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BI & ECMA Shotgun Marriage?"
Independent. Detailed. Practical. Specific advice. Best-practice approaches. The Real Story.!
Alan Pelz-Sharpe!Twitter: @[email protected]!
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Copyright © 2011 Real Story Group www.realstorygroup.com
Real Story Group: Introduction
Analyze strengths and weaknesses of the tools....and vendors
Advise on successful technology selection
Buyer’s Advocate, Independent
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Copyright © 2011 Real Story Group www.realstorygroup.com 4
Real Story Group: What We Do
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Copyright © 2011 Real Story Group www.realstorygroup.com
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Copyright © 2011 Real Story Group www.realstorygroup.com
Practicality
Desire
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Copyright © 2011 Real Story Group www.realstorygroup.com
Why Measure
• We need to control our business - otherwise our business will control us
• The only way we can control our business is to adjust our operations to meet pre-determined standards - the basis of the standards and means of control is business information
• Hence to be able to control an organisation one needs information regarding performance standards and actual performance
• Having the correct information (data) is essential to measure performance and expectations accurately
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Copyright © 2011 Real Story Group www.realstorygroup.com
Why Measure? cont
• Managers within the business need to decide on: – What information they will need – How they will gather that information – How they will use the information – How they will respond to the information
• To repeat - having the right information is essential, therefore managers will have to decide on which (to use): – Standards – Measurements – Metrics
• Measuring business performance is the key to controlling productivity, efficiency and profitability
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Copyright © 2011 Real Story Group www.realstorygroup.com
Measure to….
• Find out how you are using your resources (effectively or not?) • Monitor Trends • Find out the causes of errors and ongoing problems • Identify areas for improvement • Monitor progress • Provide information to set realistic goals
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Copyright © 2011 Real Story Group www.realstorygroup.com
Controls
Feed-Forward Concurrent Feedback
Anticipating Problems in Advance
Solving Problems as They Occur
Solving Problems after They Occur
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Copyright © 2011 Real Story Group www.realstorygroup.com
Feed-Forward
• Controls that attempt to identify and prevent problems before they occur – Sometimes known as Preventative Controls
• Focuses on the resources that come into the organization: Human, Data, Financial etc
• For example: Scanning documents correctly at source and extracting data from the scanned image - will likely prevent many more complex issues down the line
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Copyright © 2011 Real Story Group www.realstorygroup.com
Concurrent
• Controls that monitor ongoing activities • Relying heavily on performance standards, rules
and regulations • Monitoring where possible in real time • For example: BPM dashboards that monitor
ongoing business processes - down to task and instance level
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Copyright © 2011 Real Story Group www.realstorygroup.com
Feedback
• Controls that focus on the organizations output – Sometimes called Output Control
• Feedback controls typically measure: – Financials – Output Quality
• Financial measurements to ensure profitability etc
• Quality inspections of produced goods - or alternatively customer satisfaction
• (Feedback controls are the most common of the three)
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Copyright © 2011 Real Story Group www.realstorygroup.com
Feedback Control Model
Build Strategic
Goals Set
Performance Standards
Measure Actual
Performance Compare
Performance To Standard
Take Corrective
Action
Feedback
Feedback
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Copyright © 2011 Real Story Group www.realstorygroup.com
Establishing a Feedback Loop
1. Relate feedback to individuals 2. Make the feedback an obligation 3. Encourage positive and negative feedback 4. Use continuous feedback for continous
improvement 5. Avoid the old proverb ‘no news is good news’ 6. Encourage customer complaints 7. Give responsibility to take immediate action
Source: H. James Harrington
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Types of Measurement
Data"
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Copyright © 2011 Real Story Group www.realstorygroup.com
Measurement Data
Attribute Data
Variable Data
Yes/No Go/Stop Accept/Reject
How Many? How Good?
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Copyright © 2011 Real Story Group www.realstorygroup.com
Attribute Versus Variable
• Attribute – Were there any errors? – Is the group over
budget? – Was the work
completed on time?
• Variable – How many errors per
batch? – What is the size of the
variance between budget and spend?
– What was the variance between the planned completion date and the actual completion date?
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Copyright © 2011 Real Story Group www.realstorygroup.com
Attribute Versus Variable
• Example: 10,000 Credit Card Applications are expected to be processed per week:
90%
10%
Processed Not Processed
0
500
1000
1500
2000
2500
3000
3500
1 2 3 4 5 6 7
Processed
Approved
Rejected
Not Processed
Analysis using attribute data Analysis using variable data
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Effective Measurements
• Timeliness – Time taken to find information – Time taken to respond to query – Time taken to complete a task or process
• Accuracy – Correct version of document – Number of errors – Number of changes to document – Number of customer complaints
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Copyright © 2011 Real Story Group www.realstorygroup.com
Efficiency Measurements
• Throughput – How many cases processed – How many documents scanned
• Utilization – How many manhours per transaction – Server utilization %
• Cost reduction – Cost per completed transaction – Time to complete a form – How much time on non-value added steps
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Copyright © 2011 Real Story Group www.realstorygroup.com
Using Data to Increase Efficiency - Reporting
• Summarizing measurement output (statistics) is a powerful way to quickly focus on problem areas - making a mass of data intelligible
• By summarizing and pulling information together in a digestible format we can enhance decision making, provide insight into complexity and reduce risk
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Copyright © 2011 Real Story Group www.realstorygroup.com
Search Landscape
Autonomy
Microsoft - FAST
IBM - OmniFind
Endeca
Oracle SES
SAP
Lucene
Recommind
DTSearch
Exalead
Vivisimo
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Copyright © 2011 Real Story Group www.realstorygroup.com
BI Landscape
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Copyright © 2011 Real Story Group www.realstorygroup.com
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Database Data
Text Files XML
Structured Documents
CAD Audio
Video
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Intelligence
Querying OLAP Alerts
Reporting
Analytics
Predictions Statistics
Optimization
Data in Isolation
Context
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ECM & BI
• BPM • Rules • Analytics
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Copyright © 2011 Real Story Group www.realstorygroup.com
Storage volumes by data type
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Estimated Documents in eMail Systems
30
0
200000000
400000000
600000000
800000000
1E+09
1.2E+09
1.4E+09
1.6E+09
Documents in Exchange Documents in PST Files
Total number of documents in eMail: 1,464,193,395
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Copyright © 2011 Real Story Group www.realstorygroup.com
Estimated Documents in Shared Folders
31
0
2E+10
4E+10
6E+10
8E+10
1E+11
1.2E+11
1.4E+11
Documents in Shared Files Documents in Exchange Documents in PST Files
Total number of documents: 33,318,534,175
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• Search is still not Business Intelligence. As much as search vendors have been claiming that they're moving into BI, and as much as new search vendors are starting to claim their software actually does BI, integrates with BI, or provides BI, search software still is not BI software. A keyword search, a faceted search, or even an executive dashboard may indicate performance, but that's not the same as actually measuring your key performance indicators.
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Copyright © 2011 Real Story Group www.realstorygroup.com
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Copyright © 2011 Real Story Group www.realstorygroup.com
Thank you!
• Please visit our web site: realstorygroup.com – One-on-one analyst advice – Vendor/product evaluations – Analyst advisory papers – Webinars – Education courses
Download a free research sample: www.realstorygroup.com/Sample
Follow us on Twitter: @realstorygroup Contact me at [email protected]