book

Business Analysis for Business Intelligence

by Bert Brijs

April 2016

Beginner to intermediate

400 pages

8h 52m

English

Auerbach Publications

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Why This Book?ICT Has Grown UpA Practical ApproachHands-On Issues, Questions, and MethodsFigures Don’t Explain EverythingWhat I Mean by “Business Intelligence”From Decision Support to Information DemocracyA DefinitionScope of This BookWhat Does a BA4BI Do?Defining the Concept “Business Analyst for Business Intelligence”“How” Career Path“Where” Career Path“C-Level” Career PathStructure of This BookPrincipal AspectsStrategy Formulation and FormationStrategy ImplementationDeveloping a Marketing StrategyFinancial PerspectiveOperations StrategyHRM and BIBusiness Intelligence FrameworkIntroducing a BI ProjectTypical Business Analysis Project FlowBusiness Intelligence ProcessesTips, Tricks, and a ToolboxBI SystemChapters of This BookMacroscopic View of Business IntelligenceIncreasing Cycle Speed of Growth and Its LawsBalancing the 5 Ps of Strategic ManagementAdapting BI to the Organization’s ConfigurationUnderstanding the 4 CsBusiness Case for Business IntelligenceBusiness Analysis and Management AreasBI and Cost AccountingBI and Financial ManagementBI and Operations ManagementBI and Marketing ManagementBI and Human Resources ManagementBusiness Analysis and the Project Life CycleStarting a BI ProjectManaging the Project Life CycleMastering Data ManagementMastering Data QualityBusiness Analyst’s ToolboxProject Direction Document TemplateInterview Summary TemplateBusiness Case Document TemplateBusiness Analysis Deliverables TemplateProject Charter Document TemplateBest Practice Sharing TemplateGeneric Interview GuideGeneric Business Object DefinitionsAppendices OverviewAppendix A: What to Ask on Your Job InterviewAppendix B: Business Intelligence from 1960 to TodayAppendix C: The 101 on Data WarehousingAppendix D: Survey for a BI Project
IntroductionGrowth Has a PriceUseful Lifespan of the PLCThree DeltasTime, the Essential Strategic FactorBusiness Analysis IssuesFirst Law: The Triangle of Knowledge, Growth, and Strategy ProcessesThe Knowledge Exchange ProcessReciprocityLong-Term PerspectivesFewer HierarchiesMeasuring ReciprocityOrganizational DriversPersonnel DriversBusiness Analysis IssuesSecond Law: Your Narrow Choice between Two OptionsFocusConquestRetreatRedeployStrategy ContinuumBusiness Analysis IssuesThird Law: Any Organization Optimizes Two ExtremesValue Chain RevisitedBusiness Analysis IssuesWhat Defines Overall Cost Leadership?What Defines Differentiation?Fourth Law: Measure Only What You Can Measure ButExperimentResultsConclusionBusiness Analysis IssuesA Few TipsFifth Law: There Is Always a Dominant SourceThe Strategic ApexExploring Alternatives and OptionsFunctional ManagementMarketing versus FinanceFinance versus OperationsOperations versus MarketingOperational LayerBottom-Up Strategy FormationCybernetic Feedback LoopsSixth Law: IT Is Here to StayIT Can Create Competitive AdvantagesAlignment MovementBusiness Analysis Issues
IntroductionThe 5 Ps and Their InteractionManaging StrategyThree Strategy Management StylesThe Linear StyleThe Judgmental StyleThe Bargaining StyleConclusionStrategy Management Styles and Plan–Pattern–PloysChoosing the Center of Gravity
IntroductionMintzberg’s ConfigurationsMintzberg’s Lessons for Business IntelligenceBusiness Analysis Issues

IntroductionApplying the 4 C Perspective on Functions4 Cs: The Foundation of a Balanced ScorecardBusiness Analysis Issues
IntroductionBasics of Information EconomicsIllustrating IE with a Business CaseFrom a Process to a Marketing CultureFirst Conclusion: Save on Reporting OperationsSecond Conclusion: Churn Reduction through Better Customer AnalysisThird Conclusion: Better Prospect QualificationGeneric Advantages of Business IntelligenceImproved Communication EffectivenessImproved Data QualityCommon Engineering ModelsProduct Data ModelsCustomer Data ModelsBetter Understanding of Available DataSmarter Extraction and Exchange of DataBetter Understanding of the Business Processes
Setting up an ABC System Using BIAssemble All Sources of Cost RegistrationValidate the ConsistencyAssign the Sources in a Meaningful WayEight Steps for Cost AssignmentConsider the Alternatives during the Cost Assignment ProcessExpress AssumptionsCommunicate the Results and Validate Them in the FieldPros and Cons of Activity-Based CostingProsConsCloser Look at ABC Source SystemsAccounting SystemEnterprise Resource Planning (ERP) SystemProduct Data Management SystemsBudgeting SystemsTime Registration and Access SystemsPayroll SystemsWarehouse Management SystemsInventory Management SystemsDocument Management SystemsSetting up ABC Analysis in the Data WarehouseConclusion
The 101 on Financial BI DeliverablesKeep Your SOX On!Data LineageMutual AdjustmentUnderstanding the Business Process FlowsBusiness Analysis for Financial ReportingChart of AccountsRequired ReportsCertified ReportsAnalytical and Explorative ReportsFinance Reports Connected to Other Subject AreasSpecial Attention for Slowly Changing DimensionsSpecial Attention for Presentation OptionsBusiness Analysis Issues
The 101 on Operations ManagementCustomer Order Point (COP)ForecastingOptimization of the Supply ChainBusiness FAQsQuality ManagementSetting up Outsourcing AnalysisProduction Management and Information ArchitectureMRP II SoftwareCapacity Management SoftwareNetwork Planning SoftwareA Basic Concept of IS for Production ManagementWhat to MeasureFirst Example: Physical Goods TransportSecond Example: Inventory Management Systemss,Q or the Two-Bin Systems,SR,SR,s,SBasic Supply Chain Report RequirementsIntroductionTotal Cycle and Optimum Variable CostRotation of SuppliesRotation of ProductionRotation of CustomersRotation of Purchases and SubcontractorsTotal Cycle = RotationS + RotationPR + RotationC – RotationP Optimum Total Variable CostsEOQ with Partial DeliveriesProduct AnalysisSupplier AnalysisSetting up a Forecasting System Using BIGeneral RecommendationsForecasting Can Have a Thorough ImpactForecasting Is a Total ProcessDefining the KPIs for a Forecasting SystemCost Justification for ForecastingStep 1: Collect the DataStep 2: Decide on the GrainStep 3: Integrate the DataStep 4: Select the DataStep 5: Prepare the DataStep 6: Choose and Develop the ModelStep 7: Validate the ModelStep 8: Evaluate the Model in DetailStep 9.1: Evaluate the Results: Improved Delivery PerformanceStep 9.2: Evaluate the Results: Reduction in Inventory Carrying CostsStep 9.3: Do a Complete Cost of Ownership AnalysisStep 9.4: Calculate the ROIBusiness Analysis IssuesGeneral RemarksQuestions and Issues to Be Addressed
IntroductionWhat Do We Mean by “CRM”?What Do We Mean by Behavior Analysis?Can We Learn from Past Failures?When Operations Leads the DanceWhen Finance Leads the DanceWhen Overly Complex Sales Models Are the RuleWhen BI Is Used for the Wrong ReasonsHow BI Can Contribute to Marketing ManagementMarket ResearchAffinity AnalysisDirect Product Profitability (DPP)Product DevelopmentSalesSales PromotionCustomer ServiceChannel ManagementRetail MarketingIndustrial MarketingProfessional Services MarketingFast-Moving Consumer Goods MarketingConsumer Investment Goods MarketingPharmaceutical MarketingOTC Products MarketingEthical Drugs MarketingBusiness Analysis IssuesCheck the CRM DataCheck the Behavioral Analysis StatusMarket ResearchAffinity AnalysisDirect Product ProfitabilityProduct DevelopmentSalesSales PromotionCustomer ServiceChannel ManagementRetail MarketingIndustrial MarketingProfessional Services MarketingFast-Moving Consumer Goods MarketingConsumer Investment Goods MarketingPharmaceutical Marketing
The War for Talent and How to Lose ItDisconnect Strategy Planning Process—Competence ManagementA Lack of ERM StrategiesKurieren am SymptomManaging AbsenteeismIntroductionAbsenteeism MeasuresHow BI Can Lend a HandBusiness Analysis IssuesSecurity“Hard” KPIs“Soft” KPIsQuestions for the HRM Department
OverviewAn Iterative ProcessMapping the Process Stages on the Business Analysis IssuesCreating the NeedExpectations: In Search of the Business ValueFunding the Business Intelligence ProjectProbing for the MotivationFocus on the Expectations through the Entire ProjectFormal Things Customers WantInformal Things Customers WantHandle QueuesClose LoopsGathering the InformationStudy the TerrainWho You Need to KnowWhat You Need to KnowAnalyzing the Decision-Making ProcessesIntroductionDecisions, Teams, and Groups at WorkA Classification of Decision-Making EnvironmentsProcess ViewWhat Drives the Decision-Making ProcessHeuristicsStereotyping, the Dark ForceGroup Decision MakingOrganizational ChangeMake the Trade ProfitableMake Them DreamUse Positive FeedbackPhase Out the Old Systems, FastForm a Coalition of the WillingAdapt to the Organization’s Risk ProfilePrepare for SetbacksMintzberg’s Management MythsWhat Do We Learn from This for Our BI Projects?ConclusionBusiness Analysis IssuesProducing the DocumentsProject Direction DocumentInterview SummariesBusiness RequirementsBusiness CaseProject CharterValidating the Results“I Wanted Performance!”“Why Do I Need the Full Client?”“Now That I See the Results…”Check the Business CaseSupport and MaintenanceValidationVision Support
Business Analysis and Project PlanningBusiness Requirements GatheringInterview the CEOWhat Are Your Objectives?Survey the User GroupWhat Are Your Objectives?Interviews and WorkshopsWhat Are Your Objectives?Requirements ChallengingHow to Challenge the RequirementsTesting the Robustness of the RequirementsMaking It StickSolid Building BlocksAuxiliary Analysis AreasDimensional ModelingData Warehousing 2.0 from Bill InmonConformed Dimensions of Ralph KimballHubs, Links, and Satellites of Dan LinstedtMixed Design ChoicesConclusionsBI Application SpecificationBusiness Analysis and Growth—MaintenanceSource ChangesDwindling User SupportSharing Project KnowledgeKnowledge ObjectsInterviewPublication PlatformPreparing a BI Competence CenterAssess ReadinessBuild the TeamBusiness Analysis IssuesConclusion
Major Components of Data ManagementOverviewMaster DataSource AnalysisData ProfilingSource-to-Target MappingMetadata Management for Business AnalystsBefore the ProjectDuring the ProjectAfter the ProjectFramework for Data ManagementDublin CoreZachman FrameworkStructured WritingStructured Writing and Data ManagementHow the Three Components Interact
Which Quality?ROI Approach to Data QualityData Quality for Source SystemsMarketing AspectsFinance AspectsOperational AspectsData Quality for Data Warehouse SystemsCustomer SegmentationCustomer Credit AnalysisFraud Prevention and DetectionBuilding the Business CaseData Quality ChecklistHistory Review of the Data SourcesPresent Situation ReviewFuture Outlook
OverviewProject Direction Document TemplateIntroductionDocument’s ContentsProject BackgroundProject ContextBusiness CaseProject DefinitionProject Organization StructureProject ApproachInterview Summary TemplateBackground InformationRoles and ResponsibilitiesBusiness ProcessesInteraction with or Ownership of Business ProcessesInterview SummaryOpen Issues—QuestionsNext StepsBusiness Case Document TemplateIntroductionEfficiency EconomicsAd Hoc ReportsAsset ManagementAbsenteeism ReductionReduction in Coordination CostsImproved Negotiation PositionRevenue ImprovementPricingQualification ImprovementCustomer Valuation ImprovementImprovement in Order CancellationsImproved ForecastingStrategic OpportunitiesInformation Value for Your CustomersFaster Response to Changing ConditionsQuality of DecisionsBusiness Analysis Deliverables TemplateIntroduction and OverviewOverview of the DeliverablesHigh-Level Situation AnalysisPurpose of the BI ProjectStakeholder MatrixBusiness RequirementsProject Management ConstraintsScope of the ProductData RequirementsPresentation MethodsBusiness Security RequirementsOther RequirementsProject Plan and Task List ProposalDocumentationGlossaryProject Charter Document TemplateOverviewProject ScopeProject OrganizationExternal Relationships and DependenciesProject ApproachProject ResourcesRisk AnalysisBusiness CaseInitial Project PlanBest Practice Sharing TemplateOverviewTitle PageExecutive SummaryBest Practice IdentificationReason(s) Why This Is a Best PracticeDefinitionsResources for the Best PracticeHow the Best Practice WorksSpecific InstructionsCostApplication AreaContact InformationGeneric Interview GuideIntroductionHow to Introduce the Interview GuideGeneric Interview ListFrame of ReferenceGeneric QuestionsFinallyInterview Guide per Functional AreaStrategic Decision MakingFinance and ControllingMarketingSalesLogistics and OperationsMetadata ChecklistMetadata for IntegrationMetadata for TransformationGeneric Business Object DefinitionsOverviewDefining the Principal Asset of an Organization: CustomerIntroductionTaxonomy of CustomerGeneric Definition of CustomerSpecific Customer DefinitionsOrganization, a Meaningful Concept?The Many Definitions of OrganizationEmployee or Partner?ProductTerritoryGeographical Aspects of Territory
OverviewHow Do You Become a BA4BI?Data KnowledgeApplication KnowledgeProcess KnowledgeBI SkillsInterpersonal SkillsAppendix A: What to Ask on Your Job InterviewIntroductionQuestionsAppendix B: Business Intelligence from 1960 to TodayIntroductionEarly YearsEmergence of the Data WarehouseBusiness-Driven Business Intelligence EraAppendix C: The 101 on Data WarehousingBusiness NeedTechnology BarriersDenormalization versus the Third Normal FormDefinitionsOpen to Multiple SourcesSolutionsComponentsExtract, Transform, Load ProcessAppendix D: Survey for a BI Project for the Purchasing DepartmentIntroductionA Few CaveatsExample

Content preview from Business Analysis for Business Intelligence

5 Understanding the 4 Cs

INTRODUCTION

If you simplify Business Intelligence (BI)—and you know consultants just love that—then it all amounts to knowledge and insight in the dynamics of four subject areas or perspectives:

• Cost

• Customers

• Competitors

• Competencies

Cost is an important perspective for a data warehouse: it can be traced over long periods of time, illustrating how fixed costs can become variable over time and vice versa, proving trend lines that can help you with your long-term planning. Cost is the most pervasive and at the same time the easiest perspective to measure.

The customer perspective may be the most important but it is a lot harder to get the complete picture for decision making as you can only measure ...

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ISBN: 9781439858370

Business Analysis for Business Intelligence

by Bert Brijs

5

Understanding the 4 Cs

INTRODUCTION

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.

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Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.