Theory and Practice of the Business Analytics - Assignment Example

Chapter Question1. What do you understand by the Business Analytics Model? Answer. Business Analytics (BA) Model- The BA model provides a structureof the business analytics of an organization. The objective of BA model is to achieve the strategic objectives of the organization by changing business processes. The BA model composes of five layers: 1. Top layer- Top management- The top management creates the business strategy for the business analytics in the top layer. 2. Second layer- Operational decision makers- In this layer the objectives are established for the operational business processes. 3. Middle Layer- Reporting, controlling and analytical processes- In this layer, analysts specify the necessary information and data for the desired changes in operational managers’ behavior. 4. Second layer from the bottom- ELT developers and data base specialists- In this layer, the database specialist or the ETL (extract, transformation, and load) developer gathers data from data warehouses which is made assessable and usable to the front-end application of the business. 5. Bottom layer- IT Professionals- In this layer, the IT professionals using the IT infrastructure run and develop the primary data generating sources or create new data. (Laursen & Thorlund, 2010) Chapter 2 Question1. What are the different degrees of integration between the BA function and the company’s strategy? Answer. The different degrees of integration between the BA function and the company’s strategy could be explained with the help of four scenarios: 1. Scenario 1 is no formal link between strategy and BA. In this scenario, BA is not considered as a part of business strategy and the BA function is used on an ad hoc basis. 2. Scenario 2 is BA supports strategy at a functional level. In this scenario, the link between BA and strategy is coordinated. Here the BA function is purely reactive and there is no feedback procedure from BA to strategy. 3. Scenario 3 is dialogue between the strategy and the BA functions. There is a formal feedback procedure from BA to strategy and strategy innovation is supported by BA. 4. Scenario 4 is information as a strategic resource. It enables the information to be used to determine the strategy. (Laursen & Thorlund, 2010) Chapter 3 Question1. How the development and deployment of information does takes place at the functional level? Answer. The development and deployment of information at the functional level could be explained with the help of Rockart Model. Figure1. The development and deployment of information at the functional level 1. Level 1: Identifying the Objectives- The first step is to identify the objectives, i.e. to identify the aim and purpose of the information to be developed. 2. Level 2: Identifying an Operational Strategy- Once the objectives have been identified, the operational strategy to fulfill the objective must be identified and implemented. 3. Level 3: Identifying the Critical Success Factors- A large number of activities are initiated by implementation of a strategy. Some of these activities are more critical than others. All such critical success factors should be identified. 4. Level 4: Identifying Lead and Lag Information- The information at functional level can be broadly classified as: Lag information- The information which we choose to register on an ongoing basis is the lag information. Lead information- Lead information is created on the basis of lag information. It helps in monitoring and improving the existing or initiating processes. (Laursen & Thorlund, 2010) Chapter 4 Question1. What is the role of a business analyst in the BA Model? Answer. The role of a business analyst bridges the gap between the company and its technical environment. A business analyst must meet the following requirements: 1. Business competencies- A business analyst must have the business competencies and should understand the business process properly. He or she must have the business insight. A business analyst must have analytical competencies so that the information could be used as a competitive parameter. 2. Method competencies- Method competencies help a business analyst to keep the tool kit in order. He or she should be able to deliver multiple information in same data and should be able to visualize the information as the user. 3. Data competencies- The business analyst should have the technical understanding of the information. Analysts spend majority of their time in collection and presentation of data. (Laursen & Thorlund, 2010) Chapter 5 Question1. What is the role of data warehouse in Business Analytics? Answer. A data warehouse provides an organization with data which is consistent, integrated and valid. It ensures the collection of data from its source. Data warehouse retains the desired key features and provides data for creating reports. The data warehouse provides information in most assessable and well documented form based on users’ needs. The process in a data warehouse is a three step process, also known as ETL process: 1. Extract- this step of ETL process includes extraction of data from the source table or from within the data warehouse. 2. Transform- After extraction, data is converted into a format that through a series of business rules and functions is transformed for business use. 3. Load- The transformed data is thus loaded to the target tables in the staging area or location in the data warehouse. This data is used for reporting and analytics in a data mart. (Laursen & Thorlund, 2010) Chapter 6 Question1.How does a company collects source data? Answer. A company can collect source data either by collecting primary data or secondary data. The data collected for the first time is called the primary data. A primary data when further used becomes secondary data. A secondary data is collected from already collected data.The data sources for a company can be classified as: 1.Data generating source system- A data generating source system specifies which systems which create data for the first time and which don’t. Some examples of data generating source systems are billing systems, Reminder systems, Debt collection systems, CRM systems, and Product and consumption information. 2. Source system -When a data generated for the first time is saved, it becomes the source system for data warehouse. Data in the warehouse comes from primary sources and is saved on the basis of organizations rules and requirements. Based on the data warehouse information a large number of analysis and business processes are carried. (Laursen & Thorlund, 2010) Chapter 7 Question1.What is a business intelligence competency centre (BICC)? Answer. Business intelligence competency centre (BICC)- A BICC is a problem solving forum having integrated business, analytical and business competencies. The functioning of BICC can be explained as: 1. Establishment of information wheel- In order to provide the right information to the right people at the right time, data is condensed into information and knowledge. This is called information wheel. An information wheel summarizes the knowledge and information. 2. Creating Synergies between Information Wheels- The BICC must maintain the information wheels. The BICC must focus that the processes of an information wheel could be performed in several places instead of being performed at one place only to create a synergy on the data side via a correct combination of data. 3. Educating Users- The BICC should be user-friendly and relevant. On implementation of a new information system, the user should be trained to use them. The information generated should be reliable, accurate and actionable. 4. Prioritizing New BA Initiatives-The BICC must prioritize the new business analytics initiative. (Laursen & Thorlund, 2010) Chapter 8 Question1.What factors are considered in the prioritization of BA projects? Answer. Different factors are taken into consideration for the prioritization of BA projects: 1. Strategic Projects- Projects not specified as the part of company’s strategy are expected to render improved performances. So a non strategic project is prioritized to a strategic project. 2. Value creation of the project- BA projects doesn’t create any value for themselves. Only on experience of subsequent improved decision making the value creation is realized. The project thus having higher under covered value creation is prioritized. 3. Running time of the project- When a project runs for several years, it consumes large amount of resources. So they are prioritized on the basis of strategic context. 4. Uncertainty- Future cash flows are predicted with high degree of uncertainty in them in terms of comparing or prioritizing the projects. In such scenario, a qualitative business case based on cost/ benefit method should be used. 5. Involvement of project in bigger picture- Maturity models is used as a tool to find the involvement of the project in bigger picture. This model place individual information system in greater context. It also helps in relating technical solutions to strategic requirements. (Laursen & Thorlund, 2010) Chapter 9 Question1. What is the scope of Business Analytics in the future? Answer. Business Analytics can be defined as delivering the right decision support to the right people at the right time. The components of BA are believed to be true in future too. The role of BA in future can be explained with the help of this definition. The solutions provide by BA will be highly complex and precise in future. It will provide the right decision support to the users. It will help the employees in forecasting problems. In regards to the right people, major changes will be seen in near future as the BA’s solution must develop to the level of users’ preferred way of making decision. With regards to the right time, we assume that BA’s solutions will be real time based and users will be getting solutions as and when they are found. The information wheels will also be used for the organization’s individuals in future. (Laursen & Thorlund, 2010) Reference Laursen, G.H.N. & Thorlund, J. (2010). Business Analytics for Managers. Hoboken, New Jersey. JohnWiley & Sons, Inc. Read More