Chapter 1 (Fundamentals of Business Analytics)

Chapter 1
Business View of IT
“Fundamentals of Business Analytics”
Applications RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Learning Objectives and Learning Outcomes
Learning Objectives Learning Outcomes
Business View of IT Applications (a) To be able to identify the
1. Business functions in a company – (A core business processes
Management Perspective)
(b) To appreciate the need for
2. Key purpose for using IT – (Transaction industry-specific
Automation, Office Productivity, Business applications
Innovation and Decision support)
3.IT Application in the Internet era – The

Connected World
4.Need for industry-specific applications
5.Information Users and their Needs

RN Prasad and Seema Acharya
Session Plan
Lecture time : 45 to 60 minutes
Q/A : 15 minutes

Agenda
• A typical enterprise
• Core Business Functions
• Malcolm Baldrige Criteria for Performance Excellence Framework
• Types of IT applications
• Characteristics of Internet-ready IT applications
• Technology centric applications – from 1965 to 2000 and future
• Typical enterprise application architecture
• Few information users and their requirements

A Typical Enterprise

Core Business Functions
Given below is the list of a few common core business functions:
• Sales and Marketing

• Product/Service Delivery
• Quality
• Product Development
• Accounting
• Technology
• Human Resource Management
• Supplier Management
• Legal and Compliance
• Corporate Planning
• Procurement (Purchases)

Business functions design core business processes that are practiced within the
function or cut across several business and support functions.
Few of the common core business processes are as follows:

Resource Management:
Acquire to Retire (Fixed Assets) This end-to-end scenario includes processes

such as Asset Requisition, Asset
Acquisition, Asset Utilization Enhancement,
Asset Depreciation, and Asset Retirement.
An end-to-end process adopted by the HR

Hire to Retire unit/function of enterprises. It includes
processes such as Recruitment, Hire,
Compensation management, Performance
management, Training, Promotion, Transfer,
and Retire.

Business Process Management:
Process Explanation
Idea to Offering This entails research  concept, concept 
commit, design  prototype, validate  ramp-up,
monitor  improve, improve  end of life cycle
Issue to Resolution The basic steps here are:
detection of an issue  identification of the
problem  development of solution 
return/replace  closed loop feedback

Can we represent all businesses in some common model?
The answer is YES!

Malcolm Baldrige Performance Excellence Framework
Organizational Profile:
Environment, Relationships and Challenges
2. Strategic Planning 5. Workforce Focus
1. Leadership 7. Results
3. Customer and Market Focus 6. Process Management
4. Measurement, Analysis, and Knowledge Management

Do It Exercise
Surf the net to read about the case study on

Texas Nameplate Company (TNC)
(Two time winner of the Malcolm Baldrige National Quality Award)

Answer a Quick Question
Why is “Measurement, Analysis, and Knowledge Management”

so important for any enterprise?

Types of IT Applications
• Department IT applications
– Payroll processing applications
• Online Transaction Processing Systems
– Train/Air reservation application
• Business Process/Model Innovation
– Amazon book store
– The ability to transfer money across the globe to any bank account from home
is a new innovation
• Decision Support Systems
– Example: A system that supports a user’s decision of buying a vehicle by
providing a range of options to choose from based on the users specified input
of budget, mileage, speed, etc.

Answer a Few Quick Questions
• Cite a few examples of Department IT applications
• Cite a few examples of OLTP applications
• Cite a few examples of Business Process/Model Innovation
• Cite a couple of examples of Decision Support Systems

Answer a Quick Question
According to your understanding, what are the chief characteristics of

Internet-ready IT applications

Characteristics of Internet-ready IT Applications
• Support large number of users of different interests and abilities

• Provides display on multiple devices and formats
• Deployed on large secure servers through license management software
• Support single sign-on and support special authentication & authorization
requirements
• Ability to run on any operating system
• Ability to use/connect to any RDBMS for data storage
• Could be implemented in multiple programming languages or
combinations as well
• Leverages enterprise storage capabilities and back-up systems
• Supports extensive connectivity to different types of networks and Internet
services
• And many more...

Technology Centric Applications – From 1965 to 2000 to Future

Typical Enterprise Application Architecture
Almost all IT applications will invariably have application-specific user interface,
business logic associated with the areas of business operation and a data store that holds
master and transaction data of the applications.
Few Information Users and their Requirements
• Role-based users who have access to certain category of IT application,

certain level of classified information, access to specific systems & even
specific operations they are allowed to perform.
• Administrative users who configure IT environment, manage users, access

control, anti-virus, perform anti-theft checks, install updates/upgrades and
back-up enterprise data and restore in the event of data corruption.
• Knowledge workers/analytical users who discover new patterns in

enterprise data to help businesses make innovative moves in the market
place for competitive advantage.
• Multi-device access users who sometimes work in office, move in the

field, use different devices ranging from desk top system to hand held
smartphone to connect to enterprise IT applications.
Summary please…
Ask a few participants of the learning program to summarize the lecture.


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Chapter 1

3.IT Application in the Internet era – The

4.Need for industry-specific applications

5.Information Users and their Needs

“Fundamentals of Business Analytics”

Lecture time : 45 to 60 minutes

“Fundamentals of Business Analytics”

“Fundamentals of Business Analytics”

“Fundamentals of Business Analytics”

Given below is the list of a few common core business functions:

• Sales and Marketing

“Fundamentals of Business Analytics”

Few of the common core business processes are as follows:

Acquire to Retire (Fixed Assets) This end-to-end scenario includes processes

An end-to-end process adopted by the HR

“Fundamentals of Business Analytics”

Business Process Management:

“Fundamentals of Business Analytics”

The answer is YES!

“Fundamentals of Business Analytics”

2. Strategic Planning 5. Workforce Focus

3. Customer and Market Focus 6. Process Management

4. Measurement, Analysis, and Knowledge Management

“Fundamentals of Business Analytics”

Surf the net to read about the case study on

“Fundamentals of Business Analytics”

Why is “Measurement, Analysis, and Knowledge Management”

“Fundamentals of Business Analytics”

“Fundamentals of Business Analytics”

• Cite a few examples of Department IT applications

• Cite a few examples of OLTP applications

• Cite a few examples of Business Process/Model Innovation

• Cite a couple of examples of Decision Support Systems

“Fundamentals of Business Analytics”

According to your understanding, what are the chief characteristics of

“Fundamentals of Business Analytics”

• Support large number of users of different interests and abilities

“Fundamentals of Business Analytics”

“Fundamentals of Business Analytics”

• Role-based users who have access to certain category of IT application,

• Administrative users who configure IT environment, manage users, access

• Knowledge workers/analytical users who discover new patterns in

• Multi-device access users who sometimes work in office, move in the

Ask a few participants of the learning program to summarize the lecture.

“Fundamentals of Business Analytics”

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