1. Six Sigma Business Intelligence Richard Foley Product Manger SAS Institute

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

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

4. 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

5. Improvement Cycle Define MeasureAnalyze Improve And Control

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

7. Behind Business Intelligence Data Warehouse Reporting Analytics

8. Six Sigma for Business Intelligence

9. 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

10. Data Profiling

11. Business Intelligence for Six Sigma

12. Data Warehousing

13. Data Mining

14. Mathematical Model

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

16. Continuous Quality Improvement Improvement 1 Improvement 2 Improvement 3

17. Quality Degradation over Time Improvement

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

19. Improvement Cycle

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

21. Automating Feedback

22. Optimizing Quality Diminishing Returns

23. Questions Richard.Foley@sas.com

24. Thank you for attending! Please remember to complete and return your evaluation form following this session. Session Code: 1902 Richard Foley SAS Institute 919 531-0119 Richard.Foley@sas.com