Business Intelligence - Methodology
Dror HarBI/DW Practice LeadIBM BCS, Israel
Things I thought to talk about:
• IM versus DW versus BI versus KM
• IBM BI Methodology
• Business Cases:– Business Case (FS)– Data Modeling (Telco)
• Q&A
Changes In IBM!!!
PwC Consulting IBM Global Service
IBM Business Consulting Services
Business Innovation Services
BTOBTO
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How We’ll Operate
Strategic Strategic ChangeChange
CRMCRM
Supply Chain Supply Chain and Operationsand Operations
Financial Financial ManagementManagement
Human CapitalHuman Capital
e-BIe-BI
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Sectors/IndustriesSectors/Industries
BCS Israel BI/DW Group
• BI/DW group of ~40 people• Offerings:
– Full implementation (…, BI Programs & BI outsourcing)
– Phase Zero (Analysis and High Level Design)
– Roadmap / Vision (Business, Applications & Technical)
– Business Applications – “Unlocking the Value”
– Improvement Package– Ongoing Development and Support
BCS Israel BI/DW Group (Cont.)
• Skills– Business Analysts
– Information Analysts
– Technical Architects
– Data Modelers
– ETL architects and programmers
– Front-End programmers
– DBA’s
– Program and Project managers
BCS Israel BI/DW Group (Cont.)
The Israeli BI/DW gained world wide recognition
• IM versus DW versus BI versus KM
Unstructured data:-Documents- Intranet pages- Library- Notes / Email
Structured Data:- Internal DB- Files- External Information
IM / DW / BI / KM
KMBI / DW
Information Management
• BI Methodology
Our Information Management Methodology
Project Initiation
Project Initiation
Analysis Design Construction Implementation
Technology and Tools Definition
Technology and Tools Definition
InformationAnalysis
InformationAnalysis
Businessand Process
Analysis
Businessand Process
Analysis
ETL DesignETL Design
TechnologyArchitecture Design
TechnologyArchitecture Design
Process Change IntegrationProcess Change Integration
Front-End Application
Design
Front-End Application
Design
Data DesignData Design
TrainingTraining
DocumentationDocumentation
Database Construction
Database Construction
Front-End SystemConstruction
Front-End SystemConstruction
Systemand
IntegrationTesting
Systemand
IntegrationTesting
RolloutRollout
ETLConstruction
ETLConstruction
Post Implementation
Review
Post Implementation
Review
Project Management & Quality Assurance
Analysis and Design Phase
Project Management and Quality AssuranceProject Management and Quality Assurance
Bus. & Systems Analysis
Planning and DefinitionBusiness Use and Vision
Inventory & Systems
Assessment
Inventory & Systems
Assessment
Information &
Organisation Analysis
Information &
Organisation Analysis
Business AnalysisBusiness Analysis
Determine Key
Performance Measures
Determine Key
Performance Measures
Identify Business
Opportunities
Identify Business
Opportunities
Systems Vision for Business
Needs
Systems Vision for Business
Needs
Finalize Priority &
Vision
High-Level Data Model High-Level Data Model
High-Level Application
Functionality
High-Level Application
Functionality
High-Level Extract and
Mapping
High-Level Extract and
Mapping
Architecture &
Management Strategy
Architecture &
Management Strategy
Action Plans, Budget, and Architecture
& Information Based
Application Suite
Action Plans, Budget, and Architecture
& Information Based
Application Suite
Business TrackBusiness Track
Info. TrackInfo. Track
Technology TrackTechnology Track
The Business Track
Project Management and Quality AssuranceProject Management and Quality Assurance
Business and Systems Analysis
Planning and Definition
Business Use and Vision
Perform Business Analysis
Perform Business Analysis
Identify Business
Opportunities
Identify Business
Opportunities
Finalize Business Priority
and Vision
Determine High-Level Functionalit
y
Determine High-Level Functionalit
y
Submit Plan,
Budget, and Architecture
Submit Plan,
Budget, and Architecture
Key business objectives / problems / opportunities
Information usage and objectives linkage
Business requirements Best practices
comparison Value chain analysis
High-level business case for application suite
Application definition tied to business requirements
High-level front-end and analytical functionality
Process impact analysis
Initial source-to-target mapping of existing reports to planned data warehouse toolset
Sample analysis of major reports using desired report template
The Information Track
Project Management and Quality AssuranceProject Management and Quality Assurance
Business and Systems Analysis
Planning and Definition
Business Use and Vision
Finalize Business Priority
and Vision
Submit Plan,
Budget, and Architecture
Submit Plan,
Budget, and Architecture
Conduct Information
Analysis
Conduct Information
Analysis
Determine Key
Performance Measures
(KPM)
Determine Key
Performance Measures
(KPM)
Build High-Level Data
Model
Build High-Level Data
Model
Build High-Level
Extract and Mapping
Build High-Level
Extract and Mapping
Source systems definition and mapping
High-level data entity description
Data access and technology requirements matrix
Source system data to target information map
Source-to-target gap analysis
List of existing key performance measures
Listing of suggested performance measures by subject / application area
Tie between performance measures and business objectives / problems / opportunities
Metadata management strategy
High-level target data model with key facts, dimensions, and attributes.
Source-to-target mapping between existing fields and high-level data model
Business rules listing High-level extract,
transform and load (E.T.L) algorithm
The Technology Track
Project Management and Quality AssuranceProject Management and Quality Assurance
Business and Systems Analysis
Planning and Definition
Business Use and Vision
Finalize Business Priority
and Vision
Submit Plan,
Budget, and Architecture
Submit Plan,
Budget, and Architecture
Inventory & Systems
Assessment
Inventory & Systems
Assessment
Systems Vision for Business
Needs
Systems Vision for Business
Needs
Architecture &
Management Strategy
Architecture &
Management Strategy
Technical documentation of current environment / initiatives
Identification of potential problems and opportunities vis-a-vis DW program
Technical architecture drawing with listing of all required components
Tool requirements matrix (Platforms, Front-End, E.T.L engine, DataBase Etc.)
Finalized technical architecture overview
Capacity and sizing estimates
Hardware & communications requirements
Confirmed toolset: Platform(s); Front End; Engines; E/T
Training, integration and support requirements
The Project Management Track
Project Management and Quality AssuranceProject Management and Quality Assurance
Business and Systems Analysis
Planning and Definition
Business Use and Vision
Finalize Business Priority
and Vision
Submit Plan,
Budget, and Architecture
Submit Plan,
Budget, and Architecture
ProjectInitiationProject
Initiation
Kick off documentation
Confirmed project objectives
Team members listing
Framework for workshop and meeting schedule
Project plan & timetables
Finalized project charter
Priority / value analysis of deployment options
Plan for information-based application(s)
Executive Summary Final overall architecture:
business; information; technical
Integrated action plan: Budget; Timetable
Project implementation structure: roles & responsibilities; team organization; management structure
Our Information Management Methodology
Project Initiation
Project Initiation
Analysis Design Construction Implementation
Technology and Tools Definition
Technology and Tools Definition
InformationAnalysis
InformationAnalysis
Businessand Process
Analysis
Businessand Process
Analysis
ETL DesignETL Design
TechnologyArchitecture Design
TechnologyArchitecture Design
Process Change IntegrationProcess Change Integration
Front-End Application
Design
Front-End Application
Design
Data DesignData Design
TrainingTraining
DocumentationDocumentation
Database Construction
Database Construction
Front-End SystemConstruction
Front-End SystemConstruction
Systemand
IntegrationTesting
Systemand
IntegrationTesting
RolloutRollout
ETLConstruction
ETLConstruction
Post Implementation
Review
Post Implementation
Review
Project Management & Quality Assurance
Purpose/Benefits Validate and articulate the business needs on two fronts: (1)
Problems facing the business, and (2) Opportunities for the business
Align the information-based sales and marketing initiative with the overall organization strategy and plan
Key Activities Understand business strategy Interviews/workshops with all levels of decision support users:
senior management; middle management; front-line users.
Build value chain of target business processes to be impacted by system
Determine key impact points of information on business decisions
Codify business needs along functional lines for example: reporting capabilities, decision-support capabilities, analytical applications, simulations, on-line operational feedback loop
Deliverables M.O.S.T. model
describing strategy Linkage between
information usage and business problems/opportunities
IBM “best practices” comparison in problem/opportunity areas
Client’s target area value chain analysis
Detailed WorkplanDetailed Workplan
Conduct Business Analysis
Epoch PartnersInvestment Bank
Value Chain - Main Activities
EquityOffering
ManagementResearch
Issuer Relationship Management
Marketing - New Business
• Analyze Online Partners investors
• Present Epoch capabilities
• Demonstrate attractiveness of retail market
• Identify and analyze merger & acquisition opportunities
• Bring equity offering information to potential retail investors
• Provide issuers effective demand curve data
• Help issuers set appropriate price
• Help Online Partners allocate shares
• Manage directed shares program
• Track post transaction share activity
• Conduct fundamental research on all clients
• Conduct fundamental research on selected industries and covered stocks (comparables)
• Publish research on Web
• Nurture existing relationships
• Identification of business opportunities
• References
InitialPublic
Offering
Secondary
Offering
Mergers&
Acquisitions
Value Chain - Critical Success Factors
• Knowledge of Online Partners’ investors
• Increased availability of offerings for retail investors
• Credible profile of potential buyers
• Presentation of equity offering information to retail investors
• Management of conditional offers to purchase across large retail investor base
• Creation and analysis of demand curve
• Credible pricing recommendations
• Credible recommendations for allocation to potential buyers
• Management of directed shares program
• Timely tracking of post transaction share activity
• Recognized for best available knowledge of clients
• In-depth knowledge of industry and selected industry comparables
• Insightful research analysis and reports delivered via Web
• Ability to track research impact on retail investor base
• Client awareness of stability of retail base
• Client awareness of investor activity
• Advice that positions clients for long term success
• Willingness of existing clients to provide meaningful references
InitialPublic
Offering
SecondaryOffering
Mergers&
Acquisitions
EquityOffering
ManagementResearch
Issuer Relationship Management
Marketing - New Business
Value Chain - Key Information Req.
• Analysis of investors:- holdings - trading patterns- demographics- money flows
• Analysis of comparables issues:
- trends- cross holdings- past IPO demand
and allocations
• Creation and analysis of demand curve (prior to IPO):
- real time- historical analysis
• Analysis of allocated shares distribution (during IPO)
• Trading activity for first 30 days (after IPO) and afterwards as required
• Impact of research publication:
- hits on Web page- trading effect
• Analysis of clients:- investor base- trading patterns
• Analysis of comparables:
- investor base- trading patterns
• Research impact:- trading effect
- business events (triggers)
InitialPublic
Offering
SecondaryOffering
Mergers&
Acquisitions
EquityOffering
ManagementResearch
Issuer Relationship Management
Marketing - New Business
Support for Detailed Information Req.
• Analyze Online Partners investors
Activity• The Data Warehouse will provide query and
analysis tools that allow the Investment Bankers to demonstrate an in-depth knowledge of the demographic characteristics of the retail client base of the Online Partners (“investors”). The information will be both general (e.g., number of investors, median age, median income level, median account size of all clients who invest more than 10% of their accounts in technology stocks) and detailed (e.g., same information for those investors who own or have owned, within the last six months, comparables a, b, and/or c).
• The Data Warehouse will provide tools that allow the Investment Banker to demonstrate in-depth knowledge of the holdings and trading patterns of investors in the client’s industry and in comparable stocks (e.g., the box positions of comparables a, b, and/or c as of month-end for the last 12 months, the aggregate current box position, the net purchases and sales for each month, the trading for each of the 5 days immediately following their latest earnings announcement, etc.).
• Provide information about gross money flows into and out of investor accounts
• Categorize investor information by IPO eligibility as determined by each Online Partner
• All of the information provided will be correlated with designated business events1
Data Warehouse Support• Investor demographics (monthly)
- geographic location- gender- income level- education level- age- investment sophistication- account type (cash, margin, retirement)- account tenure (how long opened)- IPO eligibility- channel preference (web, telephone, other)
• Account Summary (daily)- account size (total assets)- portfolio composition (cash, long / short position in
equities, mutual funds, bonds, options, selected industries w/i equities [e.g., technology])
• Holdings (daily)- ticker- shares owned (both long and short positions)- holding period (how long owned)- cost basis- how acquired (IPO, aftermarket)
• Trading pattern (daily)- frequency of trades (relative to business events)- shares acquired in IPO- shares acquired in aftermarket
• Money flows (weekly)- cash deposits / withdrawals- available cash and cash equivalents- available buying power
• Issues (as defined in “Demonstrate attractiveness of retail market” activity)
Information Requirement
Marketing - New Business
EquityOffering
ManagementResearch
Issuer Relationship Management
1 See “Epoch Value Chain - Business Events” (p. 7)
Support for Detailed Information Req.
• Help issuers set appropriate price
Activity• The final demand curve data (information
about the volume of interest in an IPO at various price levels) will be provided by the Epoch Demand Repository, which is outside the scope of the Data Warehouse project
• The Data Warehouse will provide query and analysis tools to correlate the final demand curve data with investor demographic characteristics and historical trading patterns. By analyzing key information (e.g., account size, cash availability for additional investments, trading
patterns in comparables, etc.), Epoch can present the issuer with probable behavior patterns for the investors at different price points on the demand curve
Data Warehouse Support• Investor demographics (as defined in
“Analyze Online Partners investors” activity)
• Account Summary (as defined in “Analyze Online Partners investors” activity)
• Holdings (as defined in “Analyze Online Partners investors” activity)
• Trading pattern (as defined in “Analyze Online Partners investors” activity)
• Final demand curve data- ticker- date- demand curve detail
price rangetotal offers to purchase / indications of
interest
Information Requirement
EquityOffering
Management
Marketing - New Business
ResearchIssuer
Relationship Management
Support for Detailed Information Req
• Nurture existing relationships
Activity• The Data Warehouse will provide query
and analysis tools that allow the Investment Bankers to continue to demonstrate an in-depth knowledge of the demographic characteristics and holdings and trading patterns of investors who own the client’s stock (e.g., median age, median income level, average account size, investment maturity, holdings of the client as of month-end for the last 12 months, aggregate current position, net purchases and sales for each month, trading activity for each of the 5 days immediately following significant business events, etc.).
Data Warehouse Support• Investor demographics (as defined in
“Analyze Online Partners investors” activity)
• Account Summary (as defined in “Analyze Online Partners investors” activity)
• Holdings (as defined in “Analyze Online Partners investors” activity)
• Trading pattern (as defined in “Analyze Online Partners investors” activity)
• Money flows (as defined in “Analyze Online Partners investors” activity)
• Issues (as defined in “Demonstrate attractiveness of retail market” activity)
Information Requirement
Marketing - New Business
Issuer Relationship Management
EquityOffering
ManagementResearch
July 2001: Goldman Sachs buys Epoch Partners forapproximately $250M.
Goldman Sachs CEO’s news release:
“I am Pleased to acquire……..for 2 reasons. First it provides access to the valuable retail investment customer base andmost important Epoch’s customer and marketinginformation analytics capabilities are the most valuable
asset we could find in today’s market”.
MTNCellular Company
Data Modeling
Q&A