1. IBM Business Consulting Services iAnalytics (Business Intelligence) Wednesday, October 9, 2002

2. Discussion Topics  i Analytics – What is it?  Public Sector perspective –A provincial case study –Results for Canadians  Questions and Answers

3. Context  Over ten years ago, the ERP/back- office transaction systems constituted the first wave of large-scale IT investment  Next were Year 2K initiatives, paralleled by Data Warehousing and CRM/front- office applications  Integrated Analytics is the next wave aimed at unleashing the value contained within these past investments Business Intelligence Performance Management Business Optimization iAnalytics Business Intelligence Management Business Optimization iAnalytics Performance

4. iAnalytics – It’s About Closing the Gap  Today’s solutions are successful in accessing data, and making it available to users, however… …today’s solutions are not successful in directly linking information to action, and its corresponding value

5. Strategy Definition, Evaluation & Communication Financial Analytics HR Analytics Client Service Analytics (CRM) Perf. Framework Management Processes Strategic Planning Account. Contracts Feedback Operational Planning INTERNAL CONSUMERS EXTERNAL CONSUMERS Performance Improvement Tactics Performance Monitoring Executive Management Operational Regulatory OGDs, Partners Clients Vendors COMMUNICATION COLLABORATION “Supply Chain” Analytics iAnalytics – It’s About Closing the Gap

6. Integrated Performance Management Solutions (IPM) Advanced Analytics Integrated Data & Information Solutions (IDIS) Vision, Integrated Roadmap & Blueprints (VIRB ) Program Management/ Office (PMO) PMO Design Governance Design & Implementation Benefits Planning & Realization Performance Measurement & Balanced Scorecard Solutions Integrated Planning, Forecasting & Budgeting Business Performance Management Process Measurement & Control Strategic Analytics Financial Analytics Customer Analytics Supply Chain Analytics HR Analytics IT Analytics Enterprise Info Quality Management Data Transformation & Integration Data Modeling Database Management ODS, Data Warehouse, Data Mart Solutions Information Delivery Solutions ERP/Packaged Solutions Vendor Evaluation Vision & POV Development Capability Assessment Business case/value proposition Integration Roadmap Process Blueprint Organizational Blueprint Technical Blueprint

7. A Public Sector Context  The realm of possibility –iAnalytics demonstration (U.S. federal department example) –Note – intention is to do this demo on line (screen shots are only a fall back)

8. A Provincial Case Study – Situation Approach and Solution The Way We Were  Lots of paper; no information  Variety of applications and reporting tools with limited skill sets  Desire to provide tools to enable financial accountability and:  Provide good (i.e. correct) useful information and a means of delivering it to enable managers to pinpoint problems  Enable managers to get information without going through IT shop  Built a ‘Proof of Concept’ generic template including a Oracle Fin’ls data mart, ETLs, data cubes, and reports for GL and Payables –IBM provided data, database, analysis experience, and methodologies for rapid deployment using Oracle Financials –Cognos provided tools and DW expertise  Template customized with BCFC data  Iterative demonstration/tailoring cycles to BCFC Users  Application into production

9. A Provincial Case Study Key Success Factors  Executive level and business buy in secured through use of prototypes and demonstrations  Tight scope control  Involvement of trained BC Ferries staff –Project Manager, User Group Developers, Testers  Solid / expandable technical infrastructure

10. The Federal Agenda – Modern Comptrollership and Results-Based Management  Results for Canadians grounds performance measurement in: –shift of focus from activities/outputs to outcomes/results –clear, concise reporting of achievements –strong internal and external accountabilities –using performance information to take action  Modern Comptrollership underpinnings: –Integrated performance information –Sound approach to risk management –Appropriate control systems –Ethical practices and values

11. Key Business Drivers Mission Strategic Goals Strategic Objectives Strategic Priorities  Increasingly, corporate plans reflect top-down, outcome-based strategic performance management frameworks but… –dots aren’t always connected –frameworks have not yet cascaded down  Management systems are generally not aligned –Lack of integrated financial and non-financial data –Everyone is struggling with data – availability, timeliness, integrity  Lack of “corporate” data architecture and metadata strategy  Getting data out of the ERPs is difficult and requires considerable “transformation” –Point solutions are being implemented to provide short term relief  Departments are procuring tools to solve performance (particularly financial) reporting challenges

12. Lessons Learned: To succeed, you’ll need…  Committed Leadership (at all levels) –Active involvement (not just verbal support) –Focal points (if everyone owns it… no one owns it) –Buy-in to goals and ways of way of measuring success –Accountability contracts aligned with performance targets  Trained Staff (especially Program Managers) –Understand concept of performance/results-based management –Primary “users” are actively engaged and understand where they fit within the framework  Incentives to Use Performance Information –From top leadership down to front line employee –Measures make sense to staff throughout the organization linking what employee does day-to-day with organizational goals

13. Range of Solutions BUSINESS FOCUS  Top-down, integrated Performance Management Framework  Chart of Accounts Design  Systems Strategy  etc. DISADVANTAGES:  Slow and expensive  Strong chance that changes will never occur PROGRAM/POLICY FOCUS  (One-off) RMAF TECHNOLOGY FOCUS  New Reporting Tools  (Enterprise) Data Warehouse DISADVANTAGES:  Eliminates some symptoms but not root cause  Faster processing of flawed data  Won’t produce insight – long term vision IDEAL SOLUTION  Develop long-term roadmap  Deliver incrementally with quick wins  Technology-enabled  Address data quality  Change some processes  Continuous improvement COMPLETE POINT SOLUTIONS Lessons Learned: The biggest challenge is balancing speed and completeness

14. Questions and Answers ?