chapter 6: bi implementation: integration and emerging trends business intelligence: a managerial...
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Chapter 6:Chapter 6:
BI Implementation: BI Implementation:
Integration and Emerging Integration and Emerging TrendsTrends
Business Intelligence: Business Intelligence: A Managerial Approach A Managerial Approach
(2(2ndnd Edition) Edition)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall6-2
Learning ObjectivesLearning Objectives Describe the major business intelligence (BI)
implementation issues List some critical success factors of BI
implementation Describe the importance and issues in
integrating BI technologies and applications Understand the needs for connecting BI
systems with other information systems Define on-demand BI and its
advantages/limitations List and describe representative privacy, major
legal and ethical issues of BI implementation
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall6-3
Learning ObjectivesLearning Objectives Understand Web 2.0 and its characteristics as
related to BI and decision support Understand social networking concepts, selected
applications, and their relationship to BI Describe how virtual world technologies can
change the use of BI applications Describe the integration of social software in BI Know how Radio Frequency Identification (RFID)
data analysis can help improve supply chain management (SCM) and other operations
Describe how massive data acquisition techniques can enable reality mining
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Opening Vignette…Opening Vignette…
“BI Eastern Mountain Sports Increases
Collaboration and Productivity”Company backgroundProblem descriptionProposed solutionResultsAnswer & discuss the case questions
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Opening VignetteOpening VignetteCollaborative Decision Making at Eastern Mountain SportsCollaborative Decision Making at Eastern Mountain Sports
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Implementing BI – An OverviewImplementing BI – An Overview
Decisional Factors in BI Implementation Reporting and analysis tools
Features, functionality, flexibility, scalability Database
Scalability, performance, security ETL Tools
Accessibility, efficiency, usability Costs
Hardware/software, development/training Benefits
Tangibles/intangibles - time saving, improved decisions/operations/customer satisfaction/
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Implementing BI – An OverviewImplementing BI – An Overview
Critical Success Factors for BI Implementationa. Business driven methodology and project
managementb. Clear vision and planningc. Committed management support and
sponsorshipd. Data management and quality issuese. Mapping the solutions to the user
requirementsf. Performance considerations of the BI systemg. Robust and extensible framework
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Managerial Issues Related to BI Managerial Issues Related to BI ImplementationImplementation
1. System development and the need for integration
2. Cost–benefit issues and justification3. Legal issues and privacy4. BI and BPM today and tomorrow5. Cost justification; intangible benefits6. Documenting and securing support
systems7. Ethical issues8. BI Project failures
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall6-9
BI and Integration BI and Integration ImplementationImplementation
Types of Integration Functional integration
different [physically separate] applications are provided/used as if it is a single system
Physical integration packaging the hardware, software, and
communication features required to accomplish functional integration
Primary focus in BI (and in this book) is functional-application integration
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BI and Integration BI and Integration ImplementationImplementation
Why integrate? To better implement a complete BI
system To increase the capabilities of the BI
applications To enable real-time decision support To enable more powerful applications To facilitate faster system development To enhance support activities such as
blogs, wikis, RSS feeds, etc.
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BI and Integration BI and Integration ImplementationImplementation
Levels of BI Integration Functional integration can be within the
same BI or across different BI systems Integration across different BI systems can be
accomplished in a loosely coupled fashion – input output passing, messaging (SOA)
Integration within a BI system is more cohesive with several sub-systems constituting the whole
Embedded Intelligent Systems Serving as the intelligent agents within BI
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Connecting BI Systems to Connecting BI Systems to Databases and Other Enterprise Databases and Other Enterprise SystemsSystems
Virtually every BI application requires database or data warehouse access
Multi-tiered Application ArchitectureMulti-tiered Application Architecture
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Connecting BI Systems to Connecting BI Systems to Databases and Other Enterprise Databases and Other Enterprise SystemsSystems Integrating BI applications and back-end
systems Web scripting languages (e.g., PHP, JSP, ASP) Application integration servers (e.g., WebLogic) Enterprise application integration – integration
of large systems (BI to ERP, SCM, CRM, KM, etc.)
Integrating BI and ERP for DSS ERP captures and stores data BI converts data into
information/knowledge Middleware?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall6-14
On-Demand BIOn-Demand BI
The limitations of Traditional BI Complex, time-consuming, expensive
The On-Demand Alternative On-demand computing = Utility
computing SaaS (Software as a service) Allows SMEs to utilize affordable BI On-demand function alternatives
Internally sharing licenses within a firm Sharing licenses with many firms via an ASP
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Benefits of On-Demand BIBenefits of On-Demand BI
Ability to handle fluctuating demand Flexible use of the BI technology pool
Reduced investment/cost Hardware (servers and peripherals) Software (more features for less) Maintenance (centralized timely updates)
Embodiment of recognized best practices Better flexibility and connectivity with
other systems via SaaS infrastructure Better RIO
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The Limitations of On-Demand BIThe Limitations of On-Demand BI
Integration of vendors’ software with company’s software may be difficult
The vendor can go out of business, leaving the company without a service
It is difficult or even impossible to modify hosted software for better fit with the users’ needs
Upgrading may become a problem You may relinquish strategic data to
strangers (lack of privacy/security of corporate data)
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Issues of Legality, Privacy and Issues of Legality, Privacy and EthicsEthics
Legal issues Liability for the actions of advice provided
by BI Who is liable, if the software advice fails?
Privacy Right to be left alone and the right to be
free from unreasonable personal intrusions Collecting information about individuals The Web and information collection Mobile user privacy Homeland security and individual privacy
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Issues of Legality, Privacy and Issues of Legality, Privacy and EthicsEthics Ethics in Decision Making and Support
Electronic surveillance Software piracy Use of proprietary databases Use of intellectual property such as knowledge Computer accessibility for workers with
disabilities Accuracy of data, information, and knowledge Protection of the rights of users
Use of corporate computers for non-work-related purposes (personal use of Internet while working)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall6-19
Issues of Legality, Privacy and Issues of Legality, Privacy and EthicsEthics
Typical problem formulation
(T.O.P perspective)
Integration of moral intensity
components
Problem formulation expansion
Conversation
Typical problem formulation
(T.O.P perspective)
Stakeholder expansion
Problemdefinition
“Unfolding” to control expansion
S
SS
S
SS
= Stakeholder
S
A Model of Ethical Problem FormulationA Model of Ethical Problem Formulation
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Emerging Topics in BI – An Emerging Topics in BI – An OverviewOverview
Web 2.0 revolution as it relates to BI in (Section 6.7)
Online social networks (Section 6.8) Virtual worlds as related to BI (Section
6.9) Integration social networking and BI
(Section 6.10) RFID and BI (Section 6.11) Reality Mining (Section 6.12)
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall6-21
Emerging Topics in BI – An Emerging Topics in BI – An OverviewOverviewThe Future of BIThe Future of BI
Web 2.0 revolution as it related to BI (Section 6.7)
Online social networks (Section 6.8) Virtual worlds as related to BI (Section
6.9) Integration social networking and BI
(Section 6.10) RFID and BI (Section 6.11) Reality Mining (Section 6.12)
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Emerging Topics in BI – An Emerging Topics in BI – An OverviewOverview In 2009, collaborative decision making emerged as a new
product category that combines social software with business intelligence platform capabilities.
In 2010, 20 percent of organizations will have an industry-specific analytic application delivered via software as a service as a standard component of their business intelligence portfolio.
By 2012, business units will control at least 40 percent of the total budget for BI.
By 2012, one-third of analytic applications applied to business processes will be delivered through coarse-grained application mashups.
Because of lack of information, processes, and tools, through 2012, more than 35 percent of the top 5,000 global companies will regularly fail to make insightful decisions about significant changes in their business and markets.
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The Web 2.0 RevolutionThe Web 2.0 Revolution Web 2.0: a popular term for describing
advanced Web technologies and applications, including blogs, wikis, RSS, mashups, user-generated content, and social networks
Objective: enhance creativity, information sharing, and collaboration
Difference between Web 2.0 and Web 1.xUse of Web for collaboration among Internet users and other users, content providers, and enterprises
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The Web 2.0 RevolutionThe Web 2.0 Revolution Web 2.0: an umbrella term for new
technologies for both content as well as how the Web works
Web 2.0 has led to the evolution of Web-based virtual communities and their hosting services, such as social networking sites, video-sharing sites
Companies that understand these new applications and technologies—and apply the capabilities early on—stand to greatly improve internal business processes and marketing
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The Web 2.0 RevolutionThe Web 2.0 RevolutionCharacteristics of the Web 2.0Characteristics of the Web 2.0 The ability to tap into the collective intelligence of
users. The more users contribute, the better. Data is made available in new or never-intended
ways. Web 2.0 data can be remixed or “mashed up”.
Web 2.0 relies on user-generated and user-controlled content and data (enhanced collaboration).
Lightweight programming techniques and tools let nearly anyone act as a Web site developer.
The virtual elimination of software-upgrade cycles makes everything a perpetual beta or work-in-progress and allows rapid prototyping, using the Web as an application development platform.
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The Web 2.0 RevolutionThe Web 2.0 RevolutionCharacteristics of the Web 2.0Characteristics of the Web 2.0 Users can access and manage applications
entirely through a browser. An architecture of participation and digital
democracy encourages users to add value to the application as they use it.
There is a major emphasis on social networks and computing.
Information sharing and collaboration is greatly supported.
This allows for rapid and continuous creation of new business models.
“dynamic content, rich user experience, metadata, scalability, open source, and freedom (net neutrality)”
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The Web 2.0 RevolutionThe Web 2.0 Revolution
Ajax (Asynchronous JavaScript and XML) An enabling technology for Web 2.0, resulting
in rich, interactive, fast-response, user-friendly GUIs
Makes Web pages feel more responsive by exchanging small amounts of data with the server behind the scenes (eliminated the need for reloading the complete Web page)
Leads to improved Web page interactivity, loading speed, and usability
Many companies and new business models have emerged based on Web 2.0
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Online Social Networking –Online Social Networking –Basics and ExamplesBasics and Examples A social network is a place where people
create their own space, or homepage, on which they write blogs; post pictures, videos, or music; share ideas; and link to other Web locations they find interesting. The mass adoption of social networking Web
sites points to an evolution in human social interaction
The size of social network sites are growing rapidly, with some having over 100 million members – growth for successful ones 40 to 50 % in the first few years and 15 to 25 % thereafter
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall6-29
Online Social Networking –Online Social Networking –Social Network Analysis Social Network Analysis SoftwareSoftware It is used to identify, represent, analyze,
visualize, or simulate networks with Nodes – agents, organizations, or knowledge Edges – relationships identified from various
types of input data (relational and non-relational)
Various input and output file formats exist SNA software tools include
Business-oriented social network tools such as InFlow and NetMiner
Social Networks Visualizer, or SocNetV, which is a Linux-based open source package
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Mobile Social NetworkingMobile Social Networking Social networking where members converse
and connect with one another using cell phones or other mobile devices
MySpace and Facebook offer mobile services Mobile only services: Brightkite, and Fon11 Basic types of mobile social networks
1. Partnership with mobile carriers (use of MySpace over AT&T network)
2. Without a partnership (“off deck”) (e.g., MocoSpace and Mobikade)
Mobile Enterprise Networks Mobile Community Activities (e.g., Sonopia)
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Major Social Network ServicesMajor Social Network Services
Facebook: The Network Effect Launched in 2004 by Mark Zuckerberg
(former Harvard student) It is the largest social network service in the
world with over 500 million active users worldwide
Initially intended for college and high school students to connected to other students at the same school
In 2006 opened its doors to anyone over 13; enabling Facebook to compete directly with MySpace.
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Major Social Network ServicesMajor Social Network Services Orkut: Exploring the Very Nature of Social
Networking Sites The brainchild of a Turkish Google programmer It was to be Google's homegrown answer to
MySpace and Facebook Format is similar to others: a homepage where
users can display every facet of their personal life they desire using various multimedia applications
A major highlight of Orkut – ability to create and control communities
Also supports many languages
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Implications of Business and Implications of Business and Enterprise Social NetworksEnterprise Social Networks Business oriented social networks can go
beyond “advertising and sales” Emerging enterprise social networking
apps: Finding and Recruiting Workers
See Application Case 14.2 for a representative example Management Activities and Support Training Knowledge Management and Expert Location
e.g., innocentive.com; awareness.com; Caterpillar Enhancing Collaboration Using Blogs and Wikis Within the Enterprise …>
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Implications of Business and Implications of Business and Enterprise Social NetworksEnterprise Social Networks Survey shows that best-in-class
companies use blogs and wikis for the following applications: Project collaboration and communication
(63%) Process and procedure document (63%) FAQs (61%) E-learning and training (46%) Forums for new ideas (41%) Corporate-specific dynamic glossary and
terminology (38%) Collaboration with customers (24%)
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Virtual WorldsVirtual Worlds
Virtual worlds have existed for a long time in various forms — stereoscopes, Cinerama, simulators, computer games, …
They are artificial worlds created by computer systems in which the user has the impression of being immersed
Examples: Second Life (secondlife.com) Google Lively (lively.com) EverQuest (everquest.com)
Avatars ? Avatars ?
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Second Life as a DSSSecond Life as a DSS Advantages:
Easy access and low cost Experienced and dedicated designer/builders Tools and venues for communications-driven
decision support (DecisionSupportWorld.com) A large, dedicated user base Impression management / creativity enhancement Time compression Easy data integration from real life using RSS
feeds Encourages active participation and experiential
learning
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Second Life as a DSSSecond Life as a DSS
Disadvantages: Learning time and training costs Distractions are numerous Pranksters and spam are common Technology problems persist Chat is a very slow communication tool Resistance to use Addiction Participation in most of these virtual
environments requires downloading of a "plug-in"
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Virtual TradeshowsVirtual Tradeshows
See iTradeFair.comSee iTradeFair.com
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Social Networks and BI:Social Networks and BI:Collaborative Decision Making Collaborative Decision Making Collaborative decision making (CDM) –
combines social software and BI CDM is a category of decision-support system
for non-routine, complex decisions that require iterative human interactions.
Ad hoc tagging regarding value, relevance, credibility, and decision context can substantially enrich both the decision process and the content that contributes to the decisions.
Tying BI to decisions and outcomes that can be measured will enable organizations to better demonstrate the business value of BI.
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How CDM WorksHow CDM Works
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RFID and BIRFID and BI
Wal-Mart's RFID mandate in June 2003 DoD, Target, Albertson's, Best Buy,… RFID is a generic technology that refers
to the use of radio frequency waves to identify objects.
RFID is a new member of the automatic identification technologies family, which also includes the ubiquitous barcodes and magnetic strips.
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How does RFID work?How does RFID work?
RFID system a tag (an electronic chip attached to
the product to be identified) an interrogator (i.e., reader) with one
or more antennae attached a computer (to manage the reader
and store the data captured by the reader)
Tags Active tag versus Passive tags
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Data Representation for RFIDData Representation for RFID
RFID tags contain 96 bits of data in the form of serialized global trade identification numbers (SGTIN) [see epcglobalinc.org]
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RFID for Supply Chain BIRFID for Supply Chain BI
RFID in Retail Systems Functions in a distribution center
receiving, put-away, picking, and shipping Sequence of operations at a receiving
dock1.unloading the contents of the trailer2.verification of the receipt of goods against
expected delivery (purchase order)3.documentation of the discrepancy 4.application of labels to the pallets, cases,
items 5.sorting of goods for put-away or cross-dock
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RFID for Supply Chain BIRFID for Supply Chain BI
RFID in Retail Systems
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RFID Data SampleRFID Data Sample
RFID in Retail Systems
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RFID for BI in Supply ChainRFID for BI in Supply Chain
Better SC visibility with RFID systems Timing/duration of movements between
different locations – especially important for products with limited shelf life
Better management of out-of-stock items (optimal restocking of store shelves)
Help streamline the backroom operations: eliminate unnecessary case cycles, reorders
Better analysis of movement timings for more effective and efficient logistics
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RFID + Sensors for Better BIRFID + Sensors for Better BI Knowing the location and health of goods
(i.e., exception) during transportation
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Reality MiningReality Mining
Identifying aggregate patterns of human activity trends (see sensenetworks.com by MIT & Columbia University)
Many devices send location information Cars, buses, taxis, mobile phones, cameras,
and personal navigation devices Using technologies such as GPS, WiFi, and
cell tower triangulation Enables tracking of assets, finding
nearby services, locating friends/family members, …
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Reality MiningReality Mining Citisense: finding people with similar
interests
See www.sensenetworks.com/citysense.php for real-time animation of the content.
A map of an area of San Francisco with density designation at place of interests
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End of the ChapterEnd of the Chapter
Questions, comments
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means,
electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States
of America.
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall