1University of Nevada, Reno Business Performance Management1

Class Agenda: 2/26 and 2/28

Answer questions about the SQL Server BI labs.

Finish discussion of ETL. Continue moving back and forth

from technical to managerial issues. Understand BI in relation to

business performance management (BPM).

Start BPM exercise.

SQL Server BI labs

Goals• Introduce you to the basic types of business

intelligence tools available through SQL Server. BI#1: Create tables. BI#2: Populate tables. BI#3: Build a cube. BI#4: Generate reports. BI#5: Use data mining tools.

• Re-familiarize you with SQL Server.• Use Microsoft Access-like wizards available

through SQL Server.

Questions/problems?

Extract, Transform, Load Extract

• Take data from source system in source format.

Transformation

• Put data into consistent format and content.

• Validate data – check for accuracy, consistency using pre-defined and agreed-upon business rules.

• Add date/time as necessary.

• Convert data as necessary: take a single input stream and place into multiple tables.

• Create derived data such as: aggregations, conditions, calculations.

Load • Use a batch (bulk) update operation that keeps track of what is

loaded, where, when and how.

• Keep a detailed load log to audit updates to the data warehouse.

Components of SSIS

Control flow• Work flow tasks necessary to populate and maintain a data

warehouse. Many different tasks possible.• Batch format.

Data flow• Moves data from source to destination.• Capable of many different types of transformation.

Event handlers• Specialized control flow that occurs in reaction to an event.

Package explorer• Add-in to manage SSIS package. Examples of tasks: edit,

delete, change location of folders; hide a package, change export/import configuration options.

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Why do we use utilities like SSIS to help us populate a

data warehouse?

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Understanding the use of BI

Understand the placement of BI within business performance management.

Know how to pick your spot for data driven decision making (analytics).

Be able to create reasonable metrics.

Be able to design an effective business-oriented experiment.

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Business Performance Management

The business processes, methodologies, metrics, and

technologies used by enterprises to measure, monitor, and

manage performance.

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Process of BPM

Strategize Plan Monitor/Analyze Act/Adjust

Strategize: Where do we want to go?To become the Harvard of the west.

(Stanford in the 1940’s)

To give unlimited opportunity to women. (Mary Kay Cosmetics)

To give ordinary folk the chance to buy the same things

as rich people. (Wal-Mart) To make people happy. (Walt Disney)

Sony in the 1950’s: Become the company most known for changing the worldwide poor quality image of Japanese products. Make “Made in Japan” mean something fine, not something shoddy.

Tasks in the Strategic Planning Process

1. Conduct a current situation analysis

2. Determine the planning horizon3. Conduct an environmental scan4. Identify critical success factors5. Complete a gap analysis6. Create a strategic vision7. Develop a business strategy8. Identify strategic objectives and

goals

Components of a strategy

Strategic visionA picture or mental image of what the organization should look like in the future

Strategic goal A broad statement or general course of action prescribing targeted directions for an organization

Strategic objective A quantifiable goal with a designated time period and a defined measurement method

Critical success factors (CSF) Key factors that delineate the things that an organization must excel at to be successful

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Planning: How do we get there?

Operational plan: plan that translates an organization’s strategic objectives and goals into a set of well-defined tactics and initiatives, resources requirements, and expected results for some future time period (usually a year).

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Strategy dictates planning

An organization’s strategic objectives and key metrics should serve as top-down drivers for the allocation of an organization’s tangible and intangible assets

Resource allocations should be carefully aligned with the organization’s strategic objectives and tactics in order to achieve strategic success

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Monitor: How are we doing?

Performance measurement systemA system that assists managers in tracking the implementation of strategy by comparing actual results against strategic goals and objectives • Comprises systematic comparative methods

that indicate progress (or lack thereof) against goals

• Requires the development of metrics.• All measurement is about comparison.

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You can’t monitor what you don’t measure

Key performance indicator (KPI)A KPI represents a strategic objective and metric that measures performance against a goal

Distinguishing features of KPIs:• Consistent • Time-related • Benchmarked

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What are the most common KPI’s for profit-making organizations?

How about non-profit organizations?

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Balanced Scorecard Approach to Measurement

FinancialHow should weappear to ourshareholders?

CustomerHow should weappear to ourcustomers?

Learning & GrowthHow will we sustainour ability to change

& improve?

Internal BusinessProcess

What must we excelat?

Vision andStrategy

Act and Adjust: What should we do next?

Success (or sometimes mere survival) depends on new projects: creating new products, entering new markets, acquiring new customers (or businesses), or improving some process.

But, most new projects and ventures fail!• Hollywood movies: 60% chance of failure• Mergers and acquisitions: 60%• IT projects (large-scale): 70%• New food products: 80%• New pharmaceutical products: 90% …

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Act and Adjust: do it fast!

The goal is to fail fast. Or to know when something is

failing so that it can be adjusted before fully failing.

Or to fail on a smaller scale so that the effects of failure won’t be profound.

Or to be aware of why something failed so that failure produces learning.

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BPM “architecture”

So, where does Business Intelligence

fit in relation to Business Performance

Management?