1 Computer applications in the modern enterprise Επιχειρησιακές Εφαρμογές Η/Υ Lectures 6-9: Get closer to what the real thing is – Business Intelligence as IT application Univ. of the Aegean Financial and Management Engineering Dpt Petros KAVASSALIS

2 What you will learn in this course A set of fundamental concepts and frameworks for understanding the potential impact of information technology (IT) on business strategy and structure A set of fundamental concepts and frameworks for understanding the potential impact of information technology (IT) on business strategy and structure  Computers and Information Systems (IS)  The business value chain  Business integration through Enterprise Application Integration Information Systems in practice: How does the modern enterprise use “Business Intelligence” (BI) systems to improve decision-making Information Systems in practice: How does the modern enterprise use “Business Intelligence” (BI) systems to improve decision-making  Methods and BI examples  “Hands-on” experience: create business reports by using Eclpise BIRT Reporting Tool (

3 Communication tools Course web site: see FME web site Course web site: see FME web site

4 Students evaluation Class Participation (20%) Class Participation (20%)+ Assignments (20%) Assignments (20%)+ Final Exam (60%) Final Exam (60%)

What I am going to say Within the modern enterprise Within the modern enterprise  Inter-organizational relationships  Intra-organizational relationships are supported by Information Technologies are supported by Information Technologies It is about enterprise applications that inter-operate to move information around It is about enterprise applications that inter-operate to move information around  Not only within existing business frontiers but also within the network of the collaborators and customers of an enterprise  Not randomly but in an organized way, within the enterprise architecture framework 5

Enterprise Architecture Framework or Enterprise Application Integration (EAI) or Enterprise Application Integration (EAI)  The organizing logic for) for aligning business operations and IT infrastructure reflecting priorities and other internal decisions (MIT CISR …  For delivering goods and services to the customer It is what makes businesses to differentiate from the competitors It is what makes businesses to differentiate from the competitors IT as strategic business enabler IT as strategic business enabler  IT to improve operational efficiency  IT to meet existing and new business needs IT need investments IT need investments 6

Enterprise architecture 7

Why IT? more You know: You know:  Companies are moving aggressively to computerized support of their operations Why? Why?  Operational efficiency  Better serve customer needs o Leverage new opportunities  More: o o Business pressures (BP) Result of today's competitive business climate o o Organizational Responses (BR) To counter the pressures o o Computerized Decision Support (CDS) To better organize the process of decision making 8

Decisions and Support [Reference: E. Turban et al., 2011, Business Intelligence, Pearson – chapter 1] 9

Business Pressures (BP) [Reference: E. Turban et al., 2011, Business Intelligence, Pearson – chapter 1] 10 FACTORDESCRIPTION FACTORDESCRIPTION MarketsStrong competition MarketsStrong competition Expanding global markets Expanding global markets Blooming electronic markets on the Internet Blooming electronic markets on the Internet Innovative marketing methods Innovative marketing methods Opportunities for outsourcing with IT support Opportunities for outsourcing with IT support Need for real-time, on-demand transactions Need for real-time, on-demand transactions Consumer Desire for customization Consumer Desire for customization demandDesire for quality, diversity of products, and speed of delivery demandDesire for quality, diversity of products, and speed of delivery Customers getting powerful and less loyal Customers getting powerful and less loyal TechnologyMore innovations, new products, and new services TechnologyMore innovations, new products, and new services Increasing obsolescence rate Increasing obsolescence rate Increasing information overload Increasing information overload Social networking, Web 2.0 and beyond Social networking, Web 2.0 and beyond SocietalGrowing government regulations and deregulation SocietalGrowing government regulations and deregulation Workforce more diversified, older, and composed of more women Workforce more diversified, older, and composed of more women Prime concerns of homeland security and terrorist attacks Prime concerns of homeland security and terrorist attacks Necessity of Sarbanes-Oxley Act and other reporting-related legislation Necessity of Sarbanes-Oxley Act and other reporting-related legislation Increasing social responsibility of companies Increasing social responsibility of companies Greater emphasis on sustainability Greater emphasis on sustainability

Organizational Responses Organizations should be Organizations should be  Reactive  Anticipative  Adaptive  Proactive Support executives and work practice with exact knowledge on “what is going on” in each area of operation, process etc. Support executives and work practice with exact knowledge on “what is going on” in each area of operation, process etc. More general: Business action needs computerized support More general: Business action needs computerized support  Please give examples o From a Bank o Insurance o Tourism industry 11

Computerized Decision Support Informing about the reality Informing about the reality  See New York Municipality site (CPR) Rationalizing and improving the decision-making process Rationalizing and improving the decision-making process Closing the gap between the current performance of an organization and its desired performance (i.e. where do we want to go?) Closing the gap between the current performance of an organization and its desired performance (i.e. where do we want to go?)  as expressed in its mission, objectives, and goals, and the strategy to achieve them 12

Business Intelligence: definition (1) BI is an evolution of decision support concepts over time BI is an evolution of decision support concepts over time  Meaning of EIS/DSS… o Then: Executive Information System o Now: Everybody’s Information System (BI) BI is an umbrella BI is an umbrella  Architectures  Tools  Applications  Methodologies BI systems are enhanced DSS with additional visualizations, alerts, and performance measurement capabilities BI systems are enhanced DSS with additional visualizations, alerts, and performance measurement capabilities The term BI emerged from industry apps The term BI emerged from industry apps 13

Business Intelligence: definition (2) BI's objective is to enable easy access to data (and models) to provide business managers and key workers with the ability to conduct analysis BI's objective is to enable easy access to data (and models) to provide business managers and key workers with the ability to conduct analysis BI helps transform data: BI helps transform data:  to information (and knowledge)  to decisions and finally to action BI app components BI app components   Data warehouse, with its source data   Business Analytics, a collection of tools for manipulating, mining, and analyzing the data in the data warehouse;   User Interface (e.g., dashboard)   + Business Performance Management (BPM) for monitoring and analyzing performance 14

Business Intelligence: architecture 15

BI from the Univ. of Michigan [ nscript=true] 16

BI example [ 17

BI LifeCycle (1) Starts here Planning ΗΠΑ: Department of Defense

BI LifeCycle (2) Planning / Tasking Planning / Tasking Data Collection Data Collection Processing & Exploitation Processing & Exploitation Analysis Analysis Iterative process Iterative process Production – Dissemination Production – Dissemination Use Use 19

BI LifeCycle: Planning & Data Collection Planning Planning  Why? Who will use it?  Expected Results o Reports o Web Site o More?  Project Design  Time Plan Data Collection Data Collection  Preparation Phase o Data Sources o Collection Period  Familiarization with Data o Data Cataloging o Sources Cataloging o Filtering 20

BI LifeCycle: Processing & Exploitation 21 Data from External Sources Howson: Successful Business Intelligence {ETL: extract, transform, load}

BI LifeCycle: Processing & Exploitation (cont.) 22 E Turban et al: Business Intelligence, Pearson

BI LifeCycle: Analysis [Business Analytics, BA] Wikipedia Wikipedia  Business analytics makes extensive use of data, statistical and quantitative analysis, explanatory and predictive modeling, and fact- based management to drive decision making. Analytics may be used as input for human decisions or may drive fully automated decisions. Business intelligence is analyticsstatistical quantitativepredictive modelingdecision makinganalyticsstatistical quantitativepredictive modelingdecision making  Querying Querying Querying  Report Design (dashboards and scorecards)  Alerts  Cube Analysis (OLAP) OLAP 23

BI LifeCycle: Production & Dissemination 24

In a nutshell 25 S. Ottl: Emerging Trends in Business Analytics and Business Intelligence Process Time Action Time Analysis Time Technical Staff Managers Executives Managers Executives Field Users

BA example [ ndex.html] 26