Performance Dashboards: Measuring, Monitoring, and Managing Your Business Wayne W

Performance Dashboards: Measuring, Monitoring, and Managing Your Business Wayne W. Eckerson

• WAYNE W. ECKERSON is the Director of Research and Services for The Data Warehousing Institute. • Eckerson has 17 years of industry experience and has covered data warehousing and business intelligence since 1995. • Eckerson is the author of many in- depths reports, a columnist for several business and technology magazines, and a noted speaker and consultant. • Eckerson has recently written a book titled, Performance Dashboards: Measuring, Monitoring, and Managing Your Business (Wiley & Sons, 2005). • He can be reached at weckerson@ tdwi.org

© Copyright TDWI, 2006 Slide 2 Course Agenda 1. Evolution of Performance Dashboards 2. Why Performance Dashboards? 3. What are Performance Dashboards? 4. Architecting Performance Dashboards 5. Case Studies 7. Costs of Deployment 8. How to Build Effective Metrics 9. How to Design Effective Dashboard Screens 10. Criteria for Evaluating Dashboard Products

© Copyright TDWI, 2006 Slide 3 Appendices • A - Performance Dashboard Trends • B- Readiness Assessment • C - How to Ensure Adoption • D - Performance Dashboard Market Segmentation • E – Sample Metrics Report

• too much data…. • too little information… • delivered too late… to make effective decisions.

© Copyright TDWI, 2006 Slide 6 Evolution of a Solution The search for the perfect “business insight system”: • 1980s – Executive information systems (EIS) – Decision support systems (DSS) • 1990s – Data warehousing (DW) – Business intelligence (BI) • 2000s – Dashboards and scorecards – Performance management • 2010+??

Dashboard Performance Chart

Performance Dashboard

Business Corporate Intelligence Performance Management STRATEGY

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No plans, 17%

Deployed, 51% Under development 33%

From Wayne Eckerson, “Development Techniques for Creating Analytic Applications,” TDWI, 2005.

© Copyright TDWI, 2006 Slide 14 Tactical Drivers Resonates with users • Monitors status of several areas on one screen • Graphical view of key metrics • Alerts users to exception conditions • Click to analyze and drill to detail • Customized views based on role • Personalized views based on interest • No training required!

© Copyright TDWI, 2006 Slide 15 Tactical Drivers (cont.) Rich data • Blends data from multiple sources • Both detailed and aggregated • Both historical and real-time Empowers workers • Focuses users on what’s really important • Shows them how their contributions count • Motivates with goals, competition, & incentives • Drives proactive intervention

© Copyright TDWI, 2006 Slide 16 Strategic Drivers Aligns the business • Everyone uses the same data • Everyone uses the same metrics • Everyone works toward the same strategy Improves communication • Tool for communicating strategy • Managers & staff - collaboration • Among departments - coordination Improves visibility and compliance • Fewer surprises

Goal

Direction without a Performance Dashboard

Direction with a Performance Dashboard

Monitoring Analysis Collaboration

Purpose Convey performance Analyze exceptions and Collaborate, plan, status & trends at a find root cause and ACT glance Elements - Multi-paneled screens - Drill down/up -Telephone - Graphical metrics (i.e. hierarchies -Meetings dials, gauges, symbols) - Pivot and swap out - Email (notification) - Charts and tables dimensions - Annotations - Status, trend, and - Drill through to - Threaded threshold indicators operational data discussions - Color-coded, - Time series, - Recommended conditional formatting segmentation, predictive, analysis, actions - Alerts: Web-based, and other analyses - Publish to server email, other - Reporting -Workflow - Triggers, Updates

Graphical Abstracted Data Monitoring Graphs, Symbols, Charts

Summarized Dimensional Data Analysis Dimensions, hierarchies, “slice/dice” Planning Detailed, Operational Data Reporting DW queries, Operational reports

Performance Dashboard Plans, models, forecasts, updates

© Copyright TDWI, 2006 Slide 24 Dashboard Usage “Our executives will drill one or two levels down before they call someone who can fix the problem, while our managers will often drill three or four layers down before they make a call.”

– Thomas Tomlinson, director of BI for Bull Moose Tube, a steel manufacturer in Chesterfield, MO.

Rule of thumb: Use whatever term business users prefer!

Purpose Measures current activity Charts progress Users Executives, managers, staff Executives, managers, staff Updates “Right time” feeds Periodic snapshots Data Events Summaries Queries Run against remote systems Run against local data mart Display Charts Symbols

Dashboards and scorecards are visual interfaces for monitoring business performance

Operational Tactical Strategic

Focus Monitor operations Optimize process Execute strategy Emphasis Monitoring Analysis Collaboration Users Supervisors+ Managers+ Executives+ Scope Operational Departmental Enterprise Information Detailed Detailed/Summary Summary Updates Intra-day Daily/Weekly Monthly/Quarterly “Looks like a…” “Dashboard” “BI Portal” “Scorecard”

– Too Flat “A prettified spreadsheet”

– Too Isolated “Another spreadmart”

– Too Manual “Not scalable or sustainable”

– Too Cheap “You get what you pay for!”

Business Architecture BI Architecture Data Architecture

Stakeholders Investors Board Workforce Customers Suppliers Regulators Business Architecture

Strategy Mission Vision Values Goals Objectives Strategy Map

Tactics Assets People Knowledge Plans Process Projects

Semantics Terms Definitions Rules Metadata Education Governance

Metrics Leading Lagging Diagnostic

Displays Dashboard BI Portal Scorecard Technical Architecture

Applications Monitoring Analysis Management

Data Stores ODS Memory cache Data warehouse Data marts Reports Documents

Integration Custom API EAI EII Direct queries ETL Manual

Data Sources Legacy Systems Packaged Apps Web pages Files Surveys Text Performance Dashboard

Business Architecture

Monitoring Layer Dashboards, scorecards, KPIs, Alerts r Analysis Layer Dimensions, hierarchies, “slice/dice”

Reporting Layer Planning Laye

Management and operational reports Plans, models, forecasts Integrated BI Capabilities

BI Platform (Analytic Server) - Common services, object model, API, file formats, etc. Data Delivery Architecture

Packaged Phone Mainframe AS/400 Web Applications System

Messaging Backbone (Enterprise Application Integration software) e c i b v r We Se

ETL Operational ETL Data Warehouse Real-time Store Data Store (2 days of data) (7 years of data) (2 months of data)

250 OLAP Cubes 100 OLAP Cubes Cubes (7 years of data) Cubes (2 weeks of data)

Reporting & Operational and Analysis Tools Tactical Dashboards