Page numbers followed by f indicate figures. Page numbers followed by t indicate tables.
A
Ab Initio Software, 127
Absa Bank, 40
Accounting, 60–61. See also Budgets
general ledger system, 155
managerial framework, 156f, 157f, 158f
Adoption impetus, 104
Assets, reduction, 166
B
“Balanced Scorecard,” 38, 152–154
definition, 200
Beath, Cynthia M., 117
Benchmarking, 167
Best Practices in Data Warehousing
Awards, 19
BI. See Business intelligence
BI Pathway, definition, 200
BPM. See Business performance management
Brother International, 40
Budgets, 151, 188t. See also Accounting for information technology, 121
Business analysis. See also Business intelligence
with business information, 6t–9t
Business-centric
analysis of using business intelligence to create business value, 46f
analyses, methods, and deliverables, 76f
business intelligence development methods, 12, 25–43, 65–95
implementation phase
connection between architecture phase and leveraging business intelligence, 91f
deploying re-engineered processes, 90–92, 91f
business process re-engineering models, 75
implementation phase, 68–69, 83–92
data sources challenge, 88–90, 88f
financial institution cash management business intelligence
flow chart, 85f
importance of data mart prototyping, 87
logical data mart modeling, 86–90, 88f
portfolio, 84f
requirements and re-engineered business processes, 85–86, 85f
technical development work, 90–92, 91f
key points, 94
mixed-use technical environment, 82
operations and continuous improvement phase, 69–70, 92–93
opportunity portfolio, 74
organizational tailoring, 69–72, 70f
program alignment to deliver return on investment, 73–77, 74f, 76f
setting the foundation for success, 77–83, 80f, 82f
state of readiness, 75
Business decisions, 4
relation between business processes and, 148f
Business design, 145f
Business imperative, business readiness and, 57
Business information, 4
with business analysis, 6t–9t
Business intelligence (BI). See also Information technology
actions and outcomes, 7t, 8t, 9t
application. See Profit improvement program
balancing factors, 105f
barriers to realizing the benefits of, 195–198
business analysis, 4
change analysis, 22
opportunity analysis, 21
process engineering, 22
readiness assessment, 21
ROI analysis, 22
business-centric methods, 12
business decisions, 4
business information, 4
business information with business
analysis, 6t–9t
analysis of business intelligence initiatives, 21–22
capabilities
potential benefits for business and business intelligence, 39t
users and, 74
capturing business value, 12–16, 14f
common mistakes on new initiatives, 170–182
establishing and managing a business intelligence program, 174–177
establishing the value proposition, 171–174
key points, 181
managing organizational change to capture value, 179–181
optimizing information technology infrastructure for business intelligence, 177–179
connection of business design, business processes and, 145f
core business process, 4–5, 109f
decision process engineering, 185–187, 188t–190t, 191
decision support systems, 5
enterprise requirements planning, 5
executive information systems, 9
finance and, 7t
Harrah’s Entertainment example, 3–4, 9, 13
managing for business value delivery, 22–23
model, 99f
organizational opportunities. See Business intelligence organizational opportunities
in practice, 3f
preconditions for delivering business value, 15, 15f
to capture business value, 18f
questions about your organization’s needs, 23–24
scope, 74
stages of operational competitiveness, 132f
Business intelligence (BI) organizational opportunities, 25–43
art versus science and, 36–38, 37f
application of framework, 29–35
business design, 31
evolution of relevant industries, 28–29
financial planning and control, 32
food industry drivers and trends, 29, 30f
manufacturing, 31
product development, 31
SCM, 31
structure of business intelligence opportunity map, 33f, 34f, 35f
key points, 43
quality of business analysis, 38–41
risk-reward tradeoffs and the business intelligence opportunity map, 41–42
Business intelligence opportunities, impact of industry, competitors, and company business design on business intelligence opportunities, 141–145
Business intelligence platforms and analytical applications, 128–129, 129t
Business intelligence readiness, 44–64
business-centric analysis of using business intelligence to create business value, 46f
business process orientation and, 58
continuous process improvement culture, 51–52
culture around the use of information and analytical applications, 52–53
data warehousing technical readiness, 56–58
decision process engineering culture, 55–56, 56f
DW development method and, 57
elements of effective business/information technology partnerships for business intelligence, 59f
examples
disability insurance company, 49–50
executive sponsorship and, 57
impact on its return on investment, 47f
IT readiness and, 58
key points, 63
people readiness and business imperative, 57
portfolio management, 53–55, 54f
traditional development methods, 47–50
Business performance management (BPM), 152–154, 187, 191
optimizing and integrating strategic, tactical, and operational, 195
Business performance metrics, 69
Business processes, relation between business decisions and, 148f
Business question, definition, 200
analysis of business intelligence initiatives, 21–22
Business value capture mechanism, 40
definition, 200
Business vocabulary, 118f
assessment results, 61f
business intelligence readiness assessment, 60–62
supply chain management, 60
C
Capital One, 2
Category management, 162–163, 189t
Center of excellence (COE), 104
CFO. See Chief financial officer
Change analysis, 22
Channel management, 161–162, 189t
Chief financial officer (CFO), 15–16
Chief information officers (CIOs), 67
CIOs. See Chief information officers
Clark, Kim, 170
COE. See Center of excellence
Communication, between information technology and business managers, 118f
CompUSA, 2
Continental Airlines, 2
Continuous process improvement culture, 42, 51–52, 203
Cost leadership, 29
CRM. See Customer relationship management
Culture
around the use of information and analytical applications, 52–53
continuous process improvement, 42, 203
decision making, 48
decision process engineering, 42, 204
disability insurance company, 49
information usage, 203
manufacturing, 48
that supports use of information and analytical tools, 42
Customer relationship management (CRM), 9, 115, 162, 196
definition, 200
Customers
training, 14
Cycle time reduction, 165
D
Data. See also Information technology
definition, 201
to deliver business intelligence, 180
delivery, 81
distribution, 80
intake, 79
meta-data management, 79
ownership and stewardship, 78
technical architecture and, 78
Database management systems, 127
Data cleansing, definition, 201
Data mart
definition, 201
importance of prototyping, 87
subject-oriented, 126
Data warehouse appliances, 130, 205
definition, 201
The Data Warehousing Institute (TDWI), 19–20, 25–26, 56–57, 67
D’Aveni, Richard, 143
Davenport, Thomas, 38
Decision making, 192
culture, 48
Decision process engineering culture, 42, 55–56, 56f, 185–187, 188t–190t, 191, 204
Decision support systems (DSSs), 5
Drucker, Peter F., 11–12, 25, 183
DSSs. See Decision support systems
DW. See Data warehousing
E
EDI. See Electronic data interchange
EISs. See Executive information systems
Electronic data interchange (EDI), 9
Enterprise requirements planning (ERP), 5, 115, 117, 196
ERP. See Enterprise requirements planning
ETL. See Extract, transformation, and loading tools
Executive information systems (EISs), 9, 12
Executive sponsorship
business readiness and, 57
IT readiness and, 57
people readiness and, 57
Extract, transformation, and loading tools (ETL), 127–128, 174
definition, 201
F
Fact/qualifier matrix, definition, 201
business intelligence and, 7t
First American Corp., 184
Friedman, Milton, 1
G
General ledger (G/L) system, 155
G/L. See General ledger system
H
Hamel, Gary, 140
Harrah’s Entertainment, 3–4, 9, 13
Henderson, John, 44
HR. See Human resources
Human resources (HR), 136–137, 174
I
IBM, 127
ILOG, 130
Imhoff, Claudia, 12
Improvements
service level, 166
Informatica, 127
Information, definition, 201
Information technology (IT). See also Business intelligence; Data
assets required for business intelligence, 122–127
analytical applications, 129t
custom, 125
packaged, 125
data sets for complex analyses, 125–126
elements, 123f
embedded applications, 125
infrastructure, 124f
key information technology products, 127–130
subject-oriented data marts, 126
budget, 121
business intelligence and, 117–139
development flow and tools, 134f
production process and key tasks, 135f
business intelligence environment in the IT environment, 131–137
development process, 133–135, 134f
production and support processes, 135–136, 135f
progressive stages of operational competitiveness, 132f
business process orientation and, 58
business support and, 117–122, 118f, 119f
capabilities and potential benefits for business and business intelligence, 39t
competition for resources, 197
data warehousing, 10
deployment, 1
DW development method and, 57
executive and management challenges, 196–197
executive sponsorship and, 57
key points, 138
operations, 113
optimizing infrastructure for business intelligence, 177–179
partnership, 205
portfolio, 119f
readiness and business imperative, 57
skepticism about value propositions, 196
transactional, 10
vocabulary, 118f
Information usage culture, 203
Inmon, William, 12
Investments, business value, 12
IT. See Information technology
K
Key process indicators (KPIs), 185
Kimball, Ralph, 12
KPIs. See Key process indicators
L
advancing business intelligence maturity, 100–104
changing the culture of information usage, 97–98
stages of cultural change, 98–100, 99f
Leveraging the New Infrastructure: How Market Leaders Capitalize on Information Technology (Weill and Broadbent), 118
Living on the Fault Line (Moore), 115
Logistics network optimization, 5
M
MAIF. See Managerial accounting information framework
Management
communication between information technology and business
managers, 118f
database, 127
financial institution cash management business intelligence prototype, 87–88
governance, 109
meta-data, 79
release, 109
supply chain, 60
Management Challenges for the 21st Century (Drucker), 183
Managerial accounting information framework (MAIF), 156–157, 156f, 157f, 158f
Manufacturing
continuous process improvement, 48
culture, 48
partnerships, 48
Market analysis, 159–160, 189t
application of framework, 29–35
business design, 31
business-driven business intelligence value creation opportunities, 31–35, 33f, 34f, 35f
cost leadership, 29
evolution of relevant industries, 28–29
financial planning and control, 32
food industry drivers and trends, 29, 30f
manufacturing, 31
product development, 31
SCM, 31
structure of business intelligence opportunity map, 33f, 34f, 35f
Moore, Gordon, 115
N
NAICS. See North American Industry Classification System
New Industrial Engineering: Information Technology and Business Process Redesign (Davenport and Short), 38
North American Industry Classification System (NAICS), 141
O
OLAP. See Online analytical processing
OLTP. See Online transaction processing
Online analytical processing (OLAP), 48
definition, 201
Online transaction processing (OLTP), definition, 201
Opportunity analysis, 21
Oracle, 127
Organizational support, 173–174
P
Partnerships, 42
elements of effective business/information technology partnerships, 59f
less than ideal, 48
People readiness
business imperative and, 57
business process orientation and, 57
DW development method and, 57
executive sponsorship and, 57
Performance management, 151–152, 188t
Performance optimization, 188t
Porter, Michael, 142
Portfolio management, 42, 53–55, 54f, 204
PR. See Public relations
Prahalad, C. K., 140
Process engineering, 22
to capture business value, 18f
Process improvement, 151–152, 167, 188t, 190t
Profit improvement program, 96–116, 140–169
business intelligence for improving operating processes, 163–167
asset reduction, 166
benchmarking and process improvement, 167
cycle time reduction, 165
operating processes in the value
chain, 164f
purchasing, 166
risk reduction, 165
service level improvement, 166
business intelligence for management processes, 148–159
accounting for operational and financial performance, 154–158, 156f, 157f
opportunities and their relation to categories of business processes, 149t–150t
ways to improve management
budgeting, 151
performance management, process improvement, quality management, and performance optimization, 151–152
planning and forecasting, 151
business intelligence for
revenue-generating processes, 159–163
advertising, direct marketing, and public relations, 161
CRM, 162
customer segmentation, 160–161
business intelligence opportunities and, 145–148, 147t
general management perspective, 105–115
balancing factors, 105f
business strategy, 106
business strategy/business infrastructure and processes, 106
driven profit improvement, 114, 115
analytical capabilities, 110
business alignment capabilities, 108
business strategy, 108
governance and change management, 109
information technology
information technology operations, 113
managing risk and readiness, 110
project management and, 111–112
re-engineering skills, 110, 111
release management and, 109
requirements analysis skills and tools, 109
technical capabilities, 109–110
total cost of ownership, 106
impact of industry, competitors, and company business design on business intelligence opportunities, 141–145, 145f
leadership perspective, 97–105
advancing business intelligence maturity, 100–104
changing the culture of information usage, 97–98
stages of cultural change, 98–100, 99f
relation between business decisions and business processes, 148f
subjects and techniques for business analysis, 144t, 147t
Project, definition, 201
Prototyping, 69
Psychographic segmentation, 160–161
Public relations (PR), 161, 189t
Q
Quality management, 151–152, 188t
R
RDBMS. See Relational database management system
Readiness assessment, 21
framework, 41
requirements of business processes, 85–86, 85f
Relational database management system (RDBMS), 127
Relevance Lost (Johnson and Kaplan), 154
Return on investment (ROI)
analysis, 22
definition, 201
Revenue optimization models, 5
Rigby, Daryl, 96
reduction, 165
Risks
reduction, 190t
ROI. See Return on investment
Ross, Jeanne W., 117
S
SAS Institute, 130
SCM. See Supply chain management
SCOR. See Supply chain operations reference model
Service level improvement, 166
Short, James, 38
Slywotsky, Adrian, 143
SMEs. See Subject matter experts
Source-gap analysis, 89
Southwest Airlines, 40
SPSS, 130
SQL Server, 127
SSA. See U. S. Social Security Administration
Standard cost information, 154
Strategic alignment, 16–17, 42, 50–51, 202
Subject matter experts (SMEs), 16, 66
Supply chain management (SCM), 9, 60, 115, 196
definition, 201
Supply chain operations reference (SCOR) model, 38
Sybase, 127
T
TCO. See Total cost of ownership
TDWI. See The Data Warehousing Institute
Technical readiness, 42
Total cost of ownership (TCO), 106
Training, customers, 14
U
U. S. Social Security Administration (SSA), xvii
V
Value chain, 37f
Venkatraman, N., 44
W
Wal-Mart, 28, 115, 143, 183, 184, 194
business design, 144t
Web Intelligence Supporting Decisions from Owens & Minor (WISDOM), 143
Western Digital, 1
Whirlpool, 184
WISDOM. See Web Intelligence Supporting Decisions from Owens & Minor