Lecture 2

Business Intelligence Capabilities

S.Rosun@uom.ac.mu
Outline
 Four key capabilities of BI solutions
 Organizational Memory Capability
 Information Integration
 Insight Creation
 Presentation
 Discussion topics
 Each capability
 Factors necessitating each capability
 Technologies enabling each capability

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The four (4) key BI capabilities
 Organizational Memory Capability
 The ability to store Information and knowledge
 Information Integration Capability
 The ability to link structured and unstructured data
from a variety of sources
 Insight Creation Capability
 The ability to develop new insights and use them in the
short-term or long-term to make better decisions
 Presentation Capability
 The ability to use appropriate reporting and balanced
scorecards tools, and thereby make BI more valuable to
users
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Four Synergistic Business Intelligence Capabilities
Users
Information presented in
user-friendly fashion and in
ways most appropriate for
each user

Presentation New insights and

information to support
decision making in a real-
time fashion

Insight Creation Synthesized information about

the past and present
(structured and unstructured,
external and internal)

Information Integration
Historical information and explicit
knowledge accumulated over
time (mainly structured and
internal)
Organizational Memory

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 Three Categories of Features
BI capabilities support features of BI solutions which
are classified into 3 broad categories related to
capabilities
 Benchmarking
 Relative to competition and industry trends
 Intelligence
 Ability to search and utilize data across disparate sources
 Convenience
 Customization and connectivity

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 Relation of Categories to Capabilities

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Lecture purpose…
 Look at the commonalities in all BI Tools
 An introduction to the BI capabilities
 Details in coming lectures
 Focus on the BA aspects
 Look at applications of BA
 Provide a strong background to understand BI in
industry

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Why Organizational Memory Capability?
 Organizational memory is composed of:
 Prior data and information
 All internally generated documentation related to the
organization's activities
 Intellectual property (patents, copyrights, trademarks, brands,
registered design, trade secrets and processes whose ownership is
granted to the company by law, licensing and partnering
agreements)
 Details of events, products and individuals (including
relationships with people in outside organizations and
professional bodies),
 Relevant published reference material
 Institution-created knowledge
 Of these, institution-created knowledge is the most important.

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Why Information Integration
Capability?
 Mutually disconnected, incompatible transactional
systems exist within an organization
 Data exists outside of transactional systems such as e-
mail, audio and video files, etc.
 A lot of relevant external data is available, such as web
sites, industry reports, expert opinions
 More complex decision making due to an increase in
the diversity of factors to consider

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 External information and
knowledge from
environmental scanning
and web mining

Information Integration Capability

External

Unstructured
Source of Content

information and
knowledge from text
mining, web mining
and digital content
management systems

Both past content

Internal

as well as
emergent, real-
time content
needs to be
integrated in each
situation

Structured Unstructured
Nature of Content
Structured information and
explicit knowledge from ERP
systems, transactional
systems, and knowledge
repositories
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Why Insight Creation
Capability?

 Need quick reflexes

 Decisions must be made quickly to be competitive

 Domain complexity is increasing

 Must consider information from diverse arenas

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Insight Creation Capability

Learning
Insight creation or
Impacts of Insight Creation Capability

Decision Making
Real-time

Describe What Understand What Predict What Will

Happened Happened Happen

Outputs of Insight Creation Capability

Note: The relative sizes of the boxes in the above cells represent the relative magnitudes of impacts
of insight creation capability on real-time decision making and insight creation or learning.

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Why Presentation Capability?
 Content and format needs differ
 Role
 Ex. Top executive interest in firm-level performance vs.
customer-support personnel interest in aids that support real-
time responses to customers
 Task
 Ex. Customer-support specialist uses different information for
each task
 Preference
 Ex. Individuals differ: Big picture view vs details first

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Factors Affecting Presentation

Role

Content

Task

Format

Presentation

Preference

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Presentation Capability
Technologies
 Goal: Maximize learning and decision making
 Online Analytical Processing (OLAP)
 Explore and analyze interactively
 Visualization
 A picture is worth a thousand words
 Digital Dashboards
 Display metrics in customizable interface and navigable
layout
 Scorecards
 Monitor and show performance
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 Inputs and Outputs of the Four Business Intelligence Capabilities
Roles, tasks, and users’
inputs regarding preferred
nature of presentation
Users Information presented in
user-friendly fashion and in
ways most appropriate for
the specific role, task, and
situation
Presentation New insights and
information to support
learning and real-time
decision making

Users’ inputs about the

analyses that may be
appropriate
Real-time data,
Unstructured Information,
External Information
Data, information, explicit
knowledge (mainly
Organizational Memory
internal, structured) stored
in systems as events occur
Insight Creation
Synthesized information
about the past and present
(structured and
unstructured, external and
internal)
Information Integration
Historical information and
explicit knowledge
accumulated over time
(mainly structured and
internal)

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Technologies Enabling Business Intelligence Capabilities
• OLAP
• Visualization
• Digital Dashboards
• Scorecards
Presentation • Business Performance Management

• Data Mining
• Business Analytics
Creation of Insights • Real-time Decision Support

• Environmental Scanning
• Text Mining
• Web Mining
Information Integration • Radio Frequency Identification Devices

• Data Warehousing
• Enterprise Resource Planning
• Knowledge Repositories
Organizational Memory
• Digital Content Management Systems
• Document Management Systems

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Recap
 We have:
 Summarized the four main capabilities of BI solutions
 Discussed each capability and the factors necessitating
it
 Examined the interrelationships among these four
capabilities
 Identified and discussed the technologies facilitating
each capability

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Key Terms
 business analytics  insight creation
 business performance capability
management  knowledge repositories
 data mining  OLAP (online analytical
 data warehousing processing)
 digital content  organizational memory
management systems capability
 digital dashboards  presentation capability
 enterprise resource  real-time decision
planning systems support
 information integration  scorecards
capability  text and web mining
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End of the Lecture

 Questions / Comments…

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Videos/ Websites
 http://www.youtube.com/watch?v=EYTUhbCxSfE
 http://searchbusinessanalytics.techtarget.com/video/
The-future-of-business-intelligence-BI-tools-getting-
prepared
 https://bi-survey.com/top-business-intelligence-
trends-2017
 https://socialmediaweek.org/blog/2017/01/business-
intelligence-trends/
 https://tdwi.org/cbip

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Questions
 Identify and briefly explain the four business
intelligence capabilities.
 Discuss the ways in which the four business
intelligence capabilities are interrelated.
 In what aspects do business intelligence solutions
improve upon traditional information systems?
 In the light of the four business intelligence
capabilities, explain how business intelligence
produces the benefits explained in Lecture 1.

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Case study: Real-time Business Intelligence:
Best Practices at Continental Airlines
 Read attached document on Continental Airlines. Use
the web and the citations mentioned in the document
to obtain additional information about the
organization and the specific BI effort described here.
Then evaluate how the four BI capabilities work
together to make this BI effort successful.

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