business intelligence: a managerial approach (2nd edition) · as a standard component of their...

Chapter 6:

BI Implementation:

Integration and Emerging Trends

Business Intelligence: A Managerial Approach

(2nd Edition)

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-2

Learning Objectives

Describe the major business intelligence (BI) implementation issues

List some critical success factors of BI implementation

Describe the importance and issues in integrating BI technologies and applications

Understand the needs for connecting BI systems with other information systems

Define on-demand BI and its advantages/limitations

List and describe representative privacy, major legal and ethical issues of BI implementation


Learning Objectives

Understand Web 2.0 and its characteristics as related to BI and decision support

Understand social networking concepts, selected applications, and their relationship to BI

Describe how virtual world technologies can change the use of BI applications

Describe the integration of social software in BI

Know how Radio Frequency Identification (RFID) data analysis can help improve supply chain management (SCM) and other operations

Describe how massive data acquisition techniques can enable reality mining


Opening Vignette…

―BI Eastern Mountain Sports Increases

Collaboration and Productivity‖

Company background

Problem description

Proposed solution

Results

Answer & discuss the case questions


Opening Vignette Collaborative Decision Making at Eastern Mountain Sports


Implementing BI – An Overview

Decisional Factors in BI Implementation

Reporting and analysis tools

Features, functionality, flexibility, scalability

Database

Scalability, performance, security

ETL Tools

Accessibility, efficiency, usability

Costs

Hardware/software, development/training

Benefits

Tangibles/intangibles - time saving, improved decisions/operations/customer satisfaction/


Implementing BI – An Overview

Critical Success Factors for BI Implementation

a. Business driven methodology and project management

b. Clear vision and planning

c. Committed management support and sponsorship

d. Data management and quality issues

e. Mapping the solutions to the user requirements

f. Performance considerations of the BI system

g. Robust and extensible framework


Managerial Issues Related to BI Implementation

1. System development and the need for integration

2. Cost–benefit issues and justification

3. Legal issues and privacy

4. BI and BPM today and tomorrow

5. Cost justification; intangible benefits

6. Documenting and securing support systems

7. Ethical issues

8. BI Project failures


BI and Integration Implementation

Types of Integration

Functional integration

different [physically separate] applications are provided/used as if it is a single system

Physical integration

packaging the hardware, software, and communication features required to accomplish functional integration

Primary focus in BI (and in this book) is functional-application integration



Why integrate?

To better implement a complete BI system

To increase the capabilities of the BI applications

To enable real-time decision support

To enable more powerful applications

To facilitate faster system development

To enhance support activities such as blogs, wikis, RSS feeds, etc.



Levels of BI Integration

Functional integration can be within the same BI or across different BI systems

Integration across different BI systems can be accomplished in a loosely coupled fashion – input output passing, messaging (SOA)

Integration within a BI system is more cohesive with several sub-systems constituting the whole

Embedded Intelligent Systems

Serving as the intelligent agents within BI


Connecting BI Systems to Databases and Other Enterprise Systems

Virtually every BI application requires database or data warehouse access

Multi-tiered Application Architecture


Connecting BI Systems to Databases and Other Enterprise Systems

Integrating BI applications and back-end systems

Web scripting languages (e.g., PHP, JSP, ASP)

Application integration servers (e.g., WebLogic)

Enterprise application integration – integration of large systems (BI to ERP, SCM, CRM, KM, etc.)

Integrating BI and ERP for DSS

ERP captures and stores data

BI converts data into information/knowledge

Middleware?


On-Demand BI

The limitations of Traditional BI

Complex, time-consuming, expensive

The On-Demand Alternative

On-demand computing = Utility computing

SaaS (Software as a service)

Allows SMEs to utilize affordable BI

On-demand function alternatives

Internally sharing licenses within a firm

Sharing licenses with many firms via an ASP


Benefits of On-Demand BI

Ability to handle fluctuating demand

Flexible use of the BI technology pool

Reduced investment/cost

Hardware (servers and peripherals)

Software (more features for less)

Maintenance (centralized timely updates)

Embodiment of recognized best practices

Better flexibility and connectivity with other systems via SaaS infrastructure

Better RIO


The Limitations of On-Demand BI

Integration of vendors’ software with company’s software may be difficult

The vendor can go out of business, leaving the company without a service

It is difficult or even impossible to modify hosted software for better fit with the users’ needs

Upgrading may become a problem

You may relinquish strategic data to strangers (lack of privacy/security of corporate data)


Issues of Legality, Privacy and Ethics

Legal issues

Liability for the actions of advice provided by BI

Who is liable, if the software advice fails?

Privacy

Right to be left alone and the right to be free from unreasonable personal intrusions

Collecting information about individuals

The Web and information collection

Mobile user privacy

Homeland security and individual privacy



Ethics in Decision Making and Support

Electronic surveillance

Software piracy

Use of proprietary databases

Use of intellectual property such as knowledge

Computer accessibility for workers with disabilities

Accuracy of data, information, and knowledge

Protection of the rights of users

Use of corporate computers for non-work-related purposes (personal use of Internet while working)



Typical problem

formulation

(T.O.P perspective)

Integration of moral

intensity

components

Problem

formulation

expansion

Conversation

Typical problem

formulation

(T.O.P perspective)

Stakeholder

expansionProblem

definition

“Unfolding” to control expansion

S

SS

S

SS

= Stakeholder

S

A Model of Ethical Problem Formulation


Emerging Topics in BI – An Overview

Web 2.0 revolution as it relates to BI in (Section 6.7)

Online social networks (Section 6.8)

Virtual worlds as related to BI (Section 6.9)

Integration social networking and BI (Section 6.10)

RFID and BI (Section 6.11)

Reality Mining (Section 6.12)


Emerging Topics in BI – An Overview The Future of BI

Web 2.0 revolution as it related to BI (Section 6.7)

Online social networks (Section 6.8)

Virtual worlds as related to BI (Section 6.9)

Integration social networking and BI (Section 6.10)

RFID and BI (Section 6.11)

Reality Mining (Section 6.12)


Emerging Topics in BI – An Overview

In 2009, collaborative decision making emerged as a new product category that combines social software with business intelligence platform capabilities.

In 2010, 20 percent of organizations will have an industry-specific analytic application delivered via software as a service as a standard component of their business intelligence portfolio.

By 2012, business units will control at least 40 percent of the total budget for BI.

By 2012, one-third of analytic applications applied to business processes will be delivered through coarse-grained application mashups.

Because of lack of information, processes, and tools, through 2012, more than 35 percent of the top 5,000 global companies will regularly fail to make insightful decisions about significant changes in their business and markets.


The Web 2.0 Revolution

Web 2.0: a popular term for describing advanced Web technologies and applications, including blogs, wikis, RSS, mashups, user-generated content, and social networks

Objective: enhance creativity, information sharing, and collaboration

Difference between Web 2.0 and Web 1.x

Use of Web for collaboration among Internet users and other users, content providers, and enterprises



Web 2.0: an umbrella term for new technologies for both content as well as how the Web works

Web 2.0 has led to the evolution of Web-based virtual communities and their hosting services, such as social networking sites, video-sharing sites

Companies that understand these new applications and technologies—and apply the capabilities early on—stand to greatly improve internal business processes and marketing


The Web 2.0 Revolution Characteristics of the Web 2.0

The ability to tap into the collective intelligence of users. The more users contribute, the better.

Data is made available in new or never-intended ways. Web 2.0 data can be remixed or ―mashed up‖.

Web 2.0 relies on user-generated and user-controlled content and data (enhanced collaboration).

Lightweight programming techniques and tools let nearly anyone act as a Web site developer.

The virtual elimination of software-upgrade cycles makes everything a perpetual beta or work-in-progress and allows rapid prototyping, using the Web as an application development platform.


The Web 2.0 Revolution Characteristics of the Web 2.0

Users can access and manage applications entirely through a browser.

An architecture of participation and digital democracy encourages users to add value to the application as they use it.

There is a major emphasis on social networks and computing.

Information sharing and collaboration is greatly supported.

This allows for rapid and continuous creation of new business models.

―dynamic content, rich user experience, metadata, scalability, open source, and freedom (net neutrality)‖



Ajax (Asynchronous JavaScript and XML)

An enabling technology for Web 2.0, resulting in rich, interactive, fast-response, user-friendly GUIs

Makes Web pages feel more responsive by exchanging small amounts of data with the server behind the scenes (eliminated the need for reloading the complete Web page)

Leads to improved Web page interactivity, loading speed, and usability

Many companies and new business models have emerged based on Web 2.0


Online Social Networking – Basics and Examples

A social network is a place where people create their own space, or homepage, on which they write blogs; post pictures, videos, or music; share ideas; and link to other Web locations they find interesting.

The mass adoption of social networking Web sites points to an evolution in human social interaction

The size of social network sites are growing rapidly, with some having over 100 million members – growth for successful ones 40 to 50 %

in the first few years and 15 to 25 % thereafter


Online Social Networking – Social Network Analysis Software

It is used to identify, represent, analyze, visualize, or simulate networks with

Nodes – agents, organizations, or knowledge

Edges – relationships identified from various types of input data (relational and non-relational)

Various input and output file formats exist

SNA software tools include

Business-oriented social network tools such as InFlow and NetMiner

Social Networks Visualizer, or SocNetV, which is a Linux-based open source package


Mobile Social Networking

Social networking where members converse and connect with one another using cell phones or other mobile devices

MySpace and Facebook offer mobile services

Mobile only services: Brightkite, and Fon11

Basic types of mobile social networks

1. Partnership with mobile carriers (use of MySpace over AT&T network)

2. Without a partnership (―off deck‖) (e.g., MocoSpace and Mobikade)

Mobile Enterprise Networks

Mobile Community Activities (e.g., Sonopia)


Major Social Network Services

Facebook: The Network Effect

Launched in 2004 by Mark Zuckerberg (former Harvard student)

It is the largest social network service in the world with over 500 million active users worldwide

Initially intended for college and high school students to connected to other students at the same school

In 2006 opened its doors to anyone over 13; enabling Facebook to compete directly with MySpace.


Major Social Network Services

Orkut: Exploring the Very Nature of Social Networking Sites

The brainchild of a Turkish Google programmer

It was to be Google's homegrown answer to MySpace and Facebook

Format is similar to others: a homepage where users can display every facet of their personal life they desire using various multimedia applications

A major highlight of Orkut – ability to create and control communities

Also supports many languages


Implications of Business and Enterprise Social Networks

Business oriented social networks can go beyond ―advertising and sales‖

Emerging enterprise social networking apps:

Finding and Recruiting Workers

See Application Case 14.2 for a representative example

Management Activities and Support

Training

Knowledge Management and Expert Location

e.g., innocentive.com; awareness.com; Caterpillar

Enhancing Collaboration

Using Blogs and Wikis Within the Enterprise …>


Implications of Business and Enterprise Social Networks

Survey shows that best-in-class companies use blogs and wikis for the following applications:

Project collaboration and communication (63%)

Process and procedure document (63%)

FAQs (61%)

E-learning and training (46%)

Forums for new ideas (41%)

Corporate-specific dynamic glossary and terminology (38%)

Collaboration with customers (24%)


Virtual Worlds

Virtual worlds have existed for a long time in various forms — stereoscopes, Cinerama, simulators, computer games, …

They are artificial worlds created by computer systems in which the user has the impression of being immersed

Examples:

Second Life (secondlife.com)

Google Lively (lively.com)

EverQuest (everquest.com)

Avatars ?


Second Life as a DSS

Advantages:

Easy access and low cost

Experienced and dedicated designer/builders

Tools and venues for communications-driven decision support (DecisionSupportWorld.com)

A large, dedicated user base

Impression management / creativity enhancement

Time compression

Easy data integration from real life using RSS feeds

Encourages active participation and experiential learning


Second Life as a DSS

Disadvantages:

Learning time and training costs

Distractions are numerous

Pranksters and spam are common

Technology problems persist

Chat is a very slow communication tool

Resistance to use

Addiction

Participation in most of these virtual environments requires downloading of a "plug-in"


Virtual Tradeshows

See iTradeFair.com


Social Networks and BI: Collaborative Decision Making

Collaborative decision making (CDM) – combines social software and BI

CDM is a category of decision-support system for non-routine, complex decisions that require iterative human interactions.

Ad hoc tagging regarding value, relevance, credibility, and decision context can substantially enrich both the decision process and the content that contributes to the decisions.

Tying BI to decisions and outcomes that can be measured will enable organizations to better demonstrate the business value of BI.


How CDM Works


RFID and BI

Wal-Mart's RFID mandate in June 2003

DoD, Target, Albertson's, Best Buy,…

RFID is a generic technology that refers to the use of radio frequency waves to identify objects.

RFID is a new member of the automatic identification technologies family, which also includes the ubiquitous barcodes and magnetic strips.


How does RFID work?

RFID system

a tag (an electronic chip attached to the product to be identified)

an interrogator (i.e., reader) with one or more antennae attached

a computer (to manage the reader and store the data captured by the reader)

Tags

Active tag versus Passive tags


Data Representation for RFID

RFID tags contain 96 bits of data in the form of serialized global trade identification numbers (SGTIN) [see epcglobalinc.org]


RFID for Supply Chain BI

RFID in Retail Systems

Functions in a distribution center

receiving, put-away, picking, and shipping

Sequence of operations at a receiving dock

1. unloading the contents of the trailer

2. verification of the receipt of goods against expected delivery (purchase order)

3. documentation of the discrepancy

4. application of labels to the pallets, cases, items

5. sorting of goods for put-away or cross-dock


RFID for Supply Chain BI



RFID Data Sample



RFID for BI in Supply Chain

Better SC visibility with RFID systems

Timing/duration of movements between different locations – especially important for products with limited shelf life

Better management of out-of-stock items (optimal restocking of store shelves)

Help streamline the backroom operations: eliminate unnecessary case cycles, reorders

Better analysis of movement timings for more effective and efficient logistics


RFID + Sensors for Better BI

Knowing the location and health of goods (i.e., exception) during transportation


Reality Mining

Identifying aggregate patterns of human activity trends (see sensenetworks.com by MIT & Columbia University)

Many devices send location information

Cars, buses, taxis, mobile phones, cameras, and personal navigation devices

Using technologies such as GPS, WiFi, and cell tower triangulation

Enables tracking of assets, finding nearby services, locating friends/family members, …


Reality Mining

Citisense: finding people with similar interests

See www.sensenetworks.com/citysense.php for real-time animation of the content.

A map of an area of San Francisco with density designation at place of interests

http://www.sensenetworks.com/citysense.php

http://www.sensenetworks.com/citysense.php


End of the Chapter

Questions, comments


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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

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