Business Intelligence (0641611) Lecture Week-8: The Next Generation of Knowledge Management

Beban: 2 SKS SEMESTER: VI (Enam)/Genap DOSEN: Djadja Achmad Sardjana, S.T., M.M. djadja.sardjana@widyatama.ac.id 0818-658980 & 0858-61625868

6/15/2011

Business Intellgence IF-UTama

Introduction
 Knowledge neither product nor capability; a critical framework of a fully evolved information economy
 WalMart has a 100-terabyte data warehouse to monitor and capture each transaction in each store for better inventory mgmt; improved collaboration with supplier; merchandise on individual store basis; and to provide superior shopper satisfaction  Success from anticipating customer needs before they do

 First gen e-business apps focus on buying and selling goods via Web  Second gen apps focus on gaining insights from organizations data collected from each transaction
 Customer loyalty, enhance profitability  Interpret past transactions and use the knowledge to support decisions about the direction the company should be headed
6/15/2011 Business Intellgence IFUTama 2-

Evolution of Knowledge Mgmt Apps

 Companies want apps to make sense of the data gathered
 How to make effective use of raw data  How to convert raw data into revenue

Wave 5
Business Intelligence

Wave 4
E-commerce & Click Stream Analysis

Wave 3
Extranets & Inter-Enterprise Portals

 Foundation of KM: information sorting, extraction, packaging, and dissemination

 Reactive, data centric to proactive, query-driven knowledge world
3-

Wave 2
Corporate Intranets & Decision Support Portals

Wave 1
Group Memory Systems

Business Intellgence IFUTama

Wave 1: Group Memory Systems  Sharing of info throughout the company

 Buzzword of 90s  Discussion boards, bulletin systems, corporate intranets  Instant access to data and reporting info that had previously taken days or weeks to obtain  Core: Lotus Notes and Instraspect apps

 Failed to live up to promise

 Few can define it  Software vendors distancing themselves from GM  Costly efforts not delivering expected ROI
6/15/2011 Business Intellgence IFUTama 4-

Wave 2: Corporate Intranets and Decision Support Portals

 For complete and uniform linkage of data resources scattered throughout the organization  Intranets alone dont create knowledge
 Data analysis necessary  Decision support portals to automate predictable components of decision makers routine

 Pre-requisite for responsive business model: Decision support portals built on intranets
 Home Depot  Decision makers can ask and answer mission-critical questions about business using transaction data assets that have been captured, not exploited to fullest extent

6/15/2011 Business Intellgence IFUTama

5-

Wave 3: Extranets and Interenterprise Portals  Fast info access, customized data and responsiveness driving extranets
 New requirements: manage huge data volumes, data breadth coverage, cross-platform support, response-time speed, and broad range of interface choice  DaimlerChrysler

 Extranet apps encourage trading partners to improve profits by managing inventories in supply chain
 preferential treatment for visibility 6/15/2011 Lexmark Business Intellgence IF UTama
6-

Wave 4: e-Commerce and Click Stream Analysis  User click stream analysis
 Marketers need every customer activity and purchase; to be able to analyze, understand their buying preferences; to anticipate their changing expectations  Testing limits of conventional database mgmt; new DBs emerging

 Intelligent E-mail management

 Kana Communications, eGain, and Siebel  Tracks and manages millions of daily interactions for analyzing, reporting and launching customized initiatives in response 6/15/2011 Business Intellgence IFUTama

7-

Wave 4: e-Commerce and Click Stream Analysis  Knowledge Portals

 Brio, Business Objects, Cognos, DataChannel, Plumtree, Portera  Call center mgrs to understand historical service trends and customer service patterns, identify problem areas; ultimately increase customer retention rates

6/15/2011 Business Intellgence IFUTama

8-

Wave 5: Business Intelligence

 Data analytics, coupled with broadcast engine technology, foundation for proactive business intelligence
 Anytime, anywhere, any place

 BI is proactive and data driven

 Automates delivery of info to customers using exception conditions and recurring schedules as triggers for communication

 Traditional decision support apps do not personalize info

 MicroStrategys DSS Broadcaster include new personalization and distribution capabilities

 New BI apps turning traditonal query-and-response paradigm of decision support on its head

6/15/2011 Business Intellgence IFUTama

9-

Wave 5: Business Intelligence  Next gen BI apps to use ecommerce technology to open up data warehouse to hand-held devices
 Prior models relied on static info about customer transactions  Corporations will shift to sense and respond infrastructure to serve customers better

 For info-based BI models to function well, integration framework necessary to tie knowledge apps
6/15/2011 Business Intellgence IFUTama 10 -

Wave 5: Business Intelligence: Elements of BI Apps

Real-time Personalization Engine

Analysis & Segmentation Engine

Data Organization & Collection

Broadcast, Retrieval, and Interaction Engine Performance Monitoring and Measurement Engine

6/15/2011 Business Intellgence IFUTama

11 -

Data Organization and Collection  First requirement of a successful BI strategy  Requires visibility into organizations activities with both internal and external constituencies
 data from multiple locations

 Factors critical to success of large-scale data integration

 Scalability  Flexibility  Performance
6/15/2011 Business Intellgence IFUTama 12 -

Analysis and Segmentation

 These apps offer tools for data mining  Goal is to improve pricing, retain customers longer and find new revenue streams
 Travelocity

 Many Internet businesses do not have a clue about customer behavior on their Web sites
 Collect gigabytes of customer clickstream data every day  For e-business marketing, emphasis on order size and margin

 Several industries eager to exploit opportunities

 Telecom; BC Telecom

6/15/2011 Business Intellgence IFUTama

13 -

Real-Time Personalization
 Personalization apps emerging
 to make businesses responsive to customers needs  reduced marginal cost of personalization

 Personalization apps allow you to

 provide each customer with personalized Web page  display only info you want individual customers to see  proactively notify customers of product improvements and relevant upgrades, promotions, and service enhancements  tailor information and recommendations according to each customers individual preferences  deliver personally relevant information related to products that the customers own
6/15/2011 Business Intellgence IFUTama 14 -

Infrastructure for Broadcast, Retrieval, and Interaction

Profiling

 To proactively deliver info to every customer via medium of their choice

 Sabre

Show people what you have to offer Ask customers what they want

Matching
Give people what they want Match content to customer needs

 Multiple devices proliferating  Both prefabricated and custom-made software can be integrated into the platform

Transacting
Allow people to service themselves Make it easy to do business with you

Listen
Incorporate customer feedback Measure effectiveness

15 -

Business Intellgence IFUTama

Performance Monitoring and Measurement  These apps provide managers the info they need to improve operations and strategy
 Use KPIs linked to a balanced scorecard  BT

 SEM from SAP

6/15/2011 Business Intellgence IFUTama

16 -

BI in Telecom: Combating Customer Churn  Churn factor forcing providers to process a steady stream of service starts and stops
 most acute in ultracompetitive wireless

 Churn mgmt to ensure profitable customer stay with company

 advanced techniques include ability to predict a given individuals tendency to select another provider and to define correct course of action to retain the customer

6/15/2011 Business Intellgence IFUTama

17 -

BI in Retails: Capturing and Reporting Sales Data  Sears, Roebuck and Co. was caught by surprise in 1980s with advent of specialty stores and discount merchandisers
 Adopting new technology to support regeneration as a more flexible, market responsive company

 In early 1990s, tech infrastructure based on old sales information systems

 redundant, conflicting, sometimes obsolete data

6/15/2011 Business Intellgence IFUTama

18 -

BI in Retails: Capturing and Reporting Sales Data  To survive, forced to embrace BI on a dramatic scale
 single data source to capture sales data and generate reports

 Built Sales Knowledge app

 1.7-terabyte data warehouse  Replaces 18 major databases running on separate systems  Tracks sales by item and location on a daily basis

6/15/2011 Business Intellgence IFUTama

19 -

Technical Elements of BI Framework  Three-Layer BI Solutions Architecture

SOLUTIONS
Relationship Management Billing / Payment Systems Advertising / Promotions Personalization Data Mining Supply Chain Management ENABLING TECHNOLOGIES OLAP CORE TECHNOLOGIES Networking Data Warehousing Scalability Scalability RAS UNIX Security Open Standards Networking RDBMS CORBA / IIOP HTML/XML Messaging Security

COM/DCOM/DNA

Performance Measurement

Knowledge Management

6/15/2011 Business Intellgence IFUTama

20 -

Enabling Technologies: OLAP

 Provide means to analyze complex data by using a more intuitive set of business rules and dimensions
 profitability analysis by product, channel, geography, customer or fiscal period

 Insulate user from technical aspects of data storage and data structures  Core process: data entered into a DB is offloaded, reformatted, or accessed in specialized ways to enhance the processing of complex queries

21 -

Business Intellgence IFUTama

Core Technologies: Data Warehousing

  DWs are repositories of summarized historical data, often extracted from disparate departmental or enterprise DBs Companies of all sizes finding that data warehouses are essential to running their businesses  GM

Process Lifecycle

Design

Extract Transform

Partial Functional Solutions

Transaction Data Scrubbing Load, Index & Data Extract. & Cleansing Aggregate
Meta-Data Histories& Summaries

Publish & Subscribe

Data Mining

Data Replication

Data Access Tools

Complete Integrated Solutions

Integrated Data Warehouse Applications

22 -

Business Intellgence IFUTama

Roadmap for Managers

1. 2. 3. 4. 5. 6. Identify goals Determine knowledge sources Determine info needs Collect, clean, prepare data Balance external, internal data Develop new approaches to categorizing information 7. Build the data model 8. Deploy model 9. Monitor model 10.Measure ROI
23 Business Intellgence IFUTama

Sampai Jumpa di Kuliah Minggu Depan

6/15/2011

24

Business Intellgence IF-UTama