Business Intelligence: A Managerial Perspective on Analytics(3rd Edition) INTELLIGENCE A Managerial Perspective on Analytics Chapter 1 An overview of Business EFRAUTI RRAN Intelligence, Analytics, and Decision Support
Chapter 1: An Overview of Business Intelligence, Analytics, and Decision Support Business Intelligence: A Managerial Perspective on Analytics (3rd Edition)
Learning Objectives Understand today's turbulent business environment and describe how organizations survive and even excel in such an environment (solving problems and exploiting opportunities Understand the need for computerized support of managerial decision making Describe the business intelligence(Bl) methodology and concepts Understand the various types of analytics Copynight@ 2014 Pearson Education, Inc Slide 1-2
Copyright © 2014 Pearson Education, Inc. Slide 1- 2 Learning Objectives ▪ Understand today's turbulent business environment and describe how organizations survive and even excel in such an environment (solving problems and exploiting opportunities) ▪ Understand the need for computerized support of managerial decision making ▪ Describe the business intelligence (BI) methodology and concepts ▪ Understand the various types of analytics
Opening Vignette Magpie Sensing Employs Analytics to Manage a Vaccine Supply Chain Effectively and Safely Company background Problem Proposed solution and results Answer discuss the case questions Copynight@ 2014 Pearson Education, Inc Slide 1-3
Copyright © 2014 Pearson Education, Inc. Slide 1- 3 Opening Vignette… Magpie Sensing Employs Analytics to Manage a Vaccine Supply Chain Effectively and Safely ▪ Company background ▪ Problem ▪ Proposed solution and results ▪ Answer & discuss the case questions
Opening Vignette Questions for the Opening Vignette 1. What information is provided by the descriptive analytics employed at Magpie Sensing? 2. What type of support is provided by the predictive analytics employed at Magpie Sensing? 3. How does prescriptive analytics help in business decision making 4. In what ways can actionable information be reported in real time to concerned users of the system? 5. In what other situations might real-time monitoring applications be needed? Copynight@ 2014 Pearson Education, Inc Slide 1-4
Copyright © 2014 Pearson Education, Inc. Slide 1- 4 Opening Vignette… Questions for the Opening Vignette 1. What information is provided by the descriptive analytics employed at Magpie Sensing? 2. What type of support is provided by the predictive analytics employed at Magpie Sensing? 3. How does prescriptive analytics help in business decision making? 4. In what ways can actionable information be reported in real time to concerned users of the system? 5. In what other situations might real-time monitoring applications be needed?
Changing Business Environment Computerized Decision Support Companies are moving aggressively to computerized support of their operations =y Business Intelligence Business Pressures-Responses Support Model Business pressures result of today's competitive business climate Responses to counter the pressures Support to better facilitate the process Copynight@ 2014 Pearson Education, Inc Slide 1-5
Copyright © 2014 Pearson Education, Inc. Slide 1- 5 Changing Business Environment & Computerized Decision Support ▪ Companies are moving aggressively to computerized support of their operations Business Intelligence ▪ Business Pressures–Responses– Support Model ▪ Business pressures result of today's competitive business climate ▪ Responses to counter the pressures ▪ Support to better facilitate the process 5
Business Pressures-Responses- Support Model Business Organization's Decisions and Environmental Factors Responses Support Globalization Strategy Analyses Customer demand Pressures Partners'collaboration Predictions Government regulations Realtime response Decisions Market conditions agility Competition Opportunities Increased productivity Etc New vendors New business models Etc. Integrated computerized decision support Business intelligence Copynight@ 2014 Pearson Education, Inc Slide 1-6
Copyright © 2014 Pearson Education, Inc. Slide 1- 6 Business Pressures–Responses– Support Model
The Business environment The environment in which organizations operate today is becoming more and more complex, creating opportunities, and problems EXample: globalization Business environment factors markets, consumer demands, technology, and societal Copynight@ 2014 Pearson Education, Inc Slide 1-7
Copyright © 2014 Pearson Education, Inc. Slide 1- 7 The Business Environment ▪ The environment in which organizations operate today is becoming more and more complex, creating ▪ opportunities, and ▪ problems. ▪ Example: globalization. ▪ Business environment factors: ▪ markets, consumer demands, technology, and societal…
Business Environment Factors FACTOR DESCRIPTION Markets Strong competition Expanding global markets Blooming electronic markets on the Internet Innovative marketing methods Opportunities for outsourcing with IT support Need for real-time, on-demand transactions Consumer Desire for customization demand Desire for quality, diversity of products, and speed of delivery Customers getting powerful and less loyal Technology More innovations, new products, and new services Increasing obsolescence rate ncreasing information overload Social networking Web 2.0 and beyond Societal Growing government regulations and deregulation Workforce more diversified, older, and composed of more women Prime concerns of homeland security and terrorist attacks Necessity of Sarbanes-Oxley Act and other reporting -related legislation Increasing social responsibility of companies Greater emphasis on sustainability Copynight@ 2014 Pearson Education, Inc Slide 1-8
Copyright © 2014 Pearson Education, Inc. Slide 1- 8 Business Environment Factors FACTOR DESCRIPTION Markets Strong competition Expanding global markets Blooming electronic markets on the Internet Innovative marketing methods Opportunities for outsourcing with IT support Need for real-time, on-demand transactions Consumer Desire for customization demand Desire for quality, diversity of products, and speed of delivery Customers getting powerful and less loyal Technology More innovations, new products, and new services Increasing obsolescence rate Increasing information overload Social networking, Web 2.0 and beyond Societal Growing government regulations and deregulation Workforce more diversified, older, and composed of more women Prime concerns of homeland security and terrorist attacks Necessity of Sarbanes-Oxley Act and other reporting-related legislation Increasing social responsibility of companies Greater emphasis on sustainability
Organizational Responses Be Reactive, Anticipative, Adaptive and proactive Managers may take actions, such as Employ strategic planning Use new and innovative business models Restructure business processes Participate in business alliances Improve corporate information systems more [in the book Copynight@ 2014 Pearson Education, Inc Slide 1-9
Copyright © 2014 Pearson Education, Inc. Slide 1- 9 Organizational Responses ▪ Be Reactive, Anticipative, Adaptive, and Proactive ▪ Managers may take actions, such as ▪ Employ strategic planning. ▪ Use new and innovative business models. ▪ Restructure business processes. ▪ Participate in business alliances. ▪ Improve corporate information systems. ▪ … more [in the book]
Closing the Strategy Gap One of the major objectives of computerized decision support is to facilitate closing the gap between the current performance of an organization and its desired performance, as expressed in its mission, objectives, and goals, and the strategy to achieve them Copynight@ 2014 Pearson Education, Inc Slide 1-10
Copyright © 2014 Pearson Education, Inc. Slide 1- 10 Closing the Strategy Gap ▪ One of the major objectives of computerized decision support is to facilitate closing the gap between the current performance of an organization and its desired performance, as expressed in its mission, objectives, and goals, and the strategy to achieve them
