ACACSO Annual Meeting November 11, 2011 Presented by Joel Christensen Using Business Intelligence to Drive Performance

 Over 20 years of rail industry experience  Specialization in Technology  Prior experience at CN Intermodal  Joined RMI in 1997 Joel Christensen RMI Account Executive Today’s Presenter 2

 Business Environment & Drivers  Business Intelligence  How are Railroads Using Business Intelligence?  Summary & Questions Presentation Agenda 3

Business Environment and Drivers Business Environment and Drivers 4

 Rapidly Changing Conditions  Accountability and Transparency  Need to Improve Decision Quality  Need to Control Costs and Create Efficiencies Today’s Business Pressures Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA 5

Today’s Pain Points Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA 6 Disconnected Business Systems Poor Data Quality & Inaccuracies Not Easy to Access Business Data or Data is “Lost” in line of Business Application Decision Makers Lack Real-Time Business Insights Multiple or Inconsistent versions of “the truth” Manual, Time Consuming Processes Too Much Data to Decipher and use for Decision Making

Faster, Better Decisions  Accurate, complete information  Actionable analysis  End-to-end visibility into the business Focus on Performance  Manage metric by exception  Proactively detect potential issues as early as possible  Streamline and optimize business processes  Root cause analysis Agility, Adaptability and Efficiency  More actions to be taken  Less time left to take the actions  More information to be analyzed  More certainty needed in predictions Today’s Business Needs Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA 7

How Are You Getting Your Information? Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA 8

Still Relying on Spreadsheets? Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA 9 Question: Where are Companies Managing Performance Data Today? Answer: Spreadsheets and Presentation Files.

Issues and Risks with Relying on Spreadsheets? Change Management  Who has the “official” latest version?  How many spreadsheets have to be updated when a KPI changes?  How responsive can the organization be to change? Information Visibility and Transparent Insight  How long does it take to “scrub” and present data?  Does management have real-time visibility into the latest performance status of an objective?  Is there a “single source” of truth? Margin of Error  Inherent in manual data input and manual spreadsheet routing  How long does it take to recreate lost or erroneous data? Knowledge Retrieval  How is information shared in a decentralized organization? 50% of companies today are managing performance data in spreadsheets* * Source: BSCOL Member Survey, Spring 2006 Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA 10

Business Intelligence 11

Transforming Business Data Into Intelligent Decisions So what is Business Intelligence? Monitoring Dashboards, scorecards and alerts Analyzing Drill down, exception reports, root- cause analysis, multidimensional analysis Reporting Detailed operational data Sharing standardized reports Planning Create plans, models and scenarios, which are then fed back into the monitoring layer and encoded as targets and thresholds. “A broad category of applications and technologies for gathering, storing, analyzing, sharing and providing access to data to help users make better business decisions” - Gartner ? Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA 12

Questions That Define Business Intelligence Monitor Plan Analyze What happened? What is happening? What will happen? What do I want to happen? Why? Continuous Business Improvement 13 Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

xx Ad-Hoc Reporting – Enables non-technical users to quickly and easily answer business questions. Scheduled Reports – Allows users to format and deliver data as meaningful information to the right people at the right time throughout the organization. KPI Dashboards – Performance Management tools designed to track and analyze key business metrics via digital dashboards, scorecards and alerting. Web Enabling Work Tools Analytics Work Flow Reporting Dashboards Data Mining Performance ManagementDecision Making Tools Metrics & KPI’s Querying Scorecards Business Intelligence Features Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA 14

Elements of Good Business Intelligence Relevance Timeliness Accuracy Flexibility Ease of Use Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA 15

Base: 82 IT decision-makers (percentages do not total 100 because of rounding) How Widespread is Organization’s Adoption of BI Source: August 2008 Global BI And Data Management Online Survey 16 Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

Understanding the BI Audience 17 Operational and Clerical Execute Requires Reporting and Work Tools Managers and Knowledge Workers Tactical Decisions Requires Analytics Slicing and Dicing with Visual Feedback For Tactical Decisions and to Guide Strategic Decisions Executives Strategic Decisions Requires Dashboards Quick Snapshots, Highlighting Indicators for Instant Decision Making Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

Transforming Business Data Into Intelligent Decisions SALES MARKETING CUSTOMER SERVICE HR OPERATIONS IT FINANCE Who are the Users of BI? Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA 18

The Keys to Success with BI “Through 2012, more than 35% of the top 5,000 global companies will regularly fail to make insightful decisions about significant changes in their business and markets.” Despite the importance of BI, The Gartner Group Predicts: Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA 19

The Keys to Success with BI  BI must be aligned with the company’s business strategy  Information and analysis must be actionable  BI should change the way a company conducts business by: o Improving business processes, and o Transforming decision making to a more data/fact/information driven activity  Information should be easy to grasp and timely  BI should help execute the business strategy, not impede it! Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA 20

Don’t Measure to Just Measure…… Meaningful Performance Metrics 21 Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

Three Questions that Drive Performance IT SALES MARKETING CUSTOMER SERVICE HR OPERATIONS PRODUCT DEVELOPMENT FINANCE Why? How are we doing? What should we be doing? 22 Driving Performance Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

Driving Performance Transforming Business Data Into Intelligent Decisions “Continuous Improvement BEATS Postponed Perfection”  Assess, Evaluate, the Rethink your KPI’s  Self audit & best practices/performance  One must visualize metrics first before creating them  Document your KPIs o What are you measuring? o Why are you measuring? o How are you measuring? 23 Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

How Railroads are using Business Intelligence 24

Revenue Management Rating & ISS Performance –Yearly Scorecard 25 Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

Revenue Management ISS Performance –Monthly Scorecard 26 Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

Revenue Management Rating Activity Report 27 Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

Inventory Management Dashboard Each KPI shows various inventory measures: S/F/P Cartype L/E Status Location Drill-down provides details on each KPI down to individual car id level OPERATIONS 28 Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

OPERATIONS Car Dwell Dashboard 29 Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

OPERATIONS Idle Car Dashboard With Drill-Down 30 Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

Summary  Information is growing at the fastest rate ever  How you manage information has a direct tie to how successful the business will be  BI is no longer an “optional” element of business  Business Intelligence is about making effective business decisions  The key to success is effectively using metrics & KPI’s to drive business performance  Remember BI is a Journey that can transform the way you do business 31 Business Environment and Drivers | Business Intelligence | How Railroads use BI | Summary & QA

32 Questions