Enhancing Business Performance with IT: Insights into Business Intelligence Applications

1. Computer applications in the modern enterpriseΕπιχειρησιακές Εφαρμογές Η/ΥLectures 6-9: Get closer to what the real thing is – Business Intelligence as IT applicationUniv. of the Aegean Financial and Management Engineering Dpt Petros KAVASSALIS

2. What you will learn in this course • A set of fundamentalconcepts and frameworks for understanding the potential impact of information technology (IT) on business strategy and structure • Computers and Information Systems (IS) • The business value chain • Business integration through Enterprise Application Integration • Information Systems in practice: How does the modern enterprise use “Business Intelligence” (BI) systems to improve decision-making • Methods and BI examples • “Hands-on” experience: create business reports by using Eclpise BIRT Reporting Tool (http://www.eclipse.org/birt/phoenix/) • The design and governance of digitized processes • Business Function and Processes • Transfer a real world business process to an e-business world*** (Guest Speakers)

3. Communication tools • e-mail: pkavassalis@atlantis-group.gr • Course web site: see FME web site

4. Students evaluation • Class Participation (20%) + • Assignments (20%) + • Final Exam (650%)

5. What I am going to say • Within the modern enterprise • Inter-organizational relationships • Intra-organizational relationships • are supported by Information Technologies • It is about enterprise applications that inter-operate to move information around • Not only within existing business frontiers but also within the network of the collaborators and customers of an enterprise • Not randomly but in an organized way, within the enterprise architecture framework

6. Enterprise 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 competitors • IT as strategic business enabler • IT to improve operational efficiency • IT to meet existing and new business needs • IT need investments

7. Enterprise architecture

8. Why IT? more • You know: • Companies are moving aggressively to computerized support of their operations • Why? • Operational efficiency • Better serve customer needs • Leverage new opportunities • More: • Business pressures (BP) • Result of today's competitive business climate • Organizational Responses (BR) • To counter the pressures • Computerized Decision Support (CDS) • To better organize the process of decision making

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

10. Business Pressures (BP)[Reference: E. Turban et al., 2011, Business Intelligence, Pearson – chapter 1] • FACTORDESCRIPTION • Markets Strong competition • Expanding global markets • Blooming electronic markets on the Internet • Innovative marketing methods • Opportunities for outsourcing with IT support • Need for real-time, on-demand transactions • Consumer Desire for customization • demandDesire for quality, diversity of products, and speed of delivery • Customers getting powerful and less loyal • Technology More innovations, new products, and new services • Increasing obsolescence rate • Increasing information overload • Social networking, Web 2.0 and beyond • Societal Growing government regulations and deregulation • Workforce more diversified, older, and composed of more women • Prime concerns of homeland security and terrorist attacks • Necessity of Sarbanes-Oxley Act and other reporting-related legislation • Increasing social responsibility of companies • Greater emphasis on sustainability

11. Organizational Responses • Organizations should be • Reactive • Anticipative • Adaptive • Proactive • Support 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 support • Please give examples • From a Bank • Insurance • Tourism industry

12. Computerized Decision Support • Informing about the reality • See New York Municipality site (CPR) • Rationalizing and improving the decision-making process • Closing 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

13. Business Intelligence: definition (1) • BI is an evolution of decision support concepts over time • Meaning of EIS/DSS… • Then: Executive Information System • Now: Everybody’s Information System (BI) • BI is an umbrella • Architectures • Tools • Applications • Methodologies • BI systems are enhanced DSS with additional visualizations, alerts, and performance measurement capabilities • The term BI emerged from industry apps

14. Business 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 analysis • BI helps transform data: • to information (and knowledge) • to decisions and finally to action • BI app components • Data warehouse, with its source data • Business 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

15. Business Intelligence: architecture

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

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

18. ... Starts here Planning BI LifeCycle (1) ΗΠΑ: Department of Defense

19. BI LifeCycle (2) • Planning / Tasking • Data Collection • Processing & Exploitation • Analysis • Iterative process • Production – Dissemination • Use

20. BI LifeCycle: Planning & Data Collection • Planning • Why? Who will use it? • Expected Results • Reports • Web Site • More? • Project Design • Time Plan • Data Collection • Preparation Phase • Data Sources • Collection Period • Familiarization with Data • Data Cataloging • Sources Cataloging • Filtering

21. BI LifeCycle: Processing & Exploitation Howson: Successful Business Intelligence {ETL: extract, transform, load} Data from External Sources

22. BI LifeCycle: Processing & Exploitation (cont.) E Turban et al: Business Intelligence, Pearson

23. BI LifeCycle: Analysis [Business Analytics, BA] • Wikipedia • Business 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 • Querying • Report Design (dashboards and scorecards) • Alerts • Cube Analysis (OLAP)

24. BI LifeCycle: Production & Dissemination

25. S. Ottl: Emerging Trends in Business Analytics and Business Intelligence In a nutshell Process Time Technical Staff Analysis Time Field Users Action Time Managers Executives

26. BA example[http://www.quadbase.com/espressreport/help/examples/index.html]