BUSINESS INTELLIGENCE Andy Becker Baringin Nababan Cari Lee Mc. Lain Iwan Purwana Shengdong Qiu 1
OVERVIEW: Introduction Case : What is BI? Study: 1. Express Scripts, Inc. / Business Objects 2. Helzberg Diamonds/ Hyperion 3. Apotex / Panorama Conclusion: 1. Advantages 2. Trends 2
INTRODUCTION TO BUSINESS INTELLIGENCE Refers to technologies, applications and practices for the collection, integration, analysis, and presentation of business information. Main purpose is to support better business decision making First mentioned in 1958 - IBM Journal article by Hans Peter Luhn titled “A Business Intelligence System” en. wikipedia. org/wiki/business_intelligence www. research. ibm. com/journal/rd/024/ibmrd 0204 H. pdf H. P. Luhn, “A Business Intelligence System” IBM Journal, October 1958 3
BUSINESS INTELLIGENCE CONCEPT http: //www. bankingtechnology. org/Business_Intelligence. jpg 4
BUSINESS INTELLIGENCE CONCEPT Terms OLAP – On-Line Analytical Processing ERP – Enterprise Resource Planning CRM – Customer Relationship Management SCM – Software Configuration Management http: //www. bankingtechnology. org/Business_Intelligence. jpg 5
INTRODUCTION TO BUSINESS INTELLIGENCE Gartner 2007 study says organizations will spend $992 m worldwide on BI software Research found BI to be #1 priority for IT directors for 2 nd year in a row “ Once people know what factors impact business performance, they can change what they are doing. ERP helps you do things better, but business intelligence helps you do better things. ” Nigel Rayner, Research VP @ Gartner Saran, Cliff, “Business intelligence remains top priority for IT leaders, says Gartner” Computer Weekly, February 6, 2007, News 6
INTRODUCTION TO BUSINESS INTELLIGENCE Oracle-sponsored study in 2006 of 200 UK organizations with 1, 000 or more users IT managers with a BI system implemented to: -Improve business processes -Save costs -Gain competitive advantage -Increase customer satisfaction -Help with risk management Simons, Mike, “Business Intelligence consistency of report data is major problem , say IT bosses” Computer Weekly, April 11, 2006 , News; pg. 6 7
MARKET LEADERS Business Objects- world’s largest BI company, acquired by SAP in late 2007 SAP- German software company Cognos- largest independent BI firm Lohr, Steve, “SAP to Buy Maker of Business Software” The New York Times, October 8, 2007 Strecker-Pullar, Tom, “SAP’s biggest buyout ripples into Wellington” New. Zealand Infotech Weekly, October 15, 2007; Business Section 8
CASE STUDY 1 Supplier: Client: 9
EXPRESS SCRIPTS, INC. Manages pharmacy benefit services for employers and Managed Care Organizations in US and Canada Publicly traded on the Nasdaq with ticker symbol: ESRX Based in St. Louis, MO with a presence in multiple locations throughout the US 10
EXPRESS SCRIPTS, INC. *In Millions of USD • 3 rd largest Pharmacy Benefit Manager in the industry based on Revenue 11
BUSINESS OBJECTS A broad family of tools that allow organizations to connect people, information and data Bought by SAP in October 2007 for $7 billion. SAP is planning on keeping Business Objects as its own separate entity since the brand recognition and stand-alone functionality of the tools are very strong www. businessobjects. com/product/catalog/xi Wailgum, Thomas, “How SAP’s Business Objects Purchase Affects You” CIO, http: //www. cio. com/article/145100, viewed March 24, 2008 12
BUSINESS OBJECTS XI Query, Reporting and Analysis – Tools allowing for standard or ad hoc queries across multiple data sources Information Delivery – Dashboards and Visualization Information Discovery – Search and navigation features allowing data extracts from thousands of internal and external sources (Google Search Appliance) Enterprise Information Management – Software package allowing data to be fully integrated, timely and accurate www. businessobjects. com/product/catalog/xi 13
ESI AND BUSINESS OBJECTS External ESI clients needed timely and customized reports on their member utilization Internal ESI staff were bearing the brunt of these important customized requests In fall 2001, ESI recognized a growing need to transition from a Push strategy to a Pull strategy in providing data needs to our customers ESI worked with Gartner to evaluate several business intelligence options available in the market 14
ESI AND BUSINESS OBJECTS ESI Business Objects Gartner Cognos Business Strategy All three suppliers installed their business intelligence tools on a mock ESI system and they created basic reports that ESI would run on a regular basis. Based on the trials, ESI determined that all three vendors were very similar, however, Business Objects had better ad hoc capabilities 15
ESI AND BUSINESS OBJECTS In 2002, ESI agreed to partner with Business Objects for the initial software purchase price of $1. 2 m (total revenue for B. O. was $107 m in Q 1 -02) Also purchase a premium annual maintenance package which costs 35% of initial software purchase price (standard maintenance is 20% of initial purchase price) Part of the annual maintenance cost is free upgrades once available Licensed on a 16 CPU basis rather than paying for individual licenses Cost/Benefit analysis showed that additional capacity would provide the flexibility that ESI clients were looking for The licenses can only be purchased in CPU increments of four 16
ESI CURRENT USAGE STATS 10, 000 Current Business Objects Users 3, 000 Internal Users 7, 000 External Users • 12, 000 estimated full time employees • 1, 700 estimated clients • Average of one user out of every four employees • Average of 4. 1 users for every client • Are given an unlimited amount of access based on their needs 17
HOW ESI USES BUSINESS OBJECTS Internal Customers Internal and External Customers Seibel Teradata (EDW) Actuate databases Others Bus Objects Universe 18
EXTERNAL CUSTOMERS Have a standard set of 250 reports available to clients each month Clients are able to add or remove based on their individual needs External clients represents a significant portion of total ESI Business Objects usage 19
INTERNAL CUSTOMERS Different roles have different data needs My role is to use the Seibel data for business trends and overall reporting The Seibel application only comprises about 23% of the overall ESI Business Objects workload 20
USING BUSINESS OBJECTS TO DRIVE STRATEGIC DECISIONS 21
BUSINESS OBJECTS AND SEIBEL Web based Seibel CRM tool s er iv t ec es n s bj O Un s l y er Qu s o To t i s Bu e e ss sin c je Ob Data output in Excel format Bu CRM – Customer Relationship Management 22
STEP 1: OPEN A NEW “WEB INTELLIGENCE DOCUMENT rag dd ick an Cl Cl ick an d dr ag 23
STEP 2: CREATE YOUR DATA FIELDS AND APPLY FILTERING CRITERIA Click ag d dr an 24
STEP 3: RUN THE QUERY AND RETURN THE RESULTS 25
STEP 4: EXPORT THE RESULTS INTO MICROSOFT EXCEL 26
STEP 5: CREATE TEMPLATE TO READ THE RAW DATA Use of Pivot tables Link to external data sources Format data to visually illustrate trends 27
STEP 6: DISPLAY DATA THROUGH MICROSOFT EXCEL 28
CASE STUDY 2 Supplier: Client: 29
About Hyperion Was purchased by Oracle in April 2007 for $3. 3 Billion “Oracle's game plan: Use Hyperion's access to the CFO office to sell other applications. CIOs are critical, but CFOs call the shots. And if Oracle has any shot of poaching SAP customers–easier said than done–it needs CFOs on its side. ” – Larry Dignan, Editor in Chief of ZDNet Hyperion products are currently used by 12, 000 customers worldwide and by 91 of the Fortune 100 companies Nine of the top 10 US Retailers use Hyperion software http: //www. oracle. com/hyperion/index. html Dignan, Larry “Oracle’s Real Target With Hyperion: CFOs” ZDNet http: //blogs. zdnet. com/BTL/? p=4579, March 1, 2007, viewed April 6, 2008 30
Leaders in Business Intelligence are using Hyperion Software Tools All four of the following companies were honored by Computerworld in the “Annual Spotlight of Best Practices in Business Intelligence”. Their successes were based on functionalities from their Hyperion software platform. http: //findarticles. com/p/articles/mi_m 0 EIN/is_2006_Sept_28/ai_n 16835769 31
About Hyperion Have been in the Business Intelligence Market for over 20 years Products and Services Individual Performance Management Applications “Integrated applications that support the entire financial management cycle of goal-setting, modeling, planning, monitoring, analysis, and reporting” Hyperion System 9 Brings all of Hyperion’s capabilities into one comprehensive package http: //www. ameinfo. com/69763. html http: //www. oracle. com/appserver/business-intelligence/hyperion-financial-performance-management. html 32
Current Hyperion System 9 Users http: //www. pebbleage. ch/customer_quote. pdf 33
Hyperion System 9 Released in October 2005 Integration of data from multiple sources which is accessible through a unified “Workspace” Four main components: System 9 Applications+ System 9 Business Intelligence System 9 Foundation Services System 9 Data Management Services http: //www. ameinfo. com/69763. html 34
HYPERION SYSTEM 9 http: //analyticsdoneright. blogspot. com/2007/08/hyperion-system-9 -and-oracle-bi-ee-plus. html 35
HELZBERG DIAMONDS AT GLANCE 1915 : Morris Helzberg open first jewelry store Headquartered in Kansas City, MO Revenue (2007) : $500 M Employees ( 2007) : 2, 500 Industries : Jewelry Stores: more than 260 Chairman and CEO : H. Marvin Beasley 36
BUSINESS INTELLIGENCE AT HELZBERG DIAMONDS Have used Hyperion software tools since 1996 Hyperion provides Helzberg Diamonds one system which handles: Financial planning and management Merchandising planning Dashboards and scorecards across all stores regardless of location Combine the use of the Hyperion Essbase system with the “Hyperion Performance Suite” to deliver scorecards to its 265 stores in 37 states. http: //www. oracle. com/customers/snapshots/helzberg-diamonds-case-study. pdf http: //www. b-eye-network. com/view/1299? jsessionid=7 e 70 eb 609 ac 3 ac 1 d 3 bcb 55660433779 b 37
BUSINESS INTELLIGENCE AT HELZBERG DIAMONDS The performance dashboards are available to 2, 500 employees measuring their individual metrics against the key corporate initiatives Allowed for 65% reduction in budget creation time and enables them to maintain that budget throughout the year The Hyperion software tools have helped create a performance driven organization through real-time metrics that measure progress on corporate initiatives http: //www. oracle. com/customers/snapshots/helzberg-diamonds-case-study. pdf 38
CASE STUDY 3 Supplier: Client: 39
APOTEX, INC. The largest Canadian pharmaceutical manufacturer. More than 6, 500 employees Annual sales revenue in excess $1 billion. Apotex, Inc. sells to 115 countries. http: //www. apotex. com/default. asp 40
APOTEX, INC. The Vision for Apotex is “To build one of the world’s most successful pharmaceutical companies in R&D, quality, manufacturing, sales and customer services” To achieve this vision, they would need a strong analytics package allowing them to identify key aspects from their daily operations Identify the products that are being sold Identify the consumer of these products Profitability by product and customer http: //www. apotex. com/default. asp http: //panorama. com/download/apotex-case-study. pdf 41
Panorama Process Flow BW SAP R/3 http: //panorama. com/download/apotex-case-study. pdf CORPORATE WIDE SOLUTION PANORAMA NOVAVIEW 42
Apotex, Inc and Panorama Business Solutions Pre- implementation Report could be generated by product or by customer Reports were static making them ineffective for trend analysis and further drilldown Used Microsoft Excel or Access to manage the data extracted from the SAP R/3 data warehouse Project Finance team partnered with a consultant to develop a BI tool operating on a Microsoft platform Concurrently, IT team was deploying an SAP BW IT team joined with a finance led Panorama venture to develop a “Corporate-Wide Solution” Apotex, Inc is now operating from a Single data source http: //panorama. com/download/apotex-case-study. pdf Result Finance team uses the Panorama dashboards in the annual planning process Departments review their planned revenue and expenditures in an interactive environment Flexibility in data viewing leads to quicker and more informed decision-making 43
PANORAMA NOVAVIEW® ANALYTICS Proactively indentify business trends through customized analytical functions Measure progress toward goals and benchmarks Interactive environment allows for variety of formats based on preference Provide business information to key personnel including employees, customers, suppliers and partners http: //panorama. com/products/nova-view-analytics/key-features. html a personal 44
USER GROUPS Finance team - To understand the trends and performances from both the product and customer perspective. Department heads & their analysts - Using dashboards for customized presentations and drill-down functionality Executive Management - Dashboard has provided them access to data previously available only in Executive Management presentations. They now have ability to customize reports enabling them to be more strategic in their decision-making http: //panorama. com/download/apotex-case-study. pdf 45
http: //panorama. com/download/apotex-case-study. pdf 46
http: //panorama. com/download/apotex-case-study. pdf 47
ADVANTAGE More time is spent on solutions rather than data preparation All users access one single data source allowing for greater accuracy and consistency in reporting User-friendly and customized functionality of the dashboards lead to well informed decision-making http: //panorama. com/download/apotex-case-study. pdf 48
Apotex, Inc Video Case Study http: //panorama. com/company/customers/cas e-studies/Apotex_Case_Study. swf 49
BUSINESS INTELLIGENCE ---- CONCLUSION Case Review Express Scripts, Inc. Helzberg Diamonds Apotex, Inc Industry Pharmacy Jewelry Pharmacy Size (Revenue, 2007) 18, 723 M 500 M >1, 000 M BI software used Business Objects Hyperion Panorama Intelligence focus Reporting, Query and Analysis Dashboards Reporting, Scorecards Dashboards Reporting, Analysis Dashboards Current Users 1/4 employees & 4. 1 users for every client All the stores Financial team Dept. heads Executive mangers Budget Reduced N/A 65% N/A 50
Trends: Information democracy Unstructured into structured data Service – oriented architecture Enterprise-level BI 51
Advantages of BI: Cost reduction Easy access to data Easy analysis Customer satisfaction Cultural change 52
Questions? 53
![REFERENCES: [1] O’Guin, M. & Ogilvie, T. (2004), “The science, not art, of Business](https://present5.com/presentation/d7fc58ee5b7f96e9bf8671ca10639c24/image-54.jpg "REFERENCES: [1] O’Guin, M. & Ogilvie, T. (2004), “The science, not art, of Business")
REFERENCES: [1] O’Guin, M. & Ogilvie, T. (2004), “The science, not art, of Business Intelligence” Competitive Intelligence Review, Vol 12(4), 15 -24 ** [2] Reynolds, Ann Marie (2006). “Real-Time Business Intelligence: Best practices at Continental Airlines” Information Systems Management, 23, 7 -18 ** [3] Walzer, Peter (February 2004), “Why do so many Business Intelligence Initiatives fail” BI Report, http: //www. dmreview. com ** [4] Guptill, B. (January 2006), “User Executives Raise Business Intelligence Prioritization” Saugatuck Technology, pp. 1 -2 [5] Anupam Manglik (Second Quarter 2006), “Increasing BI Adoption: An Enterprise Approach” Business Intelligence Journal, pp. 44 -52 ** [6] Doug Barrett & Neil Barton (Fourth Quarter 2006), “Best Practices in Building a Data Warehouse Quickly” Business Intelligence Journal, pp. 37 -45 ** [7] Aiman Zeid (Third Quarter 2006), “Your BI Company Center: A Blueprint for Successful Deployment”, Business Intelligence Journal, pp. 14 -20 ** [8] Lonnqvist, Antti and Virpi Pirttimaki (Winter 2006), ”The Measurement of Business Intelligence. ” Intelligence Systems Management, pp. 32 -40 ** [9] Mika Hannula, Virpi Pirttimaki (Mar 2003), “Business Intelligence: Empirical Study on top 50 Finnish Companies” Journal of American Academy of Business, Cambridge. Hollywood: Vol. 2, Iss. 2; p. 593 ** [10] www. businessobjects. com/product/catalog/xi, viewed March 24, 2008 [11] Wailgum, Thomas, “How SAP’s Business Objects Purchase Affects You” CIO, http: //www. cio. com/article/145100, viewed March 24, 2008 **Found on ABI-Inform / Scholarly Source 54
![REFERENCES: [22] “Helzberg Diamonds Shines with Hyperion Business Intelligence”, http: //www. b-eyenetwork. com/view/1299? jsessionid=7](https://present5.com/presentation/d7fc58ee5b7f96e9bf8671ca10639c24/image-55.jpg "REFERENCES: [22] “Helzberg Diamonds Shines with Hyperion Business Intelligence”, http: //www. b-eyenetwork. com/view/1299? jsessionid=7")
REFERENCES: [22] “Helzberg Diamonds Shines with Hyperion Business Intelligence”, http: //www. b-eyenetwork. com/view/1299? jsessionid=7 e 70 eb 609 ac 3 ac 1 d 3 bcb 55660433779 b viewed April 6, 2008 [23] http: //www. apotex. com/default. asp viewed April 6, 2008 [24] http: //panorama. com/company/customers/case-studies/Apotex_Case_Study. swf viewed April 6, 2008 [25] http: //panorama. com/products/nova-view-analytics/key-features. html viewed April 6, 2008 [26] Panorama Case Study, “A Pharmaceutical Manufacturer achieves clarity and focus with Panorama Nova-View for SAP” http: //panorama. com/download/apotex-case-study. pdf viewed April 6, 2008 [27] John Ruddy, Top 10 Trends in Business Intelligence, August 2006, http: //www. b-eyenetwork. co. uk/view-articles/3444 viewed April 3, 2008 [28] Bob Margo, staff of the Business Solutions Department, Express Scripts, Inc. interviewed in person by Andy Becker, April 5, 2008 [29] Pemmaraju, Sudhaker, “Converting HR Data into Business Intelligence” Employment Relations Today, Hoboken: Fall 2007, Vol. 34, Iss. 3; pg. 13 ** [30] Hedgebeth, Darius, “Data-Driven Decision Making for the Enterprise: An Overview of Business Intelligence Applications” VINE, Bradford 2007, Vol. 37, Iss. 4; pg. 414 ** [31] Garza, James, “Using Business Intelligence Tools to Conduct Better Margin Analytics: A Hypothetical Case Study”, Journal of Performance Management, Atlanta 2007. Vol. 20, Iss. 3; pg. 47, 12 pages ** [32] Harris, Paul, “Deploying Business Intelligence = Five Steps to Success. ” SOA World Magazine, 2/19/08** **Found on ABI-Inform / Scholarly Source 55
![REFERENCES: [12] http: //en. wikipedia. org/wiki/business_intelligence, viewed March 15, 2008 [13] Pullar-Strecker, Tom, “SAP’s](https://present5.com/presentation/d7fc58ee5b7f96e9bf8671ca10639c24/image-56.jpg "REFERENCES: [12] http: //en. wikipedia. org/wiki/business_intelligence, viewed March 15, 2008 [13] Pullar-Strecker, Tom, “SAP’s")
REFERENCES: [12] http: //en. wikipedia. org/wiki/business_intelligence, viewed March 15, 2008 [13] Pullar-Strecker, Tom, “SAP’s biggest buyout ripples into Wellington” New Zealand Infotech Weekly, October 15, 2007, Business; pg. 9 [14] Lohn, Steve, “SAP to Buy Maker of Business Software” The New York Times, October 8, 2007, Business/Financial Desk; pg. 5 [15] Simons, Mike, “Business Intelligence consistency of report data is major problem , say IT bosses” Computer Weekly, April 11, 2006 , News; pg. 6 [16] Coetzer, Jennigay, “Access to meaningful information” Business Day (South Africa), March 28, 2007, Economy, Business & Finance; pg. 23 [17] Saran, Cliff, “Business intelligence remains top priority for IT leaders, says Gartner” Computer Weekly, February 6, 2007, News [18] H. P. Luhn, “A Business Intelligence System” IBM Journal, October 1958 www. research. ibm. com/journal/rd/024/ibmrd 0204 H. pdf , viewed March 30, 2008; ** [19] Dignan, Larry “Oracle’s Real Target With Hyperion: CFOs” ZDNet http: //blogs. zdnet. com/BTL/? p=4579, March 1, 2007, viewed April 6, 2008 [20] Press Release, “Hyperion unveils Hyperion System 9 - the next generation performance management tool” http: //www. ameinfo. com/69763. html viewed April 6, 2008 [21] Oracle Case Study, “Helzberg Diamonds Enhances Business Intelligence to Capitalize on Growth Opportunities” http: //www. oracle. com/customers/snapshots/helzberg-diamonds-case-study. pdf viewed April 6, 2008 **Found on ABI-Inform / Scholarly Source 56
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