Business Analysis for Business Intelligence

2013·8.13 MB·English

by  Bert Brijs

Cover Page: i
Title Page Page: i
Copyright Page Page: ii
Table of Contents Page: iii
Preface Page: xix
Acknowledgments Page: xxiii
Chapter 1 Introduction Page: xxiii
Why This Book? Page: 1
ICT Has Grown Up Page: 1
A Practical Approach Page: 2
Hands-On Issues, Questions, and Methods Page: 2
Figures Don’t Explain Everything Page: 3
What I Mean by “Business Intelligence” Page: 4
From Decision Support to Information Democracy Page: 4
A Definition Page: 5
Scope of This Book Page: 6
What Does a BA4BI Do? Page: 7
Defining the Concept “Business Analyst for Business Intelligence” Page: 7
“How” Career Path Page: 9
“Where” Career Path Page: 10
“C-Level” Career Path Page: 11
Structure of This Book Page: 11
Principal Aspects Page: 14
Strategy Formulation and Formation Page: 14
Strategy Implementation Page: 14
Developing a Marketing Strategy Page: 14
Financial Perspective Page: 15
Operations Strategy Page: 15
HRM and BI Page: 15
Business Intelligence Framework Page: 16
Introducing a BI Project Page: 16
Typical Business Analysis Project Flow Page: 16
Business Intelligence Processes Page: 18
Tips, Tricks, and a Toolbox Page: 21
BI System Page: 21
Chapters of This Book Page: 21
Macroscopic View of Business Intelligence Page: 22
Increasing Cycle Speed of Growth and Its Laws Page: 22
Balancing the 5 Ps of Strategic Management Page: 23
Adapting BI to the Organization’s Configuration Page: 23
Understanding the 4 Cs Page: 23
Business Case for Business Intelligence Page: 24
Business Analysis and Management Areas Page: 24
BI and Cost Accounting Page: 24
BI and Financial Management Page: 24
BI and Operations Management Page: 24
BI and Marketing Management Page: 24
BI and Human Resources Management Page: 25
Business Analysis and the Project Life Cycle Page: 25
Starting a BI Project Page: 25
Managing the Project Life Cycle Page: 25
Mastering Data Management Page: 25
Mastering Data Quality Page: 25
Business Analyst’s Toolbox Page: 26
Project Direction Document Template Page: 26
Interview Summary Template Page: 26
Business Case Document Template Page: 26
Business Analysis Deliverables Template Page: 26
Project Charter Document Template Page: 27
Best Practice Sharing Template Page: 27
Generic Interview Guide Page: 27
Generic Business Object Definitions Page: 27
Appendices Overview Page: 28
Appendix A: What to Ask on Your Job Interview Page: 28
Appendix B: Business Intelligence from 1960 to Today Page: 28
Appendix C: The 101 on Data Warehousing Page: 28
Appendix D: Survey for a BI Project Page: 28
Chapter 2 The Increasing Cycle Speed of Growth and Its Laws Page: 28
Introduction Page: 29
Growth Has a Price Page: 29
Useful Lifespan of the PLC Page: 29
Three Deltas Page: 30
Time, the Essential Strategic Factor Page: 30
Business Analysis Issues Page: 32
First Law: The Triangle of Knowledge, Growth, and Strategy Processes Page: 32
The Knowledge Exchange Process Page: 35
Reciprocity Page: 36
Long-Term Perspectives Page: 36
Fewer Hierarchies Page: 36
Measuring Reciprocity Page: 36
Organizational Drivers Page: 37
Personnel Drivers Page: 37
Business Analysis Issues Page: 38
Second Law: Your Narrow Choice between Two Options Page: 38
Focus Page: 39
Conquest Page: 40
Retreat Page: 40
Redeploy Page: 41
Strategy Continuum Page: 42
Business Analysis Issues Page: 43
Third Law: Any Organization Optimizes Two Extremes Page: 44
Value Chain Revisited Page: 45
Business Analysis Issues Page: 47
What Defines Overall Cost Leadership? Page: 47
What Defines Differentiation? Page: 47
Fourth Law: Measure Only What You Can Measure But Page: 49
Experiment Page: 50
Results Page: 50
Conclusion Page: 51
Business Analysis Issues Page: 51
A Few Tips Page: 52
Fifth Law: There Is Always a Dominant Source Page: 52
The Strategic Apex Page: 52
Exploring Alternatives and Options Page: 53
Functional Management Page: 53
Marketing versus Finance Page: 54
Finance versus Operations Page: 54
Operations versus Marketing Page: 54
Operational Layer Page: 55
Bottom-Up Strategy Formation Page: 55
Cybernetic Feedback Loops Page: 56
Sixth Law: IT Is Here to Stay Page: 58
IT Can Create Competitive Advantages Page: 59
Alignment Movement Page: 60
Business Analysis Issues Page: 61
Chapter 3 Balancing the 5 Ps of Strategic Management Page: 62
Introduction Page: 63
The 5 Ps and Their Interaction Page: 64
Managing Strategy Page: 65
Three Strategy Management Styles Page: 66
The Linear Style Page: 66
The Judgmental Style Page: 66
The Bargaining Style Page: 67
Conclusion Page: 68
Strategy Management Styles and Plan–Pattern–Ploys Page: 69
Choosing the Center of Gravity Page: 71
Chapter 4 Adapting BI to the Organization’s Configuration Page: 71
Introduction Page: 73
Mintzberg’s Configurations Page: 73
Mintzberg’s Lessons for Business Intelligence Page: 74
Business Analysis Issues Page: 76
Chapter 5 Understanding the 4 Cs Page: 77
Introduction Page: 79
Applying the 4 C Perspective on Functions Page: 80
4 Cs: The Foundation of a Balanced Scorecard Page: 81
Business Analysis Issues Page: 83
Chapter 6 Business Case for Business Intelligence Page: 84
Introduction Page: 85
Basics of Information Economics Page: 86
Illustrating IE with a Business Case Page: 87
From a Process to a Marketing Culture Page: 88
First Conclusion: Save on Reporting Operations Page: 88
Second Conclusion: Churn Reduction through Better Customer Analysis Page: 88
Third Conclusion: Better Prospect Qualification Page: 90
Generic Advantages of Business Intelligence Page: 93
Improved Communication Effectiveness Page: 93
Improved Data Quality Page: 94
Common Engineering Models Page: 94
Product Data Models Page: 95
Customer Data Models Page: 95
Better Understanding of Available Data Page: 96
Smarter Extraction and Exchange of Data Page: 96
Better Understanding of the Business Processes Page: 96
Chapter 7 BI and Cost Accounting Page: 98
Setting up an ABC System Using BI Page: 99
Assemble All Sources of Cost Registration Page: 99
Validate the Consistency Page: 100
Assign the Sources in a Meaningful Way Page: 100
Eight Steps for Cost Assignment Page: 101
Consider the Alternatives during the Cost Assignment Process Page: 102
Express Assumptions Page: 103
Communicate the Results and Validate Them in the Field Page: 103
Pros and Cons of Activity-Based Costing Page: 103
Pros Page: 104
Cons Page: 104
Closer Look at ABC Source Systems Page: 105
Accounting System Page: 105
Enterprise Resource Planning (ERP) System Page: 105
Product Data Management Systems Page: 105
Budgeting Systems Page: 107
Time Registration and Access Systems Page: 107
Payroll Systems Page: 107
Warehouse Management Systems Page: 108
Inventory Management Systems Page: 108
Document Management Systems Page: 108
Setting up ABC Analysis in the Data Warehouse Page: 108
Conclusion Page: 110
Chapter 8 BI and Financial Management Page: 110
The 101 on Financial BI Deliverables Page: 111
Keep Your SOX On! Page: 112
Data Lineage Page: 113
Mutual Adjustment Page: 114
Understanding the Business Process Flows Page: 114
Business Analysis for Financial Reporting Page: 115
Chart of Accounts Page: 115
Required Reports Page: 116
Certified Reports Page: 117
Analytical and Explorative Reports Page: 117
Finance Reports Connected to Other Subject Areas Page: 117
Special Attention for Slowly Changing Dimensions Page: 121
Special Attention for Presentation Options Page: 122
Business Analysis Issues Page: 123
Chapter 9 BI and Operations Management Page: 123
The 101 on Operations Management Page: 125
Customer Order Point (COP) Page: 125
Forecasting Page: 127
Optimization of the Supply Chain Page: 128
Business FAQs Page: 128
Quality Management Page: 129
Setting up Outsourcing Analysis Page: 129
Production Management and Information Architecture Page: 130
MRP II Software Page: 130
Capacity Management Software Page: 132
Network Planning Software Page: 132
A Basic Concept of IS for Production Management Page: 133
What to Measure Page: 134
First Example: Physical Goods Transport Page: 134
Second Example: Inventory Management Systems Page: 137
s,Q or the Two-Bin System Page: 137
s,S Page: 137
R,S Page: 138
R,s,S Page: 138
Basic Supply Chain Report Requirements Page: 138
Introduction Page: 138
Total Cycle and Optimum Variable Cost Page: 139
Rotation of Supplies Page: 139
Rotation of Production Page: 139
Rotation of Customers Page: 139
Rotation of Purchases and Subcontractors Page: 140
Total Cycle = RotationS + RotationPR + RotationC – RotationP Optimum Total Variable Costs Page: 140
EOQ with Partial Deliveries Page: 140
Product Analysis Page: 141
Supplier Analysis Page: 141
Setting up a Forecasting System Using BI Page: 142
General Recommendations Page: 143
Forecasting Can Have a Thorough Impact Page: 143
Forecasting Is a Total Process Page: 144
Defining the KPIs for a Forecasting System Page: 144
Cost Justification for Forecasting Page: 145
Step 1: Collect the Data Page: 146
Step 2: Decide on the Grain Page: 147
Step 3: Integrate the Data Page: 147
Step 4: Select the Data Page: 147
Step 5: Prepare the Data Page: 147
Step 6: Choose and Develop the Model Page: 147
Step 7: Validate the Model Page: 148
Step 8: Evaluate the Model in Detail Page: 148
Step 9.1: Evaluate the Results: Improved Delivery Performance Page: 148
Step 9.2: Evaluate the Results: Reduction in Inventory Carrying Costs Page: 149
Step 9.3: Do a Complete Cost of Ownership Analysis Page: 150
Step 9.4: Calculate the ROI Page: 150
Business Analysis Issues Page: 150
General Remarks Page: 151
Questions and Issues to Be Addressed Page: 151
Chapter 10 BI and Marketing Management Page: 152
Introduction Page: 153
What Do We Mean by “CRM”? Page: 153
What Do We Mean by Behavior Analysis? Page: 154
Can We Learn from Past Failures? Page: 155
When Operations Leads the Dance Page: 156
When Finance Leads the Dance Page: 156
When Overly Complex Sales Models Are the Rule Page: 156
When BI Is Used for the Wrong Reasons Page: 158
How BI Can Contribute to Marketing Management Page: 159
Market Research Page: 159
Affinity Analysis Page: 160
Direct Product Profitability (DPP) Page: 161
Product Development Page: 162
Sales Page: 164
Sales Promotion Page: 164
Customer Service Page: 165
Channel Management Page: 165
Retail Marketing Page: 165
Industrial Marketing Page: 166
Professional Services Marketing Page: 166
Fast-Moving Consumer Goods Marketing Page: 167
Consumer Investment Goods Marketing Page: 168
Pharmaceutical Marketing Page: 168
OTC Products Marketing Page: 168
Ethical Drugs Marketing Page: 169
Business Analysis Issues Page: 169
Check the CRM Data Page: 169
Check the Behavioral Analysis Status Page: 169
Market Research Page: 170
Affinity Analysis Page: 170
Direct Product Profitability Page: 170
Product Development Page: 170
Sales Page: 170
Sales Promotion Page: 170
Customer Service Page: 171
Channel Management Page: 171
Retail Marketing Page: 172
Industrial Marketing Page: 172
Professional Services Marketing Page: 172
Fast-Moving Consumer Goods Marketing Page: 173
Consumer Investment Goods Marketing Page: 173
Pharmaceutical Marketing Page: 174
Chapter 11 BI and Human Resources Management Page: 174
The War for Talent and How to Lose It Page: 175
Disconnect Strategy Planning Process—Competence Management Page: 176
A Lack of ERM Strategies Page: 177
Kurieren am Symptom Page: 177
Managing Absenteeism Page: 178
Introduction Page: 178
Absenteeism Measures Page: 179
How BI Can Lend a Hand Page: 179
Business Analysis Issues Page: 183
Security Page: 183
“Hard” KPIs Page: 183
“Soft” KPIs Page: 184
Questions for the HRM Department Page: 184
Chapter 12 Starting a BI Project Page: 185
Overview Page: 187
An Iterative Process Page: 187
Mapping the Process Stages on the Business Analysis Issues Page: 188
Creating the Need Page: 190
Expectations: In Search of the Business Value Page: 191
Funding the Business Intelligence Project Page: 193
Probing for the Motivation Page: 195
Focus on the Expectations through the Entire Project Page: 195
Formal Things Customers Want Page: 196
Informal Things Customers Want Page: 197
Handle Queues Page: 198
Close Loops Page: 198
Gathering the Information Page: 199
Study the Terrain Page: 199
Who You Need to Know Page: 200
What You Need to Know Page: 200
Analyzing the Decision-Making Processes Page: 201
Introduction Page: 201
Decisions, Teams, and Groups at Work Page: 202
A Classification of Decision-Making Environments Page: 203
Process View Page: 203
What Drives the Decision-Making Process Page: 204
Heuristics Page: 205
Stereotyping, the Dark Force Page: 206
Group Decision Making Page: 208
Organizational Change Page: 212
Make the Trade Profitable Page: 213
Make Them Dream Page: 213
Use Positive Feedback Page: 214
Phase Out the Old Systems, Fast Page: 214
Form a Coalition of the Willing Page: 214
Adapt to the Organization’s Risk Profile Page: 214
Prepare for Setbacks Page: 215
Mintzberg’s Management Myths Page: 215
What Do We Learn from This for Our BI Projects? Page: 216
Conclusion Page: 217
Business Analysis Issues Page: 217
Producing the Documents Page: 218
Project Direction Document Page: 218
Interview Summaries Page: 219
Business Requirements Page: 219
Business Case Page: 219
Project Charter Page: 220
Validating the Results Page: 220
“I Wanted Performance!” Page: 220
“Why Do I Need the Full Client?” Page: 221
“Now That I See the Results…” Page: 221
Check the Business Case Page: 221
Support and Maintenance Page: 221
Validation Page: 222
Vision Support Page: 222
Chapter 13 Managing the Project Life Cycle Page: 222
Business Analysis and Project Planning Page: 223
Business Requirements Gathering Page: 225
Interview the CEO Page: 225
What Are Your Objectives? Page: 225
Survey the User Group Page: 227
What Are Your Objectives? Page: 227
Interviews and Workshops Page: 227
What Are Your Objectives? Page: 228
Requirements Challenging Page: 229
How to Challenge the Requirements Page: 229
Testing the Robustness of the Requirements Page: 232
Making It Stick Page: 233
Solid Building Blocks Page: 233
Auxiliary Analysis Areas Page: 234
Dimensional Modeling Page: 234
Data Warehousing 2.0 from Bill Inmon Page: 235
Conformed Dimensions of Ralph Kimball Page: 236
Hubs, Links, and Satellites of Dan Linstedt Page: 237
Mixed Design Choices Page: 239
Conclusions Page: 239
BI Application Specification Page: 241
Business Analysis and Growth—Maintenance Page: 245
Source Changes Page: 245
Dwindling User Support Page: 246
Sharing Project Knowledge Page: 247
Knowledge Objects Page: 247
Interview Page: 248
Publication Platform Page: 248
Preparing a BI Competence Center Page: 249
Assess Readiness Page: 250
Build the Team Page: 251
Business Analysis Issues Page: 252
Conclusion Page: 253
Chapter 14 Mastering Data Management Page: 254
Major Components of Data Management Page: 255
Overview Page: 256
Master Data Page: 256
Source Analysis Page: 258
Data Profiling Page: 258
Source-to-Target Mapping Page: 259
Metadata Management for Business Analysts Page: 260
Before the Project Page: 260
During the Project Page: 262
After the Project Page: 262
Framework for Data Management Page: 262
Dublin Core Page: 262
Zachman Framework Page: 264
Structured Writing Page: 266
Structured Writing and Data Management Page: 266
How the Three Components Interact Page: 267
Chapter 15 Mastering Data Quality Page: 269
Which Quality? Page: 271
ROI Approach to Data Quality Page: 272
Data Quality for Source Systems Page: 273
Marketing Aspects Page: 273
Finance Aspects Page: 274
Operational Aspects Page: 275
Data Quality for Data Warehouse Systems Page: 275
Customer Segmentation Page: 275
Customer Credit Analysis Page: 275
Fraud Prevention and Detection Page: 276
Building the Business Case Page: 276
Data Quality Checklist Page: 279
History Review of the Data Sources Page: 280
Present Situation Review Page: 280
Future Outlook Page: 281
Chapter 16 Business Analyst’s Toolbox Page: 281
Overview Page: 283
Project Direction Document Template Page: 283
Introduction Page: 284
Document’s Contents Page: 285
Project Background Page: 285
Project Context Page: 285
Business Case Page: 285
Project Definition Page: 286
Project Organization Structure Page: 286
Project Approach Page: 286
Interview Summary Template Page: 286
Background Information Page: 286
Roles and Responsibilities Page: 287
Business Processes Page: 287
Interaction with or Ownership of Business Processes Page: 287
Interview Summary Page: 288
Open Issues—Questions Page: 288
Next Steps Page: 288
Business Case Document Template Page: 288
Introduction Page: 288
Efficiency Economics Page: 289
Ad Hoc Reports Page: 289
Asset Management Page: 289
Absenteeism Reduction Page: 289
Reduction in Coordination Costs Page: 289
Improved Negotiation Position Page: 289
Revenue Improvement Page: 290
Pricing Page: 290
Qualification Improvement Page: 290
Customer Valuation Improvement Page: 290
Improvement in Order Cancellations Page: 290
Improved Forecasting Page: 291
Strategic Opportunities Page: 291
Information Value for Your Customers Page: 291
Faster Response to Changing Conditions Page: 291
Quality of Decisions Page: 292
Business Analysis Deliverables Template Page: 292
Introduction and Overview Page: 292
Overview of the Deliverables Page: 292
High-Level Situation Analysis Page: 293
Purpose of the BI Project Page: 302
Stakeholder Matrix Page: 304
Business Requirements Page: 304
Project Management Constraints Page: 308
Scope of the Product Page: 309
Data Requirements Page: 310
Presentation Methods Page: 311
Business Security Requirements Page: 311
Other Requirements Page: 314
Project Plan and Task List Proposal Page: 314
Documentation Page: 314
Glossary Page: 315
Project Charter Document Template Page: 315
Overview Page: 315
Project Scope Page: 316
Project Organization Page: 316
External Relationships and Dependencies Page: 317
Project Approach Page: 317
Project Resources Page: 317
Risk Analysis Page: 317
Business Case Page: 318
Initial Project Plan Page: 318
Best Practice Sharing Template Page: 320
Overview Page: 321
Title Page Page: 322
Executive Summary Page: 322
Best Practice Identification Page: 322
Reason(s) Why This Is a Best Practice Page: 322
Definitions Page: 323
Resources for the Best Practice Page: 323
How the Best Practice Works Page: 323
Specific Instructions Page: 323
Cost Page: 324
Application Area Page: 324
Contact Information Page: 324
Generic Interview Guide Page: 324
Introduction Page: 324
How to Introduce the Interview Guide Page: 325
Generic Interview List Page: 325
Frame of Reference Page: 325
Generic Questions Page: 326
Finally Page: 327
Interview Guide per Functional Area Page: 327
Strategic Decision Making Page: 327
Finance and Controlling Page: 329
Marketing Page: 329
Sales Page: 330
Logistics and Operations Page: 331
Metadata Checklist Page: 331
Metadata for Integration Page: 331
Metadata for Transformation Page: 332
Generic Business Object Definitions Page: 332
Overview Page: 332
Defining the Principal Asset of an Organization: Customer Page: 333
Introduction Page: 333
Taxonomy of Customer Page: 333
Generic Definition of Customer Page: 334
Specific Customer Definitions Page: 335
Organization, a Meaningful Concept? Page: 336
The Many Definitions of Organization Page: 337
Employee or Partner? Page: 338
Product Page: 339
Territory Page: 341
Geographical Aspects of Territory Page: 342
Appendices Page: 343
Overview Page: 343
How Do You Become a BA4BI? Page: 343
Data Knowledge Page: 343
Application Knowledge Page: 344
Process Knowledge Page: 344
BI Skills Page: 345
Interpersonal Skills Page: 345
Appendix A: What to Ask on Your Job Interview Page: 345
Introduction Page: 345
Questions Page: 346
Appendix B: Business Intelligence from 1960 to Today Page: 346
Introduction Page: 347
Early Years Page: 347
Emergence of the Data Warehouse Page: 348
Business-Driven Business Intelligence Era Page: 349
Appendix C: The 101 on Data Warehousing Page: 349
Business Need Page: 349
Technology Barriers Page: 350
Denormalization versus the Third Normal Form Page: 351
Definitions Page: 351
Open to Multiple Sources Page: 353
Solutions Page: 353
Components Page: 353
Extract, Transform, Load Process Page: 355
Appendix D: Survey for a BI Project for the Purchasing Department Page: 356
Introduction Page: 356
A Few Caveats Page: 356
Example Page: 357
Bibliography Page: 359