Business Intelligence and “U” Steve Gillard and Peter Radcliffe University of Minnesota Analysts Group July 3, 2008

What is Business Intelligence? Business intelligence and analytics represents an integrated set of technologies and processes that use data to analyze and understand organizational performance Note it is not just a piece of software you purchase and deploy, but involves people, policies, philosophy, and technology

Other similar terminology In addition to business intelligence, a number of other terms are used to describe a similar approach, such as: Fact-based decision-making Evidence-based decision-making Data-informed decision-making Business analytics (can be thought of as a subset of BI) All of these concepts revolve around using facts or evidence as a basis for decisions, in place of exclusive reliance on instinct and experience

Foundations of Business Intelligence Foundations of business intelligence outline components that are the prerequisites to achieving effective data driven decision making throughout the University. Also illustrated here are interdependencies between parts of the model which come together to form the foundation of what leads to business intelligence framework. Elements of effective decision making include: An organizational component Infrastructure layer Data layer Operational layer Strategic layer

Business Intelligence and Analytics Business intelligence and analytics represents an integrated set of technologies and processes that use data to analyze and understand organizational performance. Business Intelligence helps answer five questions What happened? What is happening? Why is it happening? What will happen? What do we want to have happen?

BI Tools Oracle/PeopleSoft/Hyperion Microsoft SQL Server “Homebrew” systems Many other vendors exist Cognos, SAP, etc.

Our Integrated BI Offering SharePoint Server SEARCH DELIVERY Reports Dashboards Excel Workbooks Analytic Views Scorecards Plans CONTENT MANAGEMENT COLLABORATION END USER TOOLS & PERFORMANCE MANAGEMENT APPS Excel PerformancePoint Server BI PLATFORM SQL Server Reporting Services Analysis Services SQL Server DBMS SQL Server Integration Services

Oracle BI Architecture

Enabling Concepts for BI Strategy Maps – representations of an organization’s mission, goals, and activities Balanced Scorecards – representations of different perspectives on an organization and its performance Key Performance Indicators – measures that represent how successful and organization is in different domains

The Strategy Map and the Balanced Scorecard bridged the strategy implementation gap. They link leadership at the top to management of initiatives, process improvements and employees’ everyday actions. MISSION Why we exist VALUES What’s important to us VISION What we want to be STRATEGY Our game plan STRATEGY MAP Define & communicate priorities and focus BALANCED SCORECARD Measure performance against priorities INITIATIVE and PLANNING PROCESS Manage actions and resources to drive change EMPOWERMENT / PERSONAL OBJECTIVES Motivate employees STRATEGIC OUTCOMES Satisfied SHAREHOLDERS Delighted CUSTOMERS Efficient and Effective PROCESSES Motivated & Prepared WORKFORCE

Strategy Mapping Connects mission and goals to activities and projects and through that to measures Can feed budgetary decisions by illustrating what initiatives fit goals Can inform selection of performance measures

Balanced Scorecard Set of perspectives from which to view organization Customer Internal Learning and Growth Financial

Bizspeak and the Ivory Tower These organizational performance management tools were created in the business world Terminology imported from business can irritate academics More importantly, a business-based model can place focus in the wrong places (e.g. the “bottom line”) Both terminology and models must be adapted to higher education

The “C” word Business philosophies applying business intelligence, strategy maps, and balanced scorecards often refer to themselves as “customer-focused”, and devote considerable attention to customer satisfaction. Thinking about the individuals and entities served by higher education as “customers” often encounters significant resistance within academia.

“University-Friendly” Terms From a workshop on using the balanced scorecard in higher education by Jan Lyddon and Bruce McComb Stakeholder Perspective To achieve our mission, how must we look to our stakeholders? Internal Perspective To satisfy our stakeholders, at which processes must we excel? Learning and Growth Perspective To achieve our mission, how must our organization learn and improve? Fiduciary Perspective If we succeed, how will we look to our taxpayers?

UMD’s Strategy Map for Improving Graduation Rates Core Process Area UMD Retention Areas Strategic Priorities See “Literature Review” Opportunities for Action See “Best Practices” and “Idea Brainstorming” New Initiatives (2006-07) See “TLP Projects”

UMD’s Strategy Map: Core Process Areas Fit: Interests and educational goals of students are aligned with UMD, its programs, and regional setting. Financial: Students have access to sufficient resources to plan for and invest in their education. Learning: Students are engaged in challenging learning activities leading to timely degree completion. Support: Students are connected to a strong network of caring faculty, staff, and students. Culture: Students, faculty, and staff are valued participants in, and contributors to, a diverse and inclusive community that is educationally purposeful.

SMDC FY06-08 Strategy Map Mission: SMDC brings the soul and science of healing to the people we serve. Vision: SMDC will be the best place to work and the best place to receive care. We will pursue our mission and vision through a focus on Quality, Safety and Value Service Excellence Clinical Excellence Management Excellence Customer To achieve our focus on Quality, Safety & Value, how should we appear to our internal & external customers? C1 Quality Relationships Timely Care Patient-centered Care Equitable Care C2 Clinical Expertise Effective Care Safe Care C3 Customer Value Efficient Care Internal Processes To satisfy our customers, at which operational & quality processes must we excel? P2 Provide easy, timely, coordinated access to health care services P6 Optimize physician & staff productivity P1 Right patient, right care, right process, best outcome P5 Design & implement coordinated care models to effectively manage disease processes P4 Create direct access to specific programs & services P7 Excel in efficient & effective operations P3 Capital investment emphasis in technology & facilities to support clinical & financial objectives Learning & Growth How will we sustain our ability to change and improve as a system L1 Create an environment that has an expectation of consistently delivering quality health care L2 Emphasize entity & system missions L4 Engage physician leaders & managers as partners in success with SMDC L3 Recruit & develop people to outstanding levels of performance Financial To financially sustain our Mission, on what must we focus? *Cancer,Cardiovascu-lar,Digestive, Surgery, Children Specialty Services F1 Achieve a 3% Operating Margin by FY08 to sustain our Mission and achieve our Vision *F2 Grow key specialty services & programs F5 Capture earned revenue F4 Redesign Duluth & Superior primary care strategy F3 Restructure regional clinic business & clinical models Copyright © 2006 by St. Mary’s/Duluth Clinic Health System

Theme: Operating Efficiency The Strategy Map and Balanced Scorecard should represent a complete program of action. Strategy Map Balanced Scorecard Measurement Target Market Value Seat Revenue Plane Lease Cost 30% CAGR 20% CAGR 5% CAGR FAA On-Time Arrival Rating Customer Ranking # Repeat Customers # Customers #1 70% Increase 12% annual On Ground Time On-Time Departure 30 Minutes 90% % Ground Crew Stockholders Strategic Awareness Strategic Job Readiness Info System Availability 100% Yr 1 - 0% Yr 3 - 90% Yr 5 - 100% Measure $XXXX Action Plan Initiative Budget Customer Loyalty Program $XXX On Ground Cycle Time Optimization Quality Management ESOP Ground Crew Training Crew Scheduling System Rollout CRM System Total Budget Execute Theme: Operating Efficiency Objective Financial Profits & RONA Profitability Grow revenues Fewer planes Grow Revenues Fewer Planes Customer Attract & Retain More Customers Flight is on-time Lowest prices Attract and retain more customers On-time Service Lowest Prices Internal Fast Ground Turnaround Fast ground turnaround Learning Ground crew aligned with strategy Develop the necessary skills Develop the support system Ground Crew Alignment Strategic Systems Crew Scheduling Strategic Job Ramp Agent Communicate

Alignment Effort to be more strategic in initiatives and foster greater “alignment” Alignment means having a stronger connection between the purposes and functions of units and initiatives and the strategic goals of the organization Funding is directed toward initiatives that promise progress on strategic goals

Strategic Context of the UofM “Top 3” goal Strategic positioning process Metrics and measurement efforts Increased focus on quality and continuous improvement New EFS reporting tools and environment

BI and EFS EFS Project views reporting instance as a step toward a business intelligence system for the UofM Reporting instance provides a variety of tools for traditional reporting, parameterized queries, and ad-hoc queries (but not analytics directly) Key will be eventual shift of other topic areas to same reporting approach

BI and EFS: Reporting Tools The “triangles” chart shows how the EFS reporting environment tools fit into a concept of business intelligence Moving from End User to Enterprise Analyst, tool capabilities ascend the “Analytics” chart Goal is to provide tools across the spectrum of users

BI and Strategic Positioning Articulated mission, values, goals Collection of initiatives launched to achieve goal Measurements still being discussed Strategic vs operational uses for BI

Business Intelligence Dashboard This business intelligence dashboard summarizes our evaluation of key foundational elements at the University of Minnesota using the stoplight metaphor. This approach offers an ‘at a glance’ overview of how the institution as a whole is doing relative to these components. Next steps Develop common data definitions Develop staff training resources Improve distribution of analysis skills Create a sustainable pipeline for BI projects Build a collaborative community of BI practitioners Develop a shared vision of BI for the U of MN

BI and Skills Capacity Do we have the analytic capacity to make use of information? Do we have analytic capacity in the right places? Do we have the capacity to provide analytic training? Do we have coherent training to produce clean data?

BI and UofM Culture Do we have an agreement on how to connect our initiatives to our goals and how to measure progress? Are we prepared to make budgetary choices on the basis of measures and strategy?

BI and UofM Infrastructure What kinds of tools do we need to put in place? How will those tools fit with existing software and staffing?