Introducing BI into a Midsize CompanyAn Approach to Better Business Decisions

by Tom Dunnigan, CIOSC Student Loan

March 2009

Background

Our Company

South Carolina Student Loan (SCSLC) is a private nonprofit organization founded in 1974. SCSLC serves as an originator and servicer of FFELP and private student loans to South Carolina residents and students attending South Carolina institutions. SCSLC also administers the functions of the South Carolina State Education Assistance Authority pursuant to a contractual arrangement with the State.

SCSLC currently has 212 employees, and it services over $7.045 billion in FFELP student loans for more than 412,675 borrowers and 1,628,801 loans.

Background

Our Company Vision

““To be recognized throughoutTo be recognized throughout

South Carolina for superiorSouth Carolina for superior

service and as the premier service and as the premier

education loan provider”.education loan provider”.

Background

Key Stakeholders

Students Parents Higher Education Institutions Banks, Lenders and Secondary Market High School Guidance Counselors Federal Government

Background

STUDENT

Student Loan

Loan Origination /

Customer Service

RepaymentServices

University

$

$

GuarantyServices

SCSLC

DefaultAversion

Assistance

LoanRecovery

ClericalSupport

Out of School

Pay to $

Repayment

Delinquent

Billing Statements

Default Aversion

Claim Review& Payment

Collection Calls

U.S. Dept. of Education

USDE gets portion of what we recover

USDE Reinsures G.S. for loan

default

Lender gets interest, special allowance and account maintenance fee

Lender is insured for the defaulted loan

MICROSOFT CORPORATION

Bond Market

Board of Directors

The Corporation issues bonds to obtain funding for new loans.

The bonds are sold and the proceeds are used for making loans.

Background

Key Business Drivers

Dynamic Regulatory Change Greater Transparency for Investors Reliable Financing Vehicles Efficiency through Self-Service Model Technology Modernization to Evolve Business Timely Management Information for Ever-Changing Market

Business Intelligence

Strategy Defines the Approach

Leverage our Legacy Investments Recognize the Learning Model for the Company Improve Data Management Capabilities Introduce Self-Service Model Identify Early Adopters and Deliver Actionable Information Deliver Short-terms Wins and Advertise via Early Adopters Realize Cost as Business Value is Created

Business IntelligenceData

Data QualityProcess

Information

Knowledge

Debate

Decision

Policy

Datato

Decision&

Policy

Context

Understanding

Informed Decision-Making

Consensus Building

Trusted Source [Integrity - Standardized, Cleansed & Validated]

Input Source [Discovery]

Published Policy

Understanding the Learning Model•Never discount the learning model of the organization

•Perceptions matters, so a managed data quality process is essential to trust

•High-quality, actionable information for management and decision is the ultimate goal

Business LogicBusiness LogicLayerLayer

DataDataLayerLayer

IBM iSeries & DB2 Database

Business Intelligence - Architecture

PresentationPresentationLayerLayer

””Out with the Old”Out with the Old”

CorporatCorporate Datae Data

Legacy around Legacy around Business IntelligenceBusiness Intelligence

•Query/400 Objects•DDS Files•IT Middleman

Business LogicBusiness LogicLayerLayer

DataDataLayerLayer

Business Intelligence - Architecture

IBM iSeries & DB2 Database

PresentationPresentationLayerLayer

CorporatCorporate Datae Data

Request

Response Service

””In with the New” – Guided by SOAIn with the New” – Guided by SOA

EvolvingEvolvingBusiness IntelligenceBusiness Intelligence

•DB2 Web Query•Legacy Support•No IT Middleman•SQL & MetaData

Business Intelligence

Old

New

Business Intelligence

Early Stage RoadblocksNew Product Offering, Consistency and Accuracy of Information, & Higher PrioritiesActions Taken

Engaged IBM, Information Builders and IBM Business Partner collaboratively over several monthsAddressed higher priorities to free up necessary resources while planning with technology partnersCreated short-term wins that influenced early adopters and demonstrated the potential of technology solution to serve business needs better

Development Time and ResourcePhase 1 – Working models with defined process to support internal training & production use

Consumed 75% of one resource for initial 4 months while addressing prototypes, process, security and change management issuesFour days of training provided by IBM and IBM Business Partner

Next Phase – Internal training of five more BI development resourcesIncrease development resources with structured approach and agile development methodsActionable management information first, and address legacy later

Evolving Business Intelligence

Before - Extracted from DB2 using IBM Query/400, downloaded into MS Access and use MS Excel for sort and graphs. Utilized primarily for monthly reporting due to data latency.

After - Daily, real-time information provided that is actionable.

Evolving Business Intelligence

Must stay below 48%per federal regulations

Active Report allows dynamic sorting, visualization and drill-down with calculations

Variable parameters provide real-time view of time periods

Key stakeholder is partially color-blind, so patterns and hot

colors aid presentation

Evolving Business Intelligence

Key stakeholder is partially color-blind, so patterns and hot colors

aid presentation

Key Performance Indicator -Fiscal Year Performance

Real-time Feedback

Departmental Goal

Evolving Business Intelligence

"Before the introduction of IBM DB2 Web Query, I would typically have to wait until the end of the month in order to discover if my key metrics were being met. Now with DB2 Web Query, my metrics are on-demand, interactive. I not only see my metrics daily through pie charts and graphs, but I also have both my dollars and counts tabled before me on one page! To update, I simply refresh my screen. This tool has reduced a laborious monthly task to daily usable data all with a simple key stroke! How great is that!”

- David C. Roupe, Vice President of Guaranty Services- David C. Roupe, Vice President of Guaranty Services

Evolving Business Intelligence

Before – At best, extracted from DB2 using IBM Query/400, and then downloaded into MS Excel spreadsheet weekly. Utilized ad hoc, due to highly reactive nature of department’s behavior. Another IBM Query/400 object emailed to key stakeholders daily.

After - Daily, real-time information provided that is actionable.

Evolving Business IntelligenceReal-time view of future disbursement of funds

Drill down on funding source to school and even borrower levels

Real-time view of disbursements being held

by institutions

You can see what institution and student is involved in the $3,168 disbursement

Allocated funding by funding source for automated loan approvals with alerts

Business Intelligence

Strategy Leads to the Goals

Leverage our Legacy Investments Recognize the Learning Model for the Company Improve Data Management Capabilities Introduce Self-Service Model Identify Early Adopters and Deliver Actionable Information Deliver Short-terms Wins and Advertise via Early Adopters Realize Cost as Business Value is Created

Introducing BI into a Midsize Company

Next Steps

Upgrade IBM DB2 Web Query to Gain Access to Secondary Data Resources within SQL Server

Train Developers and Power Users, and Expand Usage Work with Early Adopters to Deliver Short-Term Wins Evolve with IBM and IBI Business Intelligence Solutions as

Business Needs Dictate

Questions

Thank You

An Approach to Better Business Decisions