Business Intelligence and “U”

Steve Gillard and Peter RadcliffeUniversity of Minnesota Analysts Group

July 3, 2008

What is Business Intelligence?

Business intelligence and analytics represents an integrated set of technologies and processes that use data to analyze and understand organizational performance

Note it is not just a piece of software you purchase and deploy, but involves people, policies, philosophy, and technology

Other similar terminology• In addition to business intelligence, a number

of other terms are used to describe a similar approach, such as:– Fact-based decision-making– Evidence-based decision-making– Data-informed decision-making– Business analytics (can be thought of as a subset

of BI)

• All of these concepts revolve around using facts or evidence as a basis for decisions, in place of exclusive reliance on instinct and experience

Foundations of Business Intelligence• Foundations of business intelligence outline

components that are the prerequisites to achieving effective data driven decision making throughout the University. Also illustrated here are interdependencies between parts of the model which come together to form the foundation of what leads to business intelligence framework.

• Elements of effective decision making include:– An organizational component– Infrastructure layer– Data layer– Operational layer– Strategic layer

Business Intelligence and Analytics• Business intelligence and analytics

represents an integrated set of technologies and processes that use data to analyze and understand organizational performance.

• Business Intelligence helps answer five questions1. What happened?2. What is happening?3. Why is it happening?4. What will happen?5. What do we want to have happen?

BI Tools

• Oracle/PeopleSoft/Hyperion

• Microsoft SQL Server

• “Homebrew” systems

• Many other vendors exist– Cognos, SAP, etc.

END USER TOOLS & PERFORMANCE MANAGEMENT APPS

ExcelExcel PerformancePoint PerformancePoint ServerServer

BI PLATFORM

SQL Server SQL Server Reporting ServicesReporting Services

SQL Server SQL Server Analysis ServicesAnalysis Services

SQL Server DBMSSQL Server DBMS

SQL Server Integration ServicesSQL Server Integration Services

SharePoint ServerSharePoint Server

DELIVERY

ReportsReports DashboardsDashboards Excel Excel WorkbooksWorkbooks

AnalyticAnalyticViewsViews ScorecardsScorecards PlansPlans

Oracle BI Architecture

Enabling Concepts for BI

• Strategy Maps – representations of an organization’s mission, goals, and activities

• Balanced Scorecards – representations of different perspectives on an organization and its performance

• Key Performance Indicators – measures that represent how successful and organization is in different domains

STRATEGY MAPDefine & communicate priorities and focus

BALANCED SCORECARDMeasure performance against priorities

MISSIONWhy we exist

VALUESWhat’s important to us

VISIONWhat we want to be

STRATEGYOur game plan

EMPOWERMENT / PERSONAL OBJECTIVESMotivate employees

INITIATIVE and PLANNING PROCESSManage actions and resources to drive change

STRATEGIC OUTCOMES

SatisfiedSHAREHOLDERS

Delighted CUSTOMERS

Efficient and EffectivePROCESSES

Motivated & PreparedWORKFORCE

The Strategy Map and the Balanced Scorecard bridged the strategy implementation gap. They link leadership at the top to management of initiatives, process improvements and

employees’ everyday actions.

Strategy Mapping

• Connects mission and goals to activities and projects and through that to measures

• Can feed budgetary decisions by illustrating what initiatives fit goals

• Can inform selection of performance measures

Balanced Scorecard

Set of perspectives from which to view organization

1. Customer

2. Internal

3. Learning and Growth

4. Financial

Bizspeak and the Ivory Tower

• These organizational performance management tools were created in the business world

• Terminology imported from business can irritate academics

• More importantly, a business-based model can place focus in the wrong places (e.g. the “bottom line”)

• Both terminology and models must be adapted to higher education

The “C” word

• Business philosophies applying business intelligence, strategy maps, and balanced scorecards often refer to themselves as “customer-focused”, and devote considerable attention to customer satisfaction.

• Thinking about the individuals and entities served by higher education as “customers” often encounters significant resistance within academia.

“University-Friendly” Terms• From a workshop on using the balanced scorecard in

higher education by Jan Lyddon and Bruce McComb

• Stakeholder Perspective– To achieve our mission, how must we look to our

stakeholders?

• Internal Perspective– To satisfy our stakeholders, at which processes must we

excel?

• Learning and Growth Perspective– To achieve our mission, how must our organization learn

and improve?

• Fiduciary Perspective– If we succeed, how will we look to our taxpayers?

UMD’s Strategy Map for Improving Graduation Rates

• Core Process Area– UMD Retention Areas

• Strategic Priorities– See “Literature Review”

• Opportunities for Action– See “Best Practices” and “Idea Brainstorming”

• New Initiatives (2006-07)– See “TLP Projects”

UMD’s Strategy Map: Core Process Areas

I. Fit: Interests and educational goals of students are aligned with UMD, its programs, and regional setting.

II. Financial: Students have access to sufficient resources to plan for and invest in their education.

III. Learning: Students are engaged in challenging learning activities leading to timely degree completion.

IV. Support: Students are connected to a strong network of caring faculty, staff, and students.

V. Culture: Students, faculty, and staff are valued participants in, and contributors to, a diverse and inclusive community that is educationally purposeful.

Internal ProcessesTo satisfy our customers, at which operational & quality processes must we excel?

FinancialTo financially sustain our Mission, on what must we focus?

*Cancer,Cardiovascu-lar,Digestive, Surgery, Children Specialty Services

Vision: SMDC will be the best place to work and the best place to receive care.

CustomerTo achieve our focus on Quality, Safety & Value, how should we appear to our internal & external customers?

SMDC FY06-08 Strategy Map

Copyright © 2006 by St. Mary’s/Duluth Clinic Health System

Service Excellence

F5 Capture earned revenue

Clinical Excellence

P3 Capital investment emphasis in technology & facilities to support clinical & financial objectives

F3 Restructure regional clinic business & clinical models

Management Excellence

Learning & GrowthHow will we sustain our ability to change and improve as a system

F1 Achieve a 3% Operating Margin by FY08 to sustain our Mission and achieve our Vision

*F2 Grow key specialty services & programs

F4 Redesign Duluth & Superior primary care strategy

We will pursue our mission and vision through a focus on Quality, Safety and Value

L2 Emphasize entity & system missions

L1 Create an environment that has an expectation of consistently delivering quality health care

P7 Excel in efficient & effective operations

P1 Right patient, right care, right process, best outcome

L3 Recruit & develop people to outstanding levels of

performance

L4 Engage physician leaders & managers as partners in

success with SMDC

P2 Provide easy, timely, coordinated

access to health care services

P4 Create direct access to specific programs & services

P6 Optimize physician & staff productivity

P5 Design & implement coordinated care models to effectively manage disease

processes

C3 Customer Value • Efficient Care

C2 Clinical Expertise • Effective Care• Safe Care

C1 Quality Relationships• Timely Care • Patient-centered Care• Equitable Care

Mission: SMDC brings the soul and science of healing to the people we serve.

The Strategy Map and Balanced Scorecard should represent a complete program of action.

$XXXX

Action Plan

Initiative Budget

• Customer Loyalty Program

• $XXX

• On Ground Cycle Time Optimization

• Quality Management

• $XXX

• $XXX

• ESOP

• Ground Crew Training

• Crew Scheduling System Rollout

• CRM System

Total Budget

• $XXX

• $XXX

• $XXX

• $XXX

Execute

Strategy Map

Theme: Operating Efficiency Objective

• Profitability

• Grow revenues

• Fewer planes

Financial Profits & RONA

Grow Revenues

Fewer Planes

• Flight is on-time

• Lowest prices

• Attract and retain more customers

CustomerAttract & Retain More Customers

On-time Service

Lowest Prices

Fast Ground Turnaround

Internal • Fast ground turnaround

• Ground crew aligned with strategy

• Develop the necessary skills

• Develop the support system

Learning

Strategic Job

Ramp Agent

Strategic Systems

Crew Scheduling

Ground Crew Alignment

Balanced Scorecard

Measurement Target

• Market Value

• Seat Revenue

• Plane Lease Cost

• 30% CAGR

• 20% CAGR

• 5% CAGR

• FAA On-Time Arrival Rating

• Customer Ranking

• # Repeat Customers• # Customers

• #1

• #1

• 70%• Increase

12% annual

• On Ground Time

• On-Time Departure

• 30 Minutes

• 90%

• % Ground Crew Stockholders

• Strategic Awareness

• Strategic Job Readiness

• Info System Availability

• 100%

• 100%

• Yr 1 - 0%Yr 3 - 90%

Yr 5 - 100%

• 100%

MeasureCommunicate

Alignment

• Effort to be more strategic in initiatives and foster greater “alignment”

• Alignment means having a stronger connection between the purposes and functions of units and initiatives and the strategic goals of the organization

• Funding is directed toward initiatives that promise progress on strategic goals

Strategic Context of the UofM

• “Top 3” goal

• Strategic positioning process

• Metrics and measurement efforts

• Increased focus on quality and continuous improvement

• New EFS reporting tools and environment

BI and EFS

• EFS Project views reporting instance as a step toward a business intelligence system for the UofM

• Reporting instance provides a variety of tools for traditional reporting, parameterized queries, and ad-hoc queries (but not analytics directly)

• Key will be eventual shift of other topic areas to same reporting approach

BI and EFS: Reporting Tools

• The “triangles” chart shows how the EFS reporting environment tools fit into a concept of business intelligence

• Moving from End User to Enterprise Analyst, tool capabilities ascend the “Analytics” chart

• Goal is to provide tools across the spectrum of users

BI and Strategic Positioning

• Articulated mission, values, goals

• Collection of initiatives launched to achieve goal

• Measurements still being discussed

• Strategic vs operational uses for BI

Business Intelligence Dashboard• This business intelligence dashboard summarizes our

evaluation of key foundational elements at the University of Minnesota using the stoplight metaphor. This approach offers an ‘at a glance’ overview of how the institution as a whole is doing relative to these components.

• Next steps– Develop common data definitions– Develop staff training resources– Improve distribution of analysis skills– Create a sustainable pipeline for BI projects– Build a collaborative community of BI practitioners– Develop a shared vision of BI for the U of MN

BI and Skills Capacity• Do we have the analytic capacity to

make use of information?

• Do we have analytic capacity in the right places?

• Do we have the capacity to provide analytic training?

• Do we have coherent training to produce clean data?

BI and UofM Culture

• Do we have an agreement on how to connect our initiatives to our goals and how to measure progress?

• Are we prepared to make budgetary choices on the basis of measures and strategy?

BI and UofM Infrastructure

• What kinds of tools do we need to put in place?

• How will those tools fit with existing software and staffing?