Business Intelligence:
A Managerial Approach
(2nd Edition)
Chapter 6:
BI Implementation:
Integration and Emerging
Trends
Learning Objectives
Describe the major business intelligence (BI)
implementation issues
List some critical success factors of BI
implementation
Describe the importance and issues in
integrating BI technologies and applications
Understand the needs for connecting BI
systems with other information systems
Define on-demand BI and its
advantages/limitations
List and describe representative privacy, major
legal and ethical issues of BI implementation
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Learning Objectives
Understand Web 2.0 and its characteristics as
related to BI and decision support
Understand social networking concepts, selected
applications, and their relationship to BI
Describe how virtual world technologies can
change the use of BI applications
Describe the integration of social software in BI
Know how Radio Frequency Identification (RFID)
data analysis can help improve supply chain
management (SCM) and other operations
Describe how massive data acquisition
techniques can enable reality mining
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Opening Vignette…
“BI Eastern Mountain Sports
Increases
Collaboration and Productivity”
Company background
Problem description
Proposed solution
Results
Answer & discuss the case questions
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Opening Vignette
Collaborative Decision Making at Eastern Mountain Sports
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Implementing BI – An Overview
Decisional Factors in BI Implementation
Reporting and analysis tools
Features, functionality, flexibility, scalability
Database
Scalability, performance, security
ETL Tools
Accessibility, efficiency, usability
Costs
Hardware/software, development/training
Benefits
Tangibles/intangibles - time saving, improved
decisions/operations/customer satisfaction/
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Implementing BI – An Overview
Critical Success Factors for BI
Implementation
a. Business driven methodology and project
management
b. Clear vision and planning
c. Committed management support and
sponsorship
d. Data management and quality issues
e. Mapping the solutions to the user
requirements
f. Performance considerations of the BI system
g. Robust and extensible framework
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Managerial Issues Related to BI
Implementation
1. System development and the need for
integration
2. Cost–benefit issues and justification
3. Legal issues and privacy
4. BI and BPM today and tomorrow
5. Cost justification; intangible benefits
6. Documenting and securing support
systems
7. Ethical issues
8. BI Project failures
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BI and Integration
Implementation
Types of Integration
Functional integration
different [physically separate]
applications are provided/used as if it is a
single system
Physical integration
packaging the hardware, software, and
communication features required to
accomplish functional integration
Primary focus in BI (and in this book)
is functional-application integration
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BI and Integration
Implementation
Why integrate?
To better implement a complete BI
system
To increase the capabilities of the BI
applications
To enable real-time decision support
To enable more powerful applications
To facilitate faster system development
To enhance support activities such as
blogs, wikis, RSS feeds, etc.
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BI and Integration
Implementation
Levels of BI Integration
Functional integration can be within the
same BI or across different BI systems
Integration across different BI systems can be
accomplished in a loosely coupled fashion –
input output passing, messaging (SOA)
Integration within a BI system is more
cohesive with several sub-systems
constituting the whole
Embedded Intelligent Systems
Serving as the intelligent agents within BI
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Connecting BI Systems to
Databases and Other Enterprise
Systems
Virtually every BI application requires
database or data warehouse access
Multi-tiered Application Architecture
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Connecting BI Systems to
Databases and Other Enterprise
Systems
Integrating BI applications and back-end
systems
Web scripting languages (e.g., PHP, JSP, ASP)
Application integration servers (e.g., WebLogic)
Enterprise application integration – integration
of large systems (BI to ERP, SCM, CRM, KM, etc.)
Integrating BI and ERP for DSS
ERP captures and stores data
BI converts data into
information/knowledge
Middleware?
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On-Demand BI
The limitations of Traditional BI
Complex, time-consuming, expensive
The On-Demand Alternative
On-demand computing = Utility
computing
SaaS (Software as a service)
Allows SMEs to utilize affordable BI
On-demand function alternatives
Internally sharing licenses within a firm
Sharing licenses with many firms via an ASP
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Benefits of On-Demand BI
Ability to handle fluctuating demand
Flexible use of the BI technology pool
Reduced investment/cost
Hardware (servers and peripherals)
Software (more features for less)
Maintenance (centralized timely updates)
Embodiment of recognized best practices
Better flexibility and connectivity with
other systems via SaaS infrastructure
Better RIO
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The Limitations of On-Demand BI
Integration of vendors’ software with
company’s software may be difficult
The vendor can go out of business,
leaving the company without a service
It is difficult or even impossible to modify
hosted software for better fit with the
users’ needs
Upgrading may become a problem
You may relinquish strategic data to
strangers (lack of privacy/security of
corporate data)
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Issues of Legality, Privacy and
Ethics
Legal issues
Liability for the actions of advice provided
by BI
Who is liable, if the software advice fails?
Privacy
Right to be left alone and the right to be
free from unreasonable personal intrusions
Collecting information about individuals
The Web and information collection
Mobile user privacy
Homeland security and individual privacy
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Issues of Legality, Privacy and
Ethics
Ethics in Decision Making and Support
Electronic surveillance
Software piracy
Use of proprietary databases
Use of intellectual property such as knowledge
Computer accessibility for workers with
disabilities
Accuracy of data, information, and knowledge
Protection of the rights of users
Use of corporate computers for non-work-
related purposes (personal use of Internet
while working)
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Issues of Legality, Privacy and
Ethics
A Model of Ethical Problem Formulation
“Unfolding” to control expansion
S S S
Problem
Stakeholder formulation
expansion expansion
Typical problem Typical problem Integration of moral Problem
formulation formulation intensity definition
(T.O.P perspective) (T.O.P perspective) components
Conversation
S
S S
S = Stakeholder
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Emerging Topics in BI – An
Overview
Web 2.0 revolution as it relates to BI in
(Section 6.7)
Online social networks (Section 6.8)
Virtual worlds as related to BI (Section
6.9)
Integration social networking and BI
(Section 6.10)
RFID and BI (Section 6.11)
Reality Mining (Section 6.12)
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Emerging Topics in BI – An
Overview
The Future of BI
Web 2.0 revolution as it related to BI
(Section 6.7)
Online social networks (Section 6.8)
Virtual worlds as related to BI (Section
6.9)
Integration social networking and BI
(Section 6.10)
RFID and BI (Section 6.11)
Reality Mining (Section 6.12)
-21 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
Emerging Topics in BI – An
Overview
In 2009, collaborative decision making emerged as a new
product category that combines social software with
business intelligence platform capabilities.
In 2010, 20 percent of organizations will have an industry-
specific analytic application delivered via software as a
service as a standard component of their business
intelligence portfolio.
By 2012, business units will control at least 40 percent of the
total budget for BI.
By 2012, one-third of analytic applications applied to
business processes will be delivered through coarse-grained
application mashups.
Because of lack of information, processes, and tools, through
2012, more than 35 percent of the top 5,000 global
companies will regularly fail to make insightful decisions
about significant changes in their business and markets.
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The Web 2.0 Revolution
Web 2.0: a popular term for describing
advanced Web technologies and
applications, including blogs, wikis, RSS,
mashups, user-generated content, and
social networks
Objective: enhance creativity, information
sharing, and collaboration
Difference between Web 2.0 and Web 1.x
Use of Web for collaboration among
Internet users and other users, content
providers, and enterprises
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The Web 2.0 Revolution
Web 2.0: an umbrella term for new
technologies for both content as well as
how the Web works
Web 2.0 has led to the evolution of Web-
based virtual communities and their
hosting services, such as social
networking sites, video-sharing sites
Companies that understand these new
applications and technologies—and apply
the capabilities early on—stand to
greatly improve internal business
processes and marketing
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The Web 2.0 Revolution
Characteristics of the Web 2.0
The ability to tap into the collective intelligence of
users. The more users contribute, the better.
Data is made available in new or never-intended
ways. Web 2.0 data can be remixed or “mashed
up”.
Web 2.0 relies on user-generated and user-
controlled content and data (enhanced
collaboration).
Lightweight programming techniques and tools let
nearly anyone act as a Web site developer.
The virtual elimination of software-upgrade cycles
makes everything a perpetual beta or work-in-
progress and allows rapid prototyping, using the
Web as an application development platform.
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The Web 2.0 Revolution
Characteristics of the Web 2.0
Users can access and manage applications
entirely through a browser.
An architecture of participation and digital
democracy encourages users to add value to the
application as they use it.
There is a major emphasis on social networks
and computing.
Information sharing and collaboration is greatly
supported.
This allows for rapid and continuous creation of
new business models.
“dynamic content, rich user experience, metadata,
scalability, open source, and freedom (net
neutrality)”
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The Web 2.0 Revolution
Ajax (Asynchronous JavaScript and XML)
An enabling technology for Web 2.0, resulting
in rich, interactive, fast-response, user-
friendly GUIs
Makes Web pages feel more responsive by
exchanging small amounts of data with the
server behind the scenes (eliminated the
need for reloading the complete Web page)
Leads to improved Web page interactivity,
loading speed, and usability
Many companies and new business
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models have emerged based
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on Web 2.0
Online Social Networking –
Basics and Examples
A social network is a place where people
create their own space, or homepage, on
which they write blogs; post pictures,
videos, or music; share ideas; and link to
other Web locations they find interesting.
The mass adoption of social networking Web
sites points to an evolution in human social
interaction
The size of social network sites are growing
rapidly, with some having over 100 million
members – growth for successful ones 40 to 50
% in the first few years and 15 to 25 % thereafter
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Online Social Networking –
Social Network Analysis
Software
It is used to identify, represent, analyze,
visualize, or simulate networks with
Nodes – agents, organizations, or knowledge
Edges – relationships identified from various
types of input data (relational and non-
relational)
Various input and output file formats exist
SNA software tools include
Business-oriented social network tools such as
InFlow and NetMiner
Social Networks Visualizer, or SocNetV, which is
a Linux-based open source package
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Mobile Social Networking
Social networking where members converse
and connect with one another using cell
phones or other mobile devices
MySpace and Facebook offer mobile services
Mobile only services: Brightkite, and Fon11
Basic types of mobile social networks
1. Partnership with mobile carriers (use of MySpace
over AT&T network)
2. Without a partnership (“off deck”) (e.g., MocoSpace
and Mobikade)
Mobile Enterprise Networks
Mobile Community Activities (e.g., Sonopia)
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Major Social Network Services
Facebook: The Network Effect
Launched in 2004 by Mark Zuckerberg
(former Harvard student)
It is the largest social network service in the
world with over 500 million active users
worldwide
Initially intended for college and high school
students to connected to other students at
the same school
In 2006 opened its doors to anyone over 13;
enabling Facebook to compete directly with
MySpace.
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Major Social Network Services
Orkut: Exploring the Very Nature of Social
Networking Sites
The brainchild of a Turkish Google programmer
It was to be Google's homegrown answer to
MySpace and Facebook
Format is similar to others: a homepage where
users can display every facet of their personal
life they desire using various multimedia
applications
A major highlight of Orkut – ability to create
and control communities
Also supports many languages
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Implications of Business and
Enterprise Social Networks
Business oriented social networks can go
beyond “advertising and sales”
Emerging enterprise social networking
apps:
Finding and Recruiting Workers
See Application Case 14.2 for a representative example
Management Activities and Support
Training
Knowledge Management and Expert Location
e.g., innocentive.com; awareness.com; Caterpillar
Enhancing Collaboration
Using Blogs and Wikis Within the Enterprise …>
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Implications of Business and
Enterprise Social Networks
Survey shows that best-in-class
companies use blogs and wikis for the
following applications:
Project collaboration and communication
(63%)
Process and procedure document (63%)
FAQs (61%)
E-learning and training (46%)
Forums for new ideas (41%)
Corporate-specific dynamic glossary and
terminology (38%)
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Collaboration with customers (24%)
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Virtual Worlds
Virtual worlds have existed for a long
time in various forms — stereoscopes,
Cinerama, simulators, computer games,
…
They are artificial worlds created by
computer systems in which the user has
the impression of being immersed
Examples:
Second Life (secondlife.com) Avatars ?
Google Lively (lively.com)
EverQuest (everquest.com)
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Second Life as a DSS
Advantages:
Easy access and low cost
Experienced and dedicated designer/builders
Tools and venues for communications-driven
decision support (DecisionSupportWorld.com)
A large, dedicated user base
Impression management / creativity enhancement
Time compression
Easy data integration from real life using RSS
feeds
Encourages active participation and experiential
learning
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Second Life as a DSS
Disadvantages:
Learning time and training costs
Distractions are numerous
Pranksters and spam are common
Technology problems persist
Chat is a very slow communication tool
Resistance to use
Addiction
Participation in most of these virtual
environments requires downloading of a
"plug-in"
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Virtual Tradeshows
See iTradeFair.com
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Social Networks and BI:
Collaborative Decision Making
Collaborative decision making (CDM) –
combines social software and BI
CDM is a category of decision-support system
for non-routine, complex decisions that
require iterative human interactions.
Ad hoc tagging regarding value, relevance,
credibility, and decision context can
substantially enrich both the decision process
and the content that contributes to the
decisions.
Tying BI to decisions and outcomes that can
be measured will enable organizations to
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better demonstrate the business value of BI.
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
How CDM Works
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RFID and BI
Wal-Mart's RFID mandate in June 2003
DoD, Target, Albertson's, Best Buy,…
RFID is a generic technology that refers
to the use of radio frequency waves to
identify objects.
RFID is a new member of the automatic
identification technologies family, which
also includes the ubiquitous barcodes
and magnetic strips.
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How does RFID work?
RFID system
a tag (an electronic chip attached to
the product to be identified)
an interrogator (i.e., reader) with one
or more antennae attached
a computer (to manage the reader
and store the data captured by the
reader)
Tags
Active tag versus Passive tags
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Data Representation for RFID
RFID tags contain 96 bits of data in the
form of serialized global trade
identification numbers (SGTIN) [see
epcglobalinc.org]
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RFID for Supply Chain BI
RFID in Retail Systems
Functions in a distribution center
receiving, put-away, picking, and shipping
Sequence of operations at a receiving
dock
1.unloading the contents of the trailer
2.verification of the receipt of goods against
expected delivery (purchase order)
3.documentation of the discrepancy
4.application of labels to the pallets, cases,
items
5.sorting of goods for put-away or cross-dock
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RFID for Supply Chain BI
RFID in Retail Systems
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RFID Data Sample
RFID in Retail Systems
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RFID for BI in Supply Chain
Better SC visibility with RFID systems
Timing/duration of movements between
different locations – especially important
for products with limited shelf life
Better management of out-of-stock items
(optimal restocking of store shelves)
Help streamline the backroom operations:
eliminate unnecessary case cycles,
reorders
Better analysis of movement timings for
more effective and efficient logistics
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RFID + Sensors for Better BI
Knowing the location and health of goods
(i.e., exception) during transportation
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Reality Mining
Identifying aggregate patterns of human
activity trends (see sensenetworks.com
by MIT & Columbia University)
Many devices send location information
Cars, buses, taxis, mobile phones, cameras,
and personal navigation devices
Using technologies such as GPS, WiFi, and
cell tower triangulation
Enables tracking of assets, finding
nearby services, locating friends/family
members, …
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Reality Mining
Citisense: finding people with similar
interests
A map of an area of San
Francisco with density
designation at place of
interests
See
www.sensenetworks.com/
citysense.php
for real-time animation
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of the content.
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End of the Chapter
Questions, comments
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All rights reserved. No part of this publication may be reproduced, stored
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Copyright © 2011 Pearson Education, Inc.
Publishing as Prentice Hall
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