Business Intelligence in the Broader Information Technology Context 6 th Meeting Course Name: Business Intelligence Year: 2009

Bina Nusantara University 3 (1). Williams, Steve & Williams, Nancy (2007). The Profit Impact of Business Intelligence. Chapter 6 Source of this Material

The mission of IT is to support the business. IT and business executives often speak different languages. IT concept that have a very specific meaning to IT people often gave little resonance for business people and vice versa. Figure 6-1 illustrates this language gap. Bina Nusantara University 4 Where BI Fits in the Information Technology Portfolio Figure 6-1

Bina Nusantara University 5 Where BI Fits in the Information Technology Portfolio (cont…) In the face of such complexity and risk, leading companies have adapted portfolio management techniques to the task of managing IT. The IT portfolio can be thought of as all the IT needed to support the business. A depiction of the IT portfolio is shown as Figure 6-2. Figure 6-2

The composition and scope of IT assets required for BI depends on your company’s BI strategy. From a business perspective, a typical BI environment consist of the elements shown in Figure 6-3. Bina Nusantara University 6 Information Technology Assets Required for BI Figure 6-3

Bina Nusantara University 7 Information Technology Assets Required for BI (cont…) The Basic Scope and Configuration of Information Technology Assets for Business Intelligence From a systems engineering perspective, creating a BI asset is a system integration task wherein we add special-purpose BI tools into an existing IT technical infrastructure and we create specialized IT processes to move data along a value chain while preparing it for its intended business uses. A generic (typical) IT technical infrastructure to support BI-driven profit improvement is shown in Figure 6-4. Figure 6-4 highlights the BI assets and BI processes within the IT infrastructure. Figure 6-4 shown some examples of BI applications, including the following:  Subject-Oriented Data Marts  Packed Analytical Applications  Custom Analytical Applications  Embedded Applications  Data Sets for Complex Analyses

Bina Nusantara University 8 Information Technology Assets Required for BI (cont…) Figure 6-4

Bina Nusantara University 9 Information Technology Assets Required for BI (cont…) Key Information Technology Products for BI Many technology investments are made by companies to support BI initiatives, including data profiling tools, metadata repositories, and DW monitoring software.  Database Management Systems  Extract, Transformation, and Loading Tools  Business Intelligence Platforms and Analytical Applications  Analytical Platforms  Data warehouse appliances

The IT environment as including a development environment, a testing and integration environment, and a production environment. The BI environment encompass all of the development, information processing, and support activities required to deliver reliable and highly relevant business information and business analytical capabilities to the Business. Business Intelligence Development Process To support a BI-driven profit improvement program, the organization will need to invest an effective BI and DW development environment. Figure 6-5 shows the general development flow and the required tools. Business Intelligence Production and Support Processes The BI production process is the means by which business information and business analytical capabilities are delivered for use in fact-bases decision processes within core processes that impact profits. The basic BI production process and key tasks are shown in Figure 6-6. Bina Nusantara University 10 BI Environment in The Information Technology Environment

Bina Nusantara University 11 BI Environment in The Information Technology Environment (cont…) Figure 6-5

Bina Nusantara University 12 BI Environment in The Information Technology Environment (cont…) In addition to the BI production process, the need exists for a robust support process that includes maintenance and administration of the BI tools and support to BI users who have encountered BI application errors. Business Intelligence Human Resource To configuring a BI environment that supports a successful BI program, attention also needs to be paid to the BI human resources that are needed to ensure success.

Bina Nusantara University 13 BI Environment in The Information Technology Environment (cont…) Figure 6-6

Bina Nusantara University 14 End of Slide “In the last 15 years, a litany of IT-enable initiatives, from business process reengineering to enterprise resource planning, have elevated the importance of investing strategically in IT…. But while opportunities seem boundless, the resources required by these investments-capital, IT expertise, management focus, and capacity for change-are severely limited.” -Jeanne W. Ross and Cynthia M. Beath, “Beyond the Business Case: Strategic IT Investment”