CHAPTER 12 Business Intelligence
CHAPTER OUTLINE 12.1 Managers and Decision Making 12.2 What Is Business Intelligence? 12.3 Business Intelligence Applications for Data Analysis 12.4 Business Intelligence Applications for Presenting Results 12.5 Business Intelligence in Action: Corporate Performance Management
LEARNING OBJECTIVES 1. Identify the phases in the decision-making process, and use a decision-support framework to demonstrate how technology supports managerial decision making. 2. Describe and provide examples of the three different ways in which organizations use business intelligence.
LEARNING OBJECTIVES (continued) 3. Specify the BI applications available to users for data analysis, and provide examples of how each might be used to solve a business problem at your university. 4. Describe three BI applications that present the results of data analyses to users, and offer examples of how businesses and government agencies can use each of these technologies.
LEARNING OBJECTIVES (continued) 5. Describe corporate performance management, and provide an example of how your university could use CPM.
Chapter Opening Case: Quality Assurance at Daimler AG Source: Alperium/Shutterstock
12.1 Managers and Decision Making Management Sigrid Olsson/Photo Alto/Age Fotostock
The Manager s Job and Decision Making Managers have three basic roles (Mintzberg 1973) Interpersonal roles Informational roles Decisional roles
The Manager s Job & Decision Making (continued) Decisions and Decision making Source: Image Source Limited
Decision Making Process
Why Managers Need IT Support The number of alternatives to be considered constantly increases. Decisions must be made under time pressure. Decisions are more complex. Decision makers can be in different locations and so is the information.
A Framework for Computerized Decision Analysis
Problem Structure The first dimension deals with the problem structure, where the decision making processes fall along the continuum ranging from highly structured to highly unstructured decisions. Highly structured Semistructured Higly unstructured Order entry Loan approval Building new plant
The Nature of Decisions The second dimension of decision support deals with the nature of decisions Operational control Management control Strategic planning
12.2 What Is Business Intelligence? Source: Angela Waye/Shutterstoc
The Scope of Business Intelligence Smaller organizations: Excel spreadsheets Larger organizations: Data mining, predictive analytics, dashboards Source: Dundas Software, www.dundas.com/ dashboard/online-examples/ screenshots/marketing-dashboard.aspx
How Organizations Use BI Develop few, related BI applications Data mart Develop infrastructure to support enterprisewide BI Enterprise data warehouse Support organizational transformation Enterprise data warehouse
12.3 Business Intelligence Applications for Data Analysis Multidimensional Analysis or Online Analytical Processing (OLAP) Data Mining Decision Support Systems Toh Kheng Ho/Age Fotostock America, Inc.
Multidimensional Analysis or Online Analytical Processing (OLAP) Source: Angela Waye/Shutterstoc
Data Mining Source: Corbis/Image Source Limited
How Business Intelligence Works Aydin/Age Fotostock America, Inc.
Decision Support Systems (DSS) DSS capabilities Sensitivity analysis What-if analysis Goal-seeking analysis STOCKBROKERXTRA/Age Fotostock America, Inc.
12.4 Business Intelligence Applications for Presenting Results Dashboards Data Visualization Technologies Geographic Information Systems Real-Time BI
Digital Dashboard (example) Source: MicroStrategy
Digital Dashboard (example) Source: Dundas Software, www.dundas.com/ dashboard/online-examples/ screenshots/marketing-dashboard.aspx
Digital Dashboard Demo http://www.informationbuilders.com/rfr/qtdem o/advvis_execdash/advvis_execdash.html
A Bloomberg Terminal Source: Carlos Osario/Zuma Press
Management Cockpit Source: The Management Cockpit is a registered trademark of SAP,created by Professor M.Georges.
Data Visualization Systems The Power of Visualization Even though a picture is worth a thousand words, we have to be very careful about just what we are seeing. Remember, on the Internet, it is user beware!
Example of data visualization Hans Rosling at the TED Talks
GISMO GISMO is a geographic information system developed for the city of Corvallis, Oregon.
12.5 Business Intelligence in Action: Corporate Performance Management FIGURE 12.7 1-8000 CONTACTS customer service agent dashboard.
Chapter Closing Case The Business Problem The IT Solutions The Results