A61 Schneider National the Business Value of Business Intelligence

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    Presented by

    Zulfikar K SheikhRoll No. 61

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    Al Schneider bought a truck with money earned from selling thefamily car

    1938 Schneider bought Bins Transfer & Storage and changed the

    name to Schneider Transport & Storage

    1962 The company dropped Storage from its name to becomeSchneider Transport

    1988 Schneider became the first trucking company to install asatellite tracking system in its trucks

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    1991 Moved into Canada and Mexico

    1997 Moved into Europe

    2002 Christopher Lofgren promoted to CEO First person outsidethe founding family to lead Schneider National

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    Private Company

    Incorporated: 1939 as Schneider Transfer and Storage Co.

    Employees: 20,000

    Sales: $3.2 billion (2004)

    NAIC: 484110 General Freight Trucking, Local; 484121 GeneralFreight Trucking, Long-Distance, Truckload; 423110 Automobile andOther Motor Vehicle Merchant Wholesalers; 532120 Truck, UtilityTrailer and RV (Recreational Vehicle) Rental and Leasing; 561110 OfficeAdministration Services

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    Case study

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    Review of Schneider: Used to rent out the family-owned, pumpkin-colored trucks

    Today largest transportation and logistics company in NorthAmerica

    Sends goods by truck, rail, and sea all over the world

    Brokers freight to other carriers

    Provides financial services

    Provides logistics servicesHandles freight paymentsCoordinates shipments

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    Problems with business data Tons of data was collected, but nothing sorted into useful

    information; no organization Bill Braddy brought on board in1998 to find a way to harness the data so it could be used efficiently

    Solution Installed business intelligence software from Cognos in 1999 main

    attraction was a product in the Cognos suite called PowerPlay seemed to offer most advanced data-analysis capabilities

    1. Presents key data to regular people in a way that is easy tounderstand

    2. Makes it easy for these people to analyze the data that ispresented in depth

    Facts Findings

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    The installation was completed in five months after choosing thesoftware went smoothly because of two years of planning andoverhauling existing databases

    Savings in one area of business (reimbursements owed to Schneider)were great enough to recover the entire cost of the software andinstallation

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    Schneider National was overwhelmed with data but did not succeedin extracting valuable information from this data.Business intelligence software solved this problem by:

    Organizing the data the massive amounts of data from eightdifferent databases was organized and presented to ordinarypeople in a way that makes sense; it was also presented in aconsistent manner where everybody, no matter where they were inthe organization could see the same things; the data was also easyto access.

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    Speed of the data analysis

    By exploiting PowerPlays advanced data-analysiscapabilities end users were able to quickly and efficiently

    utilize data to increase efficiency, locate lostreimbursements, and improve day-to-day operations.

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    relatively high costs for such software and its implementation

    from installation to run this software well, it took 5 months

    To find the right BI software is not easy

    required data for the BI software must be standardized

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    Companies able to make better decisions.

    Business intelligence takes the volume of data your organizationcollects and stores, and turns it into meaningful information thatpeople can use in their day-to-day activities.

    Business intelligence gives the user visibility into performance tomake the best decisions.

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    Applications that collect business intelligence are a hot commodity today, but

    the limits of this technology are beginning to surface. With an ever-expandingbody of data that must be collected and analyzed, business users are findingthat their intelligence application can't offer the kind of flexibility they need tostay competitive. Typically, such a product is helpful in collecting information

    and with routine analysis and reporting, but fails to deliver on its promise as

    a decision support software application when users need answers to questionsthat aren't addressed by pre-defined reports and out-of-the-box capabilities.

    Many products boast of customizable reporting solutions, but requiresignificant help or training to deploy these features quickly and easily. For

    many companies around the world,

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    Business intelligence usage can be categorized into the followingcategories:

    1. Business operations reporting The most common form of business intelligence is business

    operations reporting. This includes the actual and how the actualstack up against the goals. This type of business intelligence oftenmanifests itself in the standard weekly or monthly reports that needto be produced.

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    2. Forecasting Many of you have no doubt run into the needs for forecasting, andall of you would agree that forecasting is both a science and an art. Itis an art because one can never be sure what the future holds. What if competitors decide to spend a large amount of money in advertising?What if the price of oil shoots up to $80 a barrel? At the same time, itis also a science because one can extrapolate from historical data, soit's not a total guess.

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    3. Dashboard The primary purpose of a dashboard is to convey the information at aglance. For this audience, there is little, if any, need for drilling downon the data. At the same time, presentation and ease of use are veryimportant for a dashboard to be useful.

    4. Multidimensional analysis Multidimensional analysis is the "slicing and dicing" of the data. Itoffers good insight into the numbers at a more granular level. Thisrequires a solid data warehousing / data mart backend, as well asbusiness-savvy analysts to get to the necessary data.

    5. Finding correlation among different factors This is diving very deep into business intelligence. Questions askedare like, "How do different factors correlate to one another?" and"Are there significant time trends that can be leveraged/anticipated?"

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    Source adapted from eryn brown, slow road to fast data,fortune, march 18,2002,pp.170-172.2002 time inc.all rights reserved.