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Enterprise Systems & Business
Intelligence - An Introduction
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Learning objectives
Understand the current enterprise system landscape
Understand the need for computerized support of managerial decisionmaking
Describe the business intelligence (BI) methodology and concepts and
relate them to decision support systems (DSS) Understand the basic definitions and concepts of data warehouses Learn different types of data warehousing architectures
Describe the processes used in deeloping and managing datawarehouses
!"plain the role of data warehouses in decision support Understand the all#encompassing nature of performance management
(B$%) and some of the best practices in planning and management
reporting
Understand the ob&ecties and benefits of business analytics and datamining' recognize the wide range of applications of data mining
Understand the issues in implementing BI and the relations with other
enterprise systems
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The evolution of Enterprise Systems
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Evolution of Enterprise Systems
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Evolution of Enterprise Systems
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anagement!s Impetus to Adopt E"# $cont!d%
0igure1 Information and material flows in a functional business model
,
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anagement!s Impetus to Adopt E"#
0unctional model led to heay and oerstaffed organizations
incapable of reacting 2uickly to change $rocess business model
Information flows between the operating leels without topmanagement3s inolement
0urther impetus for adopting !4$ systems has come from
compliance with the Sarbanes#5"ley 6ct of ++
4e2uires companies to substantiate internal controls on allinformation
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E"# systems
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anagement!s Impetus to Adopt E"# $cont!d%
Information and material flows in a process business model
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6 typical !4$ system
proides1:accounting and
controlling':production management:materials management':2uality management':plant maintenance':sales' distribution'logistics
:human resources':pro&ect management;
E"# functionality $late '(!s
The function-centric/process-centric model period
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The ERP market
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Bac) to the silo!s
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Early EAI - Spaghetti integration
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*ub-and-spo)e architecture
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+or)flo,s and +fS
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+or)flo,s and integration
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Business #rocess anagement System $B#S BPMS is a single, unified modeling, integration, and
execution enironment that can !e applied to the
implementation of literall" an" !usiness process#$ %Smith and&ingar, 'nternet (orld, Ma" )**)+
BPMS can !e thought of as an engine for processes
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Business #rocess anagement Systems
BPMS allo.s
Separation of !usiness process logic from the underl"ingapplications
Processes are stored in a repositor" using a standard format, and
the applications can then interact .ith this common repositor" 't inoles
'dentif"ing indiidual tasks that make up the process
The order in .hich the" should !e executed
The information that feeds them
The technologies that support them
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Business IntelligenceMaria Iacob
25/06/16
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efinition of BI
BI is an umbrella term that combines
architectures' databases' analytical tools'applications' and methodologies;
BI a content#free e"pression' so it means
different things to different people; BI>s ma&or ob&ectie is to enable easy access to
data (and models) to proide business
managers with the ability to conduct data
analysis BI helps transformdata' to information (and
knowledge)' to decisions and finally to action;
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BI process
Data BI Information BIDecision ?
6ction
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Business Environment .actors
FACTOR DESCRIPTION
Markets Strong competition
Expanding global markets
looming electronic markets on t!e Internet
Inno"ati"e marketing met!ods
Opport#nities $or o#tso#rcing %it! IT s#pport
Need $or real&time' on&demand transactions
Cons#mer Desire $or c#stomi(ation
demand Desire $or )#alit*' di"ersit* o$ prod#cts' and speed o$ deli"er* C#stomers getting po%er$#l and less lo*al
Tec!nolog* More inno"ations' ne% prod#cts' and ne% ser"ices
Increasing obsolescence rate
Increasing in$ormation o"erload
Social net%orking' +eb ,-. and be*ond
Societal /ro%ing go"ernment reg#lations and dereg#lation
+ork$orce more di"ersi$ied' older' and composed o$ more %omenPrime concerns o$ !omeland sec#rit* and terrorist attacks
Necessit* o$ Sarbanes&Oxle* Act and ot!er reporting&related legislation
Increasing social responsibilit* o$ companies
/reater emp!asis on s#stainabilit*
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Business #ressures/"esponses/Support odel
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A *igh-level Architecture of BI
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The Architecture of BI
6 BI system has four ma&or components1
a data warehouse' with its source data business analytics' a collection of tools for manipulating'
mining' and analyzing the data in the data warehouse@
business performance management (B$%) for monitoringand analyzing performance
a user interface (e;g;' dashboard)
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0omponents in a BI Architecture
Ahe data warehouse is the backbone of any
medium#to#large BI system; 5riginally' the data warehouse included only historical
data that was organized and summarized' so end
users could easily iew or manipulate it; Aoday' some data warehouses include access to
current data as well' so they can proide real#timedecision support
Business analytics are the tools that helpusers transform data into knowledge (e;g;'2ueries' data*te"t mining tools' etc;);
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0omponents in a BI Architecture
Business $erformance %anagement (B$%)'
which is also referred to as corporate
performance management ($%)' is a portfolio
of applications within the BI framework thatproides enterprises tools they need to better
manage their operations User Interface(i;e;' dashboards) proides a
comprehensie graphical*pictorial iew ofcorporate performance measures' trends' and
e"ceptions;
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The Evolution of BI 0apabilities
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A Brief *istory of BI
Ahe term BI was introduced by the Cartner Croup in themid#-99+s
oweer' the concept is much older
-97+s E %IS reporting E static*periodic reports
-98+s E !"ecutie Information Systems (!IS)
-99+s E 5L6$' dynamic' multidimensional' ad#hocreporting #F coining of the term GBIH
++ E Inclusion of 6I and Data*Ae"t %iningcapabilities@
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Automated ecision a)ing
6 relatiely new approach to supporting decisionmaking
6pplies to highly structured decisions 6utomated decision systems (6DS)
6n 6DS is a rule#based system that proides asolution to a repetitie' operational' managerial
problem in a specific area; Standard type1 used in highly repetitie processes
(e;g;' simple#loan approal system) or
ustomized1 eent#drien alerts (unusual eents' e;g;
in fraud detection)
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Automated ecision-a)ing .rame,or)
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Mission
Strateg"
0ctions
1ision
2oals
3perations
"ol van BI
Strategic decision
making (macro)
5perational decisionmaking (micro)
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0orporate governance
orporate goernance is the system by which business
corporations are directed and controlled; Ahe corporate goernance structure specifies the distribution
of rights and responsibilities among different participants in
the corporation' such as the board' managers' shareholders
and other stakeholders' and spells out the rules and
procedures for making decisions on corporate affairs; It proides the structure through which the company
ob&ecties are set' and the means of attaining those
ob&ecties and monitoring performance;
K5!D' $rinciples of orporate Coernance' -999
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Intelligence 0reation and 1se
Steps Inoled
Data warehouse deployment reation of intelligence
Identification and prioritization of BI pro&ects
By using 45I and A5 (cost#benefit analysis)
Ahis process is also called BI goernance
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BI governance2 Intelligence 0reation and 1se
6 yclical $rocess of6 yclical $rocess of
Intelligence reation 6ndIntelligence reation 6nd
UseUse
BI practitioners
often follow thenational security
model depicted in
this figure;
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Transaction #rocessing vs Analytic #rocessing
Aransaction processing systems are constantly
inoled in handling updates (4UD) to whatwe might call operational databases; 6A% withdrawal transaction' sales order entry ia an
ecommerce site M updates DBs
5nline transaction processing (5LA$) handles routineon#going business
!4$' S%' 4% systems generate and store data in5LA$ systems
Ahe main goal is to hae high efficiency
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Transaction #rocessing vs Analytic #rocessing
5nline analytic processing (5L6$) systems are
inoled in e"tracting information from datastored by 5LA$ systems 4outine sales reports by product' by region' by sales
person' etc;
5ften built on top of a data warehouse where thedata is not transactional
%ain goal is effectieness (and then' efficiency) Mproide correct information in a timely manner
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Successful BI Implementation
Implementing and deploying a BI initiatie is a
lengthy' e"pensie and risky endeaorN Success of a BI system is measured by its
widespread usage for better decision making S0s1
-; Users; BI and Business Strategy.; (nearly) 4eal#time BI/; Integration ? Security
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3% BI 1sers
Ahe typical BI user community includes
6ll leels of the management hierarchy (not&ust thetop e"ecuties' as was for !IS)
Strategic and operational management
6 successful BI system must be of benefit to
the enterprise as a whole;
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4% BI and Business Strategy
Ao be successful' BI must be aligned with the
company3s business strategy; BI cannot*should not be a technical e"ercise for the
information systems department;
BI changes the way a company conducts
business by improing business processes' and
transforming decision making to a moredata*fact*information drien actiity;
BI should help e"ecute the business strategyand not be an impediment for itN
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5%"eal-time6 7n-demand BI
Ahe demand for Greal#timeH BI is growingN
Is Greal#timeH BI attainable= Aechnology is getting thereO 6utomated' faster data collection (40ID' sensors'O )
Database and other software technologies (agent'
S56' O) are adancing Aelecommunication infrastructure is improing
omputational power is increasing while the cost forthese technologies is decreasing
Business 6ctiity %onitoring
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8% 7ther factors for Successful BI
Integration of Systems and 6pplications BI must integrate into the e"isting IS
5ften sits on top of !4$' S%' 4% systems
Integration to outside (partners of the e"tended enterprise)
ia internet M customers' endors' goernment agencies'etc;
Security and $riacy Still an important research topic in BI
ow much security*priacy=
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ajor BI 9endors
In recent years' the landscape of BI endors has
changed ognosac2uired by IB% in ++8
IB% also ac2uired S$SS in ++9
yperionac2uired by 5racle in ++8
Business 5b&ects ac2uired by S6$ in ++9 %icrostrategy %ay be the only independent large BI endor
5thers include %icrosoft' S6S' Aeradata (mostly
considered a D< endor) Swedish*6merican1 Plikiew Dutch1 IBI;com
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Summary
BI definition ? motiation
BI history BI architecture 6D% BI goernance Success 0actors for BI implementation
BI tool endors ? resources
Puestions * ommentsO
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Learning objectives
Understand the current enterprise system landscape Understand the need for computerized support of managerial decision
making Describe the business intelligence (BI) methodology and concepts and
relate them to decision support systems (DSS) Understand the basic definitions and concepts of data warehouses Learn different types of data warehousing architectures Describe the processes used in deeloping and managing data
warehouses !"plain the role of data warehouses in decision support Understand the all#encompassing nature of performance management
(B$%) and some of the best practices in planning and management
reporting
Understand the ob&ecties and benefits of business analytics and datamining' recognize the wide range of applications of data mining Understand the issues in implementing BI and the relations with other
enterprise systems
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