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1 Business Intelligence: Challenges and Opportunities Miguel de Castro Neto Porto, June Decision makers need the right information in the right moment in the right place!!! Business Intelligence: Challenges and Opportunities Miguel de Castro Neto 2 1

2 Business Intelligence A paper written by H.P.Luhn in IBM Journal The date was October 1958 Was Luhn'sdefinition on target? You bet it was!!! A Business Intelligence System 3 3 A Brief History of BI An automatic system is being developed to disseminate information to the various sections of any industrial, scientific, or government organization The objective of the system is to supply suitableinformation to support specific activities carried out by individuals, groups, departments, divisions, or even larger units... To that end, the system concerns itself with the admission of acquisition of new information, its dissemination, storage, retrieval, and transmittal to the action points it servers. Luhn,

3 Business Intelligence Capability of collecting and analyzing internal and external data to generate knowledge and value for the organization. This includes business process decision support at the strategic, tactical, and operational levels 5 Business Intelligence Today BI combines products, technology, and methods to organize key information that management needs to improve decision making (profit, performance,...) BI is an enterprise-wide platform that supports reporting, analysis and decision making. BI leads to: Fact-based decision making Single version of the truth 6 3

4 Business Intelligence and Analytics Optimization What s the best that can happen? Competitive Advantage Predictive Modelling Forecasting/Extrapolation Statistical Analysis Alerts Query/Drill Down Ad Hoc Reports Standard Reports What will happen next? What if these trends continue? Why is this happening? What actions are needed? Where exactly is the problem? How many, how often, where? What happened? Analytics Access and Reporting Degree of Intelligence BusinessIntelligence: Davenport & Harris, Challengesand 2007 Opportunities Miguel de Castro Neto 7 Time to action Bolder Technologies 8 4

5 Business Performance Management Finance Processes Vision and Strategy Customers Learning & Development Balanced Scorecard 9 A Generic BI Environment Source Systems Data Integration Data Warehouse Metadata Dependent Data Mart Data Access Dependent Data Mart Analysis and Delivery MetadataProcesses Data Quality Processes Watson, 2009 GovernanceProcesses 10 5

6 Mega Trends??? 11 Mega trends transforming business today 90% of businesses will be operating in the cloud by * 4 Exabytes of unique information in 2011** Data is predicted to grow at least 75 times by 2020*** * -Gartner Group ** -http://www.simplysecurity.com/2011/04/29/forrester-cloud-market-to-hit-240-billion-by-2020/ *** >500 million social media members** Double Digit budget cuts** 12 6

7 EMBRACE ANALYTICS 13 Future BI Architecture BI for Everyone & Everywhere Structured & Unstructured Data Internal & External Monitoring 14 7

8 BIG DATA What Is Big Data? These fundamental shifts are fueling explosive growth in big data larger volumes, greater variety, and faster velocity. Three aspects of big data: Big transaction data: Massive growth of transaction data volumes Big interaction data: Explosion of new types of data such as social media and device data Big data processing: Highly scalable processing needed 15 Mega trends transforming business today 70% Of people in China access Internet with a handset* * -http://www.simplysecurity.com/2011/04/29/forrester-cloud-market-to-hit-240-billion-by-2020/ 16 8

9 Business Environment 17 Productivity Boost Companies that use data-directed decision-making (defined not only by collecting data, but also by how it is used -or not -in making crucial decisions ) enjoy a 5-6% boost in productivity. Eric Brynjolfsson, director of the MIT Center for Digital Business and economist at the Sloan School of Management at the Massachusetts Institute of Technology 18 9

10 Big Data and Analytics THE LEADING QUESTION How are organizations using analytics to gain insight and guide action? FINDINGS: Top-performing organizations are twice as likely to apply analytics to activities. The biggest challenges in adopting analytics are managerial and cultural. Visualizing data differently will become increasingly valuable. Big BusinessIntelligence: Data, Analytics and Challengesand the Path From Opportunities Insights to Miguel Value, de Castro Neto MIT Sloan Management Review, Winter Priorities in sync CIOs and CEOs both aim to focus on insight and intelligence, client intimacy and people skills over the foreseeable future The BusinessIntelligence: Essential CIO Insights Challengesand from the Opportunities Global Chief Miguel Information de Castro Officer NetoStudy, IBM,

11 CRITICAL ISSUES Analytical Talents Information Delivery Data Management 22 11

12 Data Management Relevance Sourcing Quantity Quality Governance 23 Data Quality It is in context It is current It is consistent It is complete It is correct It is controlled 24 12

13 Data Governance What rules and processes are needed to manage data from its creation through its retirement? Acquisition Cleansing Organization & Storage Maintenance Retirement 25 Information Delivery 26 13

14 The fundamental challenge of dashboard design is to display all the required information on a single screen, clearly and without distraction, in a manner that can be assimilated quickly Stephen Few 27 Copyright 2012, SAS Institute Inc. All rights reserved. 14

15 ATTRACT THE RIGHT TALENTS 29 By 2018, the United States alone could face a shortage of 140,000 to 190,000 people with deep analytical skills as well as 1.5 million managers and analysts with the know-how to use the analysis of big data to make effective decisions Big data: The next frontier for innovation, competition, and productivity, McKinsey Quarterly, Maio de

16 SUCCESS CHALLENGES 31 Road Map to Success An Executive vision and commitment to demand an information-driven organization and culture Focus upon key organizational dimensions Human Capital Internal Information Processes Technical Infrastructure Organizational Culture Continual alignment with business objectives Supported by an enterprise analytics Center of Excellence 32 16

17 Centers of Excellence Characteristics Sponsored by the executive team Includes IT, business domain expertise, and analytic expertise Has a well defined charter, responsibilities, and processes Collaborates with ALL appropriate stakeholders Strives to make analytics a repeatable and accessible process Emphasizes the implementation of successful analytic applications SAS Institute Inc.,

18 We don t have a choice on wetherwe DO analytics, the question is how well we DO it. 35 Miguel de Castro Neto Deputy Director, ISEGI, Universidade Nova de Lisboa 18

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