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generated queries against a database and generating reports from that data. It could be a little more
complex using Online Analytical Processing (OLAP) to slice and dice “cubes” of data in a data
warehouse. It could be using statistical routines to develop analytics about the data. It could be using
data-mining techniques to learn more about relationships embedded in the data. It could be models
that use the current data to predict future levels of performance. It could include dashboards that
highlight organizational and personal performance factors. Business analytics refers to the use of the
statistical tools.
A example of a dashboard is illustrated in Exhibit 20.2. The screen shot is from a demo provided by
Information Builders. The idea of a dashboard is to give a snapshot of performance factors. The screen
shot illustrates the metrics for sales. The dashboards for financials and quality would present metrics
for those particular areas.
The notion of business intelligence and its family of tools has grown from earlier decision support
systems applications. The idea behind both is how organizations gather and analyze data to make
better business decisions and optimize business processes. Decision makers use data (data access and
reporting), statistics, and predictive modeling. In some cases, the analysis could result in an automated
decision that requires minimal human intervention. More often, the analysis provides input to the
human decision maker. This evolution is a direct result of more robust user-friendly tools and the vast
amounts of data that an organization now has available.
Key to the success of the resources used for business intelligence is the agility of the firm to react to
new insights. There needs to be a strategic commitment to their importance. Workers need to be datasavvy
and the organization must be committed to providing an integrated, cross-enterprise view of
data and willing to fund the technology necessary to capture this data and make it accessible.
For example, Netflix, the movie rental company, uses business intelligence tools to recommend
movies to a member based on previous rentals and its own inventory. When consumers are
customizing a computer online, Dell uses such tools to recommend upgrades based on what others
have ordered and what Dell has in inventory.
Exhibit 20.2 Sample dashboard from Information Builders’ online demo.
Source: Information Builders.