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ADVISORY
Northwestern University MSIT/KPMG DiscussionBusiness Intelligence in Today’s EnvironmentMay 2009
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
1
Introductions
Mitch SiewertSenior ManagerMidwest BI Champion
Mitch is a Senior Manager in KPMG’s Advisory Services practice with over 20 years of extensive functional and technical expertise. Mitch is a CPA and MBA with expertise in the CFO and Controller functions, Governance, Organization Strategic Alignment, Business Intelligence delivery, Statutory, Managerial and Performance Reporting, and Data Integration and Management.
George HaenischSenior ManagerMidwest BI ChampionGeorge has over 14 years of leadership and extensive technical expertise in Business Intelligence and Performance Management. He has also assisted clients with Financial and Operational Planning, Budgeting and Reporting, Data Warehousing, Enterprise Resource Planning, Enterprise Architecture, IT Strategy, Customer Relationship Management, Supply Chain Management, Service Oriented Architecture, and Application Development .
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Agenda
• Today’s Environment• What is Business Intelligence (BI)?• If BI is so important, why is it so hard to get it right?• Critical Success Factors• Leading Practices• KPMG Framework• How do you assess your Organizational BI capabilities?• Vendor Landscape• Case Studies• BI Trends• Questions
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Today’s Environment
1 Source: Accenture study of over 1,000 managers of large companies in the UK and US, January 20072 Source: IBM CFO Study, December 20053 Source: Bill Inmon, “Information Management: Charting the Course: Little White Lies,” DM Review, August 2001 4 Source: R Kaplan and D P Norton, “Creating the Office of Strategy Management”, Harvard Business Review, April 2005
Enterprises today are starved for information to manage their business
• “More than 50% of the information they [Managers] obtain has no value to them” 1
• 69% of all CFOs rank “Measuring/Monitoring Business Performance as their top priority 2
• “Data Warehousing projects have a 70-80% failure rate” 3
• “Organizations often fail to execute their strategy – failure rates may range from 60-90%.” 4
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
4
Gartner Predictions for Business Intelligence (2009)
“The economic crisis will reveal which enterprises have a sound information infrastructure and which do not”*
In 2009o Collaborative decision-making will emerge as a new product category that combines social software
with BI platform capabilities
By 2010
o 20% of organizations will have industry-specific analytic application delivered as software-as-a service
By 2012
o Business Units (not IT) will be held responsible for more than 40% of the total budget for BI projects
o More than 35% of the top 5000 global companies will make uninformed decisions due to underinvestment in information infrastructure and business-user tools.
o 1/3 of analytic applications applied to business processes will be delivered through large-grained application mashups
*Source: L. McKay, “Gartner Gives BI a High 5”, destinationCRM.com, February 2009
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Who is Affected? How are They Affected?
Redundant data, multiple sourcesUser SecurityTechnology vs. Business requirement interpretationToo many controls over dataLack of planning & resources for coordinated BI strategy
CIO
CFOFragmented reporting Compliance (SOX etc.)Limited forecasting capabilitiesTimeliness in ReportingData IntegrityLack of robust analytics Spreadsheet dependencyRedundant data marts Ineffective KPIs
COOLack of insight on operations cost – big ‘hidden factory’Multiple Transaction SystemsLack of intelligent, automated customer support servicesUnable to monitor product landed costNot enough detail, need “drill-down” capabilities
CMOLack of agility in defining & managing marketing plans Lack of robust analyticsLack of customer relationship and intelligence managementWasted communication based on poor information
Critical functions often lack the data they need to make well
informed management decisions
Inadequate performance insightLack of data and information integrityCostly, manual reporting to get comprehensive view Risk of error and loss of economic valueWhat is BI?
CEO
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Multiple Systems Supporting Multiple Functions
Enterprise Resource Planning Instances
Customer Relationship
Management Systems
Billing Systems
Contact Centers Unstructured Data 3rd Party Data
Financial Systems
Other Data Sources
Data is often available, but not integrated (or known)
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Support for Decision Making
Business Intelligence improves decision making and business agility
Adds Business Value and Enhances Agility
Business Intelligence
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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What is Business Intelligence (BI)?
• Today’s Environment• What is Business Intelligence (BI)?• If BI is so important, why is it so hard to get it right?• Critical Success Factors• Leading Practices• KPMG Framework• How do you assess your Organizational BI capabilities?• Vendor Landscape• Case Studies• BI Trends• Questions
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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What is Business Intelligence (BI)?
“Business Intelligence is the capacity to acquire, correlate and transform data into insightful and actionable information through analytics, enabling an organization and its business partners to make better, more timely decisions.”
Business Intelligence (BI) is a business capability.
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Types of Business Intelligence
Strategic BI Tactical BI Operational BIBusiness
FocusAchieve long-term business goals
Manage tactical initiatives to achieve strategic goals
Manage and optimize daily business operations
Primary Users Executives & business analysts
Executives, analysts & LOB leaders
Analysts, LOB managers, operational users & operational processes
Timeframe Months to years Days to weeks to months
Intra-day
Data Historical data Historical data Real-time, low latency & historical data
There are 3 main types of BI: Strategic, Tactical and Operational
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Business Intelligence is More Than an IT Solution
Governance, like BI Competency Centers (BICC), help set BI standards and priorities, evangelize BI plans and capabilities, and train end-users.
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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If BI is So Important, Why is it So Hard to Get it Right?
• Today’s Environment• What is Business Intelligence (BI)?• If BI is so important, why is it so hard to get it right?• Critical Success Factors• Leading Practices• KPMG Framework• How do you assess your Organizational BI capabilities?• Vendor Landscape• Case Studies• BI Trends• Questions
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Where Companies Struggle on BI Projects
Poor Planning, Scope Creep
Resource Constraints, Lack
of Funding
Limited Access to Data
Trying to Do Everything at Once
Data Issues (Data Quality, Standards)
Lack of Sponsorship, Organizational
Politics
Poor Choice of Technology
Inadequate User Involvement,
Adoption
There are a number of reasons that organizations struggle with BI projects
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Critical Success Factors
• Today’s Environment• What is Business Intelligence (BI)?• If BI is so important, why is it so hard to get it right?• Critical Success Factors• Lessons Learned• KPMG Framework• How do you assess your Organizational BI capabilities?• Vendor Landscape• Case Studies• BI Trends• Questions
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
15
Critical Success Factors, continued
Timely InformationDelivery – Internal and External
Governance and Communication/Risk Management
Scalable, Cost-Effective Technical Architecture
Focus on Business Critical Processes
High Quality Data
Clear Linkage between Strategic Planning, Operational Planning,
and Budgeting
We have found the following to be critical success factors in BI/Business Performance Management engagements
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Leading Practices
• Today’s Environment• What is Business Intelligence (BI)?• If BI is so important, why is it so hard to get it right?• Critical Success Factors• Leading Practices• KPMG Framework• How do you assess your Organizational BI capabilities?• Vendor Landscape• Case Studies• BI Trends• Questions
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Leading Practices, continued
• Define your BI vision and roadmap upfront to determine the best overall solution• Adopt an integrated solution (planning, reporting, analytics, scorecards, modeling) that
best supports your performance management and BI process• Avoid the ‘Big Bang’ approach! • Engage the business users during the planning and selection phase• Ensure the solution and data architecture are scalable and flexible• Assessing a software vendor:
– Test Vendor candidates with real business scenarios and data sets– Ensure the vendor uses the best database and data transformation technology to
meet your business requirements
How do you avoid project failure?
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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KPMG BI Framework
• Today’s Environment• What is Business Intelligence (BI)?• If BI is so important, why is it so hard to get it right?• Critical Success Factors• Leading Practices• KPMG Framework• How do you assess your Organizational BI capabilities?• Vendor Landscape• Case Studies• BI Trends• Questions
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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KPMG Framework
In developing a BI vision and roadmap, frameworks help define and communicate the complex nature of BI initiatives.
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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How the Framework is Used
• Establish a starting point for common terms and definitions• Map concepts and initiatives to benchmark maturity• Gather and categorize findings by layer • Enable visioning sessions by focusing on specific framework components• Define roadmap projects to achieve the complete framework
Frameworks can be leveraged to:
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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How Do You Assess Your Organizational BI Capabilities?
• Today’s Environment• What is Business Intelligence (BI)?• If BI is so important, why is it so hard to get it right?• Critical Success Factors• Leading Practices• KPMG Framework• How do you assess your Organizational BI capabilities?• Vendor Landscape• Case Studies• BI Trends• Questions
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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How Do You Assess Your Organizational BI Capabilities?, continued
• Determine which layers in the framework need to be addressed• Conduct surveys and inventories for each layer to determine the current state
– Surveys of key stakeholders provide feedback on current capabilities/proficiencies and the importance of that capability to the future
– Inventories provide information on the systems and resources currently available and utilized in support of BI
• Determine gaps between current state and desired future state
DesignAnalyze ImplementPlan Maintain
An organizations BI capabilities should be assessed in the “Plan” phase of large-scale BI initiatives
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
2323
How Do You Assess Your Organizational BI Capabilities?, continued
Feedback in the surveys and inventories determine where along the BI capabilities spectrum organizations fall
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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How Do You Assess Your Organizational BI Capabilities?: Observations
Organizations with Immature BI Capabilities
Organizations with Mature BI Capabilities
Level of Analysis Provided
Static operational reports provided Analytical services provided
Focus of Analysis Focus on historical trends Focus on optimizing processes
Data Architecture Flexibility
Inflexible data architecture Flexible data architecture
Data ManagementOrganization
Multiple data silos Centralized data management (silos eliminated)
Project Success Rate
Projects fail as a result of poor data quality and overambitious scope
Projects successfully delivered to meet or exceed expectations
Alignment of Expectations
Divergence between expectations and results
BI team anticipates business requirements (proactive)
Organizational View of BI
BI activities seen as a cost center • High costs, small to negative ROI
BI activities seen as strategic• High ROI
Organizational BI maturity can be gauged according to specific criteria
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Vendor Landscape
• Today’s Environment• What is Business Intelligence (BI)?• If BI is so important, why is it so hard to get it right?• Critical Success Factors• Leading Practices• KPMG Framework• How do you assess your Organizational BI capabilities?• Vendor Landscape• Case Studies• BI Trends• Questions
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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BI TechnologyThe State of Enabling Technologies
Major themes that have arisen for BI software over the past 3 years:
Enterprise Scale Platform• Highly scalable to thousands of users• Localization• Enterprise technology interoperability (security,
standards, etc)
Pre-built Models• Industry based models for quick deployments• Functional models for organization specific needs
(i.e. Workforce Management and planning)• External reporting, and financial consolidation
Standards Based Components• XML, XBRL, BPRL, SOAP and SOA
Multi-faceted Applications• Drillable Dashboards, Scorecards, and Ad-hoc
reporting• Single entry points for access to all applications• Role base reporting portals
Technical Complexity• Increasing need for dedicated IT team• Large footprint of computing power• Multiple Complex technologies, and n-tier
architecture
Source Neutrality• Foundational data and metadata integration
platforms• Can retrieve data from any type of store or
unstructured source
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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BI Technology How Has the Vendor Landscape Changed?
$15 B in consolidations over the last 2 years:Market share was dominated in the BPM space by Hyperion, and Cognos. SAP Business Warehouse & BPS/CPS, Business Objects, and Microsoft's Analysis Services were a close second.We have interpreted what has happened:• Application Completeness Play• Toolset Play (blur between pure play and in-depth applications)
Vendor landscape is shrinking as a result of vendor consolidation
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Case Studies
• Today’s Environment• What is Business Intelligence (BI)?• If BI is so important, why is it so hard to get it right?• Critical Success Factors• Leading Practices• KPMG Framework• How do you assess your Organizational BI capabilities?• Vendor Landscape• Case Studies• BI Trends• Questions
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Client Case Studies Pharmaceutical Company (Global Health Sciences Company)
Client Background and ChallengeOur client was in the process of consolidating multiple global ERP platforms down to four regional instances.The key benefit of this initiative was increased business intelligence (BI) capabilities, providing transparency in reporting. In order to achieve this benefit, the client faced numerous challenges:• Lack of a comprehensive strategy for reporting across multiple ERP and other source systems• Lack of alignment between business and IT around enterprise business strategy• Maintenance, support and integration of:
– Multiple disparate Data Warehouses/Marts, and spread marts– Multiple disparate systems and separate reporting environments/strategies– Multiple enterprise application integration tools
• Master data not defined in a centralized fashion or at consistent levels• Inability to drill-down and through to the source data in transaction and operational data stores• Inability to seamlessly integrate supply chain data with financial data
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Evolution of the Strategy
The establishment of the Global Health Sciences Company Global BI Framework and Strategy is the first element in the evolution to the end state
Global Framework
EstablishFoundation
ImplementBI Strategy
ProvideFeedback
Define the FutureIdentify the roadmap:• Assess current
state• Define conceptual
end-state • Define roadmap to
achieve
Prepare for SuccessBuild foundational elements including:• Architecture/tools• Resources/skill sets• Governance and
ownership• Change
Management
Empower UsersThink Big, Act Local• Tactical pilots
driving business results and early success
• On going implementations
EnhanceContinuous Improvement• Capture feedback• Analyze root
causes• Make course
corrections
CommunicateFoster interaction; inform end users of the goals, direction and available functionality of the BI program
Evangelize
Define VisionEstablish the vision:• Establish BI guiding
principles• Provide high-level
direction of BI environment (people, process, technology)
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Executive SummaryGlobal BI Framework
A framework is used to communicate the various components of BI. This Global BI Framework is comprised of 6 layers, spanning business and technical areas.
• Create ubiquitous accessibility to integrated transparent information
• Alignment to Business Strategy• Standardization and simplification of
tools, processes and models• Empowerment of end-users, flexibility,
and easy of use• Plan, Govern, and Evangelize Success• Executive Sponsorship• Global standard template w/flexibility
both regionally and locally
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Global BI FrameworkBusiness Strategy Alignment
Alignment of Business Intelligence to enterprise strategy will drive consistency through the organization.
Business Strategy Alignment
Model 1
Model 2
• BI initiatives will align with IT strategies, Business strategies, and Corporate Goals
• BI initiatives will be evaluated based on their alignment, both in-flight/planned and new initiatives
• ERP Transactional Reporting will be pulled directly from JDE; other reporting will be pulled from BI applications
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Global BI Framework Governance
Governance provides oversight, direction, and accountability to the enterprise, this is facilitated through a Business Intelligence Competency Center (BICC)
• BICC formalizes BI oversight, governance, and prioritization of initiatives
• BICC supports end-users and promotes BI efforts to the organization
• BICC communicates member activity and data governance standards
• BICC to align with ERP governance while leverage existing knowledge
• BICC will have IT and business representation supported through executive sponsorship
• BICC will not centralize all resources
Model 3
Model 4
Governance
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Global BI Framework Performance Mgmt Process and Reporting
Metrics and KPI's gauge strategic and operational performance; Building Blocks will foster data transparency through standard, regional, and local BI applications.
Performance Management process discipline provides aligned metrics for each level of the organization. This defines executive, management, analysis and operational metrics globally, regionally and locally.
• BI Applications ( or building blocks) which are used by all the regions are defined as “standard” BI applications
• Regional and local BI Applications will be defined based on the standard template
• Reconciliation occurs amongst all applications
Model 5
Model 6
Performance Mgmt Process and Reporting
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Global BI FrameworkIntegrated Information Management
Integration Information Management is the process and technology that ensures the data foundation is trusted and traceable to the source.
• A Global BI Data Model will be determined at the global level
• Conformed dimensions transform data into global, regional and local information
• Aligned with the Global IT MDM initiative, the Master Data System feeds regional and global warehouses with ERP and non-ERP Master Data.
• Metadata is centralized into one Metadata Management application, providing both business and technical data references
• Global Metadata is managed at the global level; region specific metadata is managed at the regional level (including in-region local metadata)
Model 9
Model 10
Model 7 Model 8
Integrated Information Mgmt
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Global BI FrameworkBusiness Intelligence Platform
The Business Intelligence Platform provides the right information in the right tool through the right channel.
• Aligns with and utilize the Global Information Platform (GIP)
• Global Health Sciences Company tool usage conforms to Global Health Sciences Company standards
Model 11
Model 12
Business Intelligence Platform
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Global BI FrameworkInfrastructure Infrastructure
Model 13
Model 8
• Global data warehouse contains summary information from regional data warehouses
• Regional Warehouses contain detailed (transactional) level data from regional source systems
• Global and regional warehouses strive for daily data refresh and are in-sync at summary levels.
• The BI Data model is replicated into each regional warehouse
• Within the warehouse(s), data is organized by Subject Areas to support functional areas
Infrastructure delivers trusted, secure, integrated data infrastructure for analysis and decision making.
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Infrastructure(“Data Warehouse Infrastructure”)
Business Intelligence Platform(“Tools”)
Integrated Information Management(“Data”)
Performance Management Processand Reporting (“Applications”)
Governance
Business Strategy Alignment
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Client Case Studies: Global Health Sciences CompanyApproach: Establish BI Framework
Current complexity Future BI State
Alignment of MetricsFew Metrics defined, no alignment
BICCNo Global Governance
Some Regional Governance
Standard Building Blocks / ApplicationsNo Standard Applications
One single data model / MDM (Master Data Mgt)
Specific data models. Some Data Masters but not
for all
Standard tools already defined by GIP (Global Information
Platform)
Cognos understood as the standard, but not used in a
consistent way
4 Regional Data Warehouses1 Summary Global Data
Warehouse
No standards around data warehouse
Leverage
Leverage
Leverage
Complex environment and structure Organized simplified environment
The BI Strategy is based on a framework with 6 layers
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Client Case Studies: Global Health Sciences Company Approach: Create a Future State Vision
The regional template provides a consistent approach across the regions and a structure that can be leveraged in development. Below is the source to decision model for a typical region
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Client Case Studies: Global Health Sciences Company Approach: Create a Roadmap
Argentina
Q1 09 Q3 09 Q4 09 Q2 10Q2 09 Q1 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12
ER
P CanadaAustralia
UCANAPAC
EU
Global Model Spain
Regional Model
LA
Building Blocks Enhancements
DW Enhancements
Data Model Combination
GDWBuild
DW Template
RDW- UCAN Dev
RDW- LA Dev
RDW- APAC Dev
RDW- EU Dev
Foun
datio
n
Global BuildingBlocks Dev
LA - Building Blocks Dev
UCAN –BuildingBlocks Dev.
APAC –BuildingBlocks Dev.
LA Interim Solution
EU -Building Blocks Dev.
BICC initiation
Sta
ndar
diza
tion
Gov
BICC /Data Gov Build out
BI Strategy Evangelization and Integration
RE APAC Interim Solution
Building Blocks Validation
Potential EU Interim Solution
UCAN Interim Solution
Implemen’n Plan
MDM & BI Coordination
BICC /Data Gov Management
BICC Roadshow
A roadmap serves as a guideline for when each element of a BI solution should be implemented
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Client Case Studies Pharmaceutical Company (Global Health Sciences Company International)
Client Outcomes• The end of the project was only the beginning of the journey. The client is now in the
process of implementing the ERP, as well as the BI components.• The BI strategy enabled the client to identify the proper stakeholders, and people
structure to understand how to extract value from the ERP consolidation.• It also enabled the unlocking of key data in the organization and modifying the culture to
become more decision oriented, rather than report focused.• The global nature of the project led to greater collaboration between all regions, and
fostered shared innovation across each region.• The enhanced visibility will be realized some time in 2011, however foundational
components and change agents have already set in.
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Client Case Studies Financial Services (Global Payment Transfer Company International)
Client Background and ChallengesOur client was in the process of implementing a new transaction system, as well as developing and data warehouse and reporting solution. The perceived benefits were standardized and more efficient business processes, improved standard reporting, and the ability to make better business decisions through the use of a global ad-hoc query tool.The challenges facing the client included:• Lack of a comprehensive strategy for reporting across multiple ERP and other source
systems• Highly customized, in process, Oracle implementation• Significant project leadership changes resulting in multiple project restarts• Implementation of a data warehouse and operational data store while simultaneously
implementing a new source system• No data warehouse experience, no experience with governance or change
management techniques• Highly leveraged to outside consultants (60+%)• Void in communication between business stakeholders and IT developers
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Client Case Studies: Global Payment Transfer CompanyApproach: Develop Reporting Change Management and Governance Process
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Client Case Studies: Global Payment Transfer CompanyApproach: Communicate Path to Data Governance Function
Data Steward
Data StewardCouncil (peer group)
SME’s/BA’s
Today12/4/08
Active now
Long-Term
Short –Term
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Client Case Studies: Global Payment Transfer CompanyApproach: Define BI Roles and Responsibilities
ROLE Business Data Users Business Data Stewards DW Reporting Governance Board
(RGB)Executive Sponsors
Primary Activities
Report/Data user, communicate needs/issues
Gatekeeper of the Department; Determine validity of requests, Qualify the need, escalate to RGB if
requirement outside existing DW
Review and prioritize requests/issues. Approve with Enterprise; Communicate changes; Manage Change
Set policy, ensure compliance, serve as
ultimate authority
• Adhere to established reporting and data usage policies
• Communicate reporting and data issues to assigned Data Steward; provide documentation as required
• Communicate business requirements to technical developers and be able to translate technical solutions to the business user community
• Serve as gatekeeper of the department which they represent; determine if user requests have business value and escalate to appropriate governing body as needed
• Identify and support technical resources in their area (data tools like – Report Studio and Query Studio users)
• Prioritize report and data requests within their departments
• Review and approve reports & queries submitted for publication within their departments
• Consistently interact and collaborate with Program Management, technical architects, developers and testing teams
• Assess and communicate impact of namespace changes on their departments
• Communicate upcoming changes to their departments
• Ensure users are compliant with MGI User Security policies and procedures
• Serve on the Data Stewardship Committee• Review access request by user constituency and
approve request, etc.
• Meet regularly to review change requests submitted by Data Stewards
• Prioritize incoming requests based on business need
• Identify if impact analysis needs to be done; assign tasks as needed
• Forward complete requests (following successful impact analysis) to MGI Compliance Council
• Approve or deny requests based on the reporting governance policy defined by Executive Sponsors
• Escalate requests to Executive Sponsors when a consensus cannot be reached or the change conflicts with existing policies
• Communicate request status, impact, and priority to all affected parties in accordance with the reporting communication policy
• Maintain central repository of requests and provide tracking statistics (i.e., total number of requests, number open, number approved, etc.)
• Approve or deny change requests escalated by Data Stewards and Reporting Governance Board
• Define/update enterprise reporting governance and communication policies
• Communicate policy changes to the RGB for impact analysis and communication to the enterprise
Role –Legend(see process flow)
A B C D
Res
pons
ibilit
ies
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Client Case Studies: Global Payment Transfer CompanyApproach: Develop Communication Plan
Timing/Frequency
Audience AudienceCount
(Guess)
Trigger Message Method/ Channel
Frequency Pre-Go Live Post-Go Live
Project Steering Committee
6 RGB Change Management metrics i. Performance Metricsii. Policy Changesiii. Status
Email (groundwork); Consensus work via team meetings
Weekly Regularly-scheduled team meetings (monthly)
n/a
All Stakeholders 25 Scope ChangeChange Management Processes & Procedures
i. Metricsii. Scope Changeii. Change Management Processes &
Meeting Ad-Hoc as required Scope Change n/a
Core Project Team 75 Project Status ReportTask-related detailsMilestonesDependencies
i. Project progressii. Task-related detailsiii. Milestonesiv. Dependencies
Team meetings, task-related meetings; Individual meetings; Task/review-specific email
Ad-Hoc as required Weekly (minimum)
Regularly-scheduled team meetings (daily, weekly, monthly); And as needed
Bi-monthly
DW Partners (Oracle Apps, Jaros, Cognos, legacy apps)
5 Scope changeBusiness process changeData element requestTable structure changesETL changes
i. Scope changeii. Business process changeiii. Data element requestiv. Table structure changesv. ETL changes
Meeting;
Ad-Hoc as required As Required As Required
MGIDW Data Management
10 Project overview & progress i. Project overview & progress Email Ad-Hoc as required With each major milestone or at least every 3 months and with in 3 weeks of go
As Required
MGI – Cognos User Security
5 Project overview & progressProject deliverablesChanges to sensitive field list and data model changes depending on types of ???
i. Project overview & progressii. Project deliverablesiii. Changes to sensitive field list and data model changes depending on types of security implemented
Email Ad-Hoc as required Beginning 3 months before go live, as needed
As Required
MGI IT User Security (Privacy)
2 Project overview & progressCognos user rolesUser access permissions Project deliverable overview
i. Project overview & progressii. Cognos user rolesiii. User access permissions
Email Ad-Hoc as required Within 3 months of go-live and as needed
As Required
IT Service Center/Infrastructure (Help Desk/Network-LAN)
1 Specifics re: impact on workstations (new DLL's, Plug-Ins, etc.)Changes affecting helpdesk
i. Project deliverable overviewii. Specifics re: impact on workstations (new DLL's, Plug-Ins, etc.)iii. Changes affecting help desk Procedures
Email Ad-Hoc as required 3-to-5 weeks before go-live and prior to Query/Report Studio training
As Required
Pr o j ec t
summit
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Client Case Studies: Global Payment Transfer CompanyApproach: Develop Communication Plan, continued
Timing/Frequency
Audience AudienceCount
(Guess)
Trigger Message Method/ Channel
Frequency Pre-Go Live Post-Go Live
MGI Executive Committee 5 Policy presentation for approval i. Policy presentation for approval ESLT meeting Monthly As Required As Required
DW Users 250 Project overview & progressProject deliverablesAny changes visable to
i. Project overview & progressii. Project deliverablesiii. Any changes visible to users
Email Ad-Hoc as required With each major milestone, within three months of go-live, then as needed
As Required
General MGI Brief description with pointers to project page, demo site, “how to” page & ???
i. Brief description with pointers to project page, demo site, “how to” page & contact info
Newsletter Monthly Monthly Quarterly
SOx Advisory Council (Internal Audit)
5 Project overview & progressBusiness overview controlsApplication controlsAutomated controls affected
i. Project overview & progressii. Business process controlsiii. Application controlsiv. Automated controls affected by request (new or change)
Council Meeting;One-on-One meetings, EmailBoard/Council meeting
Ad-Hoc as requiredWeekly (minimum)
With each major change request or scope change
With each major change request
Governing Boards (RGB, ESC, Compliance)
5 Project overview (basic understanding, high level timeline)
i. Project overview (basic understanding, high level timeline)
Board/Council meeting Monthly Within 3 months of go-live, ad-hoc as required
With every change request
Data Steward Council 20 Project overview & progressPolicy design or changeEnterprise level changesEntity level control requirement considerations
i. Project overview & progressii. Policy design or changeiii. Enterprise level changesiv. Entity level control requirement considerations and/or changes
Data Steward Council meeting
Quarterly With each major milestone; Scope change; Enterprise Change Request; Every 3 months (minimum); More often during testing phases
With every change request
NGI
Gove r nance
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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* Note: The timeline above is representative. The actual timeline will be based on the outcome of the current re-planning activities.
Client Case Studies: Global Payment Transfer CompanyApproach: Create a Roadmap
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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Client Case Studies Financial Services (Global Payment Transfer Company)
Client OutcomesThis client is currently re-planning their BI implementation to create a solution that will provide both short- and long-term value.We provided this client with a strong foundation on which to build their BI strategy through the following:• Business requirements database and reports facilitated testing and traceability
between requirements and reporting, as well as enabled search and sort capabilities• Project timelines and risk identification provided project transparency for business
stakeholders• Established a solid knowledge base to support a BI environment
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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BI Trends
• Today’s Environment• What is Business Intelligence (BI)?• If BI is so important, why is it so hard to get it right?• Critical Success Factors• Leading Practices• KPMG Framework• How do you assess your Organizational BI capabilities?• Vendor Landscape• Case Studies• BI Trends• Questions
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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BI Trends,
Data VisualizationDefinition: The communication of information through graphical means. Historically, data visualization was achieved through executive dashboards with graphs and widgets, but it includes any graphic that conveys information.Benefits• Simplifies interpretation of data for
non-technical users• Enables efficient identification of trends
in performance over time• May emphasize points of concern for
management and enable timely responses
Source: Time Magazine
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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BI Trends, continued
Predictive AnalyticsDefinition: The use of business intelligence technologies to make predictions about future events based on current and historical data. Predictive Analytics is forward-looking. Common examples include the credit scoring system and insurance underwriting.Benefits• Enables proactive decisions instead
of only reacting to past events• Enables management to anticipate
negative events and lessen their impact on the business
• Improves effectiveness of marketing campaigns by predicting customer behavior and targeting appropriately
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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BI Trends, continued
Social Media AnalyticsDefinition: The use of business intelligence technologies to identify, track, and participate in web conversations about a particular brand, product or issue, with emphasis on quantifying the trend in each conversation's sentiment and influence.Benefits• Enables tracking and participation in
web conversations about your product or service
• Attempts to quantify brand loyalty and public perception of your product
• Provides timely market research and insight for new product development
Source: Time Magazine
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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BI Trends, continued
• Today’s Environment• What is Business Intelligence (BI)?• If BI is so important, why is it so hard to get it right?• Critical Success Factors• Leading Practices• KPMG Framework• How do you assess your Organizational BI capabilities?• Vendor Landscape• Case Studies• BI Trends• Questions
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
5555
Questions??
Questions
© 2009 KPMG LLP, a U.S. and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative.
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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date itis received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional adviceafter a thorough examination of the particular situation.
Contact
KPMG LLPSuite 1900303 E. WackerChicago, IL 60601
George HaenischSenior Manager, KPMG LLPAdvisory Services
Office (312) 665-2850Cell (630) 240-2130
KPMG
KPMG LLP, a Canadian limited liability partnership.
KPMG LLPSuite 1900303 E. WackerChicago, IL 60601
Mitch SiewertSenior Manager, KPMG LLPAdvisory Services
Office (312) 665-2804Cell (262) 707-8085
KPMG
KPMG LLP, a Canadian limited liability partnership.