The State of Business Intelligence

Jessica KeyesNew Art Technologies, Inc.jkeyes@newarttech.com

“What is called foreknowledge cannot be elicited from spirits, nor from gods, nor by analogy with past events, nor from calculations. It must be obtained from men who know the enemy situation”

(Sun Tzu, circa 500 BC)

So, who is the enemy?

Too much data• The amount of information we are

expected to absorb will double every four to five years

• More information has been generated for mass distribution in the last three decades than in the previous 5,000 years.

• Our capacity to retrieve this information is declining. Out of all absorb, we can retrieve from our memories only a paltry 5 percent.

• Richard Saul Wurman coined a term for this – information anxiety

What we say about ourselves?

Patents

Individual communications

Information for internal consumption (sales data etc.)

Press releases, interviews, public statements

Communications for trading partners (e.g. extranet)

Customer support material

RFPs, job descriptions

Promotional material, directory entries

House journals

Research publications

Annual report, shareholder communications, other material obliged to disclose

Staff expertise

Customers

Industry commentators

What do others say? Competitors

Pressure groups

Media

Financial advisers

Credit rating agencies

Suppliers

Trade journals

Trade web sites

Trade associations

Specialists and consultants

Stockbrokers

Market researchers

Local

National

International

New data types• Blogs • Audio casts • RSS feeds, etc.• Podcasts and vodcasts

We simply can’t keep up!

Bad data• Redundant data• Errors in data• Missing data• Weak and difficult to detect patterns• Lack of stewardship• Confusing and difficult to analyze• Not indicative of true change• How do you value personal contacts?

But no information, no value.

Your competitors• Known competitors• Phantom competitors – e.g. MetLife

Bank, Internet only banks, one day Amazon?

New regulations

• Such as– Basel II– Sarbanes-Oxley

Unprepared staff

• Offshoring, outsourcing• New “educational” models• The new “multitasking” generation

Poor performance and risk

• Corporate risk– Risk Management and Mitigation– Crisis Management

• Performance management and measurement– Metrics– Balanced Scorecard

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If you’re here you know what BI is

Knowledge about your customers, your competitors, your business partners, your competitive environment, and your own internal operations – that gives you the ability to make effective, important, and

strategic business decisions.

0% 10% 20% 30% 40% 50%

Cutting business costs8%

Strategic use of IT & business

intelligence

38%

Creating new products and services 13%

During the next three years, the biggest shift in the focus of IT in my organization will be toward:

Increased people and process complexity

Enabling better business process

43%

Source: Gartner EXP CIO survey, 2005

BI …• Is a subset of knowledge management• Relies on content management• Uses data mining and other analytic

techniques to access data stored in data marts and data warehouses

• Has an AI component

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BI’s two components

• Business intelligence (BI) systems – internal

• Competitive intelligence – external

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Strategic and competitive opportunities• Strategic uses of business intelligence

ranked in order of importance– Corporate performance management– Optimizing customer relations,

monitoring business activity, and traditional decision support

– Applications for specific operations or strategies

– Management reporting of business intelligence

Banking uses• Lloyds TSB

– Saved $ 3.5 million by reducing credit card fraud

• Groupe Banque Populaire– generated $ 1.8 million additional

revenue on a lead generation campaign

• BankFinancial– 7 x increase in customer response

rates, 80% reduction in costs• All banks

– Customer insight-driven marketing

Business Intelligence trends

• BI standardization– While BI has been deployed

departmentally, IT organizations are driving enterprise BI standards

• BI to the masses– Deploying BI to the “corporate middle

class” has started

INFORMATIONMANAGEMENT

BUSINESS PERFORMANCE

DATAINTEGRATION

EXTRACTTRANSFORM

LOAD

DATABASEREPLICATION

ENTERPRISEINFORMATIONINTEGRATION

INFORMATIONLOGISTICS

AGENTS

ENTERPRISEAPPLICATIONINTEGRATION

METADATA

REPOSITORY

STANDARDS/ORGS

ADAPTERS

DATA QUALITY

DATAPROFILING DATA

CLEANSING

ENRICHMENT

ARCHITECTURE

DATAWAREHOUSE

OPERATIONALDATA STORE

DATAMART

MULTI-DIMENSIONALDATABASE

DATA MODELING

COMMERCIALMODELS

STARSCHEMA

MODELINGTOOLS

PROJECTS

CONSULTINGJUSTIFICATION &

BUDGETING

ROLES/RESPONSIBILITIES PERFORMANCE

DBMS

ACTIVITYMONITORING

QUERYMANAGEMENT

HOSTING/OUTSOURCING

QUERY REPORTING

MININGINTERACTIVE

TEXT

PLANNING

FORECASTING

CLUSTERING/SEGMENTING

PREDICTION

AD-HOC NATURALLANGUAGE

METHODOLOGY

DASHBOARD/SCORECARD

MANAGEDREPORTING

ALERTS/NOTIFICATION

OLAP

DATAADMINISTRATION

OTHERSTANDARDS

STEWARDSHIP/OWNERSHIP

OPTIMIZATION

VERTICAL/HORIZONTAL

ANALYTIC APPS

MODELMGT

IDENTIFICATION/MATCHING STANDARD-

ization

RECOMMENDATIONENGINES

DATA INTEGRATIONPARALLELiZATION

CRMSALES / MKTG

SUPPLIERMFR / DISTRIB

ERPHR / FINANCE

WEB[INDUSTRY]

POLICY/GOVERNANCE

INFORMATIONVALUE

Enterprise Analytics

Source: Gartner

Pervasive Business Intelligence• Pervasive BI is a set of capabilities that

extend the basic building blocks of BI• A philosophy of “Access All Areas”• Providing information to all employees

to support business decision making• Styles of delivery

– Self-service (pull)– Embedded into applications (push)

BI pitfalls

• No business involvement• No audit controls• No methodology• No data quality processes• Lack of coordination and reuse –

the “silo” effect• No technological roadmap• Not understanding the broader

picture

Future BI• More well integrated into KM as a whole• Enhanced use of AI technologies such

as expert systems, enabling enhanced predictive analytics

• Enhanced dashboards, increasing visualization

• Incorporation of non-textual data, such as audio, video and images (including satellite images)

Thank you