IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004

Data-Driven Business Data-Driven Business Intelligence Systems: Intelligence Systems: Part IIPart II

Week 6Dr. Jocelyn San Pedro

School of Information Management & Systems

Monash University

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Lecture OutlineLecture Outline On-Line Analytical Processing

(OLAP) Executive Information Systems

(EIS) EIS Development Framework

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Learning ObjectivesLearning ObjectivesAt the end of this lecture, the students will Have understanding of On-Line Analytical

Processing (OLAP) and Executive Information Systems

Have understanding of executive information needs

Have knowledge of EIS development

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On-Line Analytical Processing

(OLAP)

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On-Line Analytical On-Line Analytical ProcessingProcessing Term coined by Codd to highlight differences

between transactional processing and analytical processing Transactional processing of operational data not

suitable for answering managerial questions

Provides conceptual and intuitive model Provides data retrieval at the “speed of thought” FASMI Test by Pendse (2003) 12 Rules by Codd, Codd & Salley (1993) OLAP Council

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On-Line Analytical On-Line Analytical ProcessingProcessing

Characteristics

OLAP OLTP

Operation Analyse Update

Screen format User-defined Unchanging

Data transaction

Considerable Little

Level of detail Aggregate Detail

Time Historical, current, projected

Current

Orientation Attributes Records

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On-Line Analytical On-Line Analytical ProcessingProcessingFASMI Test by Pendse (2003) Fast Analysis Shared Multidimensional Information

http://www.olapreprt.com/fasmi.htm

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On-Line Analytical On-Line Analytical ProcessingProcessing

12 OLAP Rules by Codd, Codd & Salley (1993)

Multidimensional view Dynamic sparse matrix handling

Transparent to the user Multi-user support

Accessible Cross-dimensional operations

Consistent reporting Intuitive data manipulation

Client/server architecture

Flexible reporting

Generic dimensionality Unlimited dimensions, aggregation

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On-Line Analytical On-Line Analytical ProcessingProcessingStorage paradigms to support OLAP Desktop OLAP (DOLAP) – desktop files Relational OLAP (OLAP) – relational database

servers Multidimensional OLAP (MOLAP) –

multidimensional database servers

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On-Line Analytical On-Line Analytical ProcessingProcessing

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On-Line Analytical On-Line Analytical ProcessingProcessing

Gray and Watson (1998)

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On-Line Analytical On-Line Analytical ProcessingProcessingRepresentative OLAP / Multidimensional

Analysis Packages BrioQuery (Brio Technology Inc.) Business Objects (Business Objects Inc.) Decision Web (Comshare Inc.) DataFountain (Dimensional Insight Inc.) DSS Web (MicroStrategy Inc.) Focus Fusion (Information Builders Inc.) InfoBeacon Web (Platinum Technology Inc.) Oracle xpress Server (Oracle Corporation) Pilot Internet Publisher (Pilot Software Inc.) Cognos Reportnet (Cognos)

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On-Line Analytical On-Line Analytical ProcessingProcessing

Cognos ReportNet

IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 14Hypherion’s Business Performance Management

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Executive Information Systems

(EIS)

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Executive Information Executive Information SystemsSystems Intended to provide current and appropriate

information to support executive decision making Emphasis is on graphical displays, easy-to-use

interface Designed to provide reports or briefing books to top-

level executive Strong reporting and drill-down capabilities

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Executive Information Executive Information SystemsSystems Shared decision support systems Can only support ‘recurring’ information

requirements Very high profile Relatively expensive

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Executive Information Executive Information SystemsSystems Tailored to individual executive users Designed to be easy to operate & require little or no

training Focussed on supporting upper-level management

decisions Can present info in graphical, tabular & text Provides access to info from broad range of internal

& external sources Provides tools to elicit, extract, filter, & track critical

information Provides a wide range of reports including status

reporting, exception reporting, trend analysis, drill down investigation, & ad hoc queries

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Executive Information Executive Information SystemsSystemsWhat an EIS is NOT It is not a substitute for other computer-

based systems. The EIS actually feeds off these systems.

It does not turn the executive suite into a haven for computer “techies”.

It should be viewed by senior management as a trusted assistant who can be called on when and where necessary.

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Executive Information Executive Information SystemsSystemsWhy Are Top Executives So Different? They are enterprise-oriented in thinking The possess the broadest span of control They are responsible for establishing policy They represent the organization to the

external environment Their actions have considerable financial and

human consequences

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Executive Information Executive Information SystemsSystemsWhy Are Top Executives So Different? They are enterprise-oriented in thinking The possess the broadest span of control They are responsible for establishing policy They represent the organization to the external

environment Their actions have considerable financial and

human consequences

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Executive Information Executive Information SystemsSystems

Executive Information Needs Disturbance management may require around-the-

clock attention. Entrepreneurial activities require the executive to

predict changes in the environment. Resource allocation tasks require the manager to

choose when and where the limited resources are deployed.

Negotiation requires up-to-the-minute info to help build consensus.

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Executive Information Executive Information SystemsSystems

Handling Disturbances, 42%

Entrepreneurial Activites, 32%

Resource Allocation, 17%

Negotiation, 3%

Other, 6%

Frequency of Executive Activities

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Executive Information Executive Information SystemsSystems

Methods for Determining Information

Needs Rockart identified five basic methods for

determining information needs: By-Product Method Null Method Key Indicator Method Total Study Method Critical Success Factors Method

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Executive Information Executive Information SystemsSystemsCritical success factors Concentrate on the most important information

requirements Common technique Critical success factors (CSF’s) are the few key areas

where things must go right in order to achieve objectives and goals

Critical failure factors (CFF’s) are the factors whose existence or lack of existence can contribute to failure

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Executive Information Executive Information SystemsSystemsKey Performance Indicators How do you know how well you are doing against

your CSFs? KPI’s A KPI is a measurement that tells us how we are

performing in regard to a particular CSF. A single CSF may have multiple KPI’s An EIS is a useful tool for assessing KPIs, and

therefore for understanding CSFs. By concentrating on these critical factors, we have a

starting point for systems analysis – we know that CSFs and their KPIs are going to be mandatory information requirements.

Provides structure for requirements elicitation interviews.

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Executive Information Executive Information SystemsSystemsGeneral CSF interview approach Explanation of CSF interview objectives Interviewee is asked to:

Describe organisational mission and role Discuss goals

CSF’s are developed CSF’s priorities are determined Measures are developed (KPI’s)

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Executive Information Executive Information SystemsSystems

CSFs & KPI’s in an EISCSFs & KPI’s in an EIS

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External Data

Data Cubes

The EIS

Executive Workstation

The Data

Warehouse

OLAP

From HereTo Here

Executive Information Executive Information SystemsSystems

Report Templates

Relationship of OLAP to EIS Relationship of OLAP to EIS ArchitectureArchitecture

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Executive Information Executive Information SystemsSystems

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Executive Information Executive Information SystemsSystems

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EIS Development Framework

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An EIS Development An EIS Development FrameworkFrameworkWatson, et al suggest a framework with three

components:1. Structural perspective: focus is on people and

data as they relate to the EIS.2. Development process: the dynamics and

interactions are identified.3. User-system dialog: contains an action language

for processing the commands.

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An EIS Development An EIS Development FrameworkFramework Some EIS Limitations and Pitfalls to Avoid Cost: a 1991 survey showed an average

development cost of $365,000 with annual operating costs of $200,000.

Technological limitations: the EIS needs to be seamlessly integrated into the company’s current IT architecture, so it is a formidable challenge to the designer.

Organizational limitations: the organizational structure might not be right.

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An EIS Development An EIS Development FrameworkFramework Organizational Limitations Agendas and time biases: the EIS represents

only part of executive’s total agenda, and it may become easy to be overly reliant on it.

Managerial synchronization: heavy reliance on the timely, ad-hoc, EIS reports may disrupt stable, well-established reporting cycles.

Destabilization: fast EIS response may cause the executive to react too swiftly, leading to less stability in the organization.

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An EIS Development An EIS Development FrameworkFramework

Failure is not an Acceptable Alternative Some factors that contribute to EIS failure:

Lack of management support Political problems Developer failures Technology failures Costs Time

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An EIS Development An EIS Development FrameworkFramework

The Future of Executive Decision Making and the EIS

Several conditions will merge to transform the technology. Some are easy to predict, some not. Two that we can foresee are: Increased comfort with computing technology in

the executive suite will make innovations more readily accepted.

Broadening of executive responsibilities will broaden the demand for information.

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An EIS Development An EIS Development FrameworkFramework

The EIS of Tomorrow The intelligent EIS: advances in AI technology will

be deployed in the EIS The multimedia EIS: multimedia databases will

allow future integration of text, voice and image The informed EIS: future EISs will make wider use

of data external to the company The connected EIS: high-bandwidth

communication allows greater interconnectivity

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ReferencesReferences Codd, E.F., Codd, S.B., & Salley, C.T. (1993).

Providing OLAP (On-line Analytical Processing) to User-Analysts: An IT Mandate. E. F. Codd & Associates at <www.arborsoft.com>.

Gray P. and Watson, H. (1998) Decision Support in the Data Warehouse, Prentice Hall.

Marakas, G.M. (2002). Decision support systems in the 21st Century. 2nd Ed, Prentice Hall

Pendse, N. (2003) What is OLAP? The OLAP Report, http://www.olapreprt.com/fasmi.htm

Vitt, E., Luckevich, M. and Misner, S. (2002) Business Intelligence, Microsoft Corporation.