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Prof. Dr. Robert WinterInstitute of Information ManagementUniversity of St. [email protected]
Enterprise-wide Information Logistics –
A Different Managerial View on Data, Information and Synergies
Enterprise-wide Information Logistics
What is “information logistics”? Why another term?1
The role of quality for information logistics management 3
What's in it for me? 4
After 20 years of research in data warehousing and
business intelligence, what are the biggest managerial
challenges? 2
© 04/10/23 IWI-HSG, Robert WinterSlide 2
Enterprise-wide Information Logistics
What is “information logistics”? Why another term?1
The role of quality for information logistics management 3
What's in it for me? 4
After 20 years of research in data warehousing and
business intelligence, what are the biggest managerial
challenges? 2
© 04/10/23 IWI-HSG, Robert WinterSlide 3
Information Logistics: Planning, Implementation and Control of Cross-unit Data Flows
Data flows relevant for information logistics
Business Unit A Business Unit B
Company A Company B
Department ADepart-
ment B
Job A
Job B
© 04/10/23 IWI-HSG, Robert WinterSlide 4
adapted from [Dinter / Winter 2008]
IL Characteristics
Only cross-unit data flowsare considered:
– Data flows between jobs in a department– Data flows between departments in a business unit– Data flows between business units in a company or legal unit– Data flows between companies in a value network or between
legal unit in a corporationNON-LOCAL
Focus on ANALYTICAL data use (= information supply)
Only managerial issues are considered: – Engineering management (requirements, design, financials)– Operations management (responsibilities, organization)NON-TECHNICAL
© 04/10/23 IWI-HSG, Robert WinterSlide 5
Business Unit A Business Unit B
Company A Company B
Department ADepart-
ment B
Job A
Job B
The Value Proposition of Information Logistics
“Supply the right information with
appropriate quality (e.g. timeliness,
correctness) to cover all relevant
information demand which are based
on data originating from other units”
Customer
orientation
Quality
orientation
Business
orientation
© 04/10/23 IWI-HSG, Robert WinterSlide 6
Information Logistics vs. Existing Concepts
© 04/10/23 IWI-HSG, Robert WinterSlide 7
Loc
al &
Cro
ss-u
nit &
Sho
rt T
erm
Lo
ng
Ter
m
Per
spec
tive
P
ersp
ectiv
e
Managerial Focus Technical Focus
Information
Logistics
Data
Warehousing
Business
Intelligence
Why Yet Another Term?
Data warehousing: focus on certain integration technology
Business intelligence: focus on ‘local’ utilization process
MSS/DSS, MIS, EIS: specific types of users or types of analyses
For corporate information management, we need an additional perspective which
– is focusing on cross-unit synergies– is open for all suitable technology / integration approaches– is focusing on sustained operations rather than on
development only
and which– is not focused on operational data integration alone– is not focused on “internal” (e.g. workplace) data integration
© 04/10/23 IWI-HSG, Robert WinterSlide 8
IL Focuses on Synergy Exploitation
“The whole is more than the sum of its parts”
By planning, implementing and controlling data flows across units (and storing / provisioning such data), more value can be generated than by using such data only locally
Examples– Using claims data for policy pricing
(synergies across departments of same business unit)
– Using sales data of banking unit for cross-selling by insurance unit (synergies across business units of same company)
– Using airline status data for offerings by hotel or rental car company (synergies across companies)
© 04/10/23 IWI-HSG, Robert WinterSlide 9
Enterprise-wide Information Logistics
What is “information logistics”? Why another term?1
The role of quality for information logistics management 3
What's in it for me? 4
After 20 years of research in data warehousing and
business intelligence, what are the biggest managerial
challenges? 2
© 04/10/23 IWI-HSG, Robert WinterSlide 10
Business and Technology Focus Alternates
1. Technology Innovation e.g. SAP R/2, SAS, EAI tools, SAP byDesign Initially isolated, often end-to-end solutions
2. Business Digestion from a Project Perspective Business case for innovation projects Do‘s and dont‘s for innovation projects
3. Technology Integration e.g. meta data, master data Integration from a technical perspective: standards and interfaces
4. Business Digestion from a Operations Perspective Integration from a business perspective: architecture, guidelines Economics of (sustained) operations: service definition, pricing mechanisms From (temporary) project organization towards (permanent) process
organization Best practices, reference models Finally standardization, development of benchmarks, consolidation / increased
efficiency
© 04/10/23 IWI-HSG, Robert WinterSlide 11
From Innovation to Integration ManagementFrom Project/Dev to Process/Ops Management
IL Development: Project by Projectvs. IL Operations: Integrated
Pro
ject
1
Pro
ject
2
Pro
ject
3
Pro
ject
n
IL
Operations
© 04/10/23 IWI-HSG, Robert WinterSlide 12
Managerial Challenges After 20 Years of DWH/BI Research
Operations organization– IL product / service (reference) catalogues– IL operations (reference) models
Operations financials– IL business value calculation and investment models– IL pricing models
Strategy & marketing– IL strategy process– IL marketing and business value communication
No method / reference model fits all! We need application scenarios as a foundation for– situational method adaption and– situational reference solution adaption
© 04/10/23 IWI-HSG, Robert WinterSlide 13
IL Operations Mgt Building Blocks
IL Goals
IL Products
IL Reference
Processes
IL Service
Models
IL Costs and
Pricing
IL Reference
Architectures
© 04/10/23 IWI-HSG, Robert WinterSlide 14
The IL Value Proposition is the Basis forIts Organizational Setup
“Supply the right information with
appropriate quality (e.g. timeliness,
correctness) to cover all relevant
information demand which are based
on data originating from other units”
Requirements
management
Information
quality mgt
Service
management
© 04/10/23 IWI-HSG, Robert WinterSlide 15
IL Products
Level 1
IL Product=
IT Resource
E.g.: 1 MIPS1 DB-Server1 GB for 1 month1 Person day
Level 2
IL Product=
IT Solution
E.g.: Development,opera- tions and support of a data mart application for campaign mgt
Level 3
IL Product=
IT Process Support
E.g.: Direct support of campaign planning or campaign execution (generation of leads, priced per lead)
[Klesse / Herrmann 2004] adapted from [Zarnekow, Brenner 2003]
Po
or
Bu
sin
es
s O
rie
nta
tio
nG
oo
d
Low Complexity for service provider High
High Complexity for service consumer (Business) Low
© 04/10/23 IWI-HSG, Robert WinterSlide 16
IL Reference Processes
© 04/10/23 IWI-HSG, Robert WinterSlide 17
Use IL
Conducting standard
reporting
Conducting special
analyses
Conducting information-
intensive business processes
IL
Applications
IL
Integration
Infrastructure
IL Platform
(Hardware, DBMS,
etc.)
Ch
ang
e IL
Development of IL
Applications
Development of IL
Integration Infrastructure
Development/
configuration of IL
Platform
Ru
n IL
Operations of IL
Applications
Operations of IL
Integration
Infrastructure
Operations of IL
Platform
Legend: Component Process Component-specific process
Support of IL
Applications
Support of IL
Integration
Infrastructure
Support of IL
Platform
adapted from [Klesse / Winter 2007]
IL Service Models
© 04/10/23 IWI-HSG, Robert WinterSlide 18
Full Service Provider
50%
60%
70%
Business Service Provider
IL Utilization
IL Information System
IL Platform
60%
40%
20%
IL Competence Center
30%
40%
30%
IL Platform Provider
30%
50%
60%
Vertical Integration of IL
Bu
sin
ess
Inte
gra
tio
n o
f S
ervi
ce P
rovi
der
IL Utilization
IL Information System
IL Platform
IL Utilization
IL Information System
IL Platform
IL Utilization
IL Information System
IL Platform
adapted from [Klesse / Winter 2007]
Enterprise-wide Information Logistics
What is “information logistics”? Why another term?1
The role of quality for information logistics management 3
What's in it for me? 4
After 20 years of research in data warehousing and
business intelligence, what are the biggest managerial
challenges? 2
© 04/10/23 IWI-HSG, Robert WinterSlide 19
Once again: IL Goals
“Supply the right information with
appropriate quality (e.g. timeliness,
correctness) to cover all relevant
information demand which are based
on data originating from other units”
Requirements
management
Information
quality mgt
Service
management
© 10.04.23 IWI-HSG, Robert WinterSlide 20
IS Quality in General
User
Easy to Use
Adequancy
Easy to Learn
(User) Documentation
RobustnessEfficiency
Easy to Integrate
Reliability
CorrectnessAvailability
(Developer)Documentation
Portability
Easy to Maintain
Easy to Reuse
Corporate Sponsor
SoftwareDeveloper
© 10.04.23 IWI-HSG, Robert WinterSlide 21
Data Accuracy in Particular
Valid dataInvaliddata
Missing data
Correct dataIncorrect
data
Correctrepresentation
12052005Dec?May?
IncorrectRepresentation05122005Dec?May?
AccurateData
Inaccuratedata
Source: Jack E. Olson, Data Quality The Accuracy Dimension © 10.04.23 IWI-HSG, Robert Winter
Slide 22
Problems due to Poor Data Quality
© 10.04.23 IWI-HSG, Robert WinterSlide 23
Data Quality Measures
“Laissez
faire”
Data Importance
Dat
a S
tab
ility
High
Low
HighLow
Data Cleansing(corrective measures)
Pro-active data quality management (pre-emptive measures)
Laissez faire
Corrective measures Correctness testing Reference data
(comparison of different data sources)
Business rules (internal routines)
Pre-emptive measures Process control and
evolution Process design
Source: de Fries, Seidl, Windheuser 1999 © 10.04.23 IWI-HSG, Robert WinterSlide 24
Source: CC CDQ, Univ. of St. Gallen, http://cdqm.org
Framework „Corporate Data Quality“
Strategy
(“what?”) CDQ Strategy
Organization
(“how?”)Coordination and Control
CDQ
Orga&Governance
CDQ Processes and
Methods
IS (“by what
means?”) CDQ Software Systems
Information Architecture for CDQ
local global
© 10.04.23 IWI-HSG, Robert WinterSlide 25
The Data Quality Management Challenge:There are Always Trade-offs to Consider…
Quality
Speed
Output(volume, capacity, service)
Costs
Assumption:Development
capabilties are a constant
+
-
+
-
-
+
-
+
© 10.04.23 IWI-HSG, Robert WinterSlide 26
The Contribution of Data Quality to Information Logistics
Actual events prove that it becomes ever more, not less important to supply the right information with appropriate quality to cover information demands by (human and machine) decision makers.
Inadequate quality is as much a problem as lateness, bad service levels or excessive costs.
Cost management and output management may be less disputed than quality (and speed) management because they are more “technical” (i. e. can be approached by IT alone).
Quality (and speed) management need an integrated business-to-IT approach. “What”, “how” and “by what means” questions need to be approached holistically and systematically by business and IT together.
© 10.04.23 IWI-HSG, Robert WinterSlide 27
Enterprise-wide Information Logistics
What is “information logistics”? Why another term?1
The role of quality for information logistics management 3
What's in it from the user perspective? 4
After 20 years of research in data warehousing and
business intelligence, what are the biggest managerial
challenges? 2
© 04/10/23 IWI-HSG, Robert WinterSlide 28
„The Whole is more than the Sum of its Parts“
Infrastructure View
Business Unit BBusiness Unit A Transformation
Project Portfolio
© 10.04.23 IWI-HSG, Robert WinterSlide 29
Where are the Synergies?(And who is in Charge?)
Industrialization requires that large amounts of similar activities are pooled.Since products, markets and processes become ever more differentiated (and such business units), industrialization can only be driven by the corporate center.
Many data do not originate at the same place where they create business value. In order to identify and exploit data integration potentials, information logistics can only be driven by the corporate center.
Automation and
specialization
Standar-
dization
Centralization
© 10.04.23 IWI-HSG, Robert WinterSlide 30
Informations Logistics:What‘s in it for me?
For business units– Industrialization allows to use professional, cost efficient
services– Utilization or integration of “foreign” information enables new
decision support (and maybe business innovation) potentials
For shared service units– The more business units are provided with data, the more
efficient information logistics can be implemented
For the corporation as a whole– The whole is worth more than the sum of its parts only if
synergies are looked for, and exploited– Certain business solutions (e. g. one stop customer
experience) can only be implemented if partial information is integrated
© 10.04.23 IWI-HSG, Robert WinterSlide 31
The Road Ahead
Actual developments prove that more, faster and better decisions are needed.Industrialization and e-everything lead to more data and more fragmentation.
The gap widens between – demand for timely supply of more, higher quality data and– availability of more, more fragmented, often inconsistent data
While enterprise-wide technical approaches (DWH) and local business approaches (BI) have matured, information logistics needs to be established as an enterprise-wide, business oriented approach to information management.
Quality issues have high impact on overall information mgt performance. IL quality mgt (like speed mgt) is (at least) as important as output mgt and cost mgt.
© 04/10/23 IWI-HSG, Robert WinterSlide 32