Opening Case: Moneyball: About More Than Just the Players McGraw-Hill-Ryerson ©2015 The McGraw-Hill Companies, All Rights Reserved Chapter 3 Overview • SECTION 3.1 – DATA, INFORMATION, KNOWLEDGE, AND INTELLIGENCE – – – – – Introduction Organizational Data and Information Knowledge Business Intelligence and Big Data Supporting Decisions with Business Intelligence • SECTION 3.2 – DELIVERING INFORMATION, KNOWLEDGE, AND INTELLIGENCE ACROSS THE ORGANIZATION – Collaboration Systems • • • • • • • • Social Business, Collaboration, and Knowledge Content Management Systems Workflow Management Systems Groupware Video and Web Conferencing Enterprise Portals Instant Messaging The Role of Mobile Devices Copyright © 2015 McGraw-Hill Ryerson Limited 3-2 Learning Outcomes 1. Explain the defining value characteristics of both transactional data and analytical information, and the need for organizations to have data and information that are timely and of high quality. 2. Describe the difference between knowledge management and knowledge management systems. 3. Explain what Business Intelligence is and how it is impacting the way organizations are making decisions in today’s business environment. 4. Describe what is meant by a collaboration system, and how such a system can support both structured and unstructured decisions. Copyright © 2015 McGraw-Hill Ryerson Limited 3-3 Learning Outcomes 5. Explain the differences between, and the business advantages of, various types of collaboration systems, such as groupware, content management systems and workflow management systems. Copyright © 2015 McGraw-Hill Ryerson Limited 3-4 DATA, INFORMATION, KNOWLEDGE, AND INTELLIGENCE McGraw-Hill-Ryerson ©2015 The McGraw-Hill Companies, All Rights Reserved Organizational Data & Information Learning Outcome 3.1 For specific business issues, employees must be able to obtain and analyze all relevant data. – Data comes in different levels, formats & detail – Granularity refers to the level of detail. • Coarse granularity: summarized data • Fine granularity: often raw data – Surprising and valuable results from compiling, sorting and analyzing data of multiple types Copyright © 2015 McGraw-Hill Ryerson Limited 3-6 Classification of Data and Information Learning Outcome Levels, Formats, and Granularities of Organizational Data & Information 3.1 FIGURE 3.1 Copyright © 2015 McGraw-Hill Ryerson Limited 3-7 Transactional Data Versus Analytical Information Learning Outcome 3.1 FIGURE 3.2 Copyright © 2015 McGraw-Hill Ryerson Limited 3-8 Value of Timely Data & Information Learning Outcome 3.1 Timeliness of data depends on the decision that requires it. – Real Time data and Real Time information are immediate and up-todate. Permit: • Smaller inventories • More efficient operations • Faster diagnosis and solutions to problems • Faster cycle times for cash, sales, deliveries & payments Copyright © 2015 McGraw-Hill Ryerson Limited 3-9 Data & Information Quality Learning Outcome 3.1 Characteristics of High-Quality Data & Information FIGURE 3.3 Copyright © 2015 McGraw-Hill Ryerson Limited 3-10 Data and Information Quality Learning Outcome 3.1 Examples of Low-Quality Data FIGURE 3.4 Copyright © 2015 McGraw-Hill Ryerson Limited 3-11 Data Governance Learning Outcome 3.1 Refers to the overall management of the availability, usability, integrity, and security of organizational data – Businesses are required to have policies specifying accountabilities for data quality, security, privacy and as to who can access what data & information – Must comply with government laws and regulations, and accounting and other professional policies and by-laws Copyright © 2015 McGraw-Hill Ryerson Limited 3-12 Knowledge Learning Outcome 3.2 “Actionable information” that requires: – Understanding of the information – Ability to make inferences between “tidbits” of information – Be able to apply the information in the appropriate context • Explicit Knowledge—that which can be documented • Tacit Knowledge—contained in people’s heads Copyright © 2015 McGraw-Hill Ryerson Limited 3-13 Knowledge Management (KM) Learning Outcome 3.2 The process through which organizations generate value from their intellectual and knowledge-based assets – Codifying employees, partners & customers knowledge – Cultivating and promoting of use of organizational knowledge that resides within human experts Copyright © 2015 McGraw-Hill Ryerson Limited 3-14 Knowledge Management in Business Learning Outcome 3.2 • Has assumed greater importance as “baby-boomers” retire or employees are lost to outsourcing • Provides a competitive advantage when expertise can be accessed whenever it is needed • Knowledge Management Systems (KMS) – Capture, organize and disseminate knowledge • Shadowing – Involves less experienced person observing an expert • Joint Problem Solving – Novice and expert working together on a project Copyright © 2015 McGraw-Hill Ryerson Limited 3-15 Knowledge Management in Business Learning Outcome 3.2 • An effective KMS should: – Foster innovation by encouraging the flow of ideas – Improve customer service by reducing response time – Boost revenue by reducing time-to-market – Enhance employee retention by recognizing employee value – Streamline operations and reduce costs by eliminating redundant or unnecessary processes Copyright © 2015 McGraw-Hill Ryerson Limited 3-16 KM Technologies Learning Outcome 3.2 • Knowledge Repositories (Databases) • Expertise Tools often involving some AI • E-learning applications • Discussion and Chat Technologies • Search and data mining tools Copyright © 2015 McGraw-Hill Ryerson Limited 3-17 Crowdsourcing Learning Outcome 3.2 • Collecting knowledge from outside the organization • Power to tap into emerging trends • Cheaper, more innovative and more customer-friendly results • Real-time solutions • Use of mobile technologies Copyright © 2015 McGraw-Hill Ryerson Limited Crowdsourcing: The Crowd is Smarter than the Individual FIGURE 3.5 3-18 KM and Social Networking Learning Outcome 3.2 • Social Networking Analysis (SNA) is a process of mapping a group’s contacts to identify who knows whom and who works with them • Displays remotely connected employees • Can identify experts in a required field • Can create “communities of practice” • Identifies knowledge flows through an organization Copyright © 2015 McGraw-Hill Ryerson Limited 3-19 Business Intelligence Learning Outcome 3.3 Application and technologies that are used to gather, provide access to, and analyze information to support decisionmaking • Big Data – Vast quantities of data collected from multiple sources such as suppliers, customers, competitors etc. – Analyzed for patterns, trends and relationships for strategic decision-making – Term broadly encompasses analytics to data structures • Business Analytics – Use of predictive, applied and statistical analysis to explore an organization’s data Copyright © 2015 McGraw-Hill Ryerson Limited 3-20 Big Data: A Visual Description Learning Outcome 3.3 FIGURE 3.6 Copyright © 2015 McGraw-Hill Ryerson Limited 3-21 Big Data: A Business Example Learning Outcome 3.3 How BI Can Answer Tough Customer Questions FIGURE 3.7 Copyright © 2015 McGraw-Hill Ryerson Limited 3-22 Three Integrated Forms of BI Learning Outcome 3.3 • From Operational BI through Tactical BI to Strategic BI – Analysis becomes increasingly complex and less repetitive – Risks and rewards from the analysis increase Three Forms of BI Must Work Toward a Common Goal FIGURE 3.8 Copyright © 2015 McGraw-Hill Ryerson Limited 3-23 BI’s Operational Value Learning Outcome 3.3 The Latency Between a Business Event and an Action Taken FIGURE 3.9 Copyright © 2015 McGraw-Hill Ryerson Limited 3-24 Categories of BI Benefits Learning Outcome 3.3 • Direct Quantifiable Benefits – Measureable and observable benefits – For example: lower cost or faster cycle time • Indirect Quantifiable Benefits – Measureable but observed through other events – For example: Increase in customer orders because sales representatives are happier because commissions are paid more accurately and faster • Unpredictable Benefits – Unexpected. For example: New “green” process has higher profit margin • Intangible Benefits – Not directly observable such as improved reputation or morale Copyright © 2015 McGraw-Hill Ryerson Limited 3-25 Visual Business Intelligence Learning Outcome 3.3 • Infographics – Charts and pictures representing data sets – Easily understood comparisons • Data Visualization and Visualization Tools Emerson’s Food Waste Infographic – Sophisticated mathematical models – Ranging from time series graphs to webs of networks and clusters formed from thousands of points – Identifying trends, emerging markets etc. • Intelligence Dashboard – Key decision data electronically displayed in FIGURE 3.10 multiple charts, graphs and other visualization tools – Dynamically updated in real time Copyright © 2015 McGraw-Hill Ryerson Limited 3-26 OPENING CASE QUESTIONS Money Ball: About More Than Just the Players 1. What data do you think would be important to a business manager of a team in your favourite professional sport? 2. How would your answer to the first question differ for the general manager of the same team? 3. What types of data do you think would be good metrics for prospective player identification in your favourite professional sports league? 4. What do you see as the primary role of business intelligence in your favourite professional sports league in the next few years? Copyright © 2015 McGraw-Hill Ryerson Limited 3-27 DELIVERING INFORMATION, KNOWLEDGE, AND INTELLIGENCE ACROSS THE ORGANIZATION McGraw-Hill-Ryerson ©2015 The McGraw-Hill Companies, All Rights Reserved Collaboration Systems Learning Outcome 3.4 • Unstructured Collaboration (informational collaboration) Ways Business is Using Collaboration – Document exchange, shared whiteboards, discussion forums and emails • Structured collaboration (process collaboration) – Participating in business processes such as workflow, where the way knowledge is used is hard-coded as rules. Copyright © 2015 McGraw-Hill Ryerson Limited FIGURE 3.11 3-29 Ways Businesses Collaborate Learning Outcome 3.4 Collaboration Within and External to an Organization FIGURE 3.12 Copyright © 2015 McGraw-Hill Ryerson Limited 3-30 Business Uses of Collaboration Learning Outcome 3.4 • When expertise is required that is beyond the scope of an individual or an organization • Types of collaboration includes: – Teams, partnerships, strategic alliances formed internally or externally • Core competency – An organizational strength – Core competency strategy is when an organization focusses on what they do best – Teaming up with other businesses adds complementary resources • Information Partnership – Two or more companies integrate their information systems Copyright © 2015 McGraw-Hill Ryerson Limited 3-31 Social Business Learning Outcome 3.4 • Defined by IBM as that which puts people and the value of human connections front & center. • Operates for the benefit of addressing social needs and enables society to function more effectively. KM and Collaboration Tools • Bring people and technology together. • Use of AI and Social Media to help in knowledge sharing • Some of the tools Accenture suggests to improve content creation and sharing are: – – – – Wikis Discussion forums, personal spaces, activity feeds Visual navigation, rules-based inference engines (AI) Data mining tools to manage content designed through crowdsourcing for efficiency and accuracy. Copyright © 2015 McGraw-Hill Ryerson Limited 3-32 Content Management Systems Learning Outcome 3.5 • Provide tools to manage, create, store, edit, search and publish information in a collaborative environment. • Content management reduces duplication, increases accessibility, improves security and reduces fraud. • Provided by large outside vendors but also smaller suppliers specializing in legal, medical or other specific application. Copyright © 2015 McGraw-Hill Ryerson Limited 3-33 Types of Content Management Systems Learning Outcome 3.5 Common Types of Content Management Systems FIGURE 3.13 Copyright © 2015 McGraw-Hill Ryerson Limited 3-34 Workflow Management Learning Outcome 3.5 Facilitates the automation and management of business processes and controls the movement of work through the business process. • Workflow – Defines all the steps or business rules, from beginning to end, required for a business process. – Workflow software automates many business tasks and accurately routes information electronically Copyright © 2015 McGraw-Hill Ryerson Limited 3-35 Types of Workflow Systems Learning Outcome 3.5 • Message-based workflow system – Uses the email system to send out work assignments. – Tracks the flow of work completed and to be done. – Automatically routes the work in process to the next individual. • Database-based workflow system – Project documentation is held in a central location – Team members log in to access document to work on • Advantages of workflow systems – Unified format, process support, allows for communication and collaboration in a unified environment Copyright © 2015 McGraw-Hill Ryerson Limited 3-36 Groupware Learning Outcome 3.5 Software that supports team interaction and dynamics including calendaring, scheduling and video conferencing • Synchronous Groupware allows collaboration when team members work together at the same time • Asynchronous Groupware allows collaboration when group members are working at different times • Groupware integrates various systems and functionalities into a common set of services or a single application • Can represent a wide range of systems and different ways to integrate them. Copyright © 2015 McGraw-Hill Ryerson Limited 3-37 Communication Types and Technologies Learning Outcome 3.5 Supporting Technologies for the Different Quadrants of Collaborative Communication FIGURE 3.14 Copyright © 2015 McGraw-Hill Ryerson Limited 3-38 Advantages of Groupware Systems Learning Outcome 3.5 Facilitates communication (faster, easier, clearer) Enables Telecommuting Reduces Travel Costs Allows for Sharing Expertise Facilitates forming groups with common interests without problems of geographic distances. Saves time and cost of coordination. Facilitates group problem-solving ADAPTED FROM FIGURE 3.15 Copyright © 2015 McGraw-Hill Ryerson Limited 3-39 Videoconferencing Learning Outcome 3.5 Also called telepresence, uses telecommunications to bring people at remote sites together for a meeting. – Point-to-point links two sites. – Multi-point links more than two sites. Supporting Factors • Over 60% of communication is non-verbal. • Individuals lose an estimated 2.1 hours a day to interruptions and inefficient communication • Latest technology is reliable, easy to use and relatively inexpensive. • Fosters collaboration at meetings. • No longer a competitive edge, businesses fall behind if they can’t communicate in real time over distances with stakeholders. Copyright © 2015 McGraw-Hill Ryerson Limited 3-40 Web conferencing Learning Outcome 3.5 Blends audio, video, and document-sharing technologies to create virtual meetings. – Interaction is in real-time using phone, email, text, or VoIP – Users need an account and to download a small app – Not restricted to special hardware or software Videoconferencing FIGURE 3.16 Copyright © 2015 McGraw-Hill Ryerson Limited Web conferencing FIGURE 3.17 3-41 Enterprise Portals Learning Outcome 3.5 Single-point Web browser interface used within an organization to gather, share and disseminate information • Information gateway, a directory of information with links to the on-line resource • Confidential resources are assessed using a login and password A Typical Enterprise Portal for a University FIGURE 3.18 Copyright © 2015 McGraw-Hill Ryerson Limited 3-42 Uses of Enterprise Portals Learning Outcome 3.5 • Primary purpose is to help employees navigate organizational information • Secondary purpose is to provide unique content such as: – Workflow and project management software, expense reporting & travel reservation applications, & other specialized functions – Features that support information and knowledge sharing: • A publishing facility on to which users post and index information • A automatic indexing facility that immediately indexes information • A subscription facility that notifies and distributes relevant information • Intelligence agents that understand user preferences to help him/her find relevant information and present it in a useful way Copyright © 2015 McGraw-Hill Ryerson Limited 3-43 Uses of Enterprise Portals Learning Outcome 3.5 An Enterprise Portal as an Information Space for Knowledge Management and Collaboration FIGURE 3.19 Copyright © 2015 McGraw-Hill Ryerson Limited 3-44 Instant Messaging Learning Outcome 3.5 Synchronous real-time communications between two individuals Uses • Sharing web links and sound files • Viewing images stored on someone else’s device • Streaming content • Talking • Texting Copyright © 2015 McGraw-Hill Ryerson Limited 3-45 The Role of Mobile Devices Learning Outcome 3.5 M-learning uses portable, wireless computing devices to enable mobile learning. Trends • SMS used for information dissemination, retrieval and storage • Mobile and smart phones for creating & transferring knowledge at the individual and group level • Use of SMS/MMS camera, video, email, chat and web conferencing for m-learning Copyright © 2015 McGraw-Hill Ryerson Limited 3-46 OPENING CASE QUESTIONS Moneyball: About More Than Just the Players 5. How could a team incorporate social media collaboration in its player scouting? 6. What technologies mentioned could scouts use to better collaborate with each other while preparing for a player draft? 7. If you were in Billy Beane’s position today, how do you think you might convince your team’s upper management that sport analytics will assist your team both in marketing the team and fielding a better team? Copyright © 2015 McGraw-Hill Ryerson Limited 3-47 CLOSING CASE ONE DreamWorks’ Animation Collaboration 1. How can companies use Halo to increase their business efficiency? 2. Explain how a company like PepsiCo can use Halo to gain a competitive advantage in its industry. 3. How can knowledge management be increased by using a product such as Halo? 4. Why would a company like DreamWorks, which is not IT-focused, be interested in collaboration systems? 5. What are a few of the security issues surrounding this type of information system? Copyright © 2015 McGraw-Hill Ryerson Limited 3-48 CLOSING CASE TWO Enterprise Content Management at Statoil 1. Why do you think content management is such a critical part of Statoil’s strategy? 2. Comment on the utility and importance of Statoil’s use of an information portal to promote enterprise-wide content management. 3. To what extent do you think Statoil’s predicament of information overload is typical for organizations in Canada? 4. What lessons learned and insights from the chapter’s discussion on the factors affecting the adoption and use of enterprise portals could help promote Statoil’s adoption and use of its content management initiative? Copyright © 2015 McGraw-Hill Ryerson Limited 3-49 CLOSING CASE THREE Leveraging Knowledge at Bell Canada 1. Do you think employing social networking software will be commonplace in corporate environments in the future? What are the drivers of the use of such software? What are the inhibitors of its use? 2. Why is email not conducive to collaborative work? How are Web 2.0 technologies better suited to support collaborative work? 3. What is the advantage of having Web 2.0 software functionality built upon a strong underlying ECM platform? 4. What factors contribute to the current low level of adoption of enterprise content management software by corportations? Copyright © 2015 McGraw-Hill Ryerson Limited 3-50