The document discusses the evolution of knowledge management and business intelligence applications. It describes 5 waves of these applications: 1) group memory systems for information sharing, 2) corporate intranets and decision support portals, 3) extranets and interenterprise portals, 4) e-commerce and clickstream analysis, 5) business intelligence applications that proactively deliver personalized insights. The next generation is shifting towards real-time personalization using these applications to better understand customer behavior and serve their unique needs.

1. Jitendra Tomar
My Sincere Thanks to Marcia Robinson & Dr. Ravi Kalakota
Business Intelligence:
The Next Generation of Knowledge Management
Introduction
Knowledge neither product nor capability; a critical framework of a fully evolved information
economy
– WalMart has a 100-terabyte data warehouse to monitor and capture each
each store for better inventory mgmt; improved collaboration with supplier; merchandise on
individual store basis; and to provide superior shopper satisfaction
– Success from anticipating customer needs before they do
First gen e-business apps focus on buying and selling goods via Web
Second gen apps focus on gaining insights from organizations’ data collected from each
transaction
– Customer loyalty, enhance profitability
– Interpret past transactions and use the knowledge to support decisions a
the company should be headed
Evolution of Knowledge Mgmt Apps
Companies want apps to make sense of the data gathered
– How to make effective use of raw data
– How to convert raw data into revenue
Foundation of KM: information sorting,
– Reactive, data centric to proactive, query
Wave 1: Group Memory Systems
Sharing of info throughout the company
– Buzzword of 90s
– Discussion boards, bulletin systems, corporate intranets
My Sincere Thanks to Marcia Robinson & Dr. Ravi Kalakota
Business Intelligence:
The Next Generation of Knowledge Management
Knowledge neither product nor capability; a critical framework of a fully evolved information
terabyte data warehouse to monitor and capture each
each store for better inventory mgmt; improved collaboration with supplier; merchandise on
individual store basis; and to provide superior shopper satisfaction
Success from anticipating customer needs before they do
s focus on buying and selling goods via Web
Second gen apps focus on gaining insights from organizations’ data collected from each
Customer loyalty, enhance profitability
Interpret past transactions and use the knowledge to support decisions a
the company should be headed
Evolution of Knowledge Mgmt Apps
Companies want apps to make sense of the data gathered
How to make effective use of raw data
How to convert raw data into revenue
Foundation of KM: information sorting, extraction, packaging, and dissemination
Reactive, data centric to proactive, query-driven knowledge world
Wave 1: Group Memory Systems
Sharing of info throughout the company
Discussion boards, bulletin systems, corporate intranets
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The Next Generation of Knowledge Management
Knowledge neither product nor capability; a critical framework of a fully evolved information
terabyte data warehouse to monitor and capture each transaction in
each store for better inventory mgmt; improved collaboration with supplier; merchandise on
Second gen apps focus on gaining insights from organizations’ data collected from each
Interpret past transactions and use the knowledge to support decisions about the direction
extraction, packaging, and dissemination

2. Jitendra Tomar Page 2
My Sincere Thanks to Marcia Robinson & Dr. Ravi Kalakota
– Instant access to data and reporting info that had previously taken days or weeks to obtain
– Core: Lotus Notes and Instraspect apps
Failed to live up to promise
– Few can define it
– Software vendors distancing themselves from GM
– Costly efforts not delivering expected ROI
Wave 2: Corporate Intranets and Decision Support Portals
For complete and uniform linkage of data resources scattered throughout the organization
Intranets alone don’t create knowledge
– Data analysis necessary
– Decision support portals to automate predictable components of decision maker’s routine
Pre-requisite for responsive business model: Decision support portals built on intranets
– Home Depot
– Decision makers can ask and answer mission-critical questions about business using
transaction data assets that have been captured, not exploited to fullest extent
Wave 3: Extranets and Interenterprise Portals
Fast info access, customized data and responsiveness driving extranets
– New requirements: manage huge data volumes, data breadth coverage, cross-platform
support, response-time speed, and broad range of interface choice
– DaimlerChrysler
Extranet apps encourage trading partners to improve profits by managing inventories in supply
chain
– preferential treatment for visibility
– Lexmark
Wave 4: e-Commerce and Click Stream Analysis
User click stream analysis
– Marketers need every customer activity and purchase; to be able to analyze, understand
their buying preferences; to anticipate their changing expectations
– Testing limits of conventional database mgmt; new DBs emerging
Intelligent E-mail management
– Kana Communications, eGain, and Siebel
– Tracks and manages millions of daily interactions for analyzing, reporting and launching
customized initiatives in response
Knowledge Portals
– Brio, Business Objects, Cognos, DataChannel, Plumtree, Portera
– Call center mgrs to understand historical service trends and customer service patterns,
identify problem areas; ultimately increase customer retention rates
Wave 5: Business Intelligence
Data analytics, coupled with broadcast engine technology, foundation for proactive business
intelligence
– Anytime, anywhere, any place
BI is proactive and data driven
– Automates delivery of info to customers using exception conditions and recurring schedules
as triggers for communication
Traditional decision support apps do not personalize info
– MicroStrategy’s DSS Broadcaster include new personalization and distribution capabilities
New BI apps turning traditional query-and-response paradigm of decision support on its
head

3. Jitendra Tomar
My Sincere Thanks to Marcia Robinson & Dr. Ravi Kalakota
Next gen BI apps to use ecommerce technology to open up data warehouse to hand
– Prior models relied on static info about customer transactions
– Corporations will shift to sense and respond infrastructure to serve customers better
For info-based BI models
knowledge apps
Elements of Business Applications
Requirement for Successful BI Strategy
Data Organization and Collection
First requirement of a successful BI strategy
Requires visibility into organization’s activities with both internal and external
constituencies
– data from multiple locations
Factors critical to success of large
– Scalability
– Flexibility
– Performance
Analysis and Segmentation
These apps offer tools for
Goal is to improve pricing, retain customers longer and find new revenue streams
– Travelocity
Many Internet businesses do not have a clue about customer behavior on their Web sites
– Collect gigabytes of customer clickstream data every day
– For e-business marketing, emphasis on order size and margin
Several industries eager to exploit opportunities
– Telecom; BC Telecom
My Sincere Thanks to Marcia Robinson & Dr. Ravi Kalakota
BI apps to use ecommerce technology to open up data warehouse to hand
Prior models relied on static info about customer transactions
Corporations will shift to sense and respond infrastructure to serve customers better
based BI models to function well, integration framework necessary to tie
Elements of Business Applications
Requirement for Successful BI Strategy
Data Organization and Collection
First requirement of a successful BI strategy
into organization’s activities with both internal and external
data from multiple locations
Factors critical to success of large-scale data integration
Scalability
Flexibility
Performance
These apps offer tools for data mining
Goal is to improve pricing, retain customers longer and find new revenue streams
Travelocity
Many Internet businesses do not have a clue about customer behavior on their Web sites
Collect gigabytes of customer clickstream data every day
business marketing, emphasis on order size and margin
Several industries eager to exploit opportunities
Telecom; BC Telecom
Page 3
BI apps to use ecommerce technology to open up data warehouse to hand-held devices
Corporations will shift to sense and respond infrastructure to serve customers better
to function well, integration framework necessary to tie
into organization’s activities with both internal and external
Goal is to improve pricing, retain customers longer and find new revenue streams
Many Internet businesses do not have a clue about customer behavior on their Web sites
Collect gigabytes of customer clickstream data every day
business marketing, emphasis on order size and margin

4. Jitendra Tomar
My Sincere Thanks to Marcia Robinson & Dr. Ravi Kalakota
Real-Time Personalization
Personalization apps emerging
– to make businesses responsive to customers’ needs
– reduced marginal cost of
Personalization apps allow you to
– provide each customer with personalized Web page
– display only info you want individual customers to see
– proactively notify customers of product improvements and relevant
upgrades, promotions, and service e
– tailor information and recommendations according to each customer’s
individual preferences
– deliver personally relevant information related to products that the
customers own
Infrastructure for Broadcast, Retrieval, and Interaction
To proactively deliver info to every customer via medium of their choice
– Sabre
Multiple devices proliferating
Both prefabricated and custom
Performance Monitoring and Measurement
These apps provide managers the in
– Use KPIs linked to a balanced scorecard
– BT
SEM from SAP
My Sincere Thanks to Marcia Robinson & Dr. Ravi Kalakota
Personalization apps emerging
to make businesses responsive to customers’ needs
reduced marginal cost of personalization
Personalization apps allow you to
provide each customer with personalized Web page
display only info you want individual customers to see
proactively notify customers of product improvements and relevant
upgrades, promotions, and service enhancements
tailor information and recommendations according to each customer’s
individual preferences
deliver personally relevant information related to products that the
customers own
Infrastructure for Broadcast, Retrieval, and Interaction
ly deliver info to every customer via medium of their choice
Multiple devices proliferating
Both prefabricated and custom-made software can be integrated into the platform
Performance Monitoring and Measurement
These apps provide managers the info they need to improve operations and strategy
Use KPIs linked to a balanced scorecard
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proactively notify customers of product improvements and relevant
tailor information and recommendations according to each customer’s
deliver personally relevant information related to products that the
ly deliver info to every customer via medium of their choice
made software can be integrated into the platform
fo they need to improve operations and strategy

5. Jitendra Tomar
My Sincere Thanks to Marcia Robinson & Dr. Ravi Kalakota
Technical Elements of BI Framework
Three Layer BI Architecture
Roadmap for Managers
1. Identify goals
2. Determine knowledge sources
3. Determine info needs
4. Collect, clean, prepare data
5. Balance external, internal data
6. Develop new approaches to categorizing information
7. Build the data model
8. Deploy model
9. Monitor model
10. Measure ROI
My Sincere Thanks to Marcia Robinson & Dr. Ravi Kalakota
Technical Elements of BI Framework
Roadmap for Managers
Determine knowledge sources
Collect, clean, prepare data
Balance external, internal data
Develop new approaches to categorizing information
Page 5