university of nevada, reno business performance management 1 class agenda: 2/26 and 2/28 answer...
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1University of Nevada, Reno Business Performance Management1
Class Agenda: 2/26 and 2/28
Answer questions about the SQL Server BI labs.
Finish discussion of ETL. Continue moving back and forth
from technical to managerial issues. Understand BI in relation to
business performance management (BPM).
Start BPM exercise.
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SQL Server BI labs
Goals• Introduce you to the basic types of business
intelligence tools available through SQL Server. BI#1: Create tables. BI#2: Populate tables. BI#3: Build a cube. BI#4: Generate reports. BI#5: Use data mining tools.
• Re-familiarize you with SQL Server.• Use Microsoft Access-like wizards available
through SQL Server.
Questions/problems?
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Extract, Transform, Load Extract
• Take data from source system in source format.
Transformation
• Put data into consistent format and content.
• Validate data – check for accuracy, consistency using pre-defined and agreed-upon business rules.
• Add date/time as necessary.
• Convert data as necessary: take a single input stream and place into multiple tables.
• Create derived data such as: aggregations, conditions, calculations.
Load • Use a batch (bulk) update operation that keeps track of what is
loaded, where, when and how.
• Keep a detailed load log to audit updates to the data warehouse.
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Components of SSIS
Control flow• Work flow tasks necessary to populate and maintain a data
warehouse. Many different tasks possible.• Batch format.
Data flow• Moves data from source to destination.• Capable of many different types of transformation.
Event handlers• Specialized control flow that occurs in reaction to an event.
Package explorer• Add-in to manage SSIS package. Examples of tasks: edit,
delete, change location of folders; hide a package, change export/import configuration options.
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Why do we use utilities like SSIS to help us populate a
data warehouse?
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Understanding the use of BI
Understand the placement of BI within business performance management.
Know how to pick your spot for data driven decision making (analytics).
Be able to create reasonable metrics.
Be able to design an effective business-oriented experiment.
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Business Performance Management
The business processes, methodologies, metrics, and
technologies used by enterprises to measure, monitor, and
manage performance.
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Process of BPM
Strategize Plan Monitor/Analyze Act/Adjust
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Strategize: Where do we want to go?To become the Harvard of the west.
(Stanford in the 1940’s)
To give unlimited opportunity to women. (Mary Kay Cosmetics)
To give ordinary folk the chance to buy the same things
as rich people. (Wal-Mart) To make people happy. (Walt Disney)
Sony in the 1950’s: Become the company most known for changing the worldwide poor quality image of Japanese products. Make “Made in Japan” mean something fine, not something shoddy.
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Tasks in the Strategic Planning Process
1. Conduct a current situation analysis
2. Determine the planning horizon3. Conduct an environmental scan4. Identify critical success factors5. Complete a gap analysis6. Create a strategic vision7. Develop a business strategy8. Identify strategic objectives and
goals
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Components of a strategy
Strategic visionA picture or mental image of what the organization should look like in the future
Strategic goal A broad statement or general course of action prescribing targeted directions for an organization
Strategic objective A quantifiable goal with a designated time period and a defined measurement method
Critical success factors (CSF) Key factors that delineate the things that an organization must excel at to be successful
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Planning: How do we get there?
Operational plan: plan that translates an organization’s strategic objectives and goals into a set of well-defined tactics and initiatives, resources requirements, and expected results for some future time period (usually a year).
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Strategy dictates planning
An organization’s strategic objectives and key metrics should serve as top-down drivers for the allocation of an organization’s tangible and intangible assets
Resource allocations should be carefully aligned with the organization’s strategic objectives and tactics in order to achieve strategic success
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Monitor: How are we doing?
Performance measurement systemA system that assists managers in tracking the implementation of strategy by comparing actual results against strategic goals and objectives • Comprises systematic comparative methods
that indicate progress (or lack thereof) against goals
• Requires the development of metrics.• All measurement is about comparison.
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You can’t monitor what you don’t measure
Key performance indicator (KPI)A KPI represents a strategic objective and metric that measures performance against a goal
Distinguishing features of KPIs:• Consistent • Time-related • Benchmarked
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What are the most common KPI’s for profit-making organizations?
How about non-profit organizations?
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Balanced Scorecard Approach to Measurement
FinancialHow should weappear to ourshareholders?
CustomerHow should weappear to ourcustomers?
Learning & GrowthHow will we sustainour ability to change
& improve?
Internal BusinessProcess
What must we excelat?
Vision andStrategy
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Act and Adjust: What should we do next?
Success (or sometimes mere survival) depends on new projects: creating new products, entering new markets, acquiring new customers (or businesses), or improving some process.
But, most new projects and ventures fail!• Hollywood movies: 60% chance of failure• Mergers and acquisitions: 60%• IT projects (large-scale): 70%• New food products: 80%• New pharmaceutical products: 90% …
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Act and Adjust: do it fast!
The goal is to fail fast. Or to know when something is
failing so that it can be adjusted before fully failing.
Or to fail on a smaller scale so that the effects of failure won’t be profound.
Or to be aware of why something failed so that failure produces learning.
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BPM “architecture”
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So, where does Business Intelligence
fit in relation to Business Performance
Management?