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The business model should intelligently draw together all the
information from various historical and real-time sources. It should
then make this information available to the business users in a way
that is easy to understand and navigate, without them needing any
technical knowledge of underlying systems. Designing the business
model is frequently the most time-consuming and contentious portion
of any analytic application development cycle because it defines how
the data is hierarchically structured.
For example, a financial services company typically defines a
particular territory by regions, broken out by districts and
supported by a client relationship manager. This structure enables an
end user to navigate the business by starting at the country level,
selecting a country and drilling down to see the regions of a
particular country, drilling down again into a particular region to
see each district, and then drilling down to see the client
relationship manager associated with a particular district. The user
can then drill down to an even deeper level and locate the names and
account balances of each client associated with a particular
relationship manager.
The Right Information at the Right Time Defining the various
hierarchies and data relationships is critical to ensuring that
information is easy to find. Executives, managers and frontline
employees need varying degrees of information, presented in a format
that allows them to perform critical job functions more effectively.
For example, a consumer goods company's sales manager needs to know
total revenue by brand per quarter and the average length of a sales
cycle for the various types of distribution outlets to negotiate
better business terms. By contrast, the company's call center service
representatives need to access their average call-handling time
relative to pre-agreed targets. Marketing managers want to know which
customers to target in forthcoming campaigns to effectively up-sell
and cross-sell their products.
A business model defines the information the user can navigate and
display. However, it doesn't actually do any of the navigation and
displaying. For that purpose, organizations need to evaluate and
select a user presentation tool that will convert the information
into reports, charts and graphs. The presentation tool must enable
users to interact with the information, such as filtering portions of
the data, drilling down into more detail or navigating between
different reports. Typically, this tool must also provide some level
of generic portal functionality so organizations can flexibly design
how they want the data to be presented.
The reports, graphics and dashboards should be designed to answer
users' most common questions and satisfy most of their immediate
needs for information and insight. However, answers to some questions
will often lead to further questions, which will require additional
reports or graphs. Traditionally, IT departments created the report,
which invariably resulted in a significant delay and potentially led
to lost business opportunities. To maintain and update accurate
reports, the presentation tool must provide an ad hoc interface to
the data. This component enables users to quickly create their own
analyses by selecting the types of data they'd like to see in the
report or graph. Such a self-service model allows users to receive
answers to specific questions in minutes, not weeks.
Many years ago, industry pundits began pointing out the need to marry
data analysis tools with operational systems to maximize your
enterprise's competitiveness. In response, many companies were
created to provide these analysis tools. This gave rise to the
industry known as business intelligence.
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