Australian CIO Summit 2012: Driving High Value, Low Cost Business Intelligence by Steve Psichalos, C3 Business Solutions

1. Driving high value, low cost
Business Intelligence
Steve Psichalos, C3 Business Solutions

2. Today’s Session
• Why BI is a Top Priority for CIOs
• Building a BI business case
• Agile BI
• BI in the Cloud
• Mobile BI
• Key Takeaway

3. Current & Recent Clients

4. Why is BI a Top Priority for CIOs?

5. Why is BI a top priority for CIOs
Toolset Proliferation of Sophistication
capability data of users
Differentiate
Business
only through
climate tighter
intelligence

6. Building a BI Business Case
Case Study: Cost of Reporting

7. Building a BI Business Case
Measurable
Realised
benefits &/or
quickly
savings

8. Our Research Shows…
Per 1,000
FTEs
Save
$2M+
pa With
Automated
BI

9. Research Results
Collated Client Savings Opportunity
(collected during C3 Strategies)
$18
$16
$14
$12
Opportunity: $Million pa
$10
$8
$6
$4
$2
$0
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000
# FTEs

10. Research Results
Saving Opportunity pa through Automated BI
Dept Savings pa
A $254,000
B $71,800
C $331,000
D $752,190
E $66,500
$20
F $541,000
$18
G $283,510
$16
Total $2,300,000
$14
Savings: Million pa
$12
$10
$8
$6
$4
$2
$0
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000
# FTEs

11. A Solution Path
Information Management & Business Intelligence
Strategy Development
Business Industry
Trends 2 Trends
ESTABLISH
TARGET
0 1 STATE VISION 5 6
INITIAL
4 DEFINE VISION DEFINE
ASSESSMENT SOLUTION ROADMAP,
PROJECT GAP BLUEPRINT & BUSINESS
& BUSINESS
STARTUP ANALYSIS IMPACT CASE &
FUNCTION
ANALYSIS 3 ASSESSMENT GOVERNANCE
ANALYSE
CURRENT
STATE
BUSINESS & IT
IT
Strategy
Completion in 6-12 weeks

12. Research Methodology
Current State Assessment Process
Calculation
Saving = # items *
frequency * cost of
avg. employee
Measurement
Report generation
effort to source,
manipulate &
present data
Breakdown
By Departments or
Divisions

13. Case Study Results
Survey Instrument
• 530+ individual reports for $2.3M saving
Current Report Generation Effort
Related Program
Report Business
Delivery Format
Extract Cost (K)
Impact 1-High -
Source System
External (pa K)
External Costs
1-Low - 5-High
Total # Tables
Total Cost (K)
Manual / Auto
# Employees
Report Cost
Report Cost
Report Gen.
Max Annual
Total # files
Complexity
Min Annual
No. Source
Generation
Frequency
# Days for
Midpoint
Systems
involved
involved
Involved
Overall
Related
5-Low
PRO/
(K)
Dept Report Report Name Business
#
BAU
Processes
E Auto R Removed for privacy Medium ABD Manual Quarterly 5 Online 14 $20K $155,264.67 $155,264.67 2 $20K 2 6 6 5 4 30 BAU Removed for Privacy
E Auto R Removed for privacy Medium DBG Manual Quarterly 5 Online 14 $20K $642,077.00 $642,077.00 1 $20K 5 6 6 5 4 1 BAU Removed for Privacy
F Auto R Removed for privacy Medium GBCC Manual Quarterly 5 Online 14 $20K $641,005.00 $641,005.00 4 $20K 5 6 6 5 4 1 BAU Removed for Privacy
F Auto R Removed for privacy Medium DBG Manual Quarterly 5 Online 14 $20K $680,392.67 $680,392.67 6 $20K 5 6 6 5 4 1-2 BAU Removed for Privacy
F Auto R Removed for privacy Medium DBG Manual Quarterly 5 Online 14 $20K $632,724.00 $632,724.00 1 $20K 5 6 6 5 4 5-7 BAU Removed for Privacy
F Auto R Removed for privacy Medium ABD Manual Quarterly 5 Online 14 $20K $866,666.67 $866,666.67 2 $20K 5 6 6 5 4 5-7 BAU Removed for Privacy
F Custom Removed for privacy Very High GBCC Manual Annually 5 MSWord 30 $20K $30,000.00 $40,000.00 11 0-$500 6 2 1 6 3 1-2 BAU Removed for Privacy
F Auto R Removed for privacy Very High GBCC Automatic Daily 3 PDF 1 $10K-$15K $10K-$15K $10K-$15K 6 0-$501 6 20 7 12 4 1-2 BAU Removed for Privacy
F Auto R Removed for privacy Medium GBCC Manual Weekly 3 PDF 1 $20K $2K-$5K $2K-$5K 2 0-$502 2 4 7 6 3 1-2 BAU Removed for Privacy
F Internal Removed for privacy Very High GBCC Manual Quarterly 4 MSExcel 1-2 $15K-$20K $2K-$5K $2K-$5K 2 0-$503 2 20 7 3 1 1-2 PRJ Removed for Privacy
F Internal Removed for privacy Very High EXLQ Manual Yearly 4 PDF 14 $20K $5K-$8K $5K-$8K 2 0-$504 2 20 7 4 2 1-2 BAU Removed for Privacy
G Internal Removed for privacy Very High EXLQ Manual Yearly 4 PDF 14 $20K $5K-$8K $5K-$8K 2 0-$500 2 4 7 5 5 1-2 PRJ Removed for Privacy
G Custom Removed for privacy Very High EXLQ Manual Weekly 4 MSExcel 1-2 $15K-$20K $20K $20K 2 0-$502 2 20 7 4 2 1-2 PRJ Removed for Privacy
G Custom Removed for privacy Very High DBG Manual Monthly 4 MSExcel 1-2 $10K-$15K $8K-$10K $8K-$10K 2 0-$500 2 20 7 2 1 1-2 PRJ Removed for Privacy
G Custom Removed for privacy Very High DBG Manual Quarterly 4 MSExcel 1-2 $8K-$10K $2K-$5K $2K-$5K 1 0-$500 1 5 7 2 1 1-2 PRJ Removed for Privacy
G Custom Removed for privacy Very High GBCC Manual Weekly 4 MSExcel 1-2 $15K-$20K $20K $20K 1 $8K-$10K 1 5 7 ? 8 1-2 PRJ Removed for Privacy
G Internal Removed for privacy Very High EXLQ Manual Monthly 4 MSExcel 1-2 $15K-$20K $8K-$10K $8K-$10K 3 0-$500 3 20 7 1 PRJ Removed for Privacy
G Internal Removed for privacy Very High EXLQ Manual Quarterly 2 MSExcel 1-2 $8K-$10K $2K-$5K $2K-$5K 8 0-$500 8 20 7 7 1 1 PRJ Removed for Privacy
G Internal Removed for privacy Very High EXLQ Manual Yearly 3 MSExcel 1-2 $8K-$10K $500-$1K $500-$1K 2 0-$500 2 20 7 1 1 1-2 PRJ Removed for Privacy
G Internal Removed for privacy Very High EXLQ Manual Quarterly 3 MSExcel 1-2 $2K-$5K $2K-$5K $2K-$5K 5 0-$500 5 20 7 30 6 2-4 PRJ Removed for Privacy
G Internal Removed for privacy Very High DBG Manual Monthly 4 MSExcel 1-2 $15K-$20K $8K-$10K $8K-$10K 2 $5-$8K 2 5 7 6 6 2-4 PRJ Removed for Privacy
G Auto R Removed for privacy Very High DBG Manual Weekly 3 MSExcel 1-2 $15K-$20K $20K $20K 4 0-$500 4 20 7 20 10 1-2 PRJ Removed for Privacy
G Auto R Removed for privacy Very High DBG Manual Monthly 4 MSExcel 1 $500-$1K $500-$1K $500-$1K 2 0-$500 2 5 7 20 5 1-2 PRJ Removed for Privacy
G Auto R Removed for privacy Very High DBG Manual Monthly 3 MSExcel 1 $500-$1K $500-$1K $500-$1K 2 0-$500 2 5 7 10 5 2-4 PRJ Removed for Privacy
G Auto R Removed for privacy Very High ABD Manual Weekly 3 MSExcel 1-2 $15K-$20K $20K $20K 2 0-$500 2 7 7 20 5 1-2 BAU Removed for Privacy
H Auto R Removed for privacy Very High ABD Manual Weekly 3 MSExcel 2-4 $15K-$20K $20K $20K 4 0-$500 4 20 7 20 5 1-2 BAU Removed for Privacy
H Custom Removed for privacy Very High ABD Manual Weekly 3 MSExcel 2-4 $15K-$20K $20K $20K 4 0-$500 4 20 7 2 2 1-2 PRJ Removed for Privacy
H Custom Removed for privacy Very High ABD Manual Quarterly 3 MSExcel 1-2 $10K-$15K $2K-$5K $2K-$5K 2 0-$500 2 20 7 20 20 1-2 PRJ Removed for Privacy
H Custom Removed for privacy Very High DBG Manual Monthly 4 MSExcel 1-2 $15K-$20K $8K-$10K $8K-$10K 1 0-$500 1 3 7 5 5 1-2 PRJ Removed for Privacy
H Custom Removed for privacy Very High GBCC Manual Monthly 4 MSExcel 2-4 $10K-$15K $15K-$20K $15K-$20K 4 0-$500 4 20 7 1 1 2-4 PRJ Removed for Privacy
H Internal Removed for privacy Very High EXLQ Manual Yearly 4 MSExcel 1-2 $8K-$10K $500-$1K $500-$1K 3 0-$500 3 20 7 1 1 2-4 PRJ Removed for Privacy
H Internal Removed for privacy Very High EXLQ Manual Yearly 4 MSExcel 1-2 $8K-$10K $500-$1K $500-$1K 3 0-$500 3 20 7 1 1 2-4 BAU Removed for Privacy
H Internal Removed for privacy Very High EXLQ Manual Yearly 4 MSExcel 1-2 $8K-$10K $500-$1K $500-$1K 1 0-$500 1 10 7 5 5 2-4 BAU Removed for Privacy
H Internal Removed for privacy Very High EXLQ Manual Monthly 4 MSExcel 1-2 $15K-$20K $8K-$10K $8K-$10K 3 0-$500 3 20 7 5 5 2-4 BAU Removed for Privacy
H Internal Removed for privacy Very High ABD Manual Quarterly 4 MSExcel 1-2 $15K-$20K $2K-$5K $2K-$5K 2 0-$500 2 4 7 2 2 5-7 BAU Removed for Privacy
H Internal Removed for privacy Very High ABD Manual Monthly 4 MSExcel 2-4 $10K-$15K $15K-$20K $15K-$20K 8 0-$500 8 20 7 1 1 2-4 BAU Removed for Privacy
H Internal Removed for privacy Very High ABD Manual Monthly 4 MSExcel 2-4 $10K-$15K $15K-$20K $15K-$20K 3 0-$500 3 20 7 1 1 1-2 BAU Removed for Privacy
H Custom Removed for privacy Very High GBCC Manual Monthly 4 MSExcel 2-4 $10K-$15K $15K-$20K $15K-$20K 5 0-$500 5 20 7 1 1 1-2 BAU Removed for Privacy
H Custom Removed for privacy Very High GBCC Manual Monthly 5 MSExcel 2-4 $10K-$15K $15K-$20K $15K-$20K 4 0-$500 4 20 7 1 1 2-4 BAU Removed for Privacy
H Auto R Removed for privacy Very High ABD Manual Quarterly 4 MSExcel 2-4 $10K-$15K $5K-$8K $5K-$8K 4 0-$500 4 20 7 1 1 5-7 BAU Removed for Privacy
H Auto R Removed for privacy Very High ABD Manual Quarterly 4 MSExcel 14 $20K $20K $20K 5 0-$500 5 20 7 1 1 2-4 BAU Removed for Privacy
H Custom Removed for privacy Very High ABD Manual Monthly 4 MSExcel 2-4 $10K-$15K $15K-$20K $15K-$20K 8 0-$500 8 20 7 1 1 2-4 BAU Removed for Privacy

14. Case Study Results
• Stakeholders accepted saving
goal at $2.3M pa
Dept Savings pa
A $254,000
B $71,800
C $331,000
D $752,190
E $66,500
F $541,000
G $283,510
Total $2,300,000

15. Case Study: Current Reporting
$2.3M savings, 1,000 FTEs
Source A Data Integration Platform Data Manipulation
i
Source B P
ii
Source C
iii
Q
iv
Source D
R
v
Source E vi
S
Source F
1 2 3 vii
T viii
Source G
ix
Source H x
U
Source I xi
xii
Source J
xiii
V
Flat xiv
Files

16. Case Study: Reporting Structure
$2.3M savings, 1,000 FTEs
Internal Source
systems Info Delivery including:
• Reporting & analytics
Source A • Data Discovery
Source B
1 • Analytic Applications
Data Integration Layer Enterprise Data
Source C
2 Repository
Source D
Source E
Store
Data Only
Source F Source Data Once
Only Once
3 Reuse
many times
External Source
Systems
Data Investigation
Source x
Platform
Investigate
Data Sets
Flat
Files

17. Case Study
Simplified Core Architecture Components
1 2 3
Source
Systems
Single Data Single Data Simplified
Integration Storage
Reporting &
A Data Analysis
4 External
A Data integration
Solution
Warehouse
platform platform
Data
Collection
Portal

18. Case Study: Business Case
Dept Savings pa Tangible Benefits Realisation
A $254,000
(as well as the intangible unknown – better analytics)
B $71,800
C $331,000
D $752,190
E $66,500
F $541,000
G $283,510 $2.3M+ pa
Total $2,300,000
Totals
Year 1 Year 2 Year 3 Year 4
Yr 1 to 3
Program
Cost
$1,633,500 $1,633,500 $0 $3,267,000 $0
Overall
Benefit
$1,208,000 $270,000 $2,300,000 $1,362,000 $3,662,000

19. Agile BI
Transparent regular, incremental value

20. What is Agile?
www.agilemanifesto.org
We are uncovering better ways of developing software by doing it and helping
others do it. Through this work, we have come to value:
Individuals and interactions over processes and tools
Working software over thorough specifications*
Customer collaboration over contract negotiation
Responding to change over following a plan
* originally “comprehensive documentation”
There is value on the right, but we value the left more
“Maximise the work NOT done”

21. What’s the difference?
Traditional vs Agile BI
Traditionally, upfront Agile delivery allows
you… you to…
Estimate months or Pre-set with small
years TIME increments
Predict entire project SCOPE Set in 2-3 week blocks
Allocate resources & Closely monitored &
cost out entire project BUDGET quickly adjustable

22. Traditional approach
Sys Reqs S/w Reqs Analysis Design Coding Testing Operations
Single Pass
Courtesy of Ralph Hughes, Agile Data Warehousing, www.Ceregenics.com

23. Traditional approach
But, where is the feedback?
Sys Reqs S/w Reqs Analysis Design Coding Testing Operations
Courtesy of Ralph Hughes, Agile Data Warehousing, www.Ceregenics.com

24. Why Agile?
Baked in savings for forecast budgets
Departmental Delivery
Departmental Benefits Realisation Dept Capital Cost
A $312,000
Yr End Yr End
Saving by Dept Saving by Dept B $168,564
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
C $346,812
D $954,000
$104k $104k $104k
$84k $84k $84k E $253,500
$84k $84k F $665,000
$36k $36k G $567,124
Dept Savings pa
$115k $115k $115k Total $3,267,000
$110k $110k $110k A $254,000
$159k $159k $159kl $159k $159k $159k B $71,800
$125k $125k $$125k $125k $125k $125k C $331,000
$63k $63k D $752,190
$33k $33k
E $66,500
$166k $166k $166k $166k
F $541,000
$135k $135k $135k $135k
G $283,510
$283k $283k
$141k $141k Total $2,300,000

25. How Agile BI Works
Detailed steps, incremental value
PRO / Business
ID Topic Value Pts Story Pts Iteration #
BAU Value $$
8 BAU Cust-Accts ad hoc $15K-$20K 40 8 1
9 BAU Cust-Accts ad hoc $15K-$20K 40 13 1
22 BAU Product ad hoc $5K-$8K 40 3 1
• Groups of line items = 47
24
BAU
BAU
Product ad hoc
Product ad hoc
$20K
$15K-$20K
40
40
13
3
1
1
“Sprints” 54
33
BAU
BAU
Product ad hoc
Product ad hoc
$60K
$30K
40
40
8
5
1
1
76 BAU Xactn ad hoc $50-$60K 20 5 2
• 2-3 weeks each 65
55
BAU
PRJ
Xactn ad hoc $80K 20
20
13
8
2
2
Xactn ad hoc $75K
• Grouped by Business value 12
4
BAU
PRJ
Xactn ad hoc
Xactn ad hoc
$15K-$20K
$50-$60K
20
20
13
5
2
2
9 PRJ $20K 20 13 2
and Development Effort 6 PRJ
Xactn KPIs
Xactn KPIs $8K-$10K 20 8 2
77 PRJ Xactn KPIs $2K-$5K 13 5 3
90 PRJ Xactn KPIs $20K 13 5 3
71 PRJ Product ad hoc $8K-$10K 13 5 3
13 PRJ Product ad hoc $2K-$5K 13 8 3
• Groups of Sprints become 16
93
PRJ
PRJ
Product ad hoc $500-$1K
$2K-$5K
13
13
8
13
3
3
Cust-Accts ad hoc
Releases 44
37
PRJ
PRJ
Cust-Accts ad hoc
Cust-Accts ad hoc
$8K-$10K
$20K
13
13
3
13
3
4
53 PRJ Cust-Accts ad hoc $500-$1K 13 13 4
• Release every 6-12 weeks 22 PRJ Cust-Accts ad hoc $500-$1K 13 8 4
21 BAU Product ad hoc $20K 8 8 4
18 BAU Product ad hoc $20K 8 3 4
9 PRJ Product ad hoc $20K 8 3 4
41 PRJ Product ad hoc $2K-$5K 8 5 5
• $$ Business Value can be 66
38
PRJ
PRJ
Xactn KPIs
Xactn KPIs
$8K-$10K
$15K-$20K
8
8
5
8
5
5
attributed to each release 49
47
PRJ
BAU
Xactn KPIs
Product ad hoc
$500-$1K
$500-$1K
8
8
3
8
5
5
15 BAU Product ad hoc $500-$1K 8 3 6
3 BAU Cust-Accts ad hoc $8K-$10K 5 5 6
81 BAU Cust-Accts ad hoc $2K-$5K 5 5 6
97 BAU Cust-Accts ad hoc $15K-$20K 5 5 6
12 BAU Xactn ad hoc $15K-$20K 5 5 6

26. How Agile BI Works
• Sprint Burndowns mapped to
PRO / Business
Release Burndown ID
BAU
Topic
Value $$
Value Pts Story Pts Iteration #
8 BAU Cust-Accts ad hoc $15K-$20K 20 8 1
9 BAU Cust-Accts ad hoc $15K-$20K 20 13 1
22 BAU Product ad hoc $5K-$8K 20 3 1
47 BAU Product ad hoc $20K 20 13 1
24 BAU Product ad hoc $15K-$20K 20 3 1
54 BAU Product ad hoc $60K 40 8 1
33 BAU Product ad hoc $30K 40 5 1
76 BAU Xactn ad hoc $50-$60K 40 5 2
65 BAU Xactn ad hoc $80K 40 13 2
55 PRJ Xactn ad hoc $75K 40 8 2
Release Burndown Chart 12 BAU Xactn ad hoc $15K-$20K 40 13 2
4 PRJ Xactn ad hoc $50-$60K 40 5 2
1200 9 PRJ Xactn KPIs $20K 40 13 2
Sprint Burndown Chart 6 PRJ Xactn KPIs $8K-$10K 20 8 2
77 PRJ Xactn KPIs $2K-$5K 20 5 3
1000 1500 90 PRJ Xactn KPIs $20K 20 5 3
1000 71 PRJ Product ad hoc $8K-$10K 13 5 3
500 13 PRJ Product ad hoc $2K-$5K 13 8 3
0 16 PRJ Product ad hoc $500-$1K 13 8 3
800 1 2 3 93 PRJ Cust-Accts ad hoc $2K-$5K 13 13 3
Weeks Sprint Burndown Chart 44 PRJ $8K-$10K 13 3 3
Cust-Accts ad hoc
1500
600 1000
500
0
400 1 2 3 Sprint Burndown Chart
Weeks
1500
1000
200 500
0
1 2 3
0 Weeks
1 2 3 4 5 6 7 8 9
Weeks

27. Business Case Justification
With Agile BI
Program Burndown Chart
Cost Benefit Savings
$5,962,000
$3,662,000
$2,300,000
$270,000
($1,208,000)
Year

28. BI in the Cloud
Immediate value, lower cost

29. The Value of BI in the Cloud
overcoming
Realise
internal while
immediate
capability & maintaining
application
infrastructure control
value by…
needs

30. The Value of BI in the Cloud
Less
maintenance
Owning
VS
Renting
No more
legacy
Minimal
setup

31. BI in the Cloud Trade-offs
Traditionally
Cloud
• Cost/Value
• Risk
• Control
• Security

32. Considerations: BI in the Cloud
Business Inhouse vs
Culture
type outsourced
Environment
Capability Cost/value
maturity
Security, Data access
Flexibility
risk, control & value

33. Mobile BI
Information when and where you need it

34. The Value of Mobile BI
When
you
At your need it
fingertips
Up to
date

35. Why Mobile BI?
Information Accessibility
immediacy & flexibility
Maximising
opportunities
Meaningful
alert based
notification

36. In Summary

37. Start with the Right Strategy
Business Industry
Trends 2 Trends
ESTABLISH
TARGET
0 1 STATE VISION 5 6
INITIAL
4 DEFINE VISION DEFINE
ASSESSMENT SOLUTION ROADMAP,
PROJECT GAP BLUEPRINT & BUSINESS
& BUSINESS
STARTUP ANALYSIS IMPACT CASE &
FUNCTION
ANALYSIS 3 ASSESSMENT GOVERNANCE
ANALYSE
CURRENT
STATE
BUSINESS & IT
IT
Strategy
Completion in 6-12 weeks

38. In Summary
Applying Agile
Building a BI
BI to track
business case
benefits
BI in the Cloud Advantages of
considerations Mobile BI

39. Thanks. Questions?
Steve Psichalos
Partner
C3 Business Solutions
Information management & business intelligence specialists
www.c3businesssolutions.com

40. Driving high value, low cost
Business Intelligence
Steve Psichalos, C3 Business Solutions