1

Business IntelligenceStrategy and Technologies

2

Competitive Forces

• Customers or Buyers• Suppliers• Competitors• New Entrants• Substitutes

3

Competitive Strategies

• Low Cost Leadership– Ex: Wal-Mart, Target, Early Japanese Cars, Recent South

Korean Cars

• Product Differentiation– Ex : Mercedes, Pavilion, Rolex, etc.

• Product Innovation/Focus– Ex: i-Phone, Stick Notes, CD’s, etc.

• Growth– Ex: Amazon

• Alliance– Ex: Amazon and Borders, Virtual Companies, etc.

4Strategy is not Static!

Low Cost

Differentiation

Innovation

GROWTH

ALLIANCE

5

Value Activities

Porter’s idea of organizational activities as value adding activities

Two sets of activities : Primary and Support activities

Primary activities : directly related to the product Support activities : organizational infrastructure

6

Value Activities

7

Value Activities

Primary Activities� Inbound Logistic� Production/Operations� Outbound Logistic� Marketing and Sales� After Sales Service

8

Value Activities

Support Activities Management and Administration Human Resource Research and Development Purchasing/Procuring Resources

9

BI for Competitive Intelligence and Advantage

• The Strategic Imperative of BI– Barriers to entry of a new competitor are being

significantly diminished– Because of the Web revolution and increasing

globalization, companies throughout the world are challenging major players in industries

– The ability to deliver goods worldwide is making it easier for potential competitors to get products and services to more customers almost anywhere

– Companies are finding better or less expensive suppliers all over the globe

10

Successful Business Intelligence Implementation

• Appropriate Planning and Alignment with the Business Strategy– Planning and execution components

• Business• Organization• Functionality• Infrastructure

• Establish a BI Competency Center (BICC) within the Company

11BI: Layers of Capabilities with I/O

Organizational Memory

Information Integration

Insight Creation

Presentation

Data, Information,Explicit knowledge

Historical and summary information,Coded knowledge

Real time data,Unstructured data

Synthesized information,Coded knowledge

Business RulesUser inputs

New Insights, DSS support

Business RulesUser inputs

New Insights, DSS support in a user friendly fashion

12BI: Layers of Capabilities and Technology

Organizational Memory

Information Integration

Insight Creation

Presentation

Data WarehousingERPKnowledge RepositoriesContent Management SystemsDocument Management SystemsOLTP

Environmental ScanningText MiningWeb DataPOS and RFID

Data MiningBusiness AnalyticsQuantitative Modeling

OLAPDashboardsScorecards