CHAPTER 12
Business Intelligence
CHAPTER OUTLINE
12.1 Managers and Decision Making
12.2 What Is Business Intelligence?
12.3 Business Intelligence Applications for
Data Analysis
12.4 Business Intelligence Applications for
Presenting Results
12.5 Business Intelligence in Action: Corporate
Performance Management
LEARNING OBJECTIVES
1. Identify the phases in the decision-making
process, and use a decision-support framework
to demonstrate how technology supports
managerial decision making.
2. Describe and provide examples of the three
different ways in which organizations use
business intelligence.
LEARNING OBJECTIVES (continued)
3. Specify the BI applications available to users
for data analysis, and provide examples of how
each might be used to solve a business
problem at your university.
4. Describe three BI applications that present
the results of data analyses to users, and offer
examples of how businesses and government
agencies can use each of these technologies.
LEARNING OBJECTIVES (continued)
5. Describe corporate performance
management, and provide an example of how
your university could use CPM.
Chapter Opening Case:
Quality Assurance at Daimler AG
Source: Alperium/Shutterstock
12.1 Managers and Decision Making
Management
© Sigrid Olsson/Photo Alto/Age Fotostock
The Manager’s Job and Decision Making
Managers have three basic roles
(Mintzberg 1973)
Interpersonal roles
Informational roles
Decisional roles
The Manager’s Job & Decision Making
(continued)
Decisions and Decision making
Source: Image Source Limited
Decision Making Process
Why Managers Need IT Support
The number of alternatives to be considered
constantly increases.
Decisions must be made under time
pressure.
Decisions are more complex.
Decision makers can be in different
locations and so is the information.
A Framework for Computerized
Decision Analysis
Problem Structure
The first dimension deals with the problem
structure, where the decision making processes fall
along the continuum ranging from highly structured to
highly unstructured decisions.
Highly
structured
Semistructured
Order entry
Loan approval
Higly
unstructured
Building new plant
The Nature of Decisions
The second dimension of decision support
deals with the nature of decisions
Operational control
Management control
Strategic planning
12.2 What Is Business Intelligence?
Source: Angela Waye/Shutterstoc
The Scope of Business Intelligence
Smaller organizations:
Excel spreadsheets
Larger organizations:
Data mining, predictive analytics,
dashboards
Source: Dundas Software, www.dundas.com/ dashboard/online-examples/
screenshots/Marketing-Dashboard.aspx
How Organizations Use BI
Develop few, related BI applications
Data mart
Develop infrastructure to support enterprisewide BI
Enterprise data warehouse
Support organizational transformation
Enterprise data warehouse
12.3 Business Intelligence Applications
for Data Analysis
Multidimensional Analysis or
Online Analytical Processing
(OLAP)
Data Mining
Decision Support Systems
© Toh Kheng Ho/Age Fotostock America, Inc.
Multidimensional Analysis or
Online Analytical Processing (OLAP)
Source: Angela Waye/Shutterstoc
Data Mining
Source: Corbis/Image Source Limited
How Business Intelligence Works
© Aydin/Age Fotostock America, Inc.
Decision Support Systems (DSS)
DSS capabilities
Sensitivity analysis
What-if analysis
Goal-seeking analysis
© STOCKBROKERXTRA/Age Fotostock America, Inc.
12.4 Business Intelligence Applications
for Presenting Results
Dashboards
Data Visualization Technologies
Geographic Information Systems
Real-Time BI
Digital Dashboard (example)
Source: MicroStrategy
Digital Dashboard (example)
Source: Dundas Software, www.dundas.com/ dashboard/online-examples/
screenshots/Marketing-Dashboard.aspx
Digital Dashboard Demo
http://www.informationbuilders.com/rfr/qtdem
o/AdvVis_ExecDash/AdvVis_ExecDash.html
A Bloomberg Terminal
Source: Carlos Osario/Zuma Press
Management Cockpit
Source: The Management Cockpit is a registered trademark of SAP,created by Professor M.Georges
.
Data Visualization Systems
The Power of Visualization
Even though a picture is “worth a thousand
words,” we have to be very careful about just
what we are seeing.
Remember, on the Internet, it is
“user beware!”
Example of data visualization
Hans Rosling at the TED Talks
GISMO
GISMO is a geographic information system
developed for the city of Corvallis, Oregon.
12.5 Business Intelligence in Action:
Corporate Performance Management
FIGURE 12.7 1-8000 CONTACTS customer service agent dashboard.
Chapter Closing Case
• The Business Problem
• The IT Solutions
• The Results