BI 2.

0 Opportunities and
Challenges
- Satya Sachdeva

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 Agenda
Growth of Data
Value of BI (Especially in FSI)
Current State BI Challenges
BI Maturity Model and Trends in BI ( BI 2.0)
Data Journey
Information Quality
MDM
Unstructured Data
Self Service BI
Enabling Business Processes
How to get there?

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 Did you know.
In volume.
15 petabytes
Amount of new information being
generated every day, 8x more than
the information in all U.S. libraries.
In variety.
80%
New data growth that is
unstructured content, generated
largely by email, with increasing
contribution by documents,
images, video and audio.
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200 billion
More than 200 billion emails
are sent every day.
30 billion
By 2010, up to 30 billion RFID
tags will be produced globally,
embedded into products, pass-
ports, buildingseven animals.
3
988 exabytes
Amount of digital information that
will exist in 2010equivalent to a
stack of books from the sun to
Pluto and back.
$5.7 million
For every 1,000 knowledge workers it
employs, a company loses $5.7
million
annually in time wasted reformatting
information between applications.
 BI Value Actionable Information

80/20/30 Rule of Customer

Profitability

80

% Profit Contribution
60
40
20
0
-20
-40
Percentile Ranking of Custom ers

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 Current State - BI in FSI

Regulatory Compliance Solutions are regulation specific

Point Solutions
Compliance in fact every functional area/LOB ends up
creating their own version
Let us get presence on a social network
Competitive Reactive/
Pressures Ad-Hoc because our competitor has.
Even though we publish 1-800-call-us, the
customer is handed off to another department
Seamless
Multiple for a call.
Customer
Handoffs
Experience SAS Analysts spend bulk of their time
integrating, manipulating, and managing data
Customer rather than ANALYZING it.
Time to market
Acquisition/
Inability to predict Every functional area ends up creating their
Retention
version of hierarchies and then wonder why
the results dont match!
Business
Local
Intelligence

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 BI Capabilities Continue to Lag
Behind the Demand!
BI
BI demand
demand Needed
Needed BI BI capabilities
capabilities Companies
Companies continue
continue
continues
continues to
to rise
rise still
still remain
remain elusive
elusive with
with blind
blind spots
spots

Lack
Lack of
of Insight
Insight
11 in
in 33 managers
managers frequently
frequently
make critical decisions
make critical decisions
without
without the the information
information
they
they need
need

Inefficient
Inefficient Access
Access
11 in
in 22 dont
dont have
have access
access to
to
the information across
the information across
their
their organization
organization needed
needed
to do their jobs
to do their jobs

Inability
Inability to
to Predict
Predict
33 in
in 44 business
business leaders
leaders say
say
more
more predictive
predictive
information
information would
would drive
drive
better decisions
better decisions

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 BI Integrating with Core Business in FSI

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 Current State: Most companies have a
some sort of a data warehouse and BI
solution!
Can the Business users get the information they need without jumping
through the hoops?
Can they ask follow-up questions?
Do they need to go through IT every time they have a new query?
Can they trust on the data they are getting?
How quickly can IT enable new business requirements and how much does it
cost?

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 Unfortunately, todays BI just does not cut it

1. BI application does not have access to all relevant data

2. BI application too complex to learn and navigate

3. Too much dependency on IT for new reports and report

enhancements

4. BI application is too inflexible and slow to react to

changes

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 HP BI Maturity Model

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 BI Maturity Model Key Characteristics
STAGE 1
Operation
Running the Business
Reporting and spreadsheets
commonplace
Consumers: Focus on
Business executives, managers
Periodic, quarterly, monthly
Enablement
Ad Hoc Solutions
Early ETL
Early DW solutions
Early OLAP solutions
Manual solutions
Information
Management
Project Activity
Limited project management
discipline
BI skills limited
Small-scale projects, intra-
Strategy & departmental
Program Limited C-level involvement
Managemen
t delivery model to optimize costs
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STAGE 2
Improvement
Measuring and Monitoring the
Business
Enhanced reporting
Basic dashboards; scorecards
Planning, budgeting and
forecasting
Periodic, monthly, weekly
Vertical Solutions
Subject-area ODS
Subject-area DW
Functional/domain data marts
Web-based reporting
ERP BI applications
Project Discipline
Project management as a
recognized skill set
Project-based roles/skills
identified
Business benefits identified
BI Project managers; inter-
departmental
Limited C-level involvement
11
STAGE 3
Alignment
Integrating Performance
Management and Intelligence
Aligned, integrated reporting
Balanced scorecards
Streamlined KPIs
Periodic, right time
Shared Resources
Early MDM
Data quality programs
Data governance
DW consolidation
Web portal delivery
ERP-integrated BI Suites
Program Management and
Governance
Vision and roadmap in place
Governance model adopted
BICC
BI PMO
Business case discipline
BI program managers in place
Risk management in place
Early leverage of three-tier
and resources
C-level endorsement of BI
investments
STAGE 4
Empowerment
Fostering Business Innovation
and People Productivity
Integrated analytics
Role-based intelligence
Consumers: Focus on frontline
workers
Activity monitoring
Transparency
Enterprise Rationalized
Advanced MDM
Robust data quality program
Integration with content
management
BI fully integrated within
enterprise portal environments
Portfolio Management
BI PMO integrated within
broader strategic PMO
Benefits realization
BI portfolio managers
Advanced governance model
Robust, flexible resource
delivery model
C-level sponsorship of BI
portfolio
STAGE 5
Excellence
Creating Strategic Agility and
Differentiation
Differentiation through highly
integrated, synthesized
information and intelligence
Business model flexibility
enabled by information agility
Systemic, dynamic business
modeling for competitive
advantage
Enterprise Services
Integration and synthesis of
unstructured content with
structured
Service-based architecture
Advanced BI fully embedded
within processes, systems,
workflow
Service Management
Value realization
Advanced BI portfolio
management- integral to
strategic imperatives
Shift to BI innovation; BI core
theme in R&D investment
portfolio
BI embraced and leveraged as a
strategic lever across the C-level
suite
 BI 2.0 to Tackle the Challenges

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 Moving from BI 1.0 to BI 2.0

BI 1.0 BI 2.0
Analyze the Past, Monitor Present and Take Action for the Future
Analyze the Past
Guess Present and Future BI, BAM and BPA Infrastructure
BI Layer BI BAM BPA and Human
Workflow

Analytics Reporting

Analyze Data Take Action

Monitor Events Write Back
Active
Data
Data Daily, Hourly, Every minute
Warehouse On-Event, CDC, Real-time
Daily,
Monthly, Yearly Integration Infrastructure
ETL Enterprise Service Bus Process Manager
ETL
Services

Events
Bulk E-LT

Bulk Data
Processing
Bulk Data, Events, Closed Loop
Changed Data Analytics
Capture and Data Oracle M
SAP/R
Oracle SAP/R M Services EBS 3 dg
EBS 3 sg Other People Q CRM
Other People Q CRM Sources
CDC Soft ue
Sources Soft ue ue
ue s
s

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 Data Journey - Stages
Data Hub ODS/EDW Data Marts

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 Information Quality Management (IQM)
Thats been
Its a valid Thats been
Its a valid
value
validly applied
validly applied
value
Information quality
Data quality Data suitable for a
Data type particular purpose, at a
Scale particular point in time
Precision Context sensitive relative
Referential integrity to where it is being
Standard format measured in the
information lifecycle
Measured in relation to
business process

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 Example of Data Quality Scorecard

Example Data Quality Scorecard

Target Score
MDM Scorecard Business Summary
70% 52.6%
This Scorecard reveals a number of data
Category Structure Data Definition Completeness Validity Timeliness
quality issues
Target 75% 75% 75% 75% 50% Data Definition should be completed for all data
Score 75% 35% 47% 68% 38% Data Definition Target of 75% should be re-
evaluated
Name 85% 39% 53% 72% 53% Completeness should be investigated for
Business Party

possible third party data to increase quality

Address 75% 35% 38% 64% 53% Settlement Bank data should be investigated as
Settlement a whole to identify low quality drivers
65% 31% 49% 68% 7%
Bank

Score Legend
within 5% 5% to 10% outside 10%

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 Metadata: The Difference Between
Data and Information

Business metadata must

be readily available
Producer/consumers
Definition of quality
Historical quality metrics
Subject matter experts
Business processes
Data lineages

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 Metadata - It Answers Important
Business Questions
What data or information exists ?
What is its business definition ? Whats the definition of delinquent
account?
What other names has it been called
or is being called ? Where does delinquent account come
from?
How is it inter-related to other
information ? Where is it stored?
Who is using it ? Are there other terms for delinquent?
Where does it show up?
What reports show delinquent accounts?
Why do we need it ?
If we change the definition of delinquent
When was it last updated ? account which reports will be affected?

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 What is MDM?

MDM is the development and

maintenance of the required
organizations, processes, and
tools to ensure that every
master data element
Is captured once, on time,
accurately, completely, correctly
and consistently, thus enabling
master data quality
Is stored in a way that guarantees
integrity and a single place of
reference
Is made available to those who need
it, whenever they need it, both
internally and externally

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 Master Data Management

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 Foundation for Integrated Risk, Compliance
and Customer Experience

Jane is also the

CFO of XYZ
Dealership
XYZ Dealership,
Householded a.k.a ABC
with a HIGH AutoHouse,
value customer is part of a
in CRM corporate
hierarchy

Jane Smith as a That includes

recent but low other customers
value customer for a total of
across CRM, $xM of business
Web and Sales to your company

MDM
MDM needs
needs to
to deliver
deliver the
the complete
complete customer
customer view
view

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 Desired BI Architecture

Monitor/Change
Direction
VISUAL
Senior Executives ALERTSDASHBOARDAnalyze
AGGREGATES
Analysts/Managers
Act
DETAILED DATA
Operational

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 Reality in Most Organizations

Detailed Data

Lots of
people

Integrated/
Analysts Summarized Data

Prepare

Spreadsheets
Executives

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 Self Service Business Intelligence

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 Leveraging Unstructured Data

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 Enabling Business Process
How
How do
do II optimize
optimize services
services and
and operations?
operations? nncc
ee Characteristics of an
What
What decisions
decisions can
can be
be taken
taken now
now from g e
e Intelligent Enterprise:
service
from
e lllliig
service performance?
performance? t e
IInnt Information-based decision making is a
core part of the process
How
How did
did operational
operational Focus on driving change in business
variables
variables impact
impact the hhtt
Value

the
Business Value

igg outcomes through effective leverage of

service
service performance?
performance? si
IInns information
Business

View of information across silos, and

n external entities
ioon
aatti Executive focus on analytical
m
ffoorrm capabilities as a core competency and
IInn
competitive differentiator

What
What service
service cycles
cycles produced
produced
ttaa
DDaa the
the best
best results?
results?

What
What are
are the
the service
service results?
results?

Information Value

The transition to Intelligence requires both Business and IT to place the focus on Right
Information, Right People, Right Time rather than Features, Functions and Service.

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 Next Gen or Pervasive BI

What needs to be How will it be

done? achieved?

Store
Automated Pervasive

Organize Report
Analyze
Unified Without
Present Borders

Forrester Research Inc.

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 Next-gen BI automated

Automated information
discovery
Actionable
Context-aware
Built-in expertise
End-to-end life-cycle
management
Self-learning and adaptive
Forrester Research Inc.

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 Next-gen BI pervasive

Within processes

Within Information
Workplace

Self-service

Dynamically contextualized
presentation

Forrester Research Inc.

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 Next-gen BI unified

Logically unified
sources

Unified data and

content

Persistence agnostic

Historical, current, and

predictive

Forrester Research Inc.

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 Next-gen BI no borders

On-demand, adaptive, self-

learning data models

Advanced data visualization

Guided analysis and search

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Forrester Research Inc.
 Best practices

1. Start by picking a senior C-level (non-IT) executive to

sponsor and champion data governance organization

2. Proceed to create and empower data governance and data

stewardship organization

3. Conduct analysis of the current state as a starting point of

the BI strategy journey

4. Define logical and physical data requirements, which will

serve as the basis and will drive the rest of the BI
architecture

5. Identify all types of users involved in the BI initiative

remember: not all users are created equal
Forrester Research Inc.

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 Best practices continued

6. If appropriate to your organizations culture and

environment, start with an industry standard analytical data
model
7. Make sure that all BI stack components (not just the obvious
ones) are addressed in your BI strategy vision and
architecture
8. Pick a reputable systems integrator partner with extensive BI
strategy and implementation background
9. Make sure that the strategic roadmap is divided into baby
step tasks, with concrete deliverables no more than a few
weeks apart
10. Pick high value, low cost, low complexity targets for the first
few iterations to ensure initial success and momentum
Forrester Research Inc.
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 In Summary

BI/PM spending continues its acceleration and value

Operations and External constituents need to be
involved to achieve Pervasive Performance
Management
Understand where you are and where you want to
be in order to chart your course and consider
baby steps
Its not how much you measure, its how you use the
information that matters. What is the value
provided?
Pragmatism and practicality are paramount

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 BI Next Clear Objectives

Quick identification of the As-Is BI situation

Definition of the To-Be BI environment

Set-up of high level actions to fill the gap between the

As-Is & To-Be BI environment

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 BI Next Scorecard

Strategy
Strategy & objective
Planning & Control
Control Concept
Governance
Enterprise Architecture
Organization
Data management
Information management
Report Availability
Change & acceptance
Control information
Business Architecture
Commitment

Process IT
Service management Information Architecture
Application management Technical Architecture
Infrastructure Analysis & Design
management Security Management
Data quality DWH & BI Management

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 BI Next Maturity Assessment

Level 1: Level 2: Level 3: Level 4: Level 5:

Unaware Tactical Focused Strategic Pervasive

Decision are made Human intervention Business validates Increased Organization able to
on the fly unaware of to manage decisions by sifting productivity due to better predict future
data quality and information flow through historical efficient process events
-source. Basic controls data management System performs BP
Ad-hoc spreadsheet around business BICC in place Business objectives analysis and
reporting to answer processes More centralized drive BI systems provides strategic
current business Decentralized data data management Standards to direction
queries management manage data, Information is trusted
Gaps still exist in
Little or no Workflow Regular reporting of data management processes and across organization
Management historical data and process workflow and used beyond
No data management mapping Singular view of data organization limits
No or little
controls: Information automation Some automation across the Extended Enterprise
anarchy. organization scorecards
IT Exec. in charge
Change
management
process in place

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 Q&A

Satya Sachdeva
VP Business Information Management
Sogeti USA
Tel: 973-978-9797
Email: satya.sachdeva@us.sogeti.com

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