fei presentation 4-22-08
DESCRIPTION
TRANSCRIPT
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 2
Because Finance Touches All Areas of an Organization…
Support decision making
Ability to manage portfolio
risk
Ability to invest
Ability to raise funds
Manage Taxes
Preservation and
Management of Capital
Support Owners and other stakeholders
Standardize
Faster reporting
More reliable information
Automate
Measurement
Eliminate
Consolidate
Run an efficient finance function
Finance Director/ CFO
Prospective “What If” Analysis
Better Budgeting
Real-time information
Quantitative and Qualitative
analysis
…an Effective Finance Function is Critical to Success at Leading Organizations
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 3
Value Preservation to Value CreationKPMG International commissioned the Economist Intelligence Unit to conduct research to examine how finance executives are improving the effectiveness of the finance and accounting function
Survey of 286 senior executives (53% came from organizations with > $1 billion in annual revenues)
Cross section of industries
Research found that top performing businesses have top performing finance functions
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 4
Value Preservation to Value Creation –What Does That Mean?Transforming the finance function
From an inward-looking organization focused primarily on financial reporting and controls (value preservation)
To one that spends more time focused on strategic decision-making (value creation)
Challenges
Assumption of new responsibilities
Pressure to control costs
Regulator and investor demand for information and tight controls
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 6
Business Intelligence OutlineDiscussion objective
What is Business Intelligence
Common challenges
Benefits achieved through successful implementation
Summary
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 7
Business IntelligenceDiscussion Objective
Share what we know about BI
Share what others are saying about BI
Share the perspective of BI stakeholders
What is BI
Share common challenges
Share our lessons learned
Provide leading practices examples
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 8
Objectives of the discussionThe objective of this discussion is to share what we know about Business Intelligence, and what it can mean to the Enterprise. What are some of the things you have heard of when you think of BI?
Level detail needs to be
lower to allow meaningful
detailed analysis
What do I need to report on globally?
I need the ability to store and use
different exchange rates
Does my business
strategy align with my BI program?
Ability to do variance analysis
for current and prior periods
easily within the system
Core analytics in a matter of
hours versus days
We need a centralized source to pull data
BI Is just a technology for
reporting
The planning process is very stressful due to time constraints
and data gathering efforts
What KPIs does my business
need to assess performance
“
“ How do we
compare as a business in our
industry? Across
industries?
I am a large ERP customer, what do I do with all the different BI offerings from
them?
I have the data but my reports
provide multiple answers to the same question.
Where does a BI CC sit, finance or IT or other?
Better, faster, quicker – better information
faster, allowing resources to be
deployed to higher value activities
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 9
Business IntelligenceWhat is Business Intelligence?
Industry View
KPMG View
KPMG BI Framework
Top 10 Trends
CFO and CIO perspective – What matters
Why we should care about BI?
What can BI mean?
Business Strategy Alignment
The promise of BI
BI and Business Performance Management (BPM)
Components of BI
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 10
What is Business Intelligence?
Business Strategy
Performance Management
BI Platforms
InformationManagementInfrastructure
Analytic Applications
People Process
Business Strategy
Performance Management
BI Platforms
InformationManagementInfrastructure
Analytic Applications
People ProcessBI
Competency Center
Business Centric
IT Centric
Layers of Gartner Business Intelligence & Performance Management Framework
Source: Gartner Position Paper, October 2006
Business Intelligence (BI) is the use of information that enables organizations to best decide, measure, manage, and optimize performance to achieve efficiency and financial benefit.
– Gartner, 2008
BI — a set of methodologies, processes, architectures, and technologies that transform raw data into meaningful and useful information — Forrester, 2008
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 11
What is Business Intelligence?It’s about business performance…
…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
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 12
KPMG Framework: Adapted Industry View
• Corporate Strategy and Alignment to Goals• Organizational Readiness and Staffing• Enterprise Business Intelligence Vision • Executive Commitment and Sponsorship
Enterprise BI Framework
• Organizational Structures and Accountabilities• BI Competency Center
•Policies and Procedures (Master Data Mgmt)•Risk, Control, Compliance•Change Management/QA
• KPI’s/Metrics Defined• Reporting Definition and Development (content)• Performance Scorecards/Dashboards Defined• Decision Support and Workflow Mapped
• Master Data Management Prioritization Processes • Data Standardization• Conceptual Design • Information Integrity & Compliance
• Analytics Applications & Tool Portfolio/Selection • OLAP Front End/Back End• Visual Development Tool• Information Access and Delivery Methods
• Technology Tool Portfolio and Selection• Data Warehousing/Mining Management/Source
Systems• ETL and Data Cleansing/Data Integrity• Security and Data Access Technologies
Integrated Information Management
Governance
Performance ManagementProcess & Reporting
Business Strategy Alignment
Infrastructure
Business Intelligence Platform (Translation)
Key Framework Components
Business
Technical
Financial Reporting &
Analysis (External, R
egulatory, Managerial)
Operational R
eporting (Custom
er, Product, Capacity)
Tactical (KPI. Scorecards, Short term
decisions)
Strategic (Enterprise Insights )
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 13
The Top 10 Trends in Business Intelligence1. Information Quality: at the heart of many business challenges and opportunities
2. Master Data Management: building a common language
3. Data Governance: overcoming organizational barriers
4. Enterprise-level BI: striving for an integrated view of the business
5. Regulatory Compliance: driving BI investment
6. Enterprise Data Transparency: keeping companies off the front page
7. Actionable BI: turning volumes of data into usable insights
8. Service-oriented Architecture: drawing the connections to BI
9. “Rightsharing:” making BI development more efficient
10. Semi-structured and Unstructured Data: entering the BI universe
Source: TDWI
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 14
Business Performance is a CFO Priority
% of respondents
Measuring/MonitoringBusiness Performance
Partnering with yourorganization to identify
and execute growth
Continuous process improvement/business improvement
Leading finance-related compliance programs
Meeting fiduciary and statutory requirements
Source: IBM Global CFO Study, December 2005
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 15
BI is a CIO Priority
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 16
Why Do We Care About BI?
Valued Business InformationDashboards, Monitoring, Insight
KPIs, Scorecards
Real Time Reporting
Supporting FrameworkBusiness Strategy Alignment
Governance
Integrated Information Management
BI Platform
Infrastructure – Database, Security, ETL
There are many benefits to the business at the surface, however a sustainable and defined infrastructure and governance framework is required to support the consistent delivery of effective Business Intelligence and Performance Management information.
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 17
What Can BI Mean?Performance management aligning operations to the strategic plan
A enterprise-wide framework to assess, monitor and act upon business unit, employee, customer, supplier performance
A set of standard measures, performance indicators, and metrics for evaluating companies for acquisition, as well as monitoring their performance during integration
Role-based scorecards that indicate company sales revenue, profit, and inventory turns by region and product versus plan
Corporate dashboards that allow management and staff to reduce T&E costs by seeing potential & lost savings
Reports that identify the effectiveness of product placement within a store
Eliminating manual spreadsheet reporting and manipulation processes by warehousing data and using standard enterprise-wide analytics platform
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 18
The Promise of Business Intelligence
Simplified access and standardized reporting across the organization based on a single version of the truth empowers improved decision making at all levels
Strategy MapDrives definition of all measures
Strategic Dashboards – Executives can quickly assess their progress toward strategic objectives and identify areas for action as well as review leading indicators to drive the business forward. Management Dashboards – Managers and business
analysts can track frontline performance, track against plan, quickly review group performance and drill down into specific details. Granular reports are available for performance reviews.
Operational Dashboards – Empowering the front line with information to track daily activities and processes. Employees can drill down into detailed reports and use information to improve business process.
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 19
Business Intelligence and Performance Management
Effective Measurement – Strategy and business objectives are the starting point for identifying the KPIs and measures required to manage the business.
Effective Performance Reporting and Reviews – Clear principles are articulated around expectations of how information is to be used to drive effective decision-making and technology is in place to support the closed loop process.
Effective Tracking and Remediation – Fit for purpose processes exist for capturing issues and actions to resolve. Accountabilities are defined and best practices are accessible to resolve individual or team issues.
Effective Rewards and Compensation Process – Processes are in place that link personal rewards to the strategic business objectives. This will involve strategically linked measures being included as part of an individual’s performance review.
Performance Management Framework
Effective performance management focuses attention on the things that drive the most value and provides a clear link between day-to-day activities and long-term strategic goals.
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 20
Business IntelligenceWhat is Business Intelligence?
Where does finance fit in?
What can finance do to improve?
What does finance need to do to get there?
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 21
Its about less time on cost control and more time on decision support…
Where is finance’s role?
Top Performing
Average
Key Points
Areas where finance plays a leading role
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 22
… More time on planning budgeting and forecasting, and management reporting.
What can finance do to improve?
Top five priorities for improvement in finance’s capabilities
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 23
What does finance need to do to get there?
Use non-financial performance metrics, and increase the understanding within the business.
Top five areas where finance needs to improve its skills
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 24
Business IntelligenceWhat is Business Intelligence?
It’s about business performance…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.What can it mean?
Align, assess, monitor and act upon performance standard Acquisition, integration, data model, scorecards Dashboards, savings, alerts, effectiveness, eliminating Excel, analytics
Framework Strategy alignment Governance Performance management and reporting Integrated information management BI platform Infrastructure
Finance’s role Its about less time on cost control and more time on decision support More time on planning budgeting and forecasting, and management reporting Use non-financial performance metrics, and increase the understanding within the business
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 25
Business IntelligenceCommon Challenges
Challenges from the stakeholder perspective
Where do I begin? How do I know I am zeroing in on BI?
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 26
Common ChallengesCFO
Redundant data, multiple sources
User security
Technology vs. business requirement interpretation
Too many controls over data
Lack of planning & resources for coordinated BI strategy
CIO COO
Fragmented reporting
Compliance (SOX etc.)
Limited forecasting capabilities
Timeliness in reporting
Data integrity
Lack of robust analytics
Spreadsheet dependency
Redundant data marts
Ineffective KPIs
CMO
Lack of insight on operations cost – big ‘hidden factory’
Multiple transaction systems
Lack of intelligent, automated customer support services
Unable to monitor product landed cost
Not enough detail, need “drill-down” capabilities
CEO
Inadequate performance insight
Lack of data and information integrity
Costly, manual reporting to get comprehensive view
Risk of error and loss of economic value
What is BI?
Lack of agility in defining & managing marketing plans
Lack of robust analytics
Lack of customer relationship and intelligence management
Wasted communication based on poor information
Clients aren’t asking “How do I turn information into insight?”
But rather saying “I need trustworthy data access, integrity
and validation”
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 27
Where do I begin? How do I know I am zeroing in on BI?
How do we compare as a business in our industry? Across industries?
I can’t provide accurate forecasts or plans.
What are my global reporting requirements?
I have 100's of reports, how do I standardize?
I need flexibility between my actual and my forecast data.
Tax needs to be able to consume my forecast data for their purposes.
Does my business strategy align with my BI program?
What KPIs does my business need to assess performance?
Is my BI program working?
Am I meeting my industry regulatory requirements or my SEC requirements?
I have the data but my reports provide multiple answers to the same question.
What are my industry metrics?
Do these issues resonate with you and your team members?
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 28
Business IntelligenceBenefits achieved through successful implementation
Potential benefits are broad in reach
Lessons learned
General benefits
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 29
Potential benefits are broad in reachCFO
More standardized information architecture
More timely information delivery
Enhanced sustainability and repeatability of master data management processes
Enhanced data integrity standards and governance
CIO
COO
Enhanced capability for analytics and predictive analysis
Capability to support KPI transparency and drill down
Greater alignment of financial and operational reporting to strategy
Enhanced capability to support a complete digital reporting process
Integrated financial, managerial, regulatory, and control reporting and measurement
One version of the truth
CMO
Accurate spend tracking and supplier scorecarding
Engineering cost reduction savings
Ability to better manage and control advertising spending
Ability to tie financial and operational forecast
Ability to retrofit design from service issues
Ability to tie labor to earned value methods and optimize workforce cost
CEOIncreased shareholder value through increased customer loyalty
Competitive advantage
Quicker business decisions
Enhance view of enterprise information
Integration across organizational functions to provide Enhanced Performance Management
More effective use of sales and marketing tools
Enhanced insight into market information and customer/client preferences
Enhanced utilization of personalized products/services and customer stratification
Target products correctly
Trustworthy data access, integrity and validation which provides
Business Insight
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 30
What have we learned?
It is critical to understand your process deficiencies – both from a performance and controls perspective
Standardizing and simplifying processes and data will enhance performance and control
Focus on the beginning of the process redesign lifecycle, particularly requirements and visioning
Involvement and contribution of senior executive leadership can provide the governance and management necessary to achieve organizational buy-in
Bureaucratic processes and organization structures can slow and complicate the completion of process implementation improvements and dampen user support
It is critical to constantly manage the stakeholders’ expectations of the transformation program
Develop a vision with supporting goals and objectives based upon improving specific capabilities achieves success in the transformation program
Complex levels of detail that typically exist at global manufacturers (particularly in the budgeting process) diverts focus from analysis and leads to information overload
Finance should focus on those views and hierarchies that concentrate value and enable future looking analysis rather than an extensive list of views and reports
Business Intelligence capabilities provide an improved ability to quickly identify and respond to performance and risk management issues
Process
Organization
Strategy
Reporting
Engagements with long-lasting success have taught us a few lessons to share
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 31
Business IntelligenceBenefits achieved through successful implementation
What BI can do for you
BI’s value to your organization
Market overview
BI applications
BI leading practices
Based on the number of failed and under-utilized BI implementations – to successfully implement BI tools CFOs and CIOs need to team together in the areas of:
• Resource management/Organizational alignment
• Data quality/integrity, and
• Overall alignment/integration of Enterprise and BI Strategies
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 32
BI can provide you…Vision, strategy and performance alignment
Proactive decision capabilities
Governance and communication
Sustainable change management
Consistent control and compliance across the organization
Reporting and monitoring
Flexible data model(s)
Foundational toolset for future needs
ACTIONALBLE INSIGHT and DECSION MAKING ABILITY
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 33
The Application of Business Intelligence
Sales MarketingOrder
Management& Fulfillment
Supply ChainFinance HR
PipelineAnalysis
TriangulatedForecasting
Sales Team Effectiveness
Up-sell/Cross-sell
Cycle TimeAnalysis
Lead Conversion
Employee Productivity
Compensation Analysis
HR Compliance Reporting
WorkforceProfile
TurnoverTrends
Return on Human Capital
A/R & A/PAnalysis
GL/BalanceSheet Analysis
Customer& Product
Profitability
P&L Analysis
ExpenseManagement
Cash FlowAnalysis
Supplier Performance
Spend Analysis
Procurement Cycle Times
Inventory Availability
EmployeeExpenses
BOM Analysis
OrderLinearity
Ordersvs. Available
Inventory
Cycle TimeAnalysis
BacklogAnalysis
FulfillmentStatus
CustomerReceivables
Campaign Scorecard
Response Rates
Product Propensity
Loyalty andAttrition
Market Basket Analysis
Campaign ROI
Service &Contact Center
Churn Propensity
Customer Satisfaction
ResolutionRates
Service RepEffectiveness
Service CostAnalysis
ServiceTrends
BI Program
BI Platform
Strategy alignment Governance Performance Management Framework
Master Data Management Data Models
Examples of Business Intelligence Applications
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 34
Leading PracticesA few sample itemsBusiness Strategy
Measures should be aligned with, and demonstrably support, the business strategy
Norton-Kaplan strategy maps are considered the most useful organizing construct
They should define linkages from the financial to customer to operational processes and finally people (as the key foundational element)
Measures should cascade from the business strategy down to the individual scorecards at the lowest point of organizational accountability
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 35
Leading PracticesA few sample itemsPerformance Management
Defines how the BI and PM program deliverables link to achieve the overall business strategy
Use rolling corporate planning forecasts (e.g., 3 – 6 months forward, regardless of year-end, corporate plans of 3 – 5 years)
Measures should be quantifiable and include targets
Reports should show actual performance against targets and measure forecast accuracy to improve the process and increase confidence in the numbers
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 36
Leading PracticesA few sample itemsPeople & Processes
Creation of an “BI Competency Center” to support field level activities and drive consistency in people skills and processes
Extensive focus on change management to drive the right set of behaviors – using the information for analytics, focusing only on the key metrics instead of all metrics, etc.
Consistent set of processes for analytics and data management are defined and implemented (e.g., archival, retrieval, storage, refresh, MRD controls/change management)
Data is effectively managed across its “lifecycle” (model, cleanse, map, etc.) with supporting governance to ensure the data is well maintained and the MI is flexible to support the changing needs of the business
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 37
Leading PracticesA few sample itemsAnalytic Applications
Define the relationship and integration between the analytic applications to achieve needed levels of consistency, relevancy, accuracy and timeliness for cross-functional analysis
Move from reporting what happened, to analyzing root causes, or predicting what might happen next under certain customer, competitor, or market scenarios
Pulls all the source data into a single analytic tool to harmonize reporting and promote consistency
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 38
Leading PracticesA few sample itemsInformation Management Structure
Address how the data architecture and data integration infrastructure ensure efficiency and agility to react to changing business requirements
Consistency in data used across the other layers
Appropriate controls are in place to provide optimum security and appropriate access
Core ERP functionality is leveraged to the maximum extent
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 39
Leading PracticesA few sample itemsBI Platforms
Consists of Enterprise Information Portals (EIPs) for providing access to both structured and unstructured data, augmented by knowledge management tools
Supports process improvement, definition, and capture
Monitors and measures improvements in process
Access to corporate data and ability to push information stores should be designed to increase user productivity and knowledge sharing
Consider a phased roll-out to build expertise and support for change
Ensure data harmonization across multiple source systems
© 2008 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firmsaffiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in the U.S.A. KPMG and the KPMG logo are
registered trademarks of KPMG International, a Swiss cooperative. 14107MIN 40
Business IntelligenceSummary
Objective of this discussion
Business Intelligence – Our definition
Top BI Trends
Common Challenges
Lessons Learned
Benefits achieved through successful implementation
Market Overview
Leading Practices