PA Consulting conducted a survey in January 2013 and presented the results and their insights and an "IT Breakfast Club" meeting.

1. How companies initiate, plan and develop
actionable business insight using BI
IT Breakfast Club, 29 January 2013
Christian Riekehr and Anders Rom
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2. Realisation of Business Intelligence
Explore how companies initiate, plan and develop actionable business insight using BI
We looked for insights into…
• The vision: What were drivers for BI, where was it initiated and was it well found in the business?
BI realisation
• The results: To what extent doesSurvey coversto promise? aspects
BI deliver and links three
• The vision What are next steps and what will BI v. 2.0 look like?
The
future: The results The future
In the vision we will examine the We examine if BI delivered on the Looking into the future. What role is
origin of BI. We will look into the key promise stated in the vision BI expected to play. Is it all about
drivers, sponsors and what was the fixing existing BI or are there plans
Does it deliver the expected value for a BI evolution to a version 2.0
expectations for BI
Discuss where things went wrong And given experience, what are the
Furthermore, we will look into what
and why recommendations
was the initial business purpose and
what users was BI supposed to
support
…in order to understand:
• Why so many BI projects fail to deliver on promise
• How to increase the business benefits of BI
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3. The Vision
In the vision we will examine the origin of BI. We will
look into the key drivers, sponsors and what was the
expectations for BI
Furthermore, we will look into what was the initial
business purpose and what users was BI supposed to
support
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4. What were the initial drivers for working with BI?
Key Statements
“Didn‟t begin as BI, but driven by a “Began in the eighties as a technology push, “Budding… an overview of the diesel
need of a controllable and but later evolved to a technology pull.” consumption”
transparent business… sales and
planning of production”
“The main goal is supporting the performance “Growth, increase in customer base,
management process - from Planning to countries [in which we operate]/ business
registration to „follow up activities‟.” areas. [We wanted a] qualified
discussion about performance
“Have worked with data for many years.
“The driver was a need for doing following (financial and non-financial).
It got too fragmented... [This industry]
up…The idea was to collect all operational Management reports with KPIs and the
should have the lowest IT spending…” option of having scorecards.”
data produce knowledge and present it to
the users…”
“Operational reporting. Transparent
data. [We were on] a burning platform
“A need for transparency in the “…We need data for making decisions…
[to become] one company. [We needed
business” target and financial management. [We] used
to go from] a decentralised organisation
many resources to compile data.”
to a centralised organisation.”
Key Finding
The key driver was a need for a centralised and transparent reporting model to support decision making
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5. BI vision and approach
A sound and clear vision for the BI project was The BI project was well-founded in the business
developed at the beginning of the BI project. organisation and in business requirements.
Highly or slightly
Highly or slightly agree
agree Neutral, disagree or
Neutral,
disagree or 45% highly disagree
highly disagree
64% 55%
36%
“It was owned by the CFO”
“It was an IT push and not a business pull”
“The BI project was well founded in the IT “This is not an IT
organisation, but not well founded in the project” “Developed from IT. A data platform
business organization. The business have “IT was the driver…
no business sponsor” was created and from here data was
trouble describing their requirements” delivered to the business”
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6. What was the expected value?
Key Statements
“Optimisation of operations, but it “It is a fragmented picture. For follow up of
wasn‟t until recently that it worked” production it is valuable, while less value for sales” “More transparency in the
business. Not today but the
“… streamlined processes, more rapid responds to long term trends.
what worked and what didn’t. Left behind the old
BW where everybody worked independently. You “Having a tool for
needed to know how to use the data…” managing the entire
company” “A more focused sales effort… and realising
the sales strategy”
“We don’t know”
“Not quantified. We got better
“We made a 1 and 5 year vision. Historically we control, controlling costs. “One point of entrance, one common
had a mass marketing approach, now it is [We wanted to] have better perception of data, data could be used
group based… [Now we have] one common grounds for navigating for other [business] areas. The amount
data set and shared definitions, as well as based on being informed.” of data increases and you are not able
better control of the company.” to handle it manually anymore…”
Key Finding
Optimisation, transparency and shared understanding leading to better management and more informed decisions
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7. Where did BI originate from and what approach was used ?
Bite size Big Bang
Approach 91% 9%
”One big project “It is an incremental “The approach
“Started as big bang… “Big bang. SAP was rolled
with different process… it has was taking BU to
hereafter we got better at out to all organisational
tracks” taken longer than BU. This approach
scoping the projects and now units…”
anticipated” was used for a
they are bite size.”
better success”
Sales Management Other
Origin 45% 27,5% 27,5%
“Sales, then
logistics…” “Sales began, “It originated in the
“Operational “From the management “Originated in
then came need for financial
management perspective and of operations…
procurement…” reporting, hereafter
“Sales was the reporting…” course also from finance planning
it was spread out to
big one…” and IT” operations”
the business…”
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8. The Result
We examine if BI delivered on the promise stated in the
vision
Does it deliver the expected value
Discuss where things went wrong and why
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9. On what level is Business Intelligence used today?
Strategic Tactical Operational
Highly or slightly
Highly or slightly Highly or slightly
agree
agree agree
Neutral, disagree or Neutral,
Neutral,
45% highly disagree
disagree or
disagree or
highly disagree
highly disagree
55% 82% 91% 9%
18%
“…Decisions are made based on facts, not
“… big difference in data and quality, gut-feeling. We use BI for customers
“Consultant work scheduling and sales business units collect information on it‟s segmentation. Sales potential is calculated
management…” own and master data is different… has and used for budgeting including growth
„only‟ 95% of the data in the system targets. Segmentation determines which
which is not enough for making value pack is offered.”
strategic decisions”
“Medium maturity…, using functions for
reporting but with no statistics… only
historic reports… sales forecasting… but “…HR to get an overview of the “Bi is used for “scheduling,
have no predictions” development of the salary” holiday planning…”
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10. Expected value and measurable benefit
What are the measurable benefits? The BI project delivered the outcomes
that were expected.
“… lower license costs. Less time to
assemble information.
“”[We] are better at keeping the
discussion on the right track… drives Neutral, disagree or
the business during a… crises and highly disagree
still produces a positive result. We Highly or slightly
use BI to develop the business.
“Makes things easier for our
agree
64%
customers…and [they] need to do 36%
less… [we] are starting to use
reported data….”
“Some activities have improved which
in turn save costs. BI has made
visible a number of things…”
“Better finance control… improved
understanding in the business units”
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11. The BI project only to a limited extent ran into significant challenges?
Key Statements
The BI project only to a limited extent ran into significant challenges?
“Good executive
“We were not backing. What gets in
mature enough” Neutral, disagree or
the way is that we want
“We had technical issues highly disagree
to do everything at
compiling data… waiting for Highly or slightly
once. “
the business… [they are] still
using Excel.”
agree
64%
“… the tool is still difficult
36%
to use for the end-users…
the real time perspective
is still an issues, and
“… get things to run fast
performance.”
enough. To go from a push to
pull, the business must see “… after development the
the value of BI.” system was to go into operation.
That took a longer than
“IT technical issues, difficulties anticipated”
supporting cubes, and
complications with report
subscription service”
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12. The Future
of BI
Looking into the future. What role is BI expected to
play. Is it all about fixing existing BI or are there plans
for a BI evolution to a version 2.0
And given experience, what are the
recommendations
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13. BI vision and approach
The BI system etc. is a very good foundation for We have a clear vision for the future and a clear road
further development where new possibilities will be map for coming there.
made use of
Highly or slightly
Highly or slightly agree
agree Neutral, disagree or
Neutral,
disagree or 45% highly disagree
highly disagree
82% 55%
18% “It is being
discussed”
“No need (for a vision) any “Is being
“The functionalities are now in… better condition. The addressed at
more. BICC manages the
Data Ware House Concept has been changed to be the moment”
development… BI is part of
more flexible and real-time based.”
the general development”
“There is no roadmap but
“We still need to [use] the tool to “There no written BI strategy, solutions are developed
“A desire for a joint BI based on [vendor name] as
their full potential… there are no but [we] have planes for what
system remains” requests are received for
immediate obstacles” is to be done for e.g. sales”
the business”
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14. The Future of the BI project
What initiatives do you have for enhancing existing BI?
Data Quality Master Data Link to business Architecture
27% 27% 27% 19%
How does BI 2.0 look?
“Simulations of the future and “… Follow up of strategic initiatives and using
predictive analytics” “[We are] looking into big data, marketing
data for reaching other ends. The group will gain
and customers behaviour on the net.
more insight.”
“… no more than we have today. Data from
Facebook, Twitter and online store should be “Data mining is the sales departments “… predictive analytics, data
consolidated, but that will be in the future. We responsibility and will be further mining, and …. Big data.”
are expecting more data from wholesale developed. Strategic forecasting for
customers, [are they buying] at full price or with markets, and producing predictions
a discount…” for specific markets.”
Key Finding
The future of BI is working with big data and data mining in an attempt to produce predictive analytics
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15. Peer recommendations
Top recommendations
8. Think big, start small 5. Make a BI strategy 2. BI is not an IT project, focus
on the business
• “Implement the BI step by step in • “Define the goal you are trying to reach
cooperation to the BU” • “Make a clear Service Level Agreement
with BI” with the BU”
• “Don‟t try everything at once”
• “Ensure that expectations are
• “The small successes are important” managed”
• “Don' t use the Big Bang” 4. Ensure platform flexibility – • “Thorough analysis of the needs”
right tool for right purpose
• “Begin with your customers' needs”
7. Don’t overcomplicate things • “Identify the tool that fits the purpose, it • “Define ownership”
needs to be flexible” • “Local ownership and participation”
• “Less is more”
• “Think about the organisation that is to
use BI”
3. Change management is
6. Focus on the data validity probably 50% of the project
1. Do not let the hype guide your
• “Ensure consistency in data, ideally it‟s • “Hire someone who knows the business decisions
in one place but not at any price “ side to bridge IT and the business”
• “How mature is the organisation?”
• “Match the competences for those who
delivers BI with those that are to receive • “Think about what there is in it for your
it” organisation”
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16. Business Intelligence specialists
For more information, contact:
Christian Riekehr Anders Rom
Partner Management Consultant
Tuborg Boulevard 5 Tuborg Boulevard 5
2900 Hellerup 2900 Hellerup
www.paconsulting.dk www.paconsulting.dk
T: +45 3925 5021 T: +45 3925 5193
M: +45 4178 1301 M: +45 2812 5917
E-mail: christian.riekehr@paconsulting.com E-mail: anders.rom@paconsulting.com
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