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Operational, Tactical, and Strategic

Business Intelligencethat is built using technology

Slide: 1

CRM

BPR

ERPSPR

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Enterprise Resource Planning (ERP)

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The primary purpose of ERP is to collect, update, and maintain enterprise wide information.

All of the functional departments access the same information when making decisions and solving problems

ERP is the logical solution to the mess of incompatible applications that have been adopted into most businesses.ERP addresses the need for global information sharing and reportingERP is how a company can avoid the pain and expense of fixing legacy systems

Enterprise Resource Planning (ERP)

• ERP systems automate business processes

BRINGING THE ORGANIZATION TOGETHER

ERP – bringing the organization together

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Some of the business activities that are integrated◦ Product planning and product

purchase◦ Manufacturing or service

delivery◦ Marketing◦ Sales◦ Inventory management◦ Finance

ERP Integrates Core Business Processes

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Customer Service

CRM

Product Lifecycle

ManagementPLM

DistributionSCM

Business Process

ReengineeringBPR

Financial Management

FMS

ERP systems are theoretically based on what is termed industry best practices – they look at and attempt to replicate the best outcomes in various areas

ERP = Suite of Integrated Applications

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Industry Best

Practices

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Supporting Decision Making Process in Your BusinessBusiness Intelligence

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Gathering Data

Accessing Data & Information

Analyzing Data

Accessing Data & Information

Analyzing Data

Gathering Data

Accessing Data & Information

Business

Decisions

Applications and

Technologies

Business intelligence gathers data

and information necessary to

assist in smart decision-

making efforts in a business

BI Challenge

Data Explosion

The challe

nge today i

s the

explosio

n of data.

The amount of d

ata generated is

doubling eve

ry ye

ar.

Many belie

ve it

soon w

ill be

doubling eve

ry month

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Come up with some thoughts on how BI can impact the following industries or processes in industry

Amazon Well Fargo SelectMed Health

Insurance Geico Auto

Insurance

BI Impact

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Decision Points in a Business

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Operational

Tactical

Strategic

Decisions in business are

made in primarily three

areas.

Business intelligence is used in each of

these areas.

Operational BI

• Primary Users– Managers– Analysts

• Timeframe – Constant throughout the day– Every day– Every transaction

Real Time Metrics Data

Tactical BI

• Primary Users– Executives– Managers

• Timeframe – Weeks to months– At times days may be

necessary– Every transaction

Often Short-term Historical Data

Short-term analysis to

achieve strategic

goals

Strategic BI

• Primary Users– Executives– Directors

• Timeframe – Months to Years– Grouped transactions– Reviewed quarterly

Often Short-term and Long-term Historical Data

Achieve long-term organiza-

tional goals

OPERATIONAL, TACTICAL, AND STRATEGIC BI

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Data Latency◦ Time duration to make data

ready for analysis – extracting, transforming, cleansing

Analysis Latency◦ Time between when data is

available to the time when analysis is complete

Decision Latency◦ Time it takes for humans to

comprehend the analytic result and determine appropriate action

BI’s Operational Value

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