Operational Intelligence
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1 Operational Intelligence An Introduction to Event-driven, Rule-based Business Process Intelligence Solutions Christian Schieder Chemnitz University of Technology Dr. Olivera Marjanovic University of Sydney 9 th E u r o p e a n T D W I C o n f e r e n c e, M u n i c h,
2 Agenda What is Operational Intelligence about? Case Study II: Car Manufactoring Real- Time Reporting Understanding Operational Intelligence Concepts BI and BPM Integration Methods and Strategies Technologies for Operational Intelligence Case Study III: Customer Centric Decisioning Case Study I: Real- Time Sony 2009 by Christian Schieder 2
3 What is Operational Intelligence about? turning data into actionable intelligence
4
5 A brief history of Operational Intelligence 2009 by Christian Schieder 5
6 From Sun Tsu s Art of War Superior commanders succeed in situations where ordinary people fail because they obtain more timely information and use it more quickly. Sun Tsu, The Art of War, 6th century BC by wikipedia 2009 by Christian Schieder 6
7 to Churchill s Adaptive Enterprise Storey s Gate Cabinet War Room Whitehall Minitries Supply Chain Management Bentley Prior Realtime Monitoring Bletchley Park Intelligence Capture 2009 by Christian Schieder 7
8 Sgt. Jim Varhegyi/USAF/AP and modern Battlefield Surveillance The Combined US Air and Space Operations Center US AF at Air an undisclosed and Space Operations Mideast location. Center Screenshot from Command & Conquer 2009 by Christian Schieder 8
9 to current Business Monitoring and Automation 2009 by Christian Schieder 9
10 Defining Operational Intelligence Operational Intelligence focuses on providing real-time monitoring of business processes and activities as they are executed within computer systems, and in assisting in optimizing these activities and processes by identifying and detecting situations that correspond to interruptions and bottlenecks. Source: BBC 2009 by Christian Schieder 10
11 The Cost of Latency (Potential) Value of Decision Business transaction Data available in DW Analysis results available Decision taken Action performed Data latency Analysis latency Decision latency Action latency Time 2009 by Christian Schieder Source: Hackathorn, Richard: Minimizing Action Distance,
12 differs! Additional Benefit from immediate Decision Operational Decisioning Tactical Decisioning Strategic Decisioning Time 2009 by Christian Schieder 12
13 DAILY DATA LATENCY REAL TIME Eckerson s Layer Model LOW EXECUTE PROCESSES FACILITATE PROCESSES MONITOR PROCESSES ANALYZE PROCESSES HIGH Operational reports Operational dashboards Composite applications Event-driven Analytic platforms LOW BUSINESS VALUE HIGH 2009 by Christian Schieder Source: Eckerson, Wayne W.: Best Practices in Operational BI, TDWI Best Practises Report, 2007, p
14 The past, the present and the situation Business Process Intelligence Business Activity Monitoring Complex Event Processing Ex post Long-term statistical Process Control The Rear Mirror Rule/Model generation In situ Alerting Surveillance of defined processes in execution In situ Detection of complex events/ situations Correlation of distributed Events 3 Pillars of Operational Intelligence 2009 by Christian Schieder 14
15 Concept by Silvia Helena Cardoso, Ph.D. Center for Biomedical Information, University of Campinas, Brazil Understanding Operational Intelligence Concepts sense interpret analyze decide respond
16 Shark Situation Surfer 12ft sharks spotted off Cornish coast by DAVID WILKES, Daily Mail 8th June 2006,
17 Situation Awareness Task Factors System Capabilities Interface Design Stress & Workload Complexity Automation Feedback Situation Awareness State of the Environment Level 1 Level 2 Level 3 Perception of Elements in current Situation Comprehension of current Situation Projection of future Status Decision Performance of Actions Individual Factors Information Processing Mechanisms Goals & Objectives Preconceptions (Expectations) Long Term Memory Store Automaticity Abilities Experience Training 2009 by Christian Schieder Endsley, M. R. (1995b). Toward a theory of situation awareness in dynamic systems. Human Factors 37(1),
18 Business Situation Awareness Task Factors System Capabilities Interface Design Stress & Workload Complexity Automation Feedback Situation Awareness Processes State of the Environment Level 1 Level 2 Level 3 Business Activity Monitoring Business Intelligence Predictive Analytics Decision Performance of Actions Individual Factors IT Infrastructure Strategy Goals & Objectives Preconceptions (Expectations) Data Warehouse Applications Business Rules Repository People Abilities Experience Training 2009 by Christian Schieder 18
19 Business Situation Awareness Task Factors System Capabilities Interface Design Stress & Workload Complexity Automation Feedback Situation Awareness Processes State of the Environment Level 1 Level 2 Level 3 Business Activity Monitoring Business Intelligence Predictive Analytics Decision Performance of Actions Individual Factors IT Infrastructure Strategy Goals & Objectives Preconceptions (Expectations) Data Warehouse Applications Business Rules Repository People Abilities Experience Training 2009 by Christian Schieder 19
20 Key Requirements for Operational Intelligence Flexibility Responsiveness Agility 2009 by Christian Schieder 20
21 Courtesy: Lookheed Martin Corp. Technologies for Operational Intelligence responsiveness, agility, and flexibility
22 Operational Intelligence IT Architectures 2009 by Christian Schieder 22
23 Operational Business Intelligence Architecture ERP Purchasing SCM ETL-Batch Reports Data Warehouse ETL-Batch OLAP ODS Sales CRM Event Processing Engine Micro Batches Data Mining Stream Cache Legacy Production Executives Analysts Decision Makers Dashboards WorkflowEngine Processes 2009 by Christian Schieder Systems Event Streams Data Integration Business Rules Repository Data Storage Business Rules Engine Mobile Devices Decisions Analysis Users 23
24 It s about Latency reduction! Action latency Decision latency Analysis latency Data latency 2009 by Christian Schieder 24
25 Time Scale of Human Actions Scale (sec) System Stratum Social Task Task Task Rational Unit Task Operations Deliberate Act Cognitive Neural Circuit Neuron Organelle Biological 2009 by Christian Schieder 25
26 Concepts and Technologies for Latency reduction Action latency ERP/ CRM/ SCM Workflow Engines Decision latency Business Rules Engines Complex Event Processing Analysis latency Data Mining Visual Analysis Process Mining Business Activity Monitoring Data latency Micro-batches Change Data Capture Event Stream Processing In-Memory-Databases Data Synchronization 2009 by Christian Schieder 26
27 Operational Intelligence Trends 2009 by Christian Schieder 27
28 Case Study I Talend Open Source Realtime Changed Data Sony
29 Agenda What is Operational Intelligence about? Case Study II: Car Manufactoring Real- Time Reporting Understanding Operational Intelligence Concepts BI and BPM Integration Methods and Strategies Technologies for Operational Intelligence Case Study III: Customer Centric Decisioning Case Study I: Real- Time Sony 2009 by Christian Schieder 32
30 VW Bildarchiv Case Study II DMC Group Realtime Reporting in Camshaft Manufactoring
31 By flickr BI and BPM Integration Methods and Strategies getting down to business
32 Case Study III Accenture Customer Centric Decisioning
33 Literature I by Christian Schieder 36
34 Literatur II by Christian Schieder 37
35 Contact Christian Schieder Research Associate Chemnitz University of Technology Faculty of Business Administration and Economics Chair for Systems Engineering and Information Systems Dr. Olivera Marjanovic Senior Lecturer University of Sydney Faculty of Economics and Business Thueringer Weg 7, Chemnitz, Germany Tel. : +49 (0) Fax : +49 (0) Mail: christian.schieder@wirtschaft.tu-chemnitz.de Room 434, H69 - Economics and Business Building, The University of Sydney, NSW 2006 Australia Phone: Fax: Mail: O.Marjanovic@econ.usyd.edu.au by Christian Schieder 38
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