1. Chapter 12 Business Intelligence and Decision Support Systems Information Technology for Management Improving Performance in the Digital Economy 7 th edition John Wiley & Sons, Inc. 12-1
Systems help decision makers collect, compile analyze raw data using business models to respond & make decisions. Illustrates the value of BI (business intelligence), data analytics, & DSS for day-to-day operational decision-making & competitive advantage.
Informational slide. Company financials who the increases in net profit, sales growth of 6.2% & income growth of 7.6% in 2007. Management has made a science out of monitoring the metrics that allow it to understand when, where, & why consumers buy beer. Insights have allowed the company to post double-digit gains for 20 straight quarters.
Article includes trends, vendor lists, etc. This is a great opportunity to bring in discussion about the difficulties associated with integrating KM systems throughout an organization. Sometimes the power of culture is underestimated. Trust may be nonexistent making this an impossible task.
Planning system development effectively at the outset is extremely important so that needs at all levels may be considered. Effective planning will help to prevent (minimize) data silo creation, & increase overall efficiency.
It is easy to see how strategies are less effective without BI tools. Discuss how leaders & followers might champion such initiatives. Working together in groups to promote change. Experts should be given incentives to help integrate & execute change.
Informational slide. Core BI functions & features are listed in this table.
Click images for hot links to home pages. Each has a unique product offering; many similarities. These are major organizations that are seeking customers for their respective enterprise systems.
Use this graph in discussion of how all of these pressures are impacted by actions of others throughout the organization.
Discuss some event-driven alerts within the experience of the students & actions that would ensue from analyses of the data . Inventory level monitoring will necessitate reordering. How might these alerts be built into business processes from what has been discussed in class? Credit card balance payoff, for instance, might trigger follow up that customer may be getting ready to cancel the card, or to take on additional debt such as to purchase a home.
A sample performance dashboard is displayed in this figure. In class, it is interesting to look at other examples which can be manipulated so that students can see how & why the indicators change. Software can be configured to alert staff to unusual events & to automatically trigger defined corrective actions.
Students may be engaged in lively discussion of examples from their own experiences from each category.
Informational slide. Figure illustrates basic BI components that support operational decisions in real-time & tactical & strategic decisions. Operational raw data are commonly kept in corporate or operational databases.
Informational slide. Illustration of how a BI system works.
Data latency – speed in which data is captured.
Valuable capabilities of dashboards. How might these capabilities be exploited for maximum effectiveness by a management team? Full implementation for full benefit.
Challenge students to finds ways to improve upon this dashboard application.
Facilitate discussion of importance in ad hoc capability in terms of real-time decision making.
Informational slide. The relationship between BPM & other components can be seen in this figure. The objective of BPM is strategic – to optimize the overall performance of an enterprise. By linking performance to corporate goals, decision makers can use the day-to-day data generated throughout their organization to monitor KPIs & make decisions that make a difference.
It is never wise to ignore analytical tools such as these for successful business operations.
Text analytics transforms unstructured text into structured text data. That text data can then be searched, mined & trends discovered. Discuss application in businesses most familiar to students.
How is IT of benefit in these processes? Increased accuracy of data. Quicker access to data.
Discuss types of decisions, such as scheduling, that may be fairly easily automated.
Without IT, this isn’t possible.
IT speeds up the decision making process. Generally will increase effectiveness. Like anything, IT is only as good as what goes into it.
Task students to find other capabilities.
Informational slide. Data are entered from the sources on the left side & the models from the right side in this figure. Knowledge can also be tapped from the corporate knowledge base. As more problems are solved, more knowledge is accumulated in the organizational knowledge base.
Discuss how each of these can be turned into successes. Start with sponsor visibility. Communicate personal benefits in supporting such initiatives (what’s in for me). Do not underfund. Communicate successes along the way. Directly tie to profitability & within the control to some extent of everyone.