Post on 02-May-2018
Bridging BI with Our Business
Toa CharmRegional Head of BICC, Asia Pacific, HSBC
Chairperson, BISID, Hong Kong Computer Society
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� >20 Years of Management and Consulting Experience i n IT – Regional Head of BICC, Asia Pacific, HSBC– General Manager, BI, Oracle Greater China– General Manager, Kingdee Asia Pacific– Managing Director, Hyperion Greater China– Consulting Manager, JOS Technology, Jardine Pacific– Consulting Manager, Informix North Asia
� Advisory Roles in Professional and Academic Bodies– Chairperson, BI Special Interest Division, Hong Kong Computer Society– Advisor, Hong Kong Trade Development Council (TDC) - China Trade – Advisor, Hong Kong Polytechnic University – Department of Computing – Advisor, Hong Kong Baptist University – School of Business– Advisor, The University of Hong Kong – Information Systems Associations– Director, China International Enterprise Resources Mgt. Association
� Academic Background– Doctor of Business Administration (candidate)– Master of Arts (Business Administration)– Bachelor of Science (Computer Science)
Toa CharmRegional Head of BICC, Asia Pacific, HSBC
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Agenda� Why BI Matters to Our Business?
� How Do We Find out the Answers without and with BI?
� Evolving from Reports to BI
� The Power of BI
� Lessons Learned from Our BI Journey
� Summary: – BI Best Practices– BI Special Interest Division of Hong Kong Computer Society– Recommended BI Books and Web Sites
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Why BI Matters to Our Business?
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Dear Bankers, Can We Answer These Questions Today?
Performance Management
IncreaseCustomerRetention
Customer Value Optimization
Bankers
Risk Management
ComplianceManagement
• How can I predict Customer Life Time Value ?
• Who can I effectively cross-sell to ? What is the best product to cross-sell ?
• Through which channels have I acquired my profitable customers?
• What are the behavioral patterns that lead to attrition ?
• What will make my customer most satisfied ?
• How can I timely identify branch service quality issues ?
• What is my profitability by lines of business and products?
• What are the touch points my customers access most ?
• Can I have day to day reporting by branch ?
• Can I track delinquent behavior ?
• Am I alerted when limits are breached ?
• Can I have an integrated view of market, operational and credit risk?
• Do I have an information framework to meet BASEL II requirements ?
• Can I quickly identify and track potentially fraudulent transactions ?
• Am I effective in preventing money laundering ?
and more questions….
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Maximize Customer
Relations/Mktg
Optimize Profit
Drive Accurate Inventory Decisions
Retailers
•How can I maximize in-store selection while minimizing inventory?
•Is it possible to have unit-driven demand to tailor assortments & space allocation at store/shelf level?
•How can I avoid deep discounting & improve the return on inventory investment?
•Can I incorporate revenue, inventory position & gross profit to maximize profitability by item/location?
•Can I perform multi-dimensional customer segmentation leveraging demographic info, prior history, campaign responses, etc
•How can I identify the best product/service offers to build loyalty?
Store Optimization
• How can I optimally rationalize real estate costs and store layout effectiveness?
•How do I optimize lease versus buy decisions?
Loss Prevention
•Can I track over/shorts by store, shift, cashier, register or any combination?
•Can I effectively monitor and ensure minimal returns, overrides?
Dear Retailers, Can We Answer These Questions Today ?
same for other industries like Telco, Manufacturing , Logistics, Trading, Tourism, etc.
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How Do We Find out the Answers without BI?
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Information Explosion
Lots of administrative and manual works
Lots of spreadsheets with lots of macros
??
?EMPLOY ACCOUNT_STATUSORDERSORDER_LINES
PRODUCTS
REGIONS
CUST SHIPPERSQUAL_NAME
POSITIONQUALIFICATION
POS_NAME
COUNTRIESSUPPLIERS
Inaccessible data sources scattered in your company
Lots of books & articles
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How Do We Find out the Answers with BI?
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Insight-DrivenDecisions Powered
by BI
Insight-DrivenDecisions Powered
by BI
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GIS
Real Time Monitoring
DashboardBalanced Scorecard
Metric AnalysisMulti Dimensional
Report
Strategy Map
Exception Based
Notification
Document Manager
Communication Thread
Web Enabled
Centrally ManagedAccess & Security
Common Metadata
Operational System
Integration/Data Integration
Automated Batch
Processing
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BI for Bankers
Balance Trend
Account Openings
Share ofWallet
DelinquencyAnalysis
HoldingsValue
FraudPrediction
Accounts Analytics
Service Analytics
Marketing Analytics
RelationshipAnalytics
Product and Sales
ExecutiveAnalytics
Churn Propensity
Customer Satisfaction
ResolutionRates
Service RepEffectiveness
ReferralsAnalysis
ServiceTrends
Campaign Scorecard
ResponseRates
CustomerLifetime Value
ProductPropensity
LeadsAnalysis
Loyalty andAttrition
Call Reports
Customer Satisfaction
AttritionTrends
Customer PortalAnalytics
MaturityAnalysis
Events Triggering
Product SalesTrends
Referralstracking
HouseholdPenetration
ProductBundling
ProductPropensity
ProductProfitability
BusinessPerformance
SalesPerformance
MarketingResults
ServiceEffectiveness
ProductTrends
AssetsValue
Addressing questions from the Front Office to the B ack Office
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BI for Retailers
Item Basket Analysis
Markdown Scorecard
Location Sales Productivity
Item Contribution
Comp Store Sales Analysis
by Dept
Promotional Performance
Merchandising Merchandising AnalyticsAnalytics
Store Operations Store Operations AnalyticsAnalytics
Category Category AnalyticsAnalytics
Loss PreventionLoss PreventionAnalyticsAnalytics
Customer Customer AnalyticsAnalytics
WorkforceWorkforceAnalyticsAnalytics
POS Flow by Transaction,
Item, etc
Hourly Sales Trend
Comp Store Analysis
Store Lane Type Comparison
Sales Per Sq Foot
Tendering Outlier
Sales Flash by Category
Top/Bottom 10 Sales Performing
Product Price History
Pack Sales –Contribution to
Item Sales
Product Cluster Analysis
Item Price Elasticity
Cashier Over/Short
Register Override
Employee Discounts
Store discounts
Location Override
Transaction Analysis by
Type
RFM Analysis
Customer Segment Migration
Anonymous Customer Basket
Analysis
Frequent Shopper Product Mix
Transaction y Customer
Customer Cluster Analysis
EmployeePerformance Trend
Employee Transaction
Summary
Employee Lane Type Comparison
Employee Customer Outlier
Employee Entry Method
Employee Entry Method
Addressing Questions from the Front Office to the B ack Office
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BI: Top of the CIO’s List
Gartner CIO Agenda 2007 – Top CIO Priorities
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BI: Critical Strategy for C-Levels
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0
60%
50%
40%
30%
20%
70%
10%
80%
Current % User Penetration
66%66%51%51%
33%33% 30%30%10%10%
ERP SCM CRM BI Tools
BIApps
2010 Seat Estimates0
60
40
20
80
100
Estimated User Potential
59 Million
ERPERP
CRMCRM
SCMSCM
BITools
BITools
BIAppsBI
Apps
98 Million
Sources: Goldman Sachs Estimates & Department of Labor
BI Market GrowthLow User Penetration and High User Potential
BI Market GrowthLow User Penetration and High User Potential
Lots of rooms for growthLarge # of licenses
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Evolving from Reports to BI
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BI Evolution Modelsource: SAS Institute
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Start
(Aspiration)
Half-Way
(Analytical
Company)
Journey Completed
(Analytical
Competitor)
Thomas Davenport’s “Competing on Analytics”
From Aspiration to Analytical Competitors (1 of 3)source: “Competing on Analytics”, Thomas Davenport
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Start
(Aspiration)
Half-Way
(Analytical
Company)
Journey Completed
(Analytical
Competitor)
Thomas Davenport’s “Competing on Analytics”
From Aspiration to Analytical Competitors (2 of 3)source: “Competing on Analytics”, Thomas Davenport
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From Aspiration to Analytical Competitors (3 of 3)source: “Competing on Analytics”, Thomas Davenport
Start
(Aspiration)
Half-Way
(Analytical
Company)
Journey Completed
(Analytical
Competitor)
A D
ata-
Driv
en E
nter
pris
e
Developing a Culture of BI Best Practice and Community
Thomas Davenport’s “Competing on Analytics”
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BI Assessment Methodology“ How well is your company doing in terms of BI?”
� 5 Levels of BI Evolution– Level 5: Innovate
• Expand top line
– Level 4: Optimize• Optimize bottom line
– Level 3: Integrate • Enterprise data warehouse
– Level 2: Consolidate • Departmental
– Level 1: Operate• Individual
Source: SAS
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Business Intelligence Evolution Model: Level 1
� Level 1: OperateInformation Maverick
– Focus on the individual– Information is personal power– No information standards– Legacy information tools– Personal productivity toolkits– Little benefit to enterprise
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Business Intelligence Evolution Model: Level 2
� Level 2: ConsolidateSilos of Information
– Functional group focus– Information = political power– Departmental standards – Departmental tools
– Silos of information
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Business Intelligence Evolution Model: Level 3
� Level 3: IntegrateThe Data Warehouse
– Enterprise focus– Informed view of operations– Enterprise standards – Enterprise information
architecture – Enterprise-wide information
access– Clear core business
processes & value chain
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Business Intelligence Evolution Model: Level 4
� Level 4: OptimizeBottom-Line Focus
– Market alignment– Incremental improvement– Information to measure, align,
improve processes– Fact-based decisions – Adaptive information
infrastructure – Alignment/efficiency drives
market leadership
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Business Intelligence Evolution Model: Level 5
� Level 5: InnovateTop-Line Focus
– Leverage value chain in new business areas
– New markets, products and business models
– Continuous innovation process and culture
– Prototyping ideas; driving best to market
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BI Evolution ModelMeasured along 4 critical dimensions
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Business Intelligence Evolution Model MatrixBusiness Intelligence Evolution Model Maturity Level
Human Capital Knowledge Processes
Culture Infrastructure
Level 1:
Operate
Execute assigned tasks
Personal and unstructured
Values individual performance
Offers tools for personal productivity
Level 2:
Consolidate
Participate in processes
Intra-departmental
Breeds functional competition
Offers functional independence
Level 3:
Integrate
Think globally and are empowered
Inter-departmental and structured
Encourages big-picture thinking and cooperation
Offers an enterprise view
Level 4:
Optimize
Collaborate and are flexible
Aligned to adjust with market demands
Fosters collaboration and adaptation
Adapts readily to market changes
Level 5:
Innovate
Strive to think out of the box
Flexible to accommodate disruptive change
Rewards creativity and diversity
Anticipates market changes and innovates
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Power of BI
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Insight-Driven Actionse.g. Analytic Workflows – Sales Analytics
Business Objectives /
Issues
GainInsights
Take ActionDrill to Opportunity to investigate, escalate
and intervene
Are opportunities large enough for me to
intervene?
What are the opportunities getting
stuck?
Are deals getting stuck in certain sales stages?
How’s the sales pipeline?
Manage overall sales performance
Drill to D
etail
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Real-time or Right-time BIe.g. Proactive Actions for SLA changes, Next Best-Bu y
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BI Embedded in Processe.g. Loan Rate Decision
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Management Dashboarde.g. Credit Risks Monitoring and Alerting
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BI in Geographical Information Systems (GIS)e.g. sales turnover by provinces in China
Map of Mainland China
North Region of China
City of Beijing
Drill intoDetails
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Ubiquitous or Mobile BI (Anytime, Anywhere)
Anywhere Anytime
Access to any BI you need
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Optimization e.g. Real-Time Forecast and Analysis for Workforce
Time
Actual# of staff
Required# of staff
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“Search” versus “Discover”
Data Mining
Text Mining
DataRetrieval
InformationRetrieval
Search(goal-oriented)
i.e. traditional BI
Discover(opportunistic)i.e. Data Mining &
Text Mining
StructuredData
UnstructuredData (Text)
Text Analytic
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Business Drivers for Text Analytics
Retail
Identify the most profitable customers and the underlying reasons for their loyalty.Brand management
Finance
Retention of current customer base using call center transcriptions or transcribed audio.
Insurance
Identify fraudulent claims.
Track competitive intelligence.
Brand management
Life Sciences
Identify adverse events.Recommend appropriate research materials.
Manufacturing
Reduce time to detect root cause of product issues.Identify trends in market segments.
Telecommunications
Help prevent churn and suggest up-sell/cross-sell opportunities for individual customers.
Text Analytics has numerous applications in any industry
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Text Miner Text Analytic
Source: SAS
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Emerging BI Technologies� Predictive Analysis� BI Search & Text Analytics� Advanced Visualization (Cross-over of Digital
Entertainment and BI � Rich Reportlets� Web-based BI� Dashboards� Alert Notifications� Scorecards/KPI� Embedded BI in Operations� Report-based Interactivity� Microsoft Office Integration� Mobile BI� .. more
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Lessons Learned from Our BI Journey
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Key Challenges� Corporate Aspects
– Executive Sponsorship– Priority of BI Projects– Funding– Business Justification/Cases
� Local vs Regional vs Global Requirement
– Data Model – Tactical vs strategic choices– Silos of almost everything
• Data, Talents, Resources, Knowledge, Hardware, Software
� Data– Single Version of the Truth:
multiple data sources to multiple data marts
– Data Quality– Data Governance and
Stewardship – Data Capture– Lack of Data– Data Definition / Data Dictionary
� Standardization– BI Tools– S/W and H/W– Administration– Process standardization– Business definition of KPIs,
business items, values, etc.
� Employees– Data-Driven Culture– BI Knowledge and Training– Effective Use of BI– Innovative Use of BI– Lacking of sharing experience
(either success or failure)
� Skills of BI Team (more than IT)– Communication– Domain knowledge– Business Consulting– Promotion and Technology
Showcase
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Key Barriers of Strategic BI Deployment
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# 1# 2
# 3
Source: Cognos Office of Strategy – Standardization / BICC Research ( M.Dizekan)
Source: Cognos
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Key Components of Our BI JourneyAdoption of the Industry standards and best practices
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Ten Core Functions of BICC (Business Intelligence Competency Centre)
Source: Cognos
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Key Objectives of BICC
BICC Facilitates Strategic BI DeploymentSilos World
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BICC Case Study: Nedbank
� “The BICC delivers massive value. Speed to executionis increased by a factor of four to five times.”
� Our main motivation in setting up the BICC wasknowledge management: getting a core group of people in one place so that we could be sure of retaining key learnings and methodologies. This is the key to getting full value from technology.”
� “The challenge in establishing a BICC is to recruit people who offer the right skills, behavior, competencies and, above all, the right attitude!”
� The BICC has enabled Nedbank to integrate all of its SAS applications, which itself brings major productivity gains, and to adhere to IT standards while putting business benefits first. “The BICC ha s enabled Nedbank to achieve quick but sustainable wins on projects large and small,”
� Company: Part of the Old Mutual Group, Nedbank offers a wide range of wholesale and retail banking services through three primary business clusters: Nedbank Corporate, NedbankCapital and Ned bank Retail.
� Business Issue: Nedbank Retail wanted to capitalize on its massive information assets and investment in business intelligence software to expand business among profitable customers.
� Solution: In 2003, Nedbank Retail set up a BICC along side other competency centers. Its mission was to attract, develop and retain talented people with the skill sets required to maximize ROI on business intelligence projects.
� Benefits: Nedbank Retail has seen up to a fivefold decrease in implementation times on business intelligence projects for customer departments. It has also ensured that skills are shared and knowledge retained within the organization.
Simon MarlandChief Information Officer, Nedbank Retail
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Prioritization of BI ProjectsBusiness-Driven BI Value Creation
Pick those processes that BI can add values into:
� Management Processes– Planning, Budgeting, Performance Monitoring/Assessment, Process
Improvement, Cost Analysis, Optimization, etc.
� Revenue Generating Processes– Customer Segmentation, Campaign Management, Channel
Management, Sales Management, etc.
� Resources Processes– Product/Service Development, Order Management,
Manufacturing/Operations, Supply Chain, Purchasing, etc.
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BI Opportunity Map (BI Portfolio)
Why Do it?Easy Wins
High Risk/RewardPlums
RiskB
usin
ess
Impa
ct
Project AProject B
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BI and DW Platform Standardization
DM
Cube
Static
Dynamic
Event
ETL
Portal
Data Store LayerData Present
LayerData Access
Layer
Data Security Management
Meta Data Management
Client Layer
EDW
ODS
Premium
Transactions
Claims
Transactions
Commission
Transactions
Policy Info
Financial Transactions
Data Source Layer
Insured Info
Product Info
IBM DataStage IBM DB2
ETL
ETL
ETL
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BI Tools integrated with SOA
BI Integration with IT Infrastructure
OracleKerberosiPlanetMSFT ADNovellCustom Others ..
Oracle Data Integrator (Sunopsis)Oracle Warehouse BuilderInformaticaAscentialOthers ..
Any JSR 168 Portal Data Mining toolse.g. SPSS, SAS ERP, CRM, SCM, etc. Excel, Outlook,
Lotus Notes ..
Oracle RDBMSOracle OLAP OptionMicrosoft SQL Server & Analysis ServicesIBM DB2TeradataEssbaseSAP BWXML, Excel, Text
Portals Data Mining Applications Desktop Tools
Security Data Access Data Integration
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BICC Collaboration Site: Knowledge Sharing
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Promotion and Technology ShowcaseBuilding BI culture across the enterprises
Building
BI Culture
e.g. data forum,
BI Best Practice Award, BI
workshop, etc.
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User raise a call by Email or Phone
BICC User Support Workflow
BICC local team investigate
BICC regional team investigate
Escalate to Regional team
Application Team
Question related to background
job, Data Source
User Department Representative
Related to business definition
Reply user and Update Knowledge Base
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BICC User Helpdesk
Other BICC User Helpdesk Features:•Helpdesk Status Dashboard•Web-based Case Status Enquiry•More…
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Summary: BI Best Practices
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Top Ten BI Business Practices (1 of 2)
1. Measure success in multiple ways
2. Understand how to add values to key processes and making use of Luck, Opportunity, Frustration and Threat to kick start BI initiative and maintain them through the end
3. Gain executive support
4. Start with solid data foundation and continuously improve data quality, breadth and timeliness
5. Align BI strategy with business strategy
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6. Find the relevance for BI for every worker in the company as well as for customers and suppliers
7. Use agile development process instead of waterfall
8. Organize BI teams and experts with a focus on enterprise e.g. BICC
9. Standardize BI tools which meet both user and business
10.Fostering a culture of fact-based decisions and data-driven enterprise, discouraging data hoarding, promoting your successes and the applications, and present data visually
Top Ten BI Business Practices (2 of 2)
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Hong Kong Computer SocietyBusiness Intelligence Special Interest Division (BIS ID)� Professional and Career Development for BI and IT P ractitioners
– BISID helps members continue to further their professional qualifications through workshop and certificates program by working closely with local and foreign governing bodies, BI authorities and other professional associations.
� Values Creation for Businesses in Different Industr ies through the Best Use of BI – Business executives in different industries share and learn innovative and proven BI applications and
technologies that help them create values to their businesses.
� Bridging BI Professionals with Business Executives – Quarterly networking hours and social activities are held to foster interaction & experience sharing among
BISID members, HKCS members, other IT associations, business and professional associations.– The BISID members are usually BI experts/practitioners/researchers, business executives who are keen on
leveraging BI to add values to their business and and differentiate their companies from others, or simply those who are interested in BI.
� Access to BISID Knowledge Repository, Publication, Research on the latest BI Market Trend, Best Practices and Technology Develop ment.
– Authorized access to our BISID Knowledge Repository, our regular BISID Newsletter & publication– Invitation of annual Business Intelligence (BI) conferences, regular BI business and technology forums and
corporation visits
� Our current members mainly come from large multinat ional companies, local SMEs, major BI vendors and consulting firms and major uni versities
– Users: MTR, Jockey Club, HSBC, Cathay Pacific, Ericsson, etc.– BI Vendors: Cognos, Business Objects, SAS, Teradata, Informatica, etc.– Universities: CityU, PolyU, HKU, etc.
For enquiry, please contact Miss Sky Hui (Tel: 2834 2228 Email: bisid@hkcs.org.hk)or visit our BISID web site http://www.hkcs.org.hk/ en_hk/sg/bisid/index.asp
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Recommended Books on BI� Competing on Analytics (2007)
– Thomas Davenport and Jeanne Harris
� Smart Enough Systems: How to Deliver Competitive Ad vantage by Automating Hidden Decisions (2007)
– James Taylor and Neil Raden
� Successful Business Intelligence: Secrets to Making BI a Killer App (2008)
– Cindi Howson
� The Profit Impact of Business Intelligence (2007)– Steve Williams and Nancy Williams
� Business Intelligence Competency Centers (2006)– Gloria J. Miller, Dagmar Brautigam, Stefanie V. Ger lach
� Business Process Management and The Balanced Scorec ard (2007)– Ralph Smith
� Business Intelligence for Dummies (2008)– Swain Scheps
� Introduction to Business Data Mining (2007)– David Olson, Yong Shi
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Recommended Web Sites for BI
� Key BI Portals– The Data Warehousing Institute www.tdwi.org– The Business Intelligence Network B-eye-network.com– Intelligent Enterprise www.intelligententerprise.com– DM Review http://www.dmreview.com/
� Key BI Vendors– SAS www.sas.com– Teradata www.teradata.com– Cognos www.cognos.com– Business Objects www.businessobjects.com– Oracle www.oracle.com/bi
Bridging BI with Our Business
Toa CharmRegional Head of BICC, Asia Pacific, HSBC
Chairperson, BISID, Hong Kong Computer Society
toa.charm@hsbc.com.hk