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

2. 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

3. 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

6. 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

8. 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?

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

10. 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

11. Oracle BI Architecture

12. 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

13. 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

14. 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

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

16. 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

17. 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.

18. “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?

20. 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 ( )
See “TLP Projects”

21. 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.

22. 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

23. 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 % Yr %
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

24. 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

26. 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

27. 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

29. 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

30. 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

33. 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

34. 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?

35. 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?

36. 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?