What is the BIA implementation process?
Anyone can explain the BIA Implementation process ?
Thank you !!!
The first step is to identify the business issues.
There has been an increased emphasis on BI by companies, media and academia. This is primarily a resultant of the degree and speed of change that are impacting on companies. The improvements in communication technology have enabled extended supply chains while at the same time bring increasing the number of competitors in markets.
As a result, a number of business issues such as an increase focus on customer requirements and need for differentiation through products and/or services. This need to be responsive to factors that are impacting on business require companies to gather relevant information to assist with decision making. The greater the speed of change the greater the need for information.
When individuals are faced with change they endeavour to collect as much relevant information as possible to enable them to make appropriate decisions. This is no different for corporations. There is now a realisation by companies that the ability to adapt provides a competitive advantage in itself.
Once the business issues have been identified then companies need to understand the particular impacts and how they are going to respond. Questions need to be formulated to better understand the impact of these business issues and how companies are going to respond.
Each business area needs to determine how they will respond to the identified business issues. They need to determine what factors do they need to know. What questions need to be asked.
The business questions will differ from business area to business area and at different levels of the organisation.
Each area will have it own priorities and questions. Accordingly they will have differing informational requirements. Companies often have to prioritise the issues.
As mentioned previously each business question will require specific information to assist in the answer.
This may be a combination of structured and unstructured information. Structured information is managed by technology that allows for querying and reporting against predetermined data types and understood relationships. This usually related to databases and spreadsheets. Unstructured information usually involves images, word process documents (policies, procedures, reports) emails, audio recordings. Both types of information are important in decision making.
Determining which information you need to answer the business questions is essential.
Aristotle Onassis after the second world war started with $63 became one of the world's richest shipping magnates with a vast fleet of ships. For his own use, he established Olympic Airways and later gave the airline to the government of Greece as a gift.
His quote reinforces the significance of BI. " Secret of business is to know something nobody else know "
Next, find the information .
If a company can determine which information is required, which is not an easy task, then they have to find the information. With the increasing number of information systems within an company the complexity of finding the information also increases.
The information, both structured and unstructured can exist in variety of sources and maybe hard to find and understand. Understanding the relationship between these information sources and the information they contain adds to the confusion. Each information source usually defines the required data differently which makes the merging of data from different information sources very difficult. For example at one stage Intel from their different customer related information systems had 17 different definitions of a customer (ie different fields). This made it very hard for them to get a single view of a customer.
Companies are now realizing the importance of standardized master data and undertaking projects to achieve this.
Even though companies realise the importance of relevant information they are faced with a number of barriers. The advent of technology has seen an exponential growth in the quantity of information. Identifying relevant information and sourcing it is a skill. A recent report by IDC estimated that there is equivalent to 45gb of storage for every person in the world.
A leading analyst company, McKinsey, found that a significant amount of a worker’s time(40%) was spent looking for information rather than making decisions.
Step 5 , Once the information has been found then it needs to be retrieved, consolidated, transformed into a format that is ready to be reported on.
Step 6 , Once the information has been retrieved (extracted), transformed, integrated and stored it is ready for analysis.
OLAP systems allow for multi-dimensional reporting. This is the ability to navigate through the data and view it from various perspectives. The structures used in data warehousing to support multi-dimensional reporting are Infocubes.
Data is stored in the infocube and then can be accessed for multi-dimensional reporting.
One techniques used to navigate multidemensional reports is drilling down and drilling up.
Drill down allows the user to move from one level of aggreagtion to a more detailed level of aggreagtion. For example Sales per Country is displayed and by using drill down capabilities the user can display Sales per City for a particular country.
Drill Up refers to the navigation from a detailed level of aggregation to a less deatiled level. For example Sales per Customer to Sales per customer group.
Another navigational technique used in multidimensional reporting is slicing and dicing, This is where you display subsets of the data without having to build a separate query each time.
There is a quote which goes something like “We don’t know what we don’t know”. This means that there are things which impact on business which companies may be not aware of. Innovations are about discovering new ways of doing things and relies on making sense of all the factors involved. Data mining attempts to provide a systematic approach to assisting companies understand the relationship between factors and predict possible outcomes.
There are a number of techniques which can be used in data mining. These are either explorative or predictive. Predictive includes decision trees and regression analysis while explorative includes clustering, ABC analysis, Weighted Score Tables and Association. Which We did in our E LEARNING.
Once the information has been analysed, then it needs to be presented to the decisions makers. There are a variety of mediums that can be used to deliver the results.
This research from the Economist Intelligence Unit demonstrates the variety of mediums used to deliver reporting information.
A number of advanced integrated reporting mechanisms have been developed.
Information cockpit provides a user friendly view to the KPI’s to manage a company
The dashboard is not much different from an information cockpit but is usually limited to one functional area. It provides a high level of performance but provides drill down capabilities to elicit more details as required.
Geographical presentation as the name indicates displays business related data on maps again drill down capabilities allow for a greater detail.
Broadcasting is a report distribution method. Reports can be distributed via email based on a set schedule or triggered by a particular event.
Mobile intelligence means that BI reports can be sent to various mobile devices.
The final stage in the process is to take action based on the analysis of the information.
Closed Loop refers to implementing the business intelligence findings. In other words change a particular to a business process or implement a new initiative.
However closed loop is not a single iteration. The data should be collected and analysed again to determine if the business question, the identified information and analysis was correct and addressed the business issue.
Here is an example of the closed loop process.
Capital One, a leading financial institution, conducts more than 30,000 experiments a year, with different interest rates, incentives, direct-mail packaging, and other variables. Its goal is to maximize the likelihood both that potential customers will sign up for credit cards and that they will pay back Capital One.
To end off , I would like to addup that BI System have 4 major components .
The data warehouse, containing source data Business analytics, a collection of tools for manipulating and analyzing the data Business performance management, for monitoring and analyzing business performance The user interface, such as the dashboard
The BIA measures the potential quantifiable and qualifiable impact that could occur if any business function was unable to operate for a period of time for any reason.
The main input for the business impact analysis process is the BIA Methodology, and you also need a list of your business continuity activities (i.e. processes or departments).
All the information must be given by, and assessments made by, the responsible persons from each activity. While doing that, they must use the worst-case scenario criteria: what would have happened in a huge storm, not some average storm; a breakdown of your whole IT infrastructure, not just some insignificant server; loss of data from your main server, not from one laptop only; your CEO and main system administrator are missing, not only some lower-level employees; and all of this happens when you have a short deadline to deliver an important product to your most important customer.
BIA is generally a multi-phase process that includes the following steps:
-Evaluating the collected information
-Preparing a report to document the findings
-Presenting the results to senior management.
A detailed questionnaire or survey is commonly developed to identify critical business processes, resources, relationships and other information that will be essential in assessing the potential impact of a disruptive event. An education session may be conducted for key personnel with knowledge of the business. Information can be collected in a variety of ways, including in-person interviews and automated surveys. Follow-up interviews may be necessary.
The goals of the BIA analysis phase are to determine the most crucial business functions and systems, the staff and technology resources needed for operations to run optimally, and the time frame within which the functions need to be recovered for the organization to restore operations as close as possible to a normal working state. The analysis may be manual or computer-assisted.