building a business intelligence architecture fit for the 21st...
TRANSCRIPT
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Building a Business Intelligence Architecture Fit for the 21st
Century
Jon Page
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Building a Business Intelligence Architecture Fit for the 21st
Century
Jon Page
This seminar is based on the Contents of this book
The premise is that:
BI is not delivering what is needed
Current BI architectures are not appropriate
Business and IT need to work Together on agreed strategies
Technology must be used to enable the reduction of copy management and the support of real time accuracy of critical data
People and organisation are Key to success in BI
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To record some history – what has happened in the past that makes the future quite challenging.To provide real examples of BI at work – good and bad.To illustrate the nature of data and why it has become so important in driving forward
the business in the 21st century.To outline a way to align technology with the business so that efforts and budget are spent
in a way that will enable the future rather that support the past.To propose a set of principles and ideas that can guide a company in a way to make data
available to all who have the penchant to turn it into useful and valuable information.To describe the new organisation unit that will be needed to realise the dream.
Our Objectives
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Globalisation
The Changing Business Climate
Technology
Deregulation
CHOICE
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Competition : Very aggressive
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Blue Chip
Out Of Business(fast)
Intelligence
Speed
Out Of Business(slowly)
The Winners !
To Be Successful – Two Critical Components
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Current
Current
Current Customer
Value
Num
ber o
f R
elat
ions
hips
Relationship Duration
Full Potential
Maximising Customer Value
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Imagine You Could Do This...
Profitable
Not Profitable
Now Future
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BI is an afterthoughtBI is reportingBI is not taken seriouslyEveryone does their own ‘bi’Lots of tools, lots of platformsNo-one trusts the dataNo-one understands the dataNo-one shares informationNo-one owns the problemBusiness and IT don’t work togetherThere is no BI Strategy
And on, and on, and on
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Time
Customers
Get sometechnology
Get moreTechnology – and fast
HELP!!
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Data Warehousing Terminology
MIS
Data Warehouse
Data Sandpits
DSS OLAP
ROLAP
MOLAP
TNF
DimensionalStar Schema
SnowflakeBusiness
Intelligence
E-Intelligence
StrategicInformation
Systems
Data Mart
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Prod
uct P
erfo
rman
ce
Time or Engineering Effort
Executive Information System
Independent Data Mart
Enterprise Data Warehouse
Data Provisioning Platform
BI technology S-Curve
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Executive Information System (EIS)Pr
oduc
t Per
form
ance
Time or Engineering Effort
• Very few users, typically management• Standard reports, usually monthly• Often run on production system• High IT requirement• Full centralized control, minimal user flexibility• No persistent analytic data store• Minimal data integration
DimensionalProprietaryPC based (if you’re lucky)
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Data Warehousing: Independent DMsPr
oduc
t Per
form
ance
Time or Engineering Effort
• Rise of the power user • Query capability and analysis added• Dimensional systems; typically departmental• Introduction of BI tools and normalization for more user flexibility• Rise of data redundancy and synchronization problems• Heavy management overhead• Data integrated from multiple sources via ETL
Dimensional (star schema)OLAPSMP based
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Data Warehousing: Enterprise DWPr
oduc
t Per
form
ance
Time or Engineering Effort
• Eliminates redundant data; single version ofthe truth• Ad hoc query and cross-functional analysis• Reduces ETL costs; continuous data loadingpossible• Re-centralizes control• Integrates data from multiple sources, but requires agreement on a single data model• Complex to manage, not adaptable to change
NormalisedROLAP, MOLAPMPP
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Data Provisioning? Operational BI?? Cloud???
Prod
uct P
erfo
rman
ce
Time or Engineering Effort
????
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Choosing the Right Architecture
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When to build data marts?
• Geographical considerations. • Specific performance requirements.• Specific availability requirements.• Departmental control over reports and queries.• Specialized applications.
• The Three P’s• Performance, Politics and Packages
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DM Topologies – Independent DMs
Advantages• “Fast” implementation.• Quick ROI.• Departmental control.• Not reliant on IT for data.Disadvantages• Multiple data models.• No consistent corporate data model.• Multiple interfaces to manage/maintain.• No single version of the truth. • Duplication of data.
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DM Topologies – Dependent DMs
Advantages• Single version of the truth.• Clean/scrubbed data.• Consistent data model.• Robust data transformation.
Disadvantages• Must have an existing data
warehouse.• Must fit with corporate strategy.• Duplication of data.
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Table 1 Table 2 Table 3
Table 4 Table 5 Table 6
Data Mart #1
T1 T2
T3 T4
Data Mart #2
T1 T2
T3 T4
If you have an EDW and you want to propagate data to Data Marts, you have a choice:
1) Propagate data to distributed Data Marts...
è Original data is stored in EDW.è Propagated data is stored in
different physical sites.
2) Propagate data to integrated Data Marts...
è Original data is stored in EDW.è Propagated data is stored in
separate “databases” within the EDW environment
DM Topologies - Dependent DMs
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If you have an EDW and you want to achieve the Data Mart result without creating more databases to maintain, you can create Materialised Views within the EDW.èThe data remains stored in the EDW.èMV’s can provide superior performance.èApplications can use logical model of the data.
Table 1 Table 2 Table 3
Table 4 Table 5 Table 6
JI #1 AJI#2
DM Topologies - Integrated DMs
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OperationalData
Business Users
IT Users
DataTransformation
EnterpriseWarehouse &Management
Visual/Intelligent/Magic Joiner
DM Topologies - Federated DMs
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What do all of these architectures have in common?
Question???
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Failure is Always Blamed on Technology
• The Computer is too slow• The Database can’t scale• SQL is not powerful enough• The Database doesn’t have the functionality I need• The data is not to be trusted (not upto date)
• Nearly always technology is blamed for faults in people/organisation
• There’s really nothing wrong with technology today...
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Moore’s Law Illustrated
‘Every 20 years the cost of processing a single bit of information declines by a factor of 1,000’
0.001
1
1000
1000000
1950 1970 1990 2010
1990 = 1
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1975 1980
0.010.1
1
1985 1990 1995 2000
10
100
1000
40048080 8088
80286
80386
80486
Pentium
Pentium Pro
Pentium II
MercedMIPS
0.060.64 0.64
0.9
6
20
100
~321
~500
>1200
2010• 100,000 MIPS• 4 GHz., .07u• 1B transistors
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Questions?
“Even if you’re on the right track, you’ll get run over if you just sit there.”
Will Rogers
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Building a Business Intelligence Architecture Fit for the 21st
CenturyPart 2
Jon Page
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So it seems that we still have a problem? The trouble is that BI doesn’t stand alone –it feeds some very complex processes
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Linking BI Strategy and Corp Strategy
WHY???
• Raise visibility of BI• Build required organisation• Ensure BI solves REAL business issues• Qualify and Prioritise BI activities• Get funding• Get recognition for a job well done
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Vision
Goals
Objectives
Strategies
Project
Corp Strategy Looks Something Like This:
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Global Information Technology Planning
Strategies
Projects
Technology Applications OrganisationProcess
Information
Projects can be broken down into Facets:
(Now we’re moving into BI Strategy)
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Vision
Goals
Objectives
Strategies
Project
OrganisationTechnology
ProcessApplication
Information Business Questions
The Information Facet can be broken down into Business Questions:
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Vision
Goals
Objectives
Strategies
Project
OrganisationTechnology
ProcessApplication
Information Business Questions
Data SQL
Business Questions can be broken down into SQL and Data
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Vision
Goals
Objectives
Strategies
Project
OrganisationTechnology
ProcessApplication
Information Business Questions
Data SQL
PebblePebble
PebblePebble
Data and SQL can be regrouped into meaningful and discreet BI ‘tasks’
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Vision
Goals
Objectives
Strategies
Project
OrganisationTechnology
ProcessApplication
Information Business Questions
Data SQL
PebblePebble
PebblePebble
Time
Value
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They are opportunities that:
can be enabled by a technology based solutionneed to exploit informationcan be realised in no more than six monthsare well understood by business and technologyare of high priorityare measurable in terms of success whether this be ROI, TCO or some other internalised mechanismhave a descriptive and meaningful name.solve at least some part of the information facet of a project.
Perhaps the most important characteristic of pebbles is that they support agreed and strategic projects
What is a Pebble?
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Real ‘Pebbles’
• Management of churn in a specific segment of customers – let’s reduce churn by 5% in our customers who make more than 5 calls per day
• Revenue recognition – lets make sure that we improve by 5 points the ratio between service usage, billing and collection across the board
• Increase acquisition rate of customer in a specific segment – let’s increase rate by 2% for corporations with 50 to 300 employees.
• Decrease fraud – let’s reduce subscriber fraud by 3 points across all customers
• Understand product affinity – lets’ determine which products are bought in combination to allow us to more effectively deploy ‘loss leaders’.
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Let’s reduce churn by 5% in our customers who make more than 5 calls per day
• Questions (SQL):• Who makes more than 5 calls per day• What is the churn rate in this segment?• What do the churners have in common?• Who in the current segment looks like these churners?• How can I keep them?
CDR’s
Subscriberattributes
ContractsBills
Payments
Calling Circle
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Global Information Technology Planning
ProcessApplications
Organisation
Technology
Information
Pebbles
Business Questions
Supporting
PDM
LDM
DataCritical
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Global Information Technology Planning
Mean
Mean
High
LowHigh
Low/Low
High/Low High/High
Low/High
Low Strategic Business ValueLow Need for IT Support
Low Strategic Business ValueHigh Need for IT Support
High Strategic Business ValueHigh Need for IT Support
High Strategic Business ValueLow Need for IT Support
Value
Difficulty
Prioritising Pebbles
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Global Information Technology Planning
Mean
Mean
High
LowHigh
Customer Segmentation
Customer Profitability
Revenue Assurance
Usage Analysis
BasketAnalysis
StatutoryReporting
Sales Reporting
CompetitorAssessment
FraudDetection
RiskAnalysis
Difficulty
Value
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Q1 Q2 Q3 Q4 Q5 Q6
Customer Segmentation
Customer Profitability
Usage Analysis
Revenue Assurance
StatutoryReporting
Sales Reporting
CompetitorAssessment
FraudDetection
RiskAnalysis
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Let’s look at a worked example
Workbook 1
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BI Strategy Documents and Owners
Key Information Imperatives – owner Information MasterBusiness Intelligence Roadmap – owner Information MastBI Pebble Definitions – owner Information ManagerData Dictionary – owner Information MasterSkills Matrices – owner Information Master or Information Manager as relevant.Security Policy – DBAAccess Policy – DBInformation Architecture – Information ArchitectData Reuse Map – Database DesignerLogical Data Model – Database DesignerPhysical Data Model – Database DesignerUser Requirements – Information CreatorVarious technical documents - variousVarious Service level Agreements – Information Manager/Master as appropriate
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Building a Business Intelligence Architecture Fit for the 21st
Century
Part 3
Jon Page
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What Have We Learned So Far?
BI has not matured as fast as we maybe believeThe gap between what we need and what we have is getting biggerThe goal is to be able to predict and maybe change the futureBusiness and IT MUST work togetherA BI Strategy linked to Corp Strategy is vitalContemporary BI platforms – Data Marts and Data Warehouses are a good start but that’s all. They’re:
Full of useless inaccurate dataNo one knows where the data came from or how old it isIt’s copy miss-management gone crazy
We need something that:Is trustedManages a single copy of master data Can provide different ‘types’ of info – strategic, regulatory, ad-hoc, DSS, history, trendRecognises that data is of many natures
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Design Make Distribute Retail Sell Distribute Bill Pay
Pay Receive
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Design Make Distribute Retail Sell Distribute Bill Pay
Pay Receive
Research and Design
Manufacture
Logistics
Promote and Sell
Logistics
Bill
Collect
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Design Make Distribute Retail Sell Distribute Bill Pay
Pay Receive
ProcurementProjects
ManufacturingContracts
Assets and LiabilitiesEngineering
HPAccounts Recievables
BillingFraud Detection
Network OptimisationAnalyticsMarketing
CRMRevenue Assurance
ApplicationsRequirements
Question 3 – What are the main differences between these two sets of data?
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We need to be able to store and manage many different types of data automatically
Transactional, detailed, historical - vast volume
Back-office, operational Data - on-line?
Master Data - on-line
Regulatory Data - accurate
Summarised Data - automatically created
KPI’s - automatically maintained – complex algorithms
Metadata - in one place, meaningful
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What We Need to do Now:
• Build a single BI Platform that:• Stores and Manages Critical Data (Master Data) in a
real time way and as a service to applications• Stores and makes available detailed, historical,
transactional data• Manages automatically all summary data• Provided fresh KPI’s• Is the basis for trusted and repeatable regulatory
reporting• Services ad-hoc complex queries and transactional
queries• Is self managed
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Collaborative Information Blueprint
Some fundamentals:
It depends on collaboration between Business and ITIt needs a BI strategy as described in Part 2It builds on what we’ve learned in Data WarehousingIt is an incremental strategyIt is a centralised, data driven initiativeIt’s a set of guiding principles rather than a methodology
Depends on a centralised platform that is TIGHTLY coupled with the operational world
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Plan
Define Key Information Imperatives (KIIs)
Define/Prioritise BI Pebbles (BIPs)
Identify Critical Data Elements (CDEs)and build Data Model
Determine Data Rules
Implement
Steps 1 to 4 of CIB
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We must deploy all reporting across the web.We will rigorously abide by all pertinent standards at all times.We will keep a single copy of important data accessible to all.Wherever possible we will pursue a single vendor strategy.We will not use bleeding edge technologies to support core processes.We will forbid the copying of data unless suitably authorised.Non-compliant applications will only be used if a pathway to full compliance is possible within an 18 month window.We will aggressively centralise all important data.
Step One – Information Imperatives
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They are opportunities that:
can be enabled by a technology based solutionneed to exploit informationcan be realised in no more than six monthsare well understood by business and technologyare of high priorityare measurable in terms of success whether this be ROI, TCO or some other internalised mechanismhave a descriptive and meaningful name.solve at least some part of the information facet of a project.
Perhaps the most important characteristic of pebbles is that they support agreed and strategic projects
Step Two – Determine and Prioritise PebblesWhat is a Pebble?
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Global Information Technology Planning
Mean
Mean
High
LowHigh
Customer Segmentation
Customer Profitability
Revenue Assurance
Usage Analysis
BasketAnalysis
StatutoryReporting
Sales Reporting
CompetitorAssessment
FraudDetection
RiskAnalysis
Difficulty
Value
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Real ‘Pebbles’
• Management of churn in a specific segment of customers – let’s reduce churn by 5% in our customers who make more than 5 calls per day
• Revenue recognition – lets make sure that we improve by 5 points the ratio between service usage, billing and collection across the board
• Increase acquisition rate of customer in a specific segment – let’s increase rate by 2% for corporations with 50 to 300 employees.
• Decrease fraud – let’s reduce subscriber fraud by 3 points across all customers
• Understand product affinity – lets’ determine which products are bought in combination to allow us to more effectively deploy ‘loss leaders’.
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Customer Invoice Bill Office Payment Supplier Product Credit Score
Employer
BIP1 y y y Y
BIP2 y y Y
BIP3 y y y y y Y
BIP4 y Y y y
BIP5 y y Y
BIP6 y y Y
Total 5 4 2 1 4 2 3 1 1
Step Three) Identify CDE and Model
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Now We Have A Clear Justifiable View on what is OUR:
MASTER DATA – (working definition for this seminar!!!)
The Data That Supports Most of our Critical BI Requirements (Pebbles)
This is KEY – because I propose that we store this data (at least), in just one place and one place ONLY!
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PRODUCTUSAGE
Prod NoCust NoUsage Date
PRODUCT
Prod NoCategoryDate CreatedRetail Price
PAYMENT
Payment NoAccount NoPayment AmtLocationDate
ACCOUNT
Account NoAccount TypeDate Opened
INVOICEInvoice NoAccount NoInvoice Amt
CUSTOMER
Cust NoDate of BirthTitleGender
ACCOUNTOWNERSHIP
Account NoCust NoCust RoleStart date
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Step 4 - Define Rules Around CDEs
• Sample Business rules may include:
• Account Open Date must be 12 years later than Birth Date of Account Owner• Customer Name cannot be ‘null’ • A company must be allocated a SIC code from the published list• An account is ‘open’ if any type of contact has been associated with this account in the past 20 days• Address must always have a post code
• Sample Technical rules may include:
• Account Number must be 6 digits• ‘Male’ will always be represented as ‘M’• Value must be capitalised• Value must be from following list……• All table names should be singular
• Process rules may include:
• If there are more than ten of these marked ‘O’ then….• This attribute is the result of function X on data item Y• This cannot be deleted whilst…..
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After Phase One we have:
• A prioritised map for BI implementation• A set of IT Imperatives to guide architecture,
infrastructure, purchasing etc• A clear definition of Master Data, including rules etc• A core Logical Data Model
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Implement
Enable Compliance
Select and Deploy Critical Data Platform (CDP)
Implement PebblesIncrementally
Build end-userlayer
Automate and Secure
Steps 5 to 8 of CIB
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Step 6 - Technology must be selected to create the Critical Data Platform (CDP), and this will include at a minimum the:
• Computing platform (hardware)• Operating System plus management tools• RDBMS• Communications capability• Business Intelligence tools (reporting, ad-hoc query,
mining, OLAP)• Integration tools• Metadata Management tools/capability• Backup and Recovery capabilities• Security software
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Question 5:
WHO CAN PROVIDE THE PLATFORM?
One ‘computer’One Data BaseCDE’s on-line to operational systemsAll data feeds automatic, in and out
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Q1 Q2 Q3 Q4 Q5 Q6
Customer Segmentation
Customer Profitability
Usage Analysis
Revenue Assurance
StatutoryReporting
Sales Reporting
CompetitorAssessment
FraudDetection
RiskAnalysis
Step 7 – Implement Pebbles Incrementaly
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M1 M2 M3 M4 M5 M6
Physical DatabaseImplementation
Deployment of Integrity rules
Determine Data Source
Implement InterfaceTechnology
Initial Data Load
Develop QueriesAnd Reports
Test Acceptance
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Step 8) Enable Compliance
• Get the right answers• Get these answers quickly and reliably• Demonstrate how numbers are calculated (audit)
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• The Implement phase brings into a single database:• Key shared data for enabling Corporate strategy (often
called ‘Master Data’ but actually much more.• Operational data needed by multiple operational
applications• Derived data for complex algorithms and scoring• Summary data often used to form the basis of
Compliance calculations as Key Performance Indicators• Detailed, historical, behavioural data for deep mining
and predictive analysis.
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So in our preferred architecture, the tables we have modelled to represent our Critical Data Elements will be implemented in a single database and as a set of relational tables.
• As these tables are deemed critical to the enterprise it is imperative that:
• We have only one set of these tables in the whole enterprise.
• These tables are shared by all applications that need this data whether these applications are internal or external, operational or analytical.
• This data is protected from miss-use by a defined layer of metadata.
• The data in these tables is always up-to-date.• The data in these tables records history.
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Automate and Secure
Ensure 100% Availability
Automate and Secure
Step 9 and 10 of CIB
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PrimaryDatabase
Clients
Clients
ClientsClients
A Cluster for Reliability?
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Data Guard Broker
Bro
ker A
gent
Primary Site
PrimaryDatabase
Standby Site
StandbyDatabase
Data Changes
Clients Clients
Bro
ker A
gent
Remote Backup?
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Critical Data ElementsLogical Model
BI Pebble
Source Systems
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Critical Data Elements,plus other as needed BI PebblesSource Systems
BI Platform
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Critical Data Elementsplus other as needed
BI PebblesSource Systems
BI Platform
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Critical Data Elementsplus other as needed
BI PebblesSource Systems
BI Platform
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Business Value Credit
RiskAnalysis
Product Bundling
andPricing
Information Infrastructure Additional Data
ProfitabilityAnalysis
BehaviouralAnalysis
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Summary
• Define and prioritise requirements – already done in our BI Strategy
• Define first deliverable – already done in our BI Strategy (see BI Pebble Road Map)
• Build Logical Data Model for first Pebble - already done• Build Physical Model to support initial requirement• Deploy rules as triggers, procedures, macros etc.• Define preferred provider system for each • Define interface requirements of each item of data with
provider system• Perform initial data load to database• Deploy the required data feed technologies• Test system
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How do we pay more for less
• Tailoring pre-canned applications• Building our own logical data model• Not using the technology that we have already paid for• Buying data we already have• Issuing RFIs and RFPs• Evaluating identical technologies
•Copying data
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Summary
• Build a comprehensive (but flexible) BI strategy linked to the Corp Strategy
• Develop IT Imperatives• Put in place the right organisation• Cherish Critical Data• Build a closer but more demanding relationship with
your vendors• Use technology• Promote yourselves – BI is the most important facet of
most internal business
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Building a Business Intelligence Architecture Fit for the 21st
Century
Part 4
Jon Page
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BI Projects fail for many reasons, we continually see:
Insufficient dedication of resources (technical and most importantly, human).
People with the wrong skills.
Multiple, unprioritised roles and responsibilities.
Lack of decision making power.
Rudimentary future planning.
Conflicting commitments.
Too many on-going projects
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A Real DW Audit findings:
Lack of business involvement/ownershipNo three year roadmap for expected deliverablesNo formal Data Architecture or Logical Data ModelPoorly defined job descriptions/roles – confusion of responsibilitiesNon-optimal deployment of HardwareUsing out of date softwareNo consistent application of Parallel Database featuresMany important Oracle facilities not being used effectivelyLack of documentationNon-scalable environmentCritical data was missingNo deep usage of data in terms of analytics/data mining etc
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Define Idea Identify Data
Estimate Cost
Go or No GoImplement Interfaces
Create and Test Report
Operationalise
Extend Models
LEARN!
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The Information Board
• Creation of Corporate Strategy• Ensuring alignment of BI Strategy• Providing support for deployment of CDP• Providing guidance and support to the BI ‘team’• Solving critical issues• Arbitrating on internal conflicts• Monitoring return on Investment and/or Total Cost of
Ownership goals• Appointment of the Information Master
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The Information Master:
is ultimately responsible for the creation and maintenance of the following documentation:
Key Information ImperativesBI RoadmapData DictionaryThe complete Business Intelligence StrategySkills Matrices for the BI team
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BI Strategy Documents and Owners
Key Information Imperatives – owner Information MasterBusiness Intelligence Roadmap – owner Information MastBI Pebble Definitions – owner Information ManagerData Dictionary – owner Information MasterSkills Matrices – owner Information Master or Information Manager as relevant.Security Policy – DBAAccess Policy – DBInformation Architecture – Information ArchitectData Reuse Map – Database DesignerLogical Data Model – Database DesignerPhysical Data Model – Database DesignerUser Requirements – Information CreatorVarious technical documents - variousVarious Service level Agreements – Information Manager/Master as appropriate
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Data Base AdminIntegration Manager
InformationArchitect
InformationCreator
InformationSales Coord
InformationManager
InformationMaster
Project Manager Data Base Designer
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Data Base Admin
Integration Manager
InformationArchitect
InformationCreator
InformationSales Coord
InformationManager
InformationMaster
Project Manager Data Base Designer
Information Board
InterfaceManager
BusinessUsers
CEO
CIO
Partners
General Project Manager
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Data Base Admin
Integration Manager
InformationArchitect
InformationCreator
InformationMaster
Information Board
InterfaceManager
BusinessUsers
CEO
CIO
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How do we pay more for less
• Tailoring pre-canned applications• Building our own logical data model• Not using the technology that we have already paid for• Buying data we already have• Issuing RFIs and RFPs• Evaluating identical technologies
•Copying data
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Summary
• Build a comprehensive (but flexible) BI strategy linked to the Corp Strategy
• Develop IT Imperatives• Put in place the right organisation• Cherish Critical Data• Build a closer but more demanding relationship with
your vendors• Use technology• Promote yourselves – BI is the most important facet of
most internal business