Innovation and Business Intelligence

1

• Innovation and Business Intelligence

2
Contents
June - July 2005 - the third edition of
Innovation and Business Intelligence
Course organized by Cherbourg School of
Engineering with the support of CRITT BNC,
RDT-BN, ADIT  and CORDIS
3
Contents
Innovation and Business Intelligence

• Innovation vs Information
• From simple Information Research, through
  Information Watch to BI
• Business Intelligence and its importance for
  modern organizations

4
Innovation
Different types of Innovation

• Introduction of a new product or qualitative
  change in an existing product (service)
• Process innovation new to an industry
• Entering new markets
• Development of new sources of supply
• Changes in industrial organization

Source OECD (1997), the Oslo Manual Proposed
guidelines or collecting and interpreting
technological innovation data, Paris, OECD
5
Innovation
Why do we have to innovate?
6
Innovation
Innovation uncertainty and necessity
As an organization, can I innovate without ANY
risk? Navigating an uncertain sea.... ... on a
necessary boat
7
Innovation
What happens if we dont innovate?
Customers stop buying Sales drop Revenues
drop Shareholder return drop Stock price
drop Key employee leave
8
Innovation vs Information
Information
9
Innovation vs Information
WHY?
Whenever you see a successful business, someone
once made a courageous decision Peter Drucker
10
Innovation vs Information
Information Highways
11
Innovation vs Information
The Right Information ?
12
Innovation vs Information
Is it easy? Can that be dangerous?
Everything that anyone could ever want to know is
usually there somewhere...
13
Innovation vs Information
Importance of Information
A critical component for the success of the
modern organization is its ability innovate and
to take advantage of available information. This
challenge becomes more difficult with the
constantly increasing volume of information, both
internal and external to an organization. As
more and more organization are becoming
knowledge-centric the need for access to the
right information increases.
14
Importance of Information
Evolution of the concept
Business Inteligence
Strategic Information Watch
Technology Watch
Scientific Technological Information
Documentation
15
Information Watch
Information Watch (definition)
Method used by an organization to identify
strategic elements in a flow of information. No
spy, no state-of-art, information watch is a
guide for managers to solve problems. Eric Werner
Paul Dagoul
Technology Watch observation and analysis of
scientific, technologic and economic environment
of the organization to identify threats and
development opportunities. François Jakobiak
16
Information Watch vs Business Intelligence
Information Watch vs Business Intelligence
Information Watch (IW) is a process made of
several steps, starting with the needs
assessment (information watch topics definition)
and ending with decision and action. IW deals
with search and information collection, since
Business Intelligence (BI) adds more notions to
this concept. BI Information Watch
information protection lobbying information
protection ability to preserve information
related to the companys knowledge, know-how and
strategic choices against negligence and
mailicious intent
17
Business Intelligence
Business Intelligence
Business Intelligence (BI) is the process of
in-depth analysis of detailed business data.
Includes database and application technologies,
as well as analysis practices. Sometimes used
synonymously with decision support, though BI
is technically much broader, potentially
encompassing knowledge management, enterprise
resource planning, and data mining, among other
practices.
18
Business Intelligence
Business Intelligence (definition)
BI represents a set of coordinated actions of
search, analysis, circulation and protection of
information. This information is legally
collected and should be useful to the economic
actors for their individual or collective
business strategies.
19
Business Intelligence
Business Intelligence
Term BI is also used as a broad category of
application programs and technologies for
gathering, storing, analyzing, and providing
access to data to help enterprise users make
better business decisions. BI applications
include the activities of decision support, query
and reporting, online analytical processing
(OLAP), statistical analysis, forecasting, and
data mining.
20
Business Intelligence
Is Business Intelligence for all?
BI is designed only for big companies!
It is not true, because setting a heavy
structure is unnecessary! The BI process can be
scaled to the organizations size, its human and
financial resources. BI process can focus on
priority topics.
21
Business Intelligence
Importance of Business Intelligence
BI, if implemented properly within an
organization, provide decision-makers with a more
effective method of working with information in a
way that is relevant to them. By transforming
musty mountains of raw data into accurate,
relevant and useful information, BI results in
better decision-making.
22
Business Intelligence
BI helps organizations being more reactive

• The foreseeable effects of successfully
  implemented BI are
• time saving, improved information aquiring
• improvement of (human non-human) network usage
  
• lower costs of information aquisition
• changes of attitudes (among staff)
• But dont expect immediate or short-term results!
• BI is a long-term process!

23
Business Intelligence
Organizing a BI process
The right information What are the elements to
return? the first step of a BI process Time
Being informed on time set up the
procedure The risks Assess them information
usage
24
Business Intelligence
Organizing a BI process
Implementing a BI process is a long-term
plan! Take a professional project approach and
provide the project with all necessary
resources. Assure
continuity!
Anticipate and estimate the costs (e.g.
information acquiring costs) and assess the
effects (operating reports) return on
investment. And dont forget the human element of
Business Intelligence!
25
Thank you for your attention! Contact
catarinapydzinska_at_spi.pt www.spi.pt