Reference no: EM131440814

Background:

As the corporate benefits of open-book manogement spreads, so do the enhanced benefits of business intelligence (Bl), particularly in the financial services industry By Paul Barter I t is no wonder. Open-book management and BI are pillars of the democratization of data: knowledge is power and more knowledge workers in the organization with the power to make data-driven decisions means greater profits and efficiencies. Open-book management is based on the idea that employees at all levels in the corporate hierarchy require relevant intbnnation about the company in order to make the most accurate decisions possible at all dmes. This ensures employees at all levels become more knowledgeable about how their position fits into the financial plan of the company. In tbe early days of business intelligence (two or three decades ago), the high cost of technology and tbe bierarchal nature of corporate culture restricted the knowledge and power of BI to a select few at the top. But things have changed due to the plummeting cost of technolog)' and the flattening out of corporate organizations. According to research firm IDC, 2007 saw the beginning of a new wave of investment in BI opplications by Canadian organizations. IDC also predicts that over the next 12 months Canadian businesses will devote nearly $200 million towards the deployment of BI software to harness structured and unstructured data. Think about it: in a bierarcbal top-down organization, it is not essential for a plant fioor worker to make data driven decisions, or even a teller at the bank window handling simple deposits and withdrawals. What is expected and needed is for that worker to do his or her job of installing and inspecting gadgets or taking in or issuing relatively small amounts of cash. Now, think ofa bank or other financial institution with operations in five or ten time zones with a worker deciding whetlier to lend, move or buy money all over tbe world. It is imperative that worker bave the best, real-time data available. Changing to meet demands Businesses have clearly evolved, particularly in the Canadian economy, and today the corporate focTJS on cost savings has in many cases been re-prioriti?.ed towards growth and imiovation and tbe resources, people and data that enable that growth. Top-line growth can be enabled through better understanding a customer's needs by reaching out and sharing data through BI applications. Witb the spread of data through an organization, the roles of CEOs, CFOs and otlier senior executives have also changed. Today these senior-level decision makers operate more with a "coach" mentality, guiding and inspiring employees by clearly defining metrics and striving to miike information accessible and transparent to employees at all levels. To belp them become effective coaches, executives are looking to new technology. Banking, finance, and investment companies operate in an industry that is perhaps more diverse and unpredictable than any other. With these industry demands comes the need for new and more sophisticated integrated tools that support everyday work. BI technologies help companies obtain a complete perspective of business performance across the organization and, at the same time, integrate infonnation across different operating systems and business fimcdons. This approach to infomiation sharing provides employees witb a more strategic and forward-looking view on business objecdves. CMA MANAGEMENT 3 8 March 2008 A new wave of technology Until recently, the adoption of Bl solutions was limited by its complexity and the need for solutions to span multiple infomiiidon stores in order to produce relevant results. But this has changed. According to research firm IDC, 2007 saw the beginning ofa new wave of investment in BI applications by Canadian organizations. IDC also predicts that over the next 12 months Canadian husinesses will devote nearly $2iX) million towards die deployment of BI software to harness structured and unstructured data. l^raditionaJ BI has focused on information delivery in the fonii of dashlwards or reports, where the solution itself has lx:en a non-critical component. However, IDC's research indicates tliat the market is shifting toward operational BI, where the solution is deployed to support collalmration across the liusiness. Today's BI tools such as iVlicrosoft Perfbnnance Point Server 2007 facilitate an open-book style. They're designed to touch everyone involved in an organization, at all levels, taking advantage of software like i\4icrosoft Office Excel. These BI tools can help organizations realize their ftill potential through three key capabilities: Monitoring/Scorecarding: Scorecarding helps financial professionals detennine what kinds of data are being measured and how to map them back to die organization's growtli. This is a macro view offering many people access. Analyzing: The process of financial reporting and analysis is all about digging deeper. For example, the preparation of financial reports requires access to a broad set of information wliich is sometimes buried deep in various documents and systems. To use data locked in a document or spreadsheet, it historically would have heen manually entered, copied, and may have required recalculation. By integrating a BI solution, financial organizations can ask the critical questions around performance projections and forecasted results. With the right solution, what may have originally taken weeks to pull together can be done much faster while being consistent and accurate. Planning: To maintain profitability in the face of escalating risks, financial finns need to manage conflicting priorities, tackle compliance issues quickly, maximize operational efficiency, growth, and product offerings, and serve customers more eiifectively than the competition. BI can facilitate tremendous improvements in the way a company plans, budgets and forecasts by accelerating these functions and helping the organization better align with critical resijurces. With die coiTect tools for planning and budget analysts, companies are then able to centrally manage the planning process, making infomiation not only more accessible but more standardized. Financial service organizations need to adapt and harness the advanced BI tools available in the marketplace to meet the growing husijiess demands. Senior executives liave learned to adapt the business structure and processes fVjr iiifonnation sharing. The question remains; are businesses taking full advantage of technology to support its evolution, demands and objectives?

Question:

Open Book Management:

What would be the summary of the entire article list above in one's own words?