CampionPPS : Business Intelligence Blog

In previous blog articles, we have outlined the large number of BI Benefits, and the potential advantages of adopting a more modern solution. The purpose of this piece is to provide an easy to use list detailing some of the salient points. Readers can then reference previous articles for greater depth.

BI Benefit 1 – Improved visibility, real time data availability: Newer BI solutions offer access to a proliferation of previously inaccessible data sources adhoc and on the fly, and can link with information that is both internal and external to the organisation (including social media content and market data). They are not constrained by a need to wait for lengthy overnight ETL processes, or by complex predefined data structures potentially impacting time to response and visibility. Instead, modern BI tools permit access to information at the source, and in real time, which can then be ‘mashed-up’, sliced and diced, and extracted into a single uniform stream that is easily manipulated and understood by the intended recipient. This standardisation of data collection and reporting ensures a universal language across the organisation, and helps to avoid ‘several versions of the truth’ and a lack of clarity. Modern BI tools work cross functionally pulling data from disparate sources to reduce informational silos, ensure greater transparency, and permit a swifter time to response. Better quality information at the right time to aid decision making. Improved visibility, reduced uncertainty, and faster answers to necessary business questions.

BI Benefit 2 – Better, more informed decision making: In addition to providing access to a breadth of data sources to improve visibility and aid decision making, the use of clearly defined performance metrics helps to better assess, monitor, and control business performance, as well as shape future direction. Newer BI tools are intuitive. By placing the software in the hands of the key decision makers at every level/ those who know what actually needs to be monitored, and via a process of exploration, it is possible to define and set appropriate KPIs to measure ongoing performance and any improvements made. These metrics provide a means to determine where the business has been, where it is currently, and where it is likely to be via the use of historic data, live feeds, and trending functionality. They facilitate a means to benchmark competitors, assess whether a particular strategy is working, and to identify problems via the monitoring of business areas against predefined targets. Any variance can be spotted instantly, improving time to response (imperative at an operational decision making level), and those areas requiring greatest focus identified for address. This ensures improvement efforts are directed to the right areas, enhances visibility throughout the organisation via a set of commonly communicated metrics, and brings a greater level of accountability and ownership. By using established metrics, it is possible to review the impact of one course of action upon another interrelated area. Furthermore, the opportunity for ‘what if analysis’ and the facility to explore several different options via a BI tool, enhances the decision making process and reduces uncertainty. Right information at the right time for more informed decision making at an operational, tactical, and strategic level.

BI Benefit 3 – Reduced Costs: Implementing a BI solution can save costs in a number of areas, in order to generate competitive advantage.  Firstly, they are cheaper to introduce than say a large data warehouse requiring new software/ middleware, additional servers or processing power for complex ETL processes, and heavy IT involvement throughout. Modern solutions can be run flexibly (and more cheaply), possibly via a web based or software as a service approach, require minimal IT support beyond the initial connection to source data (and less maintenance ongoing), and don’t entail a lengthy implementation. In addition, with traditional ETL processes, data is often pre-aggregated before any reports are written, leading to a potential mismatch between pre-aggregated information and actual report requirements defined later on. The result? Additional time and cost spent performing modifications following introduction. Newer BI solutions overcome this problem by allowing data access at the source, and affording the flexibility to transform it on demand.  Secondly, BI solutions assist with the identification and elimination of waste and with this, cost. Via greater visibility and the use of performance metrics, it is possible to identify opportunities or problem areas more easily, and direct resource to these relevant areas. In addition, the introduction of metrics allows the business to determine if a particular course of action is working, and the potential knock on impact elsewhere. As such, BI benefits the organisation by ensuring resource isn’t wasted looking at the wrong things, whilst facilitating a swifter time to response to avoid potentially costly issues from arising.

BI Benefit 4 – Rapid time to value: BI solutions have a rapid time to value, due to the lack of technical support required for implementation, and as a result of there being no need to build a complex IT infrastructure or large data warehouse as part of a lengthy process. Instead they link directly to divergent source data, and information is extracted and manipulated on demand.

BI Benefit 5 - Increased acceptance: Today’s BI tools are no longer the domain of senior managers and tech savvy analysts, with little relevance to staff at an operational day to day level. Instead, there has been a movement to place control firmly back with the end user, or those key decision makers able to define requirements and respond to information presented. The software is easy to use, requiring minimal training, and the standardised approach to data collection and reporting often leads to greater integrity of information and hence trust in what it is showing. Furthermore, as data is accessed at the source and ‘mashed-up’, the end user see’s only relevant detail via their dashboard or reports, rather than a mass of information which requires sorting and which was based upon structural constraints/ a ‘best fit’ scenario. The adoption of a single easy to use view improves efficiency as the end user manipulates and interprets data for themselves, rather than relying upon a swelling force of IT personnel for report design and modifications, as well as ongoing support.  All of these areas combine to ensure greater acceptance, and with this, increased usage.

So that’s just a summary of the key BI Benefits, if you get in touch we can explore in more detail what BI could do for you and your organisation.

In this article we’ll be having a look at performance metrics, and specifically how BI applications can help with performance metrics.

The old adage ‘what get’s measured get’s done’ certainly contains an element of truth. And it’s really the crux of performance metrics.  Without measurement of where the business has been, where it is currently, and where it expects to be, it is impossible to make informed decisions, effectively focus efforts, and to benchmark performance. Within an organisation, the creation and use of suitable performance metrics helps to understand the business in a more meaningful way. They provide a target against which to reference actual performance and judge any gaps for address.  Performance metrics enable comparison against competitors, are a means to assess if a particular strategy is working, and provide a universal language when communicating with internal and external stakeholders. Performance metrics help to direct and focus efforts where it’s most required, and ensure greater transparency and accountability throughout the organisation.

In his article “How to Measure Success: Uncovering The Secrets of Effective Metrics”, David Trimble argues that any performance metrics system should cover the following areas as a minimum:

• Customers eg service levels, store waste, EPOS, or stock holding
• Suppliers eg OTIF , number of specials
• Internal Processes eg inventory levels, defect/ quality issues, and machine efficiencies
• Finance eg sales vs budget, revenue and margin
• Employees eg absentee levels

BI applications support the creation of suitable performance metrics in a number of ways.

Cross Functional Performance Metrics

Firstly, they work cross functionally, allowing real time access to a range of previously unavailable information sources, presenting data in a single intelligible view that is easily understood by intended recipients. In doing so BI applications improve business wide visibility by reducing informational silos, and ensure a single/ standard format for data collection, reporting, and communication. This ability to integrate different functions of the business is particularly key when implementing performance metrics in one area and assessing the potential impact upon another. For example, in the public sector, a goal may be to reduce patient waiting lists, which could have the resultant effect of a dip in customer satisfaction levels as individuals are ‘processed’ more quickly. Alternatively, in retail, promoting a product heavily may drive significant cannibalisation of a similar range, causing increased inventory or waste levels as orders tail off unexpectedly. In contrast, a cancelled promotion could result in increased capacity that requires filling, a requirement to change staffing levels, or a large deficit to budget. All of these interdependent areas can be measured via a BI application, and their impact upon one another monitored/ controlled. The fact that such tools allow access to a diverse range of information sources real time and facilitate a kind of ‘what if analysis’ (e.g. if we promote more heavily, what is the impact upon overall revenue, or can volumes be achieved if machine efficiencies remain in line with recent performance rather than budgeted etc), improves decision making capability and time to response.

Appropriate Performance Metrics

Secondly, BI applications are intuitive, and through exploration, assist individuals in setting appropriate performance metrics specifically geared to their area of focus. The idea is one of putting the right information in the hands of the right people; that being those equipped and authorised to make key decisions at an operational, tactical and strategic level. As modern BI applications permit access to information at the source, rather than suffering the constraints of complex data structures, any performance metrics can be based around actual requirements rather than a ‘best fit’ scenario. It is important to note that all performance metrics should measure the ‘right’ things, and in putting control firmly in the hands of those actually doing the job via an easy to use tool, it is possible to define and implement suitable KPI’s which most closely fit their needs, and that of the organisation and it’s strategies. In turn, increased use at all levels often translates into increased acceptance and greater ownership.

Established Performance Metrics

Finally, the use of BI applications to monitor and control business performance through established performance metrics reduces the need for heavy manual intervention and manipulation, via the creation of predefined reports and dashboards (updated automatically). The use of alerts or notifications can be incorporated to flag any variances against expectations, providing direction as to those key areas requiring attention and through an exception based approach. The opportunity to trend data ongoing also allows individuals to potentially spot issues before they occur, and take reparatory action. For example, this may include reviewing data which shows a sustained fall in sales and corresponding reduction in market share, consistently lower machine efficiencies than currently being used for planning purposes, a widening gap against budget, or creeping waste levels associated with a particular product or group of products.

In summary, BI applications can be used to define, create, and track suitable performance metrics to measure and control business performance, along with any interdependencies between areas. Their introduction can reduce informational silos, improve time to response, and ensure any performance metrics created are based solely upon need, rather than being shaped by inflexible data structures and inaccessible detail.

In this article, we will review the use of modern BI solutions as a decision support tool at a number of levels:

1)   Strategic Decision Support Tool - concerned with the ‘big picture’, and the defining or shaping of long term future direction (what products are we selling, what markets should we enter or exit, where do we want to be?). Typically this often takes account of information largely external to the organisation, is less certain, and is the domain of high level management and executives.

2)   Tactical Decision Support Tool – focuses on the ‘how’ and those building blocks and initiatives required to achieve the overall strategy. This would typically be the battleground of middle management. (do we need to recruit or train more staff in order to introduce new product lines, should we invest in additional or specialist machinery to increase capacity or facilitate production of the new SKUs, and what marketing strategy should we adopt to support any planned launch?).

3)   Operational Decision Support Tool - revolves around the ‘now’, and action taken on the ground at a day-to-day level to achieve tactical objectives (how will we service a particular customer on promotion, how much material should we order, do we need to run special deliveries if there is a risk to customer service, should we collect and rework rejections or simply dispose of stock and replace it with fresh product?).

By using a BI tool to create appropriate metrics and track progress or non-conformances against predefined targets, it is possible to identify key areas of focus. This drives the decision making process.  BI as a decision support tool. As an example at an operational level – a planner, via an alert notification, may be made aware that a primary supplier has short delivered. The push notification directs their attention to this fact as it occurs, and they can take reparatory action to minimise associated risk (forcing the primary supplier to run a special delivery, or sourcing goods from another supplier). Alternatively, at a more tactical or strategic level, it may become apparent that there is a large deficit in the revised forecast against budgeted sales. The resultant action may be to run increased promotional activity to drive revenue, or even enter a new and expanding market longer term.  Using BI as a decision support tool will allow you to explore options and what-ifs and make faster, more informed decisions.

Modern BI software is without the constraints of overnight routines or complex ETL processes, and instead accesses information live and at the source. This speeds up data availability, and improves time to response allowing decisions and follow-up action to be taken sooner than it otherwise would. BI as a decision support tool.  The very fact that reports, dashboards and alerts can be created containing data that is relevant to only the person constructing it, aids clarity and prevents the need to sift irrelevant detail. At an operational level for example, an individual may be concerned with actual vs expected machine output, or sales vs forecast on promotion and the potential impact. At a more tactical level a manager may be interested in machine efficiencies vs those budgeted. Or at a strategic level, focus could be given to top line sales vs target and forecasted landing position. In addition, the functionality to drill up, drill down, and slice or dice information using the BI solution provides the requisite depth of detail for all levels and enhances visibility. It is this detail which supports a more informed decision making process, allowing data to be interrogated adhoc and on the fly, facilitating a swifter response.  The key is that it provides the right information, in the right format, to the right people, at the right time – and that’s why it’s such a powerful decision support tool.

The other function that new BI solutions offer as a decision support tool is that they can facilitate access to a breadth of information sources previously not available. They can provide a valuable insight into untapped arenas external to the organisation. This may include links from social media sites or external marketing bodies for example, providing feedback on what is being said about the company’s products, or those areas which are in growth or decline. Again, this may shape future direction, and aids decision making in terms of making changes to the product, entering new markets, or deciding where to invest etc. A BI tool provides the functionality to present data from an explosion of sources, into a manageable user-friendly format that can actually be acted upon.

So hopefully we’ve illustrated how BI can be used as a decision support tool.  BI is really all about making faster, better decisions.

In our previous blog post BI to achieve Supply Chain Control we referenced the Capgemini Global Supply Chain Control Towers article. In this, analysts describe supply chain visibility as “the key enabler for managing a business both within organisational boundaries as well as across the boundaries”. It is therefore no surprise that enhanced supply chain visibility is seen as a critical component for improving business performance, reducing costs, and creating competitive advantage in a situation of significant economic pressure. In this article, we will aim to demonstrate how a BI tool can support this process and improve supply chain visibility.

Firstly, newer BI solutions such as InetSoft are intuitive. Through a process of exploration, it is possible to define and set appropriate supply chain metrics to effectively monitor, assess, and control business performance. In creating a benchmark against which to reference expectations, the organisation can closely track any deviation and take reparatory action to bring the variance back into alignment. By developing these KPIs to measure performance, a BI tool therefore helps to understand the business in a more meaningful way, aiding supply chain visibility. This may include introducing measures such as machine efficiency, labour productivity, defect levels, customer service, waste or downgrade, and supplier delivery performance. Once these metrics are established, minimum target levels and the resultant performance against them can be communicated both internally and externally, improving understanding of requirements and any gaps, whilst driving greater accountability and transparency throughout. This in turn aids a more informed decision making process, directing attention to those areas requiring greatest focus.

Secondly, BI solutions such as InetSoft permit access to a diverse range of information sources real time and on the fly, something that has become increasingly important given the sheer quantity of data now available to organisations. In their recent study “Levelling the playing field. How companies use data for competitive advantage” the Economist Intelligence Unit found that of those businesses surveyed, only 17% of companies use 75% or more of the data they gather. Topping the key facets, 81% said that accuracy was “very important”, closely followed by timeliness at 71%.  InetSoft BI tool supports both accuracy and timeliness to feed improved supply chain visibility in the following ways:

1)   InetSoft BI permit access to data at the source and real time, is not constrained by complex predefined data structures or lengthy ETL processes, and can be used to present data from several sources into a single intelligible view than can be acted upon. This real time link with a proliferation of previously inaccessible information sources both internal and external to the organisation, enhances supply chain visibility, supports a swifter time to response, and facilitates a more informed decision making process. Right time.

2)   In terms of accuracy, as data is accessed directly at the source, rather than being manipulated or massaged manually outside, there is less opportunity for error.  Taking the example of spreadsheets, many enterprises are still heavily reliant upon their use for data capture, analysis, and reporting purposes. They are relatively straightforward to use, and require minimal IT involvement so remain popular. They do however come with inherent problems; they are heavily labour intensive, subject to poor version control if passed between departments, are prone to manual error, can lead to several ‘versions of the truth’, and often suffer from update issues when linking several workbooks together. The result? The lack of a single reliable view upon which to make critical business decisions, limited trust in available data within the organisation, and the creation of informational silos as individuals use their own personal spreadsheets. This supports the Economist Intelligence Unit findings, in that eight in ten respondents commented that they were without effective processes to share data.  BI tools overcome this issue in that they are cross functional, aligning data from several different sources into a single stream, whilst standardizing the means in which data is extracted and reported upon (using automated analysis/ collection). This provides more reliable detail to the end user, and has the effect of actively encouraging individuals to utilise and share the plethora of available detail. Right information. Increased supply chain visibility.

Finally, today’s BI solutions are focused on putting the right detail in the hands of the right individuals ie those best equipped to analyse, interpret, and act upon any findings. Through visual dashboards, push notifications or alerts, and by presenting the end user with only that detail which is relevant to them and in a format that is easily understood, supply chain visibility is improved. As is time to response. The fact that these tools are easy to use, and are no longer solely the domain of senior managers using information at a strategic level, allows those individuals at an operational level to more actively engage with the software, encouraging acceptance, and increased use.

In summary, putting the right detail in the hands of the right people at the right time, equals enhanced supply chain visibility and indeed enhanced visibility across the wider organisation.

The marrying of business intelligence with the capabilities of the web makes perfect sense.  On two fronts:

1. Web Business Intelligence in terms of incorporating web analytics into the BI system
2. Web Business Intelligence in terms of a web-based platform for the BI system

Web Analytics

BI is about identifying, extracting and analysing data with the aim of unlocking the value of data within the organisation’s database, giving decision-makers tools upon which to make better decision.  Web business intelligence goes one step further by helping businesses to harness not only the value of information stored within their internal databases, but also the vault of information stored on the web.

Web business intelligence represents a leap into the future by matching improvements achieved in the BI solutions with the infinite capacity of the web.

Web business intelligence boosts the potential of data analytics by harnessing the wider capacity of the web.  What this means is that decision-makers have access to a larger body of information upon which predictions, evaluation or analysis can be carried out.  One net effect is that businesses can be better armed with information about consumer habits that can in turn inform marketing strategy and campaigns.  With web business intelligence, businesses can also streamline processes based on revealed trends or predictions of any known variable.

Web-Based BI Platform

Many BI vendors now offer thin client or zero client BI solutions, by-passing the need for heavy investments in hardware and high resource dependency. Web business intelligence offers a lot of benefits including greater affordability, reduced resource demand, built-in flexibility backed by external support in the form of upgrades and software improvements.

One can almost predict that soon, gone will be the days when BI is hosted on a large internal server demanding the constant manipulation of IT experts and analyst to achieve results.

Web business intelligence also offers a more portable BI solution giving users greater access to their information allowing decision-makers access to the right information at all times.  This helps to strengthen the ethos of self-service as users can access and share information using just a browser.

Summary

The primary reason why web business intelligence makes perfect sense is because it amplifies the advantages normally gained from BI systems.  It is no wonder that so many BI vendors are moving in the direction of developing web-based BI systems.

The cornerstone of every business is to drive down cost, increase efficiency and effectiveness as a means of increasing profit margins.  To this end, decision-makers are looking to invest in an affordable BI solution that will help them to achieve their combined objectives.  And web business intelligence offers that.

Businesses looking to invest in a BI solution are best advised to look in this direction, as there is a clear shift from the old BI paradigm.  Web business intelligence is definitely the way forward.

APICS defines Sales and Operations Planning (S&OP) as the “function of setting the overall level of manufacturing output (production plan) and other activities to best satisfy the current planned levels of sales (sales plan and/or forecasts), while meeting general business objectives of profitability, productivity, competitive customer lead times etc, as expressed in the overall business plan”.

More generally, S&OP has been seen as a means to balance demand and supply, integrate financial and operational plans, and align higher level strategies with day to day operations.  We use the InetSoft BI solution to aid the S&OP process.

Improve S&OP with Improved Information

Firstly, using InetSoft BI improves visibility across the organisation, reducing informational silos and integrating departments, in turn driving a swifter, more informed decision making process re S&OP. In assisting to define appropriate metrics to measure, assess and control business performance at an operational, tactical, and strategic level, the InetSoft BI solution helps to understand the organisation in a more meaningful way. InetSoft BI enables access to a diverse range of previously untapped information sources on the fly, both internally and externally. The result is an increase of available data and improved transparency. This can all feed into improving the S&OP process. Typically, it is the use of metrics to benchmark expectations and measure historic or planned performance which guides any S&OP sessions. Furthermore, as the InetSoft BI tool can assist in linking data from different areas within and external to the business, it is cross functional and engages all relevant S&OP parties. The outcome? Better quality information at every stage, incorporation of business wide constraints and drivers, reduced uncertainty, and the ability to more confidently shape future direction in line with strategic objectives.   Improved S&OP.

Improve S&OP with Real-Time Information

Secondly, with the InetSoft BI solution you can focus on putting the right level of detail in the hands of the right people, at the right time. Therefore, individuals need only be concerned with information that is relevant to them and which they are expected to act upon, aiding clarity, rather than being overwhelmed with a mass of unnecessary detail. Thereby improving the S&OP process. Live information is easily accessed and manipulated adhoc, without the need to wait for overnight routines or for a lag in data availability, impacting time to response. From an S&OP perspective, a BI tool can reduce the production time of any requisite reports previously based upon complex data structures and often out of date by the time any meeting is held. The reason for this obsolescence? A need to take a snapshot of data to serve as a point of reference for metric purposes as much as a week out from an S&OP session, in order to allow sufficient time for report extraction from less user-friendly sources. In contrast, the ease with which newer BI tools can extract information and present it at a level required by the recipient can help to shorten this timeframe, going so far as to support real time access if deemed appropriate. This in turn facilitates a monthly planning cycle based around a need for relevant and timely data, rather than one constrained by a requirement to build in a buffer for information gathering. This benefits any S&OP session in ensuring that only the most up-to-date view is presented when key decisions are being made.

Improve S&OP with Visual Impact

Thirdly, more modern BI tools aren’t limited by their capability to present any plan used for S&OP purposes. The level of detail in which information is initially presented should be relevant to the audience concerned, however to aid decision making, they possess the functionality to drill up or down, slice and dice, and mashup information to aid clarity and allow exploration of alternative options (prior to approval of any plan).  The facility to present data in a visual format is particularly impactful when set against pages of heavy detail.

Improve S&OP with What-If Analysis

Finally, the flexibility offered by newer generation BI tools such as InetSoft support ‘what if analysis’. Therefore, at every level including before and during each S&OP session, individuals can explore numerous alternative options and solutions, reviewing their potential impact before making their suggestion as to the ‘best’ plan. That is, the one which most closely marries all areas together, and supports achievement of overall business objectives.  The InetSoft BI solutions cuts down the time and effort required to produce S&OP reports, it removes the need to lock off a version of the plan for analysis several days ahead of the S&OP meeting, which means no more meetings with out of date reports.  The what-ifs can be done there and then during the S&OP session and everyone can see and understand the impact, and make the decisions on the spot.  InetSoft BI can drive S&OP and improve the overall process.

In a fiercely competitive BI market, size remains a relevant factor. Invariably there are advantages as well as disadvantages to being either small or large.   Large businesses generally benefit from economies of scale and smaller companies pride themselves on a customer-focused approach.

Big BI vendors are often criticised for failing to effectively support data analytics through visualisation.    Stephen Few in an article titled “Big BI is Stuck,” looks at how big business intelligence vendors have failed to grapple with the demands of the current BI market.  According to Few, big BI vendors continue to use the same approaches they used 15 years ago to challenge problems that are now radically different.  The BI solution offered by these vendors is based on technology and engineering lacking what he describes as data sense-making.  While not making a case against big business intelligence, Few is of the opinion that in order to be more relevant, big BI vendors will need to shift from a techno-centric engineering focused approach to a more human-centric design focused approach.

Small BI vendors on the other hand are lauded for being more agile with the flexibility to respond quickly to changing demands.   In many respects, small BI vendors have been quick to identify gaps in the BI market and with the right innovations have filled those gaps.  In a lot of ways, it is the small BI vendors who have been driving change due to their ability to respond quickly to what users are demanding from a BI solution.  Nevertheless, small BI vendors are no more immune to challenges than their larger competitors.  According to Few, many small BI vendors, even where they are able to identify problems faced by the big BI boys often find themselves replicating solutions mired with the same problems.

Being closer to users, smaller companies enjoy the specific advantage of understanding the type of change that is demanded and can quickly create software with design and visualisation capacity for achieving desired outcome.   Larger vendors have the capital and the resources needed to invest in the research and development of new BI technology.  By both adding to the pool of ideas on business intelligence, players at all levels should be helping to define and redefine BI solutions propelling BI to constant improvements.

However, it would still appear that the big BI vendors are struggling to get to grips with how to make their BI solutions aligned with the modern day requirements of data sense-making, data visualisation or even really with what their customers need.  Whilst the smaller players carve out a niche for themselves focusing in on some of these rich features.  However, although big BI may still be struggling and be a bit stuck, my guess will be that they’ll eventually just go ahead and ‘un-stuck’ themselves by buying up these small BI vendors and bolting their solutions on to their gargantuan ones – and no doubt poorly!

Business Intelligence solutions can inherently be Data Integration Solutions.  To begin with, there must be access to a wide array of relevant data.  There must be an effective process for integrating data across different sources; if data is missing from the analysis the results derived will either be incomplete or inaccurate. Data integration solutions require the marrying of the right architecture with the right processes based on the specific requirements of the business.  But within the BI community, there is no real consensus on what is the most effective means of data integration.  What are the best data integration solutions?

For a long time data warehousing was the primary architecture on which BI solutions were built.  These solutions were geared mainly towards big businesses or enterprises where there is a large volume of both current and historical data (not to mention a large budget!).  Data is stored & structured within the data warehouse or between data marts to facilitate efficient data retrieval.   However, while solving problems relating to the dispersion of data across different locations and problems with data quality, data warehouses introduced a new set of challenges.  Data warehouse models proved to be very costly and resource dependent often backed by performance and data consistency challenges.  In fact, whereas data warehouses aim to integrate data into a centralised source, it oftentimes becomes a problem in itself as data is dispersed across data warehouses and data marts.  Using data warehouses and associated ETL approaches as data integration solutions is often the most costly approach.  It’s often not the best data integration solution.  Certainly, other data integration solutions should be considered.

New approaches to data integration are constantly evolving and data mashup now promises a unique advantage.  BI solutions modeled on this approach even lend themselves to SMBs / SMEs.  The data mashup approach to data integration does not set out to centralise data sources, but rather once the source of the data is identified allows the data to be integrated on the fly.  There are many advantages to integrating data using a mash up approach as performance, data integrity and consistency issues can often be averted.  Furthermore, data integration solutions using a mash up approach proves much more cost effective and demands far less resources.  While BI solutions modeled on a mash up approach to data integration can operate in the smaller business sectors, these solutions often have the capacity to sit horizontally on existing applications, including the existing data warehouses that are often in place at large enterprises.  So it’s very scalable.  Add to this the ability of data mashups to integrate both internal and external data … and that’s why we think the data mashup approach is one of the best approaches to data integration solutions.

With the current difficult economy there is even greater recognition of the need for effective supply chain control. With increased complexity resulting from factors such as volatile consumer spending patterns, global operations, a proliferation of diverse information sources, and outsourcing requiring greater collaboration, a means of efficiently controlling operations and more importantly costs is key. The systematic identification of costs, and their elimination or reduction, can have a significant impact on bottom line performance.  So it comes as no surprise that this area has received added focus from savvy supply chain heads.  And that they are turning to BI to achieve supply chain control.

Supply Chain Control Towers

Much has been written of late regarding supply chain control towers. Initially this idea focused around having a central hub utilised to provide visibility into inbound and outbound distribution flows, the analogy being a control tower at an airport handling aircraft flying in and out. However, in their article Global Supply Chain Control Towers, Capgemini analysts comment that:

“Supply Chain Visibility is the key enabler for managing a business both within the organizational boundaries as well as across the boundaries. This visibility provides speed, reliability and flexibility in order to gain a competitive advantage in the form of well controlled and managed supply chain functions. In response to the need for Supply Chain Visibility, the leading Supply Chain Visibility principles are increasingly being embodied in Supply Chain Control Towers. A supply chain control tower is a central hub with the required technology, organization and processes to capture and use supply chain data to provide enhanced visibility for short and long term decision making that is aligned with strategic objectives”.

They later go on to say that:

“Supply Chain Control Towers are cross-divisional organizations with system integrated ‘information hubs’ that provide Supply Chain Visibility. These hubs are used for gathering and distributing information, and allow people trained to use these visibility capabilities to detect and act on risks or opportunities more quickly. Supply Chain Control Towers are typically set-up to monitor, measure and manage transport and inventory movements across the supply chain”.

Supply Chain Visibility

As you can see, much of the focus of supply chain control towers seems to revolve around improving visibility, which in turn, through the gathering/provision of relevant and timely information consolidated in a single location, facilitates a faster time to response from key decision makers along with greater control.

BI solutions can be used to deliver this visibility for supply chain control.

The newer BI solutions in particular can aid supply chain control in that they provide the technology and means to access previously untapped information on the fly.  They can also be used by those individuals actually doing the job and making operational decisions, rather than being used as a tool solely for middle management analysis. They are easy to deploy and even easier to use. In particular, their ability to link with a variety of diverse sources, from social media sites to adhoc excel spreadsheets, and present the data quickly and in a single source format that is both intelligible and relevant to the user concerned, improves visibility, prevents the need to sift or sort insignificant data, and speeds up time to response.  Taking the premise of supply chain control towers, using a central information hub, a BI tool could be used as the means to extract data for analysis, produce reports or alerts for performance outside tolerance, and trend information in order to predict future pitfalls.  Greater business wide visibility. Swifter and more informed decision making. Greater control.

BI for Supply Chain Control

In terms of functionality, the newer breed of BI software provides the means to access data real time or near real time, which arguably results in action being taken sooner than it otherwise would (if waiting for overnight jobs or lengthy data warehouse/ETL processes to be completed).  As data is accessed at the source, it can be extracted and acted upon instantaneously. A delivery failure can be rectified to avoid a hit on customer service, increased production can be secured in the event of a heavy and unexpected promotional spike, or supplier progress can be integrated into performance charts and potential availability problems identified ahead of time. All of these features aid greater transparency across the supply chain, and through appropriate identification, analysis and response, assist to achieve greater supply chain control.

Through increased transparency and in monitoring of performance via appropriate supply chain metrics, it is possible to achieve greater control over operations and costs.   BI can improve supply chain visibility, which in turn improves supply chain control and performance.

But visibility without action is fruitless, and BI also helps with the decision-making process and drives action.

Having touched on the virtues of data mashups in several other articles, it seemed only logical to take a closer look at this key BI technology.  Particularly since there has been an increase in the adoption of data mashups as businesses demand more flexible and affordable BI solutions.  The term data mashup has been used in the BI industry to describe applications that combine, integrate or aggregate heterogeneous data sources providing new and improved results.

What is Data Mashup?

Clarkson and Holmes in The Architecture Journal define data mashup as the technique for building applications that combine data from multiple sources to create an integrated experience.

What that really translates to is the ability for business users to access and merge data on the fly themselves, as and when they need it.  They don’t need to rely on IT.  And IT don’t need to build complex and expensive data warehouses, data marts, or ETL processes.

What is particularly interesting about data mashup is the fact that it enables the integration of not only internal data sources but also external data sources.  To this end, many data mashup applications tend to be web-based giving businesses an unmatched advantage in accessing and integrating a wide spectrum of data from the web with internal data sources.  With the aid of data mashups businesses can analyse not only internal variables but also external ones.

There is ongoing innovation in the BI industry, as businesses demand more intelligent, scalable BI solutions capable of achieving flexibility and optimised performance.  In response, data mashup applications have started to emerge which address many of these demands ahead of other models of data integration.  There has also been a push to make BI solutions more user-friendly and more of a focus on self-service BI.  Earlier BI models were rife with complexity creating a significant demand on IT to manage dashboards, reports, cubes and other analytical tools and to generate results.  This issue has also been addressed with BI solutions, such as InetSoft Style Intelligence, that use data mashups giving users a wide scope for experimenting and integrating data sources to test and achieve desired results reducing the demand for IT support.

Advantages of Data Mashups

• Data mashups have a higher rate of delivering a successful BI implementation due to higher end-user satisfaction and user adoption.
• Data mashups deliver business results quicker.
• Data mashups enable faster, better decisions by putting business users in control of designing a solution that is fit for purpose.
• Data mashups have a lower cost of ownership since it vastly reduces the need for expensive hardware and expensive IT resource.
• Data mashups facilitate self-service BI by empowering users to experiment with information and find new ways to achieve the best results.
• Data mashups enable users to leverage just-in-time, quick and easy solutions making mashups an agile BI solution.

There are a myriad of benefits that can be derived from using data mashups and our list could go on.  But hopefully that gives you the gist for now…