© 2007 Altera Corporation—Public Ladder of Business Intelligence LOBI™ Jim Cates Vice President and Chief Information Officer Altera Corporation Microsoft.

© 2007 Altera Corporation—Public

Ladder of Business IntelligenceLOBI™

Ladder of Business IntelligenceLOBI™

Jim Cates Vice President and Chief Information Officer Altera CorporationMicrosoft Technology SummitFairmont Hotel San Jose, CAOctober 25, 2007

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation2

Company HighlightsCompany Highlights

Founded in 1983 High-growth semiconductor company;

products include FPGAs, structured ASICs, embedded soft processors, design software, IP, development kits

Publicly traded since 1988 (NASDAQ) $1.28 billion in 2006 sales Market capitalization of ~$8 billion 2,600 employees ~15,000 worldwide customers

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation3

2006 Total$1.285B

Japan23%

Asia-Pacific27%

2006 Revenue by Geography2006 Revenue by Geography

North America24%

Europe26%

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation4

Agenda ObjectivesAgenda Objectives

Introduce the Ladder of Business Intelligence - LOBI™

LOBI is a new, non-technical communication framework that can clearly position the value that technology investment can provide to business.

Demonstrate how the LOBI framework can be used to create a BU/IT Business Value Roadmap that is customer centric.

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation5

Definition: Business Intelligence Definition: Business Intelligence

Business intelligence: 1. Is a process for collecting the relevant data and then transforming

it to actionable information in an enterprise

2. Provides a broad category of applications and technologies to deliver the right information to the right people, at the right time

3. Provides decision makers with insights into markets, competitors, partners, vendors, suppliers, and company performance

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation6

LOBI™ TripleLOBI™ Triple

Business role

Business process Technology

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation7

Business role

Cycle Time to Information (CTI) Cycle Time to Action (CTA)

Finding the BalanceFinding the Balance

Fact Data Information Information Action

© 2007 Altera Corporation—Public

The LOBI™ ModelThe LOBI™ Model

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation9

LOBI and Microsoft Visions are AlignedLOBI and Microsoft Visions are Aligned

Microsoft People_Ready VisionEnable people to anticipate, innovate, and deliver world-class products and

services through enhanced collaboration, integration and analytics

LOBI VisionLOBI is a new non technical

communication framework that can clearly position the value that technology

investment can provide to business.

© 2007 Altera Corporation—Public

What is the LOBI™ Framework?What is the LOBI™ Framework?

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation11

People1. Vision/mission2. Enterprise roadmap3. Process teams

Process4. BRIA5. Process roadmap6. Gap analysis7. Cross functional collaboration

Technology8. Technology architecture9. LOBI level and it budget10. Technology implementation

Circle of SuccessCircle of Success

LOBI framework

PeopleProcess

Technology

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation12

High Tech Business ProcessExpansive ViewHigh Tech Business ProcessExpansive View

Real worldImplicit

UnstructuredCollaborative

Exceptions happenAd hoc

Dynamic Manage the interaction with our customers

Manage our “secret sauce”

Find knowledge rapidly

Collaborate with everyone, get things done

quicklyIntegrate with

our formal business processes

Work anywhere

Easily contact and

communicate with everyone

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation13

People Drive Business OutcomesPeople Drive Business Outcomes

Innovative Products

Profitable Customers

Relationships

High Value Connections

Improved Operations

Work with Others Across

Boundaries

Streamlined Access to

Information

© 2007 Altera Corporation—Public

What is Information?What is Information?

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation15

What is Information?What is Information?

Objective: CTI by business role

ExperienceData correlation abilityCommunication skills

Integrated dataHuman intelligence

Artificial intelligenceInformation

viewValue of information

++

=

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation16

Cycle time to Action

Information/knowledge

Business role

Cycle Time to Information/KnowledgeCycle Time to Information/Knowledge

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation17

Ladder of Business Intelligence

BRIA: Information Defined By BR

LOBI™ Business Intelligence FrameworkLOBI™ Business Intelligence Framework

Facts

L1 Data

L2INFORMATION

L3Knowledge

L4 Understanding

L5Enabledintuition

L6

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation18

Ladder of Business Intelligence DefinitionLadder of Business Intelligence Definition

Objective- Productivity through information delivery by business role and decreased

Cycle Time to Information

Methodology:- Core process definition- User requirements gathering sessions- Industry best practice research

Level 1Facts

Level 2Data

Level 3Information

Level 4Knowledge

Level 5Understanding

Level 6Enabled intuition

S/Sheets

• Sales forecasting• Install base• ERP selection

• Knowledge management• Data mining• Workflow

• Business modeling• Strategic collaboration

Executive insight

• Role-based UI• Customer profiles• BI• DWH

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation19

Ladder of Business Intelligence - LOBI™Ladder of Business Intelligence - LOBI™

Objective:- Improve speed, effectiveness, and efficiency of decision making

Methodology:- Business productivity through reducing Cycle Time to

Information by business role

Level 1Facts

Level 2Data

Level 3Information

Level 4Knowledge

Level 5Understanding

Level 6Enabled intuition

Retrievable organized data

Information views targeted by roleOperational collaboration

Reusable information views

Business modelingBrainstorming strategic collaboration

Break-through visionary thinking

No timely retrievalDisorganized data

Business Role Set, Process Set, Technology Set

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation20

Strategic investments

Value-based IT Investment ModelValue-based IT Investment Model

Tactical investment

Level - 2

Level - 1

Level - 3

Information

Level - 4

Knowledge

Level - 5

Collaboration

Level - 6

Enabledintuition

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation21

Impact of BU/IT InvestmentsImpact of BU/IT Investments

IT Sustain/Utility Investments are investments required to keep the infrastructure operating at advertised availability and performance ( 24X7, 99.9900%). Commodities such as SW, HW, networking, telecommunication, security, support of current installed IT systems, redundancy planning

IT Organic Growth Investments are investments that are required to upgrade, grow, and expand the business in terms of revenue and productivity.

Examples: BPM, increase customer loyalty, automated sales rep, e-business, international reporting upgrade, engineering bug tracking, WW network access

IT Transforming Investments are investments that are required to strategically transform the business, such as cutting-edge technologies that support business strategy that enables competitive advantage and market leadership.

Examples: Acquisition investment, early adopters of new technologies, Web 2.0

Level 5 and 6

Level 3 and 4

Level 1 and 2

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BRIABRIA

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Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation23

Business Role Information AnalysisBusiness Role Information Analysis

Define business role Define 1–10 key questions Information needed to answer questions Data source needed to generate information Do quality data sources exist?

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation24

Role Key questions Information Data sources

Data sourcesexist?

CFO

Do I need external

funding for next quarter?

1) End-of-quarter P&L

2) Projected next quarter sources and costs

3) Projected next quarter usage and return

1) Cash flow projection

2) Utilization of line of credits and costs

3) Projected portfolio budgets

1) Yes

2) No

3) Yes

VP Sales

Do I need to add more

sales people?

1) Market share

2) Sales person efficiency

3) Sales team capacity

4) Product adequacy in meeting market needs

1) Total revenue sales

2) Sales team performance

1) Yes

2) No

VP Marketing

DemographyTAM

Competition

1) What is the demographic profile of region x?

2) What is the TAM for product X?

3) What is our competitors’ market share?

Marketing application Yes

BRIA Role Table - ExampleBRIA Role Table - Example

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Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation25

BRIA TableBRIA Table

1. Business Role

2. 1-10 impactful business questions

3. Information needed

4. Data needed to generate information

5. Processes needed to generate information

6. Information view format by business role

7. Frequency needed (real, near, periodic)

8. Medium for display (PDA, report, etc.)

9. Technology needed

© 2007 Altera Corporation—Public

The LOBI™ Organizational Strategy ModelThe LOBI™ Organizational Strategy Model

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation27

IT Governance ChartIT Governance ChartAccountable execs

Information technologySteering committee

PMOVendor council PMO support

Campaign-demandBU process PM

Tech PM

FinancialsBU process PM

Tech PM

Demand – collectBU process PM

Tech PM

NGS operations council

Directors

It Project manager

HR and self-serviceBU process M

Tech PM

NGS core team (process tracks and members to be refined)

Information delivery (PM), accountable VP

Readiness (PM), accountable director

Extended teams

Advise Resolve Support

Plan, manage, drive

SupportGuidance

Business

Int’l rep

It

SI– onsite – CRM tech

SI– offsite

Accountable VP

Business

It

SI - onsite

SI – offsite

Accountable VP

Business

It

SI - offsite

Int’l rep

Accountabledirector

Business

Int’l rep

It

SI – onsite

SI – offsite

Accountable VP

Apps tech

ArchitectureApps adminDBA

InfrastructureInt’l rep

SI – onsite – Tech leadSI – offsite

ABAPAccountable VP

Acco

un

table

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation28

Enable business objectives through an information-centric organization supported by accurate, consistent, timely, secure, and transparent information, flowing seamlessly across the entire value

chain and optimized for best business value to make impactful business decisionsVision

Strategies

GovernanceCreate a governance structure to guide and provide direction and stewardship to creation, assimilation, and disposition

of informational assets

Information architectureDevelop a well defined

information architecture and models in support of business objectives

Change managementInstitute change management in the company to successfully

implement decisions made by this council

Success metrics Information quality and accuracy

Key processes Data administrationInformation lifecycle management

FY06 strategic initiatives

Enterprise data model; customer and product CDM

Information delivery prioritization and roadmap

for NGS

Policy definition and agreement

“Single version of truth,”avoiding information silos

Scope and charter Policies and procedures relating to structured data/content

Provide direction to investments in informational assets

Clearly defined and accepted data ownership

Business performance management

Information Management Council (IMC)Information Management Council (IMC)

© 2007 Altera Corporation—Public

Process StrategyProcess Strategy

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation30

High Tech Business ProcessTraditional versus Expansive ViewHigh Tech Business ProcessTraditional versus Expansive View

IdealExplicit

StructuredTransactional

Standard PathsFormalRigid

IdealExplicit

StructuredTransactional

Standard PathsFormalRigid

Real worldImplicit

UnstructuredCollaborative

Exceptions happenAd hoc

Dynamic

Real worldImplicit

UnstructuredCollaborative

Exceptions happenAd hoc

Dynamic

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation31

Business Process Architecture Business Process Architecture

Channel management

Demand to cash

Design win to EOL for customer service

New product introduction

Sales Service Marketing Engineering Operations Finance

© 2007 Altera Corporation—Public

How Microsoft Technology Can Help You Climb LOBI™How Microsoft Technology Can Help You Climb LOBI™

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation33

Ladder of Business Intelligence – Microsoft DefinitionLadder of Business Intelligence – Microsoft Definition

Objective- Productivity through information delivery - by business role and decreased Cycle Time to Information

Methodology:- Core process definition- User requirements gathering sessions

Microsoft Office Suite -

Excel, Project

Level 1Facts

Level 2Data

Level 3Information

Level 4Knowledge

Level 5Understanding

Level 6Enabled intuition

Executive insight

• MS Dynamics - Dynamics CRM - FRx report manager

• Knowledge Management - MS SharePoint - Portal, Doc. Mgmt., etc. - Groove – Collaboration - MS Live Meeting

• Strategic Collaboration - SharePoint - DesignWin - Siebel integration

• MS Biz Intelligence - Biz Score Card Mgr - MS Analysis Service - MS Duet - MS Search Engine - eDiscovery

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation34

Microsoft Office Suite -

Excel, Project

Level 1Facts

Level 2Data

Level 3Information

Level 4Knowledge

• Business applications - SAP, Siebel - PeopleSoft, i2 - MS SQL Server

• Knowledge management - MS SharePoint - Wikis - Documentum - NetMeeting, WebEx

•Strategic Collaboration - eRoom - MS SharePoint - DesignWin - Siebel integration

Level 5Understanding

Level 6Enabled intuition

• Business intelligence - SAP BW, Panaroma - MS analysis service - MS duet - Google

Ladder of Business Intelligence – Altera DefinitionLadder of Business Intelligence – Altera Definition

Objective- Productivity through information delivery - by business role and decreased Cycle Time to Information

Methodology:- Core process definition- User requirements gathering sessions- Industry best practice research

Executive insight

© 2007 Altera Corporation—Public

Altera, Stratix, Arria, Cyclone, MAX, HardCopy, Nios, Quartus, and MegaCore are trademarks of Altera Corporation35

LOBI triple: people, process technology

CTI: cycle time to information

Top 10 questions: what are the top 10 questions that need to be answered for a business role?

CTA: cycle time to action

CTK: cycle time to knowledge

BRIA: business role information analysis

Summary: Top LOBI™ ConceptsSummary: Top LOBI™ Concepts

LOBIConcepts

© 2007 Altera Corporation—Public

Jim CatesClimbing the Ladder of Business Intelligence

Thank You!Thank You!

www.happyabout.info/climbing-ladder.php

Contact: [email protected]