2. Business Intelligence Pathway Method 5 th Meeting Course Name: Business Intelligence Year: 2009

3. Bina Nusantara University 3 Source of this Material (1). Williams, Steve & Williams, Nancy (2007). The Profit Impact of Business Intelligence. Chapter 4

4. Bina Nusantara University 4 The BI Pathway Overview A company’s ability to leverage BI to increase profits depends on three things: the ability of the company to align and govern a BI program, the ability of IT to perform technically, and the ability of the business to change in order to leverage BI within core processes that have a profit impact. This concept is shown graphically in Figure 5-1. Figure 5-1

5. Bina Nusantara University 5 The BI Pathway Overview (cont…) Figure 5-2 Unique Characteristics of the BI Pathway Method The BI pathway method is an iterative, full life-cycle method consisting of three phases, each with specific purposes and deliverables. The three phases are the architecture phase, the implementation phase, the operations and continuous improvement phase (Figure 5-2). Organizational Tailoring of The BI Pathway Method The BI pathway can be adapted to work with other organizational development approaches, as long as such methodologies are adapted to the need for business-driven analytical, architectural, and business process re-engineering activities that provide the distinct BI pathway advantage.

6. The Case for Investing an Architectures Phase When funding a BI initiative, the goal is to leverage information assets to support informed decisions that lead to actions that improve business performance. Architectures phase activities are critical to achieving this goal. BI Pathway Architectures Phase Overview: Aligning the BI Program to Deliver ROI The architectures phase of the BI Pathway focuses on creating an orderly alignment among the following:  The Business Strategic Context  The Business Architecture  The BI Scope  The BI Capabilities/Users  The BI Architectural Contexts Bina Nusantara University 6 The Architecture Phase of the BI Pathway Method  The BI Opportunity Portfolio  BI Requirements: Data, Analysis, Decisions  The BI Architecture  The State of BI Readiness  Business Process Re-Engineering Models

7. Bina Nusantara University 7 The Architecture Phase of the BI Pathway Method (cont…) Figure 5-3

8. Bina Nusantara University 8 The Architecture Phase of the BI Pathway Method (cont…) Setting the Architectural Foundation for BI Project Success The BI Pathway implementation phase consists of design, development, and implementation activities that create a BI project asset. The BI program architectural decisions that are made during this effort are documented in the BI program charter deliverable mentioned in the earlier BI architecture discussion. This architectural foundation is composed of four distinct but closely related architectures:  Governance Architecture: Data ownership and stewardship, data and technical architecture, technical standards, meta-data management, operational support.  Data Architecture: Data intake, Data integration, data distribution, Data access, data delivery,  Technical Architecture & Operational Architecture: a mixed-use BI technical environment, a dedicated BI technical environment

9. Bina Nusantara University 9 The Architecture Phase of the BI Pathway Method (cont…) Figure 5-4 Architecture to deliver data for increase profits Figure 5-5 Basic data architecture in the BI Pathway

10. Bina Nusantara University 10 The Implementation Phase of the BI Pathway Method During the architecture phase, we created the BI opportunity map, which is a tool to help prioritize BI projects. Figure 5-6, BI projects sequentially flow from the BI opportunity map into the implementation phase for development and deployment. Figure 5-6

11. Bina Nusantara University 11 The Implementation Phase of the BI Pathway Method (cont…) Figure 5-7 Figure 5-7, shown the basic flow from requirement through the implementation phase activities. The implementation phase consists of an integrated series of activities that produce specific deliverables that feed or complement subsequent activities and deliverables.

12. The result of the detailed requirements and re-engineered business process analysis get translated into the data and data relationships needed to satisfy the requirements. This is input needed to create the logical data mart model. Logical Data Mart Modeling These models use standard logical data modeling notation and are “translated” by the data modelers to the business audience to ensure that there is a common understanding of what will and won’t be contained within the BI application. The result of the logical data mart model review becomes input into designing the data mart prototype.  The importance of Data Mart Prototyping  Financial Institution Cash Management Business Intelligence Prototype  The Challenge of Data Sources Bina Nusantara University 12 The Implementation Phase of the BI Pathway Method (cont…)

13. Bina Nusantara University 13 The Implementation Phase of the BI Pathway Method (cont…) Technical Development Work There are a variety of technical steps needed to complete the design and development of the database and ETL processes that make up much of technical “plumbing” that support the BI application. Figure 5-8, shown the connection about deploying re- engineering Business Process. Figure 5-8

14. There are two distinct components in the operations and continuous improvement phase. The first consists of improvements in the BI application and how it is used within the targeted business process. The second consists of improvements in the IT production processes used to acquire, move, and store the underlying data that supports the BI application The operations and continuous improvement phase also deals with improvements to the BI application and its usage within the target business process. Bina Nusantara University 14 The Operations and Continuous Improvement Phase of the BI Pathway Method

15. End of Slide Bina Nusantara University 15 “The key question is whether a firm’s investment in information technology is in harmony with its strategic objectives… and thus building the capabilities necessary to deliver business value. This state of harmony is referred to as ‘alignment.’ It is complex, multi-faceted, and never completely achieved.” -Peter Weill and Marianne Broadbent, Leveraging the New Infrastructure, 1998