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Chapter Eleven

Chapter Eleven. Business Intelligence: The Next Generation of Knowledge Management. Introduction. Knowledge neither product nor capability; a critical framework of a fully evolved information economy

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Chapter Eleven

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  1. Chapter Eleven Business Intelligence:The Next Generation ofKnowledge Management

  2. Introduction • Knowledge neither product nor capability; a critical framework of a fully evolved information economy • WalMart has a 100-terabyte data warehouse to monitor and capture each transaction in each store for better inventory mgmt; improved collaboration with supplier; merchandise on individual store basis; and to provide superior shopper satisfaction • Success from anticipating customer needs before they do • First gen e-business apps focus on buying and selling goods via Web • Second gen apps focus on gaining insights from organizations’ data collected from each transaction • Customer loyalty, enhance profitability • Interpret past transactions and use the knowledge to support decisions about the direction the company should be headed www.ebstrategy.com

  3. Evolution of Knowledge Mgmt Apps • Companies want apps to make sense of the data gathered • How to make effective use of raw data • How to convert raw data into revenue • Foundation of KM: information sorting, extraction, packaging, and dissemination • Reactive, data centric to proactive, query-driven knowledge world Wave 5 Business Intelligence Wave 4 E-commerce & Click Stream Analysis Wave 3 Extranets & Inter-Enterprise Portals Wave 2 Corporate Intranets & Decision Support Portals Wave 1 Group Memory Systems www.ebstrategy.com

  4. Wave 1: Group Memory Systems • Sharing of info throughout the company • Buzzword of 90s • Discussion boards, bulletin systems, corporate intranets • Instant access to data and reporting info that had previously taken days or weeks to obtain • Core: Lotus Notes and Instraspect apps • Failed to live up to promise • Few can define it • Software vendors distancing themselves from GM • Costly efforts not delivering expected ROI www.ebstrategy.com

  5. Wave 2: Corporate Intranets and Decision Support Portals • For complete and uniform linkage of data resources scattered throughout the organization • Intranets alone don’t create knowledge • Data analysis necessary • Decision support portals to automate predictable components of decision maker’s routine • Pre-requisite for responsive business model: Decision support portals built on intranets • Home Depot • Decision makers can ask and answer mission-critical questions about business using transaction data assets that have been captured, not exploited to fullest extent www.ebstrategy.com

  6. Wave 3: Extranets and Interenterprise Portals • Fast info access, customized data and responsiveness driving extranets • New requirements: manage huge data volumes, data breadth coverage, cross-platform support, response-time speed, and broad range of interface choice • DaimlerChrysler • Extranet apps encourage trading partners to improve profits by managing inventories in supply chain • preferential treatment for visibility • Lexmark www.ebstrategy.com

  7. Wave 4: e-Commerce and Click Stream Analysis • User click stream analysis • Marketers need every customer activity and purchase; to be able to analyze, understand their buying preferences; to anticipate their changing expectations • Testing limits of conventional database mgmt; new DBs emerging • Intelligent E-mail management • Kana Communications, eGain, and Siebel • Tracks and manages millions of daily interactions for analyzing, reporting and launching customized initiatives in response www.ebstrategy.com

  8. Wave 4: e-Commerce and Click Stream Analysis • Knowledge Portals • Brio, Business Objects, Cognos, DataChannel, Plumtree, Portera • Call center mgrs to understand historical service trends and customer service patterns, identify problem areas; ultimately increase customer retention rates www.ebstrategy.com

  9. Wave 5: Business Intelligence • Data analytics, coupled with broadcast engine technology, foundation for proactive business intelligence • Anytime, anywhere, any place • BI is proactive and data driven • Automates delivery of info to customers using exception conditions and recurring schedules as triggers for communication • Traditional decision support apps do not personalize info • MicroStrategy’s DSS Broadcaster include new personalization and distribution capabilities • New BI apps turning traditonal query-and-response paradigm of decision support on its head www.ebstrategy.com

  10. Wave 5: Business Intelligence • Next gen BI apps to use ecommerce technology to open up data warehouse to hand-held devices • Prior models relied on static info about customer transactions • Corporations will shift to sense and respond infrastructure to serve customers better • For info-based BI models to function well, integration framework necessary to tie knowledge apps www.ebstrategy.com

  11. Wave 5: Business Intelligence: Elements of BI Apps Real-time Personalization Engine Analysis & Segmentation Engine Web Email Prospect or Customer VRU Broadcast, Retrieval, and Interaction Engine Fax Telephone Data Organization & Collection Performance Monitoring and Measurement Engine Enterprise Architecture www.ebstrategy.com

  12. Data Organization and Collection • First requirement of a successful BI strategy • Requires visibility into organization’s activities with both internal and external constituencies • data from multiple locations • Factors critical to success of large-scale data integration • Scalability • Flexibility • Performance www.ebstrategy.com

  13. Analysis and Segmentation • These apps offer tools for data mining • Goal is to improve pricing, retain customers longer and find new revenue streams • Travelocity • Many Internet businesses do not have a clue about customer behavior on their Web sites • Collect gigabytes of customer clickstream data every day • For e-business marketing, emphasis on order size and margin • Several industries eager to exploit opportunities • Telecom; BC Telecom www.ebstrategy.com

  14. Real-Time Personalization • Personalization apps emerging • to make businesses responsive to customers’ needs • reduced marginal cost of personalization • Personalization apps allow you to • provide each customer with personalized Web page • display only info you want individual customers to see • proactively notify customers of product improvements and relevant upgrades, promotions, and service enhancements • tailor information and recommendations according to each customer’s individual preferences • deliver personally relevant information related to products that the customers own www.ebstrategy.com

  15. Infrastructure for Broadcast, Retrieval, and Interaction • To proactively deliver info to every customer via medium of their choice • Sabre • Multiple devices proliferating • Both prefabricated and custom-made software can be integrated into the platform Profiling • Show people what you have to offer • Ask customers what they want 1 Matching • Give people what they want • Match content to customer needs 2 Transacting • Allow people to service themselves • Make it easy to do business with you 3 Listen • Incorporate customer feedback • Measure effectiveness 4 www.ebstrategy.com

  16. Performance Monitoring and Measurement • These apps provide managers the info they need to improve operations and strategy • Use KPIs linked to a balanced scorecard • BT • SEM from SAP www.ebstrategy.com

  17. BI in Telecom: Combating Customer Churn • Churn factor forcing providers to process a steady stream of service starts and stops • most acute in ultracompetitive wireless • Churn mgmt to ensure profitable customer stay with company • advanced techniques include ability to predict a given individual’s tendency to select another provider and to define correct course of action to retain the customer www.ebstrategy.com

  18. BI in Retails: Capturing and Reporting Sales Data • Sears, Roebuck and Co. was caught by surprise in 1980s with advent of specialty stores and discount merchandisers • Adopting new technology to support regeneration as a more flexible, market responsive company • In early 1990s, tech infrastructure based on old sales information systems • redundant, conflicting, sometimes obsolete data www.ebstrategy.com

  19. BI in Retails: Capturing and Reporting Sales Data • To survive, forced to embrace BI on a dramatic scale • single data source to capture sales data and generate reports • Built Sales Knowledge app • 1.7-terabyte data warehouse • Replaces 18 major databases running on separate systems • Tracks sales by item and location on a daily basis www.ebstrategy.com

  20. CORE TECHNOLOGIES Networking Scalability RAS UNIX Security Open Standards Technical Elements of BI Framework • Three-Layer BI Solutions Architecture Relationship Management SOLUTIONS Billing / Payment Systems ENABLING TECHNOLOGIES OLAP Advertising / Promotions CORE TECHNOLOGIES HTML/XML Scalability Data Warehousing Messaging Personalization Networking RDBMS Security Data Mining COM/DCOM/DNA CORBA / IIOP Supply Chain Management Knowledge Management Performance Measurement www.ebstrategy.com

  21. Enabling Technologies: OLAP • Provide means to analyze complex data by using a more intuitive set of business rules and dimensions • profitability analysis by product, channel, geography, customer or fiscal period • Insulate user from technical aspects of data storage and data structures • Core process: data entered into a DB is offloaded, reformatted, or accessed in specialized ways to enhance the processing of complex queries www.ebstrategy.com

  22. Core Technologies: Data Warehousing • DWs are repositories of summarized historical data, often extracted from disparate departmental or enterprise DBs • Companies of all sizes finding that data warehouses are essential to running their businesses • GM ProcessLifecycle Design Transform Extract Deliver { Data Scrubbing& Cleansing Transaction Data Extract. Load, Index & Aggregate Publish & Subscribe Partial Functional Solutions Data Replication Data Mining Meta-Data Histories& Summaries Data AccessTools Complete Integrated Solutions Integrated Data Warehouse Applications www.ebstrategy.com

  23. Roadmap for Managers • Identify goals • Determine knowledge sources • Determine info needs • Collect, clean, prepare data • Balance external, internal data • Develop new approaches to categorizing information • Build the data model • Deploy model • Monitor model • Measure ROI www.ebstrategy.com

  24. E-Business Strategies, Inc. www.ebstrategy.com contact@ebstrategy.com 678-339-1236 x201 Fax - 678-339-9793

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