Critical Success Factors for Business Intelligence Initiative in Venezuela Presented by: Carlos Jimenez at the Seventh International Workshop

on Business I ntelligence and Knowledge Management, organized by IDEA, Caracas, 26 and October 27, 2006 Critical Success Factors of Business Intelligence © 2006 Content Some Definitions to Start Venezuela The Context of Business Intelligence in

Critical Success Factors of Intelligence Business Main messages 2 Critical Success Factors of Business Intelligence © 2006 What we come to speak? "Business intelligence is the activity of monitoring the environment of the firm in terms of information that is relevant to the decision making process of the company" 3 Critical Success Factors of Business Intelligence © 2006 Source: The Competitor Intelligence Group (1986) What do we mean by environment? "The business environment is complex and varied as it is made not only by elements of the macro but components of the industry" Demographic Macro Environment Related Searches Microenvironment Economic Intermediaries Company Competitors Technological Customers Politico Sociocultural Critical Success Factors of Business Intelligence © 2006 Source: Miguel Santesmases: Marketing, concepts and strategies

What is relevant information? "An information system in a company should be disc riminating and selective. This should focus on success factors. In most industri es there are three to six factors that determine success. These key works to be done very well for the company to be successful ... " 5 Critical Success Factors of Business Intelligence © 2006 Ronald Daniel. Crisis Information Management. HBR, Sept-Oct 1961. How EI can help making decisions? "Business intelligence provides strategic and tactical information. In the first group, highlights the anticipation of changin g markets and identifying opportunities, while at the tactical level support in developing marketing and sales initiatives " (Percentage who evaluated extremely or very important) Develop marketing strategies anticipate changes and monitor the market to identi fy new opportunities to identify new sources of support to sales advantage to se ll more develop marketing programs prioritize spending on R & D 6 Critical Success Factors of Business Intelligence © 2006 76.2 74.5 67.2 64.8 58.4 43 23.5 Source: Society of Competitive Intelligence Professionals Content Some Definitions to Start Venezuela The Context of Business Intelligence in

Critical Success Factors of Intelligence Business Main messages 7 Critical Success Factors of Business Intelligence © 2006 Behaviour of macro "Both the economic and the political environment have been of great mobility for Venezuela, demanding that the companies remain alert to thei r surroundings" TRADITIONAL MODEL STAGE SQUIZOPHRENIC JL CAP II LHC II HChF CALDERA MARKET ECONOMY I CALDERA CAP I 71 8 ECONOMY GOVERNMENT INTERVENE Critical Success Factors of Business Intelligence © 2006 Microenvironment Behavior "Likewise, the micro many business sectors have been s ubject to profound changes and competitive pressures" Privatizations

(Telecommunications, basic industries, etc.). Foreign entry (Automotive, banking, etc.). Mergers and Acquisitions Establish regulations (Price controls, financial drawers, etc.). (Banks, insurance companies, etc.). Offer new products and services (Shopping, food, etc.). Modernization (Cinemas, supermarkets, etc.). 9 Critical Success Factors of Business Intelligence © 2006 Useful information for business "Venezuelan firms to assess decision making prim arily financial information, the environment and customers' Financial information needs of customers of competitors Information Policy Persp ectives Surveys Customer Satisfaction New Macroeconomic Information Technologies Customer complaints public information notices Other Demographic Information 10 11.65% 10.15% 7.52% 7.14% 7.14% 6.39% 1.13% 0.75% 0.75% 25.19% 22.18% What are the most important types of information when making business decisions? Critical Success Factors of Business Intelligence © 2006 Source: Datanalisis. Business Survey. 2004 Content Some Definitions to Start Venezuela The Context of Business Intelligence in

Critical Success Factors of Intelligence Business Main messages 11 Critical Success Factors of Business Intelligence © 2006 1. Business intelligence from a knowledge must own "Before seeking outside infor mation is important to clarify the position of the company in the competitive en vironment" Four basic components for a self-analysis of the company in the competitive cont ext Future objectives: What drives us Current strategy: How the company is currently competing Assumptions about himself and the industrial sector

Capabilities: Strengths and weaknesses 12 Critical Success Factors of Business Intelligence © 2006 Source: Michael Porter. Competitive Strategy 2. Using scenarios in a highly uncertain environment is highly recommended "The scenarios are descriptions of situations and future results that serve as contex t for formulating and evaluating decisions and strategies that, taken today, mus t lead to success in structurally different to the current context" 13 Critical Success Factors of Business Intelligence © 2006 3. Segmenting the market is of great help for better understanding Environmental analysis PEST 1.Modelo consumers have the same • Not all needs, amenazaslo • Opportunitie s and you can not serve in the same way. • • Identification of variables increas es the ability to deliver value that consumers are willing to pay, • Segmentatio n itself • Develop profiles that LADE given price elasticity of demand segments may vary between segments • • Evaluate attractiveness of each segment allows to formulate strategies • Selecting the development of [the] segment [s] target pro ducts, promotions, communications, price and distribution are geared towards gro ups that are more attractive to the objectives • Identify possible positioning c oncepts / business segment of the company. • Select, develop and bring the concept of positioning Market Segmentation Selection of the target market Positioning • Facilitates competitive analysis to identify competitors by segment. • Product • Price • Promotion Improving the efficiency of investment and develop ment • Product Distribution Marketing Mix • marketing 14 Critical Success Factors of Business Intelligence © 2006 4. Not everything is strategic and therefore does not require IE The phases of Business Intelligence Identify ation 1. The first phase of the IE refers to the identification requirement 2. Critica l point of phase Relevance strategic information

what information What is the strategic problem? What decisions need to take? What pieces of infor mation are needed to guide Critical Success Factors of Business Intelligence © 2006

15 5. The information must be on time and at reasonable cost The phases of Business Intelligence ON COLLECTION After clearly identify the information required to collect such information is critical point of this stage: the process efficiency What information we have on the company or how I can use internal resources to g et it? How I can separate triangular 16 Critical Success Factors of Business Intelligence © 2006

6. The analysis should be objective The phases of Business Intelligence Ent PROCESSING After collecting the information is important to devote time to analysis and m aturation Critical point analysis of Phase: Objectivity on the findings and an alysis What do we understand about ourselves and about the problem after reflection? Wh at information do we need?

17 How the new information we have sought increased (or Critical Success Factors Bu siness © 2006 know about our problem? Distorted) perception Intelligence 7. Do not fall into the trap of predicting The phases of Business Intelligence Transmission was The analysis and findings should be disseminated in the organization's key bod ies through expeditious mechanisms of transmission of knowledge. Phase Defect: Credibility

We always start from the premise that the maps are incomplete, alerting users of the information on its extent and limitations. Critical Success Factors of Business Intelligence © 2006 18

Avoid falling into a defensive dynamic rather than 8. Establish ethical standards in IE practices Why is it important to talk about ethics? Errors in this area can seriously affect the reputation of the company tablish ethical standards helps to easily respond to future critical. 19 Critical Success Factors of Business Intelligence © 2006 Content Some Definitions to Start Venezuela The Context of Business Intelligence in To es

Critical Success Factors of Intelligence Business Main messages 20 Critical Success Factors of Business Intelligence © 2006 Main messages The current competitive environment is increasingly complex and dynamic Comp anies that want to be successful must develop skills competitive processes to facilitate decision-making and implementation of initia tives competitive information collection should be efficient, so targets to be set a priori and do it in reasonable time. business intelligence activities should ensure compliance with ethical standards that do not compromise the image and reputatio n of the company. 21 Critical Success Factors of Business Intelligence © 2006 THANK YOU! www.datanalisis.com 22 Critical Success Factors of Business Intelligence © 2006