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The Role of BI in Your Performance Management
Initiatives
Radoslav Vangelov
Applications Sales Representative
2 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Agenda
• Performance Management Challenges
• Solutions Overview
• Customer Success
• Q&A
3 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
What is performance management ?
• Anywhere in the world people interact with their
environments to produce desired effects
• Performance management includes activities that
ensure that goals are consistently being met in an
effective and efficient manner. Performance
management can focus on the performance of an
organization, a department, employee, or even the
processes to build a product or service, as well as
many other areas.
4 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Enterprise Performance
Management is a Discipline
that Enables Management to:
Link strategies to plans and execution,
Monitor financial and operational results
against goals, and applying analytics to
Drive enterprise-wide performance
improvement.
4
5 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Market Pressures Demand Effective
Performance Management
Today’s Reality: Management
Processes Are Fragmented
• Lack of business alignment
• Low predictability in performance
• Inconsistency in business
decisions
ECONOMIC VALUE ADDED
(EVA)
ANALYZE
PERFORMANCE
GOAL
SETTING
SCORECARDS FINANCIAL
REPORTING
FINANCIAL
MODELING
VARIANCE
ANALYSIS
ROLLING
FORECAST
OPERATIONAL
PLANNING
MONITOR
RESULTS
$ € £ ¥
6 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Management Excellence:
The Next Competitive Edge
Time
Competitive
Advantage
OPERATIONAL EXCELLENCE
MANAGEMENT EXCELLENCE
7 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
• “One-off”, ad-hoc analyses are difficult to re-use
• Scenario modeling is manual and time intensive
• Difficult to link strategy to the real-world facts
Fact: Disconnect Between
Analytics and Action
What Happened? Why Did it Happen?
Take Action Who Does What?
How to Optimize Across Alternatives?
8 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
• Multiple BI tools impact analytical
productivity
• Flawed view of business
performance
• Emergence of shadow BI projects
• Higher costs from fragmented
BI infrastructure
Fact: Expensive Analytic Silos Perceived
as Quick Fix
MARKETING
FINANCE
MANUFACTURING
SALES
9 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Fact: BI Requirements
Continually Evolve
• 50% of analytic requirements changed in the first year
• Difficult to incorporate new or emerging data sources
• Expensive to integrate BI with IT infrastructure
• Development risk is result
50% CHANGE
10 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
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Solutions Overview:
Oracle BI Applications Oracle BI Foundation
11 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Agenda BI Apps
• Business Need for Pre-Built Applications
• Oracle BI Applications overview and
benefits
12 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
SINGLE
ENTERPRISE INFORMATION
MODEL
The New Standard for Enterprise Analytics Oracle’s Integrated Analytic Solution
DETECT
ANALYZE ACT
MODEL
SINGLE
ENTERPRISE INFORMATION
MODEL
Sales
Marketing
Service
Contact Center
Price
Loyalty
Financial Services
Communications
Healthcare
Retail
Financials
HR
Procure & Spend
Projects
Supply Chain
Order Mgt
Logistics
Scorecard
Strategic Planning
Financial Close
Planning & Forecasting
Profitability Management
13 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Business Intelligence Challenges
BUSINESS
• Lack visibility and insight into
performance, processes, and
customers
• Poor alignment of decisions
and actions at all levels with
strategy and goals
• Lack single, consistent view of
information
• Time wasted gathering data to
manage and report
IT
• Backlog of report requests and
need to provide self-service
access to intelligence
• Resource constraints inhibit
ability to broaden BI
deployment to meet demand
• Complex IT environments –
disparate data, applications,
and integration challenges
• Push to reduce costs and
standardize tools
14 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Business Intelligence Drives Increased
Effectiveness in Every Business Function
Service & Contact Center Analytics
Optimize service
processes, reduce
costs, retain and
grow customers
Supply Chain & Procurement Analytics
Optimize spend,
overall supplier
performance, and
inventory levels
…But Few Organizations have Achieved Such Pervasive BI. Why?
HR Analytics
Retain talent,
manage comp
costs, increase
productivity
Sales Analytics
Improve pipeline
visibility, forecast
accuracy and sales
effectiveness
Financial Analytics
Always understand
financial condition
and drivers of cost
and profitability
Marketing Analytics
Optimize campaign
execution, results,
and ROI
15 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Oracle BI Applications Prebuilt Solutions for EBS, PeopleSoft, Siebel, JD Edwards, and
more
Other Data Sources
IVR, ACD, CTI Hyperion MS Excel
Syndicated
Oracle BI Server
Common Enterprise Information Model
Add insight to CRM and
ERP applications
Easy to adapt and extend
Tight integration with OLTP
systems
Works with existing IT
environment
Fast time to value; Low TCO
Over 2,000 customers
ERP Analytics Financials
Human Resources
Procurement & Spend
Supply Chain & Order Mgmt
Projects
CRM Analytics Sales
Service & Contact Center
Marketing
Loyalty
Price
16 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
CRM ANALYTICS ERP ANALYTICS
SALES
• Pipeline Analysis
• Forecast Accuracy
• Up-sell/Cross-sell
• Cycle Times
• Lead Conversion
• Sales Team Effectiveness
MARKETING
• Campaign Effectiveness
• Customer Insight
• Product Propensity
• Market Basket Analysis
• Campaign ROI
SERVICE &
CONTACT CENTER
• Service Effectiveness
• Customer Satisfaction
• Resolution Rates • Service Rep
Efficiency • Service Cost • Service Trends
ORACLE BUSINESS INTELLIGENCE AND OTHER OPERATIONAL AND ANALYTIC SOURCES
SOURCE ADAPTERS:
PRICE
• Price Segments
• Price Waterfall Analysis
• Deal Life Cycle
• Deal Desk Analysis
• Product Pricing Performance
LOYALTY
• Member Demographics
• Program Revenue
• Membership Trends
• Promotion Effectiveness
• Points Analysis
FINANCIALS
• General Ledger
• Accounts Receivable
• Accounts Payable
• Cash Flow
• Profitability
• Expense Management
PROCUREMENT &
SPEND
• Direct & Indirect Spend
• Buyer Productivity • Contract
Compliance • Supplier
Performance • Purchase Cycle
Time • Employee Expense
SUPPLY CHAIN &
ORDER MGMT
• Revenue & Backlog
• Inventory Analysis
• Fulfillment Status
• Customer Status
• Order Cycle Time
• BOM Analysis
PROJECTS
• Project Funding and Budget
• Product Cost
• Project Revenue
• Project Billing
• Project Profitability
HUMAN
RESOURCES
• Employee Productivity
• Compensation
• Talent Management
• Recruiting Analysis
• Learning Analysis
• Workforce Profile
Broadest Analytic Application Coverage Oracle BI Applications
17 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
17
What is an Oracle BI Application?
Integrates Data for Analysis and Reporting
• Pre-built integration of data from Oracle EBS, PeopleSoft, Siebel, JD Edwards,
SAP and other sources into an integrated data warehouse optimized for analysis
Provides User-Friendly Analytic Model of Enterprise Information and Metrics
Embedded best practice calculations, metrics, and KPIs
Easy for business people to access, analyze, and use the information
Delivers Personalized Performance Dashboards for Everyone
Thousands of pre-built dashboards, reports, and alerts by business function and
role
1
2
3
1 2 3
18 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
18
Common Enterprise Information Model
Single Consistent View and User Self-Sufficiency
User Roles, Preferences
Simplified View
Logical SQL Interface
PRESENTATION LAYER
Dimensions
Hierarchies
Measures
Calculations
Aggregation Rules
Time Series
SEMANTIC OBJECT LAYER
PHYSICAL LAYER
Map Physical Data
Connections
Schema
Role-Based Views of the Information Relevant to the User
Consistent Definition of Business Measures, Metrics, Calculations
Model Once, Deploy Everywhere
Across Any Data Sources
19 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
The Problem No Vendor Has Solved
Until Now…
Data warehouse design
Data mapping & transformation from multiple applications
Analytic models, KPIs, metrics
Much more…
DASHBOARDS
“Visible”
“PLUMBING”
“Under the
Surface”
Significant time,
resources and
expertise
required
COMPLETE BI SOLUTIONS ARE MUCH MORE THAN JUST DASHBOARDS
20 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Speeds Time to Value and Lowers TCO
Pre-built DW design, adapts to your EDW
Build from Scratch with Traditional BI Tools
Oracle BI Applications
Weeks or Months
Back-end
ETL and
Mapping
DW Design
Define Metrics
& Dashboards
Back-end ETL and Mapping
DW Design
Define Metrics & Dashboards
Training/Roll-out
Training/Rollout
Quarters or Years
Source: Patricia Seybold Research, Gartner, Merrill Lynch, Oracle Analysis
Pre-built business adapters for Oracle, PeopleSoft,
Siebel, SAP, others
Role-based dashboards and thousands of pre-defined metrics
Easy to use, easy to adapt
Faster deployment
Lower TCO
Assured business value
21 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Oracle BI Applications – Key Benefits
KEY BENEFITS
Improve visibility and
insight into
performance,
processes, and
customers
• Compare operational results to plans in real-time
• Quickly identify and respond to problems & opportunities
• Drive revenue and profit growth with better targeting
• Increase customer profitability and share of wallet
Align strategy and
tactics across
functions
• Manage and execute at all levels based on common view
of information and common performance metrics
• Improve efficiency and reduce costs while maintaining
good product quality and customer satisfaction
• Identify and replicate operational best practices
Leverage existing data,
applications, and IT
staff
• Add value and insight to CRM and ERP applications
• Get faster time-to-value with lower cost and risk
• Lower the total cost of ownership compared to custom
built solutions
22 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
COMMUNICATIONS AUTOMOTIVE FINANCE/BANKING CONSUMER GOODS HIGH TECH
MEDIA/ENERGY AERO/INDUSTRIAL INSURANCE/HEALTH LIFE SCIENCES OTHER
Business Intelligence Customers
Select References
23 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Oracle Business Intelligence Foundation Built to Last and Made For Change
First Intelligent Business Process
Improve business performance by linking
insight to action
Lowest Cost of Ownership
Reusable analytic assets deliver productivity and
provide consistent enterprise metrics
Start Simple and Evolve
Manage risk with single analytic framework across a range of schemas and deployment options
24 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Oracle Business Intelligence Foundation Built to Last and Made For Change
First Intelligent Business Process
Improve business performance by linking
insight to action
Lowest Cost of Ownership
Reusable analytic assets deliver productivity and
provide consistent enterprise metrics
Start Simple and Evolve
Manage risk with single analytic framework across a range of schemas and deployment options
25 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Intelligent Business Processes Insight in Every Decision
1
What Happened?
4 Take Action Who Does What?
2
Why Did it Happen?
3 How to Optimize Across Alternatives?
26 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Intelligent Business Processes Insight in Every Decision
1
What Happened?
4 Take Action Who Does What?
2
Why Did it Happen?
3 How to Optimize Across Alternatives?
KPI Watch List: Customer satisfaction and renewal rates are below expectations
Analyze: Extra support required for retail customers, no margin for additional support.
Should we adjust discounts at retail?
Model: How much extra cost to satisfy retail vs. online customers? How much in lost sales if discounts are reduced?
Approve: new discount policy for retail stores
Update: KPIs and track performance against new targets
27 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Set Strategic Goals, Track Initiatives and
Detect Variances 1
What Happened?
28 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Unified Interface for all Analytic Functions Improves User Adoption and Self-Service
2
Why Did it Happen?
•Single analytic view across all data sources.
•Advanced interactive analysis, regardless of data source
•Same powerful analytic context available in Microsoft Office tools.
29 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
“Senior executives want scenarios and
simulations that provide immediate guidance
on the best actions to take when disruptions
occur – ranging from unexpected competitors or
an earthquake in a supply zone to a customer
signaling a desire to switch providers.”
What MIT Sloan Is Saying
30 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Create Scenarios to Model Future Outcomes
3
How to Optimize Across Alternatives?
• Model Complex Business
Scenarios
– Advanced calculation
engine
– Intuitive dimensions,
derived metrics
• Single view of the business
• Centralized, User-oriented
– Functions, calculations,
consolidations
31 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
4
Take Action Who Does What?
Link Insights to Action Embed BI to Shorten Decision Cycles
32 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Intelligent Decision Cycles In the Organization Pervasive Insight-Driven Management Processes
• Shared KPIs
• Shared Metrics & Targets
• Consistent Metadata
• Tie Strategy to Operations
Drive intelligence decision cycles across all levels of
management from strategy to operational execution
STRATEGIC
PLANNING
OPERATIONAL
33 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Oracle Business Intelligence Foundation Built to Last and Made For Change
First Intelligent Business Process
Improve business performance by linking
insight to action
Lowest Cost of Ownership
Reusable analytic assets deliver productivity and
provide consistent enterprise metrics
Start Simple and Evolve
Manage risk with single analytic framework across a range of schemas and deployment options
34 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Reusable Analytic Assets Common Enterprise Information Model Enables Scale
• User Roles, Preferences
• Simplified View
• Member Selection
• Logical SQL Interface
PRESENTATION LAYER
• Dimensions
• Hierarchies
• Measures
• Calculations
• Aggregation Rules
• Time Series
SEMANTIC OBJECT LAYER
• Map Physical Data
• Connections
• Schema
PHYSICAL LAYER
• Insulates Users from
Complexity
• Consistent Definition
of Business Metrics
& Calculations
• Easier Maintenance
• Model Once, Deploy
Everywhere
• Any Set of Data Sources
MORE VALUE
REUSABLE
35 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Build Once, Deploy Anywhere
Office Integration
Ad-hoc Analysis
Scorecards
Secure Search
Strategy Maps
Geographic Visualization
Embedded in Applications
Interactive Dashboards
Scenario Analysis
Production Reporting
Business Processes
Predictive Analysis Tablet / Mobile
36 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Oracle Business Intelligence Mobile
• An option of Oracle BI
11g
• Enables iPads and
iPhones to become
another 1st class BI
channel
• Delivers mobile BI
instantly, leveraging
existing BI Foundation
37 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Oracle Business Intelligence Foundation Built to Last and Made For Change
First Intelligent Business Process
Improve business performance by linking
insight to action
Lowest Cost of Ownership
Reusable analytic assets deliver productivity and
provide consistent enterprise metrics
Start Simple and Evolve
Manage risk with single analytic framework across a range of schemas and deployment options
38 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Start Simple and Evolve Your BI Strategy Single BI Foundation For All Analytic Functionality
Operational Reporting
Interactive Dashboards
Scenario Analysis
Strategic Scorecards
Process Integration
Predictive Analytics
39 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Direct Reporting Against Any Data Source Any Data Source Becomes an Information Asset
Data Warehouse
Packaged Applications
Business Process
OLAP Cubes
Unstructured Data
XML Files
40 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Oracle Business Intelligence Foundation Built to Last and Made For Change
First Intelligent Business Process
Improve business performance by linking
insight to action
Lowest Cost of Ownership
Reusable analytic assets deliver productivity and
provide consistent enterprise metrics
Start Simple and Evolve
Manage risk with single analytic framework across a range of schemas and deployment options
41 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
<Insert Picture Here>
Customer Success
42 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Retail Aero / Industrial Insurance / Health Life Sciences Travel & Transport
Communications Public Sector Finance / Banking Consumer Goods High Tech
Business Intelligence Customers Business Analytic Tools and Applications
43 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
BT Sharpens its Intelligence with Oracle BI
BT is one of Europe’s leading providers of telecommunications services, with over £8.5 billion in revenue and over 18,000 employees.
Before
Need to replace slow, fragmented
reporting processes
Desire to develop more timely insight
into sales, marketing, and service
interactions
Need to avoid duplication in customer
communications
Want the ability to monitor and
manage customer and business
performance.
After
Implemented OBIEE in 100 days to
1,200 sales, marketing, and service
staff
Ability to monitor and manage
customer and business performance
Improved access to sales opportunity
pipeline data
Replaced 95% of manual sales
reporting
Reduced cost per lead by 41%
44 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Rapid Deployment and Quick ROI 7-Figure return in 5 months
Before
Expensive, error prone, time
consuming manual process to
generate spend data
Users combining data from 14 QAD
instances, Salesforce.com, SAP,
Manugistics, MSFT Access and Excel
Several multi-year Cognos projects
had failed to deliver value
No single source of truth for spend
data; supplier rebates were being
missed
Black & Decker: Hardware & Home Improvement Group was formed in 1989 as a division of Black & Decker. Headquartered in Lake Forest, California, the revenue of this division exceeds $1B.
After
Procurement & Spend Analytics +
Essbase deployed in 16 weeks
Provides “visibility to spend data that
was previously unavailable”
IT spend reduced 36% vs previous
Cognos solution
SG&A report produced in 5 minutes
versus 8 hours
“7 Figure Supplier Rebates” were
identified within weeks of go-live,
resulting in immediate ROI.
45 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Reduces Repair Expenses with Oracle BI
Union Pacific is the largest railroad in North America, with revenue of $14B and coverage of 23 states.
Before
Need to improve railroad track
maintenance activities
Desire to improve allocation of
maintenance spend
Goal of improving employee safety
Need to increase levels of customer
satisfaction
Increase productivity and lower
operating costs
After
With OBIEE, deployed 300+ analytic
applications for Maintenance, Safety,
and Business Performance Mgmt.
4,000+ users access multiple TB of
data spanning Oracle, Teradata and
3rd party sources
Maintenance issues detected before
track shutdowns are required
Improved on-time deliveries and
customer satisfaction
Reduced operating expenses
46 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Cisco Leverages BI Across the Enterprise Single cross-functional BI solution
Cisco Systems is the worldwide leader in networking equipment for the Internet.
Before
Desire to provide business
performance visibility to executives
and line of business managers across
sales, marketing and finance
Need to transform marketing
organization to metrics-based focus
Need to provide executive visibility
into key HR performance metrics
After
Deployed OBIEE as enterprise BI
solution across Sales, Marketing, HR,
Finance, Quality & Manufacturing
18,000 users, growing to 40,000; 10+
TB of data
Senior management tracks near real-
time sales performance
Enhances ability to reallocate scarce
resources to impact performance
30% employee productivity gain
47 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
Florida State University Selects Oracle BI End Users Can Monitor Financial Performance
Before
Unable to track budget, expended,
encumbered, and remaining
balances across various levels of
the University
End-users unable to interact with
data, view data at different levels,
and drill into data without IT help
Could not provide HR based data
for demographic and regulatory
reporting in timely fashion
After
Oracle BI Publisher and Oracle BI EE
will enable Florida State University to
view multiple levels of data, quickly
and efficiently. Can now aggressively
track spending across all levels of the
university.
End-users can access complex data
in a meaningful fashion without
custom development by IT under the
previous solution.
Dramatic reduction in report requests
to IT.
University-wide, consistent view of
financial performance and HR costs.
National graduate research university, 35,000+ students, $1B annual operating budget, with more than 8,000 Employees.
48 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
49 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
50 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Internal & Confidential.
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