ICTICTICTICT‘The only sustainable source of advantage is the

ability to learn faster than your competitors’

A de Geus

‘Knowledge and skills of employees is what really differentiates a firm from its competitors’

Tobin

ContentContentContentContent

Changing world of work Information as a science Why do we need BI? How do we derive BI from KM?

Closing – The ICT landscape

Radical changeRadical changeRadical changeRadical change

INNOVATION, CONCEPTUALISATION creators & empathisers

farmers

GLOBALISATION Dismantling of national barriers, and consequent movement of goods, services, capital, human resources, and management ideas that creates economic value.

INFORMATION, TECHNOLOGY

knowledge workers

INDUSTRIAL factory workers

TECHNOLOGY Explosive advances in speed

and effectiveness of international communication,

transportation, production and distribution.

High

Low

AFFL

UEN

CE,

TEC

HNOLO

GY, GLO

BALI

SATIO

N

HUNTING

Land Nature Capital Knowledge

Period of discontinuity 1750 - 1850

TIME

18th century 19th century 20th century 21st century

AGRARIAN Period of discontinuity 1960 - 2000

Schumpeter’s successive Schumpeter’s successive industrial revolutionsindustrial revolutionsSchumpeter’s successive Schumpeter’s successive industrial revolutionsindustrial revolutions

DIGITAL NW’S, SOFTWARE NEW MEDIA PETRO

CHEMICALS, ELECTRONICS, AVIATION

ELECTRICITY, CHEMICALS, INTERNAL COMBUSTION ENGINE

INNO

VATIO

N &

TEC

HNOLO

GY

WATER POWER, TEXTILES, IRON

TIME 1785-1845 1901-1950 1951-1990 1991-2020

STEAM, RAIL, STEEL

1846-1900

TerminologyTerminologyTerminologyTerminology DataData = elements of analysis. A collection of raw facts in isolation. They convey meaning = elements of analysis. A collection of raw facts in isolation. They convey meaning

but are not useful by themselves;but are not useful by themselves; InformationInformation = data with meaning or context; = data with meaning or context; KnowledgeKnowledge = information with meaning; concepts, experience, insight that provide a = information with meaning; concepts, experience, insight that provide a

framework for creating, evaluating and using information; framework for creating, evaluating and using information; mix of experience, contextual info, mix of experience, contextual info, expert insight that provides the framework for evaluating & incorporating experiences & infoexpert insight that provides the framework for evaluating & incorporating experiences & infoBecomes embedded in documents, routines, processes, practices, normsBecomes embedded in documents, routines, processes, practices, norms

WisdomWisdom = knowledge plus insight; = knowledge plus insight; Intellectual capitalIntellectual capital (IC) = possession of the knowledge, applied experience, (IC) = possession of the knowledge, applied experience,

organisational technology, customer relationships and professional skill that provides it with organisational technology, customer relationships and professional skill that provides it with a competitive edge in the market. (Some authors merely term IC the difference between a a competitive edge in the market. (Some authors merely term IC the difference between a company’s market value and its book value); company’s market value and its book value);

Business IntelligenceBusiness Intelligence (BI) = deep exploration and integration of all (BI) = deep exploration and integration of all processes and processes and systems that transform data to information and knowledge, e.g. systems that transform data to information and knowledge, e.g. Data mining;Data mining; Data warehousing;Data warehousing; Strategic decision support.Strategic decision support.Technology = complete set of knowledge and techniques to meet market demands & social needs Engineering (synthesis) = the application of science to the needs of humanityScience (analysis) = systemized knowledge derived through experimentation, observation, and study. The methodology used to

acquire this knowledge..

Information scienceThe field of professional practice and scientific enquiry devoted to effective and efficient solutions to problems of creating, capturing, sharing and distribution of information (qualitative and quantitative).

BIThe set of business processes and systems for collecting and The set of business processes and systems for collecting and analysing business information;analysing business information;The technologies used in these processes, andThe technologies used in these processes, andThe information and knowledge obtained The information and knowledge obtained and usedand used from these from these processes.processes.

Knowledge management (KM) The organisation, creation, sharing and flow of knowledge within organisations. The process of systematically and actively managing and leveraging all aspects of knowledge in an organisation

Terminology (2)Terminology (2)Terminology (2)Terminology (2)

Beneficiation (1)Beneficiation (1)Beneficiation (1)Beneficiation (1)

IT: SUPPLY OF INFORMATION

INFORMATION IS: DEMAND FOR INFORMATION

Creating an environment in which

the appropriate systems can be

identified to satisfy the demand

Designing and implementing technologies to satisfy demands

Creating the environment in which supply is to take place

Establishing the detail of business requirements and application needs

DATA

KNOWLEDGE/ BI

Operational advantage

Strategic advantage

eventsevents

symbolssymbols

rules & formulations

rules & formulations

datadata

knowledgeknowledge

wisdomwisdom

informationinformationCognitive driven

Data driven

awareness

intellect

values

representing an event

Beneficiation (2)Beneficiation (2)Beneficiation (2)Beneficiation (2)

Relationship between Relationship between information & business:information & business:

Relationship between Relationship between information & business:information & business:

Provider/user model Provider/user model Transactional relationshipTransactional relationship Business specifies its needs, IS deliversBusiness specifies its needs, IS delivers

Partnership modelPartnership model Stronger shared goal & ownershipStronger shared goal & ownership Recognises the need for flexibility on both sidesRecognises the need for flexibility on both sides

Pervasive modelPervasive model Synthesis of above Synthesis of above Focus on communication between IS & businessFocus on communication between IS & business Clear def of responsibilitiesClear def of responsibilities Accommodates/anticipates changeAccommodates/anticipates change IS provides generic info infrastructure, business applies IS provides generic info infrastructure, business applies

infrastructure (language of the business) to its needsinfrastructure (language of the business) to its needs

Laudon & Laudon, 1997: 371Laudon & Laudon, 1997: 371

BI systemsBI systemsBI systemsBI systemsShareknowledge

Distributeknowledge

Capture & codify knowledge

Createknowledge

Group collaboration

systemsGroupware

Intranets

Knowledge systemsCADVirtual realityInvestment workstations

OA systemsWord processingDesktop publishingImagingElectronic calendarsDesktop databases

AI systemsExpert systems

Neural netsFuzzy logic

Genetic algorithms

Tech

nolo

gie

s:Soft

ware

& h

ard

ware

SYSTEMS APPS(OLTP, especially ERP)

SAP, People Soft, Baan, JD Edwards,

SSA, Rubico

SYSTEMS APPS(OLTP, especially ERP)

SAP, People Soft, Baan, JD Edwards,

SSA, Rubico

Information delivery matrixInformation delivery matrixInformation delivery matrixInformation delivery matrix

OAE-mail,

Desktop pub, Word processing,

Facsimile,Video conferencing

OAE-mail,

Desktop pub, Word processing,

Facsimile,Video conferencing

BISAS, SAP, Hyperion,

Cognos, Business Objects

BISAS, SAP, Hyperion,

Cognos, Business Objects

DBMSOracle,

Excel, Sybase, Informix, Access,

Lotus Notes, DBase

DBMSOracle,

Excel, Sybase, Informix, Access,

Lotus Notes, DBase

ERP apps

Alignment Alignment Alignment Alignment

Aligning corporate strategy

Aligning business strategy

Aligning ops strategy

Information/knowledge

IS/IT

Knowledge/systems levelsKnowledge/systems levelsKnowledge/systems levelsKnowledge/systems levels

FunctionalOperationalDay to day

StrategicExecutive

Filter & compress

TacticalMiddle

Weekly, monthly, yearly

Business operations

Support the monitoring, controlling, decision

making & administrative activities

Support the long-term planning &

activities & transactions

Ops systems that monitor elementary

activities & transactions

Vision, strategy

EIS

MIS &DSS

TPS

Pellissier & Campbell, 2000Pellissier & Campbell, 2000

learning

Model for the creation of BI Model for the creation of BI using KM (1)using KM (1)Model for the creation of BI Model for the creation of BI using KM (1)using KM (1)

Data/infoData/info

Tangible data

(DBMS, OLTP)

Tangible data

(DBMS, OLTP)

Intangible (people)

data

Intangible (people)

data

portals

Tangible knowledge &

virtual DB

Tangible knowledge &

virtual DB

BIBI

innovation

Think about the organisation as a systemThink about the organisation as a system Build & facilitate communities of practice Build & facilitate communities of practice

& learning& learning Culture of knowledge creation and Culture of knowledge creation and

distributiondistribution Focus on issues of personal development Focus on issues of personal development

& mastery& mastery Create less hierarchical, more self Create less hierarchical, more self

organising structuresorganising structures

Model for the creation of BI Model for the creation of BI using KM (2)using KM (2)Model for the creation of BI Model for the creation of BI using KM (2)using KM (2)

BI chain - real-time info, BI chain - real-time info, knowledge & strategyknowledge & strategyBI chain - real-time info, BI chain - real-time info, knowledge & strategyknowledge & strategy

NEED CAUSE EFFECT

costeffectiveness

cust delight

profitability,growth

infrastructure

productivity

quality

strategy

intelligence

knowledge market position

IM/KM/SCM Measure benefits

e.g. DATA

ENTERPRISE ARCHITECTURE - A FRAMEWORK

Builder

SCOPE(CONTEXTUAL)

MODEL(CONCEPTUAL)

ENTERPRISE

Designer

SYSTEMMODEL(LOGICAL)

TECHNOLOGYMODEL(PHYSICAL)

DETAILEDREPRESEN- TATIONS(OUT-OF- CONTEXT)

Sub-Contractor

FUNCTIONINGENTERPRISE

DATA FUNCTION NETWORK

e.g. Data Definition

Ent = FieldReln = Address

e.g. Physical Data Model

Ent = Segment/Table/etc.Reln = Pointer/Key/etc.

e.g. Logical Data Model

Ent = Data EntityReln = Data Relationship

e.g. Semantic Model

Ent = Business EntityReln = Business Relationship

List of Things Importantto the Business

ENTITY = Class ofBusiness Thing

List of Processes theBusiness Performs

Function = Class ofBusiness Process

e.g. Application Architecture

I/O = User ViewsProc .= Application Function

e.g. System Design

I/O = Data Elements/SetsProc.= Computer Function

e.g. Program

I/O = Control BlockProc.= Language Stmt

e.g. FUNCTION

e.g. Business Process Model

Proc. = Business ProcessI/O = Business Resources

List of Locations in which the Business Operates

Node = Major BusinessLocation

e.g. Business Logistics System

Node = Business LocationLink = Business Linkage

e.g. Distributed System

Node = I/S Function(Processor, Storage, etc)Link = Line Characteristics

e.g. Technology Architecture

Node = Hardware/SystemSoftware

Link = Line Specifications

e.g. Network Architecture

Node = AddressesLink = Protocols

e.g. NETWORK

Architecture

Planner

Owner

Builder

ENTERPRISEMODEL

(CONCEPTUAL)

Designer

SYSTEMMODEL

(LOGICAL)

TECHNOLOGYMODEL

(PHYSICAL)

DETAILEDREPRESEN-

TATIONS (OUT-OF

CONTEXT)

Sub-Contractor

FUNCTIONING

MOTIVATIONTIMEPEOPLE

e.g. Rule Specification

End = Sub-condition

Means = Step

e.g. Rule Design

End = ConditionMeans = Action

e.g., Business Rule Model

End = Structural AssertionMeans =Action Assertion

End = Business ObjectiveMeans = Business Strategy

List of Business Goals/Strat

Ends/Means=Major Bus. Goal/Critical Success Factor

List of Events Significant

Time = Major Business Event

e.g. Processing Structure

Cycle = Processing CycleTime = System Event

e.g. Control Structure

Cycle = Component CycleTime = Execute

e.g. Timing Definition

Cycle = Machine CycleTime = Interrupt

e.g. SCHEDULE

e.g. Master Schedule

Time = Business EventCycle = Business Cycle

List of Organizations

People = Major Organizations

e.g. Work Flow Model

People = Organization UnitWork = Work Product

e.g. Human Interface

People = RoleWork = Deliverable

e.g. Presentation Architecture

People = UserWork = Screen Format

e.g. Security Architecture

People = IdentityWork = Job

e.g. ORGANIZATION

Planner

Owner

to the BusinessImportant to the Business

What How Where Who When Why

John A. Zachman, Zachman International (810) 231-0531

SCOPE(CONTEXTUAL)

Architecture

e.g. STRATEGYENTERPRISE

e.g. Business Plan

TM

CONGRUENCE

CONVERGENCE/DIVERGENCE

Time

Know

led

ge

PLATO’S IDEAL WORLDFormalist

Conceptual/idealTruth/false are absolutes

PLATO’S IDEAL WORLDFormalist

Conceptual/idealTruth/false are absolutes

MECHANISTIC WORLDDeterministic/classical world

Determined by rules and laws

MECHANISTIC WORLDDeterministic/classical world

Determined by rules and laws

QUANTUM WORLDDetermined by

non-linear events, chaos and complexity

Innovation

QUANTUM WORLDDetermined by

non-linear events, chaos and complexity

Innovation

Pellissier, 2004

ICT:ICT:Information & Communications Information & Communications TechnologyTechnology

ICT:ICT:Information & Communications Information & Communications TechnologyTechnology

Data ManagementData Management Information Management Information Management

MIS, MITMIS, MIT Process managementProcess management Systems thinkingSystems thinking

Strategic Information ManagementStrategic Information Management KMKM BI, CIBI, CI Value of Information (cost, value, use, form, content & context)Value of Information (cost, value, use, form, content & context) Information Strategy Information Strategy Alignment with business/corporate strategyAlignment with business/corporate strategy E-commerceE-commerce Scorecards, dashboardsScorecards, dashboards Information AuditInformation Audit Quantum mechanics, chaos & complexityQuantum mechanics, chaos & complexity C4 convergence (Communications, computers, content & consumer electronics)C4 convergence (Communications, computers, content & consumer electronics)

InnovationInnovation Non-linearityNon-linearity RenewalRenewal Systems thinkingSystems thinking