Business intelligence (BI) is the ability of an organization to collect, maintain, and organize data. This produces large amounts of information that can help develop new opportunities. Identifying these opportunities, and implementing an effective strategy, can provide a competitive market advantage and long-term stability.In short BI transforms data into knowledge - BI is used to collaborate on share view of the business drivers
Transforms data into knowledgeWhyThe world of data is changing80% unstructured, 10x increase 5/y, N/devices person, data marketsNew set of answers Brand social feeling, optimize using data mashups, predict futureMany organizations today use a collection of Business Intelligence (BI) tools and applications to allow experts to gather information from a variety of sources, analyze it, and share it with managers and staff.
Enterprise Business Intelligence requires not just a comprehensive BI tool set, but pervasive BI that provides insight to all employees within the context of their workflows. It needs to unify the many fragmented systems into a coherent enterprise view, while aligning forward-looking information to real time and historical data. It must be integrated ensuring accuracy and integrity of information across all delivery channels and resulting in lower cost of ownership. It needs to be fully secure to protect all enterprises information assetsSelecting the Right BI ToolKnow Your Business Check Your Solution Expectations Change Your Vendors Wisely Same old needs (but in faster cycles)Know our business, survive competition, make (better) decisions!Selecting a BI Tool with a specific need:Identify the problemFind the solution with clear business objective.
Many organizations today use a collection of Business Intelligence (BI) tools and applications to allow experts to gather information from a variety of sources, analyze it, and share it with managers and staff. Enterprise Business Intelligence requires not just a comprehensive BI tool set, but pervasive BI that provides insight to all employees within the context of their workflows. It needs to unify the many fragmented systems into a coherent enterprise view, while aligning forward-looking information to real time and historical data. It must be integrated ensuring accuracy and integrity of information across all delivery channels and resulting in lower cost of ownership. It needs to be fully secure to protect all enterprises information assets
Planning It should clarify knowledge goals and establish effective values and processes to support these directions.Takes time and demands perseverance.Requires ongoing monitoring and measurement.Progressive review and re-planning to handle changing environment.-------------------------------------------------------------------------------PeopleThe most important aspect is to recognize that strategic knowledge management lies with the people.People manage the system and processes.Need is to convince people about the benefits of strategic knowledge management.---------------------------------------------------------------------ProcessesKnowledge management principles need to be put into application via effective workplace practices.Careful management of the alignment of strategies, principles, processes and practices needs to be done.Messages about what is important might be perceived differently across the organization.Need of the hour would be to monitor the actual process regularly to ensure that it reflects knowledge priority--------------------------------------- ProductsEach organization builds it’s own knowledge output. Might be shared to client or exist as internally shared knowledge objects.Explicit knowledge should be captured and distributed efficiently and timely.Example – Intranet.-----------------------------------PerformanceRegular review to ensure that the financial and social capital investment is positively influencing the intellectual and social capital of the organization.Regular evaluation to consider how well knowledge management is integrated into the business context.------------------------
The purpose of a business intelligence system is to provide the right information, to the right user, at the right time.A tool is a computer programAn information system is a collection of hardware, software, data, procedures, and peopleA reporting tool can generate a report that shows a customer has canceled an important order.A reportingsystem, however, alerts that customer’s salesperson with this unwanted news, and does so in time for the salesperson to try to alter the customer’s decision.A data-miningtool can create an equation that computes the probability that a customer will default on a loan.A data-miningsystem uses that equation to enable banking personnel to assess new loan applications.
SKM Framework should create a knowledge view of the organisation and use knowledge dimensions as the basis for its competitive position in a specific industry or market. Technology and business models can then be combined to produce strategic KM capabilities that will deliver sustainable advantage
Knowledge management and business intelligence
KNOWLEDGE MANAGEMENT & BI
Mohamed Azmi Taufik
Amal Nabilah Md Amin
2. Business Intelligence as a subset of Knowledge Management
3. Business Intelligence and Strategic Knowledge Management
Key aspects of any business
o Knowledge Management
o Business Intelligence
What is Business Intelligence?
A set of theories, methodologies, processes, architectures and
technologies that transform raw data into meaningful and useful
information for business purposes.
Business intelligence can be defined as "a broad collection of
software platforms, applications, and technologies that aim to help
decision makers perform more effectively and efficiently" (Arnott,
Gibson and Jagielska, 2004)
Business Intelligence (BI) is computer-based techniques used in
identifying, extracting, and analyzing internal business data.
Business intelligence aims to support better business decisionmaking by upper management. It is also called a Decision Support
The importance of BI
Allows organizations to get a more accurate and detailed
picture of what is going on in terms of business and
Brings visibility into the organization at granular levels
It allows organizations to review customer behavior
BI allows the users to transparently access and analyse any
type of data through applications that are designed to
support the core business processes
Keys to Successful BI Implementation
Data “On-Boarding” Efficiency
On-Time Information Delivery
BI infrastructure enables the organization;
to unlock the information and see data in new ways
to integrate data across the enterprise
empower business users to become information self- sufficient.
empowers knowledge worker to make faster and better decisions
Improve productivity with better decision making and faster response-tomarket changes or other business events.
How BI and KM are related
Business intelligence starts with a data warehouse and query/reporting and analysis tools for
the purpose of measuring historical activity.
However over time, BI activities will expand outward to embrace other kinds of data and
business processes that currently fall within the domain of knowledge management.
Review, Measure, Refine
Rules and Models
STRATEGIC KNOWLEDGE MANAGEMENT
STRATEGIC KNOWLEDGE MANAGEMENT
o Strategic Knowledge management helps in identifying
the needs of a firm, organizing flow of information ,
implementing the plan and evaluating the whole
exercise to find gaps and to rectify things in time.
o Strategic Knowledge management helps in achieving
the organizational goals.
A strategic perspective on KM
A strategic perspective on KM means addressing:
1) vision and direction, and
2) how to organize and manage knowledge-related
resources for competitive advantage.
Effects of strategic KM on innovation
Effects of strategic KM on organisational performance
(1) financial performance - market performance
(profitability, growth and customer satisfaction);
(2) process performance – refer to quality and efficiency;
(3) internal performance - relates to individual capabilities
(employees’ qualification, satisfaction and creativity)
The 4 common barriers to
Strategic Knowledge Management
The “Strategic Intent” for KM / KS is not understood by those
who must implement it…and not translated into
measurable objectives via a “Systems Thinking” approach.
and key competency
development is not linked to
& the impact of the “Change”
is not fully understood.
and tied to budgets
& not the strategic
Key processes, ERP systems & IT are not designed to
leverage the drivers of business strategy
- they tend to be “transactional” and not “transformational”.
SKM & BI
Understand knowledge and KM technologies important to build &
implement BI system
Parameterization of the BI system is very essential for accurate
performance. It involves :
Identifying and modelling business knowledge
Monitoring and modifying various data
Understanding how to interpret result & modify further queries
Use the results for improving business decision making on
SKM & BI
Business Intelligence (BI) refers to skills,
processes, technologies, applications and
practices used to support decision-making.
These involve intelligent data analysis and
mapping required for decision-making.
Business Intelligence and SKM provides business / e-business with the
necessary intelligence to improve on various business aspect.
An intelligent organization is always positioned to excel and satisfy
by making better decision
TM’s APPLICATIONS INFORMATIONS
Enterprise Data WareHouse-BI Architecture
SUN DW20 SERIES
MPP Technology 6 CPU – Dual
ETL Scripting –
The outputs are crucial for the decision making processes
The CUBE Engine
The Analytic Workspace (AW) is used to store the multidimensional data types, e.g.
the dimensions, measures and cubes. An Oracle database schema can contain one or
more analytic workspaces in addition to owning the normal relational objects such as
the tables, indexes and materialized views.
Business intelligence tools search data to find meaningful information; they fall into two
classifications – reporting tools and data-mining tools
Reporting tools read data from a variety of sources, process that data, and produce
Use simple techniques; e.g., sorting, selecting and grouping to calculate totals and
Used primarily for assessment; e.g., What has happened in the past? What is the current
situation? and how does the current situation compare to the past?
Data-mining tools process data using statistical techniques, many of which are
Data mining involves searching for patterns and relationships among data.
In most cases, data-mining tools are used to make predictions; e.g., what is the
probability that a customer will default on a loan?