BUSINESS
INTELLIGENCE -
VOLTAIRE CONSULTANTS BUSINESS
Data Warehousing
Modern day business characteristics are as follows: |
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Just in time production. |
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Economies of scale. |
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Customer binding and loyalty programs. |
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The classic value chain has changed from a
production driven process to Supply Chain Management and Demand
Planning. |
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Providing Information that is proven to be
correct and complete from start (legacy system) till end (end-user). |
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Tendency to customization. |
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Use of ERP and CRM packages. |
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Management decisions based on information stored
in company computer systems. |
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Information seen as a competitive resource. |
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Knowlegde management. |
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Internet. |
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Subject to globalisation. |
All these factors pose new
demands on the modern day management of the corporation. The ability to
successfully make critical business decisions depends more and more on
the availability of relevant gleaned information and the use of
information technology. Companies and organizations generally have
stored significant amounts of information in their ERP and operational
legacy systems. However, this all needs to be formatted
and aggregated into meaningful information about customers,
suppliers and production processes. Paradox in many companies is: "The
more information systems there are, the more difficult it appears to
obtain the right information". Two reasons for this are: |
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Corporate production systems are not designed to
meet the needs of decision making. |
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These production systems contain specific
categories of data (sales, financial and
product), that are not easily combined. |
More and more organisations have therefore decided to
implement a Data Warehouse in order to obviate this
paradox. The Data Warehouse is set up to facilitate Customer Management
processes (e.g. Database Marketing, Relationship Marketing) or for
Performance Management goals - Balanced Scorecard. These elements form
the basis for an integral Business Intelligence strategy. The Data
Warehouse is no more than a prerequisite (an infrastructure) for
improving decision making effectiveness. But increasingly it appears to
be a necessary prerequisite.
Data Mining
and Analytical CRM
Standard reporting techniques do not always provide relevant insights
into an organisation’s customers. Obviously you are interested in
maximizing revenue, equally you may wish to identify any
potential risks your customers or prospects may pose. Data Mining can
provide valuable previously unknown insights into customers
and prospects as well as providing relevant contexts and cross
referencing. Typically Data Mining has no preconceived goal. Data
analysis simply provides new insights via statistical sampling and
methods into customer behaviour, etc. SAS can perform customer
segmentation, identify risks and cross-selling opportunities.
Customer Loyalty plays a large role in some sectors. Is this still
warranted? Instead of a Loyalty Card, should we not turn our attention
to Behavioural Segmentation? Campaign Management: how do you
measure the effectiveness of such? Is the campaign a good
idea given future strategies? Is the Database Marketing effort
relevant in the overall scheme of things?
What is any given customer worth to date? I.e. what is their “Nett
Present Value”? Should you target more effort at her/him? Is it a
platinum, gold of silver customer? What are your future expectations of
this customer in terms of revenue? Is a long terms relationship
condusive to the company? In other words what is the expecte “Life Time
Value” of the client? Where should your marketing efforts be
focused for the highest return on investment? How should you
address customer retention and churn? All these questions are
relevant today. In a nutshell, follow your customers.
In summary you can perform the
following with customers: |
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Segmentation from different perspectives e.g.
customer value, products sold. |
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Cross-sell and deep-sell / up-sell them. |
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Credit scores assignation. |
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Assess response chances. |
Reconciliation
The rollout of a new Data Warehouse or management information system is
a task often underestimated. Delivery is arduous enough. Accepting the
new reporting figures can cause some consternation within the relevant
departments and upper management. This is generally a
consequence of old and new figures not matching. How big should the
deviations be? And what is the explanation for these differences? Have
misconceptions crept into the new Data Warehouse or were the old
figures not actually that reliable? Comparison of the old and new
figures requires often significant effort when there
are differences. Knowledge of existing legacy systems and
their inbuilt assumptions are not always evident. The system
integrator will want to sign off the project, the
client on the other hand will want assurances. In short a very
difficult situation.
In such cases the challenge is to explain any differences to all
parties in a neutral and timely fashion allowing fixes to proceed or
the organization to adopt a new reporting paradigma. This process is
quite complex and should not be underestimated. All this requires a
special program with experienced personnel. Voltaire Consultants has
gained significant exposure to these problems during the implementation
of numerous data warehouses. They can offers a
neutral and balanced QA approach starting earlier rather than later,
resulting in a more timely delivery and realistic customer expectations
due to bottlenecks being identified early on.
Reassuring correctness and completeness
An increasing tendency can be seen towards internal and external
requirements being posed on the distribution of information being
complete and reliable. Accountants want to be proven that all
information distributed inside and outside the company, or serving as
input for other systems, is in fact accurate and correct.
These requirements put heavy demands on the design and operational use
of your Data Warehouse system. Not only because the information
residing in the legacy systems are stored in a very different way than
it is stored in the Data Warehouse or presented in the reports. Also,
data can be lost during load, scheduled routines can partly fail,
network connections can be down, etc. Moreover, proving the correctness
of information being calculated/derived or deducted from other
information can be quite tedious.
Voltaire Consultants has gained a lot of knowledge with building
extensive control mechanisms that reassure the completeness and
correctness of information according to accountants standards and
internal or external regulations (like Sarbanes-Oxley (SOx) and Basel).
Other
Expertise
Voltaire Consultants has considerable experience in the implementation
of the Operational Data Store (ODS). Organizations and companies with
similar information stored across disparate systems as a result of
mergers and acquisitons, require an integral overview of such data
which is consumed, standardized and passed on to down-stream systems
such as the Corporate Data Warehouse, CRM and other
applications. Voltaire Consultants chooses expressly for the
data oriented approach for the ODS.
We also have experience in implementing Balanced Score Card systems.
The challenge here is to develope a representative and usable measuring
system that will satisfy the organisation as well as shareholders.
Revenue Assurance tasks can be carried out so as to detect any Revenue
Leakage. First class understanding and knowledge of the relevant sector
and business processes as well the software usage are a must
in order to be successful. Voltaire Consultants fulfills these
requirements with respect to the telecomsector.
Operations Research / Forecasting and Simulation solutions are services
that Voltaire Consultants can provide. We are also experts in high
volume / high performance scaleable solutions and understand the
complexities of Very Large Database design.
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