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Data-Driven Business Intelligence Systems: Part II

Data-Driven Business Intelligence Systems: Part II. Week 6 Dr. Jocelyn San Pedro School of Information Management & Systems Monash University. Lecture Outline. On-Line Analytical Processing (OLAP) Executive Information Systems (EIS) EIS Development Framework. Learning Objectives.

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Data-Driven Business Intelligence Systems: Part II

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  1. Data-Driven Business Intelligence Systems: Part II Week 6 Dr. Jocelyn San PedroSchool of Information Management & Systems Monash University IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004

  2. Lecture Outline • On-Line Analytical Processing (OLAP) • Executive Information Systems (EIS) • EIS Development Framework IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 2

  3. Learning Objectives At the end of this lecture, the students will • Have understanding of On-Line Analytical Processing (OLAP) and Executive Information Systems • Have understanding of executive information needs • Have knowledge of EIS development IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 3

  4. On-Line Analytical Processing (OLAP) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 4

  5. On-Line Analytical Processing • Term coined by Codd to highlight differences between transactional processing and analytical processing • Transactional processing of operational data not suitable for answering managerial questions • Provides conceptual and intuitive model • Provides data retrieval at the “speed of thought” • FASMI Test by Pendse (2003) • 12 Rules by Codd, Codd & Salley (1993) • OLAP Council IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 5

  6. On-Line Analytical Processing IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 6

  7. On-Line Analytical Processing FASMI Test by Pendse (2003) • Fast • Analysis • Shared • Multidimensional • Information http://www.olapreprt.com/fasmi.htm IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 7

  8. On-Line Analytical Processing IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 8

  9. On-Line Analytical Processing Storage paradigms to support OLAP • Desktop OLAP (DOLAP) – desktop files • Relational OLAP (OLAP) – relational database servers • Multidimensional OLAP (MOLAP) – multidimensional database servers IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 9

  10. On-Line Analytical Processing IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 10

  11. On-Line Analytical Processing Gray and Watson (1998) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 11

  12. On-Line Analytical Processing Representative OLAP / Multidimensional Analysis Packages • BrioQuery (Brio Technology Inc.) • Business Objects (Business Objects Inc.) • Decision Web (Comshare Inc.) • DataFountain (Dimensional Insight Inc.) • DSS Web (MicroStrategy Inc.) • Focus Fusion (Information Builders Inc.) • InfoBeacon Web (Platinum Technology Inc.) • Oracle xpress Server (Oracle Corporation) • Pilot Internet Publisher (Pilot Software Inc.) • Cognos Reportnet (Cognos) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 12

  13. On-Line Analytical Processing Cognos ReportNet IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 13

  14. IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 14 Hypherion’s Business Performance Management

  15. Executive Information Systems (EIS) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 15

  16. Executive Information Systems • Intended to provide current and appropriate information to support executive decision making • Emphasis is on graphical displays, easy-to-use interface • Designed to provide reports or briefing books to top-level executive • Strong reporting and drill-down capabilities IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 16

  17. Executive Information Systems • Shared decision support systems • Can only support ‘recurring’ information requirements • Very high profile • Relatively expensive IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 17

  18. Executive Information Systems • Tailored to individual executive users • Designed to be easy to operate & require little or no training • Focussed on supporting upper-level management decisions • Can present info in graphical, tabular & text • Provides access to info from broad range of internal & external sources • Provides tools to elicit, extract, filter, & track critical information • Provides a wide range of reports including status reporting, exception reporting, trend analysis, drill down investigation, & ad hoc queries IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 18

  19. Executive Information Systems What an EIS is NOT • It is not a substitute for other computer-based systems. The EIS actually feeds off these systems. • It does not turn the executive suite into a haven for computer “techies”. • It should be viewed by senior management as a trusted assistant who can be called on when and where necessary. IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 19

  20. Executive Information Systems Why Are Top Executives So Different? • They are enterprise-oriented in thinking • The possess the broadest span of control • They are responsible for establishing policy • They represent the organization to the external environment • Their actions have considerable financial and human consequences IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 20

  21. Executive Information Systems Why Are Top Executives So Different? • They are enterprise-oriented in thinking • The possess the broadest span of control • They are responsible for establishing policy • They represent the organization to the external environment • Their actions have considerable financial and human consequences IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 21

  22. Executive Information Systems Executive Information Needs • Disturbance management may require around-the-clock attention. • Entrepreneurial activities require the executive to predict changes in the environment. • Resource allocation tasks require the manager to choose when and where the limited resources are deployed. • Negotiation requires up-to-the-minute info to help build consensus. IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 22

  23. Executive Information Systems Frequency of Executive Activities IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 23

  24. Executive Information Systems Methods for Determining Information Needs Rockart identified five basic methods for determining information needs: • By-Product Method • Null Method • Key Indicator Method • Total Study Method • Critical Success Factors Method IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 24

  25. Executive Information Systems Critical success factors • Concentrate on the most important information requirements • Common technique • Critical success factors (CSF’s) are the few key areas where things must go right in order to achieve objectives and goals • Critical failure factors (CFF’s) are the factors whose existence or lack of existence can contribute to failure IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 25

  26. Executive Information Systems Key Performance Indicators • How do you know how well you are doing against your CSFs? KPI’s • A KPI is a measurement that tells us how we are performing in regard to a particular CSF. • A single CSF may have multiple KPI’s • An EIS is a useful tool for assessing KPIs, and therefore for understanding CSFs. • By concentrating on these critical factors, we have a starting point for systems analysis – we know that CSFs and their KPIs are going to be mandatory information requirements. • Provides structure for requirements elicitation interviews. IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 26

  27. Executive Information Systems General CSF interview approach • Explanation of CSF interview objectives • Interviewee is asked to: • Describe organisational mission and role • Discuss goals • CSF’s are developed • CSF’s priorities are determined • Measures are developed (KPI’s) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 27

  28. Executive Information Systems CSFs & KPI’s in an EIS IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 28

  29. Executive Information Systems Relationship of OLAP to EIS Architecture The Data Warehouse The EIS Executive Workstation Data Cubes Report Templates From Here To Here External Data OLAP IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 29

  30. Executive Information Systems IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 30

  31. Executive Information Systems IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 31

  32. EIS Development Framework IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 32

  33. An EIS Development Framework Watson, et al suggest a framework with three components: • Structural perspective: focus is on people and data as they relate to the EIS. • Development process: the dynamics and interactions are identified. • User-system dialog: contains an action language for processing the commands. IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 33

  34. An EIS Development Framework Some EIS Limitations and Pitfalls to Avoid • Cost: a 1991 survey showed an average development cost of $365,000 with annual operating costs of $200,000. • Technological limitations: the EIS needs to be seamlessly integrated into the company’s current IT architecture, so it is a formidable challenge to the designer. • Organizational limitations: the organizational structure might not be right. IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 34

  35. An EIS Development Framework Organizational Limitations • Agendas and time biases: the EIS represents only part of executive’s total agenda, and it may become easy to be overly reliant on it. • Managerial synchronization: heavy reliance on the timely, ad-hoc, EIS reports may disrupt stable, well-established reporting cycles. • Destabilization: fast EIS response may cause the executive to react too swiftly, leading to less stability in the organization. IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 35

  36. An EIS Development Framework Failure is not an Acceptable Alternative Some factors that contribute to EIS failure: • Lack of management support • Political problems • Developer failures • Technology failures • Costs • Time IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 36

  37. An EIS Development Framework The Future of Executive Decision Making and the EIS Several conditions will merge to transform the technology. Some are easy to predict, some not. Two that we can foresee are: • Increased comfort with computing technology in the executive suite will make innovations more readily accepted. • Broadening of executive responsibilities will broaden the demand for information. IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 37

  38. An EIS Development Framework The EIS of Tomorrow • The intelligent EIS: advances in AI technology will be deployed in the EIS • The multimedia EIS: multimedia databases will allow future integration of text, voice and image • The informed EIS: future EISs will make wider use of data external to the company • The connected EIS: high-bandwidth communication allows greater interconnectivity IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 38

  39. References • Codd, E.F., Codd, S.B., & Salley, C.T. (1993). Providing OLAP (On-line Analytical Processing) to User-Analysts: An IT Mandate. E. F. Codd & Associates at <www.arborsoft.com>. • Gray P. and Watson, H. (1998) Decision Support in the Data Warehouse, Prentice Hall. • Marakas, G.M. (2002). Decision support systems in the 21st Century. 2nd Ed, Prentice Hall • Pendse, N. (2003) What is OLAP? The OLAP Report, http://www.olapreprt.com/fasmi.htm • Vitt, E., Luckevich, M. and Misner, S. (2002) Business Intelligence, Microsoft Corporation. IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 39

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