Transcript Business Intelligence

Business Intelligence
MBA 664
Team BI
Dave Looney
Matt Lauer
Shaun Westfall
Mike Laughman
Introduction
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What is Business Intelligence (BI) ?
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Definition
History of BI
Systems, tools, and strategies
Business applications
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MeadWestvaco
Credit Card Fraud Prevention
International Truck Knowledge Management and
Benchmarking
Definition
• Business intelligence (BI) refers to those
systems that support and improve the
decision making process. It goes beyond
just acquiring, processing, and
manipulating mission critical data. BI
utilizes different systems and tools so that
users can read and interpret the data, and
then make decisions based on their
interpretations.
In other words…
• Business intelligence (BI) is about having
the right information available to the right
decision makers at the right time
• BI is an effective way to link systems that
“do not talk to each other” from a
reporting perspective
• It is the enterprise-wide environment that
supports reporting, analysis, and decision
making on a multi-dimensional basis
History
• The term “Business Intelligence” is relatively new
• The concept of using technology to solve problems or make
businesses more efficient is nothing new
• The advent of “end user computing” brought IT solutions from
the backroom onto the manager’s desktop
• Enterprise wide technology shifted focus from individual silos
to the business as a whole
• Emergence of global processes brought about the need for
standardization of data resources and centralization of
systems
• As technology evolves, the potential for business
enhancement through the use of BI continues to grow
Systems, Tools, and Strategies
• Customer Relationship Management
– Method to optimize relationships with customers
using IT technologies or business models
• Data Mining
– Extraction and analysis of data to establish
relationships and identify patterns
• Data Warehousing
– Separate database dedicated to decision support
• Knowledge Management
– Use of IT technology to organize, manage, and
distribute information in order to meet the needs of
users
Systems, Tools, and Strategies
• Packaged BI Tools
– Software packages such as Crystal Reports, E-Analytics Portal,
etc. in the business intelligence arena
• Reports/Queries
– Programmers can not pre-design all reports and queries
– Provide ways for users to more easily create these on the fly
• Text Mining
– Making information more easily available and searchable in
order to take more advantage of information
• Web Mining
– Integration of information gathered by traditional data mining
techniques with information gathered from the internet
Quick MWV Background
• Mead and Westvaco merged in 1/02
• Legacy Help Desks eliminated, new one began
9/02 centered in Dayton, OH
• 35,000 employees operating in 30 countries
• One support number with new focus
Current Process
• Managers track analysts on the phone with
application
• Analysts track incidents through different
application called Powerhelp
• Reporting on both can prove to be difficult and
also are not interrelated
• Example of Powerhelp
New Process
• Managers will be able to better compare
the phone and Powerhelp activity of each
analyst
• Analysts will have more efficient use of
large amount of data for assistance
Credit Card Fraud Prevention
The use of Business Intelligence has been a
positive force in preventing credit card
fraud.
There are two types of fraud common to the
credit card industry:
• Card Theft (Visa/Mastercard)
• Identity Theft (Private Label Credit)
**This example focuses primarily on Identity Theft**
Definiton
Identity Theft or True Name Fraud involves
the illegal use of an actual person’s
information to obtain credit.
• For Private Label accounts (ie Lowes
Card, Exxon Card) this is seen almost
exclusively on “instant credit” or point of
sale applications
Instant Credit--Issue
Instant Credit leverages technology to
automate the process of credit application
input, credit review, and purchase
authorization.
• Instant credit is the driving force behind
private label credit
BUT
• Ease of application creates exposure to
fraud
How does BI help? Early steps
Data Warehousing:
Gather as much data on previous fraudulent
activity and make it available for analysis
Data Mining:
Trends and patterns for fraudulent activity
are identified (Geographic ‘footprint’, type
of purchase, application data) and flagged
in application system
PROBLEM: These are reactive solutions, Fraud perpetrators
move too fast. DRIP factor (data rich, info poor)
Proactive Uses of BI:
Neural Nets (Packaged BI Tool)
• Combination of multiple data sources by
3rd party vendors with real-time access
allows instant flagging of ‘hot’ fraud info
• Allows for purchase trend analysis across
multiple merchants/banks using the same
data elements
*Credited for a 70% drop in all credit card
fraud by US Bancorp from 1992 to 2003
Proactive Uses of BI:
Adjustable Scoring Thresholds :
• Integrated software allows for previously
observed fraud patterns to be integrated
into credit scoring
• Can be defined differently for each client,
industry, or product based on contracts
and loss sharing agreements
Different types of merchant and products see varying levels of
fraud (Jewelry vs. Carpeting)
Conclusion
• Credit Card fraud became a problem as a
result of criminals taking advantage of
advancing technology
• Business intelligence provides solutions
for these problems when it is integrated
into a comprehensive, proactive package
BI Influencing Business
• The BI field of Knowledge Management is an excellent example of
how the use of BI influences an organizations strategy.
BI = Knowledge Management
• Utilizing the results of data mining and BI research into
organized reports and graphs and deploying the
knowledge throughout the entire organization.
• Knowledge Center - Separate facility that provides data
on all aspects of competitive vehicles.
– Benchmarking – Purchase or lease competitive vehicles and
disassemble these into component parts to establish piece part
costs and estimates for total process costs.
– Results “Best-in-Class” ranking given to the particular system
being studied (Cab Interior, Axles/Frames, HVAC)
– Provides knowledge of our products & processes as compared
to our competitors or the industry.
BI Influences Strategy
• Next Generation Vehicle (2001)
– The drive to be “Best-In-Class”
• Truck Assembly (Partially Core Business)
– Benchmarking comparisons yielded a more “automotive”
process for NGV. “Modularity” & “Option Packages”
• Cab Painting (Core Business)
– BI/Benchmarking Cab paint resulted in a fully automated e-coat
and paint application system.
• Cab Manufacturing (Core Business)
– BI/Benchmarking resulted in moving Cab/Truck manufacturing
toward an “automotive” type process.
– Benchmarking “Best-In-Class” included automotive companies.
BI and Cab Mfg Strategy
• Current Process
– Poor quality of stampings
• Design requires multiple
presses/dies.
• Long die change time.
– Poor cab dimensional
quality (repeatability)
• Interior trim panels
• Windshield
– High Manufacturing Cost
• Over 50 HPU
• Facility over 100 years
old.
• Best-In-Class Vision
– High Quality Stampings
• Minimum # hits to make
parts.
• 10 Min die change time.
– Cab Quality (+/- 1mm)
• Luxury car quality (Lexus)
• Slip joint design to
maintain quality.
– Minimize cost to produce
• New “lean” facility
• State-of-the-art automated
process.
BI & Competitive Advantage
• Stamping Operations
– Class A panels made in 4 hits
or less. (BIC)
– Small lot size runs with dies
change < 6 minutes (BIC)
– Fully automated - only 6
people required to produce
parts for 200 cabs. (BIC)
– Currently listed in top 10
most efficient stamping lines
in the world.(#1 in Truck)
BI & Competitive Advantage Cont.
• Body Assembly
– BI research resulted in
partnering w/ Nissan for
Body Engineering.
– Dimensional Quality +/1mm – (BIC Quality)
– Full Cab Assembled for 5
basic models and more than
20 model variations.
– Cost / Hours Per Unit
• From 50 HPU to 4 HPU
– Full complement of cabs for
all Medium Duty products.
– Reduce Time-to-Market.
BI Today
• Stamping Operations
continues to benchmark
against other world-wide
operations.
• Benchmarking for
Operational Excellence.
• Planning for new model
introductions with Heavy
Duty and Medium Duty
products.
Conclusion
• Business Intelligence
– Definition
– History
– Systems, tools, and strategies
– Business applications
• If used to influence strategy, can provide a
competitive advantage.
Questions?