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Title: Business%20Intelligence


1
Business Intelligence
  • Presented By Stephanie Schwartz, Khairil
    Fahrvrrazi, Kevin Ruzicka, Ashley Stead

2
Session Objective
  • To Understand
  • The meaning of Business Intelligence (BI)
  • Why BI is important to General Managers
  • The promised benefits and challenges of BI
  • To Visualize
  • Continental Airlines
  • Tyneside NHS Trust

3
Priority Status of Business Intelligence
Business intelligence will be the top spending
priority for IT executives in 2007
Top IT Spending Priorities Item 05 06
Application Integration 2 1 Security
SW Svcs. 1 2 Bus. Intelligence
5 3 BPM 19 4 SOA 13 5
Source Saugatuck Technology. Results based on
web survey of over 200 senior business and IT
executives, November, 2005.
Annual Revenues 1.0B
http//www.networkworld.com/news/2007/011207-busin
ess-intelligence.html, viewed April 6,
2007 Guptill, B., User Executives Raise Business
Intelligence Prioritization Saugatuck
Technology, January 2006, pp. 1-2
4
Cost of Business Intelligence
Data InformationWeek Research business
intelligence survey of 230 business technology
professionals, March 2006
http//www.financetech.com/showArticle.jhtml?artic
leID181501564, viewed April 6, 2007
April 18, 2007
4
5
Cost of Business Intelligence
Data InformationWeek Research business
intelligence survey of 230 business technology
professionals, March 2006
April 18, 2007
5
6
Cost of Business Intelligence
Data InformationWeek Research business
intelligence survey of 230 business technology
professionals, March 2006
April 18, 2007
6
7
What is Business Intelligence?
  • Business Intelligence
  • Gathers important data
  • Consolidates the data into one location
  • Easily accessed and analyzed for decision making
  • Serves as one version of truth
  • Turning data into information that is useful to
    make decisions
  • BI essentially supports a corporations
    transition from being data rich and information
    poor, to becoming information rich and capable of
    better fact-based decision making

Burns, M., Accounting for Business CA Magazine,
Vol. 136, 3, Apr 2003, pp. 37-38 Abukari, K. and
Job, V., Business Intelligence In Action CMA
Management, Vol. 77,1, Mar 2003, pp. 15
8
Best Practices of Business Intelligence
Six Steps for Successful BI
1.) Pinpoint the organizations key factors to focus on using Business Intelligence
2.) Find the various data resources from which information will be extracted
3.) Extract, Load, Transfer Data (ELT)
4.) Choose a method for reporting
5.) Establish reporting that will be considered standard across the Organization
6.) Arrange for deployment across theorganization
Burns, M., Accounting for Business CA Magazine,
Vol. 136, 3, Apr 2003, pp. 37-38 http//www.busine
ssintelligence.com/print_news.asp?id2171, viewed
April 6, 2007
April 18, 2007
8
9
Visual of Business Intelligence
http//www.obs3.com/why_olap.shtml, viewed March
29, 2007
10
Visual of Business Intelligence
11
Importance to General Managers
  • BI is a valuable tool in strengthening the
    position of stakeholders
  • Important information gathered into a one stop
    shop
  • Important information available at opportune
    times
  • Important information available for strategic use
  • In sum, BI is an enterprise-wide strategy that
    supports reporting, analysis and decision making
    on multiple levels. It supports
    organization-wide analysis, which in turn leads
    to insight, action, and the proper measurement of
    results.

Abukari, K. and Job, V., Business Intelligence
In Action CMA Management, Vol. 77,1, Mar 2003,
pp. 15
12
Promised Pros of Business Intelligence
  • BI enhances decision making
  • More appropriate information in a timely fashion
  • Can consolidate information typically difficult
    to use in analysis due to its primary location
  • Decisions made using these facts may lead to a
    competitive advantage
  • BI results in time savings and efficiency

http//www.camagazine.com/index.cfm/ci_id/26573/la
_id/1/print/true.htm, viewed April 4,
2007 Stoller, J., What you dont know can hurt
you CMA Management, Vol. 79, 3, 2005pp.46-47
13
Management Report (Dashboard)
14
Online Analytical Processing (OLAP)
15
Challenges of Business Intelligence
  • Most businesses still dont use BI strategically
  • Users will not automatically see the benefits of
    BI
  • Users are attached to what they already use
    SPREADSHEETS
  • Data quality needs attention

Burns, M., Accounting for Business CA Magazine,
Vol. 136, 3, Apr 2003, pp. 37-38
16
Three Generations of Business Intelligence
  • 1st Generation
  • Decision Support Systems (DSS)
  • Early 1970s
  • Application-centric approach
  • 2nd Generation
  • Late 1980s
  • Data-centric approach
  • 3rd Generation
  • Real time data warehousing

Watson, Wixom, Hoffer, Anderson-Lehman Reynolds
(2006) French Turoff (2007) Frolick Brown
(2006)
17
What is a Data Warehouse?
  • Warehouses integrate data from various
    operational systems
  • Have become standard in most large companies
  • Businesses are not the only ones using data
    warehouses, they are also very useful for schools
  • Proving to be such a great advantage that
    businesses are willing to pay millions of dollars
    for them

Watson, Wixom, Hoffer, Anderson-Lehman Reynolds
(2006) French Turoff (2007) Frolick Brown
(2006)
18
Real-Time BI
  • Before Real-Time BI, data was used to determine
    what had already happened.
  • Real time is used for current decisions.
  • Purpose is to increase revenue and decrease
    costs.
  • Companies who can successfully implement
    Real-Time BI can dramatically improve their costs.

Watson, Wixom, Hoffer, Anderson-Lehman, and
Reynolds (2006)
19
Continental Airlines Background
  • Founded in 1934
  • Fifth largest airline in U.S., seventh largest in
    the world
  • Early 1990s business problems
  • Go Forward plan is implemented
  • Went from worst to first, goal then becomes
    first to favorite.

Watson, Wixom, Hoffer, Anderson-Lehman, and
Reynolds (2006)
20
Continental Airlines Role of Information
Technology
  • 1998 an enterprise data warehouse is developed
  • Not real-time
  • Not outsourced
  • Warehouse created significant lift in areas of
    the Go Forward Plan
  • Need for real-time became apparent
  • Warehouse team prepared for move

Watson, Wixom, Hoffer, Anderson-Lehman, and
Reynolds (2006)
21
Continental Airlines How Real-Time BI Helped
  • Five Categories of Improvement
  • Revenue and management
  • Customer relationship and marketing
  • Crew operations and payroll
  • Security and fraud
  • Flight operations

Watson, Wixom, Hoffer, Anderson-Lehman, and
Reynolds (2006)
22
Continental Airlines Flight Management Dashboard
  • Example of how Continental used Real-Time BI to
    improve their business
  • Set of interactive graphical displays
  • -Quickly identify issues so that customer
    satisfaction and airline profitability can be
    improved

Watson, Wixom, Hoffer, Anderson-Lehman, and
Reynolds (2006)
23
Continental Airlines Ex Logistics of the
Flight Management Dashboard
  • Graphical depiction of a concourse
  • Assesses where high value customers are or soon
    will be in a particular airport hub
  • Indicates where there may be potential gate
    problems
  • Airport employees able to assist high value
    customers so that they and their luggage avoid
    missing flights.

Watson, Wixom, Hoffer, Anderson-Lehman, and
Reynolds (2006)
24
Watson, Wixom, Hoffer, Anderson-Lehman, and
Reynolds (2006)
25
Continental Airlines More Examples of
Improvement
  • Operations department able to keep flight
    arrivals and departures on time
  • Shows the traffic volume between the 3
    continental hub stations
  • Operations can anticipate where services need be
    expected
  • All elements can be broken down to show more
    detail

Watson, Wixom, Hoffer, Anderson-Lehman, and
Reynolds (2006)
26
Watson, Wixom, Hoffer, Anderson-Lehman, and
Reynolds (2006)
27
Continental Airlines Learnings Take Aways
  • Clear technical, business, and process changes
    must be put into place to enable Real-Time BI
  • Find a clear business need for decisions that
    require real-time data
  • Invest in an architecture that can scale and
    automate as much of the environment as possible
  • Perform a value assessment to support the
    investment in Real-Time BI
  • applications that can leverage real-time B.I. by
    impacting business process to create value to an
    organization will represent the third generation
    of decision support

Watson, Wixom, Hoffer, Anderson-Lehman, and
Reynolds (2006)
28
Continental Airlines Linkage to Best Practices
1.) Pinpoint the organizations key factors to focus on using Business Intelligence   Go Forward Plan and then eventually the First to Favorite plan.
2.) Find the various data resources from which information will be extracted   The Five Categories -revenue management and accounting -customer relationship management -crew operations and payroll -security and fraud -flight operations
3.) Extract, Load, Transfer Data (ELT)   Data warehouse
4.) Choose a method for reporting Flight Management Dashboard
5.) Establish reporting that will be considered standard across the organization   Flight Management Dashboard
6.) Arrange for deployment across the organization   1998 enterprise data warehouse created for all employees
Watson, Wixom, Hoffer, Anderson-Lehman, and
Reynolds (2006)
29
Tyneside NHS Trust Overview
  • Established in 1993
  • Provides community and hospital services
  • Region of South Tyneside which is in northeastern
    England and surrounding areas

http//www.sthct.nhs.uk/
30
Tyneside NHS Trust Key Corporate Facts
  • Staff of 2,500 employees spread among five sites
  • 19 IT staff
  • 13 dedicated to IT
  • 6 dedicated to information
  • All staff now have access to e-mail
  • 1900 PCs available throughout the Trust
  • The Trust has a modern high speed network capable
    of supporting the latest technology such as
    Radiology Digital Images.

Di Bernardo, L., The 2003 Information Management
Project Awards Database Marketing Customer
Strategy Management Vol. 12, 1, P. 58
http//www.sthct.nhs.uk/TrustReports/boardvisits06
/Information20Services20jan2006.pd
31
Tyneside NHS Trust Total Revenue Vs. IT Budget
  • Total Revenues for 2006 were 90,094,000
    (176,689,546 USD)
  • (annual report summary financial statement
    2005-2006, page 22)
  • IT Capital budget for 2006 was 530,000
  • (1,039,419 USD)
  • Dedicated to new information technology
  • Pharmacy computer system
  • Purchase of additional pacs equipment
  • Physiotherapy/occupational therapy coridor. (in
    conjunction with the kings fund)
  • (annual report summary financial statement
    2005-2006, page 23)
  • IT Capital budget as a percent of total revenue
    is 0.59

http//www.sthct.nhs.uk/largedocs/STFT05-06.pdf
32
Tyneside NHS Trust Business Intelligence
Rationalization
  • Healthcare information can literally be a case of
    life or death if treated improperly
  • Performance Management has become a key issue for
    National Health Service (NHS)
  • British government introduced the idea of
    foundation hospitals as part of a payment by
    result scheme
  • Best performing trusts receive a three-star
    status and can then aspire to achieve foundation
    hospital status and greater autonomy
  • South Tyneside Healthcare NHS Trust still relied
    on spreadsheets to collect data time consuming
    and mistakes easily made

Di Bernardo, L., The 2003 Information Management
Project Awards Database Marketing Customer
Strategy Management Vol. 12, 1, P. 58
33
Tyneside NHS Trust Business Intelligence
Rationalization
  • Tyneside had a need to
  • Ensure an accurate, real-time view of activity
    within the hospital
  • Provide up-to-date patient records 24/7
  • -includes critical information, such as all
    drugs prescribed to the patient at the hospital.
  • Combine patients hospital records with their GP
    records
  • Supply the number of babies born in the hospital
  • Feed accurate information to the Key Performance
    Indicators set out as a measure of success by the
    government

Di Bernardo, L., The 2003 Information Management
Project Awards Database Marketing Customer
Strategy Management Vol. 12, 1, P. 59
34
Tyneside NHS Trust Business Intelligence
Implementation
  • Tyneside wanted a single, unquestionable method
    of producing all of the data its management needs
    in order to ensure the best possible service for
    all of its patients.
  • South Tyneside Healthcare NHS Trust decided to
    invest in business intelligence (BI) tools to
    provide a clearer view of its performance and to
    help with complex amounts of data that it gathers
    and holds.

Di Bernardo, L., The 2003 Information Management
Project Awards Database Marketing Customer
Strategy Management Vol. 12, 1, P. 58
35
Tyneside NHS Trust Benefit of Business
Intelligence Implementation
  • Implemented a real time analysis of key patient
    data
  • South Tyneside Healthcare NHS Trust can now
    obtain a comprehensive overview of performance of
    its crucial departments
  • Trust managers receive an instant warning message
    on their desktops if departments are
    under-performing
  • Gives them the ability to know to contact
    hospital consultants for immediate action

Di Bernardo, L., The 2003 Information Management
Project Awards Database Marketing Customer
Strategy Management Vol. 12, 1, P. 58
36
Tyneside NHS Trust Executive Impressions
Healthcare intelligence is not simply about
managing medical records and patients address,
but also measuring performance quality and
reviewing essential business function. It allows
managers and consultants to ensure that each and
every patient has accurate records and receive
follow-up treatment when necessary. -Martin
Alexander, Head of Information Service, South
Tynside Healthcare NHS Trust It is this
breadth of access to management information, and
the resulting ability to change information into
knowledge that supports the decision-making
process, that is so impressive. Cognos Metrics
Manager gives us the corporate view of our
operations, while Power Play and Impromptu
provide direct drill through to operational data
that managers need to deliver effective
service. -Mike Robson, Executive Director of
Corporate Governance, South Tyneside Healthcare
NHS Trust
Di Bernardo, L., The 2003 Information Management
Project Awards Database Marketing Customer
Strategy Management Vol. 12, 1, P. 59-60
37
Tyneside NHS Trust Plan for the Future of
Business Intelligence
  • Meet technological challenges
  • National Information Management
  • Technology Strategy Information for Health
  • Implementation of Electronic Patient Record
  • Implementation of electronic appointment booking
  • Tyneside with Bide Time
  • Create NHS Cognos user groups
  • Enable user groups to share their information
    centrally

http//www.sthct.nhs.uk/aboutSTHCT/about_sthct.htm
Di Bernardo, L., The 2003 Information
Management Project Awards Database Marketing
Customer Strategy Management Vol. 12, 1, P. 61
38
Tyneside NHS Trust Key Learning Points
  • Organizations are still attempting to manage
    increasingly complex businesses and service
  • Historically, systems keep vital data in
    information silos
  • In the worst cases, bits of data
  • held in different formats
  • by different people
  • on incompatible software
  • So whenever any cross-over between the data sets
    is sought, it becomes a major and costly exercise
    to carry out.
  • There is a need to centralize data and make
    available to all users
  • A growing trend towards the sort of sweeping up
    data
  • If it is to be successful needs to be about far
    more than feeding all the data into one system

Di Bernardo, L., The 2003 Information Management
Project Awards Database Marketing Customer
Strategy Management Vol. 12, 1, P. 61-62
39
Tyneside NHS Trust Key Learning Points
  • Success Depends On
  • Process
  • System
  • Discipline
  • Management understanding
  • Importance of Data
  • Data Integrity
  • Data Maintenance

Di Bernardo, L., The 2003 Information Management
Project Awards Database Marketing Customer
Strategy Management Vol. 12, 1, P. 61-62
40
Tyneside NHS Trust Key Learning Points
  • Tyneside adopted technical features
  • Central web-enabled database
  • Good reporting capabilities
  • Ability to interface with other packages
  • Two caveats
  • Case study written from the technological side
  • -Perhaps a red flag for the future however good
    the technology, without equal emphasis on and
    investment in the underlying systems and
    processes, there is a very real chance of
    long-term failure
  • Too many eggs are being placed in one basket
  • -By pulling so much information together, the
    organization seem to be crossing information that
    is literally life and death, with the more
    mundane car parking statistics for the hospital
    car park, possibly.

Di Bernardo, L., The 2003 Information Management
Project Awards Database Marketing Customer
Strategy Management Vol. 12, 1, P. 61-62
41
Tyneside NHS Trust Linkage to Best Practices
1.) Pinpoint the organizations key factors to focus on using Business Intelligence   Single, unquestionable method of producing data management needs to service customers
2.) Find the various data resources from which information will be extracted   Activity database, patient records database
3.) Extract, Load, Transfer Data (ELT)   Realized that success depends on data integrity and data maintenance
4.) Choose a method for reporting   Accurate real-time analysis generated from one system
5.) Establish reporting that will be considered standard across the organization   Dashboard and Management reporting implemented for better manager awareness and efficiency
6.) Arrange for deployment across the organization   Adopted a central web-based system that users across the organization can access
Di Bernardo, L., The 2003 Information Management
Project Awards Database Marketing Customer
Strategy Management Vol. 12, 1, P.58-62
42
Business Intelligence - Conclusion
In sum, BI is an enterprise-wide strategy that
supports reporting, analysis and decision making
on multiple levels. It supports
organization-wide analysis, which in turn leads
to insight, action, and the proper measurement of
results.
Abukari, K. and Job, V., Business Intelligence
In Action CMA Management, Vol. 77,1, Mar 2003,
pp. 15 http//www.obs3.com/why_olap.shtml, viewed
March 29, 2007
43
References Peer Reviewed
  • Abukari, K. and Job, V., Business Intelligence
    In Action CMA Management, Vol. 77,1, Mar 2003,
    pp. 15
  • Brown, Justine (2006). Too Much Information. T H
    E Journal,33, 40-46.
  • Burns, M., Accounting for Business CA Magazine,
    Vol. 136, 3, Apr 2003, pp. 37-38
  • Di Bernardo, L., The 2003 Information Management
    Project Awards Database Marketing Customer
    Strategy Management Vol. 12, 1, P. 58-62
  • French, Simon Turoff, Murray (2007). Decision
    Support Systems. Communications of the ACM,3,
    39-40.
  • Frolick, Mark N Brown, Carol V (2006). From
    the Editors. Information Systems Management,23,
    5-6.
  • Jukie, Nenad (2006). Modeling Strategies and
    Alternatives for Data Warehousing Projects.
    Communications of the ACM, 49, 83-88.
  • Stoller, J., What you dont know can hurt you
    CMA Management, Vol. 79, 3, 2005pp.46-47
  • Watson, Hugh Wixom, Barbara Hoffer, Jeffery
    Anderson-Lehman, Ron Reynolds, Ann Marie
    (2006). Real-Time Business Intelligence Best
    practices at Continental Airlines. Information
    Systems Management, 23, 7-18.
  • http//www.camagazine.com/index.cfm/ci_id/26573/la
    _id/1/print/true.htm, viewed April 4, 2007

44
References Other
  • Guptill, B., User Executives Raise Business
    Intelligence Prioritization Saugatuck
    Technology, January 2006, pp. 1-2
  • http//www.networkworld.com/news/2007/011207-busin
    ess-intelligence.html, viewed April 6, 2007
  • InformationWeek Research business intelligence
    survey of 230 business technology professionals,
    March 2006
  • http//www.businessintelligence.com/print_news.asp
    ?id2171, viewed April 6, 2007
  • http//www.obs3.com/why_olap.shtml, viewed March
    29, 2007
  • http//www.sthct.nhs.uk/
  • http//www.sthct.nhs.uk/TrustReports/boardvisits06
    /Information20Services20jan2006.pd
  • http//www.sthct.nhs.uk/largedocs/STFT05-06.pdf
  • http//www.sthct.nhs.uk/aboutSTHCT/about_sthct.htm
  • http//www.financetech.com/showArticle.jhtml?artic
    leID181501564, viewed April 6, 2007

April 18, 2007
44
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