BI & Improving Its Efficiency

Business Intelligence and
improving its efficiency

Presented by:
Pratik Gadade (PG 918)
Jaipal Pawar (MMS 942)
Agenda
1 Introduction
●
2 Facts about BI
●
3 Why BI could fail

●
4 Crucial success factors for BI

●
5 BI in manufacturing industry
●
6 BI still a challenge for many companies

●
7 Answer to these challenges through SaaS BI

●
8 Improving BI’s implementation efficiency

●
9 Conclusion
●
What is Business Intelligence?
• In a generic sense Business
Intelligence can be defined as
“Leveraging the organization’s
internal and external
information assets for making
better business decisions”
• IT Vendors Make “Business
Intelligence components” of
their toolsets
• Some Vendors have entire tools
that are called a “Business
Intelligence Suite”
Let’s Dispel Some Myths
• You don’t need to use a major vendor toolset and
can still engage in BI activities
• Shiny Graphs and Charts are nice but B.I. is
much deeper than that
B.I.’s aims at..
• The goals for Business intelligence projects are to provide
information used to
▫ Support internal enterprise users in the assessment, enhancement
and optimization of organizational performance & operation.
▫ Deliver critical business information to end-users about value chain
constituencies such as customers and supply-chain partners
• End-users can utilize the BI tools to "drill-down" and "slice and

dice" to gain a better understanding of transactional and
operational information.
• Thus BI aims at gathering and processing the available data,

building content rich and absolutely relevant information,
and incorporating it back into daily business operations so
that higher managers can make timely & business effective
decisions to plan for the better future
How it does?
B.I. helps in IT-enabled business decision
making based on simple to complex data
analysis processes through
• Database development and administration
• Data mining
• Data queries and report writing
• Data analytics and simulations
• Benchmarking of business performance
• Dashboards
• Decision support systems
Why B.I.?
Make more informed business decisions:
• Competitive and location analysis
• Customer behavior analysis
• Targeted marketing and sales strategies
• Business scenarios and forecasting
• Business service management
• Business planning and operation optimization
• Financial management and compliance
Facts about B.I.
 Through 2012, more than 35 % of the top 5,000 global companies will
regularly fail to make insightful decisions about significant changes in their
business and markets
 By 2012, business units will control at least 40% of the total budget for BI
 By 2010, 20% of organizations will have an industry-specific analytic

application delivered via software as a service (SaaS) as a standard component
of their BI portfolio
 In 2009, collaborative decision making will emerge as a new product category

that combines social software with BI Platform capabilities
 By 2012, one-third of analytic applications applied to business processes will

be delivered through coarse-grained application mashups
Source: Gartner Research, Jan 2009,

http://www.gartner.com/it/page.jsp?id=856714
Technologies Supporting B.I.
• Database systems and database integration
• Data warehousing, data stores and data marts
• Enterprise resource planning (ERP) systems
• Query and report writing technologies
• Data mining and analytics tools
• Decision support systems
• Customer relation management software
• Product lifecycle and supply chain management
systems
BI Can Fail Because it is Often…
• Mostly Reliant on non Real-time data
• Reactive rather than proactive

▫ Summarizing past rather than looking forward
• Esoteric
▫ Employees with necessary business and technical skills
are rare
▫ Employees refuse to understand implementation of BI
and resist to make use of it in decision making
Improving Efficiency
For success of BI following factors are critical,
• Understand Your Data
▫ Strong Foundation
▫ Must be accurate
▫ What Systems, What Data
▫ Who Owns the data
• What Problem Are We Trying To Solve /

Strategy
▫ What is the desired outcome
▫ What is the problem we’re trying to solve
User Community
• Who are we serving
• Understand the disparate groups
• What information to they need
• What decisions will they
make with this information
Is their real need to implement BI ?

 Understanding of clear business benefit by doing the
implementation
 Needs and benefits of the implementation are sometimes driven
by competition and the need to gain an advantage in the market
7 crucial success factors for the
implementation of a BI
• Business-driven methodology and project
management
• Clear vision and planning
• Committed management support & sponsorship
• Data management and quality
• Mapping solutions to user requirements
• Performance considerations of the BI system
• Robust and expandable framework
BI in Manufacturing Industry
• With increasing competition and lesser product life cycles in today’s market
many firms have adopted Business Intelligence (BI) Reporting & Analytics
software as part of their strategic approach for attaining their goals
• They are streamlining the information flow both across the organization
and through the tiers of the supply chain to reduce cycle and
manufacturing times and adapt quickly to market changes
• Manufacturing MIS (needs in manufacturing business)
• Material requirements planning (MRP)
Determine when finished products are needed
Determine deadlines accordingly
• Manufacturing resource planning (MRPII)
Network scheduling
Improve customer service and productivity
• Just in time (JIT) inventory system
Inventory and materials delivered right before usage
BI in Manufacturing Industry
• BI helps companies in the manufacturing industry:
▫ Increase the value of customer relationships
▫ Respond quickly to changing markets and company sensitivities
▫ Accelerate new product time-to-market
▫ Reduce inventory investment
▫ Improve planning, scheduling, and the procurement schedule
▫ Maintain and develop quality assurance
▫ Select and apply world-class technologies
• BI can be used to increase the flexibility and speed of operational reporting,

▫ Quickly generate established reports
▫ Easily create ad-hoc reports
▫ Isolate specific problems
▫ Analyze data across multiple systems
▫ Integrate new data sources
BI Is Still A Challenge For Many
Companies
• Business users still find BI challenging

▫ Complex tools, difficult interfaces
▫ Lack of relevant, timely, or reliable data
▫ Limited BI coverage and support for the
data and applications they need to
access
• Uphill battle for IT
▫ Growing number of data sources,
▫ inside and outside the enterprise
▫ Security concerns
▫ High cost/ long deployment of BI on
premise projects
Answer to these Challenges through
SaaS BI
• The benefits of SaaS can address these challenges & thus help
business user by following ways:
▫ Cost effective – “Pay as you go”
▫ Quick deployment – Fast time to value
▫ Limited IT resource needs for implementation and management
• Now a days the Business users are driving most SaaS purchasing
decisions
▫ Initiated by line of business managers
▫ Approved as joint decision between line of business and IT
Improving BI project’s implementation
efficiency
• The timely completion and successful implementation of BI projects
provides a competitive advantage to the adopting organizations.
• Unfortunately, in this aspect there are more failures and disappointments

than successes
• AGILE iterative and incremental development approach combined with

light weight project management principles, such as SCRUM, greatly
improve this track record
• Main objective is to increase the ROI of the BI initiatives by:

▫ Reducing the initial investment required to launch a BI project by quickly
delivering tangible components to the business users
▫ Accelerating the availability of the information by using an incremental approach
▫ Delivering the right solutions to the business users by working iteratively with
them to fully understand the requirements.
▫ Prioritizing the work so the requirements with the highest value and ROI are
addressed first
Improving BI project’s implementation
efficiency
• market data confirms that out of the 3 standard project dimensions– time,
resources, and scope– timelines and resources typically exceed the initial
plan while scope consistently fall short of the original expectations and
requirements
• The proposed approach to BI development can be summarized by the

following principles:
▫ Segment the development of components into small iterations of 1 to 4 weeks and
frequently deliver completed objects (key performance indicators, metrics,
reports, dashboards, cubes, etc.) at the end of these iterations
▫ Repeat the iterative process and use increments to add components to the BI
architecture and infrastructure
▫ Prioritize the development of components that will deliver the highest value to
the organization first
▫ Use a “slicing approach” to go from source systems to presentation layer
▫ Avoid analysis -paralysis by using a non-superfluous approach in documentation,
architecture, modeling, project management and other overhead activities
▫ Learn from each of the iteration and adapt the process accordingly to increase
efficiency
Conclusion
• So we have seen BI advantages & the current
shortcomings & challenges in this domain, & to
encounter these issues we need to look not only
towards the technological improvement but also
at how efficiently & with improved success rate
the BI projects can be implemented.
Thank You …

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Business Intelligence and

improving its efficiency

3 Why BI could fail

4 Crucial success factors for BI

6 BI still a challenge for many companies

7 Answer to these challenges through SaaS BI

8 Improving BI’s implementation efficiency

• End-users can utilize the BI tools to "drill-down" and "slice and

• Thus BI aims at gathering and processing the available data,

 By 2010, 20% of organizations will have an industry-specific analytic

 In 2009, collaborative decision making will emerge as a new product category

 By 2012, one-third of analytic applications applied to business processes will

Source: Gartner Research, Jan 2009,

• Reactive rather than proactive

• What Problem Are We Trying To Solve /

Is their real need to implement BI ?

• BI can be used to increase the flexibility and speed of operational reporting,

• Business users still find BI challenging

• Unfortunately, in this aspect there are more failures and disappointments

• AGILE iterative and incremental development approach combined with

• Main objective is to increase the ROI of the BI initiatives by:

• The proposed approach to BI development can be summarized by the

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