Chapter Eleven
Chapter Eleven
Business Intelligence:
The Next Generation of
Knowledge
Management
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Introduction
Introduction
Knowledge neither product nor capability; a critical
framework of a fully evolved information economy
–
WalMart has a 100-terabyte data warehouse to monitor and
capture each transaction in each store for better inventory
mgmt; improved collaboration with supplier; merchandise on
individual store basis; and to provide superior shopper
satisfaction
–
Success from anticipating customer needs before they do
First gen e-business apps focus on buying and selling
goods via Web
Second gen apps focus on gaining insights from
organizations’ data collected from each transaction
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Customer loyalty, enhance profitability
–
Interpret past transactions and use the knowledge to support
decisions about the direction the company should be headed
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Evolution of Knowledge Mgmt Apps
Evolution of Knowledge Mgmt Apps
Companies want apps to
make sense of the data
gathered
–
How to make effective
use of raw data
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How to convert raw data
into revenue
Foundation of KM:
information sorting,
extraction, packaging, and
dissemination
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Reactive, data centric to
proactive, query-driven
knowledge world
Group Memory Systems
Corporate Intranets & Decision
Support Portals
Extranets & Inter-Enterprise Portals
E-commerce & Click Stream Analysis
Wave 1
Wave 2
Wave 3
Wave 4
Business Intelligence
Wave 5
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Wave 1: Group Memory Systems
Wave 1: Group Memory Systems
Sharing of info throughout the company
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Buzzword of 90s
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Discussion boards, bulletin systems, corporate
intranets
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Instant access to data and reporting info that had
previously taken days or weeks to obtain
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Core: Lotus Notes and Instraspect apps
Failed to live up to promise
–
Few can define it
–
Software vendors distancing themselves from GM
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Costly efforts not delivering expected ROI
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Wave 2: Corporate Intranets and
Wave 2: Corporate Intranets and
Decision Support Portals
Decision Support Portals
For complete and uniform linkage of data resources
scattered throughout the organization
Intranets alone don’t create knowledge
–
Data analysis necessary
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Decision support portals to automate predictable
components of decision maker’s routine
Pre-requisite for responsive business model: Decision
support portals built on intranets
–
Home Depot
–
Decision makers can ask and answer mission-critical
questions about business using transaction data assets that
have been captured, not exploited to fullest extent
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Wave 3: Extranets and Interenterprise
Wave 3: Extranets and Interenterprise
Portals
Portals
Fast info access, customized data and
responsiveness driving extranets
–
New requirements: manage huge data volumes,
data breadth coverage, cross-platform support,
response-time speed, and broad range of interface
choice
–
DaimlerChrysler
Extranet apps encourage trading partners to
improve profits by managing inventories in
supply chain
–
preferential treatment for visibility
–
Lexmark
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Wave 4: e-Commerce and Click Stream
Wave 4: e-Commerce and Click Stream
Analysis
Analysis
User click stream analysis
–
Marketers need every customer activity and
purchase; to be able to analyze, understand their
buying preferences; to anticipate their changing
expectations
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Testing limits of conventional database mgmt; new
DBs emerging
Intelligent E-mail management
–
Kana Communications, eGain, and Siebel
–
Tracks and manages millions of daily interactions
for analyzing, reporting and launching customized
initiatives in response
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Wave 4: e-Commerce and Click Stream
Wave 4: e-Commerce and Click Stream
Analysis
Analysis
Knowledge Portals
–
Brio, Business Objects, Cognos, DataChannel,
Plumtree, Portera
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Call center mgrs to understand historical service
trends and customer service patterns, identify
problem areas; ultimately increase customer
retention rates
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Wave 5: Business Intelligence
Wave 5: Business Intelligence
Data analytics, coupled with broadcast engine
technology, foundation for proactive business
intelligence
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Anytime, anywhere, any place
BI is proactive and data driven
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Automates delivery of info to customers using exception
conditions and recurring schedules as triggers for
communication
Traditional decision support apps do not personalize info
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MicroStrategy’s DSS Broadcaster include new
personalization and distribution capabilities
New BI apps turning traditonal query-and-response
paradigm of decision support on its head