Microsoft Data Insights – Digital Transformation with Power BI for the CEO

I’m holding a series of training courses around the UK, more details will be published. In the first instance, on 15th September, I’ll be holding a day-long practical workshop on Working with Business Data for Busy Executives in SME Organisations in Hertfordshire, England. The cost will be £100 pounds plus VAT, food and workshop materials included, and you can also network and share experiences with other attendees who will also be running businesses, like you.

I don’t believe in a ‘stack ’em high’ approach, which doesn’t give a pleasant experience for learning. So, classes will be restricted to 12 people only, unless otherwise stated. This means that you will get a good amount of attention.

I’m doing the Executive MBA at the University of Hertfordshire Business School, I’ve also been a NED (Non Executive Director) for PASS, who are based in the United States.  As I’ve been spending time leading organisations, I’m keen to share this knowledge and expertise with the community from a data-driven, data leader perspective. The following blog post will give you a flavor of the workshop. along with some of my thoughts on Microsoft Data Insights Summit. If you have any questions, please pop them in the comments box and I’ll read them from there.

Here are my slides from Microsoft Data Insights Summary, combined with some of the slides from the keynote by James Phillips, held in June 2017.

Slide1

For those of you who know me, you’ll know that I have extensive experience in Tableau as well as Power BI. However, most of my consulting data visualisation is in Power BI suite of products. Why is that?

Tableau is wonderful at data visualisation, as is Power BI, of course. However, for enterprise customers, where I’m building a data warehouse, I prefer having analytics closer to the data source, perhaps in a data warehouse or data lake. I like to think about the overall business intelligence architecture. Tableau is superb at data visualisation and it also cleans and integrates data, but to a much lesser extend, which is why they partner so well with Alteryx. I don’t like cleaning data or doing repeatable analytics so close to the end reporting layer and business people seem to want to do it there, without thinking of issues such as robustness, repeat-ability and longevity in the analytical formula that they are creating. I prefer to hand off clean data and analytical formula to the reporting tool as far as possible.

I’m not thinking about Business Intelligence in terms of a spot solution for data visualisation or reporting, for example. I’m looking at the whole canvas. I prefer to clean the data and have it all fixed closer to the source, so that I can get the same number for the same report, regardless of the reporting technology that I use. With Power BI, I can stay within the Microsoft playpen of technologies. I do note however that Tableau Server is in Azure and if you are looking at analytics, that’s another option so that the analytics formula isn’t contained in disparate workbooks. Instead, they are published to Tableau Server and people can should download their workbooks there, for ‘one version of the truth’.

As an external consultant, I work with Power BI because I think it has an astonishing reach technically as well as geographically. Some of my customers are global and I really need the certainty of global resiliency.. Gone are the days when Microsoft had a lot of disparate reporting technologies that didn’t talk to one another very well and we had lots of different interfaces that used to overlap. Customers got really confused about what to use. For example, do you put your KPIs in Analysis Services, or in Reporting Services? Now:

The answer is always Power BI! Take a look:

Microsoft Data Insights Summit

Apart from Data Visualization, what is Power BI useful for?

Power BI is particularly useful for:

  • businesses that are acquiring other businesses and they need somewhere to put the data, and keep the business running in the meantime
  • cost savings
  • GDPR – if you don’t know what this is, you need to contact me to find out more. Microsoft are in the forefront of working with customers to make sure that they are compliant.

Do I still see Tableau?

Yes – some of my customers don’t need public cloud because they pop up their own data centres if and when and where they need them. So, for them, they tend to stick with what they know, and what works for them.

What Business Intelligence tools do I see less of?

I see Qlikview less and less, as customers look to align their reporting and they can replicate their Qlik scripts in SQL Server and SSRS.

I also don’t see Pyramid Analytics appearing much, and I don’t get asked often about them. According to the Gartner report, 2017 may represent a critical period for the company and, rightly or wrongly, the Gartner Magic Quadrant does carry enormous weight when customers are looking for solutions. With many solutions, customers don’t use the full range of features contained in any technical solution, and Pyramid are going to have to work hard to explain how they compare / compete with the Power BI on-premise solution, which is going to go from strength to strength.

However, for others, particularly in the SME market, the Azure offering is extremely compelling. Power BI and Azure together mean that you can focus on the business, rather than working on the technology to support the business. I can also see that more and more data is going into the cloud, and I am part of projects where I am doing exactly that – cloud business intelligence. Cloud Business Intelligence is a real growth offering for me and I plan to keep being ahead of the curve.

Microsoft Data Insights Summit

Are people using Power BI or is it simply good Microsoft Marketing?

People are using it, yes. Here are the numbers, produced by James Phillips during the Power BI Keynote: Microsoft Data Insights Summit

Power BI and the C-Suite

Given it’s reach within the organisation, Power BI can reach the C-suite level as well as the rest of us, in the organisation. Before continuing, it’s probably worth reading about linear vs exponential business growth models e.g. HBR.

 

You can watch the video below, or read on for some of the headlines:

Here are some headlines:

Gross and Net Profit

Net profit

Progress Towards Targets

Revenues and revenue growth rate

Expenses

Employee Engagement

Let’s get started!

Gross and Net Profit

Slide18 Why do CEOs care? As part of the Digital Transformation process, the CEO must develop a guiding philosophy about how he or she can best add value whilst showing ongoing strategic assessment and planning. However, it is difficult for them to allocate time to the collection, cultivation and analysis of data. Instead, they need to focus on strategic decisions, and they need data to run their business, to understand how their customers behave and measure what really matters to the organization. Power BI can help to bring clarity and predictability to the CEO, and this session is aimed at CEOs, and those who support them with data, in order to see how they can be empowered by Power BI, and see it as a key asset within the organisations short and long term future. Slide16

Net Profit

This goes without saying, but keeping an eye on net profit at all times is essential for business leaders. This might be visualized as a line graph or quarterly chart. However you decide to represent the data, it needs to provide detailed, regularly updated information. You can get added value by allowing this data to be broken down.
With Power BI, you’d be able to tap your chart and see real-time data on profits by region, product type or team. First you calculate your gross profit, then your expenses, subtract expenses from gross profit, and you have net profit.

Calculate Gross Profit first:
Gross profit, also called gross margin, shows you how much money you made from selling a product.
It subtracts the selling price from your wholesale cost to calculate the difference. It does not take into account expenses from rent, personnel, supplies, taxes or interest. Gross profit is a required step toward calculating the company’s income or net profit.

Progress Towards Targets

You can use EXPON.DIST function in Microsoft Excel to help measure progress towards your targets.
Use EXPON.DIST to model the time between events, such as how long from the order placement takes to actual delivery. For example, you can use EXPON.DIST to determine the probability that the process takes at most 1 minute.

Revenues and revenue growth rate

By being able to instantly visualize how fast (or otherwise) your business is growing its revenues, it’s much easier to find out what’s going right and what’s going wrong. Need to lose some dead weight? Invest in a growing department? Respond to a new trend among consumers? Tracking your revenues closely is crucial and will help with those decisions. A line graph would again be particularly clear in this instance.

Slide22 Slide21

Think of a Rubik’s cube – people instinctively know how to use them, and to arrange the cube into colors. We also interact with colour and data in the same way; intuitively and quickly.

Expenses

Whether it’s staff, machinery, IT or property, your expenses are one of the biggest drains on your long term success. A dashboard can break these down instantly so you can see where your biggest outgoings are, and then make decisions about what’s costing too much.

Revenue per employee
Revenue per employee is a little like Return on Investment. Are your people actually making enough revenue to justify hiring them? Are they working at 100% capacity or is there room for them to work more, instead of employing new workers? A revenue per employee dashboard helps you make these choices rationally.

Employee Engagement

Measured by an anonymous survey, employee engagement is a key BI factor for any CEO. If your people are motivated, enthusiastic and giving their work 100%, you can be sure your company will grow. By contrast, unengaged colleagues will be a detriment to productivity. It’s essential to keep regular tabs on how employees are feeling about their work.

 

Summary

As part of the Digital Transformation process, the CEO must develop a guiding philosophy about how he or she can best add value whilst showing ongoing strategic assessment and planning. However, it is difficult for them to allocate time to the collection, cultivation and analysis of data. Instead, they need to focus on strategic decisions, and they need data to run their business, to understand how their customers behave and measure what really matters to the organization.
Power BI can help to bring clarity and predictability to the CEO, and this session is aimed at CEOs, and those who support them with data, in order to see how they can be empowered by Power BI, and see it as a key asset within the organisations short and long term future.