The
Current Status
The amount of data collected by most UK firms is increasing
rapidly. This is creating a need for businesses to use tools to view the data,
dissect it, and of course understand it. Users of the resulting information
include managers at various levels as well as analysts and, increasingly, more
junior staff whose job requires them to understand precisely what is happening
in one part of the business. At all levels, staff need accurate information in a
form that can be easily understood and quickly acted upon. In the past, many of
these kinds of decisions would have been made either without analysis or using
out of date information. Companies today are
increasingly relying on applications from leading analytical tool vendors and
enterprise software suppliers such as IBM.
As the UK's leading companies embrace the Internet as a core part
of their business, suppliers are introducing applications and toolkits that can
extract data from Web-enabled business processes and make it accessible for
decision making. In some cases they can even make the business decisions without
human intervention. In the area of customer or Web analytics, aggregation and
interpretation routines are used to create a much clearer view of each customer
and/or group of customers as well as track, profile, and illustrate the habits
of individual visitors to a Web site.
Data plays a crucial role in most companies, but there are some
industries that need to analyse very large amounts of data from different
sources quickly and accurately. Modern manufacturing plants generate and store
huge amounts of data from ERP (enterprise resource planning systems) and other
transaction-based systems. Often many different systems store and analyse data
relating to the production of various items or substances, for example stock
levels, delivery schedules, customer orders, prices paid, product return rates,
product development schedules and the like.
If these systems do not communicate with each other, or if there
is no single point from which to approach all of this data, it is impossible to
find accurate answers to questions such as 'How will a 5 per cent drop in
production of a particular product in a specific month affect company profits?'
and 'Which are our most profitable customers?'
The majority of the data in most manufacturing companies covers
manufacturing, logistics and financial areas, rather than market information and
customer data (although both the latter are important). Financial services
companies, however, see service operations and customer information as
mission-critical. Retail banks and insurers usually have millions of customers.
It is not easy to predict how changes in areas such as consumer behaviour, the
performance of financial markets and government policy will affect business. To
benefit from all the data they have collated and stored, these companies need
to:
-
Extract the data they have from its different and varied
sources.
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Transform it into a consistent format.
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Load it into a repository, for example, a data
warehouse.
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Find a way to analyse the data so as to give decision makers
at all levels and in different units the support they need to make better
business decisions more quickly than their competitors. (Typically this entails
using business intelligence software, ranging from advanced reporting suites to
statistical packages.)