Business Intelligence:
A Key to Enhanced Profitability
ELFA Annual Convention
San Antonio, Texas
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 Our Moderator
Paul Bent
Senior Managing Director
The Alta Group, LLC, Long Beach, CA
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 Our Panelists
Michael Donnary
Senior Manager / Banking and Asset Finance
Capgemini, Rosemont, IL
Scott Thacker
Chief Operating Officer
Ivory Consulting Corporation, Walnut Creek, CA
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 Our Panelists
Richard Ryan
Partner
Invigors EMEA, London, U.K.
James J. McKinney
Head of Balance Sheet Management, Operations & Strategy
RBS Citizens Asset Finance, Chicago, IL
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 Our Agenda
 What is Business Intelligence (BI), anyway?
 The 2011 Business Technology Performance Index (BTPI)
o Key findings
o What’s next for BI?
 What does BI “look” like?
o How does it work?
o Where does it fit in?
 Applying BI analytics in leasing and lending
o
o
o
o
Monitoring performance
Analyzing effectiveness
Modeling and Managing processes
Forecasting trends
 BI databases, resources, and information
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 Our Approach Today
 Interaction with you
o How much do you know about BI?
o What do you think about BI?
o What are your experiences with BI?
 Open discussion – not a lecture
o Everyone’s invited to participate
o Questions, opinions, ideas
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 What is Business Intelligence, anyway?
 Different things for different people
 Internal and external information
 Combines information, reporting, data, and insights
o Verifies / challenges assumptions on which business operates
o May be analytical, supporting evaluation
o May be predictive, supporting planning
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 What is Business Intelligence, anyway?
 Internal
o KPIs/reporting
o Drill down on P&L drivers
o Analyze performance & risks
o Data-heavy analysis
 External
o Market and competitive intelligence
o Growth, opportunity, and trend identification
o Lighter data volume
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 BI – a working definition:
The systematic analysis of internal and external
information to yield insights that can help maximize
a company’s performance, market position,
and profitability.
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 The 2011 Business Technology Performance Index
 9th year for the Report
 Serves as the industry benchmark
for IT and operations direction and
spending
 Represents a summary of survey
responses and an analysis
 Presents insights into the
continuing evolution of technology
in the equipment finance
marketplace
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 2011 BTPI – Key Business Intelligence Findings
 Many organizations have several Business Intelligence tools from
multiple vendors. The situation has become even more complex as the
Business Intelligence tools market has seen massive consolidation.
 A majority of respondents currently aggregate and report data from a
data warehouse or other repository of multiple core applications.
 More than one quarter use no Business Intelligence tool or manually
construct reports from application outputs.
 Key IT initiatives include improvements in customer self service,
controls and compliance and risk management.
While these are not the best of times for the industry,
this year’s responses indicate improvement and optimism -and a more forward-looking approach taken by businesses.
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 Conflicting Priorities: Reduce Cost and Increase Business Agility?
 What are the positive drivers for exploiting information in your
organization?
45%
Many Equipment Finance companies have in place data warehouse and
business intelligence programs. Yet they are failing to see the benefits.
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 So What is Stopping You?
 What are the greatest barriers to an effective BI program in your
organization?
The explosion in information volume often results in inconsistencies between
sources, duplication of master records, and time spent reconciling sources.
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 What’s next for Business Intelligence?
 Many organizations will attempt to address opportunities through a
traditional approach
o Tactical fixes to processes and organizational structures.
o Implementing additional IT solutions.
 A number of organizations have already made good progress
o Transforming themselves into information-centric organizations.
 Rapid and informed decision making is key to success
 The absence of good business intelligence creates the potential for
failure
To be effective and competitive in today’s post-recession environment,
organizations must leverage their business information.
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 How does BI actually work?
 Software systems
o Standalone
o Features embedded in existing software systems
o Mobile apps
 Analytics drawing on existing databases
 Presentation capabilities tailored to user’s needs
 Dashboards, real-time updates, integrated tools, reports
 Focus on management effectiveness
 Streamlining, not adding on
 Simplifying, not complicating
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 What does BI “look” like?
It looks like
financial KPIs
at a glance
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 What does BI “look” like?
It looks like
real time sales
performance
indicators
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 What does BI “look” like?
It looks like
HR stats
on demand
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 What does BI “look” like?
It looks like
trends and
forecasts
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 How does BI fit into your management and IT picture?
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 The BI “Journey”




Monitoring
Analyzing
Modeling
Forecasting
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 Applying BI analytics in leasing and lending (a few discussion points)
 Monitoring performance
o Profitability
– Where do we make our money?
– Can we analyze results by:
» Financial products? Geographies?
» Credit scores? Asset types?
o Sales
– How well is the sales force aligned with the most profitable opportunities?
– How and why do we lose deals?
– Cross selling and up-selling opportunities?
o Marketing
– How do we track conversion rates over time?
– How do customers respond to specific campaigns and adjustments?
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 Applying BI analytics in leasing and lending (a few discussion points)
 Analyzing effectiveness
o Vendors and brokers
– What is our penetration rate?
– How does it correlate to product and price offerings?
o Customers
– Which ones are unprofitable? What factors make them so?
– How can we migrate them to more profitable products?
o What product offerings result in the highest returns?
o Other examples
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 Applying BI analytics in leasing and lending (a few discussion points)
 Modeling and managing processes
o Underwriting
– How can scorecards be aligned dynamically with bad debt experience?
– What is the overall view of each customer relative to our exposure?
o Portfolio
– How will it perform under hypothetical future conditions?
– What provisioning should be consider?
o End of lease
– What end of lease event is most profitable? Under what circumstances?
– How can the highest potential end of lease customers be identified?
o Other examples
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 Applying BI analytics in leasing and lending (a few discussion points)
 Forecasting trends
o
o
o
o
Data mining techniques
Stochastic and predictive analytical methods
Modeling built on parametric assumptions
Availability of large volumes of statistical data
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
 BI databases, resources, and information
 Databases across competitive boundaries
 BI resources and systems
 Further information
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ELFA Annual Convention
October 25, 2011
Business Intelligence: A Key to Enhanced Profitability
Thanks for your participation.
Paul Bent, The Alta Group
Mike Donnary, Capgemini
Scott Thacker, Ivory Consulting
Richard Ryan, Invigors EMEA
Jim McKinney, RBS Asset Finance
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ELFA Annual Convention
October 25, 2011