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Business Intelligence - A Management Perspective

vinaya.hs
vinaya.hs

A presentation on Business Intelligence by Dr. Lakshmi Mohan

1 of 47
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Business Intelligence - A Management Perspective

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  • 13. GE’s Concept of “Span” - Measures the operational reliability for meeting a customer request … the time window around the Customer Requested Delivery Date in which the delivery will happen - High Span  Poor capability to meet customer need Objective  Zero span - Squeeze the two sides of the delivery span - days early and days late - ever closer to the center - the exact day the customer desired RESULTS : Plastics : 50 days span to 5 Aircraft Engines : 80 days span to 5 Mortgage Insurance : 54 days span to 1
  • 14. The GE Process - In the CEO’s Annual Letter (Feb 2001) When the order is taken, that date becomes known to everyone, from the first person in the process receiving the castings, circuit boards or any other components from the supplier, all the way through to the service reps who stand next to the customer as the process is started up for the first time. Every single delivery to every single customer is measured and in the line of sight of everyone ; and, everyone in the process knows he or she is affecting the business-wide measurement of span with every action taken. WHAT GETS MEASURED AND REWARDED GETS DONE !
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  • 16. What are Enterprise Systems? An integrated suite of information systems that form the backbone of the enterprise for running and managing its operations
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  • 20. IT Architecture Should Integrate Information, Processes and Functions Traditional View Enterprise View
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  • 23. New Applications targeted by ERP vendors
  • 24. The Time Value of Information - Key Benefit of Enterprise Systems Frito-Lay System: Sales data from the hand-held computers of salespeople provided the foundation for “time synchronizing” the entire business process: Purchasing Manufacturing Logistics Sales P&G’s Continuous Product Replenishment System: An inter-organizational system using EDI to transfer the scanner data from retailers to P&G’s computers, which figures out when and where to replenish the product -- minimizes mistakes and bill-backs, lowers inventory and improves cash-flow for both P&G and retailers Enterprise Systems compress the time taken for information flows.
  • 25. An Opportunity To Be Seized . . . . - Computers used in Business for Nearly 50 Years - Dazzling Progress in Technology - Significant Investments in IT Infrastructure Hardware, Software and Peopleware Focus on OPERATIONAL SYSTEMS has blurred the potential of using IT for MANAGING the Business YET . .
  • 26. The Information Age Paradox Lots of DATA . . . but no INFORMATION to manage the business The 1980s launched the Information Age. Still, most managers are less than satisfied with their information systems.
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  • 31. Information Must be Tailored to Management Level Management Level Lower Middle Top Operational Control Narrow Narrow Internal Historical Micro Management Control Strategic Planning Wide Wide External Future Macro ? 1. Function 3. Scope of Information 2. Scope of Responsibility 4. Sources of Data 5. Time Horizon 6. Level of Detail
  • 32. The Data Isn’t Where We Need It! Senior Managers -Strategic Planning Middle Managers - Management Control Front-Lines - Operational Control External, Soft Data Internal, Hard Data Corporate Data Warehouse The greatest challenge of the computer industry is to learn how to build information bases, not databases. The really important information cannot be easily quantified and exists outside the organization. - Peter Drucker (1993)
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  • 37. Mere Access to Quality Data . . . Will create a data overload that can affect managerial productivity. Investments on market research, telecommunications, etc. to deliver better quality data should be complemented by investments in systems to convert the data into useful information. Quality of the data conversion process is equally important.
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  • 44. The DURACELL EIS: How It Provides “Information ”  The CEO, Robert Kidder, manipulated a mouse attached to his workstation.  To compare the performance of work forces in the U.S. and overseas.  Computer displayed a crisp table in colors showing higher sales per employee in the U.S.  He asked the computer to drill down for more data to explain the difference.  At the end of the data-browsing session, the real problem was found: .... TOO MANY SALESPEOPLE IN GERMANY WERE WASTING TIME CALLING ON SMALL CUSTOMERS.
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