b

Building the eXtended Intelligence Enterprise (XIE)

2001 Arthur Andersen All rights reserved.

Business Intelligence Imperative

Doing business is information-intensive. Enterprises are being pushed to share information with increasingly more audiences. The business intelligence imperative insists we elevate BI to a strategic initiative now, or risk disaster!

Howard Dresner, Gartner Group

2001 Arthur Andersen All rights reserved.

Todays Practices

2001 Arthur Andersen All rights reserved.

True Business Intelligence Needed

Faster Business cycles, complex systems and new business risks have forced firms to contend with a plethora of shortcomings of their business intelligence solutions. These include : Increasingly complex and dynamic environments Over reliance on financial metrics Incomplete analysis approaches increasing fact gap in decisions

2001 Arthur Andersen All rights reserved.

Reliance on Financial Metrics Blocks Execs View

Seventy-five percent of all balanced scorecards use financial metrics which ultimately means: Behavioral insights into KPIs remain hidden Operations interactions cannot easily be identified in aggregated data Measurements are based purely on historical perspective

2001 Arthur Andersen All rights reserved.

Information Critical to Success vs What is Measured

US Executive Research Study Summary
% of Companies

100% 90% 80% 70% 60% 50% 40% 30% 20%

Critical to Success

Measure Now

10%
0% Financial Physical Customer Employee Supplier

*For the purposes of this research, it was assumed that all companies managed necessary aspects of their financial and physical assets, so these gaps were not measured.
Organization

*2001 ArthurAndersen Andersen All rights reserved. Source: Global Research

& Innovation

Todays Demands

2001 Arthur Andersen All rights reserved.

Markets are Changing Structurally

The networked economy is facilitating seamless and quick interaction among business, partners, markets, and competitors. In the networked economy where value can be derived by the coupling and decoupling of business capabilities, it becomes imperative that executives can quickly and efficiently understand and act on key information and behaviours within and around their organization.

Networked Economy
Fluid Opportunity A

Atomization
Market, structural & strategic change

Opportunity B

Market

Integrated Value Chain Structural change

Market & structural change

Distinct

Value Chain Deconstruction Stable Unstable

Structure

2001 Arthur Andersen All rights reserved.

Managing Complex Environments

The networked economy has become much more complicated as both the speed of change and the amount of information available increases. To be competitive firms must end their reliance on backward looking measures and implement solutions which: Quickly spot trends Adapt to new business models Understand and anticipate behavior Become receptive to external influences

Assemble leading indicators to detect and manage business direction/speed

Develop and refine performance models

Benchmark indicators against the developed model

Be receptive to internal/external warning indicators to seize new business opportunities or tackle looming crisis.

The time factor

2001 Arthur Andersen All rights reserved.

 2001 Arthur Andersen All rights reserved.

 2001 Arthur Andersen All rights reserved.

 2001 Arthur Andersen All rights reserved.

 2001 Arthur Andersen All rights reserved.

 2001 Arthur Andersen All rights reserved.

 2001 Arthur Andersen All rights reserved.

The Road to Action

The Right Perspective

The Right Architecture A Solid Foundation

A Evolutionary Approach

2001 Arthur Andersen All rights reserved.

The Right Perspective

Enterprise intelligence must enable a cross-enterprise and cross-market integration view to deliver lasting value and sustainable competitive advantage.

Success in todays economy is about developing new and innovative relationships with customers, suppliers, investors, and employees.

2001 Arthur Andersen All rights reserved.

Market Integration Strategy

Customers

Marketing, Sales, and Service

Investors

Finance and Management

Enterprise

Human Resources and Procurement

Employees

Logistics and Supply Web Management

Suppliers

2001 Arthur Andersen All rights reserved.

Enterprise Perspective
Sell Side
Brand vs. Generic Promotion Planning Initiative Viability Business Integration Revenue From Information Federal/State Tax Planning

Predictive

Improve Sell Side Opportunities

Customer Analytics Customer Portal Common Data Model Cross-Selling Product Profitability Promotion Profitability Product Taxability Tables

Increase Buy Side Profitability

Purchasing Service Levels Buy Margin Forward Buy Price Change History Alternate Source

Improve Operational Effectiveness

Profitability Analysis

Warehouse Efficiency Financial Reporting Chargebacks Rebates/Contracts Tax Reporting/Audit Defense

2001 Arthur Andersen All rights reserved.

Buy Side

The Right Information Integration Approach

Product, Customer and Polycentric Architecture
Product-centric Architecture Customer-centric Architecture Polycentric Architecture
Logic Segment 1

Logic Segment 1

Logic Segment 1

Workstation

Workstation

Workstation

Logic Segment 2 Customer Data Server

Logic Segment 2

Value Chain Data Server

Logic Segment 2

Workstation

Workstation

Workstation

Logic Segment 3

Logic Segment 3

Logic Segment 3

Workstation

Workstation

Workstation

Customers Products
2001 Arthur Andersen All rights reserved.

Channels Transactions

Interactions Relationships

Behavioral KPIs and Dynamic Metrics for Business Activity Monitoring (BAM)
XIE empowers complex Recommend business operations via Action actionable KPIs and a truly balanced score card. This is achieved by: Adapting scorecard KPIs to the stakeholder in the context of the current market environment Understanding the interrelationship between drivers and their metrics

Automated Decision Business Interest & Areas of Concern

Automated Action

Learn & Adapt

Intelligently adopting KPIs based on priorities or market shifts.

Removing irrelevant indicators when they are not pertinent

Proactive Business

Stakeholder Behaviour

New Behaviour

Dynamic responses to changing metrics

2001 Arthur Andersen All rights reserved.

BAM Potential Users

Call center staff who need a real-time view of customer and supply chain metrics (beyond limited content provided by the automatic call distributor)
Vice presidents of sales who want a real-time view of sales orders, providing better visibility into the order pipeline to complement historical order data and as a cross-check on sales forecasts Corporate treasury and pension departments, which want to monitor real-time global financial positions, foreign currency and economic information in an integrated way that the real-time data providers cannot provide Factory-floor managers who require real-time material requirements planning (MRP), inventory and sales metrics

2001 Arthur Andersen All rights reserved.

Collaborative Approach

Each user group has a different angle or context for the same event that is made known to each user via the metacontext or metadata layer. Knowing how contexts interrelate enable notification and analysis of events automatically. Supporting technology includes: XML for data sharing Alerts built into the system Workflow systems passing information on Application integration for real time collection, distribution and rationalization of information
2001 Arthur Andersen All rights reserved.

Source: Gartner Group

Wireless Business Intelligence

Users, Distributors, & Partners

Information Dissemination & Event Notification Data Integration, Routing & Transformation Messaging (Events, Data, Images, & Transactions)

Management & Monitoring

Adapter
Mainframe Applications

Adapter
E-Commerce & Web-based Services

Adapter
Database, Legacy, Messaging & Customer Systems

2001 Arthur Andersen All rights reserved.

The Right Architecture

2001 Arthur Andersen All rights reserved.

Metadata Repository
Portal

Customers, Partners, Employees, Suppliers

Presentation Layer Personalization Services Publishing Services Access / Search Services Registration Wizard Application Services Subscription Services Download Center Bulk Import Services Secure Services Collaboration Services Workflow Services Digital Dashboard

Access Layer

Operational Data Sources

Metadata Repository

Enterprise Taxonomy

Sales/ Mktg.

Cust. Service

Order Mgmt

Product Line 1

Product Line 2

Billing

Support

Other Internal Sys

Operational Systems

Data Staging Area

Operational Data Stores (ODS)

Data Warehouses
Atomic Data Store Aggregated Data

Common Data Model

Data Marts
Customer Product Sales Orders

Analytical Layer

Access Layer
2001 Arthur Andersen All rights reserved.

The Right Data Warehouse Foundation

Staging and EAI/ETL Process
Cube

Customer Applications

EAI Tool

Operational Data Store (ODS)

Financial Data Mart

ETL Tool
Query

ERP Suite Staging Area Other Data Mart Marts

Cube

Analyzer

Portal

Legacy Systems Legacy Systems

Central MetaData

Enterprise Data Warehouse (Oracle)

Report Writer

Cube Other Systems Data Modeling Tool Procurement Data Mart

OLAP Tool

Source Systems

Data Extraction, Transformation & Load

Central Data Warehouse

Data Marts

Data Access and Analysis

Data Access and Analysis

2001 Arthur Andersen All rights reserved.

XIE Framework
Strategic Planning Balanced Scorecard ValueBased Mgmt Profitability Modeling

Budget & Forecasting

ActivityBased Mgmt

Industry Specific

HR

CRM

Finance

SCM

Industry

Compensation Planning

Sales Forecasting

Financial Consolidation

Demand Planning

Industry Specific

Work Force Analytics

CRM Analytics

Financial Analysis

SCM Analytics

Industry Analytics

Strategic BI Applications Operational BI Application Analytical BI Applications

Data Warehouse ETL Point-in-time

ODS EAI Real-time

CRM

ERP

SCM

Legacy

E-Apps

HRMS

Source: 2001 Arthur Andersen Gartner Group

All rights reserved.