result of primary research performed by Aberdeen Group. Aberdeen Group's methodologies provide for objective fact-based research and
represent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc.
and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc.

3. Public Sector Analytics: Optimizing Resource Usage with Data-Driven
Decisions
Page 2
In order to address the need for better cost controls, public sector Definition of "Top Performers"
organizations largely rely on their own internal processes, but increasingly
Between October and
these organizations are turning to technology to help identify and act upon November of 2010, Aberdeen
cost-cutting opportunities. Survey respondents were asked to prioritize conducted a survey of 1,185
which of the major software technology platforms had the most positive organizations to gain an
impact on business performance. The data shows that BI / analytical understanding of the business
technology is at the top of that list for public sector organizations (Figure 2). impact of data management and
information quality. Within that
Figure 2: Software Platforms with Most Impact on Performance survey, 75 organizations
identified themselves as public
sector organizations
Business Intelligence (BI) 51% (government, education, public
Governance, Risk, Compliance (GRC) 38% utility).
Enterprise Resource Planning (ERP) 36% In order to generate an
understanding of performance
Customer Relationship Mgmt. (CRM) 35%
differentiation, Aberdeen
Enterprise Performance Mgmt. (EPM) 27% Public Sector … measured all public sector
respondents across three key
15% 25% 35% 45% 55% performance indicators:
Percentage of Respondents, n = 120 √ Frequency of self-service
Source: Aberdeen Group, January 2011 access to critical data
Aberdeen defines the spectrum of BI, or business analytics, to include three √ Frequency of on-time
availability of information
main buckets of activity: data collection; information assembly; and insight
delivery. In order to extract the most value from an analytical strategy, √ Rate of compliance with
companies must judiciously apply resources to gather the most relevant mandated regulatory
data for their organization, ensure that the data is clean and usable, apply reporting
the right business framework to that information in order to create tangible Respondents were then given a
insight, and then distribute that insight to key decision makers in a timely score based on their self-
way. The fact that public sector organizations rate BI as having the most reported performance above.
positive impact on business performance certainly implies that they The following categories were
understand and believe in the value of analytical visibility and how it can created based on those scores:
affect their organization.
√ Top performers scored
above the 67th percentile
Benchmarking Top Performers in the Public Sector (top 1/3 of all public sector
Efficient business analytics can substantially improve operational visibility for organizations)
public sector organizations and help them execute on their mission of cost √ All others scored at or
reduction,. In that sense, the need for an unimpeded flow of timely and below the 67th percentile
usable information is just as strong in the public sector as it is in other (bottom 2/3 of all public
industries. Measuring performance based largely on efficiency of information sector organizations)
management, Aberdeen used three performance metrics (Between October
and November of 2010, Aberdeen conducted a survey of 1,185
organizations to gain an understanding of the business impact of data
management and information quality) to distinguish top-performing public
sector organizations from all others:
• Self-service data access is measured as a weighted average
percentage of the time that users can access critical data in a self-
service way, without relying on support from the IT group.
© 2011 Aberdeen Group. Telephone: 617 854 5200
www.aberdeen.com Fax: 617 723 7897

4. Public Sector Analytics: Optimizing Resource Usage with Data-Driven
Decisions
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• On -time information delivery is measured as a weighted Fast Facts
average percentage of the time that key decision-supporting
Top three pressures driving
information is available on-time or within the pre-defined "decision data quality initiatives in the
window." public sector*:
• Efficiency of compliance is measured as a weighted average rate √ Inefficient operational
of compliance to internally or externally mandated regulatory processes - 41%
reporting.
√ Need to move to a culture
Figure 3 shows the extent to which top-performing public sector of information-driven
organizations have outstripped their peers across the metrics listed above. decision making - 33%
√ Information is underutilized
Figure 3: Top Performance in the Public Sector Defined
due to lack of
trust/confidence - 24%
100% 95%
84% * Percentage of public sector
Average Percentage
81%
80% respondents
68%
62%
60% 54%
40%
Percentage of Critical Percentage of Rate of Compliance
Data Accessible without Information Available with Mandated
Relying on IT On-Time Regulatory Reporting
Top Public Sector Performers (scored in top 1/3 of respondents)
All Other Public Sector (Scored in Bottom 2/3 of Respondents) n = 75
Source: Aberdeen Group, October 2010
These three metrics help us form an understanding of how top performers "We have a very rigid reporting
in the public sector create a strong foundation of information to support structure and are measured
quicker and more informed decisions. First, relying less on IT to access against 15 different areas of
critical data not only helps ensure that the user is interacting with data management. Our data and our
more relevant to his or her job role, but also frees up valuable IT resources numbers are constantly
to focus on more mission-critical data infrastructure issues. Second, the challenged by those who
ability to find that data within an advantageous time frame helps promote dispense budget to us, so
faster generation of business insight. And third, facilitating cleaner data that cleanliness and accuracy is of
the utmost importance.”
complies with internal policies or external regulations helps build trust in
the data and reduces wasted time and effort on the back-end when it comes ~ Director, Office of
to restating or recreating reports. Top performers in the public sector Performance Management
recognize the value of building a more robust and reliable flow of Department of Justice
information in their organizations.
Characteristics of a Top Performer
The ability to achieve the information efficiency of a top performer is
predicated on two main things. First, organizations must have a high degree
of organizational maturity when it comes to their internal capabilities. Top
performers are more likely to have the right processes in place, leverage the
appropriate skill sets, share data and knowledge efficiently, and continuously
measure the things that truly drive their businesses. The research shows
© 2011 Aberdeen Group. Telephone: 617 854 5200
www.aberdeen.com Fax: 617 723 7897

5. Public Sector Analytics: Optimizing Resource Usage with Data-Driven
Decisions
Page 4
that top performers in the public sector are more likely to rely on these
capabilities as the foundation of their information strategy (Figure 4).
Figure 4: Capabilities Supporting Information Efficiency
Fast Facts
60% 60% 56%
Percentage of Respondents
60% √ 41% of public sector
48%
40% 38% organizations saw a net
21% 24% 22% decline in headcount over
20%
the course of 2010
0%
Cleansing/quality Available info is Use of “quality High-demand √ 42% of public sector
methods applied pertinent to my information” is information is organizations saw a net
to data sources job role mandated from prioritized for decline in overall budget
continuously executive levels end-user access over the course of 2010
Top Public Sector Performers (scored in top 1/3 of respondents)
All Other Public Sector (Scored in Bottom 2/3 of Respondents) n = 75
Source: Aberdeen Group, October 2010
The research shows that top performers are making data quality a strategic “While we were concerned
priority. Between the application of data cleansing and quality assurance with the regulatory fines
processes on a continuous basis, and the executive-level support / mandates associated with violating
for the use of higher quality information, public sector organizations are privacy rules, it was the impact
actively making efforts to increase the usability and overall value of their to the organization’s
enterprise data. Additionally, from the end-users' perspective top reputation that was our
primary concern around data
performers are taking strides not only to make information more
quality and regulatory
consumable and relevant to a particular job role, but they are also more reporting.”
likely to put policies in place to prioritize how and when the end-user
community can access information that is in high demand. ~CIO
The second piece of the puzzle involves the appropriate usage of technology U.S. Public Educational
to enable better information management. Top performers in the public Institution
sector are leveraging a variety of tools at a greater rate than their
underperforming counterparts (Figure 5).
Figure 5: Enhancing Data with the Right Technologies
Data Warehouse Software 65%
58%
Data Integration / ETL 60%
27%
Data Cleansing / Hygiene 53%
27%
Data Enrichment / Append / Matching 47%
30%
5% 25% 45% 65%
Top Public Sector Performers
All Other Public Sector
Percentage of Respondents, n = 75
Source: Aberdeen Group, October 2010
© 2011 Aberdeen Group. Telephone: 617 854 5200
www.aberdeen.com Fax: 617 723 7897

6. Public Sector Analytics: Optimizing Resource Usage with Data-Driven
Decisions
Page 5
The breadth of technology infrastructure is readily apparent when
comparing top-performing public sector organizations to all others. The first
step is to gather, organize, and store enterprise information - most
organizations in the public sector, regardless of performance level, are
relying on data warehouse software to accomplish this. Given the increase
in both the volume and complexity of enterprise data in today's business
environment, the ability to pull data from a variety of disparate data sources
comes at a premium. Top performers leverage data integration / Extract,
Transform, and Load (ETL) technology help bring in more data from these
disparate sources. Lastly, once the data has been captured and integrated,
the next step is to increase the value of that data through cleansing and
enrichment techniques. Through the judicious use of technology, top
performers are more likely to capture, integrate, and improve the overall
usability and value of their critical enterprise information.
Data to Decision - The Value of Business Analytics
While efficiency of information management is a key underpinning of an Best-in-Class Definition
analytical strategy, the name of the game in the public sector is cost This section is largely based
reduction and better allocation of precious resources. Best-in-Class on data taken from the August
2010 benchmark report,
companies, across a horizontal assortment of industries, have been
Operational Intelligence: Boosting
successful in leveraging information management in conjunction with the Performance with "Right-Time"
right analytical methodologies and technologies in order to ask better Business Insight.
questions of the data, generate better business insight, and ultimately Best-in-Class performance
achieve improved operational performance as a result. Aberdeen's August from this benchmark report is
2010 benchmark report on Operational Intelligence demonstrates significant defined as follows:
opportunity for public sector organizations to leverage BI tools and
√ 93% of information is
strategies to create Best-in-Class operational efficiency (Figure 6).
available on-time, within
"decision window"
Figure 6: Cost and Cash - Key Operational Metrics for BI
√ 17% year over year increase
0% in financial operating
Average Y/Y Change
22% 25%
Average Y/Y Change
-5% 20% performance
-5% 15%
-10% -7%
7% 9% 10% √ 29% year over year increase
5% in sales pipeline performance
-15% -13% 0%
Total Operating Cost √ 94% customer satisfaction
Cash Generated from
(Y/Y ∆) Operations (Y/Y ∆) rate
Public Sector
Avg. Performers (All Industries)
Best-in-Class (All Industries) n = 269
Source: Aberdeen Group, August 2010
Given the difference in business models between the typical public sector
organization and companies in the private domain, it is difficult to find a true
"apples-to-apples" performance comparison. However, several of the core
elements of any organization hold true across the public and private worlds.
First, as we saw in Figure 1, public sector organizations are, by far, most
concerned with cost management. The ability to drive operational efficiency
© 2011 Aberdeen Group. Telephone: 617 854 5200
www.aberdeen.com Fax: 617 723 7897

7. Public Sector Analytics: Optimizing Resource Usage with Data-Driven
Decisions
Page 6
is largely predicated on the identification and reduction, or elimination of Fast Facts
superfluous cost. Using analytical methodologies, particularly on a day-to-
√ Best-in-Class companies are:
day operational or transactional basis, can help pinpoint process
1.9-times more likely than all
inefficiencies, discover new metrics that better dictate performance, or other companies to use in-
perform modeling scenarios to understand the business impact of cost- memory analytics
cutting measures. Best-in-Class companies are leveraging BI to help identify
and act on opportunities for double-digit cost reductions.
Drilling further into the concept of operational efficiency, public sector
organizations have a particularly strong focus on resource allocation, a key
underpinning of which would be cash management. The private sector
continually advocates the notion that "cash is king". While the stakeholders
may be different, the implications of efficient cash management are just as
powerful in the public sector. Instead of concerning themselves with profit
growth and the value of shareholders' equity, public sector organizations,
instead, focus their efforts on resource allocation. Since the anatomy of a
typical statement of cash flows includes operating, investing, and financing
activities, an increase in operating cash flow opens the door for investment
in other areas of the business. As a hypothetical example, a state
government, through proactive analysis of historical and operational data on
spending, supplier activity, traffic fluctuations, even weather patterns, could
leverage BI to more effectively manage snow removal activity, bringing them
under budget for the year. These types of advantageous changes in working
capital, and therefore operating cash flow, offer the ability to reallocate that
money to other areas of the organization such as investments in education,
technology, and / or job creation.
As with the framework discussed above, Best-in-Class companies again rely
on a variety of organizational capabilities and appropriate technologies in
order to support the performance improvements depicted above. A small
sample of these aspects of a Best-in-Class strategy for operational
intelligence is listed in Figure 7.
Figure 7: Best-in-Class are Organizationally Mature
Capabilities Technology Enablers
65% 64% 58% 62% 56%
Percentage of Respondents
45% 46% 42% 46%
45%
27% 22% 23% 27%
25%
5%
Real or near real- Executive level Operational BI Dashboard
time tracking of advocate for (real or near real- visualization of
operational analytical time reporting) operational
metrics methodology platform metrics
Public Sector
Average Performers (All Industries)
Best-in-Class (All Industries) n = 269
Source: Aberdeen Group, August 2010
© 2011 Aberdeen Group. Telephone: 617 854 5200
www.aberdeen.com Fax: 617 723 7897

8. Public Sector Analytics: Optimizing Resource Usage with Data-Driven
Decisions
Page 7
The previous section discussed how top performers in the public sector are
more likely to have executive-level mandates for the use of quality
information. Best-in-Class companies shown above are more likely to take it
a step further and have an executive-level advocate or champion for the use
of analytical methodology and data-driven decisions. The Best-in-Class are
also more likely to measure their most crucial operational or transactional
business metrics in real-time or near-real-time. From a technology
perspective, the Best-in-Class are also more likely to deliver user-friendly
front-end tools for better decision support. Operational BI tools enable the
daily or real-time analysis of transactional data in order to support quicker
decisions that have an immediate effect on the business. From a visual
perspective, operational dashboards provide an intuitive representation of
the key metrics that drive the business. Best-in-Class companies are more
likely than public sector organizations to have these key aspects of
organizational maturity and technology enablement.
Key Takeaways
Developing an efficient strategy for business analytics is just as heavily
dependent upon the right people and processes as it is on the technology.
Generally speaking, the back-end data management activities - data
collection, integration, cleansing, enrichment, etc. - consume the most
resources in terms of time and money. The good news for public sector
organizations is that many of them (some by necessity, others by maturity)
have already created an efficient flow of information from a variety of
complex and disparate data sources into the hands of the people that need
it most. In an effort to develop a more complete analytical strategy and
generate better operational performance improvements, public sector
organizations should investigate ways of providing deeper and more intuitive
front-end analytical capability to key decision makers. Based on Aberdeen's
research on Operational Intelligence, public sector organizations should
consider the following recommended actions:
• Collect and incorporate end-user analytical needs. All too
often analytical projects either fall flat, or fail to reach significant
adoption because of a lack of collaboration between the users of
the tool and the implementers of the tool. When the business users
are told what they need rather than asked what they need, analytical
deployments become problematic and sometimes languish in under-
utilization. Best-in-Class companies are 3.1-times more likely than
Laggards to have a process in place to incorporate end-user needs.
• Develop programs to coach / train / develop analytical
talent in-house. Aberdeen research continually reveals that Best-
in-Class companies focus on nurturing analytical talent within their
own walls. According to the research, only 18% of Industry Average
companies are taking steps to coach, train, or develop this talent in-
house, a deficiency that is likely holding back their BI culture, and
not allowing for their most curious and analytically-inclined
employees to shine through. By developing programs to develop
© 2011 Aberdeen Group. Telephone: 617 854 5200
www.aberdeen.com Fax: 617 723 7897

9. Public Sector Analytics: Optimizing Resource Usage with Data-Driven
Decisions
Page 8
these skills in-house, Industry Average companies will be able to
awaken the operational intelligence, currently lying dormant in a
number of employees, allowing for better and faster operational
insight to pervade the organization.
• Implement automated alert reporting capabilities. An
important technology feature of an analytical platform or other
tactical decision-support system is the ability to automatically alert
decision makers when a key state change occurs (i.e., a sudden drop
in manufacturing output, a change in supplier lead time, or a marked
change in measurable customer sentiment). Our research shows
that only 21% of Industry Average companies have this capability.
Leveraging automated alert technology will reduce risk for public
sector organizations, enable better anticipation of operational
fluctuations, and allow for faster reaction to unanticipated changes.
• Evaluate in-memory technology for operational decision
support. The past few years of business informatics has been
marked primarily by an increase in volume and complexity of
enterprise information and an increasing urgency for faster access
to that very information. Technologies like in-memory analytics that
facilitate a linkage between "big data" and timely operational
decisions, are growing in prevalence. Recent research shows that
Best-in-Class companies are more than twice as likely as all other
companies to leverage in-memory analytics.
For more information on this or other research topics, please visit
www.aberdeen.com.
Related Research
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Performance Using BI in the C-Suite; Analytical Engine with High-Octane
February 2011 Information; December 2010
Business Intelligence in the Public Sector: Operational Intelligence: Boosting
The Value of Efficient Resource Performance with "Right-Time" Insight;
Utilization; May 2010 August 2010
Author: Michael Lock, Senior Research Analyst, Business Intelligence
(michael.lock@aberdeen.com)
For more than two decades, Aberdeen's research has been helping corporations worldwide become Best-in-Class.
Having benchmarked the performance of more than 644,000 companies, Aberdeen is uniquely positioned to provide
organizations with the facts that matter — the facts that enable companies to get ahead and drive results. That's why
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(800) 456-9748 or go to http://www.harte-hanks.com.
This document is the result of primary research performed by Aberdeen Group. Aberdeen Group's methodologies
provide for objective fact-based research and represent the best analysis available at the time of publication. Unless
otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc. and may not be
reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by
Aberdeen Group, Inc. (2011a)
© 2011 Aberdeen Group. Telephone: 617 854 5200
www.aberdeen.com Fax: 617 723 7897