APPA Business & Financial Conference 2006 September 18, 2015 Business Intelligence Solutions for the Workplace Enhancing Analytical Reporting Presented by: Jason Strain, Senior Project Manager, MEAG Power Some content courtesy of John Hack, Director of Solution Development, OutlookSoft Corporation

APPA Business & Financial Conference 2006 September 18, 2015 Agenda  Evolution of Business Intelligence (BI)  How we started with a BI/Business Performance Management (BPM) software solution  New business problem for 2006  Our chosen solution  Sample reports  Overview of the analysis website  Live demo  Lessons learned

APPA Business & Financial Conference 2006 September 18, 2015 Evolution of BI to true Performance Management What happened?  Reporting Performance Why is it happening? »Understanding Performance What to do about it? »Achieving Performance

APPA Business & Financial Conference 2006 September 18, 2015 From Business Intelligence…

APPA Business & Financial Conference 2006 September 18, 2015 …to Performance Management…

APPA Business & Financial Conference 2006 September 18, 2015 To Predictable Performance

APPA Business & Financial Conference 2006 September 18, 2015 Our Entry Into Business Performance Mgt.  Initial project was to replace a system of cost center budgeting spreadsheets.  Justified the implementation cost just by comparing it to products that only did budgeting as well as custom development.  Purchased OutlookSoft in the spring of  Worked with a consultant to guide the implementation that went live successfully in the summer of  Used by 40+ cost center managers and their assistants to budget the basics of salaries, travel, training, etc.  Now distributing monthly variance reports online via the OutlookSoft SharePoint Accelerator.

APPA Business & Financial Conference 2006 September 18, 2015 New Business Problem for 2006  Market volatility in natural gas supply and hourly market prices raised concerns over dependability of a once per year budget.  Decided to run the hourly budget model every month and reforecast the entire year.  The ideal solution would be able to report a combination of year to date actuals and remaining year forecasts to produce a rolling year end reprojection.

APPA Business & Financial Conference 2006 September 18, 2015 Solution Requirements  Needed a way to compile the rolling year end reprojection  Use as many months of actual bills as possible  Do not change the last forecast the board reviewed for the next month  Utilize as much of the latest forecast as possible for future months.  Needed to compare any combination of scenarios: Actual, Budget, Forecast, and Reprojection.  Needed quick turn around whenever the source system data was updated.  Needed the flexibility to create new reports and graphs quickly.  The numbers had to tie to the source systems.  Analysis needed to include not just dollars, but also energy and capacity.

APPA Business & Financial Conference 2006 September 18, 2015 Decision  Faced with 2 options  Change the source transactional systems  Use OutlookSoft  Built the Proof of Concept using OutlookSoft  No consultants needed  Quick implementation (4-6 week)  Management saw the reports they wanted  Bonus of a web-based, color coded site for quick analysis  Board of Directors is now getting this information each month

APPA Business & Financial Conference 2006 September 18, 2015 Solution Architecture Billing Database Budget Database Monthly Bill Results Monthly Forecast Board Approved Budget Compile Reprojection Combine Actual Bill Results with Future Forecast(s) Excel Based Reports & Graphs Insight Analysis Slice and Dice by: Category: Actual, Budget, Each Forecast, Reprojection Participant City: All 49 Project: All projects (funds) Account: Fuel, Generation, Margins, … Fixed or Variable Unit of Measure: Dollars, Energy, Capacity Time

APPA Business & Financial Conference 2006 September 18, 2015 Sample Reports  These reports exceeded the initial requirements.  Illustrate the basic reporting capabilities of any BI tool. Note: Any correlation between the names on these reports and our actual participant names is purely coincidental. The names were replaced using state capitals.

APPA Business & Financial Conference 2006 September 18, 2015 Board Report

APPA Business & Financial Conference 2006 September 18, 2015 Variance from Budgeted c/kWh

APPA Business & Financial Conference 2006 September 18, 2015 Budget to Actual

APPA Business & Financial Conference 2006 September 18, 2015 Variable c/kWh

APPA Business & Financial Conference 2006 September 18, 2015 Graph of c/kWh

APPA Business & Financial Conference 2006 September 18, 2015 Project & Account by Unit of Measure

APPA Business & Financial Conference 2006 September 18, 2015 What is Predictive Analytics?  Discovery:  Automated identification of relationships between KPIs and their causes  Prediction:  Early warning indicator of future performance deviation based on discovered relationships  Delivery:  Proactive alerting and delivery of structured and unstructured data … in a personally relevant context

APPA Business & Financial Conference 2006 September 18, 2015 Discovery  Automated variance analysis :  Reasons – base level results  Root Causes – transactions  Context – unstructured data

APPA Business & Financial Conference 2006 September 18, 2015 WHAT Discovery The KPI Value and Variance are highlighted

APPA Business & Financial Conference 2006 September 18, 2015 WHY Discovery REASONS are base level data elements that are automatically shown

APPA Business & Financial Conference 2006 September 18, 2015 WHY Discovery ROOT CAUSES (if any) are operational events that are correlated to the KPI variance

APPA Business & Financial Conference 2006 September 18, 2015 CONTEXT Discovery Unstructured data that relates to the variance is automatically linked to the KPI

APPA Business & Financial Conference 2006 September 18, 2015 Discovery CONTEXT One Click takes you to the unstructured data linked to the KPI

APPA Business & Financial Conference 2006 September 18, 2015 Prediction  Based on Relationships in the Data  This is NOT Statistical Forecasting!

APPA Business & Financial Conference 2006 September 18, 2015 Prediction – What Insight Tells You The KPI at Risk is Identified

APPA Business & Financial Conference 2006 September 18, 2015 Prediction – What Insight Tells You The predicted value is displayed

APPA Business & Financial Conference 2006 September 18, 2015 Prediction – What Insight Tells You The correlated KPI drivers are listed

APPA Business & Financial Conference 2006 September 18, 2015 Executives Business Analysts Line of Business Managers Suppliers/ Partners Delivery in a role-appropriate context

APPA Business & Financial Conference 2006 September 18, 2015 Demo OutlookSoft Reports and Insight

APPA Business & Financial Conference 2006 September 18, 2015 Lessons Learned  Go with software that fits your existing environment.  Know what you want to analyze.  Make sure your source systems are in order.  Have someone who understands the source data.  Focus on creating a solid foundation for standard reporting.  Predictive analytics build on top of this foundation.  You need to be able to know “what” is happening before you can begin to look at “why” it is happening.  Start as simple and as small as possible  Use iterations to build confidence over time.

APPA Business & Financial Conference 2006 September 18, 2015 Questions ?