DB2 UDB's High-Function Business Intelligence in e-business

2 High-Function Business Intelligence in e-business

1.1 e-business drivers

A number of factors have changed the business environment in recent years —

from events such as global economics and competition, mergers and

acquisitions, and savvy and demanding customers — to technology advances

such as the World Wide Web, cheaper PCs and a host of Internet access devices

such as PDAs, cellular telephones, and set tops. This is shown in Figure 1-1.

Figure 1-1 Changing business environment

Organizations clearly recognize that they can no longer dictate systems or

clients, that the Internet cannot be controlled, and that downtime will impact more

than employee productivity.

Events

Business

Global economics and competition

Mergers and acquisitions

Savvy customers

Technology

World Wide Web

Cheaper PCs

Internet access devices such as

PDA, palm, set top, telephone, etc.

Compressed time cycles from product conception to market

Customer Relationship Management

Reduce costs by streamlining processes

Exploit emerging opportunities

Changing Business Environment

Chapter 1. Business Intelligence overview 3

To survive and thrive in such an environment, organizations must adapt and

innovate — business as usual could be a recipe for disaster. More so than ever

before, the following issues are critical. It is now mandatory for a business to:

򐂰 Acquire and retain loyal and profitable customers. Businesses must become

more responsive to its customers needs.

򐂰 Reduce costs by streamlining and transforming business processes,

improving the productivity and efficiency of its employees and business

partners and customers (self service and cutting out the intermediary — or

disintermediation, as it is now called — is an important element here). While

reducing costs is a perennial favorite that is generally characterized by stop

and starts, this now takes on a new urgency.

򐂰 Become competitive with very short product conception to implementation to

return on investment (ROI) cycles.

򐂰 Pursue every possible channel such as the Internet, and exploit emerging

opportunities to ensure success and avoid failure.

Businesses recognize the urgency to transform various business processes for

competitive advantage.

Note: With government bodies, the emphasis is more on keeping its

constituents happy — since acquisition and attrition are not relevant in

most cases.

4 High-Function Business Intelligence in e-business

These processes are highlighted in Figure 1-2.

Figure 1-2 Business critical processes

These are the business critical processes we are concerned with:

򐂰 Customer Relationship Management (CRM), which has to do with identifying,

understanding, anticipating and satisfying customer needs, that is, building

loyalty through improved customer satisfaction.

򐂰 e-commerce, which is a new channel for an organization's goods and

services to a whole wider global market.

򐂰 Supply Chain Management (SCM), which has to do with inter-company

business processes. This involves improving the efficiency (and reducing

costs) of interactions with suppliers, partners, distributors, customers, etc.

Business Critical Processes

An e-business organization connects critical business systems

directly to employees, customers, suppliers and distributors, via the

internet, intranets and extranets to gain a competitive advantage