Arthur Andersen_Extended Risk Entreprise

28
b © 2001 Arthur Ande rsen All rights reserve d. Building the eXtended Intelligence Enterprise (XIE)

Transcript of Arthur Andersen_Extended Risk Entreprise

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    b

    2001 Arthur Andersen All rights reserved.

    Building the eXtended

    Intelligence Enterprise (XIE)

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    Business Intelligence Imperative

    Doing business is information-intensive.

    Enterprises are being pushed to share information with increasingly

    more audiences. The business intelligence imperative insists we

    elevate BI to a strategic initiative now, or risk disaster!

    Howard Dresner, Gartner Group

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    Todays Practices

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    True Business Intelligence Needed

    Faster Business cycles,complex systems and new

    business risks have forced

    firms to contend with a

    plethora of shortcomings of

    their business intelligence

    solutions. These include :

    Increasingly complexand dynamicenvironments

    Over reliance onfinancial metrics

    Incomplete analysisapproaches

    increasing fact gap in

    decisions

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    Reliance on Financial Metrics Blocks Execs View

    Seventy-five percent of allbalanced scorecards use

    financial metrics which

    ultimately means:

    Behavioral insights into

    KPIs remain hidden

    Operations interactions

    cannot easily be

    identified in aggregated

    data

    Measurements are

    based purely on

    historical perspective

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    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    Financial Physical Customer Employee Supplier Organization

    Critical to Success Measure Now% of Companies

    * Source: Andersen Global Research & Innovation

    Information Critical to Success vs What is Measured

    US Executive Research Study Summary

    *For the

    purposes of

    this research, it

    was assumedthat all

    companies

    managed

    necessary

    aspects of their

    financial and

    physical

    assets, sothese gaps

    were not

    measured.

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    Todays Demands

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    Markets are Changing Structurally

    Market

    Distinc

    t

    Structure

    Stable

    Integrated Value

    Chain

    Unstable

    Value ChainDeconstruction

    Structural

    change

    Fluid

    Atomization

    Market &

    structural

    change

    Networked Economy

    Opportunity

    A

    Opportunity

    B

    Market,

    structural

    & strategic

    change

    The networked economy isfacilitating seamless and

    quick interaction among

    business, partners, markets,

    and competitors.

    In the networked economy

    where value can be derived

    by the coupling anddecoupling of business

    capabilities, it becomes

    imperative that executives

    can quickly and efficiently

    understand and act on key

    information and behaviours

    within and around their

    organization.

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    Managing Complex Environments

    Develop and

    refine

    performance

    models

    Benchmark

    indicators against the

    developed

    model

    Be receptive to

    internal/external

    warning indicators

    to seize new

    business

    opportunities or

    tackle looming

    crisis.

    Assemble leading

    indicators to detect

    and manage

    business

    direction/speed

    The networked economyhas become much more

    complicated as both the

    speed of change and the

    amount of information

    available increases.

    To be competitive firmsmust end their reliance on

    backward looking

    measures and implement

    solutions which:

    Quickly spot trends

    Adapt to new

    business models

    Understand and

    anticipate behavior

    Become receptive to

    external influences

    The time factor

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    The Road to Action

    The Right Perspective

    The Right Architecture

    A Solid Foundation

    A Evolutionary Approach

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    The Right Perspective

    customers, suppliers, investors, and employees.

    Success in todays economy is about developing new and innovative

    relationships with

    Enterpr ise intel l igence mu st enable a cross -enterpr ise and cross -market integrat ion

    view to del iver last ing v alue and sus tainable com pet i t ive advantage.

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    Market Integration Strategy

    Finance and

    ManagementEmployeesInvestors

    Logistics and

    Supply Web Management

    Human Resources

    and Procurement

    Marketing, Sales, and Service

    Enterprise

    Suppliers

    Customers

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    Enterprise Perspective

    Sell Side Predictive

    Buy Side

    Customer Analytics

    Common Data ModelCross-Selling

    Product ProfitabilityPromotion Profitability

    Product TaxabilityTables

    Warehouse EfficiencyFinancial Reporting

    ChargebacksRebates/Contracts

    Tax Reporting/AuditDefense

    Brand vs. Generic

    Promotion PlanningInitiative ViabilityBusiness Integration

    Revenue From InformationFederal/State Tax Planning

    PurchasingService Levels

    Buy MarginForward Buy

    Price Change HistoryAlternate Source

    Sell Side Predictive

    Buy Side

    Customer AnalyticsCustomer PortalCommon Data Model

    Cross-SellingProduct Profitability

    Promotion ProfitabilityProduct Taxability

    Tables

    Warehouse EfficiencyFinancial Reporting

    ChargebacksRebates/Contracts

    Tax Reporting/AuditDefense

    Brand vs. Generic

    Promotion PlanningInitiative ViabilityBusiness Integration

    Revenue From InformationFederal/State Tax Planning

    PurchasingService Levels

    Buy MarginForward Buy

    Price Change HistoryAlternate Source

    Improve Sell Side

    Opportunities

    Increase Buy Side

    Profitability

    Improve Operational

    Effectiveness

    Profitability

    Analysis

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    The Right Information Integration Approach

    Product, Customer and Polycentric Architecture

    Logic

    Segment 1

    Logic

    Segment 2

    LogicSegment 3

    Workstation

    Workstation

    Workstation Workstation

    Workstation

    Workstation

    Workstation

    Workstation

    Workstation

    Logic

    Segment 1

    Logic

    Segment 2

    LogicSegment 3

    Logic

    Segment 1

    Logic

    Segment 2

    LogicSegment 3

    Customer-centric Architecture Polycentric ArchitectureProduct-centric Architecture

    Customer

    Data Server

    Value Chain

    Data Server

    Customers

    Products

    Channels

    Transactions

    Interactions

    Relationships

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    Stakeholder

    Behaviour

    Proactive

    Business

    Learn &

    Adapt

    Automated

    Decision

    Automated

    Action

    Recommend

    Action

    Business

    Interest

    & Areas of

    Concern

    New

    Behaviour

    XIE empowers complex

    business operations via

    actionable KPIs and a truly

    balanced score card. This is

    achieved by:

    Adapting scorecard KPIs

    to the stakeholder in the

    context of the current

    market environment

    Understanding the inter-

    relationship between

    drivers and their metrics

    Intelligently adopting

    KPIs based on prioritiesor market shifts.

    Removing irrelevant

    indicators when they are

    not pertinent

    Dynamic responses to

    changing metrics

    Behavioral KPIs and Dynamic Metrics for

    Business Activity Monitoring (BAM)

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    BAM Potential Users

    Call center staffwho need a real-time viewof customer and supply

    chain metrics(beyond limited content provided by the automatic call

    distributor)

    Vice presidents of saleswho want a real-time view of sales orders,

    providing better visibility into the order pipeline to complement

    historical order data and as a cross-check on sales forecasts

    Corporate treasury and pension departments, which want to monitor

    real-time global financial positions, foreign currency and economic

    information in an integrated way that the real-time data providerscannot provide

    Factory-floor managerswho require real-time material requirements

    planning (MRP), inventory and sales metrics

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    Collaborative Approach

    Each user group has a

    different angle or context

    for the same event that is

    made known to each user via

    the metacontext or

    metadata layer. Knowing

    how contexts interrelate

    enable notification andanalysis of events

    automatically. Supporting

    technology includes:

    XML for data sharing

    Alerts built into the

    system

    Workflow systems

    passing information on

    Application integration for

    real time collection,

    distribution and

    rationalization of

    information

    Source: Gartner Group

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    Wireless Business Intelligence

    Messaging (Events, Data, Images, & Transactions)

    Data Integration, Routing & Transformation

    Mainframe

    Applications

    E-Commerce

    & Web-based

    Services

    Database, Legacy,

    Messaging &

    Customer Systems

    Adapter

    Information Dissemination & Event Notification Man

    agement&

    M

    onitoring

    Users, Distributors, & Partners

    AdapterAdapter

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    The Right Architecture

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    Operational Data Sources

    Other InternalSys

    OrderMgmt

    Cust.Service BillingSales/Mktg. Support

    Data Staging Area

    Portal

    Operational Data Stores (ODS) Data WarehousesAtomic Data Store Aggregated

    Data

    Data MartsCustomer OrdersSalesProduct

    Presentation LayerPersonalization

    Services Secure ServicesPublishingServices SubscriptionServices CollaborationServices

    Access / SearchServices Download Center Workflow Services

    ApplicationServices

    ProductLine 1 ProductLine 2

    Registration Wizard Bulk ImportServices Digital Dashboard

    Customers, Partners, Employees, Suppliers

    Access Layer

    MetadataReposi

    tory

    Enterprise

    Tax

    onomy

    Access Layer

    OperationalSystems

    AnalyticalLayer

    MetadataRepository

    CommonDataModel

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    The Right Data Warehouse Foundation

    Source SystemsData Extraction,

    Transformation & Load

    Central

    Data WarehouseData Marts

    Data Access

    and Analysis

    Customer

    Applications

    Cube

    Enterprise

    Data

    Warehouse

    (Oracle)

    Operational

    Data Store

    (ODS)

    Other

    Data Mart

    Procurement

    Data Mart

    Financial

    Data Mart

    Cube

    Cube

    Query

    Analyzer

    Report

    Writer

    Data Modeling

    Tool

    ETL Tool

    Staging

    Area

    Central

    MetaData

    Staging and

    EAI/ETL Process

    OLAP Tool

    Portal

    Data Access

    and Analysis

    ERP Suite

    Legacy

    Systems

    Other

    Systems

    Other

    Data Marts

    Legacy

    Systems

    EAI Tool

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    XIE Framework

    Strategic BI

    Applications

    Operational BIApplication

    Analytical BI

    Applications

    Point-in-time

    Data Warehouse

    ETL

    Source:

    Budget &

    Forecasting

    Activity-

    Based

    Mgmt

    Profitability

    Modeling

    Industry

    Specific

    HR

    Compensation

    Planning

    Work Force

    Analytics

    ERPCRM SCM Legacy E-AppsHRMS

    CRM

    Sales

    Forecasting

    CRM

    Analytics

    Finance

    Financial

    Consolidation

    Financial

    Analysis

    SCM

    Demand

    Planning

    SCM

    Analytics

    Industry

    Industry

    Specific

    Industry

    Analytics

    Strategic

    Planning

    Balanced

    Scorecard

    Value-

    Based

    Mgmt

    Real-time

    ODS

    EAI