Business Information

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Business Information

Some of the latest thinking in

Business Information Analysis

Data Analytics Management Consulting,1999

This document or any part of this document may be freely quoted or distributed either

electronically or in hard copy format, provided the identity and contact details of the author (ie Jeff Popova-Clark) and this sentence are included and that none of the contents of the document are altered.

Further articles are freely available at the Data Analytics web site: www.dataanalytics.com

By

Jeff Popova-Clark BA, PGDipCogSci, MBA, AIMM Senior Partner

Data Analytics Management Consulting 3/4 Bushmead Street NERANG QLD 4211 Phone: +61 7 5527 2063 Mobile: +61 0412 553 952 Email: [email protected] www: www.dataanalytics.com

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Collect the Data Validate, Enter & Store Data Extract & Transfer Data Transform, Cleanse Data Analyse, Interpret Data Determine & Communicate Consequences Action Plan to Collect Data

Business Information Value Chain

• Develop Form Templates (e.g. Timesheet, Leave form)

• Design research methodology

• Design survey forms, interview plan • Review Internet or Academic Literature

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Business Information Value Chain

• Complete/Fill-out Forms

• Undertake experiment, survey, or interview • Extract data from literature review

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Business Information Value Chain

• ERP Data Entry

• Enter data into spreadsheet or Survey Support Application

• Generate data (e.g. during a pay run) • Audit data

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Business Information Value Chain

• Data Staging

• Integrate from multiple sources • RDBMS for static data

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Business Information Value Chain

• Datawarehouse • Datamarts

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Business Information Value Chain

• OLAP • Ad-hoc Query • Standard Reporting • Forecasting • Benchmarking • Data Mining • Statistical Analysis • ROI/NPV/EVA

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Business Information Value Chain

• Verbal Presentation • Graphical Presentation • Annual or Regular Report • Special or Project Report • Inter- or Intra-net

• Meeting Agenda Item • Business Case

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Business Information Value Chain

• Change Corporate Strategy • Change Business Behaviour • Change Policy

• Undertake Training

• Decide on a more detailed analysis • Media Release

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Business Information Value Chain

• Change Corporate Strategy • Change Business Behaviour • Change Policy • Undertake Training • Decide on a more detailed analysis • Media Release • Modify Budget Allocation • Develop Form Templates (e.g. Timesheet, Leave form) • Design research methodology • Design survey forms, interview plan • Review Internet or Academic Literature • ERP Data Entry • Enter data into spreadsheet or Survey Support Application • Generate data (e.g. during a pay run) • Audit data • RDBMS with Active Data • Complete Forms • Undertake experiment, survey, or interview • Extract data from literature review • Data Staging • Integrate from multiple sources • RDBMS for static data • Dataware-house • Datamarts • MDBMS • OLAP • Ad-hoc Query • Standard Reporting • Forecasting • Benchmarking • Data Mining • Statistical Analysis • ROI/NPV/ EVA • Verbal Presentation • Graphical Presentation • Annual or Regular Report • Special or Project Report • Inter- or Intra-net • Meeting Agenda Item • Business Case • Hallway Discussion

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Business Information Continuum

Standard Reporting Business Research Surveys, Large Scale Interviewing Ad-hoc Reporting OLAP

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Business Information Focus

Standard Reporting Business Research Surveys, Large Scale Interviewing Ad-hoc Reporting OLAP Speed, Convenience Focus Accuracy, Reliability Focus

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Business Information Investment

Standard Reporting Business Research Surveys, Large Scale Interviewing Ad-hoc Reporting OLAP Low Effort, Relatively Cheap Resource Intensive, Expensive

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Business Information Flexibility

Standard Reporting Business Research Surveys, Large Scale Interviewing Ad-hoc Reporting OLAP Completely standard,

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Business Information Drivers

Standard Reporting Business Research Surveys, Large Scale Interviewing Ad-hoc Reporting OLAP Opportunistic Deliberate

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Business Information Timeframes

Standard Reporting Business Research Surveys, Large Scale Interviewing Ad-hoc Reporting OLAP

Short time frame, Even instant

Long time frame, Even years

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Business Information Complexity

Standard Reporting Business Research Surveys, Large Scale Interviewing Ad-hoc Reporting OLAP Simple, Interpretation obvious Complex, Interpretation requires explanation of assumptions & definitions

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Business Information Verification

Standard Reporting Business Research Surveys, Large Scale Interviewing Ad-hoc Reporting OLAP Little independent verification Peer reviewed

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Effect of Technology

- Before

Standard Reporting Business Research

$

OLAP

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Effect of Technology

- After

Standard Reporting Business Research

$

OLAP

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Information Source Dimensions

Quantitative Qualitative

Internal External

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Business Analysis Audience

• Function’s clients

• Senior Executive group

• Government Statisitcal Entities

• Central Office or Department (e.g. audit)

• Other function’s staff

• Other corporate peers (e.g. Finance)

• Benchmark partners

• Media/students/interested external parties

• Your direct supervisor

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Monitor vs Investigate

• Monitoring

– Performance

– Service Level Agreements – Budgetary or Tax purposes

– Proactive (detect issues before they become an issue)

• Investigating

– Find opportunities to make a larger impact – Better allocate resources

– Test an hypothesis (do we really need Performance Pay?)

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Business Measures

• Dollars

• Products

• Sales

• Days, Years

• Customers

• Advertisements/

Promotions

• Contracts

• Patents

• Contacts

• Invoices

• Deliveries

• Assets

• Errors

• Returns

• Complaints

• Share of Wallet

• Market Share

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People-Related Business Measures

• Dollars

• Employees

• FTE

• Days, Years (absence,

accruals)

• Incidents

• Transactions

• Job Titles/Positions

• Locations

• Qualification Level

• Experience Level

• Competencies

• Injuries

• Participations/

Attendances

(workshops, doctor)

• Errors

• Grievances/Claims

• Vacancies

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Comparisons

External

Internal

Past

Gold

Standard

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Refinement Continuum

Raw Production Data One Page Summary Report Detailed Analysis Suite of Report Tables Datamart, Data Extract

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Trust of Analyst

Raw Production Data One Page Summary Report Detailed Analysis Suite of Report Tables Datamart, Data Extract Little Trust of Analyst Required Analyst Must be Fully Trusted

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Effort of Audience

High Levels of Effort And Analysis Expertise

Required

Little Effort or Analysis Expertise

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Risk of Bias

Low Level of Risk of Analyst Bias Effecting

Results

High Level of Risk of Analyst Bias Effecting

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Reporting Biases

• Overly positive

– Find any good news (irrelevant of cause) – Excuses

– Justifying previous investments – Understating risk

– Putting on a positive spin

– Recommend “steady as she goes”

• Overly negative

– Find any bad news

– Assign blame & overstate risk – Recommend “fixes”

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Breadth of Analysis

• Organisation-wide

– Absence, Turnover, OH&S Severity & Frequency – Revenue, Expenses, Profit

– Return on Shareholder Investment

• Function Wide

– Rec & Sel Efficiency

– T&D Expenditure/Investment – ROI of entire HR function

• Project/Intervention-Wide

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