CMGCMGCMGCMG’’’’s approach to application managed s approach to application managed s approach to application managed s approach to application managed services on SAS data warehousesservices on SAS data warehousesservices on SAS data warehousesservices on SAS data warehousesJan Willem Sijthoff

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Agenda

•Introduction•SAS Data warehouses•Application Managed Services•Example: Service Group Business Intelligence

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Introduction

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Introduction

•Jan Willem Sijthoff•CMG

- CMG’s Datawarehouse method- Focus on business Intelligence

•CMG and SAS- SAS Quality partner since 1996- 70 SAS Consultants active in Europe- 250 Business Intelligence consultants in Europe

WWW.cmg.nl

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SAS Data warehouses

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Experience• 3 major clients

•Human Resources at the national Postal Services company•Controller reports at the national railway company•Marketing information at a large publishing company

•Business knowledge development•Technical knowledge development

HumanResources Finance

CRM

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Business Benefits

•Support of the marketing process•Performance measurement

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Architecture

Mainframe

Oracle Applications

Siebel CRM

DWHOracle 8i

SAS MDDB

This is a schematical reflection of the real situation

SAS appl.

Discoverer

SAS appl.

Informatica Powermart

SAS Base

direct

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Application Managed Services

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Development/ Control/ Support

Basis

Adaptive maintenance

Corrective maintenance

ProjectsDevelopmentDevelopmentDevelopmentDevelopment

ControlControlControlControl

SupportSupportSupportSupport

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Partnership

Business

AMS

IT department

Business IntelligenceCompetence

Center

Technical advice

Support & Maintenance

Education Development

Functionaladvice

Control & architectureBusiness &

Functionalknowledge

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Example: Service Group Business Intelligence

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Organization

Manager

SAS

Change coördinatorChange Coördinator

Other productBI specialistBI specialistBI specialist

Other product

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The SGBI Partnership

SGBI

People in the operational process

Functional Application specialistsBusiness

AMS

IT department

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Business drivers

CostCostCostCostssssPredictability

Economy of scaleTransparency

Added valueAdded valueAdded valueAdded valueLarge variety of services

ProfessionalismContinuity

Quality

PeoplePeoplePeoplePeopleFlexibilityStability

Knowledge and experience

FocusFocusFocusFocusOwn core competences

Stay in controlBusiness opportunities

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Questions?

SGBI@CMG.NL

CMG Zuid West NederlandService Group Business IntelligenceP.O. Box 85663009 AN RotterdamThe NetherlandsSgbi@cmg.nl

© 2002

Moderator introduction:

Intro of JWAS:

2 years at CMG

From the Business consulting/ Business Intelligence company of CMG South WestNetherlands

Business Intelligence and Service Management focus

Member of the Service Group Business Intelligence

Where he fulfills the role of change coordinator and report developer.

Presentation will be around 20 minutes with 5 minutes extra time for questionsQuestions can be asked during the presentation but there is time reserved for it atthe end of the presentation.

Slide 1: (Title slide)

As you have heard in the introduction of the moderator: I am Jan Willem Sijthoff ofCMG. I am going to present how we, CMG, do application managed services on aSAS data warehouse. To achieve this I am going to use the following agenda…

Slide 2: Agenda

To start I would like to introduce CMG and its activities in relation to SAS software.

During the next item I would like to begin a framework. In this framework I first amgoing to tell how ‘we’ used SAS in data warehouse solutions. Focusing on theparticular solution I am currently involved in.

Application Managed Services will complete the framework with some theoreticalbackground on what CMG sees as Application Managed Services.

Finally I would like to link the framework to an real life example of the Service groupBusiness Intelligence. In this example I will show you how we applied AMS and giveyou an insight in Costs, People, Added Value and Focus of AMS.

Slide 3: (Separation slide)

Now I will tell something about CMG and its activities in relation to SAS software

Slide 4: Introduction

CMG is a worldwide system integrator with a strong basis in the Netherlands. Apartfrom a foothold in the telecom market it also provides system development serviceson the field of ERP, CRM and Managed Services. The company I am from focuseson CRM, Business consultancy and business intelligence solutions.

For the development of business intelligence solutions we use the CMG’s Datawarehouse method. This is a standardized method, which describes the differentsteps we take in a data warehouse development project. If you want moreinformation on this method please check the CMG site on the Internet.

An important tool for CMG, in developing data warehouses, is SAS. As a result webecame a SAS alliance Silver Member and since 1996 a SAS Quality partner.

We have over 70 SAS consultants active in Europe working on all kinds of businessintelligence projects. These 70 consultants are part of the 250 business intelligenceconsultants workforce of CMG in Europe.

Slide 5: (separation slide)

After this commercial break, back to the real business: SAS Data warehouses

I will focus on the following subject: the experience we have with SAS datawarehouse in different kinds of projects. This is the start of the promised framework.

I will shortly present three different projects CMG have done recently. I will also stopat the effects of these projects on the knowledge of the consultants. I will end thispart of the framework with a focus on one of the projects I named.

This focus starts with presenting the business benefits the project delivered for theorganization. Finally I will show you a very simplified view of the solution build for thisproject.

Slide 6: Experience

Recently we have been working on projects for three major clients in theNetherlands:- A Post Delivery Company uses a SAS Data Warehouse to analyze Human

Resource data. This solution presents its information via web pages.- The National Railway Company uses SAS Data Warehouse for its financial

reporting. Source data is processed with the help of SAS and put into SASdata marts. These data marts supply special, VBA, adjusted Excel sheets inwhich the final reports are presented. In this project we also made specialforecasting models for he financial department.

- A large Dutch publisher uses SAS Data Warehouse to analyze data used inthe marketing processes of this publishing company. A solution on which I willfocus on in a minute.

These projects generated large business knowledge of the core business of thesecompany’s for the consultants. It also generated the knowledge to use SAS softwareto deliver the required solution for these companies for the consultants.

As I said before… I will now start to focus on the last company mentioned in the list:The large Dutch publishing company. We developed a marketing data warehouse forthem using SAS as a tool to manipulate the data and explore the data.

Slide 7: Business need

This company wanted to know more about the results of their marketing process. Thedeveloped SAS solution helps the company to improve and control its marketingprocesses. The information provided by this marketing data warehouse:

…is needed for the execution of the marketing process…is needed to measure the performance of the marketing process

Slide 8: Architecture

This slide shows us the architecture we build to provide the users with the wantedinformation. We have a number of sources, such as Oracle financials and SiebelCustomer Relationship Management solutions. There are even external sources ofdata, which are bought at other companies.

These sources are being moved and manipulated by Informatica Powermart to thegeneral data warehouse. This general data warehouse is based on Oracle 8i andcontains financial data as well as marketing data. This marketing data is put intoMDDB data marts with the help of SAS Base, SAS MDDB server and the EOM DataStar Engine. These data marts are exploited with tools developed in SAS ApplicationFramework and with reports build in Enterprise Reporter.

The products I mentioned here do not provide a complete list of product used but areonly mentioned to give you a general idea of the architecture.

Slide 9: (Separation slide)

Now that I have given you an insight on the experience we have with SAS datawarehouses I would like to start with the second part of my framework by explainingyou what Application Managed Services, in our view, means. I will do this by firstdefining Application Managed services and then tell something on how you could useit.

Slide 10: Development/ Control/ Support

Application Managed service is a group of people who are responsible for the threebasis elements: Development, Control and support. Application managed services isthe cooperation between these three elements:- The development of new and existing applications- The control of the applications with the aid of ITIL-like processes- The support on these application…as well technical as functional

We call this group of people a Service Group and they basically perform fouractivities:

The basis activity makes sure that the necessary knowledge up to date and providesthe necessary infrastructure to perform the above activities. At correctivemaintenance the group tries to keep the application running by doing long-termmaintenance and solving incidents. Adaptive maintenance means building orimproving the maintained application via users-defined changes. The last activity,‘projects’, build big changes on existing applications or new applications in a projectmanagement environment.

Slide 11: Partnership

The three elements and four activities I named in the previous slides are put togetherin a partnership. This partnership provides a model for the involved groups of peopleto cooperate. This provides clarity in the communication on more than maintenancealone…

Slide 12: (Separation slide)

As you have seen Application Managed Service consist of three elements:Development, control and support. These three elements are being used in a groupof people. We call that a Service group. The service group has four activities: Basis,corrective maintenance, adaptive maintenance and projects. These activities areplayed on the field of the partnership. In which interaction between the service group,the business and the IT department is the key to success. Such a success can befound in the Service Group Business Intelligence in Rotterdam.

The Service group Business Intelligence is a group of different specialists that worktogether for a number of customers on the field of Business Intelligence. One of themain specializations is SAS.

They try to put the explained principles of Application Managed Services intopractice. I am going to tell you how we have done that by telling you about the waywe organized ourselves and how we put ‘the partnership’ into practice. Finally I willshow you the advantages of Application Managed Services in a conclusive sheet.

Slide 13: Internal organization

The Service Group Business Intelligence organization can be seen on this sheet.You can see that the service group works in a matrix structure. In this structure wehave different specializations like SAS. The BI specialist can have severalspecializations. For example a BI specialist can be used as a SAS specialist or anInformatica Powermart ETL specialist. This is done to create more efficiency on theuse of people.

The specialist only have focus on delivering their specialist knowledge while thechange coordinators organize around the requested changes/projects. The manageris responsible for all the actions of the group. He also provides the necessaryinfrastructure to make it possible to function as a group.

Slide 14: The SGBI partnership

The partnership for the SGBI means the cooperation between the Service Group, thepeople in the operational process, the functional application specialists and themanaged service department. Mainly the short communication lines with thebusiness and the functional application specialist makes it possible to supply solidsolutions to any request.

Slide 15: Business drivers

This partnership brings us to the last sheet. In this last sheet I want to point out thebusiness drivers to apply Application Managed Services. I want to do that by meansof explaining four items: Costs of the service group, added value of the servicegroup, People of the service group and finally the focus of the customer.

The cost of the service group is predictable because of the clear, transparent, coststructure (of people who log by the hour, estimate on demanded work etc.)Furthermore due to several customers being served by one service group aneconomy of scale is originated which results in greater efficiency in the group.

(Knowledge sharing: you can use the same knowledge to solve the problems ofdifferent customers, thus making it cheaper for the customer to let problems besolved by the Service Group)

The added value of the service group can be found in the large variety of service thegroup has to offer. These services are performed in a professional way, which alsomeans that the service group stands for continuity and quality.

Continuity i.e. keeping the knowledge of the group in such level to always be able toperform the required service.

The people who work for this servicegroup are supplying this added value. Theyhave the flexibility to work for different customers on different solutions. At the sametime they provide stability through knowledge and experience.

Last but not least: The Service Group provides the customer the opportunity to stayfocused on their core business. The Service Group makes sure that the managedapplications stays running while the control over these applications stay with thecustomer. Now the customer can focus on pursuing all the business opportunitiesthat come by.

Slide 16: Questions

Slide 17: Address