Business Intelligence hn I .

. . and Emerging Trends P ernemar1on: I

BU5incss Intelligence Implemenrauon: Imegrauon megration and Emerging Trends
231
. . ( FID) BI and decisio n suppo rt . 111is chapte r contains input Data
Radio Frequency !Denuficauo n R • ·
the following sections: p0S terminals
Raw data Marketing
· s ts Inc reases Co ll abo ratio n a nd Data Mart BIAnalvt,ics Results
Primary data Personalized
O p e nin g Vig nette : Bl Eas te rn Mo unta in p o r [WebFoeusJ
KPrs dashboards
Productivity ERP
1 Impleme ntin g Bl : An Overview
2 Bl and Integra tio n Impl eme ntati o n
3 Connecting Bl systems to Databases and Othe r Ente rprise SyS t ems
(
4
5
6
O n-Demand Bl
Issues o f Legali ty. Pri vacy , a nd Eth ics
Emerg ing To pi cs in BI : An Overview
J
r,- - - +"il
l
Biogs,
lrMting
comments
" )~
Company's
associates
community
ti
/ '-,--~-✓ Decisions
7 The Web 2.0 Revoluti o n
8 O nline Socia l Netwo rking : Basics a nd Examples
9 Vi rtu al Worlds

tt. I
10 Social Netwo rks a nd Bl: Collabo rative Decis io n Ma kin g Tools to
search or
11 RFID a nd new Bl Appli ca tio n Oppo rt u n ities
analyze biogs
12 Real ity Mining Collaboration

KPl's Suppliers Web VISltS

statistlCS
OPENING VIGNETTE: Bl Eastern Mountain Sports Increases real time
RSS Feeds
Collaboration and Productivity Managers' plan l,...,_ _ _ _ _ __
Eastern Mountain Sports (E~lS) (ems.com) is a medium-size specia lty reta ile r (a nnual Return Rate of and a v,jki !
sa les S200 millio n in 2009) that sells goods in mo re than 80 physica l sto res through mai l- Products
o rder catalogs and o nline . Sports busi ness is done in a very compe titi ve e nvironment. Cost per order
( Oec,sions )
The company needs to make decisions rega rding product develo pment , marketing , pro-
duct io n . a nd sa les continuously . Good decisions requi re input and collabo rat io n fro m
FIGURE 1 Collaborative Decision Making at Eastern Mountain Sports.
empl oyees. custome rs , a nd suppli ers During the p ast fe w years , th e compan y imple-
me nted a 131 S\'Stem that includes busi ness pe rfo rmance ma nagement and dashboa rds.
The Bl system · collects raw data from multiple sources, p rocesses th e m into data , a nd . . n- · ) t ' rnc and con,·ers1on r..tes on an
e-marketing w he re m a rkeung managers monitor " t J ra
conducts analy,;es that include compa ring pe rforma nce to o peratio na l me tri cs in o rder to hou rly bas is. The dashboa rd shows deviations from ta rgeLs by mt'3ns of a color code.
asse~s th e hea lth o f the business (see Fig ure ]j.
The n, EMS added 1.he fo!lo,Ying set of social softwa re tools
He re i5 how the system works . Po int-o f-sa le info rmatio n and o ther relevant data ,
. - bedded into the da., hboard, to drive more
w hich a re avai lable o n an IBM mai nframe computer. a re loaded into a Microsoft SQL • RSSfieeds RSS feeds (SeC!lon ) are em ni· .
. Ix . for infonmtion sharing and o me com er-
~e rw r and into a data mart . Th e data a re the n ana lyze d with In fo rm ation Builders' focused inquiries. 111ese feeds are th c a5!5 · . ,~-it r than the others. USCl'-
WebFOC L'S - I 2 pl atfo rm . The result5 a re presented via a series o f das h boa rds that use rs · •h· ·h items are se11mg ~ "
sations. For example. bys h owmg " ic h . _t.c" anc.l ,elling beha,-iors th:.tt
t' on c aracten.s 1 °
can view by using thei r \X'e b b rowsers. 111is allo ws u~ers to access a unified , hig h-le vel can collec1.i vely a nalyze tI1e trnnsac 1 . d th ·n cascades throughout the
view o f key performance indicators ( KP! s). s uch as sa les, invento ry , and margin le ve ls , I dge acquire t ·
prod uce th e hig h sa les. The kno-' e .d pw ire.I ,pike in rooiwear sale5
and then dri ll do wn 10 granular detai ls that analyze speci fi c transactio ns. . nager obsef\ e an u , .
o rgan izatio n. For instance. one ma X ploi·ees had perfected a mult1step
Desp ite the cutting edge 1ech no lo1,,y. the ,y'item was not perfo rm ing too well mai nly . · . J d that store: em . ., __
at store X . An invest1ga11on re, ea e . both rn -ind in store>! special S<X"'>.
d ue w imuffi~ie nt data acce,,. communica tion. and collabo rat io n amo ng all participants. . d mcndmg ( on , e ' . - . 3 d
sa les technique that include recom . . The information was d1sse111m te
designed fo r spec1 "°
·n1c LLseS .a long with an inner 1.e cr= sed J_~ ,.,,..rcent m ,a l ·-~ r·
' · ,I f footwe-dr m ~- . ,·- , _
THE SOLlJITON: Li',TEGRATING BI WITH SOCIAL SOFTWARE us ing the RSS feed As a result, sa es u II be th·e inter.1ct1on throughout the com
• "'"k. w--k ·s are used to encourage co a Jra""'h~ or rec1ue>L'> for hdp and then
WI IS. " I I. J [O p05l hY1~u•~~• d
T he u;mpany cr<: ated a 111u!11runct1onal <: m pl oyee wo rkbenc h ca ll e d E-Basecamp. panv. Dashboard u;.ers are encournge<I st like a notepad along,ide the dashboar . d
E-Ba,;eca mp contain, a ll information rde,·ant to cr,rporate goals in tegrate d with pro duc- . · d u,gestion,. a mo. k -. -me The blog, are use
invite comme nta ry an su"" · d nt-cific data or a e) me · . cJ
tivity tr,,,!~ (cg Excel) ,ind role-ba sed content C11,tomi zed 10 each ind ividua l u,er. The , ted aroun 5 1·- 1
• Biogs. Blog<; ,-vere crea , Tooh :ire 11en 1 u,,,,d 10 ·arclm ·e. sea rc 1.. :m
system fa c il 11a1e, colbbo ration among interna l and external stakeholde rs E,\l S " ubing . r . and in\'ite comment. I ore manager< po;,t an 111qu1n or
to post in, o rmauon , _ f or exarnp e. >1
2r1 ,, pe ration me tric, (e g .. inn,ntmy le, ·<:b and turn,). TI1 eSt: metrics a l, o cover e-tailing. r ,,.. reference
c.negn ri,e blog, ,o r e-,1c.;

c . ,..,. It AP
 Business Intelligence
· g Trends 111
1 1 111
. I~ . l .·incl Emcrµ 1n
ratio n : lntegr:t11O1 P " cn1a11o n l nt1:gra1io n an d Emerging Trends
Business lntell,gence Imp cmen ·) K e i)ing comme nts o n biogs logies re late d to Bl. O the r e111erging lo • . . 233
rd 111 l. nrgets . e I · techno .• 4) use o f RFID (Section ll ) . cl p ies t1l,ll conclude this hook are o n-de mand
. . ··tie deviations ( ram · ked using cbta ana ysis alo ne . Bl (Secuo n · · ,in reality mining (Sectio n 12).
explanatio n rega g_s , . _ tJiey might have overloo _. Twitte r. The techno logy
lets reade rs observe p.itte 1ns . . )re,·alenI usmg .. . . ..
rn -? 009· microbloggmg .. l}-1.,;t.:d o n Ncv1lle , J , "Ef\,tS. Advcntun.·s 1n X-ln:me \Xt. > _
• Twitter. ~ bec.ime
b tionI ·ind 'I. )eecling up bu,;mess pt ocesses. 1
_ , ·•J:in. 20 10)
· ,,rce:,. amt from ems.com . 1
l: ) ... ·0 • 0/11tn1/:(e· Vol 6, No J·mu
· " ry ?(J()7 ' p J'3•
11 (:irct::--:-.t.:t
)V (acccs.scdJanuary ..'0t0) J -
facilita tes communicatio n ,u~d co a ~ ra ,; usiness partne rs were e ncourage d to
nd
• Social t1etwo,·k service. Employee::~ a n in forums a nd the use of the answer
. L.111kedln · •M•i• 1·o r uses were
.0 111
1functio participat,o ·c·itio n ·mcl collabo ratio n .
n. This tool encourages_ ex·ternal commu111 • ·

1 IMPLEMENTING Bl: AN OVERVIEW

PARTNERS EXTERNAllY
GOING TO BUSINESS . . . . I RSS feeds. Fo r e xample 11
st
Supp tem b y biogs, w 1kis, .me . • . . . Jle me nring 13! sy ems can be very complex. In additio n to typical issues in informa-
liers are connected to the Bl syS
O r a p roduct o n 1
ti e ch shboarcl and the n mv1te store
• _ . ln ~·yste m imple
11011 . . .t ·rn.
m. e ntatio , such
I • . as. conducting . appro priate cost-be nefit ana lysis with
suppliers can mo nitor the re turn rate how to reduce the re turn rate using 1
I
• .
. . ·md suggestions o n
•
. .111 wngihle variables to JUS l Y t e syste m and dealmg With resistan,e to cha nge, the re are
managers to provide exp anations' , . b ei insnllecl supplie rs ca n get data c·omJ) le x issues related to 1ntegrat1o n, security ' scalability of the S)'Ste
. 1 . 5•ecu my 11as e 1 · • ' some . · · m ' and ban-
wikis o r biogs. Assummg t iat prope i . d c rn IJre pa re bette r pro ductio n ·( 11111,,,
. " the construc tio n o l a data ware ho use, analytics, and dashboards.
. cl . II ·111 almost rea 1 tune •• 011 '
about how well their pro ucts se ' . I)· " 'itt the business partne r.
. k II sec1 extensive · " 1
plans. Also, Twitte r and Lm ·ec n are u.
• · ·. I ·11 tiglue rbo n w, 1
·d . ·' ti bti-iness IYirtne rs . For insta nce, by
• • • •
81 Implementations Factors
0

The
. ob1ect1ve
1 1
s to J UI c a
I" · d'.~shbo·1rc1s t11e s up1)ti· ers· c' m view curre nt sales tnl·or- I
attach mg a b og to supp ie rs th • bl· . ' p10 . duct managers use a wiki to post chal- A .,irg e number o f factors .mayI influe cl
nce Bl implementation.
f I These .facto rs are. techno
c
log-
.
matio n fa ndhpost comme nts to e ogs pe rcent·i~e increase in sales) a nd the n . . 1 administra tive, behav1o ra , a n so on. Many o t 1ese are gene nc to most 111,ormat1on
·t ason (such •1s a proposec1 · "'
le nges or t e ne x se · ·
ask vendors to suggest innovative ways to achieve_ t1iese . . go.i . Is.. Several
, o f the custome rs t~i'e,ms a nd h ave been research ed exte nsive ly in the informatio n syste ms lite ra'.ure .
·Accorc
y 1·111 g to Asif
• .
( 2009) • the fo llowmg
. are the ma1or facto rs tha t affect the clec1sio n-
a nd o ther business partners subscribe to the RSS teeds. (PLM) t I Tl . making process of Bl 1mple me ntat1o n.
· Bio s ·ire also e mbedclecl into Lhe EMS product lifecycle management · s
00 11
allows !en.clors to have virtual conversations w ith the product developme nt managers. 1. Repo rting and Analysis Tools
a . Features a nd functio na lity
RESULTS b . Scalability and cle ployability
c. Usability a nd manageability
The major impact of the BI/social software integration is that _conversatio ns take place o n
cl . Ability to custo mize applications
biogs, w ikis, and forums where all inte rested parties can pamc1pate . This s peeds up flow 2. Database
of information and increases participatio n. Both sales and profit margm a re o n a consta nt
increase. a . Sca lability a nd pe rforma nce
b . Manageability a nd availability
QUESTIONS FOR THE OPENING VIGNETTE c . Secu rity and customizatio n
cl. Ability to w rite back _ _
1. What was the o riginal BI syste m used for,
3. Extraction , Transformatio n , and Load (ETL) roots
2. Why was it be neficial to integrate it with social software? a . Ability to read any source
3, Diffe rentiate between inte rnal and exte rnal integratio ns in this case and the ir b . Efficie n cy and productivity
contributio ns to EMS. c. Cross platform s upport
4. What a re the be ne fits o f the integration to supplie rs? 4. Costs Involved
a. Hardwa re costs (actual or o pportunity) . . . 1cl fro nt encl)
WHAT WE CAN LEARN FROM THIS VIGNETfE b. Costs of softwa re (ETL, d atabase, apphcat1ons, , 11
c. Inte rnal develo pment coS ts
By integratio n of Bl a nd social software , EMS was successful in bolstering communicatio n cl. External d evelo pme nts COS ts
and collaboration bo th among its own managers and with its supplie rs. Such a n integra- e. Inte rna l tra ining
tion is referred to as collabo rative decisio n making (CD1vf; Sectio n 10). Socia l softw are is
f. Ongoing m aintenance
based on new computing paradigm known as Web 2.0 (Sections 7- 10) . Socia l softwa re
tools facilitate interna l and exte rnal communication and collaboratio n. This integration is 5. Be nefits fl' · -,·es
a . Time savin gs a n d opeia . tio 1nl
' e 1C1enc .
o ne e xample of w hat can be clone by integrating BI with othe r information techno logies
(Sections 2 and 3). Integratio n is o ne of the majo r issues e ncounte red during Bl imple- b . Lower cost o f operatio ns .f .
me ntatio n (Sectio n 2). Sectio n 5 clhcusses issues of lega lity, privacy, and e thics of c. Imp roved c usto me r servic . e a nd satJs action
.. dec, .
·sion 111ak111g
Bl practices. We list some tre nds a nd e me rg ing techno logies in Sectio n 6 whic h a re cl. Improved operat1o . na I ancI 5·trateg1
. .
c . and
· satisfanion
the n described in the re mainde r o f the chapter. \Veb 2.0 (Sectio n 7 ) soci~ I ne tworks e . Improved e mp Ioyee c ommunicat1ons
.
(Sectio ns H and 10) , a nd \"lrtual worlds (Section 9) are some of 'the c utting-edge f. Improved knowle dge s hanng . . . ,-•ly and qualitatively.
T hese facto rs n eed to be•.' 111al) ,zed both quant1t.1ll\ e
 Business Intelligence 1 1
mp en1emation I ,
. · nwgraiion and Emerging Trend.,
. 1E 11 ,,-ging Trends
13usine:,;.-. lntdltgi:ncc Imple111c-nt:1tion· lntl!gr:t11on anc. I c.-: ~ .._ cost Justification; 111ta11gible belle.fits WI11 1 . .
234 5• enefits, it is difficult to quantify their · · . e enterpnse systems provide tangible
s INTELLIGENCE IMPLEMENTATION Although 1J intangi1Jle benefits I d
CRITICAL SUCCESS FACTORS OF BUSIN~~f . LI e iniplenientation process of a RI syste;n, ,ith high energy costs, mongage crises . cl .. · · n a own-turned economy
1 ''
economic::tlly justified. · · • ,in pol1t1cal
' un re5t. IT mvestments
· must be
!here could be many faclors thal coulu ,I eel k. , J"· (http://en.wikipedia.org/wikif
f V d II"1 (J009) ·1s cited on W1 ipe( 1,1 ocumenti11g and securi11g support
a repor1 rom o apa - '· , , ?Q IO) shows that the following are the critical
Business intelligence. accessed J,1mia 1) - .
6. Oieir w n d ects1
. .
on support or BI modl11
systems Many e I
. ·
d I
mp oyees eve op
tl 0 es to mcrease the· d · ·
succes, fa~tors for ,1 business in1elligence imp!ementauon. inlity of their work. It is advisable to hav . ir pro uct!Vlty and the
q , . e an mven1orn of the · . d h
a. 13usiness driven me1hodology and projecl managemenl make certam that appropri-1te cl . ·, sea oc systems
:1nd . ' ocumen1at1on and sec ·ry . .·
. t if the e mployee 1s away or I, . . . un measures exist, so
b. Clear vision and planning . t I1,1 . . eaves tie1 orgarnzallon, 1he productivit tool
c. Commit1ed managemenl supporl and sponsorsl11p rem:iins. Takmg appropriate security measures is .1 . Ed y .
. · , 1· , • , · · • must. n users who build
d. Data managemenl and quality issues their 0 wn BI <1pp 1C,1t1ons .ire. not professioinl , S)'Ste ms b u1.1ders.. For this
. rea<on
e. Mapping 1he solu1ions to 1he user requirements there could be problems wnh data integrity ,and ti1e secunty of t11e systems • '
f. Performance considera1ions of the Bl system developed .
g. Robust and extensible framework 7. Etbict1l issues. BI an<l predictive analytics can lead to serious ethical issues
such as privacy and accountabil ity. In audition, mistakes can cause harm to oth-
Managerial Issues Related to Bl Implementation ers as well as the company. For example, a company developed a decision sup-
Many managerial issues are related to BI implementation. Illustrative topics are: port syste m (DSS) to help people compute the financial implications of early
re tirement. However, the D_SS developer did not include the ux implications,
I. System develop111e11t a11d the 11eedfor i11tegratio1i Developing an effective BI which resulted in incorrect retirement decisions. Another important ethical issue
application is complex. For 1his reason, most Bl vendors offer highly integrated is human judgment, which is frequen1ly a key facto, in decision making. Human
collections of applications. mcluding connec1ion to enterprise resource planning judgment may be subjective or corrupt, and therefore. it may lead to unethical
(ERP) and customer relationship management (CRM, see Section 3). Notable are
decisio n making. Companies should provide an ethical code for system builders.
Oracle. Business Objects. MicroStrategy. IBM, and Microsoft. Most BI vendors pro-
Also, the possibility of automating managers' jobs may lead 10 massive layoffs.
vide for application integration, usually Web enabled.
The re are ethical issues related to the implementation of expert sysrems and
2. Cost-benefit issues cmd justificatio11. Some BI solutions discussed in this book
othe r intelligent systems. The actions performed by an expert system can be
are veiy expensive and are justifiable only in large corporations. Smaller organizations
can make the solutions cost effective if they leverage existing databases rather than unethical, o r even illegal. For example. the expert system may advise you to do
create new ones. One solution is on-demand BI. Nevertheless a careful cost-benefit something that will hurt someone or will im·ade the privacy of certain individu-
analysis mus! be under1aken before any commitment to BI is made. als. An example is the behavior of robots and the possibility that the robots will
3. Legal issues a11d privacy. Bl analysis may suggest that a company send elec- not behave the w:iy that they were programmed to. There have been many
tronic or printed catalogs or promolions to only one age group or one gender. industrial accidents caused by robots that resulted in injuries and even deaths.
A man sued Victoria's Secret (a brand of Limiteclbrands) because his female neigh- The issue is, Should an organiza1ion employ productivity-saving devices that are
bor received a mail order catalog with deeply discounted items and he received not 100 percent safe> Another ethical issue is the use of knowledge extracted
only the regular catalog (the discount was actually given for volume purchasing). fro m people. The issue here is, Should a company compensate an employee
Set11ing discrimination charges can be veiy expensive. Some data mining may resuh whe n knowledge that he or she con1ributecl is used by others' This issue is rda1-
m the invasion of individual privacy. ed to the motivation issue. It is also related to privacy. Should people be m-
Whal will companies do to pro1ect individuals' \Xlhat can individuals do 10 formecl as to who contributed certain knowledge' A final ethical issue that needs
protect their privacy' These issues have 10 be kept in mind as BI solutions are to be addressed is th 1t of clehum:111iza1ion and the feeling thal a machine can be
· 1 · I I ·, t1·1ffµrent ·ntiludes toward smarl
implemented. More on this issue in Section 5. J ,
"smarter" than some peop e . Peop e m.1y 1a, e - ' . .· _
4. Bl mu/ BPM today a11d tomon·ow. The quality and timeliness of business infor- • h i·inn ·r in which they ,,ill work
machines, which may be re fl ec1ecI m t e n , e
mauo'.1 for a n organization is not the choice between profit and loss--it may be a
quesuon ot survival. No enterprise can deny the inevitable benefits of BI and 13PM.
together. . . 0f II Of BI
8. Bl Project Jail11res. There have been many cases ot fai lure, a typfes .
Recent mdustry analyst reports show 1hat in the coming years, millions of people . . f . ·I f- 11'lures ranging from human aclors to
projects. There are mult1ple re:1sons or sue 1 • ••
will use BPM dashboards and business analytics (BA) eve d E . .. '
ling more value f BI . . . . IY ay. nterpnses ,ue get- software glitches. Here are some examples:
rom 1JY extendmg mformat1on to many t . f I
maximizing the use of existin data asse . . . ._ . ' . ypes o emp oyees, . . . . , icr rise-wide business iniua1ives and that
. • b . g · ts. Yisuahzat1on tools mcluding dashboards a. Fa ilure to recognize BI pro1ecb ,i, en _P ·
,tre usec1 Y producers. re1ailers governme t . 1 • . .
analytical tools will flood ti ' , n ' anc special agencies. Industiy-specific they differ from typical stand-alone soluuons._ f r
le m.1r1,et to support analv .·. , I . c I I .. . . . ,- h the ·tbilily to insure unt mg
making from top level to u e.1 1 1 BI k ' , SIS ,inc in,onnec c ec1s1on b. Lack of husmess sponsors ~, il ' . . ,·rom ihe functional areas
' eve • ta es advam·1g, of · · · ess represcntauve.,
to help companies leverage their IT . · ' e ex1stmg IT technologies c. Lack of cooperation by IJus111 · . ·
, mvestments •md use th • I d I
data. Thus a pl,inned c ireful pro· ·t"1. ' · eir egacy an rea -time d. Lack of qualified and available sta ff . f "d·ny claia" on business profi1abili1y
·· ' ' · ac ' e approach lo BI implementation 1·s IJec·o1111·11g 'lti\'C 1111!),!Ct O 1
a compe1111ve necessity. e. No appreciation of tI1e neg,
f. Too much reliance on vendor,
 Business Imen·igence lmpl
nd ememation· lnte .
13ustnt>SS Intelligence lmpkmeniaiion: lnlegr.uion ;ind Emerging Tre s • Enabling real-time decisi · grauon and Emerging Trends
. . 011 support . 8
SECTION 1 REVIEW QUESTIONS
!O suppo rt decision making in a real-ti~e y havlllg tight integration, it is possible

1. What are the major types of 81 implementation inlluencing factors'

tion system that
. uses wireless co rnrnunication d . An example
. environment. · 1•s a transporta-
• E11abli11g mme powerful applications. an . Web ser\'ices to foster data fl ow.
2. List some factors rebted to tools and databases. co provide rea l-tune ca pabilities. An example 1s using intelligent systems
3. List some of the mamgerial issues . • Facilitating system develohment . . ·
1 Y Tighter inte
· •
4. What are some of the critical success factors in Bl projects deve lopm e nt an d communication a gration allo\\·s faster application
t
• E11ha11cing support activities rnong syS em cornponenL, .
· 5e\ era! suppo 11 • .-
tio ns of Bl a pplications. For exarnpl bl acuv,i,es can irnprm·e the opera-
2 Bl AND INTEGRATION IMPLEMENTATION communicatio n and collaboration sue , ~g:- Twmer,_ wikis. and RSS feeds provide
. . PP0 s sho\\•n Ill the opening v1gnene.
Integrating information systems is widely practiced in enterprises, increasing the e ffici e ncy
BI 111tegrat1on may also result in enhanc d b' .. th
and/ o r effecti\·eness of the tasks supported. Implement ing BI almost :tlways requires one wise Fo r strategies fo r successful integration :ee~a,pa ilitihes at are not poss ible other-
1' orgent al (2005)
or several integration steps. Hmve\·e r. integra tion is not simple . as described in this sectio n • • • •

and the following section. Levels of Bl Integration

fu nctio nal
. integratio n , disc
. . ussed previously. · can be consi'de reel at m.o dif"1erent 1e\·e 1s:
Types of Integration
across different BI a nd \\:1th m BL _Integration of BI at these levels is appropriate for systems
Computer-based systems ca n be integrated so that the constituent parts of the system func- that ca n be used to solve repet1t1ve and/ or sequential decision problems. BI can also be
tion a~ one entity . as opposed to each be ing used sepamtely. Integratio n ca;1 be at the used to facilitate integration by assisting in the transformation of the outputs of one S\'Stem
development level or at the appl ication system level (knmvn as applicatio11 i11tegratio11, as inpu ts to a n o the r system. Combining several ana lnics. each addressing a specific
our mam area of interest). Integration has been considered a top issue of impo nance for portion o f a complex decision problem, is an example of integration across BL For exam-
years (Spa ngler. 2005). There are se\·eral types of integration: integration of data . applica- pl e. a BA mo del for suppo ning marketing-campaign decisi ons can be combined \Yith
tions, methods. and processes. Integra tion can also he \'iewed from two other characteris- a productio n-planning supply chain improvement model , with cenain outputs of the first
tics: functional and physical.
system as th e inputs to the second system .
Functional integration implies that different applications are provided as a single The second le\'el of integration refers to the integration of se,·eral appropriate BI
system . For example. \Yorking w ith e-mail. using a spreadsheet, communi cating with
technologies in building a specific complex BI system. especially to take ad,·antage of the
external databases , creating graphica l representations, and storing and manipulating data
strengths of the specific technologies.
can all be accomplished at the same \Yorkstation . Simil arly. \',o rking w ith a bus iness
ana lytics tool and a dashboard is done from one interface. \\'ith one menu , resulting in
one output. Embedded Intelligent Systems
Physical integration refers to packaging the hard\\·are. software , and communica- Over the p ast few years \\·e have seen an increased number of systems that include
ti on features _req uired. to accomplish functiona l integration. The discussion in this chapter embedded intelligent components for conducting analysis. In such systems. the intelligent
dea ls pnmanly with tunctional-application integration. which ca n be done in two ways: part (e.g .. an intelligent agent) is nontransparent to the u,er. and 11 may e,·en work in
real-time e nvironment. The automated decision systems (ADS) are of th is type.
• lntegranon of _t\\'O or more clecision-suppon applications, creating a unified application
There is an increasing trend to embed intell igent systems in large or complex l:ll sys-
• Integration of one or more Bl tools w ith other information systems such as biogs,
knowledge management. databases, or a financial system. tems , as in the following examples:
• Computer telephony integration at '•intelligent'' caH centers to select and assign a
. _Integration can ocrnr \,·ithin a compa ny (in ternal integration) or between systems
of d1tferent companies ( extema/ i11tegrat1011). human agent fo r handling a specific customer call m real ume . .,_
• Real-time decision making built around online_tram.acuon proces~ng (O_LTP) s\ .
terns su ch as in collaborative planning. forecasting. and_replems ment in ,upp y
Why Integrate? .' ) d I-time scheduling dec1s1on support
cha m management (SCi\ l • an rea cl . with built-in intelligent agent,
There are se,·era l 111ajor objectives for Bl sofrware integration : . ent planning an ana 1vs1s.
• Suppo n of strategic managem d ~anagement to ,uppon colbbora·
BI. . . For
• Inte llige nt agents fo r process enhancements an
• Impleme11ti11g
I· . . . _ lll ·systems
·· · t0 oper,ne
, . tI1ey usually need to be connected
to c1t.1 sources. u1iln1es. other applicatio ns 'llld _ S . tive decision-making
accompli shed effecti\·ely ,111 d effil'ientlv. · • so on. • uch connections must be
• h1creasi11g the capabilities of t/Je BI app/" 110115 . SECTION 2 REVIEW QUESTIONS
tools 111c1v complement each other. E·i ·I t _,ca • Several 131 deve lopme nt
1 001 1. List se\'e ral types of integ,Jtion.
hest. For exa mi)k 13'\ C' lll ., ' l performs the subtasks at which it is the
. . . 11e usu1 to recommend ., . , . . . 2. Describe the need fo r Bl integration.
pi:Jn . and an att adiecl d'ishbo, ·d . . · n Opllmal 1esource-a ll ocauo n
•• .11 c.1 11 pro\·1cle the I . . . .
n1:1n:1gement to de\·i:nions from the I· Tl . contra syste m that \\'di alert 3. List the levels o f integration.
. . P an. 1e open111g via t d _ I . 4 . . . f Bl with non-Bl systems. .
soua l ., olt\\'are made the Ill
· ,,·stcrii
·.· \\ .or 1,; !Ilg
·
1)etter.
• ,.ne te emonstrated HJ\, . Describe mtegrauon ° .
d describe their benef1b .
S. Define embedded intelligent sySlems an ·
 Business Intelligence 1
rnp 1ementation: Im , .
· an d En1eoon~
~ ~
Trends . egrat1on and Emerging T d
Business lntellig,mce Implement:Jtion, lnteyr.iuon
,~e ·
. b p·toes0
se·s
that
response
can issue
to the
queries
query_
to a
'
b
Second
k
ac ·end datab
· ase (1.e .. relational) and
ren s
_
3 CONNECTING Bl SYSTEMS TO DATABASES AND OTHER d3tcl I1 •3 .· ·r- · . a number of _ . . ' proces, t11e
-1,·:1il:1ble that s1mph .' the task of integrating a BI ·1 1· ,pec1ahz_ed application serYers are
ENTERPRISE SYSTEMS
d·tt~b3ses . Among these specialized sel\'ers BE.-1. ·l~p _teat1? n ,;nth one or more back-end
BI applications. especiJ.llY brge o nes. need to be connected to other info;1a~on s,·stems. · \,et leader ( now part of Oracle). · c. s \\ebLogic SetYer <beacom) is :i
The major integratio n areas discussed in this sectio n are connecting to ara ases and to in3r dd. . .
111 a lll0 n to connecung to back-end d b
back-end systems. .h . f ata ases mani· BI I .
. ration wtt a Yanety o other SYstems-ERP · ' app 1ca11ons also require
1ntel( 1 . · · CR.\! knowled
. management . e ectromc data interchang d · ge management. supplv
Connecting to Databases ch31 0 • e. an other appl · bo . . ·
•de rhe company . Such integration ca n b h di . icauons. th 1ns1de and
outs1 . . e an ed wnh -1 cl· f F
\ "irrually eYery BI application requires database o r data warehouse (or data man) access . ,reiprise applica/1011 111tegratio11 (EAJj_ This software f ' ass o so rware called
For example. when BI analyzes customer orders. the products· description . inventory e1 TIBCO (tibco.com). ,;vebMethods ( fu\ ocuses on the mtegra11on of large
systems._ ) .. so •areag.com). and \YebSphere Imer(h:mge
count. and order information :ire likeh· ro be found in the data warehouse. A BI applica- Sen·er (trolll IB\I are ex.unp1es of companies that haYe off . . th
tion can be connected ro a database ~ a Yariel\· of ways. Today, most of these connec- .. . . h · . . enngs m e L\.I arena.
someumes. t e mtegrauon requ1res redesign of
tions are accomplished , ·ia a 11111/titiered applic~lion arcbitect11re like the one shown in ( processes. For example .
scerngold C0 :P· st erngo1d.com) needed to integrate its ordering system with the
Figure 2. This architecture has four tiers,
bac, k offi ce ( 1.e .. o.rder. fulf1llment. , 1m·entorv. . accounting . p"vnient)
.. . . Th e mtegrauon
. .
1. A Web browser where data and information are presented to and data are collected required :1 study o l e x1st mg processes and redesign of the processes that needed to be
from the end users . altered .
2. A \\-eb serYer char deliYers \\"eb pages. collec!S the data sent by the end users , and An important integratio n for large BI systems is the one with ERP.
passes data 10 and from the application sen ·er.
3. An applicatio n sen·er that executes business rules (e.g. , user authorization), formu- INTEGRATING Bl AND ERP FOR IMPROVED DECISION SUPPORT For mam· Years. ERP
lates database queries based on the data passed by the \Xieb sen ·er, sends the platforms had only tran_sactio_n -processing_capabilities and some basic ca pabilities.
queries 10 the back-end database (or data warehouse o r mart), manipulates and including s imple reportmg. sin1ple analysis and item classification by profitabilil\·.
formats the data resulting from the quetv. and sends the forma1ted response 10 turno ver. and customer sa tisfaction. Sophisticated reponing and analysis came from
the \\eb sen ·er. stand-alone BI system . Ho,;,.·eyer. companies haYe recognized that people execute
4. :\ database (data warehouse or mart) sen·er in which the data are stored and man- processes be1ter if they ca n perform an analysis o r access business intelligence in re-JI
aged and users· requests are processed. time in the context of the application thev are working on. Therefore. ERP ,·endors haYe
been building business analitics into their platforms so that users don·t ha,·e to switch.
Integrating Bl Applications and Back-End Systems This mav res ult in a significant impro,·ement in the quality of decision making . For
exampl~. at the moment a sa lesman rakes an order. Bl provides all the info rmation
Se,·eral technologies can be used 10 integrate a BI application directly with a back-end
application. This is the case. for example. where there is only one data mart (e.g., market- needed 10 decide if and ho,;,.· much credit to be offered to the customer. ..
The ERP BI combinations are most commonly applied to financial demions :_
ing). bur connections are needed 10 an inventory or other back-end application or data-
bases. '.\!any of the commercial Bl suites ha,·e built-in integration capabilities. If a company howeYer. companies are starting to apph· them to marketing. HR. and various areas of
wants to build its own database interface. a couple of options are available. First, all the manufacturing. . f . ··te 111 .
\\-eb scripting languages (e.g .. PHP. JSP. :\ah·e Sen·er Pages [ASPD have commands that High-level anah·sis requires bringing together data from •1 ,·anery O s,' >.
· l f · execution s,·stems customer
simplify the process. Specifically. these scripting languages enable a programmer 10 build including supplv chain management (SOI . manu acrunng · . : .
relationship ma~agement (CRi\l) and product lifecycle manag_emem (PLM) . By planning.
.
forecasting and smmlatmg . scenanos.. bener dec°sion 1 n1Jk1ng 1s possible.
. . . .

I
' . . . . . . . -,·stems still requires a maJOr m, e,tmen1
Web Browser Web Applicalion Database However, ught mtegrauon bemeen ,anou, >. . d depending on the size of

1-1
Server Server Servers . . . Id k nchs or eYen vears . ,m
of ume. Full mtegratton cou ta e mo . d. -l). of its data can be tricky.
. f . . erauons an t1ie qua1i
the o rganization , the complexity o ns op k th·ii the sr ncax and semantics of

•e. -,, --~,

hb rds nn ·e sure , .
System builders need to set up da 5 oa · · lean and consistent between the
Netscape API
d h k (]lat the daia are c ·
the data work together. an c ec ·
" ~ CGI E different applicatio ns. . . not be a project with a fin ite timeline
Note that funhermo re . Bl ERP 1·ntegr:lllOn
· Illa)
. . the svstem or make adc1·it1ona · I
. . . · want IO opt1mize ·
since it is ever expanding. Lsers ma)
data types aYailable to more users.
Browse data source . Gateway and Brokers request Data repository
make transactions document delivery between client
and database Middleware iaksis find 1nfnrm:nion. or
. w·ho need to conduct an a1 . . .
FIGURE 2 Multitiered Application Architecture.
To access a data w·arehouse . u,ers k ·n as ,111ddle11 an'.
perform data risualization use sofrwa re ·now ·
 . d Emerging Trends Business Intelligence Im I . .
. · n· Integrauon an P ememat1on: Intcgrat,on and Emerging Trend,
llusincss Intelligence lmplemenc,iuo · . •d BI b · .
b ·1ding enterprise-wt e y mtegra11ng The Limitations of Traditional Bl
Companies and organizations are now u1.th new developments. BI applications
• . together w1 bl' I Bl solutions may initially have a negative ret .
previously independent applicauons I . rtners' systems or to pu IC exc 1anges. Bl . lementatio n fees, per-user licens f urn on inveStment (ROI) Reasons include high
also must be connected to items such as t 1e pa pplications through a variety of devices unP e ees, maintenance and
·dd n costs that accumulate over th l'f f
I· , ·
consu ung ,ees, extensive
.I t and mtranet a . I .d ,
users need to interact wit 1 lnterne an an increasmg Y wt e range. In all h1 ·e·t·al program goals and ob· 1· e I elo the BI project, and the inability to deliver on
• • d formance figures sp · d. t f the 1n1 1 Jee 1ves Aso tradit' 1 . 1
whose charactenst1cs an per . . rotocols and mterme 1a e so tware that n able to deliver a unified re orti~ ' iona . m- 1ouse BI vendors have seldom
. . e commumcauon P .
such siruations, apphcauons us f the following funcuons: bee . 1 . h . P g and analysis solution that allows executives to
reside on top of the operating systems to per orm spond tn rea ume to c angmg conditions I dd . .
re. . d h h · n a 1110n, the Bl solutions remain prohibi-
plication is usually made up of many tively expens~~e, an t ey ave had long implementation periods-typically 18 months or
• Hiding distribution (i.e., the fact .that andapl ·ttions) er-requmng extensive allocation of I bl
. d n· ng in d1stnbutc oc, . long va ua e IT resources over the life of the project.
mterconnecte parts run 1 . rdware components, operating systems
• Hiding the heterogeneity of the various 113 ' ' f1na , open-ended
. lly . contracts leave businesses uncIear about when the implementation
period will end.
·md communication protocols . • d I
' . . . d d h. h-level interfaces to the app11ca11on eve opers and
• Prov1dmg uniform, stan ar • ig . d reused ported and 1 d
. ·
integrators so that appI1ca11ons can IJe eas1lu
· , compose . • ,, t 1a e
The on-demand Alternative
to interoperate · I
• Supplying a set of common ser\'ices to perform various genera -purpose
Therefore, companies, especially small to medium-sized enterprises (SMEs) are turning to
·
func11ons to avo1·d d up 1·Ka 11·ng efforts ·and to facilitate collaborat1on between the on-demand BI model as a cost-effective alternative to overly complex and expensive
applications analytic reporting solutions. On-demand computing, also known as utility computing
The intermediate software layers have the generic name of middleware. Middleware or software as a service (SaaS), is described below.
essentially provides a separate program to be the interface between diverse client and Software as a service (SaaS) is a model of deployment whereby a sofrware or
seiver systems. Its main function is to mediate interaction between the parts of an applica- other compute r resources are made available when needed. It is like electricity or
tion or between applications. (For more information, see middleware.objectweb.org and water. You use them when needed and pay only for what you use. Thus, the concept
en.wlkipedia.org/wlki/middleware.) is also referred to as utility computing. So the users do not need to own any hardware ,
IBM is the leading provider of middleware software. It offers a number of on-demand software , and other facilities. nor to maintain them. Delivery is done by a provider
solutions for communication, government, retail, banking, financial markets, and many who licenses an application to customers for use as a service on demand. Saas soft-
other industries. IBM Middleware (ibnLcom/middleware) helps automate systems, inte- ware vendors may host the application on their own Web servers or download the
grate operations, connect people, and develop software. Oracle is another company that application to the consumer device. disabling it after use or after the on-demand con-
provides middleware software and seivices. tract expires. The on-demand function may be handled internally to share license,
Oracle Fusion Middleware (OFM, also known as Fusion Middleware) consists of a within a firm or by a third-party application service provider (ASP) sharing licenses
portfolio of software products from Oracle Corporation. OFM spans multiple services: J2EE among many firms . All the users need is an Internet access and a browser. Paymem
and developer tools, integration services, business intelligence, collaboration, and content is made on an actual-use basis or through a fixed subscription fee (for a given number
management. OFM depends on open standards such as BPEL, SOAP, XML, and JMS. of users).
Oracle Fusion Middleware provides software for the development, deployment,
and management of seivice-oriented architecture (SOA). It includes what Oracle calls
'·hot-pluggable" architecture, which allows users to make better use of existing applica- KEY CHARACTERISTICS AND BENEFITS Characteristics and benefits of SaaS include:
tions and systems from other software vendors such as IBM, Microsoft, and SAP AG . For
details. see en.wikipedia/oracle-fusion-middleware. • Ability to handle fluctuating demand, even at peak time (a requ irement of any
adaptive e nterprise)
SECTION 3 REVIEW QUESTIONS
• Reduced investment in setver hardware or shift of server use
1. Describe the basic elements of a multitiered application architecture. • Network-based access to, and management of, commercially :1vailable software
2· LiSt the ways in which a Management Support System (MSS) application can be • Activities managed from centrJI locations rather than at each customer's site. enabling
connected to back-end databases and other transaction-processing systems. customers to access applications remotely via the Web . . .
3. What are the benefits of BI/ERP integration? • Application delivery typically closer to a one-to-many model (single instance, multi-
tenant architecture) than to a one-to-one model, including architecture, pnc1ng,
4. Define middleware and describe its attributes.
partnering and management characteristic, .
· · feature upd ating.
• Centralized · w h'ICh obviate~ 1he need for end user, to download
4 ON-DEMAND Bl
patches and upgrades . . f . .· I , . • ,
. . I twork of cornrnunicalm~ so t\\'are. ell 1er .is p,1n
Bl initiatives are somewhat capital intensive . . • Frequent integrauon into a arger ne
above. As of now Bl has beco ff ' as can be mferred from the discussion of a mashup or as a plug-in to a platform . . .·
• me more a ordable eve ~ II . ' I • ftware liceme fet:s. but :ire a1su n:curnng.
prises due to availability of on-demand 81 services ' . n or sma and medium enter- • F ·nitially than trac11ttona
· · J so ' .
ees are ower 1 . , . < ·r\'ice much like 111ain1c·n:1nrc- ke,
on-demand Bl in this section. · We introduce key concepts related to and therefore viewed as more predicta11 1 e ·'' 3 · c ·
for licensed software.
242 . and Emerging Trends Business Intelligence Imp! .
Business Intelligence Implementation: lntegrauon '
ememation: Integration and Emerging Trends
-1 · I lo ng run mav. 1)e 111•gher or lower or even the same as in THE LIMITATIONS OF ON-DEMAND Bl The following . .
1
• 1 1e tota cost. in l 1e . ' . ·. fees Howe\·er, in the sho rt run, it is much on-demand Bl: are some ma1or limitations of
purchasing software or pay111g hcense ·
1 , Integratio n of vendors' software with com a ,
lowe r to use Saas. . . there is frequently no marginal cost for
• More feature requests from users 5 mce 2 The vendor can go out of business . P ny s software may be difficult.
• . . , 1eavmg the compa ·h .
requesting new features . ntire community o f users be nefits fro 3. It is difficult or even impossible to m0 d'fy
1
h ny wit out a servtee.
• Faster releases of new features s111ce the e m users ' needs. t
OS ecl software for better fit with the

new functionality ·• f · 4, Upgrading may become a problem.

.
• The embodiment o f recognize
· d best• practices since the commumty o users dnves a 5. You may relinquish strategic data to strangers.
software publisher to support the best practice. . . ,. ,
• The develo pment of SaaS applications may use vanous type~ o f s~ft'\\ are compo-
SECTION 4 REVIEW QUESTIONS
nents and frameworks. These tools can reduce the tune to ma rket ,tnd the cost of
converting a traditional o n-premise software product or building and de ploying a 1 , What is o n-demand BP
new Saas solution. 2. What a re its major benefits?
• Much like any other software, software as a service can also take advantage of
Service Oriented Architecture to enable software applicatio ns to communicate with 3 , What are the limitations of on-demand systems?
each other. Each software service can also act as a service requester. inco rporating
data and functio nality from other services. Enterprise Resource Planning (ERP) soft- 5 ISSUES OF LEGALITY, PRIVACY, AND ETHICS
ware providers leverage SOA in building their Saas offerings; an example is SAP
Business ByDesign fro m SAP AG . Several important legal, privacy, and ethical issues are related to Bl implementation Here
we provide only representative examples and some sources.
O n-demand Bl gives SMEs exactly what they are asking for in today's fast-paced
competitive markets: an easy-to-use, quick-to-deploy, and reasonably priced solution. Legal Issues
The o n-demand model offe rs a low-risk opportunity for e nte rprises to utilize BI without
drowning in the overheads of a large. expensive. and risky project. As more SMEs expe- The introduction of BI and especially of automated recommendations may compound a
rience positive ROI and success using an o n-demand BI model, it can be expected that host of legal issues already relevant to computer systems. For example, questions con-
even brge corporatio ns will adopt the model. An example of such a n application is pro- cerning liability for the actio ns of advice provided by intelligent machines are just begin-
vided in Applicatio n Case 1. ning to be considered. Another example of an issue is the use of computenzed analysis
as a form of unfair competition in business (e.g., in the 1990s, there ~as a well-known
dispute over the practices of airline reservation system using computenzed pncmg). .
In addition to resolving disputes about the unexpected and possibly dama_gmg
Application Case 1 results of some BI systems, other complex issues may surface. For_example, _who _is liable
if an enterprise finds itself bankrupt as a result of using the advKe of an mtelhgent Bl
Retailer Employs On-Demand Bl analysis? Will the enterprise itself be held responsible for_ not testmg the Bl system ade-
Casual Male Retail Group is a specialty retailer of big quately before entrusting it with sensitive data' Will aud1tmg and accountmg firms shar~
began using :m on-demand l:ll tool from the vendor
and tall men 's appa rel \\ ith 520 retai l o utlets :in cl the liability for failing to apply adequate auditing tests? Will the software developers o
Oco, which takes all of Casual Male 's d,ta, builds and
e-commcrn.: operations and close to $~00 millio n systems be jo intly liable? Consider the following specific issues: .
maintains a data wareho use for iLs offsite . and creates
in scdes in 2009. The company was usmg a legacy . . 111
. court wIien the expertise is e ncoded m a
"responsive," real-time re poning dashboards that • What is the value of an expert opmton
on-premise re po ning apr,l ic:nion for its catalog
enable users to have information at their fingertips.
operation, l:lu1 the re poning feat ures buil1 into th~ BI analytical system? . . ) ·c1ecl by an automated BJ? For
With the on-demand l3I , merchandise planners and • Who is liable for wrong advice (or mformau~n . p~ov,ect diagnosis made by a com-
svstem \\'en;;' extremdy poo r. \\'ith liule \'isihility into
the business. Fo r example . informatio n ma nager, buyers have access to easy-to-consume dashboa rds example, what happens if a manager accepts_ane mmcpo;t on employees'
chock-full of catalog data. This enab les users to know d · -·ons that have a negauv I d
did not kno "' 111 rea l time wh:11 thev "c·re selling puter ancl ma k es ec1s1 . ·udgment value into a BI system an
and for \\'hat profit. with cen.1 in , ryle~ by size. ' exac tly \\'hat styles are selling at any given time at • What happens if a manager enters an mcorrect I . ,
each sto re by size. Also. they know how much inven- ople and/ or compames.
The com1x1nr used traditional Ill that provided the result is a large damage to pe d base'
un:icceptable repons (" hid1 larked li.:,1tu1\·s such :.is tory is a\·atl:1ble and where there is a shortage. • Who owns the knowledge in a Bl knowIe ge .,
L'Xceptio n re r ortmg). l l."11..:r... ,n:m tu 1he prinll.:r for • Can management force manager to use BI systems.
11
hundreds of page printouts. lnten:stingly, the old sys- So rce., Compill:'d from \'X'ailgurn. T. , "Businc~~ In1ell1gcncc..· and
· . es 10 consider:
Here are some other issu
On•Dl·t11;1nd . Th1..· Pc..·rfen .\l:1m:1ge?' C/0 Magr.1:::im;. 2008, at
tem contained all the needed info rmation. However.
www .cio.com/ article/ 206551 / Busincss Intclllgcncc
the u,<:r just didn't have :111 intuiti,·c and eaw way 10 and __on_Dcmand_The_Perfect_Marriage_ (~KLt.'!'>.... ed 20 JO ~
get :1t the catak,g business's saJ.,s :111cl invento.,y tr;nd., 1 Privacy ene,:tl , privacy i, the right to be
:d~ ce . cio . c~m / thoma s _ wailgu m / do n t _ ma k e _
.
Privacy means different th ll1gs
to different people.
nableInpersonal
g . .· . p n·v-iC)'
rntrnsions. : has long
. d
in real time. The .,itu:111o n changed ll'hen Casual 1\ lale us m ess_ intelligence_suck_for_uscrs (acct..•~!>t.:d .2(1 1()), and
~ualmalc.com f au..:t..·ssc..•d 20 I U) le ft alone and the right to be free from unrea~~o:mtries. The right 10 privacy is recognize
· J issue
been a legal, ethical, and soCta · 111 man)
 Business Intelligence
. . . . lntegr.,. tion and Emerging Trends 1mplementation-.
Busmess Intelligence I111ple111ema11on.
_ other countries, either by statute or by
------~=-:;~~-;_:-;-_-;__
:- --::--------= lntegratio . d
nan Emerging Trends
today in eve ry state of the United ~tates a nd many cl quite broadly. However the ~ol "Unfolding" to contr0 I ---;;i;;;-~:_:_:_:_:_:_:::::::::::::::=:------,
expansion
.. .1 . , can be 111terprete ' -
°
common law. The definu,on p,wac_, .' ·el in ast court decisions: (1) The right of
lowing two rules have been followed fairly do~ yd p . t ti e needs of society. (2) Th
prh·ac)' is not absolute. Privacy must be balance agams 1. e
0 Stakeholder
expansion
I
0 0
Problem
·--::l::--y-pi-ca_l__ formulation
public's right to know is supenor. to the 111c
· 1tVt
· ·d ua I's right to pnvacy.. T11ese Itwo
. rues
1 show
. Typical problem expansion
why it is 'difficult . in some cases, to determine· .,111 d enforce pnvacy. regu atio.ns.. Pnvacy problem formulation
lntegrabon of
· · - and po rc·es
issues o nline have their own charactenst1cs 1 1 - · For 1Jnvacy and security issues. in forrnulat1on moral Problem
(TOP C
[T. 0.P. intensity definiUon
.
the data warehouse envtronment, see E1-son .,meI Le•Clerc (?005).
- One area where 1mvacy perspectives) onversat,on
components
perspectives]
may be jeopardized is discussed next.

COLLECTING INFORMATION ABOUT INDIVIDUALS Implementing 131 may requ ire data
0 0 0
about individual employees. The complexity of collecting. sorti ng, filing. and accessing
information manually from numerous sources ( public and/ or compa111es) was, 111 many
cases, a built-in protection against misuse of private information. It was s imply too expen-
0 = Stakeholder

sive. cumbersome, and complex to invade a person's privacy. The Inte rnet. in combina-
FIGURE 3 A Model of Ethical Problem Formulation.
tion with large-scale databases, a data warehouse. and socb l networks, has created an
e ntirely new dimension of accessing and using personal data. The inherent power in
systems that can access vast amounts of data can be used for the good of a company or Ioc.lt·, ons· ' and from PDAs transmitting information •1t \Xii F,· 11otspots s I b
. ' - . uc 1 cIata can e
society. For example , by matching records with the aid of a computer, it is possible to used in 131 analysis, for exam~le._Sense Networks claims that the company is extremely
e liminate or reduce fraud. crime, corporate mismanagement, and so on. Howeve r, w hat careful and protective o f users pnvacy.
price must the ind ividual pay in terms of loss of privacy so that the company ca n better
fight fraud' Private information about employees may aid in better decision making, but Ethics in Decision Making and Support
the employees· privac)' may be affected. Similar issues are re lated to information about
customers. several ethical issues a re related to Bl and computerized decision suppon. A comprehensive
overview of e thics in problem formulation and decision making is provided by Chae et al.
(2005), who suggested the model of ethical problem formulation that is shown in Figure 3.
THE WEB AND INFORMATION COLLECTION The Internet offers a number of opponunities
Re presentative ethical issues that could be of interest in Bl implementations include
to collect private information about individuals. Here are some of the ways it can be do ne:
the following:
• By reading an individual's social network profile and postings
• Electronic surveillance
• Ry looking up an individual's name and identity in an Internet directory
• Ethics in BI design
• By reading an indi,·idual's e-mails. biogs. or discussion boards postings
• Ay wiretapping employees' wireline and wire less communication • Invasion of individuals' privacy
• By conducting surveillance on employees • Use of proprietary databases
• By asking an individual to complete Web site registration • Use of intellectual property such as knowledge and expertise
• l:ly recording an individual's actions as he or she navigates the Web w ith a browser, • Accu racy of data, information, and knowledge
using cookies or sp)'ware • Accessibility to informatio n
• Use of corporate computers for non-work-related purposes
. Single-sign-on facilities that let a user access various services from a provider are • How much decisio n making to delegate to computers
beg,nmng to raise some of the same concerns as cookies. Inte rnet services (such as
Google ,_Yahoo', and MSN) let consume rs permanently enter a profile of informatio n ·
Pe rsonal values consrnure a m:1Jo· r facto1
· · m tI1e issue
· , of ethinl , . BI_ and decision
. .
a
:il~ng with p:tssword an~ use this information and password repeatedly to access servi-
(e._.n multiple sites. Cnt1cs sa)' that such services create the same opponunities as cookies
.
making. The study of ethical issues . Ill 1s
m • compIex. beca, 11·se of its· mult1dunens10nality
(Chae et al. , 2005). Therefore , it makes sense to dewIop fr,.111ieworks• to descnbe .
. . _
etlucs
. .
to 1m·ade an 1ndiviclual's privacy. _) . d how technology and mnmat,on
processes and systems. Mason et al. 0 99) exp1ame f .. I e·isoning that
. discuss a moc1e1 or et 111c,1 r ,
_ . The us~ of data " ·arehousing and mining technologies in BI analysis as we ll as in expand the size o f the domain o f etIiics ant1
L

· .· , , , WI 'It action was actu-

the ,1dm1111st1 .n1on and enforcement of corponte laws •me! e I · · . - , . f ons· Who 1s t 11e ,,gent. 1•
p ies' concern re ardin , J . , . . . · .' · ' r gu anons may mcrease peo- mvo 1ves lour funda menta1 ,ocusmg ques 1 · · . s·ciuences of the act' Is
·,1IJI.,1t1es
. . _ of_. dat:1 m1111ng
g . . g ·111d
I m bus·n
acy of ··111format1on. 1hese fears, gene rated by the JJerceived II k . . 1 d' Wh·u -,re the resu1ts or con e ,
1 , J · · a y ta en or 1s be mg contemp ate · • ' . . . , 1 .1 Ji,·er"rchy or ethical rea-
. d -· Tl1 , ·dso (esrn 1 1xc' "
a Imost_ .my . , •
BI development · ess
effort . .111a yt1cs, will have to be addressed at the o utset of the result lair and just for all stakehol ers! e_y' ·.. , , rult:., and codes of ethics,
. I. d t or ·1ct1on is 1,,,sec1 or1
somng in which each ethica JU gmen · . ., . ethical theory. For more on
w I11.ch are based on pnnc1 ..11 111 turn are grounuet1111
. . ples, w h IC
MOBILE USER PRIVACY Many users ·ire una\\"t . f I . .
through mobile iJersonal cJ,·g·t· 1 . .' .·_ (' ' ie O tie pnvate information being tracked ethics in d ecision making, see Murali (2004).
, - · , 1,1 ,ISS1'tant PDA) or cell Ji
:"iet\Yorks' models are built using d·1t·1 f .· I ione use. For example. Sense T Em , !oyecs are tcmptl'd to use e~1'.1:1iL
- t .• · rom t·ce11 phone co 111p.tnies
as it mo, ·es from o ne cell tower . · tl1at trac k· each p ho ne NON-WORK-RELATED USE OF THE INTERNE I . , . In some rnmpanu:s. this use
0 1 k-rebted purpose,. . . I
.inor ie r, rom GPS-enablecl de,·ices that tr.insmit users' e-comme rce sites and so on for non-wor k ·I· ·d 11 ,es (Anandarapn. 2UU2l Tie
.is tre mendo usly out
' . ··th
o f proportion "' 1 the wor -re ,11c .
 Business Intelligence Im I .
. fmerging TrcndE
. , tJtton: Inregr.rno n Jnd , p ernentation: Integration and Emerging Trend~
Business lmelhgence lmplcmen . c in be used to ha rass other greater collaboration among Inte
le e -mat1 • d the rnet user, and h
terprises. As an umbrella term for an ot er users. content providers, and
problem has se,·era I d 111 . ie nsions. For examp panv It c.tn ·•tlso
· ., - be used to con uct illegal en . emerging co f
. Jes Web 2.0 1s not o nly changing wh . re o technologies. !rends, and prin-
em lo ees. This poses a legal threat to :t co1: fo~tb:111 game) . Some employees may Use c1p ' at L, on the w b b
ga!bling activity (e.g .. betting on _results ~~;t their own businesses. La_st ~ut not least is ncepts have led to the evolution of Web-b . e ut also how it works. \X'eb 2.0
co h _ . ased Vu-tual c .. . .
. ·1 t0 ·ad,·eruse or services, s ue as soc1a 1 networking Siles. video-s . . ommurut1es and their hostmg
corpor.He e-m.11 _ e, non-\\·ork-rehtte
en con d ..,.
"e b sites d unng ,, o rkmg ho urs and
the time employees waste surttng (Tlpanies that unde rstand these new . · h_a nng Sites. and more . .\!any belie,·e that
co - app11cat1ons d h ·
interacting in social networks ~bilities early o n-sta nd to greatly . an tee nolog1es- and applv the
caP" ' improve int II • ·
. , .no ng the b iggest advantages 1·5 b erna )usmess processes and market-
ing. "'" · · eiter collabo t· h
SECTION 5 REVIEW QUESTIONS supplie rs , as well a, a mo ng inte rnal users. ra ion Wt! customers. partners, and
1. List somt· Jeg,tl issues of Bl.
2. Describe privacy concerns in Bl. Representative Characteristics of Web _
20
3_ Explain privacy concerns o n the \\'e h.
·rhe follo wing are representative characteristics of tll • "'' b .
4. List ethical issues in Bl · e " e -7 ·0 ennronment:
5. Rebte fl! to privacy. • The ability to ta p into the collective intelligence f Th .
the mo re popu Iar and valuable a Web ) osite I o users. e more u,ers · comnbute '
. -· . Jecomes.
6 EMERGING TOPICS IN Bl: AN OVERVIEW • Data a re made available in new or ne,er-intended \\'ays. Web 2.0 data can be
remixed o r •· mashed up • often th rough w , b · • -
. a m:tJo . r area o f ..tpp1·tc.t
.. t·on , we service tnter1aces · much the W'tV
', a
BI 1s becoming 1 \\'hl'rc companil·~ arc . . investing
. ,. . ,considc •ri , rablt:
- dance-club DJ mi.xes music.
resources and • hope to reap m.11o . · r IJt, nc·f'tt •s inl•luding• compet1t
. 1, c. ..1<,11,1nt.1ge
, . . , ltrdore , • Web 2.0 relies o n user-ge nerated and user-controlled content and data.
IJOII1 131 "encIors amI 1111p · Ie me11t·111 •g comJYtniL • ''· ·ire
· con11nuou,I) .tltcmpt1ng. . l o .ipply
• Lightweight programming techniques and tools lei nearly anyone act as a Web site
·
cumng-eclge teeI100 Iog1es. · - Al tI1oug I1 1·t ·-
ts ·•t dnllengL'
· • ta. predict .\\'h1. . .ch _• lutme
. . areas
. . will d evelo per.
·
impact Ill or \\'t·11 Iie 11npac
· ted 1J,· 131 . the follo\\·ing • topic., :trl' tit,< w,sed 111 t1 11s chapter·
1 • The virtua l eliminatio n o f software-upgrade cycles makes everythi ng a pe1pet11al
• \v'eh 2.0 re,·olutio n as it related to Bl (Section 7) beta o r work m progress and allows rapid prototyping, using the Web as an appli-
catio n developme nt platform .
• Online social ne tworks (Section S)
• Virtual worlds as related to BI (Section 9) • Users can access appl icatio ns entirely through a browser.
• Integratio n social networking and Ill (Section 10) • An a rchitectu re of participation and digital democracy encourages users to add
• RF!I) and 131 (Section I 1) \'alue to the a pplication as they use it.
• Realitv Mining (Section 12) • A ma jo r emphas is is o n social networking, social computing. and social software.
• lnno\'ative s upport is provided for information sharing and collabo ratio n. Rapid and
The Future of Business Intelligence continuo us creauon of ne\\' business models 1s e1·idenced in Web 2.0 applications.
Ganner Inc. predicted (Gartner. 2009) these de,·elopments in the Bl market : O the r impo rtant fe atures of \Xl'eb 2.0 are it,, dynamic content. rich user experience.
metadata , scalability. open-source basis, and freedom (net neutrality). Most Web 2.0
• By 2012. business unus \\'ill control at least -10 percent of the total budget for busi-
ness intelligence. applicatio ns ha,·e a rich. interacti,e. user-friendly interface based on Ajax (Asynchronous
• lly 20 10. 20 percent of organizations \\'ill ha,·e an industry-specific analytic applica- JavaScript a nd >J- IL) o r a similar framework. Ajax is an effecti,·e and efficient Web develop-
tions delivered 1·ia software as a se1Yice as a standard component of their business ment technique for creating interacti1·e \'frb applications. The intent is to make \X'eb pages
intelligence portfolio . fed mo re respo nsive by exchanging small amounts of data \\'1th the serYer bd1ind the scene~
• In 2009, collaborath·e decision making \\'ill emerge as a new product category 1hat so that the entire We b page does not haq: to be reloaded each time the user makes a
combines social software with business intelligence platform capabilities. change. This is meant to increase the Web page·s interactivity, loading speed, and u~ability.
• By 2012, one-third o f analytic application appl ied to business processes w ill he
de livered th rough coarse-grained application mashups. Web 2.0 Companies and New Business Models
• Ikea use of lack o f information . processes. and tools, through 20 I 2, mo re than
-~~ percent of the top 5,000 global companies will regularly fail to make insightful A majo r characteristic of \X'e h 2.0 is the global spreading of innovative Web sites and ,tart:up
decision, abo ut significant changes in their business and markets. companies. As won as a succe~ful idea is deployed a~ a Web site in one country. other sites
appear around the globe. Tlus · ,eL11on
· present,· ,-ome o f 1l1tse • - •s1·tcs . For ex·tmpk
·• , :t[)J
_)rox1-
mately 120 comparnes · speu·a 11ze
· 111 ~
· pro,·1'd'mg Tw1·tt"- r-11·k•·- •··rvit·es· in dozens
· of countnes. An
7 THE WEB 2 .0 REVOLUTION e Guide: \Vidi 2.0 (see
exec II ent source I-o r nutena " e IJ 7- ·O 1·.,, -"'•
· I o n "'' c,, 1rcl1 CIO's
· FW!Clltit•
-

Web 2.0 is the popular term fo r descri bing ad vanced Web technologies and applicat ions, searchcio.techtarget.com/general/0,295582,sidl9_gci1244339,00.html#glossary).
including blo 0 s wikis RSS 11- ·I - - ! · A ne\Y business model that has emerged from \X'eh 2.0 is the a ccumulauon, of th~
. . ":' · . · . , • . t .ts lllps, user-ge ne ratec content , and sonal networks.
A ma1or ob1en1ve ol Web ) 0 ·, s to " 11l1a11ce e· t· · · 1· · · '·powe r of the crowd." The potential of such a business mod_el 1s unltm,1ted ._ For ex.'tmpl~:
. . -· · - cr ·a 1v1ty. 111 ormatio n sharing, a nd collabora-
tto n. One ol the most significa nt differences between Web 2.0 and the traditional Web is Wikia (wikia.com) is working o n community-develo ped Web , earchcs. 11 they cm ere
ate a successful n nl'. Google will have a challenger.
 .
Business ln1elligence Implemenr~H1on· . 1 ··ind !'merging
lntegr.mo, ~ Trends Business Intelligence Imp! .
ementa11on, 1 1
Niobile Social Networking n egra1ion and Emerging Trends
th 1 , for Web 2.0, and dozens of firms have
Many companies pmvicle e technos~~\ces to social networking. A large number
t nd ••obUe social networking refers to soc· . .
emerged as providers of mfraS n~cture a . uide to the 25 hottest Web 2.0 companies
2 '" ·1 I •a1 networkmg wh
of stan-ups appeared dunng Z00)- 00S. For a fem see money.cnn.com/magazines/ nnect w it 1 one a not 1er using cell pho ere members converse and
and the po\\'erful tre nds that are dnvmg ti ·· . h co k' nes or other mob·Je .
f r social networ mg Web sites such as Mys I c1ev,ces. The current trend
business2/business2_archive/2007/03/0l / S40t04 Z/ mdex. tm. o . 1 . pace and Facebo0 k · f
s some socia networkmg sites offer mob·! . is to o fer mobile servi-
ce.. There are two 1)asic types of mobile 1e-on .
1y services (e g B · h k'
· · ·, ng t He and Fon] I)
SECTION 7 REVIEW QUESTIONS . . soc,a1 networks The f t · .
that partne r wtth wireless carriers to distribute thei · . . ,rs type 1s companies
1. Define \X1eb 2.0. ages on cell phone browsers. For example u r commumt,es via the default stan
2. List the major characteristics of Web 2.0. p , etwork. The second type is com . '. sers can access MySpace via AT&T's wire-
less nknown as "off deck") and rel pan~s that do not have such carrier relationships
3. What new business model has emerged from Web 2.0? (also . Y on ot er methods to attract users. Examples of this
second type mclude MocoSpace _(mocospace.com) and Mobikacle (mkade,com). -
Windows Live Spaces Mobile can be viewed on mob,.le elev· · h 1· d
8 ONLINE SOCIAL NETWORKING: BASICS AND EXAMPLES .
Size and slow data connections. It allows users to browse and add ices hwat 1m1te
bl screen
•
. . p o os, og entnes.
Social networking is bu ilt on the idea that there is strncture_to how people know each and comments directly from their mobile devices. However, it has also introduced
other and interact. The basic premise is that social networking gives people the power several other features to improve the user experience with hanclheld devices.
to share, making the world more open and connected. Although social networking is For more information on Windows Live Spaces Mobile. see mobile.spaces.live
usually practiced in social networks such as MySpace and Facehook. aspects of 1t are also .com and en.wikipedia.org/wikl/Windows_Llve_Spaces_Mobiles.
found in Wik1ped1a :111d YouTube. . . . Mobile social networking is much more popular in Japan, South Korea, and China
\Ve first define social networks and then look a l some of the servJCes they provide than it is in the West, generally due to better mobile networks and data pricing Cflat rates
and the ir capabilities are widespread in Japan). The explosion of mobile Web 2.0 services and companies
means that many social networks can be based from cell phones and other ponable de-
A Definition and Basic Information vices, extending the reach of such networks to the millions of people who lack regular or
easy access to computers.
A social 11etu·ork is a place where people create their own space, or homepage, on which With the current software that is available, interactions within mobile social networks
they write biogs (\X,.e b logs); post pictures, videos, or music: share ideas; and link to other are not limited to exchanging simple text messages on a one-to-one basis. In many cases.
Web locations they find interesting. In addition. members of social networks can tag the they are evolving toward the sophisticated interactions of Internet vinual communities.
content they create and post it with key words they choose themselves, which makes the
content searchable. The mass adoption of social networking Web sites points to an evo- MOBILE ENTERPRISE NETWORKS Several companies have developed (or fully sponsor)
lution in human social interaction. mobile-based social networks. For example. in 2007, Coca-Cola created a social network
that could be accessed only by cell phones in an attempt to lure young people to its
THE SIZE OF SOCIAL NETWORK SITES Social network sites are growing rapidly, with sodas and other products.
some havmg over !00 million members. The typical annual growth of a successful site is
40 to 50 percent in the first few years and 15 to 25 percent thereafter. For a list of the MOBILE COMMUNITY ACTIVITIES In many mobile social networks, users can use their
major sites, including user counts, see en.wikipedia.org/wiki/ List_of_social_ mobile devices to create their profiles, make friends. participate in chat rooms, create chat
networking_websites. .
rooms hold private conversations, and share photos, vi··deos , and biogs· Some
. companies.
provide wireless services that allow their customers to build their own mobile community
SOCIAL NETWORK ANALYSIS SOFTWARE Social network analysis software is used and brand it (e.g. , Sonopia at sonopla.com). . . w tech-
to identify, represent, analyze, visualize, or simulate network nodes (e.g., agents, organi- Mobile video sharing, which is sometimes combined with photo shanng, 1~ a ~: g see
zations, or knowledge ) and edges (re lationships) from various types of input data . •d sharing ponals are becorrung popu ar · ·'
nological and social trend. MobI1e vi eo- . ' k' g sites are offering mobile
(relational and nonrelational), including mathematical models of social networks. Various myubo.com and myzenplanet.com). Many socia1 nero;~:~h a number of U.S. wireless
input and output file formats exist.
features. For example, MySpace has partnership agre_em,e,n Facebook is available in both the
Network analysis tools enable researchers to investigate representations of networks •
providers · "' ·IYspace Mobile servICe.
to support its . .,m, . . Bebo has joined forces wit· h o-7
5 1ar l ,
of different forms and differem sizes. from small (e g., families, project teams) to very · mber of wrreles, earners. · he
United States and Canada via a nu This henomenon is jus1 the next step 111 t
large. Visual representations of social networks are popular and imponant to understand Wireless in the United Kingdom and Irela cl.. n p . multiple mediums Some argue that
network data and to convey the results of the analysis. · I networking sites across the social networkmg · sites;
· how-
race to establish access to soc,a
Some of the representative tools that enable such presentations are: bI·1 hones than to promote .
these deals do more to sell mo e P llect the residual a11en11on.
• Business-oriented social network tools such as lnFlow and NetMiner ever, the social networks are more than happy to co ·
• Social Networks Visualizer. or SocNetV, which is a Linux-based open-source package . . Facebook and Orkut
Major Social Network Services. . . . . t· ke a closer look at some of
For details. see en.wikipedia..org/wiki/Social_network_analysis_software. cial network serv,ce., , 1ct s a
Social networking is strongly related lo mobile devices and networks. Now that you are familiar with so
the most popular ones.
 Business Intel)·
Business Intelligence lmplement3tion: lntegr.ttion and Emerging Tre ncls tgence Im I
p cmenta11on: lnte rar10
arne time , and other Lotus software g n and Emerging Trends
FACEBOOK: THE NETWORK EFFECT Facebook (facebook.com), w hich was launched in S . . b to add Lot 251
building a ppIicat1o ns ased on social nerw . us Connea ions to their .
2004 by former Harvard stude nt Mark Zuckerberg , is the second-largeSt social ne twork Re presentative areas a nd exam orkmg technolo"''· produa lineups.
service in the world with more than 200 million active users worldwtde as o f April 2009. PIes of ente . o,
Whe n Zucke rberg first created Face book. he had very strong soc ia l a mb itio ns an d rpnse social networking follow
FINDING AND RECRUITING WORKERS ~I
wanted to help people connect to others o n the Web. _ _ . d f .. ' ost of the bl
usiness-on e nte o nes, ac1htate recru·t· 1mg and ·ob pu 1c social nerwo ks .
A primary reason why Facebook has expanded so rapidly ts the network effect- b . - . .
ecruiting 1s a ma1or ac11v1ty at Linkedln d 1 f,111ct·mg (Hoover 200i) r - espea ally the
F .
more users means more value. As more users become involved in the social space, more r .. . an was the d . · or example
..,.
I,,_ compettttve. companies must look at th nver for the site's de,·elo T·
peo ple are available to conne ct w ith. Initially, Facebook was an o nline social space for · k. . e gIobal k pment. o
lobal social net\vor mg sites to find it La mar et for talent, and the)· ca
college and high school students that automatically connected students to other students g - h · rge companies . n use
at the same school. However, Facebook realize d that it could only keep college and uni-
netwo rks to fimd m- ouse talent for vacan .. are usmg their in-house soc· 1
· · h . t pos1t1ons Ap 11· . ta
versity users for 4 years . In 2006, Facebook opene d its doors to anyon e aged 13 o r older such apphcauo n t at combmes BI and soc· 1 ·. · P cat1on Case 2 illustrates one
ia networkmg.
with a valid e-mail address. Expanding to a global aud ience has e nab led Facebook to
compe te directly with MySpace.
Today. Facebook has a numbe r of applications that support photos, groups, events
marketplaces, posted items, and notes. Facebook also has an a pplication calle d "Peopl~ Application Case 2
You May Know," which helps users connect with people they might know. More applica-
using Intelligent Software and Social Network· tO 1 ••
tions a re being added constantly. A special feature on Facebook is tl1e News Feed , w hich mg mprove Recruiting Processes
e nables users to track the activities of friends in their social circles. Fo r e xample , w hen a The Internet has made adverttSing and applying for
Tre nd ~ltcro adopted TrovLx and was able 10 screen
user changes his or her profile , the updates are broadcast to others w ho subscribe to the jobs o nlme a much simpler process. However
i OO applicants and list the top 10 in about 20 min-
fee d . Use rs can a lso develo p the ir ow n a pplicatio ns o r use any o f the millions of so metimes with simplicity comes complexity. Th~
utes. The accuracy is probably no better tha n
Facebook applications that have been developed by othe r users. challe nge now for some la rge companies is how
manual processing. but the software can screen
to cost-effectively manage th e online recruiting applicants in a much shorter period of time.
ORKUT: EXPLORING THE VERY NATURE OF SOCIAL NETWORKING SITES Orkut (orkut proce ss. beca us~ o nhne ads are attracting large A shghtly more personal approach is available
.com) was the brainchild of a Turkish Google programmer of the same name. Orkut was numbe rs of applicants. For e xample. Infosys now through some of the social nerworkmg sites, which
to be Google's homegrown answer to MySpace and Facebook. O rkut follows a format receives in e xcess of 1 million job applications eadi offer support for companies to locate the best talent
sinillar to that of other major social networking sites; a homepage where users can dis- year to fill abo ut 9,000 positions. It nught sound like for a panteular posiuon Sites such as Jobster
play every facet of the ir pe rsonal life they desire using various multimedia applications. a good problem to have too many applicants, but (jobster.com) and Linkedln (linkedin.com) rely
A major highlight of O rkut is the individual power afforded to those who create companies a re find ing that there is often a poor more on a nerworkmg approach. Jobs posted on
the ir own groups and forums, w hich a re called "communities." Who can join and how match between the skills and attributes they require Jobster, for example. are linked to o!her job sites. to
posts are edited and controlled lie solely in the hands of the creator of each community. and the ma ny hundreds of applications received biogs, to user groups. to universil) alumni sites, and
Moderating an Orkut community is comparable to moderating one's own Web site , given Thus, des pite attractin g a lot of applicants. they so on. People who are part of the social network are
the authority the creator possesses with regard to design a nd control of conte nt. Orkut o ften still suffer fro m a shortage of good applica- encouraged to recommend others who might be
users gain substa ntial experienc e w ith Web 2.0 too ls, creating an enormous wave of tions. Furthe rmore , how can a companv be sure it is suited to a particular job, urespective of whether they
online proficie ncy. w hich is s ure to contribute to the develo pme nt of the o nline accessing and attracting the very best talent in a par- are acti\'ely seeking new work. ln this way, a company
environment. ticular field? Some interesting new de,·elopments are looking 10 recruit the best talent has its job advertised
changing the way companies may address these much more widely and may benefit from word-of-
Orkut recognizes that it is the users who dictate the content of the ir chosen social
issues. mouth recommendations and referrals. For example,
ne tworking site. Given this, Orkut has ad apted in a number of interesting ways. First, it is
Tro ,·ix (a M onster.com companvl offers a Linkedln offers prospective employers a network of
adding more languages, expanding the Hindi, Bengali, Marathi, Tamil, and Telugu sites,
ser,ice to comp a nies based on its award-winning more tlian 8 million people across 130 industries,
w hich expands the p opularity of the site and improves user control over the site. Second, meaning much l3Jller exposure for job v-dcandes and
O rkut greets its use rs on the ir national and religious holidays with fu n features. For exam- HR software, w h icl1 uses embedded intelligence to
a much' larger talent pool to seek referrals from. Sires
ple , it wished Ind ian users a Happy Diwali (en .wikipedia.org/wiki/Diwall) by provid- help manage the entire recruitment process Trovix
such a.<Jobster can also track "here applicants come
mg a feature that allows use rs to redesign their personal sites with Diwali-the med colors a rgues that its tools Trovix Recruit and Tro,·ix
from. helping companies adopt better recruitment
and decorations. Intelligent Search can emulate human decision mak-
strntegie, and thus achieve better returns from their
ers and assess a cand idate's amount. depth, rele-
im esu11enL< in seeking the best Slaff
vance, and recency of work experience, education.
Implications of Business and Enterprise Social Networks
and the like . The software presents in rank order the Sources. !lJ,-ed on _I ) k ~ •). -\There Dtd Jobs Go/ Look Ill
Although advenising and sales are the major electro nic commerce activities in public best cand ida tes to fit an ad,·enised position. Other BJ.ng:ilou:. crl1:::ettecom, \ IJr(h 21. 200-t, post~m/pg/
so~ial networks, there a re e me rging possibilities for commercial activities in business- feature~ e na b le tracking of applicants. reporung, IHOfl l/ 268539.stm (Jcce;.;,<l Julv 2009) , nd 1'ron, \lakes Good
.1t\rJnforJ L'm, c.:r:,1l} Prt.:mtt:r Educ:it1onal lnM1rutio~ Tums to
o nented ne~orks such as Linkedln and in enterprise social networks. and communicatio ns A number of ,n5tttutions ~re lnldhµ<"nl '-earch Pro,·idcr tor R~-ruiu.ng Top Talent \ 1.irch 8,
Rec~gmzmg the opportunities, many softw are vendors are deve lo ping Web mols using th is sen-ice. includtng Srnnford UmverSity. 2006, u-ovi.~com/about/pttSS/050806-J•P (2cctSSe<l Jul} 1009).
and a ppbcauo ns _to suppo rt e nte rprise social netwo rking . For e xample , IBM Lotus is which needs to fil l thousands of poSitions each ye:ir.
e ncouragmg ns ) .000-plus solutio n providers w ho are working w ith Notes/ Domino .
 Business Intelligence lmpl .
Jncegration and Emerging Trends ememat,on: Integration and Emerging Trends
Businc,s Incelligence Implementation:
• E-learning and training (46%)
SUPPORT -1.pplications in this category are related to
• Forums for ne \\' ideas (4 1%)
MANAGEMENT ACnVIITdlES_AND aking bas~d o n analysis of data collected in social net.
suppomng managena ec1s1on m. · · f I · • Corpo rate-specific dynamic glossarv d .
. . de identi"'ing key per a rmers. ocat111g expens ·•nd . .h ·, an term111olog)' (38• 0)
works. Some typ,ca1 examp1es me1u •, . . . . • • Colla b o ratio n wtt customers (24%) '
h
finding paths 10 access them. soliciting ideas and pos.~i le ,olut,ons to complex prob.
51 11
lems. and finding and analyzing candidates for_m~nageme.nt ,stl ~ces ~ ••1~lanmng. i'or ·n1e term \f/eh 2.0 was coined by O'Re II ~1 . .
example, Deloitle Touche To hmatsu set up .1 soc,.il t1ct\\ ork 1_0 ,ISSISI It~ h uman ' y ' ec1,a 111 J004 to ref t
gener,11io n o f Internet•I,ased services that let eo le - er o a supposed second
resources managers in downsizing and regrouping teams .. Hoo,·er s has establbhed a wols such as w ikis, hlogs, social netwo~ s. Panrnerate and rnntrol_come111 usi~g
social network that uses \'isible Path's technology to 1dent ,fv target husmess users for Recognizing the po tential of \X'eb Jo research h folksonom,es (0 Reilly. 200)).
relationshir building and 10 reach specific users. The :\ch·ances in Social Ni:two rk -· · ers at t e MIT Center fo 0- · I B .
( Brynjo lfsson and McAfce. 2007) and Harvard 8 us111ess Sc1100I (Mcc\fe,r J006·
. ,g11a u, mess
Analysis and ~lining conference on the use of data mining in social networks (.July 2009 ' dC
, , I 2005) extended the Web 2 o cone • . . ' · e, - . an ross
in Athens. Greece) has been dedicated to this topic. tl ,t ·· . . ept tnto E11tr,pnse 2.0 (the use of\\' I Jo , 1h.111
the enterprtse), assertmg that the \'i'eb 2.0 tools creat. II· 1 · . e J - · '"
. e a co .1 Jorat1\'e platform that
rdlects tI1e way k now Ied gc work ts really and natural!,· d Tl
TRAINING Sel'C,ral companies use enterprise social networking. and \'irtual \\'Oriels in . - . . · • . one. 1ese too1, 1ta\'e the
otenual to en 1iance commun1Catton and collaboration ancl ·d
panicula r. for training purposes. For example. Cisco is trying to use· its "inual c unpus in P a, 111 , .·inua1 team deos,on-
..
n,aking processes (Turban et al., 2009).
Second Life for product training and executin : brieltngs IB\I 11.111s managemc·nt and cus-
tomer interaction training sessions in ~econd Life too.
SECTION 8 REVIEW QUESTIONS
KNOWLEDGE _MANAGEMENT AND EXPERT LOCATION Applica tio ns in this category J. Define social netwo rk.
include act,nues such a~ knowledge disco,·e~·. cre:uion. maintenance. sharing, transfer.
2. List some major social network sites.
and_dissemination. An dabor.ttc discussion on the role of discussio n forums, biogs. and
w1kt~ for con,·ersation:tl kno\\·ledge nunagement on be found in Wagner and Bolloju 3, Describe the global nature of social networks.
(200,). Other examples of these applications include expen disco\'e~' and mappmg corn- 4. Describe mobile social networking.
mumt,e~ of expenise 5, Ide ntify Facebook's major strategic issues (e.g., look at the marketing efforts at
Consider the following examples of social networking for kno\\·ledge management insldefacebook.com and at facebook.com) .
.,nd expen location:
6. Much of Facebook's early success was due to the close affiliation of its members· net·
• l_~noc~mt\'e (lnnocentive.coml. a social network with o,·er 150,000 participating works. How does Facebook expand into ne\\· market~ without losing what originally
suenllsts. ,pec,altzes in solnng science-related problems (for cash rewards). made the site popular and alienating existing users'
• ~onhwestern :-lutual Life created an internal social netwo rk where over 7.000 finan-
cial representati\'es share captured knowledge (using Awareness.com blog in 9 VIRTUAL WORLDS
software). g g
• ~aterpilb r created a knowledge network system for its employees, and it even mar· Virtual wo rlds ha,·e existed for a long time in various forms. including stereoscopes,
kets the software to other companies. Cinerama, simulato rs. computer games. and head-mounted displays. For our purposes,
virtual worlds :ire defined as anificial worlds created by computer systems in which the
. -~ o°.ipanit-s abo are creating retiree corporate social networks to keep retirees con• user has the impression of being immersed. The intention is to achieve a feeling of telep·
~cuc_ .'~ 1th each other and with the organizatio n. These people possess huge amo unts of resence and participation from a distance Current popular vinual worlds include Second
nl " 1c,Cge th at can be tapped for producti\'ity increases and problem solving (e g
0
A umm onnect from Select~lincl! ) \,,. h 61. ·w
Life (secondllfe.com). Google Li\'ely (lively.com). and EverQuest (everquest.com).
.. . · ·,
wars (per the Co ~ d s · 11 . q mt ,on people retmng wtthin the next few A good overview of the technologies. applications. and social and organization is,ues of
. n erence 8 oar ), preserving their knowledge is critical. vinu:11 worlds can be found at Wikipedia (en.wikipedia.org/wikl/Virtual_world). In
these \'inual wo rlds. trees mo\'e \\'ith the wind. water now, down a stream, birds chirp
ENHANCING COLLABORATION Collaboration in social netw k. . . in the trees, and trucks roar in the street. L'ser, create digital character, called a/1(/tars
nally, among emJJiovees from d"ff . . or mg 1s done both inter-
. · 1 erent un,i, working in irtu I c that illle ract, walk . :ind talk with other computer-generated individuals in computer•
external!\', when wo rking '-''.ti .
1 1 supp . v a teams ,or example, and
· 11ers custome d h
Collaboration is dont.> mosth· in ~ d · rs, an ot er business partners. generated landscapes. Some en:n run global businesses .
bl · • orum.s an other types of db Real-world institutio ns ranging from t 11m·er, itics and bu,mes,e, to governmental
ogs. For details on collabo ration . . groups an y using wikis and
in soc,a 1 networks, see Coleman and Levine (2008). ·
o rganizatio ns are increasingly mcorporaung 1,nua
· -· , I world, into their strategic marketing
. .
· ·· · onwt channel f(Jr reJching a wider con·
USING BLOGS_ANO WIKtS WITHIN THE ENTERPRISE . tn1ltatives. \"inual wo rld, are becommg an imp ' . . . .. .
1 he use of the, e tools is expanding · - h . , and interacting with them 111 a ",I\ I 11al
rapidly Jefferies l1008) reports O . . d sumer base as well a, for ,eemg t e cu, tumcr . 11 . · 1
bl n ,, stu v that - , percent 0 f I I ' . • •h a, ,·inual cum:no cs often a " " pan C·
use ogs and 6-t percem u,e wikis fo 11 ·, f II . t 1c Je,1-in-cla.,s companies was not pos,ible a fe~,- ye:1r, :,go Concepts su( .· · vn , J world
· r 1 ~ 0 o wing applicatiom . . ds r r ,er\'ice., , ucl1 a, :11ure or tra,mng. , ua ,
•pant., 10 buy o r , ell \'lt1ual goo ' . I. , . ·mm , r,ive or absorpti\'e
• Jl: roject collabor.111011 :ind communiottnn (63" ) . . d ode, of ad,·ertLs111g t iat can ' ><: ' e
• .roces, •and. procecture docun1ent (63",.J 0 [)rU\ 1de nch and enhance m · . ct· d · J . in addition to 1..:xr. enhanc·
. . . .. d . . . can include au ,o an , ' co
• FAQ, ((i J"vJ .1Ct1,·..: o r pa,s1\'e. I he a 'en1s,ng t.<n \hhouuh stud,c, on 1lw use·
. . d ,tomers' purcha,l' inten , J , i ,., .
•ng prr><lun kno wltdge an cu f \idencl' su)(l(e,1' ih:n ;l\·aur, and 1·inual
of online a,·atar, m m:,rketing are <:\\'. some e ·
 Business Intelligence Im 1 .
p ementa11on: Integration and Emerging Trends
. te ration and Emerging Trends
Business Intelligence Implemen1a11on: In g • 4 · A large, ,ledlcated .
user base. It doesn't .
cost much to "hir ,.. 1;
. d online purchasing intention, because o u in Second Life . The pay is in Linden cl II c peop e avatars to work for
Y - o ars, and yo u can e· · il 1 .
representations may pos1uve . . IY influence .trust an res (Stuart 2007) However, not a II real- mo re than ,o countries. Companies like Ma . a~ Y ure employees from
·t 1ers hm·e m rea1 s1o npower are m Second L'f d h
.
they simulate expenences cus_ on .'
,
. because not all of the human senses, such as e mployme nt issues. Second Life is an easy w f • 1
e an · can c 1p sort out
11 of the users I1ave great computing skills ay or a company to "go go a • Also, many
I b 1 ..
world attributes can be expenenced virtUa y, ter monitor (Tsz-Wai et al. , 2007).
"taste," can be digitized and presented on a _compu Managers can exploit Second Life 5 _ 1tnpresslo11 ma11ageme111 and creativity enl,ancement .
Second LI·fe can IJe _'an effective business tooI· the user wants. Anonymity has some advanta •. Avatars look ltke whatever
1o r certain types of decisio ·
din to John Brandon, in a Compu.terwor/d ges
today for real-world decision support. Accor g . second Li fe I~rea k s cIown barriers to creative th·10k. cl f · · n supp ort.
I mg an rees the imagination s
article (2007) o n the top business sites in Second Life : People a re . re uctant to .use videoconferencing because o f concerns · · · ome
about how thev1 will
·ippear;
, with . Se cond Life , users can consciously m h .
anage I c impressio ns they cr a1 , 0

What makes the IBM presence even more interesting, though: is what takes during m eetings, events, and activities. · · " e
. d cIosed d oors. Regular 'brainstorming' meetings
p Iace b e h m . with. clients have
. 6· Time compresslo11. A day in Second Life is 4 ho urs long People . kl cl
· t· ·deas such as a grocer that would sell items m Second Life f · · connect qu1c y an
prod uce d mteres mg 1 • • teleport rom venue to venue . Second Life o perates around the clock The 7124136 -
·f d • •- · , nature
a nd have them delivered to homes, and a fuel company that would hold regu- of Second LI e can spee up act1vmes and change users' time perceptions.
lar training sessions for employees--which would not be open to the public. 1. Easy data integration
, . from real .life using RSSfieeds . Th •b·l· • f .
e posst 1111es o r mtegrat-
ing data from van o us Web sources into Second Life are expanding rapidly.
The use of Second Life for decision support needs to be carefully planned. 8 . Encourages . , active participation
. _and experiential learnit1g. p eop 1e expen•ence
Professor Dan Power wrote a column some time back on the advantages and disadvan- second Life, a nd those experiences impact real life . A Seco nd Life meeting can be both
tages of virrual worlds for decision support. See Technology Insight 1 for excerpts from e njoyable a nd me morable . A walk through a vinual factory can help people understand
that column . w hat it w ill be like when built.
Although virtual worlds are becoming interesting tools for businesses and con-
sumers, some short-term technical and practical considerations have kept them from Major disadvantages of using Second Life for decisio n support:
gaining widespread acceptance. For example, participation in most of these virtual envi-
ronments requires downloading of a "plug-in." However, many businesses and govern- 1. Learning time and training costs. Company executives are generally unfamiliar with
ment organizations prohibit any kind of software downloads on employees' computers. Second Life, and the learning curve is at least 8 hours to gain a basic comfort level. A good
This limits the use of these services to a select few employees, typically those in IT. coach can make the learning process much easier for a ·'newbie'· manager.
Despite a few limitations, consumer applications of virtual worlds are growing at a 2. Distractions are numerous. Second Life is a big virtual space with a lot going on , from
fast pace . One of the coauthors of this book (Sharda) has been involved in virtual world shopping to sex, from sunning at the beach to skiing. from dancing under the stars at the
applications for trade shows. Trade show is only one of numerous terms describing a tem- Romantic Starlight Ballroom to a live music performance at the Second Life synagogue. Some
porary market event, held at some intervals, where a large number of potential buye rs of the distractions are very pleasant, but they create the possibility that employees will be play-
(attendees) a nd sellers (exhibitors) interact for the purpose of learning about new goods ing when they should be working. Also, companies will need disclaimers, and HR will need
and services. Trade shows such as book shows, technology shows, and human resource to review policies on sexual harassment.
shows (career fairs) are held worldwide throughout the year. 3, Pranksters and spam are common. All sorts of crazy people are floating around
Second Life with too much time to waste. Many of them devise prank5 and engage in nasty
activities, from defacing buildings to harassing worshippers at a synagogue or conference
attendees. Security of many types is an issue.
4. Technology problems persist. Some tech11ology problems include slow respo nses,
TECHNOLOGY INSIGHT 1 Second Ufe as a Dedsi6~:Supt,ort Tool lags in resizing objects, the need to empty cache memory following crashes (w hich do
. ' .... ·~ ·.
happe n), and frequent software updates.
Major advantages of using Second Life for decision support: 5. Chat is a very slow comm1mlcatlo11 tool. The new voice client w ill speetl up
1 inte raction of people in Second Life, but chat will still have a use , especially with the
· Easy access a nd low cost. The client is a free download and people can artici ate auto matic translators for multilanguage communicatio n. Voice interaction will be invalu-
11
: ~~~i~~aG~n~h: ::bershi: fee. ~he client is still evolving'. and the new voi~e clie~t is able for Second Life meetings.
weeks with updates. mun1t) ' so t e software may need to be downloaded every few 6. Resistance to use. Second Life is not like anything most executives have experienced,
2• Experie,1ced and dedicated designer/builders . and there w ill be resistance to using this technology. It is easy to view Second Life as a game
the poss1bilt11es and the wonders that ill · A quick vistt to Second Life showcases and to overlook the real-world, decision-support possibilities.
'd are st to come Second L1f h ~ . .
prov1 es broad and flexible content authonn ex . e as ew restnct1o ns and 7. Addtctio,L Some people have become addicted to using Se~ond Ufe _and spend ho urs
available objects te,nures and scnpts I g · penences fur developers The quantity of on the syste m becoming sleep deprived and neglecting real-ltfe act1v1t1e~. Company HR
create custom a~atars b~tldings and O r~se IS trpressive, and designers are available 10 personnel wili
need 10 monitor the behavior and attitudes of employees who are heavy
builder can create a ~rototype q'uicklyp~~ uctsl Id you can make a rough sketch a good
builder can replicate your factory o supp te wtth the floor plans and dime~sio ns a users of tools like Second Life.
3 . ,.,..oo 1s and venues for communir, givent'
enough time re I
' p tcate an entire city
'
' ' . . and D1sad,·an1ages of L'sing Second Life for Decision
ca ,ans-driven decisi So11rce· D. Power, '·What Are the A<l, antagcs ds es com/newslettcrs/ 19S.php (accessed
Slreammg video, stream111g voice PowerP on support. Tools include
Support?" DSS Nen ·s, Vol. 8, No. 15 July 29. 2007. sresourc · ·
ch t cJ ' omt, agenda and •
a recor ers. and even name tags for avatars. meeting manageme nt tools, July 2009) .
 Business Intel!'1
&encc In 1
Business Intelligence Implementation: lntegr:uion and Emerging Trc nds ip ementation ln1e .
'[he trade fa ir participant goes to . . . grai,on and Emerging Trends
Physical trade shows allow fa ce-to-face interactions, the richest form. of communica. . . nt first visits a virtual exhibit llo a specific vinual trade- ·h h
tiCIPa I or. On th . s ow omep·1 • Tl
tion. Disadvantages of traditional trade shows include restricted geogra pl~tc reach , limited virtual boot 1 and gather info r . . e v1nua l exhibit fl 'ge. 1e par-
eieC t 3 m,1t1on O , oor, the pan· • .
opera ting hours, high cost of participation, and the need to get maxnnum exposu re s nination . Tec hn ologies enable r engage in live inte . tc1p,1nt can
disset . ' commu · . ract1on and inf .
through the strategic location of exhibition sta nds. To gain more va l~te from trade-show .; b ca llback, fax , and e-mail . Spechl s kn1ca11on through featurus 1 ormatton
participation, many show panicipants now use teclmolog1es such as virtual worlds lo gain \ve cl k ' pea ers O , sue 1 as chat
·deo-strea me eynme Webcasts. Anendee r guests ca n communicate ti '
more visibility. Some information technology tools mimic the specific activities of trade v,1 t room. Although this enables the event _s can also interact with each othe ti irou,gh
shows. For example, it is common today ro use Webinars, presentations. lectures, or se 111• c 13 . ,tttendees I r 1roug 1 a
·nie, different-p 1'.ice mo~le , 1l is not as media r· ·I ,o. exchange information in a same-
inars that are transmitted over the Web (Good, 2005). These tools typically offer a one.
::1rough Second Life: tc I as the avata r visibi lity exrerience
way communication from presenter to audience, but can be interactive, with the abil ity 10
o ne of the mam reasons for exhibito ..
give, receive, and discuss information between the presenter and the audience. However, .
I n a virtua rs lo pan1c1pate i I I f . .
,111 d contacts. l show exli'
t li't n r.tt e airs 1s lo acciu ire new
Webinars typica lly do not deliver the content, stakeholder information, and lead data 1e:1tls • , 1ors can rec,·
eneric atte ndee report (similar lo traditional sh . etve anendee leads in real time.
available to an exhibitor at a traditional trade show.
~ gred auendee is ava ilable lO all exhibitors 111 · owl ,llhlend ee lists) containing every reg-
Virtual world technology may be useful in replicating a trade-show participation "1•e access detai·1e d tra ff·1c repons of all attende, . roug. 1 l e. event producer. Ex. I11b1tors
. .
. can
experience by organizing virtual events that can e.xtend the reach of the event to include •1Iso · es w110 v1sn th · · I I
' .' , •,ng the booth ca n drop a business ca rd A r d f · eir vinua JOOlh. Auendees
many more attendees and perhaps even more exhibitors. A vhtual trade show is held in v1s11 . . " · ecor o all auend • I10 d .
cyberspace and may be viewed as an extension of the physical exhibition or in lieu of a digital business ca rd 1s ava ilable. The repon includes all auende ~es w . rop off their
physical event. It replicates many of the information exchange. communication, and cvant contacdt informdation and whhether the auendee has request:~ a~~;;~~~:'.'i'i~sfo~~~l:~~
community-gathering aspects of a physical event. Its structure often includes a virtual , y pro ucts an services, l e compan 111 · I
on ,in . ,. . Y genera , or employment oppon unities
exhibit hall , which users enter by permission and with specific capabilities, to view virtu- A comprehensive
. . , .Booth Footprmt~ Repon"
. is available on ·ill
, reg·1s.1ere(1 auendees who
al trade-show displays or to build virtual booths to exhibit information, just as they would V·,cw an exh1b1tor
. . . .
s virtual booth.
.
1111s
.
repon provides• ins·, iglit ,·nto ··,viia 1 ts• of 1nteres1
. 10
at a trade fair in a convention center. The virtual trade show may have other components e:ich spec1f1c v1s1tor. For obvious privacy and security purposes, all repons are under con-
such as a virtual Web conference, a collection of Web seminars, or other educational pre- trolled access. ~u~ such reports provide a wealth of information 10 the trade-show pro-
sentations. Visitors fill out an online registration form to create an online badge before ducers and exh1b1t? rs a_nd can be analyzed through business intelligence iechnologies.
entering the virtual exhibit hall to visit various booths. The virtual booths often look like As descnbed m this see11on, v1nual worlds provide an opronunit y to offer decision
real-world , trade-show booths, with desks and displays that users can relate to easily. support capabilities in a novel way. In the next few years, we will see a funher expansion
Vi rtu al trade shows can serve as international trade shows, business matchmakers of immersive decision-support capabilities. In addition , such environments (e.g. ,
procurement fairs , and product launches. The experience also translates well for othe; iTradeFair.com's vi rtual trade shows) generate massive amounts of data about users'
applications such as virtual job fairs , virtual benefits fairs , online employee networks, dis- activities and participation in online activities. These massive dataset, can he analyzed
tributor fairs , and venture capital fairs. This recognition of the synergies between vinual through BI technologies to better understand customer behavior and customize
worlds and trade shows has been employed by some virtual trade-show companies. One products/ services or the technology environments. Sections l J and I2 describe other
of these is iTradeFair.com. An example virtual booth is shown in Figure 4. technologies that enable large-scale data collection and the possibilities of the analysis of
such massive datasets.

·--
Make mtant voice SECTION 9 REVIEW QUESTIONS
cals tothl
s«ld.-.ernail to
10. the exhibdor 1, Whal is a virtual world'
2, What are the advantages and disadvantages of providing decision suppon through vir-
tual worlds'
· d ·n a vi nual event? Which
3. What activities of a physical trnde show can be experience 1
ones ca nnot be replicated' .. • 1
~ data ·1bout users in a spec1f1c v,nua
Drop Buslntu
4, What type of data analysis might you per orm on ., · ' . . 1ir·,de-show booth)'
Can!
• Ian d 1·11 Second lu
world setting (e.g .. a company t5 , c' a v,nu., • ·

PrnsRtfelse
10 SOCIAL NETWORKS AND Bl: COLLABORATIVE
DECISION MAKING . . d RSS supplement 131. ·111e system
Pick up brochu'es- .n1e open ing case demonstrated how biogs. .w1k15, an . and Bl. In f·,,ct, l111.5 com·
........,
lnd mar11:eling
l ucky Drew
described showed the potenua ne
· I be fits of usmg sooa
d O
.. 1software
1·
f the major IT consu 11ng comp
anies
·
. . can be extreme IYuse fuI· And mdee
btnat1on . • one ovide .
a significant opponuniry for Bl
Gartner In c. predictS that such integrauon dean ~ n making in the en1erprise. They refer
' . directly 10 ec1S1
FIGURE 4 Sample of a Virtual Booth. initiatives by typing informauon . d .· •on maki ng.
to such combinations as collaborat1ve eust
 Business lntel!i
· g Trends gence Implementation.
Business Intelligence Implementation: Integration a nti Emergtn Integration and Emerging Trends
259
The Rise of Collaborative decision making Final decision
(Schlegel et al .. 2009) desc ribe that a new
In a majo r report, Gartne r Inc. 's resea rc 1iers king (CDM) whic h co mbin ,
· · - ll boratlve decision ma • es
styIe o f dec1s1o n s uppo rt , co a . , tic-illy imi)rove the qu•tlit y 1- Oec1sion-Makl
. ·. I f ,, , , d !31 · r 1·11g :llld 1t 111:iy c1ram,i ' ' o ng Process and activities
, ocu so t,, ,Ire ,lll - , JS e me g • . 1 it·iined in UI syste Jll s w· I

ltlf~ it
decis io n ma king by directl y linking the in fo rm:ttio n c. . ·.
0
· · · 111 Decision FinalDaciaion
. . . , o f social soltw.11 e. Recommendations Mal(ers
1
collaho rauve mput g leaned throug 11 t 1e u., c • Reports ·
The key findings of this repo rt are· Problem solving
. • -y,-t•·in for nonrou1ine . complex decision.s Exploiting
• COM is a category o f cIe n s1on-suppo 11 ' · ~ opportunities
that require iterative human interactions. . .. . .· .· ,
• Ad hoc tagging regardin1,: value . relevance. cred1h1hty. a nd dcuMo n context can
substantia lly e nrich both the decision process :ind the t·n nie nl th :ll contrihtllc.s lo
the derisions .
• Tying 131 to decisio ns :ind o utcomes th:11 c tn he measured will e n:thlt· org:111izations Data, Computerized Decision support
to better d<·111un,1r.11e the b usiness va lue of Bl. Data warehouse COM Tools
Dt's pite unpr<TL'dented infonncttion :t\':tibbility. lht· p:1., t dec tdt• s ufft-red from severa l
im1w rfect d ecisio ns 111:ide in bo th the· public :ind the· pri,·:Jll' sectors. It is not e no ugh lo ' - - - - - - --1-..l Bl Models, Social Network
t.emplates and software
provide volu111inous access to inform:Hion :ind expect good tkrisio ns to lw made '" a
result . Nt11nc·rous social. cultur:tl . :rnd educatio nal f:Ktor, inllue nrt· ho ,, well indi1·iduals
and organiza lio ns are ahlt' 10 i111pm\'L' their dec isio 11-m.1king .1hility, a nd nced to he
ind ude d in thc an:tlysis. CD~! c:111 reclil)' tlw defk ic'nc1· in decisio n making hy addi ng
lh.:,<' missing factors.

FIGURE 5 The Framework for Collaborative Dedsion Making.

Collaboration in Virtual Teams' Decision Making
lk ., trictio ns o n lra\'el bL'c:tUSt' o f the difficult econo nl\' force ma ny compa nies to fi nd a
1ww \\',I\' 10 work, <-o llabor:He . :ind make dec i, ions. Gartne r Inc. researchers be lie ve
th:11 thl' infor111:11io n tech no logy market respo nd~ to the need o f collabo ratio n in virtual a n in vestme nt d ecis io n . users ca n ra te the ir assumptio ns about future revenue,
tl'am, by crl'allng system, 1hat foste r a CD\I p rocess using socia l software . The business expense , o r interest rate and compare the results of those p re dictio ns with a key per-
appl icatio n o f soci:tl software techniques pio nee red by cons ume r-driven social fo rma nce indicator ( KP!) that measure, sales a nd profit. The BI platform could then
1w 1,vorks serYice., , such :1:- Facebook and J\lyspace. is well unde r way. O rganizatio ns update the predictio n model with actual interim res ults o n the appropriate KP!s, hdp-
al rl'ady use t·o llahor:llivc social software to keep mfo rmecl about w he re colleagues a re ing the users (participants in the KP!) exceed a criucal threshold, requiring :1 re think-
:rnd what th..:r a re d o ing and thinking. and to mo bilize them for urgent meetings to ing o f a decision. To day. collabo rat1on on decisions that are more s1rCitcgic 111 nature
addrc·,s prnhkms rksigning collaborati,·e e m ·ironme ms that e nable d ecis ion ma kers tha n eve r before-decisio ns that may transform 1he b usiness,-i nvolves nonroutine
lo disniss an issue, brainsto rm o ptions. e1·a luate the ir p ros a nd cons , and agree o n activ ities s uch as brainstorming d iscovering, innovating, Cleating and leading team,.
a course• o f action i, a na tural evolutio n o f the a bo\'e trend . Addi ng socia l softwa rc learning. a nd relating. The o utcome of manual processe, o f such dechion can easily
t·km t·n1, t,uch as tagging. rt'commendatio ns , ra tings. a nd conte xtual informatio n) be lost o r become part of corporate folklo re in the form o f anecdotes, wi1h no formal
e nrirhc•s 1lw n,ll:tho rat 1\'c e nvironment. making it (and the re~ult., deri ved fro m itJ more p roces s fo r dec is io n audit. assessment. and closed-loop learning. Cle:1rly, this is an
useful. art·a in ne ed o f an informatio n system to facilitate this manua l process, and CDM can
CD~I cnahk, III systems to tie information mo dele d in l.ll ,yste m., directl y 10 he an ideal mechanis111.
lhl' ckd, io n madl' 111 thl' collabor.lli\'e em·ironment. UI syste ms havc tradilionally hc..:n
Ol'L'l1iy di,connt·cted fro111 the hus111es, process. A., a rc., ult . it is ,omctime, difficult to sce
the husinl'ss 1·CI!ue o f Ill . t'l'l"n in the 1110,1 insightful repo rt., and a na ly,es. In addilio n, SECTION 10 REVIEW QUESTIONS
decisiun making has lwen considered an unstructured proces, that i, no t re peaiable, so 1. What is the logic o f rnmbining Bl :mc.1 soci:11 network>'
th..,re !s ,1 bck uf lools th.11 facilit,Jlc the work of 1he deci,ion make r,. Figure 5 , hows 2. Why is it refe rred to :1s collaborative decb1o n m:ikmg'
how Cl)\! too ls suppun the dedsion-makmg proce." .
3. What ca n you learn from the Figure 5'
HOW CDM WORKS Combining 111 I\ 1th rnllabrn:ll ion :rnd social sof't w arc p ro\'ide, ;1 4. What :ire thc m:1jo r be nefits o f CDM! .
. II· I . t'on ,,f ,ocbl network,!
d irect ,, a) tu show the 1·alue o f Ill hec.1u,c· lhl' :1 na ly1ic:tl insight., and mca,ure, are 5. What are thc ,pec ific contnhuuom to c<J a ,om 1
linked to h u:-111es, dt•, 1,ion, ,llld fr.1111ed 111 the ,oci:tl comext Fr,r cx:unple, in making 6. Expla in how CD,\ ! worb.
 Business Intelligence Im
. and Emerging Trends 1
.
Business Intelligence ImpIementation: Jmegra11on p t-rnemat1on: lntegra11on and Emerging Trend,
1
PPLICATION OPPORTUNITIES Binary: 00 11 exxco11101~
1100110101~...011 r 10~1100111110-..0:,10100
11 RFID AND NEW Bl A I e RFID wg, on palle ts a nd cases 1 11 1 1 1101
With a June 2003 mandate that its top .
JOO supplie rs p ac d
· ion . ~x·aJ-'.la l1 jump-sta n e a ) -yeu-oid
-o _) 00 10101100 101cr...01 1cm

shipped to stores in the Dallas. Texas. re~ r m·ted (but successful) use m a vanety of Manufacturer Product Serial N
;echnology that, until the mandate. had fou; ; Fl~ industry has b lossom e d . The li.S. ~--.r ~ ,--,' ~
~~00~
nl.clie areas. Since that annou ncement, t e. . im ndale: Target, Albe11son 's , and Decimal:
• r II ' d with il, O\\ n ' I I [SGTINJ
Depan ment of Defense soon ,o o\\e . .. 1 efforts focused o n t 1e argest sup- Chee~ [}.g,: Cw.it
. I 10 ' II 0 ·ed suJt mt1a 1
llesr Bu)• amo ng others. quick Y " · , ,_ G mble Gillette, Kraft) but have now needed for RFi0}
' • ( Procte r < • a · .
Pliers in the retail supply c1iam e g. , . \ I n 's n•·xt ?00 large., t s upp lie r, began
. r
spread tu include smalle r_reta1 1 sup~ ie r 5-\X•a 1-. a " - UCC-14
3 0023800 41813
(UpC for cases)
3
shipping ragged products m January_ _oo6 . tli • use o f rad io frequ e ncy wave, to
RFID 1s a generic rec no
h IOg)' th·it •
re 1er., to e ·
.
. .
, of . fam ily o f autom atic 1dentifica- FIGURE 6 Sample RFIO Tag Data.
. _ d II . Rf ll) is une examp1e •1 . .
identify ob1ects. Fun_ amenta ) · I b. 1·tous ba r codes a nd m agnetic ~trip, .
. 111· I1 •1J- 1·ncJude t 1e u 1qu ·
tion technologies. w c · so . ( d nanv or her areas) has used bar codt:s
.. . • ·t31·1 ·upph· cham an t .
Smee the mid- 1970s. t1ic re ' · . . Tl te ntial advantages of RFID ha,·e (e_pcglobalinc.orgJ. EPCglobal. Inc is a , ubo;criber-dri,·en o rgani1.ation o f industry lead-
f · ·
1 dent1f1cat1on i e po
as the pri mary form o automat ic · . h . s \X'aJ-\la rt T-1 rget ·ind rs and o rganizauo ns focused on creating global standard c - h EPC ·
· . . • I -cl b . Jar e retailer., ,u c 3 · • · • ' . • ' euse o f RFID. ' ,o, t e to ,upp<m the
prom pted ma n) comparnes ( e i. gI gr as a wa,· to impro\'e their , upply
Alhemon's) lo aggressi,·ely pursue this tee rno o . I .
cl h . d ce costs and increase sales. A!> illustrated in Figure 6. tag data . m their purest form. are a series of bmar.· dig-
I .
c 1a m an t u, re u · · : . f RFID srstem consist, o f a rag its. Th is set ~f bm_ary d 1gas can the~ be cr;nverted to the SGTI'.\ decimal equi,·al~t. As
Ho w does RFID " ·u rk! In its ,imple st o rm. 311 • • , •
b ·u I t"fed
1 1 ) an interrogato r ( 1.e .. reader). o ne o r more shown . an SGTI, 1s essentially a I.PC (LCC-14. for shipping-container identification)
( anached to the product to e en · _ ( ntro l the reader a nd capture with a serial numbt:r. The serial number IS the mo st important difference bem·t:en the
I d I re·1der and a computt r to co
ante nnae attac ,e IO t ie ' · . . b ~n ·nt"rested in using pas- !+digit CPC used today and the ~GTI'.\ contained o n an RFI D tag. 'X'ith l'PCs. compa-
·1 . J • ·ham has pnman 1' e~ 1 ~ ·
the data ) At p resent. the retat supp' c h · gnetic field created by the nies ca n identif\' the p ro duct family to which a case belongs reg. 8-pack Charmin
sive RFID tags. Passtl'e 1a1ssrecei,·e ene rgy fro m t e e_1ectroma _ . .
interrogato r (e .g . a reader) and backscatter information o nly "hen 1t ts req~ested. The tissue). but they c annot dis tinguish one case from another. 'X'ith an SGTI'.\. each case
15
pas;i\·e· tag will
· remam · e nergize · cl o n J)· " ·h·I 1 e il i, withm the mterrogator, magnetic uniquely identified. Thi, p ro\'ide s visibility at the case level rather than 1he produa-
fa mih· le,·el.
lleld. In contrast. acti1·e tags ha,·e a 1Jatte~ . o n board to energize - them. . Because. aaive ·one o f the a pplication s of the massi,·e amounts of data that arc genera,ed by Rf!D
tags han~ their own power source. tI1e;• d o n ·t nee d ·a reader to e nergize _ _them:
. mstead
. i; in supply chain management <Delen et al.. 2ffF J '-lost suppliers put a tag on a prod-
the,· can initiate the data transm1·ss1on · process • on the tr
· own · On the pos,uve side. . aa1ve uct as it lea\'es their facilit~ As a produa moves from the supplier to the retail distn-
tags• ha, e a longer read range. i..Detter
- accurae:· . mo re complex· rewritable informa uo n sto. r- bution center (DCJ and then o n to the retail o utlet. it ma, pas.s through a number 0f
age. and richer p rocessmg· capab1ht1es
, · · · (.\,fo ra d pour and Bhuptan i• -?()()5)
_ · O n the negatl\·e
_. . RFID-read locatio ns. Readers c:ipture and record the case·s tag data as che produa p:L'>:>eS
;,ide. due to the battery. aa1,·e tags have a limited lifespan. are larger m , 1ze than pass!\ e thro ugh tht:,e pomrs . .-\.s product is dehered to the distribution center. read porul.s
tags. and are mo re expensh·e Currently. most retail applications are designed _a_nd o per- (cre:ited b y stationary readers and antennae o n each side of the delive~- door) caprure
ated with passi,·e tag, . .-\ a h·e tags are most frequently fou nd in defense o r rruhtary sys- the palle t and case d:1ta. As a reprc,entati,·e example Table I traces the aaual
tem,. yet they also appear in techno logies such as EZ Pa,s. where tags a rt: lin ked to
a prepaid account. enabling d ri\·ers to pay tolls by driving past a reader rather than
stopping to pay at a tollbooth <C.S. Depa11ment of Commerce. 2005). _ TABLE 1 Sample RAD Data
TI1e most commonlv used data representation for RFID techno logy is the Elearon1c
l ocation EPC Datemme Reader
Prudut1 Code ( El'CJ. which 1s ,·iewed by many in the industry as the next generation of
the Lni,·er~al Product Code ( L'PCJ ( most often represented by a bar code). Like the CPC. DC 123 0023800.341813 SOO00C:}24 C3-04·C5 2: i 5 1~t,,yJ10
the EPC con.,i, t, o f a se ries of numbers that identifies produa types and manufacturer; DC 123 0023800 3418 13 50C0OC02L Y,..,-Q-9-05 7 5L (OUf?jO(
across the ,upply chain . TI1e EPC codt also includes an extra set of digit, to unique ly
identify item,. DC 123 0023800 341313 5000jQ{J24 C3-09-SS 2 2? 0~:00,..:-')
Currentl) . most RFII) tags contain % biLs o f data in the form o f serialized global ST 987 0023800.3418 i 3 S00J1J:02.: C-3-G9-'.,S 2: 3 i -ix::.-:,
1rade identification numbers (SGTI'.\l fur identifying case, or seria lized shipping con- ST 987 0023800 341813 50~~00')2L 03-'Y:1-JS 2~ SL 5-=-es f·ocr
1ainer code~ <SSCCJ fnr identifying pallets (altho ugh SGTI'.\, C3n a}50 be used to identify
ST 987 00238C0 3L 1313 50G00:;02.: : 1< :-s, . .: S;; ;,-; ':,:::·
pallets). The complete guide lo tag data ,tanda rds can be found cm EPCglo bal', Web site
ST 987 00238003418 13 50000:::)24 ':3-iS-C•s· ;2 ?~::<· JG-
ST 987 0023800 3,11g13 socsc-::2.i c3- 1·-':s i:; : 1 5-e ?S :,~c·
;n,., x·w,,n " Jd.Jp1e<l from ""' '"' n r<-....-:irch nm<lucte<l m colbbor:i11un wnh Or ildl HJrdgm c of the
I nl\L'T'lf", ,Jf ..\rk.Jrt'J:-- JnJ <ltrc.-aor of the l{f}D RL"'-<."Jrch Ce-mer ST 987 0023200 34 181.: sew: ::2.: sa-1·-:::: ·s~1 5~?! ~.:c·
ST 987 0023800 34 1813 5GGG:: J2~ ::~-n .-:,; :s..:; : : r ,._ . : '"7'
 Business Inidtigcnce 1
.
Business .
lntclhgcncc • . . Inic,.
lmplcmcn1a11on. •oration and Emcrf(ing Trmds mp1Cmentalion• 1 . .
. ntcgra11011 and Emerging Trend,
(SGTIN. 0023800.3418 13.~00000024) fro n1 its distributio n ce nte~ perfo~~ance. Delen et al. (2007 . '
movements of a _single case of pm d~~ of life at the box crusher. This particular case of res to capture this v1s1b1hty. ) proposed several performance meas-
11 ti RFID can also be used by compani . . .
arrival at the d1stnbuuon center to ' e . A u ·t 4 was JJUt on the conveyor systeni
• 1· ·1 · center 123 on ug s · . . . ' es to unprove t:"tl 1 lt•r the efficiency
..
product arrived at c 1stn >ut1on f (I' r»·id·ibility only one read JJcr J10rt·il . s of vario us ex1st111g processes by incrc or effective.
J •I rtlv there·1 ter. or " • ' • cl I
on August 9. and departec s 10 • •. t·il ,,,.. re removed .) It arrived ·n stor nes.
·cicnce suggeste t 1at RFII) can reduce ti
menta1 process ch
· · angc. For example early
d r .. Js ·1t ·1 smg1e por ·
per event is shown; up icate re.ic · ·•
987 about J 2 hours after le:1v1ng t1le
l~C ·
~
went almost immediately to the sale.~ lloor
. . I . ·k
• · "
·
cv1 "
. •hou~e (Katz, 200,1). Instead of scanning .• ·h
w,1re
le amount of tim .
eac case of prod • d" .
- .
c to receive product at a
'

·
returned from the ,ales floor a11out 5 I10 ur · ' ·•md was put 111 t11cI 1.1c11 room where
s. htcr de scanner, RFID-tagged product can he r ,, d · . uct Ill 1v1dually with a bar•
co · . ca automa11cally •n . . · ,
. st;1yed until. the followmg
11 · . c1.,1y, " ,Jier • c it om:c again went . tn. t1ll' sa .es oor, I . returned
. G·IIettc repo rted a reduction in pallct•n:ceivinrr 1. . . • a rece1vmg•door portal.
' .
about 45 mmutes later, anc1I 1cn wenI t 10 the box· crusher !or ult1m;lll' t11sposa . 1. his prod. ~ 1sc.:concls clue to Hl·ID . ,.., 1111c at 1L~ d1stribu1io •-
and its tag-at•source Strate, (K·nz '
f
n u.:nter rom 20 to
2
. w·is not drastically changed (i.e. forklifts uiilogyd d' ·, OOG). Tiic process of receiv-
UCI most Iy ,o r 11ows t1lC pres·c·r,·IJecl rotite but veers ' off course
. toward the cm1 as II goes out
ing • . . . . ' · ,I e t11e product a · b •~ •) Tl
the sales floor and back again on two separate occasio ns. . . . I1,111ge was ehrrnnallng !he need tu manually sc-in ti . . s e ore . lt o nly
· t of clat",, from T-1hk
WI1at can tI1e smppe • I tell us (as . Olll'
. s11nple instance ol RFII) c • . . 1, . • .. _, , I
ore efficient. rocessc, c .1 11 a Ml be made mon: effect· · ' le proc1uct.. fhus, the process hecamc
data)? If we examine closely, the data offer up several ms,ghts. . . ni cl . . .
, 76 percent re uct1on 111 o ut•Ol•stock, by using RFID (l·it·i t
1ve. 1·or example, ' W·,l•M·1rt
· · found
First, knowing the dates/ times of movement is important lor ensurmg such things ,t ~·ts to be rcplen1shed .. (H,1rdgrave ct al. 2006) The , Iwlf, eo gencr.11c
. • I . •. 11ct1cr hsL5 of prod•
as freshness of the product, tracking reca lls, or getting prod ucts to the sto res in a Ul · . cl ' · · · r P cn1s11111cnt process was no1
ch:1ngcd hut improve by the use of RFII)_ Wal-Mart has also reduced the number of
timely manner (especially for time-sensitive products) For exampk, cons1cle~ thL· situ. llnecessary ma nual orde1' by IO percent thus m·ik·ing tli . cl · If .
ation faced by companies offering promotions on their products . Advert1~1ng Oneal u , . . . . . • . . ,, . ,. · • c or enng ant orecastmg
,ystc1n more cflcctive (Sulli~,lll , 2005). HI-I D is also being used in receiving to reduce the
and national) is generally launched to promote 1he products, and the late ol the prod-
number ol errors, wh1Ch 11nproves inventory accuracy, ultimately leading belier
uct is determined in the fi rst few days after the promo tio n begins. II th" product is not forecasting and reple111sh111ent. 10
on the shelf in a timely manner, sales may suffer. Gillette has USl'd RFII) lo determine
whether stores have stocked their shl'lvcs wilh particular itc.:ms for a partin1lar prom 0 . RFII) data have been used 111 many other related applications. For example, per•
lio n. It found that in those stores that u,ed RFID 10 move a product from !he hackroom ishahlc goods present Mnne of the biggest challenges for supply chain managemcnl
to the shelf bdore a promotion ,tarted, sales Wl'rc ,18 percent higher than those that due to the high number of va riants with different pcrishability characteristics, require-
did not move.: the product in a timely ma1111L·r (Evans. 2005). RFII) provided !he data ments to account for the flow of goods in some supply chain,, and large volumes of
and the insight need..,d . goods handled over lo ng dista nces. Although food represents a major portion of the
Second, the data provide insight into the backroom pron:ss of moving frdgh1 to the perishables portfolio , many other products, including fnc,sh-cu1 nowers, pharmaccuti·
sales floor. In the example provided in Table I. we see that the product moved to thL· cab , cnsmetic·s, and auto part, among others, require strict environmental controls to
,ales lloor twice. Perhaps the first lime it \\'as taken out , it did nol fi1 on the shelf and was retain their quality. Due to the extremely large volumes of goods handled. the likdi•
returned to the backroom. The ,econd time it \Will out, it fit on the shelf. Thh "unncccs• hood for problems increases (Sahin ct al. , 2007). The elimination of even a small per•
sary case cycle'' r.1ises sever.ii questions. Moving the producl out to the sa les lloor and .:enta;(e of spo ilage, fu r example, adds up to a significant improvement 10 the supply
back unnecessarily wastes precious human resources. and the more timt•s a product is chain. Therefore , the optimal management of the perishables supply chain 1s of
handled, till· higher the chanu:s arc that it will be damaged. Also, why did the product paramount impo rtann: to businesses in this markc1 segment.
make two 1rips to till· sales floor' If the product was not needed until August 11 (!he day The success of today·~ highly volatile perishables supply chains depends on the level
it fit on the shelf\ why was ii delivered 10 the sto re on August 10? This could signal a (and the timeliness) of product visibility. Visibility should provide answers to !he questions
problem wilh !he forecasting and replenishment system. Or, perhaps a wo rker placed a of "Where is my product'" and ··What is the condition of my product?" Already, several
manual order for till· product when it wasn·t needed. If so, why was the manual order companies have begun expcri1m•nting with RFII) fnr perishable,. Consider the following
placed' It rnuld be that the product was in the backroom but wa, no t visible or easy to cxampil's.
find . Rather than taking the time to look for it, the work'-'r manually ordered the product.
• Samwurth Brothers Di~trihution (UK; sandwiches, pastries, etc.) ha, implemented
While the product wa, in u:rnsit, another worker found the product in the backroom and
real-time tcmpcratun: monitoring in its 1rucb (Swedberg, 2006a). . .
stocked the shdf. When !he manually ordered product arrived, it would not fit on the • Fresh Express uses HFII) to look al !low•through of tht' product coupled wuh exp1·
shelf and an unnecessary tnp (for the manually ordered product) was crealcd. How can ration elates (Imel, 2007).
RFID help in this situation? When a worker attemp1s to place a manual order, the system
• Starbucks uses tem1wr:tturc.: t1;1cking for food-preparation products going 10 retail
c.111 check to see if a case currently exists in the backroom (as determined by a backroom
read). II a case exists, !he S) SIL'm rnuld help the worker find the case by using a hand held outlets (Swedberg, 200(,hJ. . . . _ . ?Q()")
or portable RFII) reader. • Sysco usl', !{Fil) lo check load rnndilions w11hou1 openmg doors (Collirn,, - ~. ·
• i\ regional re~tauran1 chain. (70(l rc,1:n11.ant.,·) uses. . HFID-ln,i.:d
. • · 1empera1ure
. ,1110111
.•
Third, it provides :1 preciSl' indicatio n of how lo ng it look 1hc.: producl to move . to clctern1ine rond1t1011,
..
luring o 1· I1cc1· p;lllie,.
. cg,.
. '"' • onions· • ·'llld so on m.1nker,
through the supply chain and the exact time between ead1 of the key read poinls- on a
Glse-by·case basis' This type of insighl has never before been possible . Lead limes are 200~).uses RFII) to monitor tL'lllPL'r:1111r,· prof,1k-, ell· pro(Iuct,· moving from Singapore
• TNT
gener'.dly estu:iat.ed ba~<.!d upo1~ the mllvemen1 of large 4uantilies of product famili<:s
throu_g h the ')_slem. Also, v1sib1l1ty al the ,1ore level was not possible before RFI I) _ Thb to Bangkok (llachddor. 20tl6J. .
v1s1hilny requ ires develo11inn 1h • -1J · · . I C· , ·
111clt1tlL ·, ., \Try in1ere,1ing emerging
-~ c • I p1opna1c measures 10 he able to determ ine 1he ·1·h , 1· I 1· c·1• , A111·1l1n1 o n ,1., c · .
e ·. nt o . 1.1pti.:r ' . I Ill Th . owr:ill lesson 1, I11a1
applicatio n tha1 incl ude, an innovalin· u, e of HI·II ' anl L
 Busmes, Inttiligenq, Im ,
p.<:meraatvm, lmegrauon and E .
. tion and Emerging Trends metgmg Trends
Business Intelligence Implemcntauo n. Integra

,s .\'C amount, o f data that can be analyzed to achieve

RFlD techno logy generates ma · 1 . . or purpose fo r the \'Cry existence
. . h . . an,·\ em·1ronment. a m:11
great mstg ts mto a comp 1 · . strates another emerging oppor-
of BI and decision suppo n . The following section I 11 u.
runitv for Bl arising fro m massive data being collected

.,11I Carner 9 2,36 PIA .• l

SECTION 11 REVIEW QUESTIONS
San Francisco ts currently extremely slow.
1. What is RFID' Activity is , , normal.
2. What kinds of data are read recorded through Rfl D'
3. What can a company learn b) reading RFID at a distribution center?
4. Search online for applications of RflD m health care. entenainment. and sport,.

12 REALITY MINING
Just as RFID generates major data streams ri pe for funher analysis through business
intelligence that can assist in decisio n making. another massive data source is emerging.
alo ng with the technologies. to make sense of the data . Indeed. a new name has been
given to this type of data mining- r eality mining. Eagle and Pe ntland ( 2006) appear
to have been the first to use this term. Alex (Sanely) Pentland of MIT and To ny Jebara
of Columbia University ha,·e a company called Sense :'\etworks (sensenetworks.comJ
that focuses on the development of reality-mining applicatio ns. The material in this sec-
tion is adapted and included with permission from Sense Networks.
Many devices m use by consumers and businesspeople are constantly sending o ut
their locatio n information . Cars. buses. taxis. mobile pho nes. cameras. and personal
navigation devices all transmit rheir locations. thanks to network-connected positio ning Now showing top locations people go to
techno logies such as GPS. \\'i-Fi. and cell tower rriangulation. Millions of consumers from where you are.
and businesses use location-enabled de\·ices for finding nearby services, locating 0 - 0 -•· un:sual • . ~
friends and family. navigating. tracking of assets and pets. dispatching. and engaging in
spons. games . and hobbies. This surge in locatio n-e nabled services has resulted in a
massive database of historical and real-time streaming location informatio n . It is, of
course. scattered and by itself no t , ·er\' useful. Reality mining builds o n the idea that
these datasets could provide re markable rea l-time insight into aggregate human activity
trends.
By analyzing and lea rning from these large-sca le patterns of movement, it is
possible to identify distmct classes of beha,·iors in specifi c conte xts, called "tribes· FIGURE 7 CitySense Example View of San Francisco.
(Eagle and Pemland. 2006). Macro~ense is an applicatio n platform de,·e lo ped by Sense
Networks that takes the data being generated by all of these mobile devices and . after
spatial and time-based cleaning. applies propnetary clustering algorithms to these mas-
sive datasets to classify the incoming data streams as belo nging to different types o f tribes at any g iven place and time. making it possible to infer what it means when a user
custo mers, clients, and so o n. This approach allo\\'s a bu,iness to better understand its is there at that place and time. For example. rock clubs and hip-hop clubs each retain
custo me r patterns and abo to make mo re in formed decisions abo ut promo tions. distinct tribal distributions. \X'hen a user is o ut at night. Macrosense learns their preferred
pricing, and so on.
Sense Ne_tworks_ is now adapting thi~ general technology to help consumers find
tribe distribmio n from time spent in these places. Sense '-:etwmks says dial
in furu_re
releases of Citysense. tribes ·will be included. and when users nStt other cmes. th ey_'I\Lll
people w1th surnlar mte re~ts. This appl ication is called Ci1ysense. Fig ure 7 includes be able to see hotspots recommended on the I1as1·s Of ti11•s distribution and combined
a map ot an area of San Francisco. It is best seen in color at sensenetworks.com/
citysense.php. but even the black-and-white image shows that it is possible to learn With overall acti,·ity informatio n. ·h f hi'p-hop
,. cIu b hot,poi<· · users
Users who go to rock clubs 1,·1.11see roch · 'I\ o requenI .
where p~ople are go'.ng a1 this panicular time. Each clot represents the presence of peo- both will <ee both. The quesuon
ple a nd ,mmiates to show panerns of how people group and move around the city over clubs will see hip-hop ho tspots. and tho, e " 'I10 !!0 to · . ·ry
• . . .. I .. . •red for these users-even m a ct
time. Sense Netwo rks' core anal t' .. I I f Where 1s everybody like me ngh.1 no\\ ' 1' 1 JU~ ,m,\\c .•. , • fl ·bes makes 1t
_ _ Y ica Pat orm. Macrosense. is also able to a nalyze the th - I · ti , re3 I world \ ta t 1le u,e o n
aggregate mformation shown in City,en,e to cluste r use rs ·ind identify tribes ey have never \"isited before S1mu :iling 1" • . ollecting personally iden-
., l I ,. 1 -h U\t' r I \ It1l OLII C ~
Macrosense is able to ident1f, I · I ·1 ' · Poss1) e to provide personalize, sen·tCe, 10 "c
/ w l IC 1 tn )e, are whe re by sampling the d i~tributio n of
tifiable information.
 Business Intelligence I I
nd rnp ernentation: I
Business Intelligence Implementation: Integration and Emerging Tre s
-------- - - - - - - - - - - ~ - ntegration and Emerging Trends
267
h d ·me nsionality of loca ti o n data , reality
Bv app lying algorithms tha t re d u ce t e 1 l(eyferms
· . h t' vity and movem e nt between the m
mining can characterize places according to t e ac 1 ' h .h · .catio n service knowledge base
• · I I catio n data t ese a 1gont ms uncover 3pp II
From massive amounts of hig h -d11n e ns1o n a o ' provider (ASP) problem solving
. 11 oduce huma n unde rstandable repre knowledge management utility
trends. mea ning. a nd relat1onsh1ps to eventu a Y pr . . - reality rnining
. . . h data to a utomauca lly make inte llige nt brainstorming . . m1ddleware
sentat1o ns . It then becomes possible to use sue RF!D computing
collaborative dec1s1on mobile social
predictions and find importa nt matches and simila rities be tween places. and people . virtual
rnaking (COM) robot
Loecher et a l. (2009) provided some details of their algonthms . Essenually , activity networking community
data integrity . multi_dimensionality social network analysis
information as recorded th ro ugh cell phone data is used to stud y the behavioral links virtual team
functional integrauon software
between places in the real world . This a lso takes into account the time of the da y, phys1Cal integration vinual worlds
privacy software as a service
because one group o f people may go to the one locatio n fo r work m the m o rning; inte ractivil y Web 2.0
(Saas)
however, an entirely different group of people may frequent the same location at night
because of a nightclub n earb y. Due to the tempo ral sensitivity of the number and type
of people frequ e nting a place (which can be far mo re dynamic than a static Web page
;u;tions for Discussion
o n the Internet), the raw data describing places in the rea l world require a staggering
numbe r o f dimensions . 1. some say th at on-demand Bl will be the dominating
According to the material provided b y Sense Networks, it attributes 487,500 dimen- model of delivery of Bl. Discuss. 8. What a'.e the benefits and issues of using virtual worlds
for decJSion support?
sions to every place in a city. The dimensions are based on the moveme nt of people in 2. Discuss che benefits and limitations of collaborative deci- 9. If you had an opportunity to panicipate in a virtual career
and out of that place over time a nd the places those people visit before a nd afterwards. sion making in vinual teams.
fair: w~t factors would motivate and inhibit your partici-
Their "Minimum Volume Embedding" algorithms reduce the dimensio nality of location 3. Distinguish between physical and functional integrations pauont
and temporal d ata to two dimensions while retaining over 90 percent o f the information . in impleme nting a large BI project for markeung decision 10. "Location-tracking-based profiling (reality mining) is
This allows for visualizations of data that a llow huma ns to better understand key dimen- suppon. powerful but also poses privacy threats.- Comment.
sions to ex1ract key relationships in the flow of people in a city, such as the flow o f those 4. Discuss the value of embedded intelligence in BI applica- 11. What are the major characteristics of Web 2.()' What are
tions. Will intelligent BI be able to replace humans' Discuss. some of the advantages of Web 2.0 applications'
shopping, commuting to a nd from work, o r socializing. In addition, they also employ
5. Discuss why it is so irnponant co connect databases and 12. Discuss the use of virtual communities to do business on
historical data combine d with demographic, weather, a nd othe r variables. Once a broad
back-end systems to Bl. the Internet.
unde rsta nding o f the spatia l behaviors in a city is available, companies can leverage the
6. What are the potential benefits and challenges of using 13. How can wikis be used to facilitate knowledge man-
continuously updating clusters to better understand their own customers from sparse RFID in sup ply chain management' agemenc?
location data , discover trends in aggregate consume r behavior for correlation with finan- 7. Given chat RFID data streams are large but only include 14. Discuss the relationship between mobile devices and
cial indicators, a nd predict demand for services and places. basic cracking information, how would you deri"e useful social networking.
One key concern in employing these technologies is the loss of privacy. If someone information from these screams' You may want to read
can track the movement of a cell phone , the privacy of that customer is a big issue . But Delen et al. (2007).
Sense Networks claims that it o nly needs to gather aggregate flow information, n o t indi-
vidually identifiable information , to be able to place someone in a tribe.
See the Sense Networks Web site (sensenetworks.com) for the latest develop- Exercises
ments in this a rea . The technology is evolving fast. Baker (2009) and a recent story in 8. Enter sensenetworks.com. Review the Citysense appli-
Internet Exercises
Economist (2009) highlighted some of the possible a pplicatio ns of reality mining for cation and media reportS about it. Write a report on what
1. Real-time decision support by BI application i.s cited as a
business government . Fo r example , a British com pany ca lled Path Intelligence you learned. .
major benefit. Surf the Internet to identify examples and 9. Enter the Web sne of a social network service (e.g..
(pathintelligence.com) has d evelo ped a system called FootPath that ascertains how benefits. Visit Teradata University Network. (TUK). and myspace.com or facebook.com) Build a home page.
people move within a city o r eve n within a store . All of this is done by automatically information-management.com. Add a cha! room and a message board to your s11e ~ mg
tra c king mov eme nt without any ca meras recording the m oveme nt visually. Such 2. Find some biogs dedicated to BI implementation and the free tools provided. Describe 1he o1her capabdmes
analysis ca n he lp determin e the best layout for products o r even public transportation identify some of the current issues they discuss. available. Make at least five new friends.
optio ns . The au to ma ted data collectio n e nabled through ca pture o f cell phone a nd 3. Enter three BI vendors (e.g., Cognus IB~I company, 10. Enter pandora.com. Find out how you can create and
Wi-Fi h o tspo t access points presents an interesting new dimension in nonintrusive Business objects, a SAP company, Oracle) and find their sha re music wi1h friends. Why is ihis a Web 2.0 apph-
mark et research data collectio n a nd , of course , microana lys is o f such massive activities in the on-demand Bl. Write a report. carion' I
datasets . 4. Enter Oracle.com. Find what it offers in middleware for bs com Go to blogroll. Find three b ogs
11. Enter smartmo · · · f
BI and check the scacus of ilS fusion project. . rela1ed to Web 2.0 and summarize their ma1or eature~.
SECTION 12 REVIEW QUESTIONS 5. Enter the RFIDJournal Web site (rfidJournaLcom). Lisi al mer mashable.com and review the latest ne" s
I ' chain management 12. E . . I networks and network strategy . Wnte a
1. Define rea lity mining. least two applications related to supp ) h Ith regarding soc1a
and two applications in one of the following areas: ea
2. What types of data a re used in reality mining' . . nd law enforcement. report. - Vi111Jal Life" (2008) at businessweek.
care, education, entertainment'. a of ihe inter- 13. Aecess Hol/fs Myazine/ contenl/06 18/b3982001.htm?
3. Briefly describe how the data are used to create p rofiles of users. 6. Enter blog.itradefair.com. What are !ome com/prln mag - · h I'd
d meet the seven residents in t e s i e
4. What o the r applications can you imagine if you were able to access cell phone loca- esting applica1ions of virtual trade fairs. d mpur- chang•gl an . r· ble thal shows the manner in which
tio n data' Do a searc h on location-enabled services. 7. Enter youtube.com. Search for videos on_ clou _co show. Pre pare a a
ing. Watch at least two Summa rize your f, ,np nd
 " '"111~,s Intelligence I I,
mp e111cnta11on· I
ntcgr:uion and Emerging Trends
,ing Trends 269
Integration and Emerg d of chapter Application Case
....-----:-=
268 Business Intelligence Implemcn1:1tion:
s with other people 's avatars . Writ e a fl1
:1v:1 tar i nterac t.
they make money, the required skills, and the reason a-Cola's RFID-Based Dispenser Serves a New T f .
report. . myspace.com and find out coc . . ype O Business Intelligence
they do it in Second Life . , book.com ,111<1 .
9. Enter ,ace orations use the sites to conduct
14. Identify two virtual worlds (other than Second Life) . II known corp • .
how I0 we - . . . \I ·o compare the lunctionalities of c0 en-,clCo i'tto· ' thdevelo
e soft -dnnk giant based in Atl ·int a G
.
.
' · , eorg,a
p a way 10 111crcase sa les and f· ' reader being located in the dispenser. Each night ti . f
15. Emer secondlife.com and 11nd any islands that re late com111ercial ac(l v1t1es. i ~ ' v:intc ., . . , • . . inc1 ~
\ ,.,. way tO test ll C" prot1UCIS. During the SU lll f mat,on recorded is sent to Coca-Cola 's S1\I' dat , ielm or-
to BI and decision support. Write a report on what they ·itl!:1pc , . ., . · Iller O , . · • a ware 10use
th.e two sites.. I · ·ntrodu ci ng or considering the , o09 , thL' co111p,111y ,n., t,t lk<.1 new self-serve soft-drink sy:~lem at us Atlanta headquarters via a " rivate Ve ·.
offer. I I osp11 ·1 s are , w 1relc . . k ,, n zon
10. Severa '. · 'f .10 11llellige nt bl'clsicle assistant th at 2jj,pcn.", c•rs· with HFID technology 111 selected f-t st-food . ss networ . Microsoft System Center Conf1gu rat
16. Enter yedda.com and explore its approach to knowl- · t oductt o n
111 r . °·
.· .. s and sw ff with a patient 's medical
. •
, · . • Ca lifo rnia, Georg1:1, and Utah, and plans 10 eventt
restau-
Manager for Mobi le Devices ru ns at the Coca-Cola he~od~
edge sharing. ,rov1des physict,ll1 · • ,~1nt!'i i 11 ia11 y
1 b r r diagnosis and prognosis. The sys- •• • • • , • . •
. ti <! he dtspe nsc rs n.111onw1dc 1 he new dispe quarters and cont rols the dispensers through the wi reless
record data ase o •
.
. I f
. ,y infornrnti on requ trcc rom the dlslrt 11L 1 . . • nsers, network Additionally, Coca-Cola can use the wireless nct-
I
tem supp ,es ,11 I , Freestyle, hold up to 30 na vor cartridges, which enahl
Group Assignment . •.
.
.• I records makes chagnoses , ascd on c dc<I 1 l'ff . e \\:ork to send in~tru c1ions fo r new mix combinati ons to the
p·H1ent s mec1te,1 · . · . .,,e rs to create .100 c I erent drtn k5, including soda .
1. Investigate the status of on-demand 131 by visiti~g vendors · . , d prescri bes mcdica11ons and other 1rea1- , u~to r . , _ ~- s, dispensers and to shut down recalled ca rtridges instantly
symp1oms. ,111 ·ttices, teas, :ind n.,vorccl w,Hers. Each beverage requires only nat1onw1de. ·
(e.g. Cognus, IBM, Omcle) and using search engines (bmg, ments. The system includes an expert. system as well as \ few drops of navormg. Cu~tomers use the dispensers by
google, yahoo), and also visit forums (e.g. , TSN, ~pnews. a DSS. The system is intended to el11n111ate some hun~an Th is short case 11l ustrates the potential of new tech-
• 1 r sing a brand and na voring options on the dispenser's
com. utilltycomputing.ccom/forum). Identtfy ma1or erro r and impro\'e patient care. You arc a hospital l. JO ). . • nologies when innovative uses are ueveloped by creat ive
concerns a nd achieveme nts, a nd prep:1rc :1 report and
1.CIJ panel , whteh runs on the Wmclows CE operating system. mtnds. Most of the technologies described in this chapter are
administrator and are very excit ed about the benefits The RFID technology w,11 allow Coca-Cola 10 test new
class presentation. nascent and have yet to see widespread adoption. Therein
2. Prepare a list of examples of situations in which social for 11eI p,1. ,·ent
1
s However. when
• • •
you called
••
a, stalf
• drink fl avors and conet:pL~, observe what fl avors and combi- lies the opportunity to create the next "killer" applic.rion. For
meetin~. the fo llowing questions were r:11sed: Wha t 1f
software can support 131 application. Provide references n:it ions customers arc choosmg, 1dcn11fy regional prefer- example, use of RFID is beginning 10 grow. with c-Jch com-
the sys;em malfunctions? What if there is an undetected
and companies' names. cncc..-.,·, ·ind
, keep track of the amou . nts they . arc drinking. Bi• pany exploring its use in supply cha ins. retail stores, manu-
error in the program or the rules' The system, once
3, Item-level RFID tagging will be useful to reta il stores as be ing able to use the fl avors 111 multi ple combinations facturing, or service oper.ttions. TI1is case illustrates that wtth
implemented, takes full responsibility for patient ca re
well as to customers. Stores already use RFID to tr:1ck through the dispensers, the company can see what new com- the right combination of ideas, networking, and applic-Jtions,
beca use physicians rely on it. A loss of data or an error
inventory more accurately. Customers could use RFID to binations are most po pular and then produce them for other it is possible to develop cre:11ive technologies that have the
in the progr:11n may lead to disaster. For example, sup-
locate items more easily, possibl y even using a within- nw rkcts. This process saves Coca-Cola money. Previously. it potential to impact a compan)"s oper:ttions in mu ltiple ways.
pose there is a bug in the database progra.m ,. and . as
store GPS to find an item. However. RFID does have wou ld bollle new prod ucts and send them out to various
a result. a critica l piece of information 1s m,ssmg from
some potential privacy issues . Form two groups. One m:irkcts. Sometimes , the products were canceled after only a
the patient's record. A physician who relies on the sys- QUESTIONS FOR END OF CHAPTER APPLICATION CASE
group will argue for RFID adoption and the other group year or two because th ey did not gain in popularity.
tem could prescnbe a drug on the basis of mcomplete 1. What is the benefit of RFI D for reducing inventory in this
will argue against it. The RFID technology will also help individual restau- case?
data . The consequence of th is mistake could be life
4. Search the Web for "virtual trade shows." Form rwo teams rants keep track of when ii ,s time to order new canridges,
threatening. Another poss ibility is that some of the 2. How would a restaurant benefit from having RFID-
arguing for and against the use of virtual worlds in busi- thus increasing in ve ntory accu racy , and determine what
rules in the knowledge base might not be accurate for enabled syrup cartridges?
ness applications. O:t\'ors are most po pul ar so that they know which ones to
5, Location-tracking-based clustering provides the potential all patients. Would you implement such a system? Why 3. What benefi t would a customer derive fro m the new
or why not' ,tock. Ind ividual restaurants are able to view reports dispenser'
fo r personali zed services but challenges fo r pri,·acy.
11 . Read Chae et al. (2005) . Su mmari ze all the ethica l concerning be,·erage consumption created from the data col- 4. What 1.ssues might impact the widespread acceptance of
Divide the class in two parts to argue for and against
issues described there and then find examples in each lected fro m the RFID system and reorder products by using this dispenser'
applications such as Citysense.
6. Each group is assigned to ., social network that features area . an e-business port al develo ped by Coca-Cola . The tech-
business acti,·it ies (e.g.. Linkedl n. Xing. Facebook, 12. Divide the class into two sections: those who believe that nology even all ows them to see what beverages are most S011 rce. A<laptc<l from M 11 Weier, "Coke's HF/D-Base<l Dispenser,
Second Life). Each group will then register with hellotxt BI will replace business analysts, and those who oppose popul:t r :tt ditfr r,nt times of the day Redefine Uusincss ln1clli).(CJKc ,'· hifurmatio,i Week, June 6, 2009,
the idea. Conduct a debate . The HFID technology in this case works by a RFID informatlonwcck,com/ story/ showArticle.jhtml?art!cleID•Zl
.com 10 find out what is going on in the site with regard
m recent business activities. \\'rite :t report and make a 13, Identify eth ica l issues related to manageri al decision d11 p lw ing pl:tced on each na,·or ca rt ridge and an RFID 7701971 (accc" c<l July 2009)
class presentation. making. Sea rch the Internet, join chat rooms, and read
7. With Hello Th"T. log on to the site and enter you r test articles from the Internet. Prepare a report on your
message into the dashboard. Then select the sites you find ings.
want to upda te w ith your nt" w st:t tu s mes.sage . and 14. Investigate the America n Bar Association's Technology
Hello Th'T does the rest, reaching out to you r va rious Resource Center (abanet.org/tech/ltrc/techethlcs References
pages 10 add your new status message. It is a grea t cen- .html) and nolo.com. What are the major lega l and I.laker. S / 2009, February 261 . "Mapping a New , Mobile
tralized way to keep all you r ,·arious profiles as up-to- societa l concerns and adva nces addressed there? How J\nandarajan, ~I. (2002 , January). "lntc-rnet Ahu, c in the
Internet.- Business ','(leek. businessweek_com/magazlne/
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Linkedln starus by answering the question -\X'h:n .tre 15. Exp lore severa l sites related 10 hea lth ca re (e .g , Asif, S. (2009) . " An Oi·en ·icw of Bu" ness lnt d hgcnce
Z()(m _
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