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Business Intelligence

Business Intelligence Business Intelligence A set of

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Page 1: Business Intelligence Business Intelligence A set of

Business Intelligence

Page 2: Business Intelligence Business Intelligence A set of

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).

Page 3: Business Intelligence Business Intelligence A set of

Business IntelligenceBusiness

InformationBusiness Analyses

Business Decisions

Management Processes, e.g. Planning, Budgeting,Forecasting, Monitoring,

and Controlling

Revenue GeneratingProcesses, e.g.,Marketing, Sales,

CampaignManagement, and

Channel Management

Operating Processes,e.g., Customer Service,

Order Fulfillment,Billing, Manufacturing,

Logistics, and InventoryManagement

Increased Sales,Reduced Costs, and

Increased ProfitsThat Drive

In the Context of Core Business Processes

Page 4: Business Intelligence Business Intelligence A set of

Extent of BI Adoption

0

10

20

30

40

50

60

70

Potential BI Users BI Users who useregularly

Today

In 3 years

Page 5: Business Intelligence Business Intelligence A set of

Analytical Application Domains

0% 10% 20% 30% 40% 50% 60% 70%

Finance and Accounting

Sales

Marketing

Forecasting

Budgeting and Planning

Customer Service

Human Resources

Shipping and Logistics

Page 6: Business Intelligence Business Intelligence A set of

Number of Users per Application

0% 5% 10% 15% 20% 25% 30% 35% 40%

1 to 10

11 to 50

51 to 100

101 to 500

501 to 5,000

5,000+

Page 7: Business Intelligence Business Intelligence A set of

User Types

0% 10% 20% 30% 40% 50%

Consumer

Analyst

Developer

Author

Page 8: Business Intelligence Business Intelligence A set of

Application Platforms

0% 10% 20% 30% 40% 50%

Web Application

Desktop Application

Corporate Portal

E-mail

Operational Application

Mobile Devices

Page 9: Business Intelligence Business Intelligence A set of

Report Interactivity

0% 20% 40% 60% 80% 100%

View Static Reports or Dashboards

Explore Interactive Reports

Create New Reports from Scratch

Explore Interactive Charts

Modifying Existing Reports

"What-If" Analysis

Page 10: Business Intelligence Business Intelligence A set of

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.

Page 11: Business Intelligence Business Intelligence A set of

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

Page 12: Business Intelligence Business Intelligence A set of

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)

Page 13: Business Intelligence Business Intelligence A set of

BI and Analytics

Degree of Intelligence

Com

petit

ive

Adv

anta

ge

How many, how often, where?Ad hoc reports

Query/drill down

Alerts

Statistical analysis

Forecasting/extrapolation

Predictive modeling

Optimization

Standard reports What happened?

Where exactly is the problem?

What actions are needed?

Why is this happening?

What’s the best that can happen?

What if these trends continue?

What will happen next?Analysis

Accessand

Reporting

Page 14: Business Intelligence Business Intelligence A set of

Corporate Information Factory

http://www.inmoncif.com/includes/contentimages/cif.gif

Page 15: Business Intelligence Business Intelligence A set of

Closed Loop Analytical Process (Vesset, 2003)

Track

Act

Analyze

Model

Decide

Tra

nsac

tion-

Orie

nted A

nalytical

Page 16: Business Intelligence Business Intelligence A set of

Failures

Many BI initiatives have failed to live up to their hype A recent survey in the UK found that 87% of BI

projects don’t 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.

Page 17: Business Intelligence Business Intelligence A set of

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

Page 18: Business Intelligence Business Intelligence A set of

Value Creation

Project Timeline

BI Asset Creation BI Value Capture Phase

Many BI Initiativesstop here!

But they need to gohere!

This phase encompasses all of thestrategic alignment, design, technicaldevelopment, and project managementactivities required to build, deploy, andmaintain a BI environment and BIapplications. The activities in this phasehave received most of the focus of the data warehousing industry over the past ten years.

This phase encompasses all of the processengineering and change managementactivities required to integrate BI applications intomanagement and operational processesthat drive increased revenues, reduced, costs,or both. The activities in this phase areconsidered the province of the business subjectmatter experts.

Page 19: Business Intelligence Business Intelligence A set of

BI Preconditions for Value Creation

Strategic Alignment Process Engineering Change Management

Business Value of Business Intelligence

BI Technical Development BI Project Management