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Conceptualizing Intelligence Architecture Shariat and Hightower

CONCEPTUALIZING BUSINESS INTELLIGENCE ARCHITECTURE MOHAMMAD SHARIAT, Florida A&M University ROSCOE HIGHTOWER, JR., Florida A&M University

Given today’s business environment, at times a corporate executive may feel overwhelmed by the amount of information available and the coverage of what is actually known as Business Intelligence (BI) architecture. There are literally hundreds of product offerings to choose from. For example, a simple Google search for “business intelligence software” yields more than 24 million responses including more than 50 different vendors. Shariat and Nwakanma (2006) strongly recommend that customers view the future as involving and cooperation between all parties within the business as well as the external vendors in order to properly manage enterprise information technology systems. This manuscript defines business intelligence, explores the basic difficulty in managing a firm’s business intelligence architecture, and offers a comprehensive BI framework to aid an executive with appreciating the complete enterprise view. This is in total contrast to today’s vendor “BI ” view that appears to be easy to design, quick to implement, and simple to

INTRODUCTION more than intuition. , reporting, and query tools can help business users wade Over the past ten years many business through a sea of data to synthesize valuable information analysis terms have become information from it – today these tools popular. Terms like Business Performance collectively fall into category called Business and Intelligence (Gartner Group 1996).” Management (BPM), Corporate (CPM), Business Activity BACKGROUND Monitoring, Customer Relationship Management (CRM) etc., have become popular Traditionally, enterprises have stored a huge terms in the information technology industry. amount of disparate (i.e., departmental, Today, these terms are all a part of what is geographical unit, aggregated, and historical) called Business Intelligence (Zaman 2005). data on variety of computer storage platforms over the past fifty years. The individual The term “Business Intelligence (BI)” first was departments and/or geographical units within used in the mid-1990s by the Gartner Group the enterprises frequently took advantage of Inc., one of the world’s largest information evolving technology and were able to access technology companies. In September 1996 one and use the data independently. Thus, a pattern of the Gartner Group’s reports referred to BI in was developed for operational information forward thinking enterprises as “information systems. However, over time, the whole and applications available broadly to enterprise found it more and more difficult to employees, consultants, customers, suppliers, build a common reference, integrate, correlate, and the public. The key to thriving in a have immediate access to, and to decipher the competitive marketplace is staying ahead of the data at the enterprise mission level. competition. Making sound business decisions based on accurate and current information takes During the 1960s, management systems (DBMS) gained popularity in business The Journal operations by integrating and monitoring Volume 17, Issue 2, Pages 40 - 46 Copyright © 2007, The Marketing Management Association operational and transactional data. In the1970s All rights of reproduction in any form reserved Decision Support Systems (DSS) evolved with

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the objective of providing the as the system structure comprising software decision makers with supportive data for elements, their externally visible properties, and decision-making processes. During the1980s their relationships. The externally visible Executive Information Systems (EIS) evolved properties include service (processes), and extended the delivery of information to performance characteristics, and shared executive officers across the enterprise. resource usages.

Today, both of these systems not only share BI architecture is structured differently and uses some of the objectives with BI, but also share different terminology than other information some of their major tools and techniques. Other technologies in use today. This is particularly technologies and tools such as OnLine observable in the relationship between BI Analytical Processing (OLAP), and Data vendors and BI clients. General names have Warehouse (DW), developed during the 1980s. been given to the physical components, some The OLAP tools allow the user to query, components relationships and functions have browse, and summarize information in an been obscured, and component efficient, interactive, and dynamic way. OLAP interdependencies abstracted. While some tools, although initially developed for use in the generalizations and abstractions are required to DSS and EIS domains, today represent a vital accommodate a variety of design choices and component of both the BI and changes in technology or component technology. They provide an aggregated arrangement for performance efficiencies, a approach to analyzing large amounts of detailed standard BI architecture must be adopted. data. OLAP are often referred to as Vendors and clients of BI technology must hyper cubes or simply cubes since they have a establish a general structure to remain stable multidimensional nature. A cube is a visual while still enabling flexibility and the ability to representation of a multidimensional table that tailor to a variety of business information has just three dimensions: rows, columns and system environments and industries. The layers. differences in language (i.e., naming, components, processes, and relationships) can The DW technology is composed of two main be overcome with a better understanding of a components, data repository and Meta Data. standardized BI architecture, its organization, The data repository, usually referred to as Data and its relationship to other enterprise Warehouse, is a logical collection of integrated information systems. information designed and gathered from many different operational data to support The BI architecture and infrastructure has been management decision-making. It contains a illustrated and presented in many different ways wide variety of data that present a coherent in the current information technology (IT) picture of business conditions at a single point literature. Some use a traditional view of in time. Meta Data, in its simple definition, is software architecture and describe the systems data about data. Meta Data is a collection of in terms of software, hardware, middleware, rules and directions that guide the extraction, application suites, data warehouses and transformation, cleansing, and loading data into business transactions. the DW. Others present standard Business Intelligence PROBLEM STATEMENT as a BI Pyramid to show how to distribute the different BI tools to different user groups. The An architecture is the fundamental organization BI pyramid generally consists of the following: of systems embedded in its components, their 1. Software on the top of the pyramid is called relationship to each other and the environment, the “Dashboard”. The dashboard is used for and the principles governing its design and executive management interaction with the evolution. The software architecture is defined BI. 41 Marketing Management Journal, Fall 2007 Conceptualizing Business Intelligence Architecture Shariat and Hightower

2. The middle section of the pyramid is parties within the business as well as the OnLine Analytical Processing (OLAP) and external vendors in order to properly manage ad hoc query for middle management. enterprise information technology systems. 3. The lower level of the pyramid uses While most of BI products have similar preformatted report generators for architecture (components) and the same operational management. objectives (functions) “various marketing techniques may make the relevant Typically, Executive Information Systems differentiation quite difficult for corporate (EIS) and Decision Support Systems (DSS) executives (Business Intelligence: The Way It architectures are depicted in pyramid shape to Should Be 2005, ¶2).” show how the information is distributed to different levels of management. Pyramid In 2006, most vendors initially avoided architecture’s application to BI technology is, referring to the complexity of data and/or to a great extent, due to the BI technology hidden layers of BI, especially if there are overlap with EIS and DSS. From the multiple data sources and if particularly those perspective of some executives there is no sources include customized enterprise difference between BI and EIS or DSS. applications for ERP, CRM, or SCM. Some of According to Fuchs’ view of senior these applications have their own “…what used to be called warehouse with complex database schemas Executive Information Systems (EIS) …has (Meta Data) that were developed prior to the now evolved into so called dashboards (Fuchs evolution of BI. The average vendor today 2005).” We suggest that the dashboard is the focuses on presenting the BI dashboard, its ease most visible component of BI. of use, and quick implementation.

Still others present one major component of BI PROPOSED SOLUTION architecture and abstract all other layers and/or components, focusing on , The key words in the definition of BI Transformation, and Loading (ETL) operations. architecture are components (elements), the The ETL is the process of extracting data from relationships among the elements, and the the operational data sources or external data externally visible properties. These properties sources, transforming the data that includes include services, performance characteristics, cleansing, aggregating, summarizing, and shared resources. According to early integrating, as well as basic transforming, and Gartner Group’s (1996) definitions in general, loading the data into some form Business Intelligence (BI) represents a set of (Raynolds 2006). business information processes for collecting and analyzing enterprise (business) Given today’s business environment, at times a information, the technology used in these corporate executive may feel overwhelmed by processes, and the information (knowledge) the amount of information available and the obtained from these processes. BI is frequently coverage of what is actually known as Business referred to as an umbrella term that brings Intelligence (BI) architecture. There are literally together almost all of the data disciplines of an hundreds of product offerings to choose from. organization. We posit a BI architecture that For example, a simple Google search for standardizes most popular methods of “business intelligence software” yields more presenting BI technology and complies with the than 24 million responses including more than popular definition of BI. (See Figure 1 50 different vendors. Shariat and Nwakanma, Standardized Business Intelligence in a 2006 article about ERP and DSS Architecture). convergence, strongly recommend that customers view the future as involving collaboration and cooperation amongst all Marketing Management Journal, Fall 2007 42 Conceptualizing Business Intelligence Architecture Shariat and Hightower

43 Marketing Management Journal, Fall 2007 Conceptualizing Business Intelligence Architecture Shariat and Hightower

As Figure 1 shows, the basic components of BI compiled huge volumes of disparate data stored architecture are: Operational Systems, ETL, and accessible from a variety of information Data Warehouse, BI Applications, and BI systems that have evolved since the 1960s. Portal. Table 1 (see Table 1 below) describes None of the traditional information systems the component elements in terms of Processes, architecture has been totally integrated into the Data and Software. whole enterprise. In other words, the Standardized Business Intelligence Architecture CONCLUSION is the first to objectively incorporate industry standards along with basic management BI technology has become a very popular practices. BI technology’s objective is to bring globally among enterprise executives, IT all of the enterprise data systematically professionals, and BI vendors. Enterprises have together, and provide the strategic, tactical, and

Marketing Management Journal, Fall 2007 44 Conceptualizing Business Intelligence Architecture Shariat and Hightower

operational management with information professionals, and vendors to have a common (intelligence) required for decision-making. perspective in the acquisition, planning, implementation and maintenance of BI Prior to Figure 1 being introduced, a number of technology for today’s firms. BI illustrations were offered that contained different components abstracted at many The model can be summarized as different levels of conceptualization, and a accomplishing the following. First, the model variety of references (names) were assigned to accommodates the most popular architectures at the components and their respective elements. a level of abstraction that clearly identifies the There are several issues with the information major components of BI technology. Second, technology literature and popular press’ the model highlights the functional (processes) approaches to discussing BI architecture. The dependencies of operational systems, ETL, major ones are: 1) BI is a fast growing Data Warehouse, BI applications, and the BI technology, 2) BI involves complex operations portal. Finally, and maybe most importantly, it with regard to traditional information systems, describes the data (information) types involved and 3) BI involves numerous vendors offering a in each of these components, and identifies the variety of BI functions and products. software categories involved with each area. In other words, the model gives corporate We invite practitioners and scholars alike to executives a specific overview of a popular, review, scrutinize, and improve upon the complex, and costly business topic. Standardized Business Intelligence Architecture Model offered in Figure 1. We also suggest that the standardized architecture will provide executive management with an improved prospective of BI technology. The model enables executive management, IT

45 Marketing Management Journal, Fall 2007 Conceptualizing Business Intelligence Architecture Shariat and Hightower

REFERENCES

“Business Intelligence: The Way It Should Be,” Retrieved June 22, 2005, from http://whitepaper.intelligententerprise.com/c mpintelligententerprise/search/viewabstract /76286/index.jsp. Fuchs, Gabriel (2005), “Reality IT: Big Myth about BI,” Retrieved November 13, 2005, from http://www.dmreview.com/article_ sub.cfm?articleID=1016223. Gartner Group (September, 1996). Retrieved November 12, 2005, from http://www. innerworx.co.za/products.htm. Raynolds, D.G. (2006). “Business Intelligence,” Retrieved March 12, 2006, from http:// blogs.ittoolbox.com/bi/ confessions/. Shariat, Mohammad and Hudson Nwakanma (2006), “Enterprise Resource Planning and Its Future Relationship to Decision Support Systems,” Journal of Business and Economic Research, 4(12), 91-95. Zaman, Mukhles (2005), “Understanding Business Intelligence and Your Bottom Line,” Retrieved July 19, 2007, from http:// sageproerp.com/products/businessintelligence /Sage_Accpac_BI_White_Paper.pdf.

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