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Chapter Eleven
Chapter Eleven
Business Intelligence:
The Next Generation of
Knowledge
Management


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© e-Business Strategies,
Inc.
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

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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© e-Business Strategies,
Inc.
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

How to convert raw data
into revenue
Foundation of KM:
information sorting,
extraction, packaging, and
dissemination

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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© e-Business Strategies,
Inc.
Wave 1: Group Memory Systems
Wave 1: Group Memory Systems
Sharing of info throughout the company

Buzzword of 90s

Discussion boards, bulletin systems, corporate
intranets

Instant access to data and reporting info that had
previously taken days or weeks to obtain

Core: Lotus Notes and Instraspect apps
Failed to live up to promise


Few can define it

Software vendors distancing themselves from GM

Costly efforts not delivering expected ROI

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com
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© e-Business Strategies,
Inc.
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

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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com
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© e-Business Strategies,
Inc.
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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© e-Business Strategies,
Inc.
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

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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com
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© e-Business Strategies,
Inc.
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

Call center mgrs to understand historical service
trends and customer service patterns, identify
problem areas; ultimately increase customer
retention rates

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com
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© e-Business Strategies,
Inc.
Wave 5: Business Intelligence
Wave 5: Business Intelligence
Data analytics, coupled with broadcast engine
technology, foundation for proactive business
intelligence

Anytime, anywhere, any place
BI is proactive and data driven

Automates delivery of info to customers using exception
conditions and recurring schedules as triggers for
communication

Traditional decision support apps do not personalize info

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

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