Professional Documents
Culture Documents
Final Report
Table of Contents
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Business Intelligence Report
The scope of this project is to build a “dummy” corporation using real-world data from
organizations and explore the use of a tool that extracts data and converts it into useful
information for better management decision-making. The tool used will be NetCharts Designer 5.1.
The purpose of this report is to describe the process and the approach used to provide
Business Intelligence for a dummy corporation using one of the available tools in the market.
3.0 Acronyms
IT Information Technology
BI Business Intelligence
DW Data Warehousing
ROI Return-on-investment
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4.0 Industry Applications of Business Intelligence (BI)
4.1 Background/Introduction
the past, heavy emphasis and reliance by most Corporations for data/information and the ability of
the systems to synthesize the same to enable better and quick decision-making is seen as a distinct
competitive edge in the marketplace.1 The fallout of this paradigm has resulted in the critical need
for establishing a strong nexus between the Business Processes in a company and the
corresponding Information Technology needs to provide the needed Business Intelligence that
would facilitate Corporations to arrive at informed decisions through Data Analysis and Synthesis.
In such a setting, Business Intelligence refers to various tools, in the form of applications
and technologies, used to gather, convert, and interpret data regarding the nature of the business,
such as metrics on sales, production, and internal operations. In this day and age, there is a need
for decision makers to receive accurate, actionable, and standardized information in a timely,
proactive, and automated manner. Organizations that make use of these applications and
technologies and implement them in their Business will gain an automatic competitive advantage
over those that have to manually build comprehensive financial and operational reports. When
things are done manually, it often results in a huge disparity in information availability and
accuracy.
Organizations in the US and across the globe have invariably moved towards the concept
of “information democracy” in today’s global marketplace. This simply means that all users should
have access to the insight that they need to carry out their respective roles, and when information
is uniform and consistent across the enterprise. While companies look for ways to contain the costs
and complexity of managing data, the real goal is to leverage the information to make better
business decisions, to be more agile, and to gain insight into business performance. A recent
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survey of respondents constituting mostly IT and Business Professionals indicated that improving
data accuracy and integrity and gaining quick access to information is most important for their
organizations. Among other compelling findings in surveys, the need to find reliable business
intelligence (BI) strategies is becoming increasingly important. Currently, most organizations are
not taking full advantage of existing BI solutions. Benchmarks conducted on data warehouses (DW)
in organizations, small and large, across the United States revealed that companies are successful
in their BI & DW initiatives. While quick access to data and providing a repository of decision
support data scored high, completeness of data and improved communication scored low.
To make the case for value, the International Data Corporation (IDC), a market research
and analysis firm, has found that organizations who successfully integrate Business Intelligence into
a Business Process can achieve a significant return on investment. IDC’s Financial Impact of
Business Analytics study interviewed over 40 companies in a wide variety of industries in North
America and Europe. The study found that a Business Intelligence implementation generates a
median five-year return on investment (ROI) of 112% with a mean payback of 1.6 years on
average costs of $4.5 million. Of the organizations included in this study, 54% had an ROI of 101%
or more. The largest class of benefit was due to “business process enhancement”, where BI was
applied to operational decision in areas such as logistics, call centers, fraud detection, and
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marketing campaign management.
Despite its promise, BI is not exactly delivering the ROI that C-level executives have
expected. The cause for most BI problems is not so much about the technology but actually about
the significant effects that BI has on the organizations and its people. Therefore, effective change
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One reason why organizations would be resistant toward change is because of the fact that
they never seem to be able to figure out the quality and relevance of data – the starting point in a
BI initiative. One of the best ways to understand more about the current quality of data is to look
at how much the data is being used and how many users are actually using the data. Organizations
are now moving towards a pyramid that uses eight parameters as levels of data sophistication.
Data type & domain: looking at specific data type and attribute value domains to ensure
Uniqueness & referential integrity: uniqueness applies within an entity. Referential integrity applies
Consistency: while referential integrity addresses entity relationships, consistency is concerned with
Freshness and timeliness: freshness addresses the currency of the content of the data. Timeliness
Business rules conformance: it deals with whether data is used and transformed consistently with
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4.3 BI and DW Success Stories4
The table below covers a snapshot of Success Stories in the BI space from some Major
Corporations:
Opportunities/Benefits
WALMART: optimized Items, costs, customer Analysis of each cost and each
merchandising, promotion and behavior, inventory levels item for all 3500 suppliers,
2% to 5%
SONY THEATRES: improved Detailed daily box office Forecasts of attendance and
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4.4 Business Intelligence – Governance Model
The fundamental components of governance are the mission statement, where the
organization or business unit provides and communicates overall purpose of the BI and DW
initiative; working definitions, which ensures common understanding between all parties involved;
and guiding principles, which provides specific direction to the project team. There will also be put
in place a Steering Committee, which will determine the mission and guiding principles, determine
the scope of each DW, establish quality standards, and sanction the governing data models.
The Data Warehousing Institute (TDWI) found in a recent survey that successful BI
initiatives are almost five times more likely to have project teams in which IT is “very aligned” with
the business. Organizations should ask some fundamental but pertinent questions when leading BI
initiatives:
Which possibilities for additional business do we have with our current customers?
BI and DW will lead to development of additional and profitable sales, increased efficiency of sales
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and marketing, improved customer service, decision support and monitoring, and cost reduction.
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4.5 Business Intelligence – The Operational Model
- Strategic Measures / Critical Success Factors of the Program in line with the Strategic
Objectives
There are two major success constructs that have emerged from a recent survey of all the
measures.
Product Measures
Individual impacts: quick and easy access to data; improves their decision-making
Development Measures
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4.6 Current state of Business Intelligence solutions
and analytical models to identify and solve problems. During the 1990’s, many organizations
around the US engaged in data warehousing projects. These activities included bringing together
the organization’s legacy systems to developing user interface tools for analysis and reporting. The
data warehouse is the underlying structure from which reports and documents for analysis are
generated. Tools typically are in the form of dashboards and scorecards. Dashboards give
information seekers insight into day-to-day progress and performance data on a real-time and
integrated basis. The whole purpose of a dashboard is to integrate all the necessary data and
visualize it to the decision-makers. It is ideal because information is conveyed quickly and executive
managers think of it as “eye candy”. A “Dashboard” type user interface design allows presentation
of complex relationships and performance metrics in a format that is easily understandable and
digestible by time pressured managers. More specifically, such interface designs significantly
shorten the learning curve and thus increase the likelihood of effective utilization. A scorecard is a
custom user interface that helps optimize an organization’s performance by linking inputs and
outputs both internally and externally through the use of metrics and graphs. To be effective, a
scorecard must link into the organization’s “vision”. Typically, tools can be categorized as data-
driven and model-driven. Model-driven systems tend to utilize analytical constructs such as
forecasting, optimization algorithms, simulations, decision trees, and rules engines. Data-driven
systems deal with data warehouses, databases, and online analytical processing (OLAP)
technology.6
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One of the best ways to measure how well organizations utilize information/data
management solutions and from which vendors these products and services were obtained is
As illustrated in the figure below, only 20% of respondents deploy BI tools widely
throughout the enterprise, followed by 32% whose deployment is limited to specific problems, and
another 30% who report “scattered” deployment. Nearly 15% roll out BI tools widely only after
initial deployment. These results indicate that only very few organizations take full advantage of BI
The survey also indicated that 68% of the respondents are using Microsoft Products for
their business intelligence and data management needs. 61% also use Oracle Products, while
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strength of roughly 5,000 and headquartered in Munich with field offices spread all across the
world. This company caters to the Telecom industry and primarily supplies products for the internet
market with stiff competition from other competitors, notably Allied, Inc and Tech Com. SmartBiz
is listed in the New York Stock Exchange (NYSE) as a publicly-held company and for the year
“To transform and enrich people’s lives through outstanding communications network and
growth of customers”.
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5.3 Company Operations
Business Processes:
The process view model depicting the flow of the above processes is shown below.
Repaired
Product
Defective
Product*
Customer Satisfaction*
* - Points of
Measurement
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5.5 Company Performance- Tracking and Monitoring
The Organization tracks and monitors its performance around the processes listed above
through a scorecard approach refereed to as the Balanced Scorecard. The Executive Management
chaired by the Chief Executive Officer and his direct reports review the performance on a monthly
5.6 Dashboard
The most recent Business Scorecard performance for the month of June ’07 is given below.
Repair Performance
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8 10 16
9 10 10
10 10 7
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7 26 20
8 24 20
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10 90 90
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5.7 E-R Diagram
Number of Findings
Target
Status
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5.8 Design Process
Load an access database consisting of the above 10 tables into the ODBC driver
Construct charts and graphs, key ingredients of a dashboard, using in-built system tools
Embed the completed dashboard onto a web interface and make it accessible for public
viewing.
The basic data was incorporated into tables that were saved as a Microsoft Access
database. The Access database was loaded into the Open Database Connectivity (ODBC) driver by
going into Administrative Tools in Control Panel and adding the SmartBiz database as a System
DSN (See Below). The tables were retrieved in NetCharts Designer 5.1 using Structured Query
Language (SQL) queries and the charts and graphs were made using the in-built system tools along
with some HTML scripting. Once all the components of the dashboard were created, it was then
loaded into a Java Server Page (.jsp) to make the contents available in a single page. The project
was then exported as a zip file and then uploaded in NetCharts Server 5.1 to be accessible for
public viewing.
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5.10 Design Output
http://68.38.10.229:8001/projects/SmartBiz/SmartBizPage1.jsp
6.0 Conclusion
Business Intelligence is one of the leading investment priorities for companies today. This
reflects greater recognition of the need to reduce complexity caused by multiple sources of
information and to improve decision-making processes in the enterprise. Yet companies face
implementation challenges, notably data integration, scalability, availability, and security issues.
Finally, providing innovative business practices that address cost of implementation issues, such as
fixed cost implementation, are creative ways to reduce customer risk and gain increased customer
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The approach described in this project demonstrates a simple but effective methodology of
translating key company measures into an operational dashboard for decision-making by SmartBiz,
Inc. With variations to this approach, it is easy to establish design of similar dashboards to provide
7.0 References
2. Eastwood, Matthew. Vesset, Dan. Morris, Henry D. HP: Delivering Value in Business
3. Knightsbridge Solutions LLC. A Practical Approach to Data Quality: Proven Formulas for
4. Chicago Business Intelligence Group (CBIG). Using Business Intelligence and Data
Warehousing Methods, Tools and Processes to Drive Business Results, White Paper, 2005.
5. Ariyachandra, Thilini. Watson, Hugh. Benchmarks for BI and Data Warehousing Success.
8.0 Acknowledgements
I wish to place on record my deep appreciation for all the guidance and advice given by my
professor, Bryan D. French, throughout the tenure of this project. His insightful comments now and
then helped me to be aware of certain aspects of this project that would not have been possible
otherwise. I also wish to thank some of my friends for their help and inputs.
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