VisionaryStrategic&TacticalProfitDecisions byBozidarKralj

Genuine Decision Strategy Boosters

ItisabouthowtosetupCompanyInformationSystemtogain It is about how to set up Company Information System to gain newprofitstreams.

CompetitiveIntelligenceiswithincompany.But,thereisno Competitive Intelligence is within company But there is no platformtoallowinternalfinetuningofprofitcontributions.

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Problemscanbegroupedon:structured,nonstructuredandpartiallystructured.Structured Problems can be grouped on: structured non structured and partially structured Structured problemsarerepeated,routineproblemsanddecisionsaresame(repeatedandroutine). Structuredproblemsarecommononlowest(operative)levelofmanagement.Partlystructured problemsarenotroutineandisnotknownhowtosolveproblemsandwhatarethesteps. bl t ti di tk h t l bl d h t th t Thislevelofproblemsolvingneedsexperienceandmanagementfeeling. Unstructuredproblemsarecomplexproblems.Forthoseproblemstherearenoobviousand routinesolutionsandmanagerandhisknowledgehasmajorroles.Problemsmostlyappear ti l ti d d hi k l d h j l P bl tl forthefirsttime.Unstructuredproblemsaresolvedwithunprogrammeddecisions:no knownprocedures,situationsarenew,eachcaseisindependentandneedsindividual approach. Structured,routineproblemssolveoperativemanagementlevelswhileunstructuredproblems solvehighest,strategiclevelsofmanagement.

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Topmanagementlevels
Nonstructured problems Unprogrammed decisions

Structured problems

Programmed decisions

Lowestmanagementlevels

Whatisproblemmorecomplex,higherlevelofmanagementwillsolveit. What is problem more complex, higher level of management will solve it. SameasproblemsolvingtypesisusageofbusinessintelligenceBItools.BItoolsextractdatafromproduction systemsforoperativework,fortacticaldecisionsandforstrategicdecisions.

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Portal

DWH

Production

Figure(left,above)showsprocessofhowdata isconvertedintoinformation,informationinto knowledgeandknowledgeintowisdom.Thisis g g howitshouldbe. Problemisthatbigcompaniesdonothaveonly onebusinessintelligencesolutionbutmore thanone.SoiftherearemoreBIsolutions, than one. So if there are more BI solutions, informationandknowledgegeneratinglooks likemanycones(left,below).Cones/pyramids provideknowledgetomanagementstructures, separately. separately. Complexsystemsinbigcompaniescannothave onlyoneBIsolution.Manysolutionsexistsince technicalboundariesdonotallowcreationof t h i lb d i d t ll ti f onesuperconewithdrilldowncapabilities throughcompanydata. EachDataMartcanbeconsideredasone informationisland,consolidatedandintegrated.

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So,howdoesreportfortopmanagementlooklike?Justimaginewhitepaperontopofcones.Top managementreportingjustgathersaggregated datafrommanyBusinessIntelligencetools,portals, dashboards,scorecardsandsimilar.Belowthe conesaredatamarts.

Papercopy,report, dashboard Lookfromthetopontheconesandwhite paper,datalooklikeonthefigurebelow.This dataare highlyaggregated fromdatamart s.Data highly aggregated from data mart's Data martsarestandalonelogicalbusiness models,importantistohighlightdatawithin datamartsshouldbehighlyintegratedand usuallyare. usually are Highlyintegratedpeaksofconesrepresent KeyPerformanceIndicators(KPIs).

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Solookingfromabovedataislands perspectivewouldlooklikespotsonplane. Planecanbehardcopyofcompanyofficial py p y reportorcorporatedashboard.

Financial statements

Products

Financial ratios

Let'sgivenamestospotsonplane.Each spotcancontainfromseveralKPI'supto severalhundredKPIs.

Customers

Customer Satisfaction

Andhowdoesmoredetailedreportlook like,reportwithmoreKPI'swouldlooklike this.Itisonlymorestuffedreport(fromthe pointofconeitissomethinglikethis) Itonlymeansmoredatafrom pyramid/cone.

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Lookingonceagainfromfrontviewondata,pyramiddeliversdataon requestedlevelofdetail.Informationquantitiyisequaltolessormoredata provided(sizeofcirclesfrompreviousfigures) provided (size of circles from previous figures) Aggregatedreport DetailedreportwithhundredsofKPIs

Alldependsonwantedthelevelofdetailsandraisingorloweringanalysisdetails(bluearrows).

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Nextstep, howcanstrategicdecisionmakersee connectionbetweenbalancesheetand customersatisfaction?Itispartof customer satisfaction? It is part of nonprogrammedknowledge. OrhowcanEVAfromfinancialratiosbe connectedwithresidentialcustomer connected with residential customer segmentation?Figure(left) showsdata connectionbetweenEVAandresidential customersegmentationtrends.

Is this easy toachieve?

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Executiveswanttoseeimpactofscheduledmarketingcampaignswithnewproductson p g p g p residentialmarket.Stepsarefollowing. 1. 2. 3. Taskisdelegatedtoreportingdepartmentandmarketingproductdevelopmentdepartmentstomake targetedbusinesscaseandtocreatecustomreport. targeted business case and to create custom report Reporting,controllingorproductdevelopmentwilltrytomakeitformcurrentBusinessIntelligence solutionsbutmostprobablywillnotmakeit.TheywilladdressITtopreparereport. ITwillanalyzeDWHandwillfoundoutthatallnecessarydataisinDWH,datafromCRM,Product managementandERPbutitisnotmapped.ITwillalsofoundoutdatacontainsmanytomany management and ERP but it is not mapped IT will also found out data contains many to many relations.Inotherwordsnoteasytomakeconnection. IfconnectionthroughseveralproductionsystemsisnotpossibleprojectandCAPEXisneeded. Otherprojects,processchanges,reorganizationorapplicationupdatesthatmightslowdownproject (havenotbeenconcernedhere) canhappenduringtheprojectimplementation.Agreementwhowill (have not been concerned here) can happen during the project implementation Agreement who will maintainmappingcodesisalsoachieved. Finally, afterseveralyearsprojectisfinished. Reportinggetsnewtool, andfinallycaneffectivelyreportaccordingtorequestedfunctionality.

4. 5.

6. 7.

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StrategicandTacticalmanagementdecisionsarebaseduponmanyadditionaldata,additions thatincludecrossreferentialdatafromdifferentbusinessintelligencesolutions. that include cross referential data from different business intelligence solutions Forexample,businesscasesneeddatafromdifferentdatamarts/businessintelligence.For betterunderstanding, businesscases(projects)arepresentedwithdifferentirregularshapes (blueandpurple),andbusinessintelligencereports ascircles(lookingconesfromabove). Business Case #1

Business Case #2

Regularstrategic andtacticaldecisionsdealwithhundredsofbusinesscases. Isthereanissuewithinformationandknowledgeflow?Definitely. Itisnoteasytoconnectdatafromseparateddataislands,datamarts.Thereisnodirectandobvious connectionhowcustomersegmentationchangesaffectEVAatthestart!ThereisNOFASTCONNECTIVITY! Aftersometime(usually23years)managementgetssolidreportingfunctionalityforonlyonetask.

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Aftergettingstaticknowledgeinformofstaticpresentationofcompanyperformance (conesandKPIsonplane)strategicdecisionmakerswanttoseedynamicknowledge. Ifdecisionismade,actionfollowed,resultsneedtobemeasurable.Decisionhastobe possibletobemeasuredthroughcompletecompany(notseparatedislands).Decision hastobepossibletomakeasmanytimesaswantedinmanyvariationsandinbundle withotheractions(notasisolatedactionlikeinlaboratory,becausecompanyisnot ih h i ( i l d i lik i l b b i livinginlaboratory) ThisisDYNAMICKNOWLEDGE. This is DYNAMIC KNOWLEDGE Doesplanningprocesssolvesthisproblem?No!Itisinrightdirectionbutitisveryrigid andslow.Planningisdoneseparatelyinindependentprocessesandunits.Knowledge and slow Planning is done separately in independent processes and units Knowledge staysthere.Decisionmakersreceiveonlybreadcrumbs.Andspeedisessential.Cannot waitoneyearfornextplanningroundandforecastsandfollowupseveryfewmonths. Dashboardsarealsostatic.Donotcreatedynamicknowledge. AnddecisionmakersdonotneedstaticpictureonTV,butmovie!

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Eachdecisionissimilartowaterdropon Each decision is similar to waterdrop on watersurface.Resultsarespreadingradial. Applywaterdropeffectsonmanagement reports(dashboards)andwillcausemany radialresults(figurebelow).Dynamic radial results (figure below) Dynamic knowledgeactslikefluid.

Ifactionsaremadeandthereare manyeffectsonsurfaceisit possibleto measureimpactof manydifferentdecisionsinpoint D?

 Management wantstoknowishoweffectivelytomeasure actions. If d i i Ifdecisionandfollowingactionhappensincompanyitis d f ll i ti h i it i similartoraindropandradialcirclesaroundwaterdrop. WavesareinfluencingotherKPI sindashboardorofficial Waves are influencing other KPIs in dashboard or official report. Influenceofonedecision/actionisnoteasytocalculateon / y otherKPIs Impactofmanydecisions,raindropswasimpossibleto measureuntilnow.

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Itispossibletomeasureallactionsifalldataislandpeaksareconnected withplatformthatprovidesintegrationonlevelofKPIs(reddashedlines). Solutionisoneplatformthatconnectionsbetweenpeaksandthat p providesforpeakstoactasone,likesimulatorforallactionsonintegrated p g level.ModelblueprintofsolutionisTotalControllingConcept.

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TotalControllingConceptisthefuturestandard. T t l C t lli C t i th f t t d d Thereisnoothermoreprofitorientedbusiness intelligenceandmanagementreporting blueprint.Nornownorinnearfuture. blueprint Nor now nor in near future Canyouaffordtobefollowerorgonebeproactive? C ff d t b f ll b ti ? Findintroduction of TCChere d d f h
http://www.businessintelligencesecrets.com/freedownload
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Ido! ItisTotalControllingConceptforPerfectManagementReporting! Because,Ilookonproblemtotallydifferentlythenothers. Differentlydoesnotmeannecessarilyitisgood,BUT

I'veseenit,adoptedinitial model,developedidea, workedonprototype. worked on prototype. Prototypeworked. ThatiswhyI'mtotally y y confidentTCCcrosses chasm.

Withblueprintyoulllearnhowtointegrateall relevantdataintoonemegareportingsimulating solution.Usetheknowledgetonegotiatebestfor youwithcurrentsolutionprovides. WithTCCimplementation you llbecapabletofind youll be capable to find hiddeninfluencesbetween KPI sandofficialreports= KPIs and official reports = EARNMOREPROFITFROM EXISTINGBUSINESS EXISTING BUSINESS
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Contact: Contact: bozidar.kralj2@gmail.com http://www.businessintelligencesecrets.com

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DecisionPerspectiveEnforcement