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Business Intelligence
in the Enterprises

Data Gathering
Information capture
Business Analysis
Intelligence Better decisions with greater speed and confidence
Understanding the context of information
Distribution
Shorten marketing efforts
Timely delivery to the right people who can act on it
Improve customer relationships
Expert
Reporting Align effort with firm strategy
Systems
Knowledge Improve revenue and profit
Management
Data Mining
The Business Pressures-Responses-Support business intelligence (BI)
Model A conceptual framework for decision support. It
The business environment combines architecture, databases (or data
Organizational responses: be reactive, anticipative, warehouse), analytical tools and applications
adaptive, and proactive Remember that we defined business analytics
Computerized support (BA) to include the access, reporting, and
Closing the Strategy Gap One of the major objectives of
analysis of data supported by software to drive
BI is to facilitate closing the gap between the current business performance and decision making
performance of an organization and its desired From our perspective, BA and BI are the
performance as expressed in its mission, objectives, and
goals and the strategy for achieving them essentially the same thing

ERP

CRM

SCM
Smaller organizations: Larger organizations:
Excel spreadsheets Data mining, predictive analytics,
dashboards
 Take action Measure results

Data Warehouse
Business Analytics
Performance and Strategy
User Interface

Gain insight Clean data

http://www.m87systems.com/services/bi_cycle.htm

ENHANCING DECISION MAKING

Business Intelligence in the Enterprise

BUSINESS INTELLIGENCE AND ANALYTICS FOR DECISION SUPPORT

FIGURE 12-3 Business intelligence and analytics requires a strong database foundation, a set of analytic tools,
and an involved management team that can ask intelligent questions and analyze data.

18 © Prentice Hall 2011

 Business Intelligence in the Enterprise Business Intelligence in the Enterprise Business Intelligence in the Enterprise
BUSINESS INTELLIGENCE USERS
Business intelligence users Examples of BI applications
80% are casual users relying on production reports Predictive analytics
Senior executives Use patterns in data to predict future behavior
Use monitoring functionalities E.g. Credit card companies use predictive analytics to
Middle managers and analysts determine customers at risk for leaving
Ad-hoc analysis Data visualization
Operational employees Help users see patterns and relationships that would be
difficult to see in text lists
Prepackaged reports
Geographic information systems (GIS)
E.g. sales forecasts, customer satisfaction, loyalty and
attrition, supply chain backlog, employee productivity Ties location-related data to maps
FIGURE 12-4 Casual users are consumers of BI output, while intense power users are the producers of
reports, new analyses, models, and forecasts.

20 © Prentice Hall 2011 21 © Prentice Hall 2011

Business Intelligence Constituencies

Business Intelligence in the Enterprise

Management strategies for developing BI and BA A PIVOT TABLE

capabilities THAT EXAMINES
CUSTOMER
REGIONAL
Two main strategies DISTRIBUTION AND
ADVERTISING
1. One-stop integrated solution SOURCE
In this pivot table, we are
Hardware firms sell software that run optimally on their hardware able to examine where an
customers come from

Makes firm dependent on single vendor switching costs in terms of region and
advertising source.

2. Multiple best-of-breed solution

Greater flexibility and independence
Potential difficulties in integration FIGURE 12-6

Must deal with multiple vendors

23 © Prentice Hall 2011 24 © Prentice Hall 2011

 Business Intelligence Constituencies Business Intelligence Analysis Business Intelligence
Decision-support for senior management
THE BALANCED
Help executives focus on important performance SCORECARD
FRAMEWORK
Decision-support for senior management (cont.)
information
Business performance management (BPM)
Balanced scorecard method: In the balanced
scorecard framework,
-cost
Measures outcomes on four dimensions: objectives are
operationalized along producer, scope of operation) into operational targets
four dimensions:
1. Financial financial, business
process, customer, KPIs developed to measure progress towards targets
2. Business process and learning and
growth. Each
3. Customer dimension is measured
using several KPIs.
Data for ESS
4. Learning & growth
Internal data from enterprise applications
Key performance indicators (KPIs) measure each
dimension
FIGURE 12-7 External data such as financial market databases
Drill-down capabilities

25 © Prentice Hall 2011 26 © Prentice Hall 2011 27 © Prentice Hall 2011

Dashboard Pantauan Angka Kematian

Dashboard Kepatuhan Dokter Terhadap Pelayanan (LOS)

Dashboard Manajemen Tempat Tidur
 IoT is an area with explosive growth By 2020, besides computing and communication
Connecting physical world to the Internet devices (tablets, phones, and PCs), another 38B
Social Network versus IoT
things will be connected to the Internet
human-to-human vs. machine-to-machine Reasons for incredible growth in IoT:
Enablers: sensors and sensing devices Hardware smaller, affordable, more powerful
Example Availability of BI tools more capable and cheaper
Self driving cars Emergence of new and innovative use cases
Fitness trackers
oT
Smartbin trash detectors detecting fill levels
Web of Things
Smart refrigerators, and other appliances

Building Blocks of IoT Technology

Infrastructure
IoT related technology components can be divided
into four major blocks:
RFID: radio-frequency identification
1. Hardware
physical devices, sensors, and actuators One of the earliest/disruptive sensor technologies
2. Connectivity Part of a family of automatic identification
Collecting and sending sensory data to the technologies
cloud Including ubiquitous barcodes and magnetic strips
3. Software The goal is to use radio-frequency waves to
Integrating, and processing data for patterns accurately and quickly identify objects
4. Applications Use of RFID is led/promoted by large retailers
Creating context specific alerts, actionable Wal-Mart, Target, Dillard's
insight
 Data representation for a given application domain IoT Platforms many large companies are in it
Amazon AWS IoT, Microsoft Azure IoT Suite, Predix IoT,
How does RFID work? For Retail: Electronic Product Code (EPC) Platform by General Electric (GE), IBM Watson IoT
Tag a circuit attached to the product to be identified RFID tags contain 96 bits of data solutions, and Teradata Unified Data Architecture
Interrogator (i.e., reader) with antennas and a IoT Start-up Ecosystem
computer to detect objects, store the data, and take due
actions Many start-up companies are emerging in the field of Io
T
Tags can be passive or active Examples include Sigfox, 3D Robotics, Canary, Athos,
Passive tag small, inexpensive, no power source Greenwave, Jawbone, FreedomPop, Razer, and Ring
Active tag larger, more expensive, has power source Fitbit one of the most successful IoT startups
Which one is better? See Figure 8.3 for a pictorial representation of IoT
Retail uses passive tags, others may use active tags Ecosystem
RFID + Sensors can be used for perishable goods

Internet of Things (IoT) Ecosystem Managerial Considerations in the Internet of

Things

1. Organizational Alignment
2. Interoperability Challenges A style of computing in which dynamically scalable and
often virtualized resources are provided over the Internet.
3. Security
Users need not have knowledge of, experience in, or
control over the technology infrastructures in the cloud
Emerging growth of IoT and its potential to help us that supports them.
achieve the vision of smart cities, smart grid, smart Cloud computing = utility computing, application service
anything provider grid computing, on-demand computing,
software-as-a-service (Saa
Cloud = Internet
-as-a- -as-a-service (Ia
aS), platforms-as-a-service (PaaS)
 Service-Oriented DSS/BI

Web-based e-mail cloud computing application Cloud computing is used in

Stores the data (e-mail messages) e-commerce, BI, CRM, SC
Stores the software (e-mail programs) Business model
Centralized hardware/software/infrastructure Pay-per-use
Centralized updates/upgrades Subscribe/pay-as-you-go
Access from anywhere via a Web browser
Companies that offer cloud-computing services
e.g., Gmail Google, Yahoo!, Salesforce.com
Web-based general application = cloud application IBM, Microsoft (Azure)
Sun Microsystems/Oracle
Web Services

Different Types of Cloud Offerings

Virtualization Geospatial Analytics

Creation of a virtual version of something like an Geocoding
operating system or server Visual maps
Example: logical division of a hard drive to create Postal codes
two separate hard drives in a computer
Latitude & Longitude
Levels of virtualization
Network virtualization Enables aggregate view of a large geographic area
Storage virtualization
Server virtualization
Relates to which cloud service is employed
Location-Based Analytics (2 of 3)

Location-based databases Retailers location + demographic details

Geographic Information System (GIS)
Used to capture, store, analyze, and manage the determine how sales vary by population level
data linked to a location assess locational proximity to other competitors
Combined with integrated sensor technologies and their offerings
and global positioning systems (GPS) assess the demand variations and efficiency of
supply chain operations
Location Intelligence (LI)? analyze customer needs and complaints
Interactive maps that further drill down to
data/information details about any location better target different customer segments

Less expertise/experience is requirement

In addition to business/retail applications, GIS based Faster decision making (augmented with analytics) Industrial Restructuring
analytics are being used in Less reliance on experts and analysts (data rules!) AI, analytics, and cognitive computing can change
Agricultural applications Power is being redistributed among managers the industry in a fundamental way
Crime analysis
Support for complex decisions makes them faster to develop
Disease spread prediction and be of better quality Data science and AI will change the nature of
For more applications, look at Information needed for high-level decision making is human jobs (another wave of automation is in the
expedited or even self-generated horizon)
esri.com (producer of ArcGIS)
grindgis.com Automation of routine decisions or phases in the decision- Unintended Effects of Analytics
making process may eliminate some managers Social and long-term effects of the models
LI can be combined with weather and environmental
data to create a richer data/information
infrastructure
 Skills That Define a Data Scientist A Typical Job Post for Data Scientist

Domain Expertise,
Problem Definition and
Thomas H. Davenport and D. J. Patil Decision Modeling

Harvard Business Review, October 2012 Data Access and

Communication and Management
Data Scientist = Big Data guru Interpersonal (both traditional and
new data systems)
One with skills to investigate Big Data
Very high salaries, very high expectations
Where do Data Scientists come from? DATA
M.S./Ph.D. in MIS, CS, I SCIENTIST
Curiosity and Programming,
There is not a specific degree program for DS! Creativity Scripting and Hacking

PE, PM SP (Data Science Professional)

Internet and Social
Media/Social Networking
Technologies

Data scientists turn Big Data into big value, Questions / Comments
delivering products that delight users and insight
that informs business decisions.
A data scientist is not only proficient in working with
data, but also appreciates data itself as an invaluable
asset.
By 2020 there will be 4.5 million new data scientist
jobs, of which only one-third will be filled because of
the lack of people available to fill them.

markets of the 1980s.