Transcript (who, what, when, where) III. Examples of web

Web services
I. Business to business e-business
• How does it work?
II. What are web services?
IIII. Examples of web services
• Data mining and warehousing
• Online analytical processing (OLAP)
• Business intelligence
L561: Information Systems Design for Digital Entrepreneurship
I. Business-to-business e-business
What is b-to-b ebusiness?
The buying and selling of goods and services between
companies online
Facilitating the procurement of goods and services
Includes activities related to the supply chain
Manufacturers, distributors,wholesalers, dealers,
franchisees, retailers
Provision of business infrastructure
Adserver networks, content syndicators, content
delivery, data mining, order fulfillment and logistics,
payment processing
L561: Information Systems Design for Digital Entrepreneurship
I. Business-to-business e-business
B2B e-commerce differs from “e-tailing”
Flexibility in pricing
Transactions require variability in the pricing of
products between purchasers
Haggling is rare in the B2C marketplace
Integration of business systems
To realize increased productivity and savings,
businesses integrate their internal systems, reducing
human intervention
Pan-Western E-Business Team. (2005) Business-to-Business ECommerce Basics.
http://www.e-bc.ca/media/ebizguides/b2b_basics.pdf
L561: Information Systems Design for Digital Entrepreneurship
I. Business-to-business e-business
B2B e-commerce take place throughout the economy
Sector
Total
All manufacturing
4.2 trillion
996 billion (23.4%)
Transportation equipment
663 billion
346 billion (52.2%)
Beverage and tobacco
111 billion
53 billion (47.2%)
5.4 trilllion
59 billion (1.15)
Travel
28 billion
6 billion (22.2%)
Online information
32 billion
4 billion (13.6%)
All service
Ecommerce
US Census (2004). 2004 E-Commerce multi-sector data tables.
http://www.census.gov/eos/www/papers/2004/2004finaltables.pdf
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I. Business-to-business e-business
B2B marketplaces
Vertical e-marketplace
Spans vertically across all segments of an industry
Each level can access all other levels, increasing
collaboration
Advantages: increases operating efficiency, decreases
supply chain costs, inventories, and cycle times
Buying/selling items in a similar industry is
standardized, reducing need for outsourcing
Oil: PennEnergy Equipment exchange
http://www.pennenergy.com/
L561: Information Systems Design for Digital Entrepreneurship
I. Business-to-business e-business
Horizontal e-marketplace
Connects buyers and sellers across many industries
Example: maintenance, repair, and operations
materials
These are crucial to the daily operation of all
businesses
In many corporations the maintenance department
buys directly on-line
Dovebid Industrial auctioneers
http://www.dovebid.com/default.asp?bhcp=1
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I. Business-to-business e-business
B2B supply chain
A linked set of resources and processes that begins with
the sourcing of raw material and ends with the delivery of
goods and services to the final customer
Includes vendors, manufacturing facilities, logistics
providers, internal distribution centers, distributors,
wholesalers and others
“Push” model: suppliers and vendors push products or
services through the supply chain to the end consumer
Costs are accumulated through the chain and the
consumer typically pays
L561: Information Systems Design for Digital Entrepreneurship
I. Business-to-business e-business
B2B changes the supply chain
“Pull” model: the consumer has the most power in the
supply chain, and suppliers must react to their demands
The linear nature of the chain may be broken as
customers circumvent middlemen and resellers
Pressure on resellers to add value to keep customers
Suppliers respond to consumer demand limiting
excessive inventory and storage costs
Shipping logistics are easier to control and costs
are reduced as customers handle shipping tracking,
etc.
L561: Information Systems Design for Digital Entrepreneurship
I. Business-to-business e-business
Types of B2B exchanges
Type
Pricing
Orientation
Many to many
(market)
Dynamic
Neutral
(matching)
Static
(aggregation)
Examples
www.altra.com.sg
www.assetsmart.com
Few-to-few
(dyadic)
Negotiated
Neutral
www.ctspace.com
Few-to-many
(monopoly)
Posted
Biased
(supplier)
www,granger.com
Many-to-few
(monopsony)
Static
Biased
(buyer)
www.covisint.com
Palvou and El Sawy (2002). A classification scheme for B2B
exchanges and implications for interorganizational ecommerce. p15.
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Web services
I. Business to business e-business
• How does it work?
II. What are web services?
IIII. Examples of web services
• Data mining and warehousing
• Online analytical processing (OLAP)
• Business intelligence
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
Web services are a new breed of web application
They are self-contained, self-describing, modular
applications that can be published, located, and used
across the Web
Web services perform functions, which can be anything
from simple requests to complicated business
processes...
Once a web service is deployed, other applications (and
other web services) can discover and use the deployed
service
Vasudevan, V. (2001). A Web Services Primer. XML.com.
http://webservices.xml.com/pub/a/ws/2001/04/04/webservices/index.ht
ml
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
A web service is a set of applications that standardize
communication of of information across systems,
business partners, and customers
They provide a standard means of interoperating
between different software applications, running on a
variety of platforms and/or frameworks
They can then be combined in a loosely coupled way in
order to achieve complex operations
Programs providing simple services can interact with
each other to deliver sophisticated added-value service
W3C. (2004). Web Services.
http://www.w3.org/2002/ws/Activity
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II. What are web services?
Official definition:
A web service is a software system designed to
support interoperable machine-to-machine interaction
over a network
It has an interface described in a machine-processable
format (specifically WSDL)
Other systems interact with the service in a manner
prescribed by its description using SOAP messages
These are conveyed using HTTP with XML serialization
in conjunction with other Web-related standards
W3C. (2004). Web Services Architecture.
http://www.w3.org/TR/2004/NOTE-ws-arch-20040211/
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II. What are web services?
Sun Microsystem’s
web services model
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java.sun.com/developer/technicalArticles/WebServices/WSPack/webservices_model.gif
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II. What are web services?
A software system identified by a URI, whose public
interfaces and bindings are defined and described using
XML
When properly configured, web services can be found by
other software systems
These systems interact with the service in a manner
prescribed by its definition, using XML based messages
conveyed by net protocols
They are loosely coupled, reusable software components
that semantically encapsulate discrete functionality
They are distributed and programmatically accessible
over standard Internet protocols
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
Enterprise applications that exchange data, share tasks,
and automate processes over the Internet
The logical successor to EDI
Net-native applications that increase interoperability and
lower the costs of software integration and data-sharing
with partners
Based on simple and non-proprietary standards and
designed to allow computer programs to communicate
directly with one another
They exchange data regardless of location, operating
systems, or languages
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
Web services use reusable application components that
dynamically interact with each other using net standard
protocols
Services include:
Formatting messages using XML
Invoking via simple object access protocol (SOAP)
Publishing in Web services description language (WSDL)
Location through universal description discovery and
integration (UDDI)
Everett, D. (2002). Web Services: Fulfilling a Spectrum of Business
Intelligence Needs. DM Review
http://www.dmreview.com/master.cfm?NavID=55&EdID=5242
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II. What are web services?
One view of
web service
architectures
eXMLsystems.com. (2003). Microsoft.Net.
http://www.exmlsystems.com/ TechnologyInsight.htm
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II. What are web services?
Formatting messages using XML
It is a “meta-language” for creating markup languages
that describe structured data
It is a subset of SGML, and allows “generalized markup”
It is useful for storing structured and semi-structured text
that will be published in a variety of media
It is extensible, which means that it describes a way of
defining a set of tags and attributes
By itself, XML does not define any tags
This means that you create your own tags, effectively
creating your own markup language
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
Simple object access protocol: invoking services via SOAP
It is an XML syntax for exchanging messages
It is both language and platform independent
A SOAP message consists of an “Envelope”, an optional
“Header”, and a mandatory “Body”
Envelope
Identifies an XML document as being a SOAP message
and encapsulates all the other parts of a message
It contains the version information about the message
Identifies the rules used by the application to serialize
data
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
This is a graphic version
of a SOAP message
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www.c-sharpcorner.com/UploadFile/jgodel/SOAPNETCOMIntroductionpartI11162005042800AM/Images/soap1.gif
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II. What are web services?
SOAP
Header: optional and used to extend the message syntax
independently from a particular application
Information can be inserted to add authorization or
transaction information
Body: carries application-specific contents including
method name and serialized values of the methods’ input
or output parameters
Serializing a web services message in XML format
allows the SOAP XML to pass through firewalls
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II. What are web services?
<SOAP:Envelope
xmlns:SOAP='http://schemas.xmlsoap.org/soap/envelope/’
SOAP:encodingStyle='http://schemas.xmlsoap.org/soap/encoding/'
xmlns:v='http://www.topxml.com/soapworkshop/'>
<SOAP:Header>
<v:From SOAP:mustUnderstand='1'>
[email protected]
</v:From>
</SOAP:Header>
<SOAP:Body>
<v:DoCreditCheck>
<ssn>123-456-7890</ssn>
</v:DoCreditCheck>
</SOAP:Body>
TopXML. (2004). SOAP Workshop.
http://www.vbxml.com/soapworksh
op/articles/intro/page2.asp
www.germes-online.com/direct/dbimage/50297131/Sell_Color_Lined_Soap.jpg
</SOAP:Envelope>
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
Publishing services in WSDL
An XML-based language to describe a business’ services
Allows businesses to access the services electronically
Basis of the Universal Description, Discovery, and
Integration (UDDI) initiative
Derived from Microsoft's SOAP and IBM's Network
Accessible Service Specification Language (NASSL)
Replaces NASSL and SOAP as the means of expressing
business services in UDDI registry
WebServices.com. (2004). Web Services Description Language.
http://searchwebservices.techtarget.com/gDefinition/0,294236,sid26_gci
521683,00.html
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
WSDL provides information about how web services can be
located and operated
It contains “service definitions” for distributed systems
Support the automatic creation of client-side stubs or
proxies, and the binding to the Web services
It describes interfaces to a web services implementation
How messages should be formatted
Bind the abstract message to a concrete protocol
What the correct address of the endpoint is
It is a "take-it-or-leave-it" technical contract offered by a web
services provider to web services consumer
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
Web services process with
WDSL
Requestor: person or company
looking to run a web service
To run the service, a requestor
locates the WSDL document
that details how to run the services
Once the document is found, it's downloaded
It is then examined, and based on what is found in it, a SOAP
request or requests is sent out to the Web service provider
The service sends the information requested - in essence the
Web service itself - using the SOAP protocol
Gralla. P. (2002). An inside look at WSDL. The Web Services Advisor.
http://searchwebservices.techtarget.com/tip/1,289483,sid26_gci811272
,00.html
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II. What are web services?
Typical WSDL elements
<type> and <message>
Describes information to be passed in the web service
<message> element is the web service itself - the
information that is going to be exchanged or requested
<binding>
Details how information will be passed between the
requestor and the web service
Includes information such as the protocol and data
format
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
Typical elements
<portType>
Describes a web service, operations that can be
performed, and messages that are involved
Can be compared to a function library (or a module, or a
class) in a programming language
<service>
Location of the web service
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This is what
WSDL looks
like
II. What are web services?
<?xml version="1.0"?>
<definitions name="StockQuote"
targetNamespace="http://example.com/stockquote.wsdl"
xmlns:tns="http://example.com/stockquote.wsdl"
xmlns:xsd1="http://example.com/stockquote.xsd"
xmlns:soap="http://schemas.xmlsoap.org/wsdl/soap/"
xmlns="http://schemas.xmlsoap.org/wsdl/">
<types>
<schema targetNamespace="http://example.com/stockquote.xsd"
xmlns="http://www.w3.org/2000/10/XMLSchema">
<element name="TradePriceRequest">
<complexType>
<all>
<element name="tickerSymbol" type="string"/>
</all>
</complexType>
</element>
</schema>
</types>
<message name="GetLastTradePriceInput">
<part name="body" element="xsd1:TradePriceRequest"/>
</message>
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<portType name="StockQuotePortType">
<operation name="GetLastTradePrice">
<input message="tns:GetLastTradePriceInput"/>
<output message="tns:GetLastTradePriceOutput"/>
</operation>
</portType>
II. What are web services?
More of the WSDL
message
<binding name="StockQuoteSoapBinding" type="tns:StockQuotePortType">
<soap:binding style="document" transport="http://schemas.xmlsoap.org/soap/http"/>
<operation name="GetLastTradePrice">
<soap:operation soapAction="http://example.com/GetLastTradePrice"/>
<input>
<soap:body use="literal"/>
</input>
<output>
<soap:body use="literal"/>
Gralla. P. (2002). An
</output>
</operation>
inside look at WSDL. The
</binding>
Web Services Advisor.
<service name="StockQuoteService">
<documentation>My first service</documentation>
<port name="StockQuotePort" binding="tns:StockQuoteBinding">
<soap:address location="http://example.com/stockquote"/>
</port>
</service>
</definitions>
L561: Information Systems Design for Digital Entrepreneurship
QuickTime™ and a
TIFF (U ncompressed) decompressor
are needed to see t his picture.
II. What are web services?
Universal description discovery and integration: locating
services through UDDI
An XML-based registry for businesses to list on the web
and publish information about their web services
Goal: to streamline online transactions and allow
companies to find each other and make their systems
interoperable for e-commerce
Used to search for web services
Can store company information, its services, and specific
technical information for binding with a service
UDDI.org
http://www.uddi.org/
www.openves.org/images/uddi.gif
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
UDDI has:
White pages: business name, business type, services
used and technologies supported
Green pages: details on technologies supported,
documents accepted and transaction interfaces.
Yellow pages: business type codes, geographical areas
and technical or international keywords
Allows a service requester to locate businesses, their web
services and the means through which they do business
Providers can publish their business information, services,
and methods of transacting business
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
UDDI repository structure is defined in XML schemas with
four entity types
Business entity: information about a company (white
pages)
Business services: provided by a business entity with
types of services offered (yellow pages)
Binding templates: implement business services and
connect to and make use of them (green pages)
Models: metadata about technical specifications for
services (green pages
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
The following query returns details on Microsoft
<find_business generic="1.0" xmlns="urn:uddi-org:api">
<name>Microsoft</name>
</find_business>
Result: detailed listing of <businessInfo> elements
registered for Microsoft
<businessList generic="1.0”
operator="Microsoft Corporation"
truncated="false"
xmlns="urn:uddi-org:api">
<businessInfos>
<businessInfo
businessKey="0076B468-EB27-42E5-AC09-9955CFF462A3">
<name>Microsoft Corporation</name>
<description xml:lang="en">
Empowering people through great software - any time, any place and on any
device is Microsoft's vision….
</description>
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
More of the message
<serviceInfo
businessKey="0076B468-EB27-42E5-AC09-9955CFF462A3"
serviceKey="1FFE1F71-2AF3-45FB-B788-09AF7FF151A4">
<name>Web services for smart searching</name>
</serviceInfo>
<serviceInfo
businessKey="0076B468-EB27-42E5-AC09-9955CFF462A3"
serviceKey="8BF2F51F-8ED4-43FE-B665-38D8205D1333">
<name>Electronic Business Integration Services</name>
</serviceInfo>
<serviceInfo
businessKey="0076B468-EB27-42E5-AC09-9955CFF462A3"
serviceKey="A8E4999A-21A3-47FA-802E-EE50A88B266F">
<name>UDDI Web Sites</name>
</serviceInfo>
</serviceInfos>
</businessInfo>
</businessInfos>
</businessList>
Vasudevan, V. (2001). A Web
Services Primer. XML.com.
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
Where web
services fit in a
business’
infrastructure
Geniant. (2003). Web services.
http://www.geniant.com/img/web-services-XML-diagram2.gif
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
Typical web services
architecture
Gottschalk, K. et al. (2002). Introduction to Web services architecture.
http://www.research.ibm.com/journal/sj/412/gotts1.gif
L561: Information Systems Design for Digital Entrepreneurship
II. What are web services?
Web services in action
http://www.business2.com/articles/
mag/0,1640,38627|3,00.html
L561: Information Systems Design for Digital Entrepreneurship
Web services
I. Business to business e-business
• How does it work?
II. What are web services?
IIII. Examples of web services
• Data mining and warehousing
• Online analytical processing (OLAP)
• Business intelligence
L561: Information Systems Design for Digital Entrepreneurship
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III. Examples of web services
Data mining
It is a process of knowledge discovery in databases
It involves the extraction of interesting information,
patterns, or rules from data in large databases
These data are non-trivial, implicit, previously unknown
and potentially useful
It is a search for valuable information in large volumes of
data
It uses statistical techniques to explore and analyze large
quantities of data in order to discover meaningful
patterns and rules
www.liacs.nl/home/edegraaf/img/datamining.jpg
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III. Examples of web services
Data mining can be directed
Goal: to use the available data to build a model that
describes a variable of interest in relation to the data set
Given what we know about people in Bloomington,
which types of people are likely to subscribe to DSL?
Data mining can also be undirected
There is no variable of interest
Goal: to search through the available data to look for
patterns and relationships
What can we learn about IU students who default on
student loans?
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III. Examples of web services
Data mining and BI
It provides an organization with “memory” and “intelligence”
Noticing: uses on-line transaction processing systems
(OLTP)
Remembering: capturing as much of the transaction
process as possible
Phone records, communications, CRM exchanges
Learning: the records must be organized into “data
warehouses”
Data mining is used to analyze these data
Intelligence involves patterns, rules, and predictions
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III. Examples of web services
Data mining typically involves six activities
1. Classification: examining features of a data instance and
assigning it to a predefined class
Uses a “training set” to sort unclassified data into
discrete classes
Records are updated by filling in fields with “class code
Stored data is used to locate data in predetermined
groups
Sorting credit card applicants according to risk levels
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III. Examples of web services
2. Estimation: sorts continuously valued outcomes
Using new data to predict whether a given data instance is
above or below a threshold
Requires a model to determine the threshold level
Making predictions and determining churn rates
3. Prediction: similar to estimation but with expectation that
there will be some check in the future
Uses a training set with historical data and a known
predictor variable
Predicting the size of a balance likely to be transferred
when a person accepts a credit card offer
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III. Examples of web services
4. Affinity grouping or association rules: goal is to explore
an available data set to determine which data instances
should be grouped together
This involves discovering relationships among data
Which items should be placed near each other in a
supermarket?
What items do customers buy together
5. Clustering: sort undifferentiated data into like groups
This does not begin with predefined classes
What do the book and music purchases tell us about
our customers?
L561: Information Systems Design for Digital Entrepreneurship
III. Examples of web services
6. Description and visualization: developing a preliminary
understanding of the data
This is a first step in developing an explanation
What do we know about people who shop for food
online?
Visualization is the graphic representation of the data
Directed data mining: classification, estimation, prediction
Undirected data mining: affinity grouping, clustering,
description
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III. Examples of web services
Classes of data
mining activity
Information Discovery, Inc. (2001). A Characterization of Data Mining
Technologies and Processes.
http://www.datamining.com/dm-tech.htm
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III. Examples of web services
The virtuous cycle of
data mining
Transform data
into useful
information
with DM
Identify
problems where
DM can provide
value
Act on the
information
Measure the
results to reuse
the data
L561: Information Systems Design for Digital Entrepreneurship
III. Examples
Exampls ofofweb
webservices
services
In business applications, data mining does not seek to
replicate previous efforts
Goal is to discover new markets, not saturate old ones
In science, replication of results is more important
Data mining is a creative activity
Many patterns will be found, but the art is in focusing
on the meaningful ones
Data mining results can change over time
Models can become less useful over time as data
change and markets change
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III. Examples of web services
If values don’t
look correct
If data are not
available
Add derived
variables
If a new segmentation
improves performance
Create a model
set
Identify data
requirements
If a new technique
improves performance
Choose
modeling
technique
Obtain data
Train model
Validate,
explore, clean
data
If values
don’t look
correct
Check model
performance
Transpose data
Choose best
model
If improvements,
obtain more data
If new derived variable
improves performance
Building a DM
model
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III. Examples of web services
Data warehousing: a central repository
for data derived from different organizational sources
The data store is optimized for decision support and not
for specific operational functions (reservation processing)
A common format or data model is imposed on
heterogeneous data
The data are cleaned and pre-processed
Operational: capturing basic activity (who, what, when,
where)
www.asu.edu/spiada/data_admin/pictures/warehouse.jpg
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III. Examples of web services
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Summary: providing an overview of
the data by aggregating individual data
points
Schema: physical layout of data
(tables, fields, types)
Business rules: what’s been learned from the data
A business rule defines or constrains an aspect of a
business
It is intended to assert business structure or influence
the behavior of the business
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III. Examples of web services
Metadata: logical model and mapping to sources
Used in data acquisition/collection, data transformation,
and data access
Acquisition metadata: maps translation of information
from the operational to the analytical system
Transformation metadata: includes a history of data
transformations, changes in names, and other physical
characteristics
Access metadata: provides navigation and graphical
user interfaces allowing non-technical users to interact
intuitively with the contents of the warehouse
L561: Information Systems Design for Digital Entrepreneurship
III. Examples of web services
Types of data warehousing
Middleware tools: a single interface to a distributed
network of data sources (data stores, departmental data
warehouses)
Requires a common protocol
Difficulty is that the nodes on this network tend to be
incompatible and have heterogeneous data
Departmental data warehouses: contain data prepared for
and relevant to specific areas and functionalities
Tend to be customized and work well in specific domains
Tend not to work well with warehouses in other domains
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III. Examples of web services
Types of data warehousing
Interdepartmental staging areas: simplifies access with
a single interface to different data sources
Can clean data but does not maintain a history or welldeveloped data model
Operational data store: data from related sources
Will typically use a relational database
Multitiered data warehouse: uses a normalized
relational database with a consistent data model
Focuses on data and how it is used in the organization
Maintains a history of data transactions
L561: Information Systems Design for Digital Entrepreneurship
III. Examples of web services
Structure of data warehousing
Source systems: origin of the data (typically
heterogeneous)
Data transport and cleaning: moves data among data
stores
Normalizing data for comparative analysis
Central repository: main storage location
Metadata: describes data characteristics and location
Data marts: specialized access for end users
Operational feedback: integrates decision support into
operational systems
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III. Examples of web services
On-line analytic processing tools (OLAP)
Primary tools for accessing data warehouses
For reporting about the data (not finding patterns in data)
A presentation tool for manual knowledge discovery
OLAP works with data mining but does not replace it
Provides an interactive connection to data allowing fast
analysis of shared multidimensional information
Data are stored in a cube (a relational database) allowing
multiple access points for querying and analysis
A functional area will have its own cube (sales cube,
marketing cube)
customervalufinder.com/images/olap.gif
L561: Information Systems Design for Digital Entrepreneurship
III. Examples of web services
QuickTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this picture.
Dimensionality is the key to OLAP
Multidimensionality allows users to
analyze data across multiple axes
A 5 dimensional cube includes time, products,
customer, salesperson, and measures
Within each dimension are “levels” or hierarchies that
organize the dimension members
A time hierarchy might be: years, quarters, and months
OLAP allows users the ability to look at any intersection
among the dimensions
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What OLAP looks like
Olap Business Solutions. (2002). Why OLAP?
http://www.obs3.com/why_olap.shtml
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With OLAP, users have direct access to information
Puts information into the hands of the decision makers
Allows users to ask questions of the database
High ROI, relatively easy to build, a quick development
cycle
OLAP has become an analytical standard
Lower costs have increased usage of OLAP products
Most RDBMS systems now include an OLAP tool
By 2004 the market is projected to be at over $5 billion
Olap Business Solutions. (2002). Why OLAP?
http://www.obs3.com/why_olap.shtml
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Business intelligence technology
One of the more interesting thing about business
intelligence technology is not so much it’s
advanced in the last 10 years. Rather, it’s how little
that technology has changed.
Kestelyn, J. (2003). Against the Grain. Intelligent Enterprise.
5(15) p. 6
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Trends affecting business intelligence
There is a fundamental shift occurring in the BI market
Gartner calls it corporate performance management (CPM)
IDC and META Group call it business performance
management (BPM)
AMR calls it enterprise commerce management (ECM)
This is a significant change in the importance
organizations place on the use of BI software to increase
corporate profitability
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BI technology is becoming increasingly important
Achieving multiple goals in organizations
Inventory control
Financial modeling
Customer retention
Decision making support
Security
The important question is what happens next
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Business intelligence technology: Systems and trends
III. Examples of web services
BI technology must support several imperatives
Enable decision makers across the enterprise to act with
confidence using current, valid knowledge
Align business and BIT goals to be able to rapidly exploit
new opportunities
Extend the reach of BIT to all stakeholders to improve
their decision making (partners and customers)
Maximize value in the supply chain by collaborating with
partners and suppliers
Develop, formalize, and enforce best practices that are
aligned with business strategy
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Trends
Congressional attention increases BI transparency
Sarbanes-Oxley Act mandates Boards of Directors to
attend to finance issues
It tightens auditing and increases accountability
Venture capital funding is drying up
National venture capital spending sank to a four-year low
in Q3 2002, ($3.9 billion — half the level of Q3 2001)
This means that innovation becomes more difficult
Burriesci, J., Kestelyn, J., and Young, M.M. (2003). The Top 10 Trends
For 2003: Latent patterns in the fabric of strategic IT
http://www.intelligententerprise.com/030101/602news1.shtml
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Trends
Greater attention to metrics and methodologies
Performance goals will be monitored and compared
against benchmarks and applied enterprisewide
Increasing attention to collaborative services
Providers are working to add workgroup collaboration
functionality to their product lines
Collaborative budgeting and planning solutions will be
standard tools
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Trends
Embedding analytic tools
Allowing different types of analyses in different locations
Ensuring that business rules and metadata remain
consistent across the enterprise
Developing intelligent infrastructure
BIT must be able to adjust quickly to changing marketing
conditions
BIT has become a mainstream application
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Trends
More use of web-based reporting and distribution
It extends deeper into the organizational chart
Closing the gap between operations and decision makers
It become more deeply integrated into DSS
Need to understand best practices to link operations to
decision making
Developing interpretive functionalities in BIT
Online application processing (OLAP) tools can show
that sales dropped 10% but can’t explain why (product,
personnel,competition?)
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Trends
BIT has to overcome adoption challenges
Too many products are “shelfware” because they are
too difficult to implement and customize
There are cultural obstacles
Decision makers are not part of acquisition process
Other stakeholders are left out of the process
They don’t demonstrate a clear advantage
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Trends
Legacy systems deliver the same data in familiar ways
They must be able to scale up
Many different people in the organization can integrate
BIT output into their work
Analytic engines that drive BIT have to become more
robust
Some companies are porting software to UNIX (Sagent,
Microstrategy)
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Some are trying “server clustering”
One server automatically takes over the tasks of another
that has failed
Two or more servers (nodes) work together and appear
as a single virtual server to a network
It is important to extend analytic ability
Manipulating records from a variety of entry points and
with a variety of techniques
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Trends
BIT will develop new functionalities
Allowing data to be moved easily across departments,
business functions, and organizational boundaries
Moving beyond linear projections to allow forecasting
Also providing snapshots of point-in-time data
They will use local data models
Will be better able to work with local data models
Current tools come with vendor-supplied data models,
forcing changes in local data
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Trends
Intelligent agents will change BIT
They will provide single point access to distributed data
They will attempt to learn and anticipate user needs
The agent will question the user and then predict what
the user wants
They can merge different types of data (numeric and nonnumeric) in a single interaction
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