What is a Business Report?

 A written document that contains information

regarding business matters.
 Purpose: to improve managerial decisions
 Source: data from inside and outside the
organization (via the use of ETL)
 Format: text + tables + graphs/charts
 Distribution: in-print, email, portal/intranet

Data acquisition  Information generation 

Decision making  Process management
Business Reporting
Business Functions

UOB 1.0 X UOB 2.1 X UOB 3.0

Data UOB 2.2

Transactional Records
Exception Event
Symbol Count Description
Action
Machine
1
Failure (decision)

DEPLOYMENT CHART

PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5

DEPT 1

DEPT 2

DEPT 3

Data
DEPT 4

4 5
2 3
1
Repositories
Decision
Information
Maker
(reporting)
Key to Any Successful Report
 Clarity …
Complete

 Brevity …
 Completeness …
 Correctness …
 Fairness

 Report types (in terms of content and format)

 Informal – a single letter or a memo
 Formal – 10-100 pages; cover + summary + text
 Short report – periodic, informative, investigative
Types of Business Reports

 Metric Management Reports

 Help manage business performance
through metrics (SLAs for externals; KPIs
for internals)
 Can be used as part of Six Sigma and/or
TQM
 Types of Business Reports

 Dashboard-Type Reports
 Graphical presentation of several
performance indicators in a single
page using dials/gauges

 Balanced Scorecard-Type Reports

 Include financial, customer, business
process, and learning & growth
indicators
Components of Business Reporting Systems
 Common characteristics
 OLTP (online transaction processing)
 ERP, POS, SCM, RFID, Sensors, Web, …
 Data supply (volume, variety, veracity, velocity, …)
 ETL
 Data storage
 Business logic
 Publication medium
 Assurance
Data and Information Visualization

 Data visualization vs. Information visualization

 Information = aggregation, summarization, and
contextualization of data
 Related to information graphics, scientific
visualization, and statistical graphics
 Often includes charts, graphs, illustrations, …
A Brief History of Data Visualization
 1900s –
 more formal attitude toward visualization
 focus on color, value scales, and labeling
 Publication of the book Semiologie Graphique
 2000s –
 Emergence of Internet as the medium for
information visualization  raising visual literacy
 Incorporate interaction, animation, 3D graphics-
rendering, virtual worlds, real-time data feed
 2010s and beyond – ?
Different Types of Charts and Graphs
 Which one to use? Where and when?
 Basic Charts and
 Specialized Charts and
Graphs
 Line Chart
Graphs
 Histogram
 Bar Chart
 Gantt Chart
 Pie Chart
 Scatter Plot  PERT Chart
 Bubble Chart  Geographic Map
 Bullet Graph
 Heat Map / Tree Map
Visual Analytics

 A recently coined term

 Information visualization + predictive analytics
 Information visualization
 Descriptive, backward focused
 “what happened” “what is happening”
 Predictive analytics
 Predictive, future focused
 “what will happen” “why will it happen”
 There is a strong move toward visual analytics
Data Science Skills
Performance Dashboards
 Performance dashboards are commonly used in BPM software suites
and BI platforms
 Dashboards provide visual displays of important information that is
consolidated and arranged on a single screen so that information can
be digested at a single glance and easily drilled in and further
explored
Performance Dashboards
 Dashboard design
 The fundamental challenge of dashboard design is to display all the required
information on a single screen, clearly and without distraction, in a manner
that can be assimilated quickly
 Three layer of information
 Monitoring
 Analysis
 Management
Performance Dashboards

 What to look for in a dashboard

 Use of visual components to highlight data and exceptions
that require action.
 Transparent to the user, meaning that they require minimal
training and are extremely easy to use
 Combine data from a variety of systems into a single,
summarized, unified view of the business
 Enable drill-down or drill-through to underlying data
sources or reports
 Present a dynamic, real-world view with timely data
 Require little coding to implement/deploy/maintain
 Best Practices in
Dashboard Design
 Benchmark KPIs with Industry Standards
 Wrap the Metrics with Contextual data
 Validate the Design by a Usability Specialist
 Prioritize and Rank Alerts and Exceptions
 Enrich Dashboard with Business-User Comments
 Present Information in Three Different Levels
 Pick the Right Visual Constructs
 Performance Dashboard – Steps
Step
StepOne:
One: Step
StepTwo:
Two: Step
StepThree:
Three: Step
StepFour:
Four: Step
StepFive:
Five:
Articulate
Articulate Translate
Translate Devise
Devise Link
LinkMetrics
Metrics Calculate
Calculate
Business
Business Strategy
StrategyInto
Into Metrics
Metrics To
ToLeading
Leading Current
CurrentAnd
And
Strategy
Strategy Desired
Desired And
AndLagging
Lagging Target
Target
Outcomes
Outcomes Indicators
Indicators Performance
Performance
Market Opportunity Market Opportunity
Market size?
• Opportunity Opportunity Market
• Market Opportunity
size and growth
• Opportunity size?
• Competitive environment? • Market sizeand
• Average age andincome
growth
• Competitive environment? • Average age
• Competitor and income
concentration
• Competitor concentration
Business Model Business Model
• UniqueBusiness Model • CustomerBusiness Model
Develop resource system required to deliver the strategy

value proposition? perceived

• • Customer perceived
Develop resource system required to deliver the strategy

Unique value
• Capabilities vs. proposition? benefits • For each metric, • For each metric,
Define goals and value proposition

• Capabilities vs. benefits partnerships

• Exclusive • For each metric, • For each metric,
competition? determine the calculate current
Define goals and value proposition

competition? • $• Exclusive
invested inpartnerships
technology vs determine
metrics that itthe
affects calculate
level current
of performance
• $ invested in technology vs metrics that ititaffects level of performance
competition and that affect • Determine target
Implementation and competition
Implementation • Mapandthe
that affectsetit of • Determine target
linked level required to
Implementation
Branding and • Customer Implementation
brand awareness • Map the linked set of leveloutcomes
required to
• Customer brand awareness metrics, indicating meet
Branding
• How to develop brand? • System uptime percentage metrics, indicating meet outcomes
• How to develop brand? • leading and lagging described in Step 2
• How to go to market? • Number of IT staffpercentage
System uptime leading and lagging
indicators described
• Ensure that in Step 2
targets
• How to go to market? •% • Number of IT staff indicators • Ensure that targets
inaccurate orders • Ensure that there is are consistent with
• % inaccurate orders •
a Ensure
balancethat there is
between are other
each consistent with
Customer Customer a balance
leading and between
lagging each other
Customer
• How to acquire customers? Customer
• Market share leading and lagging
• • indicators
How
• How to customers
will acquire customers? Market share
• Purchases / year indicators
• How will customers • Purchases / year
• Success
change? rate
change?
• The • Success rate
• Service
customer experience? requests / customer
• The customer experience? • Service requests / customer
Financial Financial
Financial
• Financial consequences in • Revenue Financial
• Financial consequences in • Revenue
• Profit
terms of revenue, profit,
terms of revenue, profit, • Profit
• Earnings
cost and balance sheet? per share
cost and balance sheet? • Earnings per share
• Debt to Equity ratio
• Debt to Equity ratio
 Plan Remaining Lectures

 Data Mining ; R for Statistics Analysis

 Future of Analytics ; Dashboard with Excel
 Revision ; Presentations

 Final Exam
 Business Performance
Management (BPM)
 Business Performance Management (BPM) is…
A real-time system that alerts managers to potential
opportunities, impending /future problems and
threats, and then empowers them to react through
models and collaboration.
 Also called corporate performance management
(CPM by Gartner Group), enterprise performance
management (EPM by Oracle), strategic enterprise
management (SEM by SAP)
Business Performance Management
(BPM)

 BPM refers to the business processes,

methodologies, metrics, and technologies used by
enterprises to measure, monitor, and manage
business performance.
 BPM encompasses three key components
 A set of integrated, closed-loop management and analytic
processes, supported by technology …
 Tools for businesses to define strategic goals and then
measure/manage performance against them
 Methods and tools for monitoring key performance
indicators (KPIs), linked to organizational strategy
A Closed-Loop Process to Optimize
Business Performance

 Process Steps
1. Strategize
2. Plan
3. Monitor/analyze
4. Act/adjust

Each with its own process

steps
Strategize:
Where Do We Want to Go?

 Strategic planning
 Common tasks for the strategic planning process:
1. Conduct a current situation analysis
2. Determine the planning horizon
3. Conduct an environment scan
4. Identify critical success factors
5. Complete a gap analysis
6. Create a strategic vision
7. Develop a business strategy
8. Identify strategic objectives and goals
Plan:
How Do We Get There?

 Operational planning
 Operational plan: plan that translates an organization’s
strategic objectives and goals into a set of well-defined
tactics and initiatives, resources requirements, and
expected results for some future time period (usually a
year).
 Operational planning can be
 Tactic-centric (operationally focused)
 Budget-centric plan (financially focused)
Monitor/Analyze:
How Are We Doing?
 A comprehensive framework for monitoring
performance should address two key issues:
 What to monitor?
 Critical success factors
 Strategic goals and targets
…
 How to monitor?
 …
 Act and Adjust: What Do We
Need to Do Differently?
 Success (or mere survival) depends on new projects:
creating new products, entering new markets, acquiring
new customers (or businesses), or streamlining some
process.
 Many new projects and ventures fail!
Performance Measurement

 Performance measurement system

A system that assists managers in tracking the implementations of
business strategy by comparing actual results against strategic goals
and objectives
 Comprises systematic comparative methods that indicate progress (or lack
thereof) against goals
KPIs and Operational Metrics

 Key performance indicator (KPI)

A KPI represents a strategic objective and metrics
that measure performance against a goal
 Distinguishing features of KPIs

 Strategy  Encodings
 Targets  Time frames
 Ranges  Benchmarks
Performance Measurement

 Key performance indicator (KBI)

Outcome KPIs vs. Driver KPIs
(lagging indicators (leading indicators
e.g., revenues) e.g., sales leads)

 Operational areas covered by driver KPIs

 Customer performance
 Service performance
 Sales operations
 Sales plan/forecast
 Performance Measurement
System
 Balanced Scorecard (BSC)
A performance measurement and management
methodology that helps translate an organization’s
financial, customer, internal process, and learning and
growth objectives and targets into a set of actionable
initiatives
"The Balanced Scorecard: Measures That Drive
Performance” (HBR, 1992)
Balanced
Scorecard

The meaning of “balance”

?
Six Sigma as a Performance
Measurement System

 Six Sigma
A performance management methodology aimed
at reducing the number of defects in a business
process to as close to zero defects per million
opportunities (DPMO) as possible
Six Sigma as a Performance
Measurement System

 The DMAIC performance model

A closed-loop business improvement model that
encompasses the steps of defining, measuring,
analyzing, improving, and controlling a process
 Lean Six Sigma
 Lean manufacturing / lean production
 Lean production versus six sigma?