Sociedade Portuguesa de Inovação August ,5/3,5 CM Innovation and Business Intelligence

1,6/1,6 cm Innovation and Business Intelligence August 2005 Contents June - July the third edition of “Innovation and Business Intelligence ” Course organized by Cherbourg School of Engineering with the support of CRITT BNC, RDT-BN, ADIT and CORDIS

1,6/1,6 cm Innovation and Business Intelligence August 2005 Contents Innovation and Business Intelligence Innovation vs Information From simple Information Research, through Information Watch to BI Business Intelligence and its importance for modern organizations

1,6/1,6 cm Innovation and Business Intelligence August 2005 Different types of Innovation: Innovation Introduction of a new product or qualitative change in an existing product (service) Process innovation new to an industry Entering new markets Development of new sources of supply Changes in industrial organization Source: OECD (1997), “the Oslo Manual: Proposed guidelines or collecting and interpreting technological innovation data”, Paris, OECD

1,6/1,6 cm Innovation and Business Intelligence August 2005 Why do we have to innovate? Innovation WHY? Changing industrial structures and strategies Evolving customers desires Changing environment Evolving society Competitors innovate Advancing technology

1,6/1,6 cm Innovation and Business Intelligence August 2005 Innovation: uncertainty and necessity Innovation As an organization, can I innovate without ANY risk? Navigating an uncertain sea on a necessary boat

1,6/1,6 cm Innovation and Business Intelligence August 2005 What happens if we don’t innovate? Innovation Customers stop buying Sales drop Revenues drop Shareholder return drop Stock price drop Key employee leave

1,6/1,6 cm Innovation and Business Intelligence August 2005 Innovation vs Information Information

1,6/1,6 cm Innovation and Business Intelligence August 2005 WHY? Innovation vs Information “Whenever you see a successful business, someone once made a courageous decision” Peter Drucker

1,6/1,6 cm Innovation and Business Intelligence August 2005 Information Highways Innovation vs Information

1,6/1,6 cm Innovation and Business Intelligence August 2005 The Right Information ? Innovation vs Information

1,6/1,6 cm Innovation and Business Intelligence August 2005 Is it easy? Can that be dangerous? Innovation vs Information Everything that anyone could ever want to know is usually there somewhere...

1,6/1,6 cm Innovation and Business Intelligence August 2005 Innovation vs Information Importance of Information A critical component for the success of the modern organization is its ability innovate and to take advantage of available information. This challenge becomes more difficult with the constantly increasing volume of information, both internal and external to an organization. As more and more organization are becoming “knowledge- centric” the need for access to the right information increases.

1,6/1,6 cm Innovation and Business Intelligence August 2005 Evolution of the concept Importance of Information Documentation Scientific & Technological Information Technology Watch Strategic Information Watch Business Inteligence

1,6/1,6 cm Innovation and Business Intelligence August 2005 Information Watch Technology Watch: observation and analysis of scientific, technologic and economic environment of the organization to identify threats and development opportunities. François Jakobiak Information Watch (definition) Method used by an organization to identify strategic elements in a flow of information. No spy, no state-of- art, information watch is a guide for managers to solve problems. Eric Werner & Paul Dagoul

1,6/1,6 cm Innovation and Business Intelligence August 2005 Information Watch vs Business Intelligence Information Watch (IW) is a process made of several steps, starting with the needs assessment (information watch topics definition) and ending with decision and action. IW deals with search and information collection, since Business Intelligence (BI) adds more notions to this concept. BI = Information Watch + information protection + lobbying information protection = ability to preserve information – related to the company’s knowledge, know-how and strategic choices – against negligence and mailicious intent Information Watch vs Business Intelligence

1,6/1,6 cm Innovation and Business Intelligence August 2005 Business Intelligence Business Intelligence (BI) is the process of in-depth analysis of detailed business data. Includes database and application technologies, as well as analysis practices. Sometimes used synonymously with “decision support,” though BI is technically much broader, potentially encompassing knowledge management, enterprise resource planning, and data mining, among other practices. Business Intelligence

1,6/1,6 cm Innovation and Business Intelligence August 2005 Business Intelligence BI represents a set of coordinated actions of search, analysis, circulation and protection of information. This information is legally collected and should be useful to the economic actors for their individual or collective business strategies. Business Intelligence (definition)

1,6/1,6 cm Innovation and Business Intelligence August 2005 Business Intelligence Term BI is also used as a broad category of application programs and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions. BI applications include the activities of decision support, query and reporting, online analytical processing (OLAP), statistical analysis, forecasting, and data mining.

1,6/1,6 cm Innovation and Business Intelligence August 2005 Business Intelligence “BI is designed only for big companies!” Is Business Intelligence for all? It is not true, because setting a heavy structure is unnecessary! The BI process can be scaled to the organization’s size, its human and financial resources. BI process can focus on priority topics.

1,6/1,6 cm Innovation and Business Intelligence August 2005 Business Intelligence Importance of Business Intelligence BI, if implemented properly within an organization, provide decision-makers with a more effective method of working with information in a way that is relevant to them. By transforming musty mountains of raw data into accurate, relevant and useful information, BI results in better decision-making.

1,6/1,6 cm Innovation and Business Intelligence August 2005 Business Intelligence BI helps organizations being more reactive The foreseeable effects of successfully implemented BI are: time saving, improved information aquiring improvement of (human & non-human) network usage lower costs of information aquisition changes of attitudes (among staff) But don’t expect immediate or short-term results! BI is a long-term process!

1,6/1,6 cm Innovation and Business Intelligence August 2005 Business Intelligence Organizing a BI process The “right information” What are the elements to return? the first step of a BI process Time Being informed on time set up the procedure The risks Assess them information usage

1,6/1,6 cm Innovation and Business Intelligence August 2005 Business Intelligence Organizing a BI process Implementing a BI process is a long-term plan! Take a professional project approach and provide the project with all necessary resources. Assure continuity! Anticipate and estimate the costs (e.g. information acquiring costs) and assess the effects (operating reports) – return on investment. And don’t forget the human element of Business Intelligence!

1,6/1,6 cm Innovation and Business Intelligence August 2005 Thank you for your attention! Contact: