BUSINESS INTELLIGENCE

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BUSINESS INTELLIGENCE NEXT WAVE REALTIME ACTION

• Major CS Kaushik
• ex Director(EDWP)
• Consultant(IT Banking Domain)- World Bank

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Todays Agenda

• Major trend challenges in BI
• CEO/CIO Priorities
• BI- Framework Information Democracy
• BI-Priorities for maturity Metrics
• Business Domains Subject Areas
• Business Value Creation - ROI
• Information Governance Framrwork
• Enterprise Information Architecture and
  Implementation
• Use past wave to ride next wave

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Building BI On Present technology

• Information Governance
• Data Governance Master Data Management, Data
  Quality, Data Definition, Data ownership,
  Requirements
• Metadata Governance
• Business Rules Governance
• Building Competency Centre Bridge Gap of
  Business IT (Alignment) Faster Delivery
• Manage Production, DR and Data Back up Resources
• Integrate and Innovate by using tools for text
  and image mining
• Adopt agile methodology grow
• Skill and Competence Building
• Bridge Knowledge Divide
• Use common resources of virtual storage and
  processing
• Building actions with reporting and rationalise
  reports (Information Overload)

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2010-13 CIO Priorities
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Business Priorities Business Process Improvement Reducing Enterprise Costs Increasing the Use of Information/Analytics Improving Enterprise Workforce Effectiveness Attracting and Retaining New Customers Managing Change Initiatives Creating New Products or Services (Innovation) Targeting Customers and Markets More Effectively Consolidating Business Operations Expanding Current Customer Relationships Technology Priorities Virtualization Cloud Computing Web 2.0/Web3.0 Networking, Voice and Data Communications Business Intelligence Mobile Technologies Data/Document Management and Storage Service-Oriented Applications and Architecture Security Technologies IT Management
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Shifting from Operational to decisional to
operational Stake Holders
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Information Systems Today
DependentEnd-users and Decision Makers
Multiple Customised Data Marts
Multiple/Custom Data Sourcing
Large Analyst Staff
Disparate Reports
DataSources
Core Banking Solution, IT-FO
BRANCHES, RBO LHOs,BO, AC
Trade Finance
ATMs
RISK, CIS, ALM, CMP
INB
SBUs
PSG, M-banking CMP
Treasury

Operational Systems
Analytical Repositories
End users have poor ability to access
information, low confidence in the integrity of
the information and often cannot get the
information needed from this environment.
The ability to make superior
decisions is compromised.
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Information Democracy Empowering Decision Making
Large number of empoweredEnd-users and Decision
Makers
Organized Reports
DataSources
Few Analysts
Data Warehouse
ETL
Retail Banking
Corporate Commercial
Trading
Finance
Product Data
Market Data
Operational Systems
Analytical Repositories
End users have high ability to access
information, confidence in the integrity of the
information and often use the information in ways
they have not imagined earlier!! Ability to make
superior decisions !!
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Evolve Faster
ACTIVATING MAKE it happen!

• Query complexity grows
• Workload mixture grows
• Data volume grows
• Schema complexity grows
• Depth of history grows
• Number of users grows
• Expectations grow

OPERATIONALIZING WHAT IS happening?
PREDICTING WHAT WILL happen?
Event-Based Triggering Takes Hold
ANALYZING WHY did it happen?
Workload Complexity
Business Models- KPIs, Dashboards
REPORTING WHAT happened?
Batch Ad Hoc Analytics
Analytical Modeling Grows
Increase in Ad Hoc Analysis
Continuous Update/Short Queries Event-Based
Triggering
Primarily Batch Some Ad Hoc Reports
Data Sophistication
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Readiness and Maturity (KDD)

• Where are we with the current DW (DMs)?
• Examine effectiveness of data usage, not develop
  report cards

Data
Knowledge
BI
HI
Information
Action
CI
Key BI Business Intelligence CI
Collaborative Intelligence HI Human
Intelligence
Connecting People, Processes, information
Technology
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Key Technology Trends Next Wave Maturity
Value Creation
Long overlooked as a critical factor in BI
Success. Organizations are making the connection
and are now placing a strong focus
Intersection of CRM processes and BI. This aims
to integrate disparate sets of data and analysis
into a single solution. CDI, Analytical
capability becomes a key differentiator
Data Quality
CRM Customer Intelligence
Adoption
Key Performance Indicators displayed on a single
screen with an ability to drill down at the
details
Dashboards Scorecards
Creation of virtual databases via real-time
access and integration of operational source data

Virtual Data Federation/ EII
Performance Management
Includes all Methodologies, Metrics, Process
required to manage performance
Involves complex statistical modeling for
predictive analysis, data mining, applied
analytics. Requires significant skills and
competencies in data access and analysis.
Advanced analytics experience renewed interest

Advanced Analytics

Cross Enterprise Analytics
A notion of approaching analytics as a
cross-disciplinary topic that transcends
subject-areas and applications


SOA Enabled BI
Data Warehouse Appliances
Web Services based architectures Callable BI
Components, Networked BI applications aware of
each-other
Hardware and DBMS integrated and packaged to
provide support for BI applications
BI Technology available as part of the open
source application development. It is an emerging
area.

Open Source DBMS
0 2 Yrs
2 5 Yrs
5 - 10 Yrs
Time to Maturity (Plateau of Productivity per
Gartners Hype Cycle)
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P R E D I C T I V E A N A L Y T I C SROI Good
News/Bad News
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Information Democracy Model
Sales Force Automation
Marketing Automation
Sales Planning
Configuration
Collaborative Design
Revenue Management
Channel Management
Real-Time Personalization
Relationship Marketing
Guided Selling
Order Management
Marketing Planning
Web / Telephony Self-Service
Web Communication (Chat, Web, E-Mail, VoIP)
Interaction Management Services
Customer Contact Center
Field Service
Workforce Management
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BUILDING INTELLIGENCE
Connecting People, Processes, information
Technology
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CRM, Corporate MemoryKnowledge Discovery in
Databases (KDD)
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Collaborate (incentives)
Augment (tool)
The choice to change work practices requires
answering four key questions - Should we?
(Business Value) - Can we? (Technology) - May we?
(Governance) - Will we? (Work Priorities)
Z
1
2
Tool System
Human System
Automate (self-service)
Delegate (outsource)
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3
Demand Relationship Preference Business
Value Strategy Risk Process Automate
Augment Organisation People Culture
Revenue Growth Cost
Reduction
Transformation
Technology
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Innovation
Productivity
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• Credit Risk - Standardized Approach
• Credit Risk - Internal Ratings Based (IRB)
• Probability of Default (PD)
• Loss Given Default (LGD)
• Exposure At Default (EAD)
• Effective Maturity (M)
• Expected Loss (EL) And Provisions
• Securitization Framework
• Operational Risk

Internal Reporting
Basel II Reporting (Credit, Op Risk, Interest)
Regulatory Reporting
Market Disclosures
Historic Data store
Rating, PD, LGD, CCF Models
Reporting
Metadata
Warehouse Administration
Integrated Business Intelligence IFRS, US
GAAP,Basel II/III Architecture
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BST

• Customer Complaints
• Delinquency Analysis
• Customer Loyalty
• Market Analysis

• Campaign Analysis
• Cross Sell Analysis
• Customer Attrition Analysis
• Customer Behavior
• Lead Analysis

• Customer Interaction Analysis
• Customer Investment Profile
• Individual Customer Profile
• Wallet Share Analysis

Relationship Marketing

• Product Profitability
• Product Analysis
• Organization Unit Profitability
• Performance Measurement
• Business Procedure Performance

• Profitability Analysis
• Channel Profitability
• Customer Lifetime Value
• Customer Profitability
• Location Profitability

• Transaction Analysis
• Activity Based Costing Analysis
• Insurance Product Analysis
• Investment Arrangement Analysis

Profitability

• Interest Rate Risk Analysis
• Customer Credit Risk Profile
• Credit Risk Assessment
• Credit Risk Mitigation Assessment
• Securitization Analysis
• Operational Risk Assessment

• Authority Profiling
• Credit Risk Analysis
• Debt Restructuring
• Involved Party Exposure
• Location Exposure
• Non Performing Loan
• Operational Risk Loss Analysis

• Outstandings Analysis
• Portfolio Credit Exposure
• Security Analysis
• Liquidity Risk
• Collections Analysis
• Insurance Risk Profile

Risk

• Capital Allocation Analysis
• Capital Procurement
• Credit Loss Allowance
• Funds Maturity Analysis

• Net Interest Margin Variance
• Structured Finance Analysis
• Equity Position Exposure
• Income Analysis

• Interest Rate Sensitivity
• Liquidity Analysis
• Short Term Funding Management
• Financial Management Accounting

Asset Liability Management

• Central Bank Reporting
• Financial Capital Adequacy Analysis
• Structure Of Regulatory Capital
• Foreign Financial Account Analysis
• Suspicious Activity Analysis
• Transaction Activity Analysis
• SOA Balance Sheet Analysis
• SOA Cash Flow Analysis
• SOA Statement Of Change In Shareholders' Equity
  Analysis
• SOA Statement Of Income Analysis

• Balance Sheet Portfolio Basis Approach Analysis
• Balance Sheet Classified Approach Analysis
• Balance Sheet Order Of Liquidity Approach
  Analysis
• Balance Sheet Net Assets Approach Analysis
• Cash Flow Direct Analysis
• Cash Flow Indirect Analysis
• SOA Analysis

• Cash Flow Direct Financial Institution Analysis
• Cash Flow Indirect Financial Institution Analysis
• Income Statement By Function Analysis
• Income Statement By Nature Analysis
• Income Statement Financial Institution Approach
  Analysis
• Statement Of Changes In Equity Analysis

Compliance
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Realise Information Democracy

• We need more efficient internal systems
• Design, implement, and manage internal systems
  that support effective decisions
• Our Challenges include
• Taxonomy, Metadata, Data Dictionary, Business
  Rules, Data Quality, Data completeness
• Leveraging existing assets while maximizing
  investment in new systems by IT governance
• With major focus on integration and controls
• Reducing non-value-added processes related to
  internal systems while promoting interoperability
  and reusability by integration of transactions
  and information architecture
• Stretching budgets while facing increased
  requirements related to financial and tax
  reporting
• Getting disparate systems to communicate by
  architecture

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Modern operational BI platform requirements

• The architecture must be designed to
• Integrate into business processes and
  organizations, creating interactions between
  Business Intelligence and Transactional processes
• Produce a consolidated picture of the business
  (master data, ODS, physical/virtual data marts,
  pre-built cubes, dashboards), integrating the
  archive of detailed historical data
• Shorten latency between transactional and
  analytical worlds

BI together with Transactional processes run the
business
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We Need to Move Look for Resilience Not
Sustainability
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Leveraging the Value of EDW
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REAL-TIME ENTERPRISE
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Metrics for Readiness and Maturity Level
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Business Imperative Business Readiness

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Executive Sponsorship People Readiness

SOME QUESTIONS FOR BEING READY TO CHANGE
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Business Imperative People Readiness

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Business Imperative IT Readiness
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Executive Sponsorship IT Readiness

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Executive Sponsorship Business Readiness

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XBRL

• XBRL Goal
• XBRL for active information management (AIM)
• Information Re-Engineering through Global Ledger
  Financial Reporting
• Realising new world of standards SOA
• XBRL Continuous Audit Framework
• XBRL Taxonomy Metadata SBI Context
• XBRL Application Advantage Impact
• XBRL Evaluation Criteria ROI Green IT

FDIC/25
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BI Framework
Business Drivers, Priorities Metrics
Enterprise Information Architecture
Guiding Principles, Models, Policies, Standards
and Procedures, Projects and Business Actions
DNA-Deoxyribonucleic Acid
Data Definitions, Business Rules, Sources and
Usage
Master Data
Business Data
Methodology
Organizational Accountability,
Information Management
Databases
and
Documents
Compliance
Transactional
Decisional
Operational
Data
Data
Data
Information Value Chain
Information Security / Privacy
Information Security / Privacy
Access, Classification, Auditing, Protection
Access, Classification, Auditing, Protection
Technology Infrastructure
Technology Infrastructure
EAI, HW/SW, ETL, Metadata Repository, Web, etc.
EAI, HW/SW, ETL, Metadata Repository, Web, etc.
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Phased Subject Areas
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A
Thanks