Business Intelligence

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Business Intelligence
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Business Intelligence

• A set of technologies and processes that use data
  to understand and analyze business performance
  (Davenport and Harris, 2007).
• Business information and business analyses within
  the context of key business processes that lead
  to decisions and actions and that result in
  improved business performance (Williams and
  Williams, 2007).
• Business intelligence is the use of information
  that enables organizations to best decide,
  measure, manage and optimize performance to
  achieve efficiency and financial benefit (Gartner
  2007).

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Business Intelligence
Business Information
Business Analyses
Business Decisions
In the Context of Core Business Processes
Increased Sales,Reduced Costs, andIncreased
Profits
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Extent of BI Adoption
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Analytical Application Domains
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Number of Users per Application
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User Types
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Application Platforms
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Report Interactivity
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Examples

• Western Digital uses BI to better manage its
  inventory, supply chains, product lifecycles, and
  customer relationships. BI has enabled the
  company to reduce operating costs by 50.
• Capital One uses BI to analyze and improve
  profitability of its product lines as well as
  effectiveness of its business processes and
  marketing programs.
• Continental Airlines invested 30 million in BI
  to improve its business processes and customer
  service. Continental says it has reaped a 500
  million return.

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BI Drivers

• Abundance of data
• ERP Systems
• Inexpensive storage
• Ease of collection
• Network infrastructure
• Web technologies
• Mature data warehouse technologies
• Powerful and easy to use analytical software
• Need to squeeze as much as possible from business
  processes
• Recent Accenture study that found that nine in 10
  senior executives at Fortune 1000 companies place
  strong analytical and business intelligence
  capabilities at the top of their list in
  preparing them for their biggest challenge ahead

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What does BI Include?

• Data warehouses, data marts
• Reporting, querying
• Dashboards, scorecards
• Forecasting, statistical analysis
• Simulation, optimization models
• Measurement
• Process reengineering
• Business Process Management (BPM)

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BI and Analytics
Whats the best that can happen?
Optimization
Predictive modeling
What will happen next?
Analysis
Competitive Advantage
Forecasting/extrapolation
What if these trends continue?
Statistical analysis
Why is this happening?
Alerts
What actions are needed?
Query/drill down
Where exactly is the problem?
Access and Reporting
How many, how often, where?
Ad hoc reports
Standard reports
What happened?
Degree of Intelligence
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Corporate Information Factory
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Closed Loop Analytical Process (Vesset, 2003)
Track
Analyze
Analytical
Transaction-Oriented
Model
Act
Decide
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Failures

• Many BI initiatives have failed to live up to
  their hype
• A recent survey in the UK found that 87 of BI
  projects dont live up to expectations
• Nearly a quarter of BI projects intended to
  improve management decision making are going over
  budget.
• A fifth found that data failed to reveal
  important information, and only half said that
  end-users were satisfied with the system.

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Reasons for Poor Performance

• Business value is not built into the project from
  the beginning
• Many projects are led by IT and thrown over the
  wall to users
• Even when business users are involved, little
  thought is given to how the project will effect
  business processes
• Most technical details are well understood but
  often issues of data quality and integration are
  not given sufficient attention
• Failure is rarely due to technical issues

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Value Creation
Project Timeline
Many BI Initiativesstop here!
But they need to gohere!
BI Asset Creation
BI Value Capture Phase
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BI Preconditions for Value Creation
Strategic Alignment
Process Engineering
Change Management
Business Value of Business Intelligence
BI Technical Development
BI Project Management