How to Implement BI in an Asset Finance ... - The Alta Group

How to Implement BI in an Asset Finance ... - The Alta Group

How to Implement BI in an Asset Finance ... - The Alta Group


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<strong>How</strong> <strong>to</strong> implement <strong>BI</strong> <strong>in</strong> <strong>an</strong><br />

asset f<strong>in</strong><strong>an</strong>ce org<strong>an</strong>izaion<br />

by Richard Ry<strong>an</strong>, Partner, Invigors EMEA <strong>an</strong>d<br />

Simon Webb, Senior Bus<strong>in</strong>ess Analyst, NetSol Technologies<br />




Acknowledgements<br />

<strong>The</strong> publisher would like <strong>to</strong> th<strong>an</strong>k the follow<strong>in</strong>g for their assist<strong>an</strong>ce <strong>in</strong> the preparaion of this document<br />

Mr Graham Tarr<strong>an</strong>t, Product Direc<strong>to</strong>r, NetSol Technologies Europe Ltd<br />

Mr Tony L<strong>an</strong>gford, Head of Sales, NetSol Technologies Europe Ltd<br />

REGISTER NOW TO RECEIVE FREE <strong>BI</strong> WHITE PAPERS on www.assef<strong>in</strong><strong>an</strong>ce<strong>BI</strong>.com<br />

Edi<strong>to</strong>r: Mr Richard Ry<strong>an</strong>, Partner, Invigors EMEA<br />

Published by <strong>Asset</strong> F<strong>in</strong><strong>an</strong>ce Internaional Ltd<br />

Antrobus House<br />

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Email: <strong>in</strong>fo@<strong>in</strong>vigors.com<br />

© Invigors EMEA, 2012, All rights Reserved<br />

No part of this publication may be reproduced or used <strong>in</strong> <strong>an</strong>y form or by <strong>an</strong>y me<strong>an</strong>s - graphic;<br />

electronic; or mech<strong>an</strong>ical, <strong>in</strong>clud<strong>in</strong>g pho<strong>to</strong>copy<strong>in</strong>g, record<strong>in</strong>g, tap<strong>in</strong>g or <strong>in</strong>formation s<strong>to</strong>rage <strong>an</strong>d<br />

retrieval systems - without the written permission from the publishers.<br />

2<br />

March 1, 2012<br />

© Invigors EMEA, All rights reserved

Execuive summary<br />

<strong>The</strong> first white paper <strong>in</strong> this series <strong>in</strong>troduced<br />

the concept of Bus<strong>in</strong>ess Intelligence (<strong>BI</strong>) for<br />

the leas<strong>in</strong>g <strong>in</strong>dustry. It described how<br />

org<strong>an</strong>izaions could benefit from releas<strong>in</strong>g<br />

knowledge <strong>in</strong> a hidden comp<strong>an</strong>y asset –<br />

<strong>in</strong>formaion. <strong>The</strong> paper also idenified some of the<br />

key quesions that <strong>BI</strong> c<strong>an</strong> <strong>an</strong>swer <strong>an</strong>d discussed the<br />

issues surround<strong>in</strong>g the implementaion of <strong>BI</strong> <strong>in</strong> a<br />

leas<strong>in</strong>g org<strong>an</strong>izaion.<br />

This white paper exam<strong>in</strong>es the process by which<br />

<strong>BI</strong> is implemented by org<strong>an</strong>izaions. It def<strong>in</strong>es the<br />

process of <strong>BI</strong> as consis<strong>in</strong>g of four stages:<br />

●<br />

●<br />

●<br />

●<br />

extracion;<br />

tr<strong>an</strong>sformaion;<br />

<strong>an</strong>alysis; <strong>an</strong>d<br />

distribuion.<br />

<strong>The</strong> white paper develops a previously <strong>in</strong>troduced<br />

theme show<strong>in</strong>g how <strong>BI</strong> goes beyond tradiional<br />

m<strong>an</strong>agement <strong>in</strong>formaion repor<strong>in</strong>g <strong>to</strong> deliver real<br />

<strong>in</strong>sight from the volumes of data held by the<br />

org<strong>an</strong>izaion. It also describes how <strong>BI</strong> differs from<br />

M<strong>an</strong>agement Informaion (MI) <strong>in</strong> numerous ways.<br />

One key differenia<strong>to</strong>r is that <strong>BI</strong> c<strong>an</strong> comb<strong>in</strong>e data<br />

from several sources or muliple perspecives <strong>to</strong><br />

provide a “s<strong>in</strong>gle version of the truth”. This allows a<br />

holisic view of the bus<strong>in</strong>ess <strong>an</strong>d “jo<strong>in</strong>ed up” <strong>an</strong>alysis<br />

<strong>to</strong> support the strategic m<strong>an</strong>agement process.<br />

<strong>The</strong> white paper <strong>in</strong>cludes case studies where <strong>BI</strong><br />

has been implemented with<strong>in</strong> different types of<br />

org<strong>an</strong>izaions. <strong>The</strong>y describe how <strong>BI</strong> has been used<br />

<strong>to</strong> <strong>in</strong>crease operaional efficiencies <strong>an</strong>d enterprise<br />

effeciveness, <strong>an</strong>d discover new paths <strong>to</strong> crea<strong>in</strong>g<br />

value.<br />

March 1, 2012 © Invigors EMEA, All rights reserved 3

PART ONE: <strong>Implement</strong><strong>in</strong>g Bus<strong>in</strong>ess Intelligence (<strong>BI</strong>)<br />

What is the <strong>BI</strong> process?<br />

<strong>The</strong>re are two elements <strong>to</strong> implemen<strong>in</strong>g <strong>BI</strong>:<br />

def<strong>in</strong><strong>in</strong>g the bus<strong>in</strong>ess requirement <strong>an</strong>d<br />

implemen<strong>in</strong>g the technical soluion. Def<strong>in</strong><strong>in</strong>g<br />

the requirement c<strong>an</strong> r<strong>an</strong>ge from describ<strong>in</strong>g <strong>an</strong> ad<br />

hoc bus<strong>in</strong>ess issue that the org<strong>an</strong>izaion needs <strong>to</strong><br />

address <strong>to</strong> determ<strong>in</strong><strong>in</strong>g the <strong>in</strong>ternal <strong>an</strong>d external<br />

KPIs (key perform<strong>an</strong>ce <strong>in</strong>dica<strong>to</strong>rs) on which the<br />

bus<strong>in</strong>ess is measured. <strong>The</strong> more complex<br />

requirements def<strong>in</strong>iions dem<strong>an</strong>d a consultaive<br />

approach with execuive sponsorship <strong>an</strong>d the<br />

<strong>in</strong>volvement of relev<strong>an</strong>t stakeholders <strong>to</strong> ensure that<br />

the technical implementaion is fully aligned with<br />

the needs of the bus<strong>in</strong>ess.<br />

Once the <strong>BI</strong> bus<strong>in</strong>ess requirement has been<br />

tr<strong>an</strong>slated <strong>in</strong><strong>to</strong> a technical specificaion then the <strong>BI</strong><br />

implementaion process c<strong>an</strong> be commenced. This<br />

c<strong>an</strong> be viewed as hav<strong>in</strong>g four stages:<br />

• Extract required data from different<br />

applicaions which generate <strong>an</strong>d s<strong>to</strong>re that data -<br />

e.g. lease m<strong>an</strong>agement systems, CRM (cus<strong>to</strong>mer<br />

relaionship m<strong>an</strong>agement) database, <strong>an</strong>d parent<br />

comp<strong>an</strong>y ERP (enterprise resource pl<strong>an</strong>n<strong>in</strong>g) system.<br />

Data c<strong>an</strong> also be imported from third party data<br />

providers (e.g. credit reference agencies). M<strong>an</strong>ually<br />

prepared data c<strong>an</strong> also be loaded via desk<strong>to</strong>p<br />

applicaions such as Microsot Access <strong>an</strong>d Excel (e.g.<br />

budget figures);<br />

• Tr<strong>an</strong>sform<strong>in</strong>g the extracted data so that it is<br />

consistent <strong>in</strong> terms of its content <strong>an</strong>d data def<strong>in</strong>iion<br />

<strong>an</strong>d c<strong>an</strong> be compared. For example the same<br />

cus<strong>to</strong>mer may be held <strong>in</strong> two or more different<br />

systems. In case study 1, the lessor had cus<strong>to</strong>mer<br />

<strong>an</strong>d asset data spread across over 50 different<br />

systems. <strong>The</strong>ir <strong>BI</strong> system now offers them a<br />

consistent, <strong>in</strong>tegrated view of their cus<strong>to</strong>mer base<br />

<strong>an</strong>d assets on hire;<br />

• Analys<strong>in</strong>g raw data <strong>in</strong><strong>to</strong> useful <strong>in</strong>telligence<br />

or <strong>in</strong>formaion. This process takes the mass of raw<br />

data <strong>an</strong>d converts it <strong>in</strong><strong>to</strong> useful <strong>in</strong>formaion which<br />

c<strong>an</strong> be used <strong>to</strong> drive the bus<strong>in</strong>ess such as crea<strong>in</strong>g a<br />

KPI dashboard or <strong>an</strong>alys<strong>in</strong>g vari<strong>an</strong>ces;<br />

• Distribu<strong>in</strong>g <strong>in</strong>formaion <strong>to</strong> <strong>BI</strong> users or<br />

consumers. Distribuion c<strong>an</strong> take the form of<br />

allow<strong>in</strong>g <strong>BI</strong> users <strong>to</strong> access predef<strong>in</strong>ed reports (on<br />

dem<strong>an</strong>d <strong>BI</strong>). <strong>The</strong>se reports c<strong>an</strong> be available on<br />

<strong>in</strong>tr<strong>an</strong>ets or via external websites. <strong>BI</strong> soluions c<strong>an</strong><br />

also send or push reports <strong>to</strong> <strong>BI</strong> users at pre-def<strong>in</strong>ed<br />

<strong>in</strong>tervals by email. Adv<strong>an</strong>ced users c<strong>an</strong> use <strong>to</strong>ols <strong>to</strong><br />

create their own reports. <strong>The</strong>se reports c<strong>an</strong> be<br />

accessed us<strong>in</strong>g computers, tablets <strong>an</strong>d smartphones.<br />

4 March 1, 2012 © Invigors EMEA, All rights reserved

Case study 1 - establish<strong>in</strong>g a s<strong>in</strong>gle source of truth from<br />

muliple, disparate systems<br />

What do you do if you have <strong>to</strong> compile a<br />

“s<strong>in</strong>gle source of the truth for enterprise<br />

<strong>an</strong>d cus<strong>to</strong>mer repor<strong>in</strong>g” where your data<br />

resides on some 50+ disparate systems? One US lessor<br />

with acquired porfolios <strong>to</strong>tall<strong>in</strong>g more th<strong>an</strong> 1.3<br />

million vehicles had this dilemma. Its staff spent <strong>to</strong>o<br />

much ime collec<strong>in</strong>g, reconcil<strong>in</strong>g, <strong>an</strong>d <strong>an</strong>alys<strong>in</strong>g sales<br />

<strong>an</strong>d marke<strong>in</strong>g data <strong>to</strong> provide “up-<strong>to</strong>-date”<br />

<strong>in</strong>formaion <strong>to</strong> its cus<strong>to</strong>mers.<br />

To solve this problem the lessor worked with a <strong>BI</strong><br />

system provider <strong>to</strong> create a soluion which:<br />

● Extracted data from the different sources,<br />

elim<strong>in</strong>a<strong>in</strong>g m<strong>an</strong>ual data gather<strong>in</strong>g;<br />

● Tr<strong>an</strong>sformed the raw data from different<br />

sources <strong>to</strong> provide <strong>an</strong> <strong>in</strong>tegrated <strong>an</strong>d consistent<br />

view of its cus<strong>to</strong>mers <strong>an</strong>d assets on hire;<br />

● Analysed the data <strong>to</strong> support repor<strong>in</strong>g for a<br />

variety of stakeholders (staff, m<strong>an</strong>agement,<br />

cus<strong>to</strong>mers); <strong>an</strong>d<br />

● Distributed <strong>in</strong>formaion <strong>to</strong> the different<br />

stakeholders (e.g. web access <strong>to</strong> a suite of reports).<br />

<strong>The</strong> case for au<strong>to</strong>maion<br />

Repor<strong>in</strong>g <strong>an</strong>d <strong>an</strong>alysis of operaional <strong>an</strong>d<br />

f<strong>in</strong><strong>an</strong>cial data has tradiionally been a m<strong>an</strong>ual<br />

process. Even now a signific<strong>an</strong>t number of<br />

professionals such as m<strong>an</strong>agement account<strong>an</strong>ts<br />

collate <strong>in</strong>formaion from pr<strong>in</strong>ted reports or file<br />

exports from different systems. <strong>The</strong>y then tr<strong>an</strong>sform<br />

that data us<strong>in</strong>g Excel or similar <strong>to</strong>ols <strong>in</strong><strong>to</strong> presentable<br />

documents (e.g. repor<strong>in</strong>g packs). <strong>The</strong>se reports are<br />

distributed <strong>to</strong> their different recipients either by<br />

email or <strong>in</strong> pr<strong>in</strong>ted form. This m<strong>an</strong>ually <strong>in</strong>tensive<br />

ime consum<strong>in</strong>g process has issues of data accuracy<br />

where rekey<strong>in</strong>g is <strong>in</strong>volved <strong>an</strong>d compaibility when<br />

compar<strong>in</strong>g different sources.<br />

<strong>BI</strong> soluions au<strong>to</strong>mate this process from the<br />

extracion of the source data from operaional<br />

systems <strong>to</strong> the delivery of repor<strong>in</strong>g <strong>an</strong>d <strong>an</strong>alysis.<br />

This has a number of benefits:<br />

● Less m<strong>an</strong>ual effort is required, as the IT<br />

systems will be colla<strong>in</strong>g <strong>an</strong>d prepar<strong>in</strong>g the<br />

reports. This has <strong>an</strong> immediate producivity<br />

benefit as ime is no longer spent on low value<br />

data sourc<strong>in</strong>g <strong>an</strong>d m<strong>an</strong>ipulaion aciviies;<br />

● Reduced imes: A <strong>BI</strong> system c<strong>an</strong> publish,<br />

e.g. the regular month-end reports, as soon as the<br />

underly<strong>in</strong>g data is available. Where deadl<strong>in</strong>es are<br />

<strong>The</strong> <strong>BI</strong> soluion generated a number of benefits<br />

throughout the org<strong>an</strong>izaion.<br />

● First, it elim<strong>in</strong>ated m<strong>an</strong>ual data gather<strong>in</strong>g <strong>an</strong>d<br />

reprocess<strong>in</strong>g for repor<strong>in</strong>g purposes.<br />

● Second, the system improved the quality,<br />

qu<strong>an</strong>ity <strong>an</strong>d imel<strong>in</strong>ess of dissem<strong>in</strong>a<strong>in</strong>g<br />

<strong>in</strong>formaion. Staff had onl<strong>in</strong>e access <strong>to</strong> me<strong>an</strong><strong>in</strong>gful<br />

<strong>an</strong>d trustworthy cus<strong>to</strong>mer <strong>in</strong>formaion. This me<strong>an</strong>t<br />

sales staff spent less ime on low value aciviies<br />

(colla<strong>in</strong>g <strong>in</strong>formaion, try<strong>in</strong>g <strong>to</strong> establish who were<br />

major cus<strong>to</strong>mers) <strong>an</strong>d more ime on high value<br />

aciviies (cross-sell<strong>in</strong>g <strong>an</strong>d upsell<strong>in</strong>g cus<strong>to</strong>mers).<br />

● Third, the <strong>BI</strong> soluion supplied query <strong>to</strong>ols<br />

which allowed m<strong>an</strong>agers <strong>to</strong> query sales <strong>an</strong>d<br />

marke<strong>in</strong>g data. This enabled the lessor <strong>to</strong> keep its<br />

marke<strong>in</strong>g, sales <strong>an</strong>d cus<strong>to</strong>mer relaionship<br />

m<strong>an</strong>agement processes aligned <strong>to</strong> the market place.<br />

<strong>The</strong> <strong>BI</strong> soluion provided the lessor with the me<strong>an</strong>s <strong>to</strong><br />

develop a signific<strong>an</strong>t sales-led adv<strong>an</strong>tage <strong>in</strong> a<br />

compeiive marketplace.<br />

ight, such as prior <strong>to</strong> board mee<strong>in</strong>gs, <strong>an</strong><br />

accelerated delivery imescale allows more ime<br />

for discuss<strong>in</strong>g the implicaions of the data th<strong>an</strong><br />

simply review<strong>in</strong>g the data itself. Real ime<br />

repor<strong>in</strong>g me<strong>an</strong>s that key decisions do not have <strong>to</strong><br />

be deferred unil the availability of <strong>in</strong>formaion;<br />

● Repeatable processes, ensur<strong>in</strong>g consistency<br />

<strong>in</strong> the reports. For example different people may<br />

have different op<strong>in</strong>ions on what is classified as<br />

“technical arrears”. A <strong>BI</strong> system c<strong>an</strong> impose a<br />

consistent def<strong>in</strong>iion throughout the enterprise.<br />

This supports comparability between different<br />

bus<strong>in</strong>ess units <strong>an</strong>d over ime. Repeatable,<br />

au<strong>to</strong>mated processes also promote accuracy s<strong>in</strong>ce<br />

there is no rekey<strong>in</strong>g of data <strong>an</strong>d data is<br />

m<strong>an</strong>ipulated <strong>in</strong> a consistent m<strong>an</strong>ner ensur<strong>in</strong>g that<br />

valid comparisons c<strong>an</strong> be made over a period of<br />

ime; <strong>an</strong>d<br />

● Superior distribuion mech<strong>an</strong>isms. Modern<br />

<strong>BI</strong> systems provide a suite of reports for <strong>BI</strong> users<br />

(i.e. self-service). <strong>BI</strong> systems also support<br />

au<strong>to</strong>mated distribuion of reports (push<strong>in</strong>g reports<br />

<strong>to</strong> users). Where users wish <strong>to</strong> undertake further<br />

<strong>in</strong>vesigaive <strong>an</strong>alysis, <strong>BI</strong> systems provide a set of<br />

<strong>to</strong>ols <strong>to</strong> support ad-hoc query <strong>an</strong>d repor<strong>in</strong>g.<br />

5<br />

March 1, 2012<br />

© Invigors EMEA, All rights reserved<br />


Bus<strong>in</strong>ess Intelligence is NOT <strong>an</strong> IT Soluion!<br />

Some <strong>BI</strong> implementaions, like CRM systems, fail<br />

<strong>an</strong>d the reason for failure is usually the focus<br />

on implemen<strong>in</strong>g a technology soluion without<br />

adequately address<strong>in</strong>g the bus<strong>in</strong>ess context.<br />

Successful <strong>BI</strong> projects have <strong>to</strong> underst<strong>an</strong>d the<br />

different needs of its cus<strong>to</strong>mer base. Kev<strong>in</strong> Qu<strong>in</strong>n of<br />

<strong>BI</strong> provider Informaion Builders states that selec<strong>in</strong>g<br />

<strong>BI</strong> without underst<strong>an</strong>d<strong>in</strong>g specific bus<strong>in</strong>ess needs is a<br />

major cause of <strong>BI</strong> projects fail<strong>in</strong>g.<br />

“Without a specific purpose, <strong>BI</strong> rarely has impact on<br />

bus<strong>in</strong>ess. <strong>The</strong> star<strong>in</strong>g po<strong>in</strong>t for crea<strong>in</strong>g a <strong>BI</strong> soluion<br />

should be when you idenify a project that will solve<br />

a specific problem through access <strong>to</strong> <strong>in</strong>formaion <strong>in</strong> a<br />

imely fashion <strong>an</strong>d <strong>in</strong> the right context. ‘Solve a<br />

problem’ me<strong>an</strong>s that <strong>in</strong>formaion will accelerate a<br />

slow runn<strong>in</strong>g process, elim<strong>in</strong>ate a botleneck, reduce<br />

the cost of do<strong>in</strong>g bus<strong>in</strong>ess, or even become a new<br />

revenue source” (Qu<strong>in</strong>n, 2007).<br />

<strong>The</strong> cus<strong>to</strong>mer base<br />

A<strong>BI</strong> soluion c<strong>an</strong> saisfy different types of<br />

cus<strong>to</strong>mer requirements. <strong>BI</strong> systems c<strong>an</strong><br />

augment or replace m<strong>an</strong>agement<br />

<strong>in</strong>formaion repor<strong>in</strong>g, thus aid<strong>in</strong>g operaional staff<br />

<strong>an</strong>d l<strong>in</strong>e m<strong>an</strong>agement <strong>in</strong> their work. For example <strong>in</strong><br />

case study one, the <strong>BI</strong> soluion was used for<br />

cus<strong>to</strong>mer reviews. <strong>The</strong> case for us<strong>in</strong>g <strong>BI</strong> <strong>to</strong> augment<br />

MI is discussed later <strong>in</strong> this white paper.<br />

<strong>BI</strong> c<strong>an</strong> supply the needs of strategic m<strong>an</strong>agement<br />

s<strong>in</strong>ce it has the ability <strong>to</strong> comb<strong>in</strong>e data from<br />

muliple sources or perspecives, <strong>to</strong> provide jo<strong>in</strong>ed<br />

up <strong>in</strong>formaion with strategic breadth.<br />

<strong>BI</strong> soluions also provide <strong>to</strong>ols for ad hoc <strong>an</strong>alysis<br />

<strong>an</strong>d repor<strong>in</strong>g. This is useful for “<strong>in</strong>formaion workers”<br />

such as account<strong>an</strong>ts, <strong>an</strong>alysts or audi<strong>to</strong>rs. <strong>The</strong>se<br />

professionals need <strong>to</strong> undertake <strong>in</strong>vesigaive <strong>an</strong>alysis<br />

of data <strong>in</strong>volv<strong>in</strong>g “drill-downs”, aggregaion <strong>an</strong>d<br />

consolidaion, data correlaion, staisical <strong>an</strong>alysis, etc.<br />

with the ability <strong>to</strong> extract, comb<strong>in</strong>e <strong>an</strong>d m<strong>an</strong>ipulate<br />

data sets <strong>in</strong> order <strong>to</strong> idenify trends, relaionships <strong>an</strong>d<br />

causal fac<strong>to</strong>rs <strong>in</strong> the data. Consequently their <strong>BI</strong><br />

requirements are more complex th<strong>an</strong> those of other<br />

users who only need “c<strong>an</strong>ned” reports.<br />

<strong>The</strong>se “power users” require not only access <strong>to</strong><br />

the data but also the me<strong>an</strong>s <strong>to</strong> m<strong>an</strong>ipulate <strong>an</strong>d<br />

present it <strong>to</strong> provide me<strong>an</strong><strong>in</strong>gful <strong>in</strong>sights which the<br />

bus<strong>in</strong>ess c<strong>an</strong> use.<br />

<strong>BI</strong> cus<strong>to</strong>mers c<strong>an</strong> also be outside the org<strong>an</strong>izaion.<br />

Extend<strong>in</strong>g the <strong>BI</strong> capability <strong>to</strong> cus<strong>to</strong>mers <strong>an</strong>d other<br />

bus<strong>in</strong>ess partners c<strong>an</strong> have a beneficial impact <strong>in</strong><br />

terms of improved service, greater cus<strong>to</strong>mer loyalty<br />

<strong>an</strong>d saisfacion. It c<strong>an</strong> also be a signific<strong>an</strong>t<br />

compeiive differenia<strong>to</strong>r.<br />

An example of this c<strong>an</strong> be seen <strong>in</strong> the UK broker<br />

market. NetSol Technologies provides a selfservice<br />

repor<strong>in</strong>g suite for new bus<strong>in</strong>ess <strong>in</strong>troducers<br />

driven from the lender’s <strong>BI</strong> system. This enables<br />

new bus<strong>in</strong>ess <strong>in</strong>troducers <strong>to</strong> access <strong>in</strong>formaion on<br />

new bus<strong>in</strong>ess pay-outs on dem<strong>an</strong>d without hav<strong>in</strong>g<br />

<strong>to</strong> request the reports from the lessor’s cus<strong>to</strong>mer<br />

service staff.<br />

This funcionality is accessed via a web browser. It<br />

c<strong>an</strong> be made available <strong>to</strong> external users via a user<br />

name / password control. <strong>The</strong> data beh<strong>in</strong>d that<br />

report c<strong>an</strong> be restricted, i.e. new bus<strong>in</strong>ess<br />

<strong>in</strong>troducers c<strong>an</strong> only see “their” data.<br />

<strong>The</strong>re are signific<strong>an</strong>t bus<strong>in</strong>ess implicaions <strong>to</strong> this.<br />

Clearly there are benefits <strong>in</strong> terms of reduc<strong>in</strong>g the<br />

costs of serv<strong>in</strong>g the relaionship with the<br />

<strong>in</strong>termediary <strong>in</strong> that the process of dissem<strong>in</strong>a<strong>in</strong>g<br />

this <strong>in</strong>formaion <strong>to</strong> the <strong>in</strong>troducer is now<br />

au<strong>to</strong>mated <strong>an</strong>d does not require <strong>in</strong>tervenion by<br />

the lessor’s cus<strong>to</strong>mer service staff. It could be<br />

argued that the opportunity for dialogue with the<br />

<strong>in</strong>troducer has been lost though <strong>in</strong> pracice it<br />

provides for a beter-quality conversaion between<br />

the <strong>in</strong>troducer <strong>an</strong>d lessor.<br />

A <strong>BI</strong> cus<strong>to</strong>mer does not have <strong>to</strong> be a hum<strong>an</strong><br />

be<strong>in</strong>g. <strong>BI</strong> systems c<strong>an</strong> serve <strong>in</strong>formaion <strong>to</strong> other IT<br />

systems. For example a <strong>BI</strong> system c<strong>an</strong> pass<br />

behavioural data drawn from <strong>in</strong>ternal lease<br />

adm<strong>in</strong>istraion systems <strong>to</strong> a credit scor<strong>in</strong>g system.<br />

This system comb<strong>in</strong>es this <strong>in</strong>formaion with<br />

externally-sourced data from credit reference<br />

agencies <strong>to</strong> calculate <strong>an</strong> overall credit score which is<br />

passed <strong>to</strong> <strong>an</strong> au<strong>to</strong>-decision<strong>in</strong>g eng<strong>in</strong>e.<br />

March 1, 2012<br />

© Invigors EMEA, All rights reserved

PART TWO: Beyond M<strong>an</strong>agement Information<br />

<strong>The</strong> focus for most leas<strong>in</strong>g comp<strong>an</strong>ies is<br />

(correctly) on timely <strong>an</strong>d accurate f<strong>in</strong><strong>an</strong>cial<br />

report<strong>in</strong>g <strong>to</strong> meet the dem<strong>an</strong>ds of<br />

regula<strong>to</strong>rs, parent comp<strong>an</strong>ies <strong>an</strong>d other<br />

stakeholders. <strong>How</strong>ever the quality of m<strong>an</strong>agement<br />

<strong>in</strong>formation beyond f<strong>in</strong><strong>an</strong>cial report<strong>in</strong>g is more<br />

mixed for a number of reasons:<br />

● F<strong>in</strong><strong>an</strong>cial report<strong>in</strong>g takes priority so other<br />

reports may be delayed or dropped al<strong>to</strong>gether;<br />

● Because M<strong>an</strong>agement Information packs<br />

are delivered <strong>to</strong> a tight deadl<strong>in</strong>e, m<strong>an</strong>agement<br />

teams may not have sufficient time <strong>to</strong> consider<br />

the implications of the data they are review<strong>in</strong>g<br />

<strong>in</strong> order <strong>to</strong> make <strong>in</strong>formed decisions;<br />

● Develop<strong>in</strong>g reports from consolidat<strong>in</strong>g<br />

multiple data sources c<strong>an</strong> be time consum<strong>in</strong>g<br />

<strong>an</strong>d c<strong>an</strong> represent costly use of m<strong>an</strong>agement<br />

<strong>an</strong>d IT resources. Data may be held <strong>in</strong><br />

org<strong>an</strong>izational silos, so obta<strong>in</strong><strong>in</strong>g a holistic view<br />

of processes, cus<strong>to</strong>mers <strong>an</strong>d other bus<strong>in</strong>ess<br />

relationships is difficult <strong>to</strong> achieve;<br />

● Most report<strong>in</strong>g is delivered <strong>in</strong> a<br />

st<strong>an</strong>dardized packaged format with little, if <strong>an</strong>y<br />

drill-down functionality <strong>to</strong> identify the root<br />

cause of problems <strong>an</strong>d resolve them. Where<br />

<strong>in</strong>teractive <strong>an</strong>alysis is undertaken, this typically<br />

relies on the use of Excel spreadsheets which<br />

offers little <strong>in</strong> the way of audit trails <strong>an</strong>d poses<br />

data quality risks.<br />

Traditional MI therefore plays <strong>an</strong> adequate role <strong>in</strong><br />

f<strong>in</strong><strong>an</strong>cial report<strong>in</strong>g but often fails <strong>to</strong> <strong>an</strong>swer the<br />

“Why” <strong>an</strong>d “What-if” questions. It may provide a<br />

limited or <strong>in</strong>adequate view of <strong>an</strong> org<strong>an</strong>ization’s<br />

<strong>in</strong>ternal operations <strong>an</strong>d its external bus<strong>in</strong>ess<br />

environment – a “s<strong>in</strong>gle version of truth” or<br />

“s<strong>in</strong>gle view of cus<strong>to</strong>mer” may be difficult <strong>to</strong><br />

achieve. <strong>The</strong> static, <strong>in</strong>flexible reports may<br />

consume prodigious amounts of paper <strong>an</strong>d pr<strong>in</strong>ter<br />

<strong>in</strong>k but offer little opportunity for <strong>in</strong>vestigation,<br />

<strong>an</strong>alysis <strong>an</strong>d <strong>in</strong>formed decision-mak<strong>in</strong>g.<br />

7<br />

March 1, 2012<br />

© Invigors EMEA, All rights reserved<br />


Compar<strong>in</strong>g m<strong>an</strong>agement <strong>in</strong>formation with bus<strong>in</strong>ess<br />

<strong>in</strong>telligence<br />

Leas<strong>in</strong>g org<strong>an</strong>izaions produce “m<strong>an</strong>agement<br />

<strong>in</strong>formaion” with most sourc<strong>in</strong>g the data from<br />

more th<strong>an</strong> one system. For example:<br />

● Aged arrears (source - leas<strong>in</strong>g system);<br />

● Monthly P&L <strong>an</strong>d Bal<strong>an</strong>ce sheet (source -<br />

general ledger system); <strong>an</strong>d<br />

● Specific bad debt provision (e.g. <strong>in</strong> Excel).<br />

<strong>The</strong> monthly m<strong>an</strong>agement <strong>in</strong>formaion pack is<br />

prepared by comple<strong>in</strong>g these <strong>in</strong>dividual reports<br />

<strong>an</strong>d colla<strong>in</strong>g them <strong>in</strong><strong>to</strong> a s<strong>in</strong>gle bundle. By<br />

contrast, <strong>BI</strong> provides a more <strong>in</strong>tegrated <strong>an</strong>d holisic<br />

view of the org<strong>an</strong>izaion with a richer set of<br />

funcionality for <strong>an</strong>alysis, presentaion <strong>an</strong>d<br />

dissem<strong>in</strong>aion of <strong>in</strong>formaion.<br />

M<strong>an</strong>agement Informaion<br />

Muliple source of the truth<br />

Bus<strong>in</strong>ess Intelligence<br />

S<strong>in</strong>gle source of the truth<br />

● Each sotware applicaion will have its own<br />

MI suite.<br />

● Bus<strong>in</strong>esses will have m<strong>an</strong>y sources of MI.<br />

● Each applicaion <strong>an</strong>d its MI suite will have its<br />

own parial perspecive on the bus<strong>in</strong>ess.<br />

● <strong>The</strong> separate reports h<strong>in</strong>der the ability <strong>to</strong><br />

form a consistent, jo<strong>in</strong>ed up picture of the<br />

bus<strong>in</strong>ess.<br />

Bus<strong>in</strong>ess Intelligence consolidates several sources<br />

of <strong>in</strong>formaion <strong>to</strong> provide a s<strong>in</strong>gle, consistent,<br />

holisic view of the bus<strong>in</strong>ess.<br />

Simple cause <strong>an</strong>d effect<br />

Adv<strong>an</strong>ced <strong>an</strong>alyics<br />

An applicaion may have <strong>an</strong> MI suite which<br />

<strong>in</strong>cludes <strong>to</strong>ols which allow the opera<strong>to</strong>r <strong>to</strong> sort,<br />

filter, <strong>an</strong>d summarise data. <strong>How</strong>ever the data<br />

available is limited <strong>to</strong> doma<strong>in</strong> of that paricular<br />

applicaion.<br />

Suppor<strong>in</strong>g bus<strong>in</strong>ess processes<br />

A <strong>BI</strong> system allows the opera<strong>to</strong>r <strong>to</strong> <strong>an</strong>alyse<br />

<strong>in</strong>formaion from muliple sources of data. <strong>The</strong><br />

opera<strong>to</strong>r may discover relaionships, trends etc.<br />

which are not obvious when work<strong>in</strong>g with<br />

<strong>in</strong>dividual data sets.<br />

Suppor<strong>in</strong>g the m<strong>an</strong>agement process<br />

MI supports m<strong>an</strong>ag<strong>in</strong>g <strong>in</strong>dividual bus<strong>in</strong>ess<br />

processes.<br />

MI is used <strong>to</strong> prove that core systems reconcile<br />

<strong>an</strong>d add up.<br />

<strong>BI</strong> c<strong>an</strong> support the process of m<strong>an</strong>ag<strong>in</strong>g the<br />

bus<strong>in</strong>ess as a whole.<br />

<strong>BI</strong> is driven by the needs of the bus<strong>in</strong>ess.<br />

MI is used <strong>to</strong> moni<strong>to</strong>r acivity: are we do<strong>in</strong>g<br />

th<strong>in</strong>gs right?<br />

<strong>The</strong> format of MI is def<strong>in</strong>ed by the systems that<br />

produce MI.<br />

<strong>BI</strong> c<strong>an</strong> be used <strong>to</strong> evaluate strategy: are we<br />

do<strong>in</strong>g the right th<strong>in</strong>g?<br />

<strong>The</strong> format of <strong>BI</strong> is (or should be) def<strong>in</strong>ed by the<br />

needs of those who consume <strong>BI</strong>.<br />

Figure 1<br />

8<br />

March 1, 2012<br />

© Invigors EMEA, All rights reserved

Us<strong>in</strong>g <strong>BI</strong> <strong>to</strong> upgrade repor<strong>in</strong>g<br />

M<strong>an</strong>y enterprises adopt <strong>BI</strong> <strong>to</strong> augment the<br />

MI produced by their core applicaions.<br />

<strong>The</strong>se applicaions may support day <strong>to</strong> day<br />

process<strong>in</strong>g but no longer meet the <strong>in</strong>formaion<br />

needs of the bus<strong>in</strong>ess. Add<strong>in</strong>g <strong>BI</strong> as a repor<strong>in</strong>g layer<br />

c<strong>an</strong> be quicker, more cost effecive, less disrupive<br />

<strong>an</strong>d less risky th<strong>an</strong> replac<strong>in</strong>g core applicaions.<br />

Enterprises add a <strong>BI</strong> layer on <strong>to</strong>p of core<br />

applicaions <strong>to</strong> take adv<strong>an</strong>tage of a s<strong>in</strong>gle source of<br />

truth, adv<strong>an</strong>ced <strong>an</strong>alysis <strong>to</strong>ols, more atracive<br />

presentaion <strong>an</strong>d superior delivery mech<strong>an</strong>isms.<br />

Another benefit is improved speed <strong>in</strong> produc<strong>in</strong>g<br />

reports. Core applicaions are opimized <strong>to</strong> support<br />

process<strong>in</strong>g <strong>an</strong>d not repor<strong>in</strong>g. Enterprises that hold<br />

large amounts of data oten f<strong>in</strong>d that it may take<br />

several hours <strong>to</strong> run off a set of st<strong>an</strong>dard reports.<br />

This is because each <strong>in</strong>dividual report has <strong>to</strong><br />

summarize a large amount of tr<strong>an</strong>sacional data. <strong>BI</strong><br />

systems opimize the s<strong>to</strong>rage of data which me<strong>an</strong>s<br />

that it is less ime consum<strong>in</strong>g <strong>to</strong> prepare reports.<br />

Is <strong>BI</strong> just MI with a prety face?<br />

You are mee<strong>in</strong>g your <strong>to</strong>p new<br />

bus<strong>in</strong>ess <strong>in</strong>troducer early <strong>in</strong> the<br />

morn<strong>in</strong>g. He is compla<strong>in</strong><strong>in</strong>g that<br />

you are tak<strong>in</strong>g <strong>to</strong>o long <strong>to</strong> approve<br />

deals. You present him with a<br />

tradiional MI report which details your<br />

service level agreement perform<strong>an</strong>ce.<br />

His eyes glaze over as you try <strong>to</strong><br />

expla<strong>in</strong> what those numbers me<strong>an</strong>.<br />

Alternately your <strong>BI</strong> system prepares a<br />

report which is more user-friendly <strong>an</strong>d<br />

compell<strong>in</strong>g.<br />

Figure 2 - A tradiional approach <strong>to</strong> presen<strong>in</strong>g <strong>in</strong>formaion<br />

Figure 3 - A visually more appeal<strong>in</strong>g alternaive <strong>to</strong> the tradiional approach<br />

This report allows you <strong>to</strong> easily<br />

expla<strong>in</strong> <strong>to</strong> your audience that<br />

96% of proposals were<br />

serviced <strong>in</strong> less th<strong>an</strong> six hours.<br />

A good <strong>BI</strong> system will allow you <strong>to</strong><br />

present <strong>in</strong>formaion where the key<br />

po<strong>in</strong>ts c<strong>an</strong> easily be grasped. This is<br />

import<strong>an</strong>t where you are<br />

presen<strong>in</strong>g <strong>in</strong>formaion <strong>to</strong> <strong>an</strong><br />

audience who are not moivated <strong>to</strong><br />

work through the figures on a l<strong>in</strong>e<br />

by l<strong>in</strong>e basis. M<strong>an</strong>y staff, m<strong>an</strong>agers,<br />

dealers, brokers <strong>an</strong>d dealers are not<br />

be excited by read<strong>in</strong>g a table of<br />

numbers. Genera<strong>in</strong>g these visually<br />

engag<strong>in</strong>g reports directly from the<br />

<strong>BI</strong> system avoids re-enter<strong>in</strong>g <strong>in</strong><strong>to</strong><br />

Excel or other <strong>to</strong>ols <strong>an</strong>d provides<br />

<strong>in</strong>ternal, or external, <strong>BI</strong> cus<strong>to</strong>mers<br />

with a compell<strong>in</strong>g overview of<br />

service levels, KPIs <strong>an</strong>d other metrics<br />

relev<strong>an</strong>t <strong>to</strong> their work.<br />

March 1, 2012 © Invigors EMEA, All rights reserved 9

PART THREE - Tr<strong>an</strong>sform<strong>in</strong>g the bus<strong>in</strong>ess<br />

<strong>BI</strong> praciioners claim that enterprises themselves ch<strong>an</strong>ge as <strong>BI</strong> becomes more pervasive with<strong>in</strong> the<br />

enterprise. <strong>The</strong>y f<strong>in</strong>d new ways of us<strong>in</strong>g <strong>BI</strong> <strong>to</strong> achieve operaional efficiencies, effeciveness, <strong>an</strong>d<br />

ulimately ch<strong>an</strong>g<strong>in</strong>g the nature of the enterprise. Several <strong>BI</strong> authors describe three stages of adop<strong>in</strong>g <strong>BI</strong>:<br />

Efficiency<br />

• Do<strong>in</strong>g th<strong>in</strong>gs right<br />

• Seek<strong>in</strong>g operaional excellence<br />

• <strong>BI</strong> is used <strong>to</strong> jusify acions which have been taken.<br />

Effeciveness • Do<strong>in</strong>g the right th<strong>in</strong>g<br />

• Seek<strong>in</strong>g m<strong>an</strong>agement excellence<br />

• <strong>BI</strong> is used <strong>to</strong> support the decision mak<strong>in</strong>g process<br />

Tr<strong>an</strong>sformaion • F<strong>in</strong>d<strong>in</strong>g new bus<strong>in</strong>ess models<br />

• <strong>BI</strong> is used <strong>to</strong> prescribe the decision mak<strong>in</strong>gprocess.<br />

Figure 4 - Stages <strong>in</strong> tr<strong>an</strong>sformaion of the bus<strong>in</strong>ess enterprise. Adapted from (Buytendijk & L<strong>an</strong>dry, 2009) <strong>an</strong>d (La Valle, et al., 2010).<br />

Suppor<strong>in</strong>g the decision mak<strong>in</strong>g process<br />

Figure 5 - See<strong>in</strong>g the big picture<br />

<strong>The</strong> output of tradiional MI c<strong>an</strong> be likened <strong>to</strong><br />

<strong>in</strong>dividual jigsaw pieces each conta<strong>in</strong><strong>in</strong>g a<br />

perspecive on part of the big picture. Decision<br />

makers who have <strong>to</strong> rely on MI spend much of their<br />

ime try<strong>in</strong>g <strong>to</strong> put the jigsaw pieces<br />

<strong>to</strong>gether. <strong>BI</strong> when implemented<br />

effecively c<strong>an</strong> show not only the big<br />

picture but also the detail beh<strong>in</strong>d the key<br />

drivers of the bus<strong>in</strong>ess. One comp<strong>an</strong>y<br />

which adopted <strong>BI</strong> reported that<br />

m<strong>an</strong>agement c<strong>an</strong> “use bus<strong>in</strong>ess<br />

<strong>in</strong>telligence <strong>to</strong> underst<strong>an</strong>d how the firm<br />

is perform<strong>in</strong>g from several perspecives”.<br />

This results <strong>in</strong> <strong>an</strong> “easier <strong>an</strong>d more<br />

<strong>in</strong>formed decision mak<strong>in</strong>g process”<br />

(B<strong>an</strong>nister, 2009).<br />

Figure 5 shows one of the dashboards<br />

found with<strong>in</strong> Cypher. It shows lend<strong>in</strong>g<br />

limits by bus<strong>in</strong>ess l<strong>in</strong>e (<strong>in</strong> real ime, i.e.<br />

refreshed at periodic <strong>in</strong>tervals).<br />

<strong>The</strong> sources of data for this dash<br />

board are taken from several bus<strong>in</strong>ess<br />

l<strong>in</strong>es, each one potenially us<strong>in</strong>g different<br />

leas<strong>in</strong>g systems. <strong>The</strong> dashboard allows the viewer <strong>to</strong><br />

look at <strong>in</strong>dividual bus<strong>in</strong>ess l<strong>in</strong>es. It also allows the<br />

viewer <strong>to</strong> see all bus<strong>in</strong>ess l<strong>in</strong>es <strong>in</strong> relaion <strong>to</strong> each<br />

other, <strong>an</strong>d moni<strong>to</strong>r concentraion of risk.<br />

10<br />

March 1, 2012<br />

© Invigors EMEA, All rights reserved

Case Study 2 - M<strong>an</strong>ag<strong>in</strong>g <strong>an</strong>i-fraud aciviies<br />

North Carol<strong>in</strong>a (NC) Department of Health <strong>in</strong>sigated <strong>an</strong> <strong>an</strong>i-fraud program <strong>to</strong> <strong>in</strong>vesigate possible abuse<br />

of the federal health care <strong>in</strong>sur<strong>an</strong>ce program (La Valle, et al., 2010). <strong>The</strong> program <strong>in</strong>corporated a <strong>BI</strong><br />

soluion which <strong>an</strong>alysed the records of some 60,000 medical care providers <strong>an</strong>d two million paients.<br />

<strong>The</strong> <strong>BI</strong> system discovered some obvious <strong>an</strong>omalies such as one Medicaid provider who billed for 800<br />

days work <strong>in</strong> one year (Christensen, 2010). <strong>The</strong> department developed a mathemaical model <strong>to</strong> detect<br />

<strong>an</strong>y paterns of quesionable acivity. A “medical SWAT team of special <strong>in</strong>vesiga<strong>to</strong>rs” was tasked <strong>to</strong><br />

<strong>in</strong>vesigate suspicious cases. NC recouped some $37M <strong>in</strong> the program’s first year – more th<strong>an</strong> offse<strong>in</strong>g<br />

the cost of the program.<br />

F<strong>in</strong>d<strong>in</strong>g new bus<strong>in</strong>ess models<br />

This paper has already demonstrated how <strong>BI</strong><br />

c<strong>an</strong> drive ch<strong>an</strong>ge <strong>in</strong> the bus<strong>in</strong>ess. <strong>The</strong> quick<br />

w<strong>in</strong>s of <strong>BI</strong> implementaions enable<br />

org<strong>an</strong>izaions <strong>to</strong> idenify <strong>an</strong>d realise efficiency <strong>an</strong>d<br />

effeciveness ga<strong>in</strong>s. <strong>How</strong>ever this presumes that the<br />

impact of <strong>BI</strong> is limited <strong>to</strong> bus<strong>in</strong>ess as usual. By<br />

<strong>in</strong>tegra<strong>in</strong>g external <strong>an</strong>d <strong>in</strong>ternal data, <strong>an</strong>alys<strong>in</strong>g<br />

trends, modell<strong>in</strong>g behaviour <strong>an</strong>d f<strong>in</strong><strong>an</strong>cial<br />

perform<strong>an</strong>ce, <strong>BI</strong> enables org<strong>an</strong>izaions <strong>to</strong> exploit<br />

new markets, test new proposiions <strong>an</strong>d <strong>in</strong>troduce<br />

new bus<strong>in</strong>ess models. Over ime, as <strong>BI</strong> becomes<br />

embedded <strong>in</strong> the org<strong>an</strong>izaion’s strategic DNA,<br />

apply<strong>in</strong>g the learn<strong>in</strong>g from the applicaion of <strong>BI</strong> c<strong>an</strong><br />

tr<strong>an</strong>sform the nature of the bus<strong>in</strong>ess itself.<br />

Examples of bus<strong>in</strong>ess tr<strong>an</strong>sformaion atributable<br />

<strong>to</strong> <strong>BI</strong> with<strong>in</strong> the asset f<strong>in</strong><strong>an</strong>ce <strong>in</strong>dustry are not always<br />

easy <strong>to</strong> uncover as few comp<strong>an</strong>ies, for<br />

underst<strong>an</strong>dable reasons of compeiive<br />

confideniality, openly publicize the role that <strong>BI</strong> has<br />

played <strong>in</strong> their bus<strong>in</strong>ess. Nonetheless there are some<br />

org<strong>an</strong>izaions which have clearly moved beyond<br />

bus<strong>in</strong>ess as usual. In these cases comp<strong>an</strong>ies have<br />

either acknowledged that <strong>BI</strong> has played a role or it is<br />

a reasonable assumpion that a bus<strong>in</strong>ess ch<strong>an</strong>ge of<br />

this nature is unlikely <strong>to</strong> have been achieved without<br />

the effecive use of <strong>BI</strong>. For example:<br />

• A b<strong>an</strong>k-owned leas<strong>in</strong>g comp<strong>an</strong>y used <strong>BI</strong> <strong>to</strong><br />

tr<strong>an</strong>sform its approach <strong>to</strong> the <strong>in</strong>troducer sec<strong>to</strong>r <strong>in</strong><br />

the UK market with signific<strong>an</strong>t impact on the bo<strong>to</strong>m<br />

l<strong>in</strong>e (where compei<strong>to</strong>rs were withdraw<strong>in</strong>g from the<br />

sec<strong>to</strong>r) <strong>an</strong>d major growth <strong>in</strong> market share;<br />

• A m<strong>an</strong>ufacturer capive developed new<br />

products for the SME market tr<strong>an</strong>sform<strong>in</strong>g it from <strong>an</strong><br />

office equipment lessor <strong>to</strong> f<strong>in</strong><strong>an</strong>cial services<br />

provider. This enabled <strong>to</strong> comp<strong>an</strong>y <strong>to</strong> ga<strong>in</strong> a greater<br />

share of cus<strong>to</strong>mer wallet, thereby improv<strong>in</strong>g<br />

cus<strong>to</strong>mer profitability while promo<strong>in</strong>g a longer<br />

term, more loyal cus<strong>to</strong>mer relaionship;<br />

• Fleet m<strong>an</strong>agement comp<strong>an</strong>ies <strong>in</strong> Europe are<br />

exploi<strong>in</strong>g ch<strong>an</strong>ges <strong>in</strong> cus<strong>to</strong>mer dynamics <strong>an</strong>d<br />

seek<strong>in</strong>g growth through added value services by<br />

develop<strong>in</strong>g <strong>an</strong>d tes<strong>in</strong>g mobility m<strong>an</strong>agement<br />

proposiions. By seek<strong>in</strong>g <strong>to</strong> service cus<strong>to</strong>mers’ travel<br />

requirements beyond vehicle provision, comp<strong>an</strong>ies<br />

are reposiion<strong>in</strong>g themselves as mobility services<br />

providers <strong>in</strong> which vehicle leas<strong>in</strong>g is but one<br />

component.<br />

Obviously <strong>BI</strong> is not the only fac<strong>to</strong>r <strong>in</strong>volved <strong>in</strong><br />

these bus<strong>in</strong>ess tr<strong>an</strong>sformaions. <strong>How</strong>ever it is<br />

evident that <strong>an</strong> effecive <strong>BI</strong> plaform <strong>an</strong>d cultural<br />

accept<strong>an</strong>ce of <strong>BI</strong> are essenial <strong>in</strong> enabl<strong>in</strong>g these<br />

org<strong>an</strong>izaions <strong>to</strong> m<strong>an</strong>age the ch<strong>an</strong>ge required <strong>in</strong><br />

order <strong>to</strong> exploit these bus<strong>in</strong>ess opportuniies<br />

successfully.<br />

March 1, 2012 © Invigors EMEA, All rights reserved 11

Case study 3 - tr<strong>an</strong>sform<strong>in</strong>g the bus<strong>in</strong>ess<br />

Wigg<strong>in</strong> LLP is a bouique law firm<br />

specialis<strong>in</strong>g <strong>in</strong> the media sec<strong>to</strong>r. Its<br />

specialist knowledge allowed it <strong>to</strong> provide<br />

a higher-value product <strong>to</strong> its client base. <strong>How</strong>ever<br />

the recent economic downturns exacerbated price<br />

compeiion from larger law firms.<br />

Wigg<strong>in</strong> used tradiional bill<strong>in</strong>g systems which were<br />

geared <strong>to</strong>wards bill<strong>in</strong>g clients, produc<strong>in</strong>g the<br />

accounts etc. <strong>The</strong>se systems did not allow Wigg<strong>in</strong> <strong>to</strong><br />

idenify key perform<strong>an</strong>ce <strong>in</strong>dica<strong>to</strong>rs such as revenue,<br />

costs (direct <strong>an</strong>d <strong>in</strong>direct) <strong>an</strong>d return on capital<br />

atributable <strong>to</strong> clients or staff. Wigg<strong>in</strong> relied on<br />

m<strong>an</strong>ually prepared reports. <strong>The</strong>se reports were ime<br />

consum<strong>in</strong>g <strong>to</strong> prepare, prone <strong>to</strong> error <strong>an</strong>d oten <strong>to</strong>o<br />

late <strong>to</strong> help <strong>in</strong> mak<strong>in</strong>g key decisions - e.g. respond<strong>in</strong>g<br />

<strong>to</strong> requests for proposals (RFP).<br />

Wigg<strong>in</strong> implemented a <strong>BI</strong> system which captured<br />

data from several sources <strong>an</strong>d consolidated it <strong>in</strong><strong>to</strong> a<br />

data warehouse. <strong>The</strong> data warehouse supports the<br />

repor<strong>in</strong>g <strong>an</strong>d a real ime dashboard which provides<br />

“<strong>an</strong> <strong>in</strong>terface between the system, the f<strong>in</strong><strong>an</strong>ce team<br />

<strong>an</strong>d the fee earners/m<strong>an</strong>agement”.<br />

<strong>The</strong> <strong>BI</strong> system generated the follow<strong>in</strong>g benefits for<br />

Wigg<strong>in</strong> ater implementaion. Firstly <strong>BI</strong> allowed<br />

them <strong>to</strong> idenify their most profitable clients <strong>an</strong>d<br />

types of work tak<strong>in</strong>g <strong>in</strong><strong>to</strong> account revenues, direct<br />

<strong>an</strong>d <strong>in</strong>direct costs. Secondly <strong>BI</strong> idenified<br />

profitability by staff member tak<strong>in</strong>g <strong>in</strong><strong>to</strong> account<br />

new clients, client retenion, <strong>an</strong>d return on capital.<br />

<strong>The</strong> <strong>BI</strong> system is trusted as a tr<strong>an</strong>sparent system for<br />

calcula<strong>in</strong>g staff rewards. It encouraged staff <strong>to</strong><br />

“modify their behaviour” e.g. through cross sell<strong>in</strong>g.<br />

Thirdly the <strong>BI</strong> system gave Wigg<strong>in</strong> beter <strong>an</strong>d<br />

imelier <strong>in</strong>formaion which is used when prepar<strong>in</strong>g<br />

RFP’s. This allowed Wigg<strong>in</strong> <strong>to</strong> <strong>an</strong>icipate potenial<br />

costs <strong>an</strong>d staff<strong>in</strong>g levels for projects. Wigg<strong>in</strong> has<br />

started <strong>to</strong> move from a st<strong>an</strong>dard-cost model (£ per<br />

hour) <strong>to</strong> a value-pric<strong>in</strong>g model.<br />

<strong>The</strong> adopion of <strong>BI</strong> has started <strong>to</strong> tr<strong>an</strong>sform<br />

Wigg<strong>in</strong> <strong>in</strong><strong>to</strong> a more agile, value creaion aware<br />

enterprise. <strong>How</strong>ever Wigg<strong>in</strong> sees this as the start of<br />

a process as it looks <strong>to</strong> f<strong>in</strong>d new ways <strong>to</strong> use <strong>BI</strong>.<br />

(B<strong>an</strong>nister, 2009)<br />

12<br />

March 1, 2012<br />

© Invigors EMEA, All rights reserved

Figure 6<br />

Conclusion<br />

<strong>BI</strong> has the ability <strong>to</strong> consolidate data from m<strong>an</strong>y<br />

sources <strong>an</strong>d comb<strong>in</strong>e it <strong>in</strong><strong>to</strong> a s<strong>in</strong>gle holisic<br />

view of the enterprise. By au<strong>to</strong>ma<strong>in</strong>g this<br />

process, <strong>BI</strong> produces imely, consistent repeatable<br />

<strong>in</strong>formaion.<br />

Bus<strong>in</strong>ess Intelligence soluions offer superior<br />

distribuion <strong>an</strong>d presentaion <strong>to</strong>ols compared <strong>to</strong><br />

m<strong>an</strong>agement <strong>in</strong>formaion systems. <strong>BI</strong> is a cost<br />

effecive way of supplemen<strong>in</strong>g or replac<strong>in</strong>g<br />

<strong>in</strong>adequate MI.<br />

Informaion is at the heart of <strong>an</strong>y enterprise. A <strong>BI</strong><br />

soluion c<strong>an</strong> tr<strong>an</strong>sform <strong>an</strong> enterprise by improv<strong>in</strong>g<br />

the quality, access <strong>an</strong>d imel<strong>in</strong>ess of <strong>in</strong>formaion,<br />

thus tr<strong>an</strong>sform<strong>in</strong>g the m<strong>an</strong>agement of that<br />

enterprise. An enterprise that has adopted <strong>BI</strong> is only<br />

bounded by the level of ambiion it has <strong>in</strong> us<strong>in</strong>g its<br />

key resource – <strong>in</strong>formaion.<br />

References<br />

B<strong>an</strong>nister, J., 2009. Wigg<strong>in</strong> Bus<strong>in</strong>ess Intelligence<br />

Case Study. htp://www.lexisnexis.co.uk/pdf/casestudies/redwood_wigg<strong>in</strong>.pdf<br />

Buytendijk, F. & L<strong>an</strong>dry, D., 2009. <strong>BI</strong> Opimizaion:<br />

Build<strong>in</strong>g a beter case for bus<strong>in</strong>ess <strong>in</strong>telligence,<br />

Redwood Shores: ORACLE.<br />

Christensen, R., 2010. N.C. <strong>an</strong>d IBM team up <strong>to</strong><br />

ferret out Medicaid fraud.<br />

htp://www.newsobserver.com/2010/03/25/405666<br />

/nc-<strong>an</strong>d-ibm-team-up-<strong>to</strong>-ferret-out.html<br />

La Valle, S. et al., 2010. Analyics: <strong>The</strong> new path <strong>to</strong><br />

value, Somners: s.n.<br />

Qu<strong>in</strong>n, K., 2007. Worst Pracices <strong>in</strong> Bus<strong>in</strong>ess<br />

Intelligence, Informaion Builders.<br />

htp://www.<strong>in</strong>formaionbuilders.com/products/whit<br />

epapers/whitepaper_form/WHTWorst.<br />

Tapscot, D. & Barter, P., 2009. Mak<strong>in</strong>g Strategy<br />

Real.htp://<br />

<strong>in</strong>g_Strategy_Real_Whitepaper.pdf<br />

March 1, 2012<br />

© Invigors EMEA, All rights reserved<br />


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