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Chapter 6: Technologies
Enabling Presentation
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Announcements
Assignment 2 (Machine Learning) due tonight (Monday)
Baseline results of SVM classifier posted on Blackboard
Blackboard Quiz Chapter 6
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Introduction
Online analytical processing (OLAP)
Visual analytics
Balanced scorecards
Performance dashboards
Visualisation Basics (Tableau)
+ Recall Figure 2.1 (page 27) 4
Users
Information presented in
user-friendly fashion and in
ways most appropriate for
each user. Focus is on
reporting tools.
Presentation New insights and
information to support
decision making in a real-
time fashion. Focus is on
making better decisions.
Insight Creation Synthesized information about
the past and present
(structured and unstructured,
external and internal). Focus
is on linking structured and
unstructured data.
Information Integration
Historical information and explicit
knowledge accumulated over
time (mainly structured and
internal). Focus is on storage.
Organizational Memory
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Historical Visualisation (Snow, 1854)
John Snow’s London cholera map (Klein, 2014)
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Online Analytical Processing
Transactional databases are accessed by online transaction processing
(OLTP) applications
OLAP was coined by Edgar Codd [1970 ]
OLAP is used essentially to query the DW
OLAP supports the presentation of data in a multi-dimensional format called
a cube
The numeric facts in the DW known as the measures
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OLAP Cubes
OLAP offers the ability to have more than three dimensions (hypercube)
Pivot Table – A data summarization tool
OLAP cubes enable slicing and dicing the data
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OLAP Cube, Data Slice and Dice
Chaudhuri, Dayal and Ganti (2001):
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ROLAP and MOLAP
Ponniah (2010):
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ROLAP and MOLAP
Ponniah (2010):
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Visual Analytics
Visual analytics refers to the use of computer graphics to create a visual
representation of large collections of information
Purpose of visualization is to enable knowledge discovery
Importance: visualization helps users see patterns
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Business Graph Types: Tree Map
[Link]
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Business Graph Types: Surface Graph
[Link]
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[Link]
+ Graph Analytics 15
Network of 9/11 hijackers
[Link]
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Balanced Scorecards
Monitor and show performance by focusing on certain outcome
metrics and comparing them to a target
Monitor tactical and strategic goals
Balanced Scorecard focuses on four organizational perspectives:
Financial
Customer
Internal business process
Learning and growth
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Balanced Scorecards
Approach for organizational assessment developed by Kaplan and
Norton (1996)
Firm’s competitiveness
Quantify the intangible assets of an organization
Measure past performance
Internal processes and intangible assets
Measures value creation for the organization
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Balanced Scorecards
Organizations can use the balanced scorecard as a means to link
their long-term strategic objectives with their short term actions
through four management processes.
Translating the vision
Communicating and linking
Business planning
Feedback and learning
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Balanced Scorecards
Financial
Metrics include profitability, growth, and shareholder value.
Customer
Metrics include customer satisfaction, acquisition, and retention.
Internal business process
It is the internal actions that make your product or services good and hence, your
customers satisfied.
For this reason, internal productivity metrics such as absenteeism rates, overall labor
effectiveness, and others represent an important section of a balanced scorecard.
Learning and growth
This section includes actions the company takes to grow effectively, such as sales in
new markets, development of new products, or employee training.
[Link]
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Balanced Scorecards
[Link]
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Performance Dashboards
Performance dashboards are designed to be similar to a car dashboard
Performance dashboards serve as an “organization magnifying glass”
Measure performance, reward positive contributions and align efforts
Used for forecasting, inventory, production and sales
Organizational performance- “Three Threes”
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Performance Dashboards
Three applications: a monitoring application, an analysis application, and a
management application
Three layers: integrates a monitoring layer, an analysis layer, and a detailed
information layer
Three types: support operational, tactical or strategic decision-making
+ Performance Dashboard (Strategic) 23
A strategic dashboard is used for monitoring long-term organizational
strategies with the help of critical KPIs. They’re usually complex in their
creation, provide an enterprise-wide impact to a business, and are mainly
used by senior-level decision-makers.
[Link]
+ Performance Dashboard (Operational) 24
An operational dashboard is a type of dashboard used by companies to
monitor and optimize the performance of their short-time operations. Since
they focus on tracking operational processes, they’re usually administered by
junior decision-makers.
[Link]
+ Performance Dashboard (Tactical) 25
A tactical dashboard is utilized in the analysis and monitoring of processes
conducted by mid-level management, emphasizing the analysis. Then an
organization effectively tracks the performance of a company’s goal and
delivers analytic recommendations for future strategies.
[Link]
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Comparing the “Three Threes”
[Link]
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Performance Dashboard (Good
Features)
Simplicity - reasonable number of data elements (widgets); uncluttered
view;
Interactivity - e.g., sliders setting a range, or other user-friendly
manipulation like drill-down;
Color consistency - subdued for general view; accentuated to attract
attention;
Geolocation display where appropriate (location-dependent);
The northwest corner is the point of prime interest, and the most important
information should be placed there;
If several data series use same scale (e.g., time), it makes sense to justify
data along the same axis.
Good Features (Skyrius, 2021: 174)
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Performance Dashboard (Bad
Features)
Low quality, unreliable data;
Overload with content; too many indicators;
Small and hard-to-read charts;
Color abundance; dark or black backgrounds are not the
best solution;
Chart choice—if the chosen chart type doesn’t tell much,
graph type should be changed if the data is important, or the
graph should be removed altogether;
Bad Features (Skyrius, 2021: 174)
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Performance Dashboard (Bad
Features) … cont.
Lack of context if some key data around the graph is missing;
Too many data points for this type of graph;
Over-decorated settings that do not add to sense making;
Too large data precision—too many digits;
Unordered (unsorted) bar graphs, if not representing time
series;
Bad Features (Skyrius, 2021: 174)
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Dashboard versus Scorecard
[Link]
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IT Governance
IT governance refers to “specifying the decision rights and accountability
framework to encourage desirable behavior in the use of IT”
Goal: determine who makes the key IT decisions in the organization and how
Effective IT governance is the single most important predictor of value an
organization generates from IT
Should address three questions:
what decisions are made,
who should make it,
and to make it.
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IT Governance
Five interrelated IT decisions must be addressed (Weill & Ross,
2004):
1. IT Principles – a related set of high-level statements about how IT is used
in business
2. IT Architecture - data, applications & infrastructure
3. IT Infrastructure – technology components
4. Business Applications Needs
5. IT Investment and Prioritization
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IT Governance
[Link]
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Impact of BI on Corporate
Performance
Infrastructure for members of the organization to measure, monitor, and
manage the key activities and processes that the organization must pursue in
order to meet their goals, or their key performance indicators (KPIs)
The goal – to provide decision-makers with the following capabilities:
Detect events
Prompt managers
Analyze data in real time
Collect data
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Impact of BI on Corporate Performance
(10 common mistakes)
When designing performance dashboards for the organization it’s
important to avoid ten common mistakes (Eckerson, 2006):
1. Failure to apply the “Three-Threes” (of three applications, three layers, and
three types)
2. Overrating the importance of dashboards and scorecards
3. Failing to deliver three applications: Access, Analyze, and Management
4. Failing to deliver three layers of data and information
Bottom layer: transactional data
Middle layer: OLAP & interactive reports
Top layer: graphical summarized view
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Impact of BI on Corporate Performance
(10 common mistakes)
5. Failing to create the right type of performance dashboard:
Operational metrics (monitor metrics);
Tactical metrics (analyze progress of departmental projects);
Strategic metrics (manage strategic objectives)
6. Falling prey to glitz
7. Building a dashboard with a lightweight architecture
8. Delivering real-time data without context
9. Failing to design effective KPIs
10. Failing to apply KPIs correctly
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Impact of BI on Corporate
Performance
BI can support the implementation of dashboards and scorecards
for the creation of KPIs that enable the organization to:
Communicate and refine their business strategy
Increase visibility of the organization’s strategic goals
Increase enterprise-wide coordination of activities
Increased motivation, morale and empowered users
Provide a consistent view of the business
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Impact of BI on Corporate
Performance
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Visualization Basics
Study the Guideline by Tableau.
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Learning Outcomes
Describe visual analytics and OLAP
Scorecards to monitor Strategic Performance
Performance Dashboards “three threes”
Good and Bad Features of Dashboards
Effective IT Governance
Ten mistakes to avoid designing dashboards
Impact of BI on Corporate Performance
Visualisation Basics by Tableau
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References
Eckerson, W. W. (2006). Ten Mistakes to Avoid When Creating
Performance Dashboards. Business Intelligence Journal, 11,
66.
Skyrius, R. (2021). Business Intelligence: A Comprehensive
Approach to Information Needs, Technologies and Culture.