1 Business Intelligence Strategy and Technologies

2 Competitive Forces Customers or Buyers Suppliers Competitors New Entrants Substitutes

3 Competitive Strategies Low Cost Leadership –Ex: Wal-Mart, Target, Early Japanese Cars, Recent South Korean Cars Product Differentiation –Ex : Mercedes, Pavilion, Rolex, etc. Product Innovation/Focus –Ex: i-Phone, Stick Notes, CD’s, etc. Growth –Ex: Amazon Alliance –Ex: Amazon and Borders, Virtual Companies, etc.

4 Strategy is not Static! Low Cost Differentiation Innovation GROWTH ALLIANCE

5 Value Activities n Porter’s idea of organizational activities as value adding activities n Two sets of activities : Primary and Support activities n Primary activities : directly related to the product n Support activities : organizational infrastructure

6 Value Activities

7 n Primary Activities •Inbound Logistic •Production/Operations •Outbound Logistic •Marketing and Sales •After Sales Service

8 Value Activities n Support Activities n Management and Administration n Human Resource n Research and Development n Purchasing/Procuring Resources

9 BI for Competitive Intelligence and Advantage The Strategic Imperative of BI –Barriers to entry of a new competitor are being significantly diminished –Because of the Web revolution and increasing globalization, companies throughout the world are challenging major players in industries –The ability to deliver goods worldwide is making it easier for potential competitors to get products and services to more customers almost anywhere –Companies are finding better or less expensive suppliers all over the globe

10 Successful Business Intelligence Implementation Appropriate Planning and Alignment with the Business Strategy –Planning and execution components Business Organization Functionality Infrastructure Establish a BI Competency Center (BICC) within the Company

11 BI: Layers of Capabilities with I/O Organizational Memory Information Integration Insight Creation Presentation Data, Information, Explicit knowledge Historical and summary information, Coded knowledge Real time data, Unstructured data Synthesized information, Coded knowledge Business Rules User inputs New Insights, DSS support Business Rules User inputs New Insights, DSS support in a user friendly fashion

12 BI: Layers of Capabilities and Technology Organizational Memory Information Integration Insight Creation Presentation Data Warehousing ERP Knowledge Repositories Content Management Systems Document Management Systems OLTP Environmental Scanning Text Mining Web Data POS and RFID Data Mining Business Analytics Quantitative Modeling OLAP Dashboards Scorecards