Six Sigma Business Intelligence Richard Foley Product Manger SAS Institute

Agenda Overview Improving Business Intelligence Improving Six Sigma Forecasting and Feedback Systems Next Steps

What is Six Sigma “Our customer’s feel the variance not the mean” -GE

Impacting Profits Profit = Revenue – Cost Increase Revenues Reduce Costs Direct Revenue Impact Indirect Revenue Impact Direct Cost Reduction Indirect Cost Reduction Acquire new customers Increase revenues from existing customers Develop new products and services Increase brand awareness Increase brand perceptions Increase customer satisfaction Increase loyalty of customers Improve productivity Displace costs Reduce capital requirements Increase speed to market Reduce customer contact / support requirements Reduce fulfillment and customer response errors

Improvement Cycle Define MeasureAnalyze Improve And Control

What is Business Intelligence “Any information that pertains to the history, current status or future projections of an organization” –from the web unknown

Behind Business Intelligence Data Warehouse Reporting Analytics

Six Sigma for Business Intelligence

Importance of Good Data  Large Bank Calculated it loses $1Billion a year due to bad and incorrect data  Government 96,000 IRS refund checks were returned as undelivered due to bad addresses  Hospital Patients have died--Loss of Trust and Life value immeasurable

Data Profiling

Business Intelligence for Six Sigma

Data Warehousing

Data Mining

Mathematical Model

Forecasting and Feedback “no process, except artificial demonstrations by use of random numbers is steady and unwavering.” Deming 1986

Continuous Quality Improvement Improvement 1 Improvement 2 Improvement 3

Quality Degradation over Time Improvement

Forecasting Data Degradation  Auto Regressive Integrated Moving Average -- ARIMA  Exponential Smoothing  Multivariate Analysis

Improvement Cycle

Next Steps “From now on, the world will be split between the fast and the slow” -Alvin Toffler

Automating Feedback

Optimizing Quality Diminishing Returns

Questions

Thank you for attending! Please remember to complete and return your evaluation form following this session. Session Code: 1902 Richard Foley SAS Institute