Slide 1

1Computer applications in the modern enterprise /Lectures 6-9: Get closer to what the real thing is Business Intelligence as IT applicationUniv. of the Aegean Financial and Management Engineering DptPetros KAVASSALIS

1

2What you will learn in this courseA set of fundamental concepts and frameworks for understanding the potential impact of information technology (IT) on business strategy and structureComputers and Information Systems (IS)The business value chainBusiness integration through Enterprise Application IntegrationInformation Systems in practice: How does the modern enterprise use Business Intelligence (BI) systems to improve decision-makingMethods and BI examplesHands-on experience: create business reports by using Eclpise BIRT Reporting Tool (http://www.eclipse.org/birt/phoenix/)

The design and governance of digitized processesBusiness Function and ProcessesTransfer a real world business process to an e-business world*** (Guest Speakers)2

3Communication toolse-mail: pkavassalis@atlantis-group.grCourse web site: see FME web site

3

4Students evaluationClass Participation (20%)+Assignments (20%)+Final Exam (650%)

4What I am going to sayWithin the modern enterpriseInter-organizational relationshipsIntra-organizational relationshipsare supported by Information Technologies It is about enterprise applications that inter-operate to move information aroundNot only within existing business frontiers but also within the network of the collaborators and customers of an enterpriseNot randomly but in an organized way, within the enterprise architecture framework

55Enterprise Architecture Framework or Enterprise Application Integration (EAI)The organizing logic for) for aligning business operations and IT infrastructure reflecting priorities and other internal decisions (MIT CISR For delivering goods and services to the customer It is what makes businesses to differentiate from the competitorsIT as strategic business enablerIT to improve operational efficiencyIT to meet existing and new business needsIT need investments

66Enterprise architecture

7

7Why IT? moreYou know: Companies are moving aggressively to computerized support of their operationsWhy?Operational efficiencyBetter serve customer needsLeverage new opportunitiesMore:Business pressures (BP)Result of today's competitive business climateOrganizational Responses (BR)To counter the pressures Computerized Decision Support (CDS)To better organize the process of decision making

88Decisions and Support[Reference: E. Turban et al., 2011, Business Intelligence, Pearson chapter 1]

9

9Business Pressures (BP)[Reference: E. Turban et al., 2011, Business Intelligence, Pearson chapter 1]

10FACTORDESCRIPTIONMarketsStrong competitionExpanding global marketsBlooming electronic markets on the InternetInnovative marketing methodsOpportunities for outsourcing with IT support Need for real-time, on-demand transactionsConsumer Desire for customizationdemandDesire for quality, diversity of products, and speed of delivery Customers getting powerful and less loyal TechnologyMore innovations, new products, and new servicesIncreasing obsolescence rateIncreasing information overload Social networking, Web 2.0 and beyondSocietalGrowing government regulations and deregulationWorkforce more diversified, older, and composed of more womenPrime concerns of homeland security and terrorist attacksNecessity of Sarbanes-Oxley Act and other reporting-related legislationIncreasing social responsibility of companiesGreater emphasis on sustainability10Organizational ResponsesOrganizations should be ReactiveAnticipativeAdaptiveProactiveSupport executives and work practice with exact knowledge on what is going on in each area of operation, process etc.More general: Business action needs computerized supportPlease give examplesFrom a BankInsuranceTourism industry

1111Computerized Decision SupportInforming about the realitySee New York Municipality site (CPR)Rationalizing and improving the decision-making processClosing the gap between the current performance of an organization and its desired performance (i.e. where do we want to go?)as expressed in its mission, objectives, and goals, and the strategy to achieve them

1212Business Intelligence: definition (1)BI is an evolution of decision support concepts over timeMeaning of EIS/DSSThen: Executive Information System Now: Everybodys Information System (BI)BI is an umbrellaArchitecturesToolsApplicationsMethodologiesBI systems are enhanced DSS with additional visualizations, alerts, and performance measurement capabilitiesThe term BI emerged from industry apps

1313Business Intelligence: definition (2)BI's objective is to enable easy access to data (and models) to provide business managers and key workers with the ability to conduct analysisBI helps transform data: to information (and knowledge)to decisions and finally to action

BI app componentsData warehouse, with its source dataBusiness Analytics, a collection of tools for manipulating, mining, and analyzing the data in the data warehouse; User Interface (e.g., dashboard) + Business Performance Management (BPM) for monitoring and analyzing performance

1414Business Intelligence: architecture

15

15BI from the Univ. of Michigan[http://www.bi.umich.edu/learn/what.html?autoplay=true&transcript=true]

16

16BI example[http://www.epagogix.com/]

17

17BI LifeCycle (1)

18

... Starts herePlanning : Department of Defense18BI LifeCycle (2)Planning / TaskingData CollectionProcessing & ExploitationAnalysisIterative process Production DisseminationUse

19

19BI LifeCycle: Planning & Data CollectionPlanningWhy? Who will use it?Expected ResultsReportsWeb SiteMore?Project DesignTime PlanData CollectionPreparation PhaseData SourcesCollection PeriodFamiliarization with DataData CatalogingSources CatalogingFiltering

20

20BI LifeCycle: Processing & Exploitation

21

Data from External SourcesHowson: Successful Business Intelligence{ETL: extract, transform, load}

21BI LifeCycle: Processing & Exploitation (cont.)

22

E Turban et al: Business Intelligence, Pearson22BI LifeCycle: Analysis [Business Analytics, BA]WikipediaBusiness analytics makes extensive use of data, statistical and quantitative analysis, explanatory and predictive modeling, and fact-based management to drive decision making. Analytics may be used as input for human decisions or may drive fully automated decisions. Business intelligence is QueryingReport Design (dashboards and scorecards)AlertsCube Analysis (OLAP)

23

23BI LifeCycle: Production & Dissemination

24

24In a nutshell

25

S. Ottl: Emerging Trends in Business Analytics and Business Intelligence Process TimeAction TimeAnalysis TimeTechnical StaffManagers ExecutivesField Users25BA example[http://www.quadbase.com/espressreport/help/examples/index.html]

26

26