Approccio e Roadmap per la razionalizzazione dei sistemi analitici Corporate: il caso DHL Express

Annual Meeting del FORUM ICT

LEAN IT

Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com

LEAN IT

Approccio e Roadmap per la

razionalizzazione dei sistemi analitici

Corporate: il caso DHL Express

a cura di Luca Quagini e Matteo Rossetti

SDG Group

20 novembre 2012, Fondazione CUOA

Agenda

� Executive Summary: contesto e mandato

� DHL Express: profilo azienda e profilo IT

� Il Progetto “Lean BI”: approccio, roadmap e scelte

� Tecnologiche

� Funzionali

� Organizzative


� Organizzative

� Take Aways

2

Executive Summary: il contesto [1/2]

� Tutte le attività e risorse ICT necessarie per lo sviluppo e la manutenzione, insieme a

quelle per la gestione dell’infrastruttura di comunicazione e di esercizio degli applicativi,

sono state demandate ad una società del gruppo (ITS).

� Presenza di due distinti centri (Praga e Kuala Lumpur) di competenza ed esercizio

della funzione ICT, in una sorta di “regionalizzazione” delle architetture e soluzioni

applicative: Europa e America (EUAM) vs. Asia Pacific e Emerging Markets (APEM)

� Due sistemi standard centralizzati di billing, adottati da ciascuna country

Copyright © 2012 SDG group. All rights reserved. www.sdggroup.com3

� Due sistemi standard centralizzati di billing, adottati da ciascuna country

� Limitata standardizzazione dei sistemi ERP adottati da ciascuna country, nessuna

centralizzazione degli stessi

� Sistema centralizzato (OPMS) di gestione e monitoraggio delle Operations lungo

tutta la Supply Chain per singolo shipment (dalla richiesta di pickup, al pickup, agli step

di attraversamento di ogni singoli gate/hub, fino alla delivery finale)

� Integrazione di OPMS con i sistemi di billing, con attivazione di eventi (transazioni) in

funzione di ciascun checkpoint superato lungo la supply chain

Executive Summary: il contesto [2/2]

� ICT staff - Corporate e Regional (EU, AM, APEM) - recentemente ridotti a poche

unità e focalizzati su competenze di Program/Project Management, di supporto

all’analisi funzionale dei requisiti di business e dedicati alla gestione dei progetti ICT

assegnati direttamente ad ITS e/o subappaltati da quest’ultima ad altri vendors.

� Piena autonomia alle singole country nell’individuazione e implementazione di

soluzioni applicative locali, al di fuori dei sistemi di billing e OPMS (centralizzati).

� Business IT (B-IT): si tratta di una funzione aziendale presente in ogni legal entity


� Business IT (B-IT): si tratta di una funzione aziendale presente in ogni legal entity

(Country, Region, Corporate) e dedicata al ruolo di collegamento funzionale tra LoB

(Sales, Finance, Operations, Customer Service …) e dipartimenti ICT locali e/o la

struttura ITS globale.

� B-IT Operations

� B-IT Sales & Finance

� B-IT Customer Service

Executive summary: Obiettivi del Progetto

� Semplificare e razionalizzare l’architettura funzionale e tecnologica di BI a livello

Corporate e Regional

� Creare i presupposti per l’adozione della nuova piattaforma BI anche a livello

Country

BI & EDW Roadmap: keep it simple, keep it lean!


Country

� Aumentare l’efficienza dei processi di fruizione e gestione della BI:

� Fruizione:

� riduzione time-to-delivery dei report e delle analitiche � BI Self Service

� riduzione degli errori manuali � automazione

� riduzione errori di comunicazione � vocabolario comune

� confidenza nelle metriche di business � single version of the truth

� Gestione:

� riduzione del numero di sistemi/silos di BI

� riduzione licensing costs

� riduzione user support & application maintenance costs

� aumento affidabilità: ridondanza, disaster recovery, load balancing

5

DHL e il gruppo Deutsche Post DHL

DHL is Part of the World's Leading Logistics Group, Deutsche Post DHL

� It offers integrated services and tailored, customer-focused solutions for managing

and transporting letters, goods and information.

� It comprises four divisions.

� Express

� Global Forwarding, Freight


� Global Forwarding, Freight

� Supply Chain

� Global Mail

These segments operate under the control of their own divisional headquarters. The

Group management functions are performed by the Corporate Center.

Internal services which support the entire Group, including Finance Operations, IT and

Procurement, have been centralized. This consolidation enables DHL to increase the

flexibility of our business, improve service quality and leverage economies of scale and

cost benefits.

DHL's international network links more than 220 countries and territories worldwide.

6

Head Office: Bonn, Germany

Revenue: Approx. 11.8 billion euros (2010: approx. EUR 11.1 billion)

Shipments: Approx. 468 million (TDI: 141 million)

Network: More than 220 countries and territories served // more than 500 airports served globally

Employees: Approx. 100,000

Customers: Approx. 2.5 million

Aircraft: Approx. 250 dedicated aircraft

Main Global Partner Airlines: Aerologic, Kalitta Air, Polar Air Cargo Worldwide, Southern Air

DHL Express: Struttura


Main Global Partner Airlines: Aerologic, Kalitta Air, Polar Air Cargo Worldwide, Southern Air

Commercial Flights: Approx. 1,760 daily flights (average; domestic and international)

Vehicles: Approx. 31,000

Facilities: Approx. 4,100

Service Points: 34,000

3 Global Hubs: Hong Kong, Leipzig, Cincinnati

15 Main Regional Hubs: Amsterdam, Bergamo, Brussels, Copenhagen, East Midlands (UK), Frankfurt, London, Paris, Vitoria (Spain) // Bangkok, Singapore // Bahrain, Dubai, Lagos // Panama

Global IT Centers: IT centers in Cyberjaya (Malaysia) and Prague (Czech Republic), supporting the entire global network

Global QCC: Global Quality Control Center are located in Bonn (Germany), Leipzig (Germany), Cincinnati (US) and Singapore (Singapore).

DHL express: Struttura BI & DWH

� Corporate

� Sviluppo stratificato e non organico di soluzioni dipartimentali: Siloed Data Mart

� Replica incontrollata di informazioni sia anagrafiche, sia di metriche aziendale

� Assenza di un business dictionary cross-funzionale comune

� Piattaforme diverse e “regionalizzate” presso i due IT Center:

� Praga: Teradata + IBM Cognos 8

� Kuala Lumpur: Informix + IBM Cognos 7.x + PowerPlay Cubes

� Fallimento delle precedenti inziative di Enterprise DataWarehouse


� Regional

� Implementazione di soluzioni custom estemporanee

� Scarso utilizzo di strumenti di sintesi

� Sistemi BI Regional pressoi due IT Center

� Country

� In alcuni casi: applicazione siloed presso IT Center

� In generale: development, run e maintenance locale

� Data Feed: da sistemi di billing (centrali) e/o ERP (locale)

� Solo linee guida corporate su scelte tecnologiche e di piattaforma BI/DWH �

landscape disomogeneo

8

The same data is stored in many places on the same Teradata

system

Data availability

Many applications copy data from different into their data mart

Almost each application is using it‘s own BI Layer

Piattaforma DWH/BI - Prague


Data is being processed in many different ways

leading to a lack of transparency

Data availability and data

freshness might not support the

needs of future BI

Two major silos: OPMS, DDWc

Many applications build on top of these

• Solid foundation

> DWH pillars by Business Process: Commercial, Finance, Operations

> TD best of breed expertise and technology

• Highly fragmented

> Up to 100 items (ETL, Data Marts, Virtual Repository, Front-End Apps, Web Applications, …)

> No standardization strictly applied

Global BI Ecosystem


• Vertical by Process

> No horizontal layer serving different business processes

> BI apps developed regionally and adopted as best practice

> No single version of the truth

• Sub-optimized

> Act now! vs. Consolidated Global BI Tomorrow

> Difficulties on execution of Long Term Strategy

> Lack of Data Governance � Partial data duplication

> Local and Regional BI sometimes not aligned with Global BI

Why BI Roadmap for DHL Express?

Give faster answer to all kinds of questions

Get more knowledge out of existing information

Optimization of Run Costs by consolidation of BI Systems

Better and more detailed understanding of customers BI

Roadmap


� Reduce costs and getting more lean

To see challenges in context

Information as a differentiator

Get use of early warnings and risk management

Analyse root cause and react proactively

Avoid the Babylonian Language Tangle

Optimize enabling BI systems and business processes

Single version

of the Truth

New customers: Focused

New Cross-Sell/Up-Sell opportunities through cross-divisional data

2.620 Mio €Revenue in

2,62 Mio. Revenue growth per Quarter

Bundling of product with service: Information

management (i.e. Event Management (SMS), GoGreen Certificates, Etc.

Customer develop-ment: Special offers for High

OpportunitiesFacts Leverage0,1% Rule (estimation)

Quarterly Impact

0,1%

Additional

revenue

Ca. 10 Mio. growth per Year

Annual

Impact

High Level estimate for Lean IT impact


Focused campaigns on granular and consistent data

global process cost

management with insight as

basis

Revenue in Q1 (2010)

Assumption:95% of

Revenue = costs (5% margin)

Business performance Management (Single view of the business)

0,1%

Cost

savings

2,5 Mio. Costsavings per Quarter

offers for High value customers; Development of specific products,

etc.

Identification of Value drivers and bottlenecks of processes,

Monetary Network visibility

Cross-divisional benefits through holistic view and better root cause analysis, Reduced Data Latency

Ca. 10 Mio. Cost savings per Year

REVENUE

COSTS

General BI Roadmap methodologyPhases

Status Quo

(as-is: current situation and status quo of BI Landscape)

Target state

(to-be: requirement analysis)

Gap Analysis

Stream 2: Processes and Business requirements

Stream 1: Data Sources and IT Infrastructure

• BI Landscape: Status Quo of analytical systems and of operative Data Sources

• Evaluation of existing BI KPI (Teradata Spidernet): Data Volume, concurrent queries, Data complexity, Data Models, Data Volume, flexibility, actuality and mixed workload

• Focus on Business Users and core processes: requirements and most important business questions

• Aggregated picture: IT Landscape , core processes, KPI and metrics

• External analysis: Trends in the market of courier eypress and parcel services and their influence on BI

• Competitor analysis: BI Strength and weaknesses, recognized best practises

• Big Picture of BI-Solutions (BI Wish List) with KPI

• Internal Analysis: Strategic directions of DHL Express for Express business and their effects on BI

• System evaluation based on Teradata „Spidernet“

• Development of DHL Express BI Landscape along the information evolution roadmap

• SWOT of most important BI Systems, identification of value • Business needs prioritization: what needs to be addressed


Gap Analysis

(Identification of Business and IT Gaps)

BI Scenarios

(Strategic alternatives to fill the gap)

Evaluation

(Benefit analysis of selected BI Scenarios)

BI Roadmap

(Business case and action plan)

• SWOT of most important BI Systems, identification of value drivers

• Identification and quantification of gaps along the Teradata „Spidernet“

• Business needs prioritization: what needs to be addressed asap

• Clustering of needs into short-, mid- and long-term needs

• Structured business BI needs

• Design of 3 scenarios to close the gaps. High-Level description of efforts and investment (tangible and intangible)

• Creation of an assessment schema /including business and it requirements

• Agree upon the assessment schema

• Evaluation of Scenarios with focus on BI and Technology

• Categorization of Scenarios (Focus: costs, migration efforts, benefit horizons, etc.)

• Identification of short-, mid- and long-term potentials of the scenarios

• Sorting of the scenarios based on cost views

• Evaluation and selection of the BI-scenarios

• Detailed BI Roadmap based on the existing IT-Landscape

• Action plan, next steps and resources• Business case and action plan

Resources Costs

(Users and business processes)

• Methodology

Cost Driver #2

Two Major Cost Drivers

Run Costs

(Redundancies and Inefficiencies)

• Methodology

As-Is

Cost Driver #1


• Processes and Potential Opportunities

• Business Users & Organization

• Operations

• Result

14

• BI-Landscape

• Target global platform costs

• Findings and actions

• Opportunities (Potentials) and outlook

Estimate of costs savings and business improvement potentials

Run Costs fragmentation

BI Run Costs by Scope BI Run Costs by Process


2009 BSC: TOTAL Run Costs: XX M€/Year� 2 main global sites (PRG, CBJ) charging 50% each� Many different technologies

As-is findings

�� Cost savings from immediate actions: Shut down, decommissioning, soft

migration and other actions.

�� Change of mindset required:

Cleaning up the garden vs. starting new projects

�� Warning: Any new BI development is now costly and can’t contribute alone to


�� Warning: Any new BI development is now costly and can’t contribute alone to

integration/consolidation/optimization.

�� CBJ: Still spring for best practices, but needs to be fully aligned and compliant

with Global BI strategy.

�� Finance:

INSIGHT adds Cost Transparency to Finance BI

�� Country DW/DM: Almost annual x.y Mio.€ run costs from BSC for local BI

applications and systems.

!

Cost Driver #1: actions

Focus on:

• Change Management

• Corporate Performance Management (CPM) pervasive approach

• Global BI Framework

BI Gov. &

Further Investigations Actions

Regional/ Local BI

LeanReporting


Corporate data model

Metadata layers

EDW

Gloabl vs. Local

CPM Tools

Planning & Budgeting

BI Portal

Industry metrics and analytics

BI Gov. & Strategy

Demand Management

BICC

Medium Term Plan

Aviation

/ Local BI landscape

Resources Costs

(Users and business processes)

• Methodology

Cost Driver #2

Two Major Cost Drivers

Run Costs

(Redundancies and Inefficiencies)

• Methodology

As-Is

Cost Driver #1


• Processes and Potential Opportunities

• Business Users & Organization

• Operations

• Result

18

• BI-Landscape

• Target global platform costs

• Findings and actions

• Opportunities (Potentials) and outlook

Estimate of costs savings and business improvement potentials

Resources Costs: savings opportunities

Current BI Processes

Future BI Processes

Process Potential

User Potential0,00

5,00

10,00


Result

1 2 3 4 5

Structure of BI-User

TO TA L

Sen io r M g r P ow e r U ser M ed ium L ig h t C on sum e r

O pe ra t ion s 100 2 00 0 0 4 .500

F in an ce 100 4 57 0 92 4 8

S ale s 100 80 6 00 2 .00 0 2 .900

M a rk e tin g 100 0 0 0 0

P r ic in g 100 4 57 0 92 4 8

TO TA L500 1 .194 6 00 3 .8 48 7 .4 16 13 .55 8

Senior

Manager

Power User Medium Light Consumer TOTAL

TOTAL Number of users per profile 500 users 1194 users 600 users 3848 users 7416 users

Average annual cost for 1 FTE 90.000 EUR 70.000 EUR 60.000 EUR 50.000 EUR 50.000 EUR

Cost per hour 45 EUR 35 EUR 30 EUR 25 EUR 25 EUR

Current SetupAverage weekly working hours for Processs 1-11 per User 5,50 h 36,00 h 15,70 h 10,13 h 3,50 h

Average annual working hours for Processs 1-11 per User 275 1.800 h 785 h 506 h 175 h

Total annual working hours for user profile 137.500 h 2.149.200 h 471.000 h 1.948.050 h 1.297.800 h 6.003.550 h

Total Cost 6.187.500 EUR 75.222.000 EUR 14.130.000 EUR 48.701.250 EUR 32.445.000 EUR 176.685.750 EUR

Future SetupAverage weekly working hours for Processs 1-11 per User 2,00 h 18,35 h 4,00 h 3,14 h 1,38 h

Average annual working hours for Processs 1-11 per User 100 918 h 200 h 157 h 69 h

Total annual working hours for user profile 50.000 h 1.095.495 h 120.000 h 603.655 h 509.850 h 2.379.000 h

Total Cost 2.250.000 EUR 38.342.325 EUR 3.600.000 EUR 15.091.375 EUR 12.746.250 EUR 72.029.950 EUR

Reduction -3.937.500 EUR -36.879.675 EUR -10.530.000 EUR -33.609.875 EUR -19.698.750 EUR-104.655.800 EUR

C u r r e n t S e t u p E s t i m a t e s

G o v e r n a n c e L e v e l

A n n u a l C o s t s B I

R u n / S u p p o r t A v e r a g e B u i l d /

M a i n t e n a n c e c o s t s

B u s i n e s s F T E

c o s t s

I n s i d e o f I T - S

S e r v i c e C e n t e r s

O u t s i d e I T S


C u r r e n t T o t a l B a s e d o n 2 0 0 9

B S C

D e c r e m e n t a l

s i n c e b e g i n n i n g

o f 2 0 0 9

I n c r e m e n t a l

s i n c e b e g i n n i n g

o f 2 0 0 9

G l o b a l 1 1 . 3 8 6 . 0 0 8 , 9 4 9 . 8 7 5 . 5 0 8 , 9 2 - 4 9 . 4 9 9 , 9 8 1 . 5 6 0 . 0 0 0 , 0 0 0 , 0 0 3 . 0 0 0 . 0 0 0 , 0 0

R e g i o n a l 4 . 4 0 1 . 8 1 5 , 7 3 9 . 4 9 9 . 8 5 3 , 6 2 - 5 . 5 9 8 . 0 3 7 , 8 9 5 0 0 . 0 0 0 , 0 0 5 0 0 . 0 0 0 , 0 0 7 0 0 . 0 0 0 , 0 0

C o u n t r y 6 5 4 . 9 1 3 , 9 1 4 5 4 . 9 1 3 , 9 1 0 , 0 0 2 0 0 . 0 0 0 , 0 0 1 . 0 0 0 . 0 0 0 , 0 0 2 . 0 0 0 . 0 0 0 , 0 0

T O T A L 1 6 . 4 4 2 . 7 3 8 , 5 9 1 9 . 8 3 0 . 2 7 6 , 4 6 - 5 . 6 4 7 . 5 3 7 , 8 7 2 . 2 6 0 . 0 0 0 , 0 0 1 . 5 0 0 . 0 0 0 , 0 0 5 . 7 0 0 . 0 0 0 , 0 0 1 7 6 . 6 8 5 . 7 5 0 , 0 0

F u t u r e S e t u p E s t i m a t e s

G o v e r n a n c e L e v e l

A n n u a l C o s t s B I

R u n / S u p p o r t A v e r a g e B u i l d /

M a i n t e n a n c e c o s t s

B u s i n e s s F T E

c o s t s

I n s i d e o f I T - S


O u t s i d e I T S


G l o b a l 2 5 . 0 0 0 . 0 0 0 , 0 0 0 , 0 0 5 . 0 0 0 . 0 0 0 , 0 0

R e g i o n a l

C o u n t r y

T O T A L 2 5 . 0 0 0 . 0 0 0 , 0 0 0 , 0 0 0 , 0 0 0 , 0 0 0 , 0 0 5 . 0 0 0 . 0 0 0 , 0 0 7 2 . 0 2 9 . 9 5 0 , 0 0

R e d u c t i o nT O T A L 8 . 5 5 7 . 2 6 1 , 4 1 - 1 . 5 0 0 . 0 0 0 , 0 0 - 7 0 0 . 0 0 0 , 0 0 - 1 0 4 . 6 5 5 . 8 0 0 , 0 0

1 7 6 . 6 8 5 . 7 5 0 , 0 0

7 2 . 0 2 9 . 9 5 0 , 0 0

Time Savings potentialCurrent

Average

Future

Average

Benefits

(difference)

1 Data Gathering 0,7

2 Data Linking 0,6 -1,4

3 Processing 0,7

4 Evaluate 0,7 0,4 -0,4

5 Analyze 1,2 0,8 -0,4

BI Setup

0,6

Weekly average [hours]


5 Analyze 1,2 0,8 -0,4

6 Formatting 0,8 0,2 -0,6

7 Review and Approve 1,4 1,0 -0,4

8 Re-Iterations 5,0 1,7 -3,3

9 Publish 0,7 0,1 -0,6

10 Communicate 1,6 0,6 -1,0

11 Accept 0,8 0,3 -0,5

12 Action Information

14,2 5,8 -8,4Total

La scelta metodologica: lean IT

Identificazione e rimozione di inefficienze e ridondanze con impatto su:

� customer service, customer facing activities

� costi di gestione e mantenimento del business

� produttività inidividuale

� costi di gestione piattaforma DWH/BI/Analytics

FOCUS


� Defects

� Overproduction

� Waiting

� Non-Value Added Processing

�Transportation

� Inventory Excess

� Motion (Excess)

� Employee Knowledge (Unused)

Business Case dimensions

BI Run Costs reduction

• Global: from xx M€/Y to y M€/Y

• Regional: assess and move to global platform

• Local: assess and eliminate redundancies

• Aviation: assess for integration synergies

BI User Processes optimization


BI User Processes optimization

• Huge impact on BI productivity

• Estimated value: xx M€/Y

Uncover Business Potentials

• EDW Best Practices generate Revenue Growth and Cost Savings

• Conservative Achievable Benefits: +xxM€/Y Revenue and -xxxM€/Y Costs

Business Case: Run Costs dimension

Global: total run costs xxM€/Y

• Items sunset in the last 12 months and recent actions: xx M€/Y

• BPD environment: xx M€/Y

• Oracle OPMS duplication: x M€/Y • FINANCE BI applications and INSIGHT: x M€/Y

• Other BI items (commercial, pricing, ops): x M€/Y

Regional: run costs are unknown

• EMEA, AP, NA, IA must converge into global BI vision


• EMEA, AP, NA, IA must converge into global BI vision

• TO DO: assessment and action plan

Local: run costs are unknown

• Local BI apps play relevant role and absorb resources

• TO DO: assessment and action plan

Aviation

• Ongoing integration of organization and processes

• BI must be assessed and integrated as well

Vision for EDW

Major topics to addressTo Be

Data(“Storage”)

Analytics and

Reporting

Process planning

Decisions and

Management

OPERATIONS

OPERATIONS „

Closed Loop“

ANALYTICS

„Closed Loop“

ANALYTICS

ANALYTICS

iDW Archi-tecture

Enterprise Data Model

Gover-nance

iDWSustain-ability

AgilityAnalyticalCapa-bilities

Data Quality, Security; Privacy

Master-data

Manage-ment

iDW Archi-tecture


Gover-nance

iDWSustain-ability

AgilityAnalyticalCapa-bilities

Data Quality, Security; Privacy

Master-data

Manage-ment

DataAnalytics

and Storage

Holistic Blueprint:8 Success Factors for Triple A (“Access – Analytics – Action”)

BI Appli-cation 1

iDW Platform

BI Framework


(“Storage”)

OperationalProcesses

Finance Logistics Customers ProdcutsFinance Logistics Customers Prodcuts

EDW Archi-tecture


Gover-nance

EDWSustain-ability

AgilityAnalytical Capa-bilities

Data Quality Security Privacy

Master-data

Manage-ment

BI Appli-cation 2

BI Appli-cation 3

Single Version of the Truth

Src

Src

BI Layer

Governance Framework: vista organizzativa

Entities

Business Intelligence

Competency Center

C-Level Sponsors

CPO & Steering Committee

� C-Level Sponsors: cross-functional support for EDW initiative from CxO is key

� Chief Performance Officer (CPO) & Steering Committee: provide ultimate authority and empowerment to unify metrics and information across the whole organization.

� Governance Council: representative of

Roles


IT

Business

Business Intelligence

Competency Center Committee

Governance Council

Data Stewards

� Governance Council: representative of the entire business organization to enable alignment and synch points when information are unified

� Data Stewards: span and work across all business application landscape and systems to ensure integrity of data objects and subject areas

� Business Intelligence Competency Center (BICC): provides foundation for strategic and tactical alignment of the EDW initiative

� IT: partners with business and ensures tools, systems and data are all available

Focus : BICC

� CPO can be appointed based on leadership skills and business knowledge skills.

� BICC members should have strong business background, and good links with BI fellows

� Business processes participation ensures

BICC FundamentalsStructure

Virtual BICC


� Business processes participation ensuresknowledge of business requirements

� All business functions should be able to support cross functional BI initiatives

� It provides deep, up-to-date business knowledge and focus

� Virtual: flexible organizational structure adjusting to BI needs across each function

� No need to hire dedicated SME (Subject Matter Expert) to be allocated in each function

Finance Ops Sales

BICC

CPO

Agnostic Approach to BI Framework

3x3 Guidelines matrix: 3 BI metrics, 3 BI perspectives (SDG adapt-case©):

Performance Monitoring

StrategicAlignement

IntegratedPlanning

Performance

Perspectives


Financial

Operational

Metr

ics

Key Factors KPIs BI/PM ProcessMajor Phases

BI / CPM Framework

End-to-end BI: from data to dashboard (SDG adapt-case©):

Corporate Scorecard and DashboardBIbyPerspective

By

Rep

ort

BIby


By

Mo

del

Financial Consolidation

Data Management, Mining and Warehouse

Analytics

“Operational”

Analytics

“Financial”

Analytics

“Performance”

Planning & Forecasting

Data MartsbyMetric

DWHbyLogical Data Model

ByProcess

byProcess

BI Technical Framework

Composite Framework – incremental best-of-breed adoption (SDG adapt-case©):

EssentialEnablers

Global Reporting / Planning Global reference “Metabase”

EnterpriseElastic

“Business users driven, business common language”

Top-Down Bottom-Up


ParallelDesign

EssentialComponents

“Enterprise and Active” Datawarehouse

“Scalable and Agile” Business Intelligence

“Multidimensional and for-planning” CPM

“Unique and Collaborative” Portal

EnterpriseDWH by Business Model

ElasticToolkits by Business Process “Think big, start small”

Short term Medium-Long term

From Data To Dashboard

“Reduce costs and getting more lean”

Recommendations

Evaluation of Results: DHL

Challenge As-Is To-beRecom-

mendationsNext Steps

� Start building an EDW in parallel to the existing BI application landscape

� An Enterprise Logical Data Model is a key asset as it represents the whole enterprise in a consistent way

�


� Name a EDW / BI Architect, install the virtual Governance structures within the business, and install a BICC and CPO

� Change from an application centric BI landscape to an integrated BI landscape

� Introduce agile methodologies, e.g., “Sandboxing”, SCRUM, XP

� An EDW, integrating major data sources in one data model, will allow for consolidating the current BI landscape

� Empower the data stewards to drive the „Data Quality Improvement Process“

� Focus on a subject area of the Enterprise LDM for master data

Business Case summary

Benefits without EDW Business Case: Benefits with EDW

EDW is required to reach the potential

Benefits

> x Mio. €

/year

Benefits

Annual Business potential

(new Business and Opportunities)

Master


potential

Savings through consolidation (Migration and centralization

through the EDW – BI processes)

Annual Run-Cost SavingPotential

> x Mio. €

/year

Annual Resource potential

(User and their processes)

Opportunities)

Annual Run-Cost Saving Potential

xMio. €/year

Master EDW

Road-map

TCO savings potential *)

Benefit Spectrum Benefit Spectrum

*) Consolidation will lower TCO

EDW Roadmap: starting point

� Many BI applications

� BI functional silos

� Data duplication

� Non-homogeneous tools

� Data flows (horizontally &


� Data flows (horizontally &

vertically) across multiple layers

� Any BI strategy almost

impossible to enforce

Cross-functional collaboration and decisions driven by common

BI strategy are key to success!

Function-driven approach

ST

AR

T 1

.0

PA

PA

YA

1.5

INS

IGH

T 1

.5

Business Functions

Driv

e

Driv

e

Driv

e

Driv

e

� Each business function drives its own

stack of BI applications

� Huge amount of data duplications

� Business Rules not aligned across


ST

AR

T 1

.0

GS

I 2.0

PA

PA

YA

1.5

INS

IGH

T 1

.5

Data

Overlap

Account 100%

Customer 75%

Geography 100%

Revenue 100%

Cost 50%

Shipment 75%

Service 100%

Revenue (daily) 25%

Time 100%

Human Resources 25%

General Ledger 25%

Claim and Complain 25%

Shipment Profile 25%

Contract 25%

� Business Rules not aligned across

functions:

� Customer hierarchies � Customer

Profitability reporting

� This lead to siloed, complex, static and

expensive BI landscape

� Such BI infrastructure and platform

causes inefficient back-office BI processes

and slows down business responsivness

Illustrative

New approach: BI functionality driven BIC

BI Roadmaps

by Functionality

Agreed Priorities:

• Business Requirements

Consolidation

• Global BI Roadmap

• Cost/Opportunity


Business

Data Areas

Business Data Areas as

Building Blocks…

Co

nc

ep

t

� Business Requirements are prioritized by BICC on a cross-functional base and drive DataAreas availability along iDW Roadmap

� Data Areas deliver cross-functional BI features and business metrics

� Both aspects are tightly interconnected and have to be managed together!

� BICC to enforce standard processes and tools:

� BI demand management

� BI dictionary

� BI implementation practices

� BI Governance

EDW Roadmap in context

C

New RoadmapPROPOSAL

to BICC


EDW milestones are placed when BI

infrastructure supports BI functionalities

Change of mindset is required

• Split applications into smaller building blocks; reduce buildcomplexity by focusing on cross-functional re-usage of data,functionality and metrics (Business BI Dictionary)

• BICC prioritizes each single building block by BI functionaligned with Business Data Areas roll-out along iDW Roadmap


C

C

Traditional:

by application

New:

by functionality

BICC as enabler for BI simplification

� The BICC is the x-functional body that governs and manages the transition from today’s scattered BI landscape to one that is integrated and centralized.

� Custodian of the future Single Source of Truth. It will increase the quality and availability of information. � No extra FTEs, but helping key BI Experts to work together efficiently. BICC will build bridges

across functions and combine Business, IT and Analytical skills.

Enable


Reduce Data

Footprint

Reduce Infrastructure

Cost

Enable Faster Revenue Generation

Avoid Data Replication

ManageIT Cost

RemoveRedundancies

AchieveBI Agility

Reduce DecisionsTime-to-Market

Reduce Overhead Cost

Business

RulesModelData

Bus iness RulesModelData

Business RuledModelData

BICC

� BICC takes on responsibility in

several steps. It will grow while

we continue to replace legacy

BI and free up resources which

we can then move as part of

BICC.

� It will reduce costs by streamlining BI processes

and reducing IT overhead

Take Aways … by Lean IT approach

Waste Element Issues Negative Outcomes solvedDefects • Unauthorized BI system and application

changes.

• Substandard project execution.

Poor customer service, increased

costs.

Overproduction

(Overprovisioning)

•Unnecessary delivery of low-value BI

applications and services.

Business and IT misalignment,

Increased costs and overheads


Waiting •Slow BI application response times.

•Manual service escalation procedures.

Lost revenue, poor customer service,

reduced productivity.

Non-Value Added

Processing

• BI metrics to business managers. Miscommunication.

Inventory (Excess) •Server sprawl, underutilized hardware.

•Multiple repositories to handle risks and control.

•Benched application development teams.

Increased costs: data center, energy;

lost productivity.

Employee Knowledge

(Unused)

•Failing to capture ideas/innovation.

•Knowledge and experience retention issues.

•Employees spend time on repetitive tasks.

Talent leakage, low job satisfaction,

increased support and maintenance

costs.

Source: 2008, Peter Waterhouse “Improving IT Economics: Thinking Lean”


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39

Approccio e Roadmap per la razionalizzazione dei sistemi analitici Corporate: il caso DHL Express

Technology

Transcript of Approccio e Roadmap per la razionalizzazione dei sistemi analitici Corporate: il caso DHL Express