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BI An Introduction.ppt

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    Enterprise Systems & Business

    Intelligence - An Introduction

    25/06/16

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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

    7

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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

    9

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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