Lecture - Executive Information Systems and the Data Warehouse

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    Chapter 7: Executive Information Systems and the DataWarehouse

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    Agenda

    1. Introduction

    2. EIS The Promise

    3. A Simple Example

    4. Drill-Down Analysis

    5. Supporting the Drill-Down Process6. The Data Warehouse as a Basic for EIS

    7. Where to Turn

    8. Event Mapping

    9. Detailed Data and EIS10. Keeping Only Summary Data in the EIS

    11. Summary

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    7.1 Introduction

    Prior to data warehousing, there were Executive Information

    Systems (EIS).

    EIS was a notion that computation should be available to everyone

    in the corporation, not just the clerical community doing day-to-daytransactions.

    EIS presented the executive with a set of appealing screens.

    The entire idea behind EIS was presentation of information with no

    real understanding of the infrastructure needed to create that

    information in the first place. EIS has reappeared in many forms todaysuch as OLAP

    processing and DSS applications like customer relationship

    management (CRM).

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    7.2 EIS The Promise

    EIS is one of the most potent forms of computing.

    EIS processing is designed to help the executive

    make decisions.

    EIS becomes the executives window into the corporation.

    Some of the typical uses of EIS are these : Trend analysis and detection

    Key ratio indicator measurement and tracking

    Drill-down analysis

    Problem monitoring

    Competitive analysis

    Key performance indicator monitoring

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    7.3 A Simple Example

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    7.3 A Simple Example (Cont)

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    7.3 A Simple Example (Cont)

    Figure 7-3 shows a comparison that might be found in an EIS

    analysis.

    The few approachs that

    the manager can use EIS

    effectively :

    Trend analysis andcomparison

    To do slicing and

    dicing

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    7.4 Drill-Down Analysis

    Drilling down refers to the ability to start at asummary numberand to break that summary into a

    successively finer set of summarizations.

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    7.4 Drill-Down Analysis

    (Cont)Another important aspect of EIS is the ability to

    track key performance indicators.

    Although each corporation has its own set, typical

    key performance indicators might be the following:

    Cash on hand

    Customer pipeline

    Length of sales cycle

    Collection time

    New product channelCompetitive products

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    7.4 Drill-Down Analysis

    (Cont) The difficult part of EIS is not in the graphical

    presentation, but in discovering and preparing the

    numbers accurately, completely, and integrated

    that go into the graphics, as shown in Figure 7-5.

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    7.5 Supporting the Drill-Down

    ProcessCreating the basis of data on which to perform drill-

    down analysis, then, is the major obstacle to

    successfully implementing the drill-down process,

    as shown in Figure 7-6.

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    7.5 Supporting the Drill-Down

    Process (Cont)

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    7.6 The Data WareHouse as a

    Basic for EIS It is in the EIS environment that the data warehouse operates

    in its most effective state.

    With a data warehouse, the EIS analyst does not have to

    worry about the following:

    Searching for the definitive source of data

    Creating special extract programs from existing systems

    Dealing with unintegrated data

    Compiling and linking detailed and summary data and the

    linkage between the two

    Finding an appropriate time basis of data (finding historicaldata)

    Management constantly changing its mind about what

    needs to be looked at next

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    7.6 The Data WareHouse as a

    Basic for EIS (cont)

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    7.7 Where to Turn

    The EIS analyst can turn to various places in thearchitecture to get data.

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    7.7 Where to Turn (Cont)

    There is a very good reason for the order shown,as indicated in Figure 7-10.

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    7.7 Where to Turn (Cont)

    The ways that EIS is supported by the datawarehouse are illustrated in Figure 7-11.

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    7.7 Where to Turn (Cont)

    The EIS function uses the following :The data warehouse for a readily available supply of

    summary data.

    The structure of the data warehouse to support the drill-

    down process.

    Data warehouse metadata for the DSS analyst to plan how

    the EIS system is built.

    The historical content of the data warehouse to support

    the trend analysis that management wishes to see.

    The integrated data found throughout the data warehouse

    to look at data across the corporation

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    7.8 Event Mapping

    A useful technique in using the data warehouse forEIS processing is event mapping.

    The simplest way to depict event mapping is to

    start with a simple trend line.

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    7.8 Event Mapping (cont)

    Figure 7-12 shows that corporate revenues havevaried by month, as expected.

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    7.8 Event Mapping (cont)

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    7.8 Event Mapping (cont)

    Misleading conclusions can be drawn, though, bylooking at correlative information. It often helps to

    look at more than one set of trends that relate to

    the events at hand.

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    7.9 Detailed Data and EIS

    The following question must be answer : How much detailed data do you need to run your EIS/DSS

    environment?

    What, then, is so wrong with keeping all the detail in the

    world around when you are building an EIS/DSS

    environment?

    Summary data is an integral part of the EIS/DDS

    environment.

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    7.10 Keeping Only Summary Data

    in the EIS

    Some very real problems become evident withkeeping just summary data.

    First, summary data implies a process

    It may or may not be at the appropriate level of granularity

    for the analytical purpose at hand.

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    7.11 Summary

    There is a very strong affinity between the needs of the EIS analystand the data warehouse.

    The data warehouse explicitly supports all of the EIS analysts

    needs. With a data warehouse in place, the EIS analyst can be in a

    proactive rather than a reactive position.

    The data warehouse enables the EIS analyst to deal with thefollowing management needs:

    Accessing information quickly

    Changing their minds (that is, flexibility)

    Looking at integrated data

    Analyzing data over a spectrum of time

    Drilling down

    The data warehouse provides an infrastructure on which the EIS

    analyst can build.

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