Turning Business Intelligence into a Competitive Advantage

Daniel I. Trnka

Objective

Analyze DetectIdentify

To transform data into “actionable information”

“…by aligning technology with the business requirements and delivering relevant information when and where it is needed.”

Practical Example: border agencies are required to release containers within a few hours of arrival. It is not possible to physically inspect all containers and look for all potential scenarios of fraud or counterfeiting.

By comparing data from multiple sources, inspection efforts can be focused on the containers that present a higher risk profile.

In this case, actionable information would be that “there is a 37.4% chance this particular container carries misreported or undervalued goods (a technical fraud).”

Additionally, in order for this information to be useful, or “actionable”, requires it to be delivered to the right person in time to complete the physical inspection.

Actionable Information is: Relevant

Operational• Exceptions• Discrepancies• Variations• Outliers• Alerts

Analytical• Investigations• Research• Pattern Identification• Analysis

Transactional• Production• Deliveries• Sales• Auditing• Billing

Actionable Information is: Relevant

Operational• Exceptions• Discrepancies• Variations• Outliers• Alerts

Analytical• Investigations• Research• Pattern Identification• Analysis

Transactional• Production• Deliveries• Sales• Auditing• Billing

Relevance has an impact on the underlying architecture, information delivery methods, and visualization of the information. It may include needs such as:

• to drill down on the data• to have static “paper” reports • to aggregate and correlate data between multiple sources • to infuse data from new or external sources• the ability to browse source data

Actionable Information is: Timely

Timeliness refers to a specific point in time. This has an implication on the visualization and delivery methods.

For example: the information may be needed unexpectedly by an executive in a taxi cab on their way to a meeting or over lunch with an important business partner.

These needs are different from a production manager, an accountant, or the research and development team.

Actionable Information is: Adaptive

Improving

Initial

Managed

Defined

MeasuredReporting

Alerts

Risk Profiling

Needs change over time and with the level of maturity of the organization.

In the beginning chaotic situations require reliable, factual transactional reports.

However, the need for information gets increasingly complex over time as the company evolves.

The ability to adapt opens the door to new opportunities internally, in terms of product improvement, and for marketing.

Actionable Information is: Integrated

Actionable Information is: Integrated

Delivering relevant information at the right time, at the right place, to the right person involves the collection and processing of data from multiple sources seamlessly and quickly.

This requires an integration between business workflows and the physical layout of the underlying data.

Actionable Information is Important Because…

You can’t manage a secret--Alan Mullaly, CEO, Ford Motor Co., 2007

The Business Intelligence Value Chain

The Business Intelligence Value Chain

The tangible value of Business Intelligence is the complete value chain it delivers and its ability to systematically:

• collect data from multiple sources• process it, aggregate it, and correlate it• deliver it to the right person, at the right place, at

the right timeso that the decision maker has relevant information whenthey need it at every level of the organization

TYPICAL

Increasing Competitive Advantage

Ava

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form

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n EFFICIENCY &OPPORTUNITIES

Control Operations Research & DevelopmentStrategy / MarketingManagement

Companies typically have an abundance of data yet lack key information to improve strategic decisions, efficiency, and to identify new marketing opportunities.

Conclusion

Focusing on business strategy, identifying key decision factors, and understanding user needs, not just for a segment of employees or specific functions but for the organization as a whole, allows the alignment of the technology infrastructure and bridge the gap between “data” and “actionable information”.