IBM Software Group

Business Aligned DW Roadmap

Vince Leat
ASEAN Software Group

2007 IBM Corporation

IBM Software Group

Discussion Topics

Introduction

What makes BI successful Research into Smart Companies of 21st Century

BI Framework

BI Roadmap

Case Study

IBM Software Group

Guidelines for successful BI

Step 1: Establish a BI Vision and Evangelize it

Step 2: Develop a BI Roadmap to Prioritize Initiatives
Step 3: Establish BI Governance & Funding Process
Step 4: Establish BI Competency Centre (BICC)
Step 5: Align Business and IT for the Long Haul
Step 6: Measure and Track ROI/Benefits from BI
Step 7: Build Trust in the System

IBM Software Group

Guidelines for successful BI

Step 2: Develop a BI Roadmap to Prioritize BI Initiatives

Prioritize business initiatives by ROI,
strategic value and ease of execution

Overlay the cost savings from data
mart consolidation and centralization

Develop a roadmap for integration
with minimum costs (funded through
centralization benefits) and maximum
benefits generation (through enabling
business initiatives)

IBM Software Group

Guidelines for successful BI

Step 5: Align Business and IT for the Long Haul

Extraordinarily successful BI projects all

have an enterprise scope that took years to
implement. The journey requires by a closeknit team of developers and business people
who work hand in hand to deliver actionable
information to the users who need it.

Ensure alignment between the business and

technical development teams by use joint
application development sessions to bring
the two groups together to gain a common
understanding.

IBM Software Group

Results of a recent survey comparing succeeding

vs. struggling BI in organizations.

TDWI Report Series: Smart Companies in the 21st Century: The Secrets of Creating Successful Business Intelligence Solutions

IBM Software Group

Results of a recent survey comparing succeeding

vs. struggling BI in organizations.

TDWI Report Series: Smart Companies in the 21st Century: The Secrets of Creating Successful Business Intelligence Solutions

IBM Software Group

Results of a recent survey comparing succeeding

vs. struggling BI in organizations.

TDWI Report Series: Smart Companies in the 21st Century: The Secrets of Creating Successful Business Intelligence Solutions

IBM Software Group

Results of a recent survey comparing succeeding

vs. struggling BI in organizations.

TDWI Report Series: Smart Companies in the 21st Century: The Secrets of Creating Successful Business Intelligence Solutions

IBM Software Group

BI Users Drive DW priorities.

Enterprise BI Environment
Technical Team

ERP

Extract
Clean
Model
Transform
Transfer
Load

CRM

Legacy

Business Users

Enterprise
enterprise-wide
single view of
the customer

Data Warehouse

Query
Report
Analyze
Mine
Visualize
Act

Others

Data Warehousing Environment

Analytical Environment

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IBM Software Group

Cross functional requirements add complexity

Effective decision making requires information that crosses organizational and
functional boundaries.
Business Information Needs
Supplier/
Supply Chain
Information

Financial and
Business
Performance
Information

How tightly is customer satisfaction related to

business unit performance and profitability?

Are the most satisfied customers the most

profitable?

Are incentive systems achieving the desired results?

How effective is the companys strategy?

Which parts of the business are creating value and

what parts are destroying value?

Regional compensation differences may be driving

some of the business unit performance variances

What is the ratio of customer profitability to

employee incentives, by business unit, by region?

Customer
Information

Employee
Information

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IBM Software Group

Incremental Bi/DW development with a business driven

roadmap

Staged Implementation Road map
Sequence driven by business needs and
data availability
Infrastructure work diminishes over time
90 day delivery phases
Break big phases in two

Initiation Project
Education
Requirements
Enterprise Model
Long term plan
Pilot
3-6 months

Business
Application 1
Enterprise
Modelling

Application 4
Application 3
Application 2
Modelling 2
Infrastructure 2

Infrastructure
Development
6-9 months

Source: Dr.Barry Devlin, Data Warehouse from Architecture to Implementation, Addison Wesley, 1997, pp 315-318
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IBM Software Group

What are the Business Strategy or Drivers?

Business strategies are frequently not written down or widely understood in 21st
Century enterprises. Successful BI implementations uncover and document business
drivers as a surrogate for a formal business strategy.

What is the proposed business direction and strategies? By SBU? Functional

area? What are the biggest business drivers for each?

What is the current business model? Organization model? Process model?

Who are the key information consumers? What are their key decisions &
analytical requirements?

Where are the people who will be consume information and intelligence?

What are the BI implications to the business drivers?

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IBM Software Group

The IBM Business Intelligence Framework

Understand
Understand
the Enterprise
the Vision,
Vision,
Mission,
Mission,
Business Strategy & Operating Strategies

Planning
The
Business

Process
Measurement
And
Control

External
Reporting

Business
Performance
Management

Enhance decision making capabilities through analytics.

Tools & Applications

Data

Technology Infrastructure

Decision-Making, Common Language,

Change Management/Communications,
Benefits Realization

Enterprise Measurement & Reporting

Vision and Guiding Principles

Business Drivers, Strategic Performance Measures,

Strategy Mapping, Business Modelling,
Balanced Scorecard

The Business
Intelligence
framework provides
a common
framework to
describe your BI
needs, solutions
and approaches. It
also includes the
vision, roadmap and
governance for
designing a fully
integrated business
intelligence
environment, and
approaches for
applying enabling
technologies.
14

IBM Software Group

BI Strategic Framework
Alignment with the enterprise
business and operational strategies.

Translating the Strategies

into tangible objectives, and
supporting those objectives
with a set of balanced
strategic measures aligned
across the organization.

Understand
Understand
the Enterprise
the Vision,Vision,
Mission,
Mission,
Business Strategy & Operating Strategies

Planning
The
Business

Process
Measurement
And
Control

External
Reporting

Business
Performance
Management

Enhance decision making capabilities through analytics.

Tools & Applications

Managing each core business

process with quality and
process indicators. Controlling
each process for repeatability
and sustainability.
Optimizing total business
performance by managing
across core processes.
Address the critical success
factors in delivering an
integrated environment..

Data

Technology Infrastructure

Select and implement

appropriate tools and
Applications.

Decision-Making, Common Language,

Change Management/Communications,
Benefits Realization

Alignment around a
common enterprise
measurement & reporting
vision and
guiding principles.

Enterprise Measurement & Reporting

Vision and Guiding Principles

Business Drivers, Strategic Performance Measures,

Strategy Mapping, Business Modelling,
Balanced Scorecard

Ensuring an integrated set of

planning processes at strategic
and operational levels are in
place to maximize deployment
of resources, and cascade
objectives to individual
performance.

Meeting regulatory/compliance
reporting. Effectively
communicating business strategies
and performance to investors and
external analysts.

Planning, designing, and

implementing a consistent
agile infrastructure.

Support enterprise
measurement and reporting
with consistent and high
quality data.

Enhancing decision making

capabilities of strategic
leaders, business managers,
and operational associates by
embedding analytical methods
for advanced insight.
15

IBM Software Group

BI Road Map
STAGE 4.a

STAGE 1

M
O
B
I
L
I
Z
E

Integrated Roadmap
Development &
Implementation Planning

Business Strategy
Review
STAGE 3

Future State Development

& Opportunities
Identification
STAGE 2

STAGE 4.b

Baseline Assessment

Quick Win Path

Key Questions:
STAGE 1
What is the proposed
business direction and
strategies? By SBU?
Functional area?
What is the current
business model?
Organization model?
Process model?
Who are the key
information consumers?
What are their key
decisions & analytical
requirements?
What are the BI
implications to the business
strategy?

STAGE 2
What are the existing & planned
BI initiatives? Do they support
business direction & strategy?
How well do the technology
infrastructure and analytical tools
support decision making? Are
the analytical processes
established and embedded?
What is quality and availability of
the underlying data assets? What
is the level of application and
technology support?
How skilled are the people? Is
the knowledge adequate in
performing job functions

STAGE 3
What is the BI vision and guiding
principles?
What are the gaps of the
existing/planned analytical initiatives
in supporting business direction?
What are some quick win
opportunities?
What additional projects are required
to close the gaps?
What analytical processes need to be
implemented and institutionalized?
What are the implications to the
enterprise applications and data
assets?
What are the governance issues?

STAGE 4
How are BI projects
prioritized?
How can the initiatives be
appropriately resourced and
planned?
What is the business case
for implementation?
What change programs are
necessary to implement the
plan?
What is the framework for
benefits realization?

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IBM Software Group

Business Initiatives Road Map for Data Warehousing - Illustrative

Key business Imitatives

Business Solutions
Templates (BSTs)

IBM Banking Data Warehouse (BDW)

Customer
Relationship
Management

Financial

Management

Risk

foundation

intermediate

advanced

know your business

enhance your business

optimize your business

customer &
market profiling

cross sell

customer loyalty

campaign
management

leads
management

customer
segmentation

wallet share

acquisition

retention

event based
marketing

Product
Analysis

hannel
profitability

campaign
profitability

ACB

Life Time Value

Account
profitability

Product
Profitability

customer
profitability

profitability

organization
profitability

credit risk profile

exposure
analysis

liquidity analysis

Basel II

Operational Risk

Portfolio analysis

NPLS

interest rate risk

analysis

S&A

market risk

Cash flow
analysis

Net asset
analysis

Income analysis

SOX

Adequacy
analysis

ECB reporting

Suspicious
activity analysis

Regulatory
capital

Equity change
analysis

Transaction
activity analysis

financial mgt
accounting

structured
finance analysis

liquidity analysis

interest rate
sensitivity

credit loss
provision

central bank
reporting

income analysis

funds maturity
analysis

net interest
margin analysis

Management

Regulatory
Compliance
Management

Asset &
Liability

Management

capital
allocations 17

IBM Software Group

Road Map for Business Intelligence Phase 1 CRM

Business Solutions
Templates (BSTs)

IBM Banking Data Warehouse (BDW)

Customer
Relationship
Management

Financial

Management

Risk

foundation

intermediate

advanced

know your business

enhance your business

optimize your business

customer &
market profiling

cross sell

customer loyalty

campaign
management

leads
management

customer
segmentation

wallet share

acquisition

retention

event based
marketing

Product
Analysis

Channel
profitability

campaign
profitability

ACB

Life Time Value

Account
profitability

Product
Profitability

customer
profitability

profitability

organization
profitability

credit risk profile

exposure
analysis

liquidity analysis

Basel II

Operational Risk

Portfolio analysis

NPLS

interest rate risk

analysis

S&A

market risk

Cash flow
analysis

Net asset
analysis

Income analysis

SOX

Adequacy
analysis

ECB Reporting

Suspicious
activity analysis

Regulatory
capital

Equity change
analysis

Transaction
activity analysis

financial mgt
accounting

structured
finance analysis

liquidity analysis

interest rate
sensitivity

credit loss
provision

central bank
reporting

income analysis

funds maturity
analysis

net interest
margin analysis

Management

Regulatory
Compliance
Management

Asset &
Liability

Management

capital
allocations 18

IBM Software Group

Road Map for Business Intelligence CRM + Profitability

Business Solutions
Templates (BSTs)

IBM Banking Data Warehouse (BDW)

Customer
Relationship
Management

Financial

Management

Risk

foundation

intermediate

advanced

know your business

enhance your business

optimize your business

customer &
market profiling

cross sell

customer loyalty

campaign
management

leads
management

customer
segmentation

wallet share

acquisition

retention

event based
marketing

Product
Analysis

Channel
profitability

campaign
profitability

ACB

Life Time Value

Account
profitability

Product
Profitability

customer
profitability

profitability

organization
profitability

credit risk profile

exposure
analysis

liquidity analysis

Basel II

Operational Risk

Portfolio analysis

NPLS

interest rate risk

analysis

S&A

market risk

Cash flow
analysis

Net asset
analysis

Income analysis

SOX

Adequacy
analysis

ECB Reporting

Suspicious
activity analysis

Regulatory
capital

Equity change
analysis

Transaction
activity analysis

financial mgt
accounting

structured
finance analysis

liquidity analysis

interest rate
sensitivity

credit loss
provision

central bank
reporting

income analysis

funds maturity
analysis

net interest
margin analysis

Management

Regulatory
Compliance
Management

Asset &
Liability

Management

capital
allocations 19

IBM Software Group

Road Map for Business Intelligence CRM + Profitability+

Compliance
Business Solutions
Templates (BSTs)

IBM Banking Data Warehouse (BDW)

Customer
Relationship
Management

Financial

Management

Risk

foundation

intermediate

advanced

know your business

enhance your business

optimize your business

customer &
market profiling

cross sell

customer loyalty

campaign
management

leads
management

customer
segmentation

wallet share

acquisition

retention

event based
marketing

Product
Analysis

Channel
profitability

campaign
profitability

ACB

Life Time Value

Account
profitability

Product
Profitability

customer
profitability

profitability

organization
profitability

credit risk profile

exposure
analysis

liquidity analysis

Basel II

Operational Risk

Portfolio analysis

NPLS

interest rate risk

analysis

S&A

market risk

Cash flow
analysis

Net asset
analysis

Income analysis

SOX

Adequacy
analysis

ECB Reporting

Suspicious
activity analysis

Regulatory
capital

Equity change
analysis

Transaction
activity analysis

financial mgt
accounting

structured
finance analysis

liquidity analysis

interest rate
sensitivity

credit loss
provision

central bank
reporting

income analysis

funds maturity
analysis

net interest
margin analysis

Management

Regulatory
Compliance
Management

Asset &
Liability

Management

capital
allocations 20

IBM Software Group

Road Map for Business Intelligence CRM + Profitability+

Compliance + Risk Management + ALM
Business Solutions
Templates (BSTs)

IBM Banking Data Warehouse (BDW)

Customer
Relationship
Management

Financial

Management

Risk

foundation

intermediate

advanced

know your business

enhance your business

optimize your business

customer &
market profiling

cross sell

customer loyalty

campaign
management

leads
management

customer
segmentation

wallet share

acquisition

retention

event based
marketing

Product
Analysis

Channel
profitability

campaign
profitability

ACB

Life Time Value

Account
profitability

Product
Profitability

customer
profitability

profitability

organization
profitability

credit risk profile

exposure
analysis

liquidity analysis

Basel II

Operational Risk

Portfolio analysis

NPLS

interest rate risk

analysis

S&A

market risk

Cash flow
analysis

Net asset
analysis

Income analysis

SOX

Adequacy
analysis

ECB Reporting

Suspicious
activity analysis

Regulatory
capital

Equity change
analysis

Transaction
activity analysis

financial mgt
accounting

structured
finance analysis

liquidity analysis

interest rate
sensitivity

credit loss
provision

central bank
reporting

income analysis

funds maturity
analysis

net interest
margin analysis

Management

Regulatory
Compliance
Management

Asset &
Liability

Management

capital
allocations 21

IBM Software Group

Road Map Case Study

2007 IBM Corporation

IBM Software Group

BI workshop and BI Roadmap development

The BI Roadmap presented was
developed based on the results of 2
workshops which were conducted in the
June 2006.
The objectives of the first workshop
was to create a target BI vision based on
feedback from participants which was key
business stakeholders across the banks
business units.
The objectives of the second workshop
was to better understand the current
and
target
BI
capabilities
from
participants which was all information
users across retail banking.
The results from these 2 workshops
were consolidated to understand current
BI challenges faced by the bank as well as
to identify potential BI initiatives based on
the banks business strategies. These are
then prioritized into the BI Roadmap.

Approach of BI Roadmap Development

Key Business
Stakeholders
across business units

Workshop
Workshop 11
To
To create
create
target
target BI
BI vision
vision

Workshop
Workshop 22

Understand
Understand current
current
challenges
challenges to
to identify
identify
potential
potential BI
BI initiatives
initiatives

To
To understand
understand
current
current and
and
target
target BI
BI
capabilities
capabilities

XXXXs Business
Focused BI Roadmap
(Retail Banking)

Information Users
(Retail Banking)

23

IBM Software Group

Key observations from the workshop

Yes, we recognize that there are
currently some challenges in our
BI initiatives but we believe that BI
and analytic information is a
strategic asset

We have big problems with our

BI infrastructure and we
CANNOT work without fixing it

BI Perception
Gap

Key Business
Stakeholders

where are we heading with

a broken tow cable?

Information Users
(Retail Banking)

across business units

Already understands the strategic value that BI can bring but we need to
identify and address some key BI Inhibitors today
24

IBM Software Group

BI Capability Profile supports our observations.

BI Capability Profile
Question 5
Question 19
Question 18
Question 17
Question 16

5
4
3
2
1

Question 6
Question 7
Question 8
Question 9

Question 15

Question 10

Question 14
Question 13
current capability
target capability
best capability
worst capability

Question 11
Question 12
1
2
3
4
5

No capabilities
Awareness
Developing
Competent
Leading

As part of the workshop activity, we asked

the key business stakeholders to complete a
questionnaire. Through the questionnaire, we
performed a BI capability profile.
The profile shows that the banks key
business stakeholders feel the bank is
moving towards Developing in most of BI
capabilities today. At the same time, they feel
that the should grow towards Leading. This
indicates their believe in BI being a strategic
asset.
Question 13 is the capability that scored the
highest. It shows that the bank believes that
the current culture provides support for
informed actions based on BI to support
the corporate strategy.
Question 12 is the capability that scored the
lowest. It shows that employees are not
aware or understand current strategies,
thus the BI perception gap.
25

IBM Software Group

During the workshops, we used the 4 streams of work in

the BDW project to assess business adoption as well as BI
Inhibitors.
Assess Business Adoption & BI Inhibitors
Customer
Relationship
Management

Performance
Management

Banking Data
Warehouse /
Business Intelligence

Stabilization
Gearing for business Additional data for
Integration
deployment in 2006
other business
Cross-sell (Group)
usages
Measurement of
Initiatives for other
sales effectiveness
analytics accessible
and encouragement
by the users.
of usage
Additional
campaigns and data
mining initiatives.

Risk Management

Portfolio
management
Segmentation
Single view of the
customer
Basel II
others

26

IBM Software Group

We found 3 main categories of BI Inhibitors, majority

of which are basic BI fundamental steps
key technical inhibitors

key capabilities inhibitors

BDW long load time

Operational CRM system usability
and configuration issues

data issues (quality, availability,
accuracy, tagging and coding)

DW vs. BDW

no access to data (profitability
figures) and systems (BDW)

disparate (and lacking of in some
cases) reporting platform

data requirements for Basel II

closed-loop campaign marketing

process not in place

lack of a central pool of competent
BI analytics resources

lack of focus of understanding
customer behaviors and needs

primarily product-push selling

lack of multi-channel capabilities

lack of understanding of profitability
model

no view on total group exposure

Key BI
Inhibitors
in the
Bank
today

Assess Business Adoption/Usage & BI Inhibitors

Customer
Relationship
Management

Perfor
mance
Manag
ement

Banking Data
Warehouse /
Business
Intelligence

Risk
Manag
ement

key organization inhibitors

lack of customer service excellence focus

yet to finalize/share/educate customer profitability

need customer management strategy driven by
customer profitability

no central BI committee to own and drive BI-related
decisions

large number of products with no real rationalization

causing integration & training issues

no sharing of information and data across BUs

current business priorities are around M&A

over-ambitious in current BI initiatives causing lost
of confidence across the bank
27

IBM Software Group

therefore our strategy moving forward should be

focused around getting the fundamentals right, in order to
better leverage past BI investment.
Proposed BI Strategy for the Bank
1
P
e
r
f
R
o
i
r
s
m
Banki
k
a
Assess
Business
ng
n
Adoption/Usage
&
BI
Data
M
c
Wareh
a
Inhibitors
e
ouse /
n
a
M Busin
ess
g
a
Intelli
e
n
gence
m
a
e
g
n
e
t
m
e
n
t

Key BI
Inhibitor
in XXXX
today

Custo
mer
Relati
onshi
p
Manag
ement

Findings on current BI
Inhibitors suggest that most
are BI fundamentals

Get the BI fundamentals right and put

in the relevant components to leverage
on past BI investments

Build trust in the BI initiatives once the

fundamentals are in place
3

Prioritize new BI initiatives based on

business objectives

28

IBM Software Group

Based on our understanding of the Banks current

situation, we propose the following BI initiatives for
these BI strategies.
BI Strategy

Get the BI fundamentals right and

put in the relevant components to
leverage on past BI investments

Build trust in the BI initiatives

once the fundamentals are in place

Stabilize the operations of the current BDW

infrastructure and address the long data load time
issue

Setup a BI Steering Committee with relevant BI

governance policies and procedures to oversee all BI
initiatives across the bank

Embark on an enterprise-wide data cleansing

project addressing data quality, availability, accuracy,
tagging and coding issues

Review the ongoing operational and maintenance

resources, procedures, roles and responsibilities for
the BDW

Address the CRM

configuration issues

Define and differentiate the roles of BDW vs DW

system

usability

and

Investigate and assign data access privileges to

relevant information users. If necessary, construct
user specific data marts.

Rationalize,
consolidate
and
revitalize
enterprises end-user reporting infrastructure

the

Define a business case for BI and actively manage

and monitor progress

Setup relevant skills, capabilities and usage training
for different information user groups

Setup a BI Competencies Centre so that
specialized analytical skills can be shared across the
bank

29

IBM Software Group

At the same time, we have also proposed new BI

initiatives based on the banks top 3 business
objectives.
3
BI Strategy

Prioritize new BI initiatives based

on business objectives

Top 3 Business Objectives (based on the

Grow market share

consolidated results of the BI questionnaire returns from key

business stakeholders)

6%

3% 3% 0%

9%
grow market
share

improve
risk mgt

Increase shareholders
value

increase
shareholders
value

32%

Deploy an analytical marketing campaign process

for better targeting

Develop
an
industry-strength
campaign
management infrastructure that integrates with the
channels to form closed-loop marketing for higher
volumes

Utilize event-based marketing for better quality

leads that address customer needs

Deploy multi-channel strategies and integration for

common customer message

Review CRM Roadmap and revitalize customer

service focus initiatives

Review, finalize and deploy customer profitability

model across the bank

Develop
customer
differentiation strategy
profitability

Rationalize product range and product strategies

Review all current risk initiatives

IBasel II readiness and data requirements study

Basel II implementations

35%

others
12%

Improve risk
management

management
and
based on customer

30

IBM Software Group

BDW Road Map.

M1

M4

M7

M10

M13

M16

M19

M22

M24

BI Initiatives
grow
grow
market
market share
share

increase
increase
shareholder
shareholder
value
value

analytical mktg
campaign mgt

event-based mktg

CRM roadmap
customer
profitability

customer mgt stgy

review
CRM
roadmap

rationalize products
improve
improve
risk
risk
management
management

multi-channel strategy & integration

review risk initiatives

Basel II readiness

review
CRM
roadmap

review
CRM
roadmap

Basel II implementation (FIRB)

BI Enablers
BI Steering committee & governance
build
build
trust
trust in
in BI
BI

BDW ops
assign data
privileges

BI
BI
fundamentals
fundamentals

rationalize
report infra

BICC

BI biz case

BI training

DM role review

BDW Infrastructure

review BI
roadmap, biz
case and ops

review BI
roadmap, biz
case and ops

review BI
review BI
roadmap, biz roadmap, biz
case and ops case and ops

BDW & DM consolidation

data cleansing

CRM system usability

Infrastructure
Roadmap

endenduser
BDW
user
BDW stabilized
stabilized
access
access
reports
reports
platform
platform
profitability
profitability
deployed
deployed

CRM
CRM
functional
functional

campaign
campaign
mgt
mgt

event
event
rules
rules
engine
engine

marketing
marketing
opt
opt engine
engine

BDW
BDW && DM
DM
consolidated
consolidated

Basel
BaselIIII
compliance
compliance

compliance
compliance
reports
reportsfrom
from
BDW
BDW
multimultichannel
channel

31