Business Intelligence: Challenges and Opportunities
Miguel de Castro Neto
Porto, 20-22 June 2013
Decision makers
need the right
information in the
right moment in the
right place !!!
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
2
1
Business Intelligence
“A Business Intelligence System”
A paper written by H.P.Luhn in IBM Journal
The date was October 1958
Was Luhn's definition on target?
You bet it was!!!
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
3
Porto, 20|22 June
3
A Brief History of BI
“An automatic system is being developed to disseminate
information to the various sections of any industrial, scientific, or
government organization…
The objective of the system is to supply suitable information to
support specific activities carried out by individuals, groups,
departments, divisions, or even larger units... To that end, the
system concerns itself with the admission of acquisition of new
information, its dissemination, storage, retrieval, and
transmittal to the action points it servers.”
Luhn, 1958
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
4
Porto, 20|22 June
4
2
Business Intelligence
Capability of collecting and analyzing
internal and external data to generate
knowledge and value for the
organization. This includes business
process decision support at the strategic,
tactical, and operational levels
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
5
Business Intelligence Today
BI combines products, technology, and methods to
organize key information that management needs to
improve decision making (profit, performance, ...)
BI is an enterprise-wide platform that supports
reporting, analysis and decision making.
BI leads to:
Fact-based decision making
“Single version of the truth”
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
6
3
What’s the best that can happen?
Predictive Modelling
What will happen next?
Forecasting/Extrapolation
What if these trends continue?
Statistical Analysis
Why is this happening?
Alerts
What actions are needed?
Query/Drill Down
Where exactly is the problem?
Ad Hoc Reports
How many, how often, where?
Standard Reports
What happened?
Analytics
Optimization
Access and
Reporting
Competitive Advantage
Business Intelligence and Analytics
Degree of Intelligence
Business
Intelligence:
Challenges
and Opportunities | Miguel de Castro Neto
Davenport
& Harris,
2007
2013
Porto, 20|22 June
7
Time to action
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
Bolder Technologies
2013
Porto, 20|22 June
8
4
Business Performance Management
Finance
Processes
Vision and
Strategy
Learning &
Development
Customers
Balanced Scorecard
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
9
Porto, 20|22 June
10
A Generic BI Environment
Data
Integration
Data
Warehouse
Data
Access
Dependent
Data Mart
Analysis and Delivery
Source Systems
Dependent
Data Mart
Metadata
Metadata Processes
Data Quality Processes
Watson, 2009
Governance Processes
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
5
Mega Trends ???
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
11
Mega trends transforming business today
90%
of businesses will be
operating in the cloud
by 2013*
4 Exabytes
of unique information
in 2011**
Data is predicted to grow
at least 75 times by 2020***
>500
million social media
members**
Double
Digit
budget cuts**
* - Gartner Group
** - http://www.simplysecurity.com/2011/04/29/forrester-cloud-market-to-hit-240-billion-by-2020/
*** http://www.informatica.com
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
12
6
EMBRACE
ANALYTICS
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
13
Future BI Architecture
BI for Everyone
& Everywhere
Structured &
Unstructured
Data
Internal &
External
Monitoring
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
14
7
BIG DATA
Three aspects of big data:
Big transaction data:
data Massive growth of
transaction data volumes
Big interaction data:
data Explosion of new
types of data such as social media and
device data
Big data processing:
processing Highly scalable
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
Porto, 20|22 June 15
processing needed
Data??
What Is Big Data
These fundamental shifts are
fueling explosive growth in big
data—larger volumes, greater
variety, and faster velocity.
2013
Mega trends transforming business today
70%
Of people in China access
Internet with a handset*
* - http://www.simplysecurity.com/2011/04/29/forrester-cloud-market-to-hit-240-billion-by-2020/
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
16
8
Business Environment
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
17
Productivity Boost
Companies that use “data-directed
decision-making” (defined “not only by
collecting data, but also by how it is used - or
not - in making crucial decisions”) enjoy a 56% boost in productivity.
Eric Brynjolfsson, director of the MIT Center for Digital Business and economist at the
Sloan School of Management at the Massachusetts Institute of Technology
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
18
9
Big Data and Analytics
THE LEADING QUESTION
How are organizations using analytics to gain
insight and guide action?
FINDINGS:
Top-performing organizations are twice as likely to apply
analytics to activities.
The biggest challenges in adopting analytics are managerial
and cultural.
Visualizing data differently will become increasingly valuable.
Big
Data,Intelligence:
Analytics and
the Path
From
Insights to
Value, de Castro Neto
Business
Challenges
and
Opportunities
| Miguel
MIT
2013Sloan Management Review, Winter 2011
Porto, 20|22 June
19
Priorities in sync
CIOs and CEOs both aim to
focus on insight and
intelligence, client
intimacy and people skills
over the foreseeable future
Business
Intelligence:
Challenges
andthe
Opportunities
| Miguel
de Castro
Neto Study, IBM, 2011
The
Essential
CIO – Insights
from
Global Chief
Information
Officer
2013
Porto, 20|22 June
20
10
CRITICAL
ISSUES
Analytical
Talents
Information
Delivery
Data Management
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
22
11
Data Management
Relevance
Sourcing
Quantity
Quality
Governance
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
23
Data Quality
It is in
context
It is
consistent
It is current
It is
complete
It is correct
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
It is
controlled
Porto, 20|22 June
24
12
Data Governance
What rules and processes are needed to manage
data from its creation through its retirement?
Acquisition
Cleansing
Organization & Storage
Maintenance
Retirement
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
25
Porto, 20|22 June
26
Information
Delivery
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
13
The fundamental challenge
of dashboard design is to
display all the required
information on a single
screen, clearly and without
distraction, in a manner that
can be assimilated quickly
Business Intelligence:
Stephen
Few Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
27
Copyright © 2012, SAS Institute Inc. All rights reserv ed.
14
ATTRACT
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
THE RIGHT TALENTS
Porto, 20|22 June
29
By 2018, the United States alone could
face a shortage of 140,000 to 190,000
people with deep analytical skills as well
as 1.5 million managers and analysts with
the know-how to use the analysis of big
data to make effective decisions
Big data: The next frontier for innovation, competition, and productivity,
McKinsey Quarterly, Maio de 2011
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
30
15
SUCCESS
CHALLENGES
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
31
Road Map to Success
An Executive vision and commitment to demand an
information-driven organization and culture
Focus upon key organizational dimensions
Human Capital
Internal Information Processes
Technical Infrastructure
Organizational Culture
Continual alignment with business objectives
Supported by an enterprise analytics Center of
Excellence
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
32
16
Centers of Excellence Characteristics
Sponsored by the executive team
Includes IT, business domain expertise, and analytic
expertise
Has a well defined charter, responsibilities, and
processes
Collaborates with ALL appropriate stakeholders
Strives to make analytics a repeatable and accessible
process
Emphasizes the implementation of successful
analytic applications
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
SAS Institute Inc., 2012
2013
Porto, 20|22 June
33
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
34
17
We don’t have a choice
on wether we DO
analytics, the question is
how well we DO it.
Business Intelligence: Challenges and Opportunities | Miguel de Castro Neto
2013
Porto, 20|22 June
35
Miguel de Castro Neto
Deputy Director, ISEGI, Universidade Nova de Lisboa
mneto@isegi.unl.pt
18