Applications of BI in HR

8/2/2019 Applications of BI in HR

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APPLICATIONSOF BUSINESS

INTELLIGENCEIN HUMAN

RESOURCES

By:

Vikramadithya T

Venkateswarlu D


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INTRODUCTION

Business Intelligence (BI) plays a crucial role to achievecompetitive edge over competitors in the challengingeconomy.

BI is rated as the most wanted technology by businessesacross the world. Even in current times of economicdownturn, when IT budgets are being cut, BI is still among thetop of executives priorities.

BI technologies and applications include data management

methods for planning, collecting, storing, and structuring datainto data warehouses and data marts as well as analytical tasksfor querying, reporting, visualizing, generating online activereports, and running advanced analytical techniques forclustering, classification, segmentation, and prediction.


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INTRODUCTION ( CONTD)

Due to advances in technologies and regulatory changesbusinesses are collecting and storing data at an alarming rate.

Companies collect large volumes of data on their employees,

such as salary information, performance reviews, andeducation level. As a result, most organizations face an

information overload. By 2020, the amount of data generated

each year is projected to reach 35 zettabytes (1 zettabyte = 1

billion terabytes, 1 terabyte = 1000 gigabytes).


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INTRODUCTION (CONTD)

Business Intelligence systems are designed to be able to

collect data from various sources, convert the raw data into

useful actionable information or knowledge. Employee data is

generally housed in separate HR systems based on vertical HR

functions, such as benefits, payroll and compensation, leave,training and surveys and/or horizontally across functional

areas. Companies need to identify all internal and external

data sources and then consolidate the data into a HR data

mart. Globilization challenges organizations HR department to

manage workforce diverse in cultures, time zones, expertise,

benefits, and compensations.


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COMPONENTSOFA BUSINESS

INTELLIGENCESYSTEM

BI system consists of a number of component systems that are

interdependent. For the system to function effectively the

components must work in an integrated and coordinated way.

BI components may be broadly classified into the following

four sub-systems :1. Data Management

2. Advanced Analytics

3. Business Performance Management

4. Information Delivery


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DATA MANAGEMENT SUB-SYSTEM

Includes components, relating to Data warehouses, Data

marts, and Online Analytical Processing (OLAP).

Deals with all aspects of managing the development,

implementation and operations of a data warehouse or data

mart including extraction, transformation, cleaning, andloading of data from different sources. The subsystem also

includes meta-data management, security management,

backup and recovery, and data distribution.

OLAP is implemented in a multiuser environment and offers

consistent, quick response, regardless of database size and

complexity.


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ADVANCED ANALYTICS SUB-SYSTEM

Includes analytic functions based on statistics, data mining,

forecasting, predictive modeling, predictive analytics, and

optimization .

Large BI vendors have incorporated comprehensive statistics

packages within their BI software system. IBM has incorporated the SPSS with their BI Cognos system,

and SAS Inc. has developed their BI software with a core

consisting of their celebrated statistical packaged software.

Microsoft has developed XLSTAT, an add-on to Excel for

Statistics and multivariate data analysis.


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BUSINESS PERFORMANCE

MANAGEMENT SUB-SYSTEM

Consists of processes for strategic goals and objectives,performance measurement and mentoring, analyzingperformance and making decisions to improve businessperformance .

Its objectives:1. Ensure supervisors/managers acquire, implement, and applyprinciples necessary to foster high performance in theworkplace.

2. Ensure supervisors/managers conduct meaningful timely

performance appraisals :a. Performance Measurement and Monitoring

b. Analyzing Performance

c. Decision Making and Performance Feedback


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INFORMATION DELIVERY SUB-SYSTEM

Gives the business users the ability to access reports and

continuously monitor organizational performance at enterprise

and lower levels.

According to his or her role as a technocrat, super user,

middle manager, executive manager, or operational user, he orshe will be given role-based rights to access relevant reports

in summary and/or detailed formats.

Depending on an individual's role and responsibility, he or she

is presented with the trends, metrics, at appropriate aggregate

levels with security to block non-privileged items .


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BUSINESS INTELLIGENCE ADOPTIONIN

INDUSTRYAND HUMAN RESOURCES

BI is gaining rapidly in popularity, faster than most

anticipated.

According to a report done in April 2010, it was found that the

BI platforms, analytic applications and performance

management (PM) software revenue surpassed $9.3 billion in2009, a 4.2 percent increase from the 2008 revenue of $8.9

billion .


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WORLDWIDE BI, ANALYTICSAND PERFORMANCE MANAGEMENT REVENUE

ESTIMATESFOR 2009 BY SUB-SEGMENT (MILLIONSOF U.S. DOLLARS)

Sub-system Revenue Estimate Market Share %

BI Platform 5982.4 64.2

CPM Suites 1937.1 20.8

Analytic Applications &

PerformanceManagement

1402.4 15.0

Total 9321.9 100


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MAJOR SOFTWARE ACQUISITIONSINTHERECENTPASTAND PRICE PAID

Vendor Select BI

Acquisitions

Price Paid

SAP Sybase (2010) $ 5.8 BBusiness Objects (2007) $ 6.8 B

Outlook soft (2007) $ 200 M

Pilot Software (2007) NA

SAS Institute Teragram (2008) NAOracle Sun Microsystems

(2009)

$ 7.4 B

Hyperion (2007) $ 3.3 B

Siebel Systems (2006) $ 5.85 B

Sigma Dynamics (2006) $ 10.3 B

PeopleSoft (2005)

IBM SPSS (2009) $ 1.2 B

Cognos (2007) $ 5.0 B

Telelogic AB (2007) $ 845 M


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HR MODULESAND BI & DATA ANALYTICS SOFTWAREFOR GIANT

VENDORS

Vendor HR Module BI & Data Analytics

SAP SAP ERP Human

Capital Management

Workforce Analytics

SAS Institute SAS Human Capital

Intelligence

Human capital

Predictive Analytics and

Retention Modeling

Oracle Oracle Human Capital

Management

Oracle Human

Resources Analytics

IBM IBM CognosHuman

Resources

Business Intelligence

and Human Resource

Performance

Management

BUSINESS INTELLIGENCE AND DATA


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BUSINESS INTELLIGENCEAND DATA

ANALYTICS FEATURESIN HUMAN

RESOURCES

Software joints offer many BI products, including HR

embedded with business intelligence and data analytics

capabilities . They are :

1. SAP ERP Workforce Analytics

2. SAS Human Capital Predictive Analytics and RetentionModeling

3. Oracle Human Resources Analytics

4. IBM Cognos Business Intelligence and Human Resource

Performance Management


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SAP ERP WORKFORCE ANALYTICS

Product includes features and functions that support these

business activities:

1. Workforce Planning

2. Workforce Cost Planning and Simulation

3. Workforce Benchmarking

4. Workforce Process Analytics and Measurement

5. Talent Management and Analytics and Measurement

6. Strategic Alignment


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SAS HUMAN CAPITAL PREDICTIVE

ANALYTICSAND RETENTION MODELING

Product includes the following features :

1. Predicted Turnover Percentage

2. Causes of Voluntary Termination

3. Organization Exposure

4. High Risk by Job Category

5. Top 50 Employees at High Risk

6. Top Performer


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ORACLE HUMAN RESOURCES ANALYTICS

Product includes the following features :

1. Workforce Insight

2. Targeted Workforce Development

3. Improved Compensation

4. Leave and Absence5. Better Understanding of HR Performance

6. US Statutory Compliance

7. Workforce Planning

8. Workforce Cost Planning and Simulation9. Workforce Benchmarking

10. Workforce Process Analytics and Measurement

11. Talent Management Analytics and Measurement

IBM COGNOS BUSINESS INTELLIGENCE


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IBM COGNOS BUSINESS INTELLIGENCE

AND HUMAN RESOURCE PERFORMANCE

MANAGEMENT

Product includes the following features pertaining to the

following five HR core areas :

1. Organization and Staffing

2. Compensation

3. Talent and Succession

4. Training and Development

5. Benefits


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By taking advantage of the rich business intelligence features

in these and other similar products, Human Resources can

position itself as essential value-adding department of the

organization.

THANK YOU

Applications of BI in HR

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