Business Process Driven BI – An Example

A quick example of how BI & BP (business process) should go hand in hand…

Working with statisticians from Central Michigan University, we’ve jointly developed PVForecaster, a product that allows hospital administrators to forecast their patient volumes on an hour-by-hour, specialty-by-specialty basis.  Tactically, the result is better control over scheduling and costs.  Strategically, PVForecaster helps administrators forecast changes in demand and react accordingly (e.g. build more capacity, etc.)

The PVForecaster  business process design is a good example of how BI (and predictive analytics) applications should integrate with business processes.  In our case, rather than just accepting data and ’spitting’ out forecasts, users drive the system as follows:

1) A planner uses PVForecaster to develop a number of forecast scenaria for the hospital.  For example, what is expected to happen if we increase our advertising budget?  What if we reduce it?  What if our operating territory’s population increases by 2%?  Stays flat?  Decreases?

2) The planner uses the BI tool to  review these scenaria with hospital executives.  Together they decide which scenario will be the one that the entire hospital will work from.  They use a routine in the BI application to designate this as the ‘working assumption.’

3) Department managers from across the hospital are given access to the ‘working assumption’ forecast in the BI tool.  They can use the tool to slice and dice through this forecast along all the relevant dimensions (e.g. date, specialty, time of day, etc.).

4) Using this information, the department managers can plan accordingly.

Yes, we could analyze data and build forecasts without implementing this business process.  But, the tools may not ever get used.  They may become the unused toy of some isolated planner.  On the other hand, implement a business process wherein all the relevant parties have, and need, access to the BI tool to do their jobs and you’ve developed a powerful tool that will get used and will provide enormous value.

Do you have any other good examples of business process / business intelligence synergy?  Put them in your comments.  Thanks!

– Ben

The best analysis puts you in control

It’s a great feeling helping a client understand their data and working with them to analyze it to get to an ‘a-ha’ moment.  Since Dataspace’s founding 15 years ago, our leaders have seen pretty much every technology that helps us help our clients.  And until recently, our CEO would comment, “they’re all pretty much the same.”  Well, he’s got a different set of talking points now.

You may have seen a few of our posts on the merits of QlikView, and now I’m proud to announce we’re Michigan’s newest QlikView partner.  Let me tell you why I’m excited.  Trite as it sounds, QlikView really is different.  Well, maybe it’s not QlikView that’s different, maybe it’s that using QlikView is a completely different experience than using other leading BI tools.  I’m not talking about features, technical architecture,  enterprise deployability or things like that – I’m talking about how, at the most basic level, using QlikView is different, and here’s how I sum it up: QlikView allows analyses that follow the way your brain thinks, not the way the data is organized.

With traditional tools you get some data, format it a certain way, and then use some kind of analysis and reporting tool to view it different ways.  If you find that you missed something, you need to go back and get more data.  If you find you have the right data, but it’s not formatted so the tool is optimized, you need to reformat it.  All this means that to use the tool, the user must bow to the data.  It makes free-thinking difficult, because if you find you want to look at the data a new way, you need to jump through hoops to get the tool to do what you want it to.  Even worse, if you need to rely on IT to reextract and reorganize the data every time you want another analysis, good luck making friends with them.

With QlikView and its database structure, you load all the data at once.  You don’t have to create cubes or other views on which to perform your reporting and analyses – QlikView’s application lets you drill down, up, sideways, it doesn’t matter – it’s all there from the start.  So, if you’re investigating which products are most profitable, and realize it would be great to see which customers buy those products, with one click they’re identified.  Want to see which products one of those customers buys?  One click to reset the products and one click to select the customer, and all the information updates again.  No more cubes, no more incremental fetches, no more bowing to the way the data is structured, no more IT SOWs.

Let your BI tool help you uncover the facts as your brain dictates.  Give QlikView a once-over.  Contact us if you’d like to discuss further.

Dataspace Profiled in “New” Newspaper

Last month Ann Arbor’s long established newspaper, the Ann Arbor News, shut down.  But, it was replaced with a web / twice weekly hard copy publication.  Little did I know that Dataspace would be one of the first companies profiled in the new business section.  To see what they have to say, click here.

I, also, wanted to add a little ’subjective’, business intelligence quiz here.  The answer is really open to interpretation so it will be interesting to see what people think.  The question is: What was the first business intelligence tool?  Why?

Feel free to add your opinion as a comment.

Thanks for following us!

– Ben

Selling Business Intelligence to the Business

Business executives already know our secret.  The best business intelligence systems are not about the system.  The best business intelligence systems are about the business.  Sometimes it’s up to us, as IT professionals, to remind ourselves of this reality.  When talking to a business executive, don’t use keywords like analytics, data mining or data warehouses.  Instead, talk to them about their business.

Ask them if they know which of their customers are the most profitable and which are actually draining resources.  Ask if they want to find ways to reduce the amount they spend in legal costs.  Ask if they want to be able to predict the future demand for their products and services, so they can match capacity and staffing levels accordingly.

As experienced IT professionals we know that the way to provide these answers is to use the data already being collected by organizations in their operational systems (like ERP, CRM) and present it in new, visually appealing ways, with Business Intelligence (BI) tools.  But, occasionally we need to remind ourselves that no matter how cool the technology (to us, even that first program we all wrote that displayed the words “Hello World” was really cool), that’s not what sells BI.

Executives appreciate technology, and many are quite savvy, but when it comes to how they spend their day, they’ve got problems to solve, opportunities to capitalize on, and stakeholders to please.  To them, the best systems are like dishwashers – tools that get a job done.  Executives are not interested in how the dishes get clean, just that they do get clean in a fast, reliable, budget-friendly way.

In other words, executives are interested in the benefits of BI, not how it gets delivered.  So, the next time you’re discussing BI with an executive, sell the benefits, not the tool.  Sell the value of sales force ranking, not the BI system.  Sell the patient volume forecast, not analytic algorithms.  Sell the ability to direct your valuable purchasing dollars to the lowest cost vendors, the ability to have your sales executives use their limited time to court the most profitable clients, the ability to gauge the effectiveness of your latest promotion… you get the idea.

I’ve gotten some great feedback on my Blog posts and I’d love to hear your input.  Feel free to add a comment or email me directly at btaub@dataspace.com.

Dataspace is now an Information Builders Partner!

Just a quick note here, a few weeks ago I wrote the IBI was a sensible player in the BI space that is sometimes overlooked in BI evaluations. Well, to follow that up, Dataspace has just joined the Information Builders (IBI) partner program. For more information, check out the link to the press release on our home page: www.dataspace.com.

Business Intelligence: Where to turn now?

In my discussions with customers and others in the BI field I am hearing a lot of anguish about software vendors.  Many of the larger BI players have been sucked up into bigger companies and I’m hearing that these BI vendors, which were never customer-friendly to begin with, are now becoming downright customer-hostile – even with customers who have paid maintenance for the privilege of obtaining technical support.  Take a look at this article from CIO Magazine for more detail on the turmoil, and this article on Business Intelligence vendors to watch.

BI software vendors used to be grouped into the top three or four players, with open source and smaller players taking a far back-seat.  Things have changed.  Every week I’m seeing product announcements from new entrants.  Some of the tools look really good.  One I’m a big fan of, despite some limitations, is QlikView.  They’ve been around for a while, but are still relatively new compared with long-time BI players.

As consultants, we have the opportunity to work with a great group of clients, and we apply our expertise regardless of the technology they have already deployed – even if its one of the aforementioned customer service-challenged companies.  What to do, though, when a client asks us to recommend a new technology to help them rid themselves of their BI headaches, or make a new start in the field?  We’ve learned that the company behind a technology is as important to a successful implementation as the technology itself.  After all, you can get management dashboards, alerts, statistical analysis and basic reporting from virtually all of the established players.

So, who to choose?

Of course it depends on the application, but if you’re looking for enterprise-class reporting, dashboarding capability, the ability to email basic business intelligence to a broad audience, reasonable licensing models, and an independent vendor partner with a great reputation for customer service, the answer could very well be Information Builders, IBI, the creators of Focus and WebFocus.

What?  Isn’t IBI an old-line mainframe reporting solution?  That’s what I thought.  But, then I saw the technology demonstrated to one of my clients.  Is it perfect?  No.  Other major vendors like Business Objects, Cognos and MicroStrategy each have their unique advantages and disadvantages.  But, IBI really seems to ‘get it’ in two very important ways:

1) WebFocus provides flexibility but also comprehends a fact I’ve been talking about for a long time: MOST USERS DO NOT CREATE REPORTS FROM SCRATCH.  In most BI environments reports are created by IT and, perhaps, a few power users.  The vast majority of users don’t want to and don’t need to create reports from scratch.  (For more on this see my post on tying the BI tool to the user. )

2) IBI customers are genuinely happy both with the tools AND with the vendor.  As with any piece of software, tech support issues do occasionally arise, but the feedback I’ve received is that when they occur, they are given top priority.  Can you say that about your BI vendor?

We were so impressed with the research we’ve conducted, that we’re considering partnership with IBI.  If you are evaluating Business Intelligence tool sets, I recommend that you consider them.

– Ben

Tying the BI tool to the user

Yes, a 747 and a Cessna can both be used to transport you from point A to point B but, isn’t the 747 a bit of overkill for the pilot who just wants to fly himself to the next airport for a $100 hamburger?  Well, in Business Intelligence (BI), many organizations buy a fleet of 747s when all they need is a few Cessnas – they buy tools that are powerful but overkill for most of their users.  A great example of this is when a company buys 7,000 licenses of an expensive, powerful OLAP tool, intending to outfit their entire staff with OLAP.  Is there a need for advanced online analytical processing (OLAP) in the company?  Almost certainly.  Are there 7,000 users who are going to slice and dice through their data?  Almost certainly not.

You can think about BI needs as a pyramid, small at the top and large at the bottom.  At the very top are a few analysts who use data mining tools to identify unexpected relationships and build predictive models by looking at huge data sets (Can you remember when the data mining companies were looking to put mining on every desktop?  Mining on every desktop?  Really?).

Just below the data miners is another, slightly larger, layer of folks who need to slice and dice through their data – the OLAP users.  These folks are looking for things like what products are selling well, in what regions and by which salespeople.

Next is the bulk of the pyramid – the folks in the field who are just trying to get their jobs done.  The folks who need BI to execute specific business processes: to see which customers receivables are over 30 days old; to see where maintenance crews have been assigned for the week; to do the actual day-to-day work of the company.  Do these folks need to slice and dice through huge quantities of data?  No.  These folks generally need a set of predefined reports which have a few flexible parameters for users to complete to specify exactly what data to report on.

While the major BI tool vendors sell their tools as allowing users to create their own reports and to slice and dice their data, the bulk of the pyramid never uses this capability.  Instead, when these tools are released to users they are released with libraries of pre-configured reports.  Most users never do more than use these reports or, occasionally, request new ones.

Once you understand this reality, you start to look at the concept of BI tool standards quite differently.  More on this in a future post.

Think you’re overbuying in BI?  Drop me a line.

– Ben

The Most Important 2% of Your Day

When you look at how Business Intelligence tools are marketed, you’d think that the secret to a wildly successful operation is to simply have executives sit at their desks looking at beautifully laid out dashboards, clicking here and there on charts, graphs, and gauges, drilling down, rolling up, and slicing and dicing their data. After all, that’s what the vendors of Business Intelligence systems portray in their marketing communications (and we’re guilty of using eye candy in our own materials, too).

I’m the CEO of a Business Intelligence consultancy. Organizing and presenting data in ways that enable business decisions is all that we’ve done for the 15 years since I founded Dataspace. Before that, I did it at MicroStrategy.  I’ve, even, co-authored three books on the topic.  Of all people, you might expect me to be sitting at my desk, slicing and dicing to my heart’s content. But you know what? I have a business to run. I’ve got to spend my time on attracting new clients, ensuring my team delivers flawlessly, and conduct a variety of back office functions from tracking payables and receivables to minimizing my overhead. And while we have implemented Business Intelligence tools at Dataspace to help me manage my operation, with the data collected, integrated and presented in a manner specific to my needs, I find I actually spend very little time using these systems. And typically for only two purposes: 1) to investigate a particular problem; 2) to check in once a week or so to see whether things are on track. I recently estimated how much time I spend using on these systems, and found I don’t spend more than an hour a week in them.

Do successful managers spend their days clicking around in BI systems?  I don’t think so.  Successful managers spend their time managing: making decisions and interacting with people – customers, employees, partners, suppliers, etc.  Well-designed BI systems quickly give managers a view of what’s going on – of what decisions they need to make and what conversations they need to have.  Well-designed BI systems get the answer across quickly and then get out of the way.

I’m proud that I use my system less than 2% of the time. After all, well-designed BI systems enable use of that 2% to identify the decisions that need to be made, and the conversations that need to be had with the other 98%.

Want to discuss?  Feel free to contact me at btaub@dataspace.com.– Ben