Business Intelligence - Methodology

1. Business Intelligence - Methodology Dror Har BI/DW Practice Lead IBM BCS, Israel

2. Things I thought to talk about: • IM versus DW versus BI versus KM • IBM BI Methodology • Business Cases: • Business Case (FS) • Data Modeling (Telco) • Q&A

3. Changes In IBM!!! PwC Consulting IBM Global Service Business Innovation Services IBM Business Consulting Services

4. How We’ll Operate Sectors/Industries Communications Distribution Financial Services Industrial Public SMB GRP GRP GRP GRP GRP GRP Strategic Change CRM Supply Chain and Operations Solution Areas Financial Management Human Capital e-BI BTO

5. BCS Israel BI/DW Group • BI/DW group of ~40 people • Offerings: • Full implementation (…, BI Programs & BI outsourcing) • Phase Zero (Analysis and High Level Design) • Roadmap / Vision (Business, Applications & Technical) • Business Applications – “Unlocking the Value” • Improvement Package • Ongoing Development and Support

6. Skills Business Analysts Information Analysts Technical Architects Data Modelers ETL architects and programmers Front-End programmers DBA’s Program and Project managers BCS Israel BI/DW Group (Cont.)

7. BCS Israel BI/DW Group (Cont.) The Israeli BI/DW gained world wide recognition

8. IM versus DW versus BI versus KM

9. IM / DW / BI / KM • Structured Data: • Internal DB • Files • External Information • Unstructured data: • Documents • Intranet pages • Library • Notes / Email BI / DW KM Information Management

10. BI Methodology

11. Implementation Analysis Design Construction Process Change Integration Businessand ProcessAnalysis Training Front-End Application Design Front-End SystemConstruction Data Design Project Initiation Information Analysis Rollout Post Implementation Review Database Construction ETL Design SystemandIntegrationTesting ETLConstruction Technology and Tools Definition TechnologyArchitecture Design Documentation Project Management & Quality Assurance Our Information Management Methodology

12. Analysis and Design Phase Bus. & Systems Analysis Planning and Definition Business Use and Vision Business Track Business Analysis Identify Business Opportunities High-Level Application Functionality High-Level Data Model Action Plans, Budget, and Architecture & Information Based Application Suite Info. Track Information & Organisation Analysis Determine Key Performance Measures Finalize Priority & Vision High-Level Extract and Mapping Technology Track Inventory & Systems Assessment Systems Vision for Business Needs Architecture & Management Strategy Project Management and Quality Assurance

13. The Business Track Planning and Definition Business Use and Vision Business and Systems Analysis Submit Plan, Budget, and Architecture Determine High-Level Functionality Identify Business Opportunities Perform Business Analysis Finalize Business Priority and Vision • Key business objectives / problems / opportunities • Information usage and objectives linkage • Business requirements • Best practices comparison • Value chain analysis • High-level business case for application suite • Application definition tied to business requirements • High-level front-end and analytical functionality • Process impact analysis • Initial source-to-target mapping of existing reports to planned data warehouse toolset • Sample analysis of major reports using desired report template Project Management and Quality Assurance

14. The Information Track Planning and Definition Business Use and Vision Business and Systems Analysis Build High-Level Data Model Conduct Information Analysis Determine Key Performance Measures (KPM) Submit Plan, Budget, and Architecture Finalize Business Priority and Vision Build High-Level Extract and Mapping • Source systems definition and mapping • High-level data entity description • Data access and technology requirements matrix • Source system data to target information map • Source-to-target gap analysis • High-level target data model with key facts, dimensions, and attributes. • Source-to-target mapping between existing fields and high-level data model • Business rules listing • High-level extract, transform and load (E.T.L) algorithm • List of existing key performance measures • Listing of suggested performance measures by subject / application area • Tie between performance measures and business objectives / problems / opportunities • Metadata management strategy Project Management and Quality Assurance

15. The Technology Track Planning and Definition Business Use and Vision Business and Systems Analysis Systems Vision for Business Needs Inventory & Systems Assessment Architecture & Management Strategy Submit Plan, Budget, and Architecture Finalize Business Priority and Vision • Technical documentation of current environment / initiatives • Identification of potential problems and opportunities vis-a-vis DW program • Technical architecture drawing with listing of all required components • Tool requirements matrix (Platforms, Front-End, E.T.L engine, DataBase Etc.) • Finalized technical architecture overview • Capacity and sizing estimates • Hardware & communications requirements • Confirmed toolset: Platform(s); Front End; Engines; E/T • Training, integration and support requirements Project Management and Quality Assurance

16. The Project Management Track Planning and Definition Business Use and Vision Business and Systems Analysis Submit Plan, Budget, and Architecture Finalize Business Priority and Vision Project Initiation • Kick off documentation • Confirmed project objectives • Team members listing • Framework for workshop and meeting schedule • Project plan & timetables • Executive Summary • Final overall architecture: business; information; technical • Integrated action plan: Budget; Timetable • Project implementation structure: roles & responsibilities; team organization; management structure • Finalized project charter • Priority / value analysis of deployment options • Plan for information-based application(s) Project Management and Quality Assurance

17. Implementation Analysis Design Construction Process Change Integration Businessand ProcessAnalysis Training Front-End Application Design Front-End SystemConstruction Data Design Project Initiation Information Analysis Rollout Post Implementation Review Database Construction ETL Design SystemandIntegrationTesting ETLConstruction Technology and Tools Definition TechnologyArchitecture Design Documentation Project Management & Quality Assurance Our Information Management Methodology

18. Detailed Workplan Detailed Workplan Conduct Business Analysis • Purpose/Benefits • Validate and articulate the business needs on two fronts: (1) Problems facing the business, and (2) Opportunities for the business • Align the information-based sales and marketing initiative with the overall organization strategy and plan • Deliverables • M.O.S.T. model describing strategy • Linkage between information usage and business problems/opportunities • IBM “best practices” comparison in problem/opportunity areas • Client’s target area value chain analysis • Key Activities • Understand business strategy • Interviews/workshops with all levels of decision support users: • senior management; • middle management; • front-line users. • Build value chain of target business processes to be impacted by system • Determine key impact points of information on business decisions • Codify business needs along functional lines for example: reporting capabilities, decision-support capabilities, analytical applications, simulations, on-line operational feedback loop

19. Epoch PartnersInvestment Bank

20. Equity Offering Management Research Issuer Relationship Management Marketing - New Business Mergers & Acquisitions Initial Public Offering Secondary Offering Value Chain - Main Activities • Analyze Online Partners investors • Present Epoch capabilities • Demonstrate attractiveness of retail market • Identify and analyze merger & acquisition opportunities • Bring equity offering information to potential retail investors • Provide issuers effective demand curve data • Help issuers set appropriate price • Help Online Partners allocate shares • Manage directed shares program • Track post transaction share activity • Conduct fundamental research on all clients • Conduct fundamental research on selected industries and covered stocks (comparables) • Publish research on Web • Nurture existing relationships • Identification of business opportunities • References

21. Equity Offering Management Research Issuer Relationship Management Marketing - New Business Mergers & Acquisitions Initial Public Offering Secondary Offering Value Chain - Critical Success Factors • Knowledge of Online Partners’ investors • Increased availability of offerings for retail investors • Credible profile of potential buyers • Presentation of equity offering information to retail investors • Management of conditional offers to purchase across large retail investor base • Creation and analysis of demand curve • Credible pricing recommendations • Credible recommendations for allocation to potential buyers • Management of directed shares program • Timely tracking of post transaction share activity • Recognized for best available knowledge of clients • In-depth knowledge of industry and selected industry comparables • Insightful research analysis and reports delivered via Web • Ability to track research impact on retail investor base • Client awareness of stability of retail base • Client awareness of investor activity • Advice that positions clients for long term success • Willingness of existing clients to provide meaningful references

22. Equity Offering Management Research Issuer Relationship Management Marketing - New Business Mergers & Acquisitions Initial Public Offering Secondary Offering Value Chain - Key Information Req. • Analysis of investors: • holdings • trading patterns • demographics • money flows • Analysis of comparables issues: • trends • cross holdings • past IPO demand and allocations • Creation and analysis of demand curve (prior to IPO): • real time • historical analysis • Analysis of allocated shares distribution (during IPO) • Trading activity for first 30 days (after IPO) and afterwards as required • Impact of research publication: • hits on Web page • trading effect • Analysis of clients: • investor base • trading patterns • Analysis of comparables: • investor base • trading patterns • Research impact: • trading effect • business events (triggers)

23. Equity Offering Management Research Issuer Relationship Management Marketing - New Business Support for Detailed Information Req. Activity Data Warehouse Support Information Requirement • Analyze Online Partners investors • The Data Warehouse will provide query and analysis tools that allow the Investment Bankers to demonstrate an in-depth knowledge of the demographic characteristics of the retail client base of the Online Partners (“investors”). The information will be both general (e.g., number of investors, median age, median income level, median account size of all clients who invest more than 10% of their accounts in technology stocks) and detailed (e.g., same information for those investors who own or have owned, within the last six months, comparables a, b, and/or c). • The Data Warehouse will provide tools that allow the Investment Banker to demonstrate in-depth knowledge of the holdings and trading patterns of investors in the client’s industry and in comparable stocks (e.g., the box positions of comparables a, b, and/or c as of month-end for the last 12 months, the aggregate current box position, the net purchases and sales for each month, the trading for each of the 5 days immediately following their latest earnings announcement, etc.). • Provide information about gross money flows into and out of investor accounts • Categorize investor information by IPO eligibility as determined by each Online Partner • All of the information provided will be correlated with designated business events1 • Investor demographics (monthly) • geographic location • gender • income level • education level • age • investment sophistication • account type (cash, margin, retirement) • account tenure (how long opened) • IPO eligibility • channel preference (web, telephone, other) • Account Summary (daily) • account size (total assets) • portfolio composition (cash, long / short position in equities, mutual funds, bonds, options, selected industries w/i equities [e.g., technology]) • Holdings (daily) • ticker • shares owned (both long and short positions) • holding period (how long owned) • cost basis • how acquired (IPO, aftermarket) • Trading pattern (daily) • frequency of trades (relative to business events) • shares acquired in IPO • shares acquired in aftermarket • Money flows (weekly) • cash deposits / withdrawals • available cash and cash equivalents • available buying power • Issues (as defined in “Demonstrate attractiveness of retail market” activity) 1 See “Epoch Value Chain - Business Events” (p. 7)

24. Equity Offering Management Research Issuer Relationship Management Marketing - New Business Support for Detailed Information Req. Activity Data Warehouse Support Information Requirement • Help issuers set appropriate price • The final demand curve data (information about the volume of interest in an IPO at various price levels) will be provided by the Epoch Demand Repository, which is outside the scope of the Data Warehouse project • The Data Warehouse will provide query and analysis tools to correlate the final demand curve data with investor demographic characteristics and historical trading patterns. By analyzing key information (e.g., account size, cash availability for additional investments, trading patterns in comparables, etc.), Epoch can present the issuer with probable behavior patterns for the investors at different price points on the demand curve • Investor demographics (as defined in “Analyze Online Partners investors” activity) • Account Summary (as defined in “Analyze Online Partners investors” activity) • Holdings (as defined in “Analyze Online Partners investors” activity) • Trading pattern (as defined in “Analyze Online Partners investors” activity) • Final demand curve data • ticker • date • demand curve detail • price range • total offers to purchase / indications of interest

25. Equity Offering Management Research Issuer Relationship Management Marketing - New Business Support for Detailed Information Req Activity Data Warehouse Support Information Requirement • Nurture existing relationships • The Data Warehouse will provide query and analysis tools that allow the Investment Bankers to continue to demonstrate an in-depth knowledge of the demographic characteristics and holdings and trading patterns of investors who own the client’s stock (e.g., median age, median income level, average account size, investment maturity, holdings of the client as of month-end for the last 12 months, aggregate current position, net purchases and sales for each month, trading activity for each of the 5 days immediately following significant business events, etc.). • Investor demographics (as defined in “Analyze Online Partners investors” activity) • Account Summary (as defined in “Analyze Online Partners investors” activity) • Holdings (as defined in “Analyze Online Partners investors” activity) • Trading pattern (as defined in “Analyze Online Partners investors” activity) • Money flows (as defined in “Analyze Online Partners investors” activity) • Issues (as defined in “Demonstrate attractiveness of retail market” activity)

26. July 2001: Goldman Sachs buys Epoch Partners forapproximately $250M. Goldman Sachs CEO’s news release: “ I am Pleased to acquire……..for 2 reasons. First it provides access to the valuable retail investment customer base andmost important Epoch’s customer and marketinginformation analytics capabilities are the most valuableasset we could find in today’s market.”

27. MTNCellular CompanyData Modeling

28. Q&A