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Business Intelligence

Business Intelligence. Presented By: Stephanie Schwartz, Khairil Fahrvrrazi, Kevin Ruzicka, Ashley Stead. 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:

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Business Intelligence

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  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-business-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?articleID=181501564, 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 corporation’s 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 Burns, M., “Accounting for Business” CA Magazine, Vol. 136, 3, Apr 2003, pp. 37-38 http://www.businessintelligence.com/print_news.asp?id=2171, viewed April 6, 2007 April 18, 2007 8

  9. OLTP – Online Transaction Processing OLAP – Online Analytical Processing 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 don’t 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 don’t 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 1970’s • Application-centric approach • 2nd Generation • Late 1980’s • 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 1990’s 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 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 PC’s 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/Information%20Services%20jan%2006.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 king’s 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 Di Bernardo, L., “The 2003 Information Management Project Awards” Database Marketing & Customer Strategy Management Vol. 12, 1, P.58-62

  42. OLTP – Online Transaction Processing OLAP – Online Analytical Processing 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 don’t 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-business-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?id=2171, 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/Information%20Services%20jan%2006.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?articleID=181501564, viewed April 6, 2007 April 18, 2007 44

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