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Why BI?

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What if you could see into the future and control what

occurs? Can that be possible given the complexity of

your environment? You have many systems, multiple

databases and a ton of data to work with.

Seeing into the future is possible. Business Intelligence (BI) is the crystal ball! • In its simplest form, BI is like a spreadsheet on steroids, allowing you to :

• Slice and Dice • Perform Predictive Analysis • Define Prescriptive Actions

• With Views based on:

• Current • Future • Multi-dimensional Attributes • Combined with Analytical Analysis

BI considers organization spreadsheet knowledge and adheres to the same look and feel.

BI is one area of the business that is user owned and driven requiring significantly less dependence on your IT organization and resources.

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In a 1958 article, IBM researcher Hans Peter Luhn used the term business intelligence. His definition was based on Webster's dictionary definition of intelligence:

"the ability to apprehend the interrelationships of presented facts in such a way as to guide action towards a desired goal."[1]

BI Components

BI encompasses: Data Warehouse Business Analytics Reporting a lot of Data = Big Data

BI enables informed decisions by bringing together data from multiple sources combined with the analytical abilities to produce informed business decisions supported by multiple dimensional views or scenarios.

So, what are the goals that you want to achieve? Where do you start? Let’s start with areas of the business that will benefit.

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Applying BI to Enterprise Processes

Measurement /Metrics– inform business leaders to the progress towards business goals

Business Intelligence applied to the following purposes drive value based processes. Allowing the measurement and real-time insight to adjust , improve , modify many aspects of your business, including:

Business Intelligence provides alert functionality notifies the users if certain conditions are met.

Example: If a business metric exceeds a pre-defined threshold, the metric will be highlighted in standard reports, and the business analyst may be alerted via email or other system services.

Analytics – driven by quantitative processes to arrive at optimal decisions and to discover business knowledge.

Involves: data mining, process mining, statistical analysis, predictive analytics, predictive modeling, business process modeling, event processing and prescriptive analytics.

Enterprise Reporting – strategic reporting, not operational reporting. Involves data visualization, executive information system and OLAP

Collaboration/Collaboration Platform – internal and external data sources sharing.

Knowledge Management – supports practices to identify, create, represent, distribute, and enable adoption of insights and experiences that are based on business knowledge.

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BI Great Mashups Taking a term first coined in the music industry, Mashups combine multiple sources (rap & rock) and tones (dance & electronica) to create something totally new.

Mashups in BI allows us to integrate data and visualize the results in a coherent and persuasive manner.

When enhanced by technologies like Flash featuring drill-down and drill-through capability, they become some of the most versatile and visually-powerful BI instruments in the decision-maker’s arsenal.

The enablers of BI include:

Data Warehouse Visualization Dashboards

Big Data OLAP KPIs

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Data Warehouse

Let’s start with one of the most obvious components and how BI and Data Warehouse play together. Distinguishing between the concepts of business intelligence and data warehouses, Forrester Research defines BI as:

"Business Intelligence is a set of methodologies, processes, architectures, and technologies that transform raw data into meaningful and useful information used to enable more effective strategic, tactical, and operational insights and decision-making."[2]

BI includes: Data Integration Data Quality Data Warehousing Master-data Management Text-Analytics Content-Analytics and Others….

Forrester sees data warehouse as an enabler of and input to BI based on combined data bases/sources.

From a user’s view BI portals into the data warehouse provides for analytical and reporting capabilities. These views are user specific, refreshed and consolidated.

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Visualization Supports predictive actions based on knowledge and insights driven by analytics that are graphic and easily modified for data changes to project resulting impacts.

Visualization allows you to:

Anticipate React Achieve Greater Success

Attributes are assigned allowing for perspectives not obvious in the data, but striking when visualized

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Dashboards Dashboards are BI’s graphical representation of information to allow users to monitor and adjust, according to changes in priorities, objectives or resources.

Dashboards by User/Function/KPI Specific

User Friendly

Easily Modified by Users

Mobility and Connectivity Important consideration when deploying via :

Tablets Other Handheld Devices

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Big Data

It’s all the rage, Big Data! What does it mean?

Is it BI?

Big Data is based on data growth and the ability to harness that data.

Growth in the following areas: Data Volume Information Management System Specific (ERP, CRM, etc.) Servers Data Management - Internal Data Access - External Virtualization Distribution Replication

Not to fear, BI considerations include predefined: Data Structures User Interfaces Data Management Warehouses

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OLAP OLAP or On Line Analytical Processing supports multidimensional analysis or the analysis of data from different dimensions, often called OLAP cubes. OLAP prioritizes the way data is shown by a given column.

Multidimensional Databases are complex architectures. * With these databases, intersections of relevant data become more apparent and easier to:

Group Summarize Analyze

For example, if you have a table of data about sales, analyze it by:

product type (a dimension) demographic (another dimension) geographic region (another dimension)

For example, OLAP allows an analyst to answer questions like “how many computers have been sold in the US this year?” and “of those sold, how many were sold to people over 60?”

Not to oversimplify the capabilities of OLAP, think of OLAP as a pivot table that also extends beyond the enterprise leveraging other data sources via APIs and overlays like :

• Google Maps - location specific information

Location

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KPIs Remember the dashboard is only as effective as the KPI’s that are tracked and measured.

KPIs should be used to trigger alerts and actions!

Give careful consideration to what and why you are measuring the KPIs selected. Don’t measure too many KPI’s; consider combining multiple KPIs into one.

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With BI you can take the data from those and other systems to: Perform Predictive Analysis Prescription Capabilities Establish KPI Driven Analytics and User Dashboards

BI Deployment There are many touch points to consider when BI solutions are being planned. Consider your other systems ERP, CRM, SCM, etc.

ERP enabled : Integrated Processes Information Flows Across Processes Business Function Level Automation

CRM for Sales Financial Systems Sales Order Planning

Operations And Production Processes, Priorities, and Scheduling. SCM enabled

Automated/Anticipated/Actionable/Information Based Interactive/Actions With

In-bound Suppliers Out-bound Activities To Customers in Your Supply Chain

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BI Product and Services Options/Considerations There are many products to satisfy the capabilities of BI. Don’t be drawn in by any one that claims to provide you the entire package. Understand what you need based on what you want to accomplish and the investments you’ve already made.

As you evaluate your options, consider what you have already invested in systems and how that supports your BI initiative.

There are many reports from analysts with solution comparisons.

Do your homework on the required investment and completeness of the solution.

Look beyond the enterprise.

SaaS may be a viable option for your BI implementation.

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Why BI? Still need to know more. The results speak for themselves. The following chart from Bain & Company shows you…WHY!

Bain & Company’s Insights Analysis

2X more likely to have top-quartile financial performance 5X more likely to make decisions “much faster” than competition 3X more likely to execute decisions as intended 2X more likely to use data very frequently when making decisions

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Summary This journey is one that you’ve been on for a while. The system and supporting technologies that have been deployed to-date have led you to this newest technology. The foundation has been laid and BI will take you far.

BI is a technology that brings together the combined knowledge of your organization based on the systems and databases in place and the foundation that has been laid.

You have made the investments and it’s time to realize those investments.

This should help you get on your way. If you would like to talk about you rBI initiatives, please reach out to me or our team of consultants here at Barry-Wehmiller International. Contact me at Pat.McGrath@B-WI.com. Wishing you a successful project! ;-)

You are in a position to harness the power of BI. The power of knowledge and insight gained, captured and

presented via BI to support decisions based on prescriptive and predictive actions.

Why BI?

Other Sources

• Video http://progressive.uvault.com/2361/2014/corp/Selection-Consultant-short-DEPM.mp4

• Links:

• http://www.forbes.com/sites/louiscolumbus/2014/06/24/roundup-of-analytics-big-data-business-intelligence-forecasts-and-market-estimates-2014/

• Sector Report on Business Intelligence Redwood Capital Report on the Players

• http://searchbusinessanalytics.techtarget.com/feature/Defining-and-using-KPIs-in-a-successful-business-intelligence-system KPIs in BI dashboards

• Big Data: The Organizational Challenge Bain & Company Insights

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References

• 1 H P Luhn (1958). "A Business Intelligence System". IBM Journal 2 (4): 314.doi:10.1147/rd.24.0314.

• 2 Evelson, Boris (21 November 2008). "Topic Overview: Business Intelligence".

• http://www.gartner.com/technology/media-products/newsletters/information_builders/vol3_issue1/gartner.html

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Why BI?

About Barry-Wehmiller International (B-WI)

At Barry-Wehmiller International (B-WI) we are proud of our remarkable journey, a journey we began 20 years ago to become who we are today – a trusted, global, people-centric, ‘Total Solutions’ provider with a rich heritage in manufacturing. We take particular pride in our people-centric culture and values.

We have built a strong foundation, we are here to lend a hand and be a guide to our customers with our specialized consulting, technology, engineering and manufacturing talent. We were there then, we are here now and we will be there with you into the future. Welcome to Barry-Wehmiller International.

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Enterprise Consulting Enterprise Systems

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OFFERINGS ERP Implementation AX-CAD Integration

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Why BI?

About the Author

Patricia McGrath is pleased to represent Barry-Wehmiller International, as Director of Strategic Initiatives.

B-WI provides consulting and services for manufacturing, engineering, ERP solutions, and specialized development and support services.

Pat’s career includes positions with such prestigious companies as IBM and KPMG. While there she focused on strategy, ERP business partners and business consulting, plus having her own company working with others to develop both strategic initiatives and tactical plans.

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