The Path from Reactive Reporting toProactive Business Intelligence

Dwight Taylor

Manager Enterprise Informatics

Health Care Service Corporation

September 15, 2010

2

Let’s Start the Journey!

• “The ability to focus attention on important things is a defining characteristic of intelligence.” (Robert J. Schiller)

• BI initiatives #1 on CIO portfolio [2]

• Expected 20% BI Market increase in2010 while IT budgets drop

• 35% of Fortune 5000 expected to fail at makingcritical business decisions in 2010 [2]

3

BI & Health Care Reform

• “What If” Scenarios

Medical Loss Ratio

End of Life Care

Consumer Driven Health Plans

Health Care Exchanges

4

What is Reactive Reporting?

Usually lacks “what if” scenario analysiscapability supporting proactive decision agility • Usually created from

existing operational/ad hoc reports

• Don’t reflect critical changes in the business environment

• A look back instead of a look forward

5

What is Business Intelligence?

• Business InformationStructured or unstructured data thathas been processed, organized,structured, interpreted and presentedin a relevant context so as to makethem valuable to decision makers

• Business IntelligenceA broad suite of technologies, toolsand processes for gathering, analyzingand providing access to businessinformation empowering enterpriseusers with decision agility

Requirements – Data Analysis – Information – Manage Change [3]

6

Are These BI Requirements?

• Slice and Dice• Single version of the truth• Data Consistency

• Standard, Ad Hoc Reportingand Analysis

?=Proactive BI

Business IT

• Operational goals (ex. higher program engagement, clinical outcome improvements, etc…)

• Performance Guarantees

• Lower PMPMs

7

How Did HCSC Get There?

Maintain focus on the goal as challenges begin to surface!

8

Reactive HCSC BI

9

Proactive HCSC BI

10

The PATH

• Not perfectly clear (known knowns, known unknowns and unknown unknowns)

• Risks

• The goal will often seem unattainable

• Requires learning, unlearning and relearning

11

BI Strategy Alignment

12

Engage the Business, Engage the Business, Engage the Business

“Strong IT and BusinessPartnerships are criticalTo achieving success”

ex. New Partnership betweenbusiness BI Developers and ITBI developers and admins

• Peer Review• Knowledge Transfer• Increased BI time to market

13

Skill Sets, SMEs & Longevity

• Appropriate BI skill sets

• Appropriate business SMEs

• Appropriate IT skill sets

• Dedicate resources for the “Long Haul”

ex. HCSC invited an outside BI SME to provide an assessment of our progress

14

Governance – “The Right Mix”

• Too much – EXPLOSION – project overruns & scope creep

• Too little – IMPLOSION – weak consumer confidence

• Govern names, definitions and usage at a minimum

ex. Attempting to govern technical logic and BI/reporting rules will prove counter-productive

15

Execute and Evangelize

• Manage change per BI outcomes

ex. Health Care Management team leveraging new BI information to target clinical outcomes

• Nothing demonstrates value like SUCCESS…Tell the story!

ex. Next Generation Communication, Training, Socialization Strategy

16

Questions

17

Thank You!

Dwight Taylor

Manager – Enterprise Informatics

Health Care Service Corporation300 E. RandolphChicago, IL 60601

Email: taylord3@hcsc.netOffice: (312) 653-2626Linked In: http://linkedin.com/in/webrevelTwitter: http://twitter.com/dwighttaylor

”Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage.”Nicolo Machiavelli (1469-1527)

Citations[1] – Information Age 6/09 JJ Robinson

[2] – Gartner – Overcoming the BIg Discrepancy – How BI Can Do More With Less (Kurt Schlegel & John Van Decker)

[3] – Peter Thomas (BI Cultural Transformation Expert)