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

12/09/2021 Business Intellgence IF-UTama 1

 Introduction
LOGO

 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
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LOGO
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
 Foundation of KM:
information sorting,
extraction, packaging, and
dissemination
 Reactive, data centric to
proactive, query-driven
knowledge world
3-
Wave 5
Business Intelligence
Wave 4
E-commerce & Click Stream Analysis
Wave 3
Extranets & Inter-Enterprise Portals
Wave 2
Corporate Intranets & Decision
Support Portals
Wave 1
Group Memory Systems
Business Intellgence IF-
 Wave 1: Group Memory Systems
LOGO

 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
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 Wave 2: Corporate Intranets and
LOGO Decision Support Portals

 For complete and uniform linkage of data resources

scattered throughout the organization
 Intranets alone don’t create knowledge
 Data analysis necessary
 Decision support portals to automate predictable components
of decision maker’s 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

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IF-UTama
 Wave 3: Extranets and
LOGO 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
 Lexmark
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 Wave 4: e-Commerce and Click
LOGO 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
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 Wave 4: e-Commerce and Click
LOGO 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

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 Wave 5: Business Intelligence
LOGO

 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
 MicroStrategy’s DSS Broadcaster include new
personalization and distribution capabilities
 New BI apps turning traditonal query-and-response
paradigm of decision support on its head

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 Wave 5: Business Intelligence
LOGO

 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

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 Wave 5: Business Intelligence:
LOGO Elements of BI Apps

Real-time
Personalization
Analysis & Engine
Segmentation
Engine Web
ail or
Em ct r

U
e
p e Broadcast,

VR
os m
Pr usto

x
Retrieval, and

Fa
C
Telephone Interaction
Data Engine
Organization e
tur
& Collection Performance c
i te
Monitoring and h
Measurement A rc
Engine i se
r pr
nte
E

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 Data Organization and Collection
LOGO

 First requirement of a successful BI strategy

 Requires visibility into organization’s activities
with both internal and external constituencies
 data from multiple locations
 Factors critical to success of large-scale data
integration
 Scalability
 Flexibility
 Performance

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 Analysis and Segmentation
LOGO

 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

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 Real-Time Personalization
LOGO

 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
customer’s individual preferences
 deliver personally relevant information related to products
that the customers own

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 Infrastructure for Broadcast, Retrieval, and
Interaction
LOGO
Profiling
 To proactively deliver info • Show people what you have to offer
• Ask customers what they want
to every customer via
medium of their choice Matching
 Sabre • Give people what they want
• Match content to customer needs
 Multiple devices
proliferating Transacting
 Both prefabricated and • Allow people to service themselves

custom-made software • Make it easy to do business with

you
can be integrated into the Listen
platform • Incorporate customer feedback
• Measure effectiveness

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 Performance Monitoring and
LOGO 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

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 BI in Telecom: Combating Customer
LOGO 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 individual’s tendency to select another
provider and to define correct course of action to
retain the customer

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 BI in Retails: Capturing and
LOGO 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

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 BI in Retails: Capturing and
LOGO 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

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 Technical Elements of BI Framework
LOGO

 Three-Layer BI Solutions Architecture

Relationship
SOLUTIONS
SOLUTIONS Management
Billing /
ENABLING
ENABLING TECHNOLOGIES
TECHNOLOGIES Payment Systems
OLAP
CORE
CORE TECHNOLOGIES
TECHNOLOGIES Advertising /
HTML/XML Promotions
Networking
Scalability
Networking DataScalability
Warehousing
Scalability
RAS
RAS UNIX
UNIX Security
Security Messaging Personalization
Open
NetworkingStandards
Open StandardsRDBMS Security
Data Mining

CORBA / IIOP COM/DCOM/DNA Supply Chain

Management
Performance Knowledge
Measurement Management

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LOGO
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

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LOGO
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
Design Transform Extract Deliver
Lifecycle

{
Transaction Data Scrubbing Load, Index & Publish &
Data Extract. & Cleansing Aggregate Subscribe
Partial
Functional
Solutions Data Data Meta-Data
Data Access
Histories&
Mining Replication Tools
Summaries

Complete Integrated Data Warehouse Applications

Integrated
Solutions

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 Roadmap for Managers
LOGO

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