Week 7 Notes

Learning Objectives:

• Be able to use the critical success factor method to gather requirements for BI systems.
• Be able to use the strategic business functions method to gather requirements for BI systems.
• Be able to apply concepts from management science, statistics and TQM to the design of BI systems

Critical Success Factors (CSFs)

Mainly focuses on the perception of the individual. It gives the the executives the control over the processes and define their information needs.The approach if useful where you have several analysts trying to gather information from various managers at the same time. It is a structures process which assures that everyone gathers information is the same way.

The analyst basically takes the interview approach asking the executive about their role, mission, and goals.

Based on the information CSFs are developed, prioritized, and then KPIs are developed for the corresponding CSFs

There can be three types of CSF:

• related to the organisation
• related to the manager's functional area
• relate to the manager as an individual.

However, all of these are focused on the manager's personal view.

Some problems with CSF method.

1. Inter-functional conflicts.

2. CSFs change over time. They could change as the business changes, as the individual changes or when the manager is replaced.

3. Managers might hide the actual information, if they don't trust you or have agendas.
4. Cannot analyze the "why" scenario

5. No cross-functional analysis

Strategic Business Functions (SBF) 

Overcomes the limitations of CSF.

Aims at aligning with the organization as a whole, instead of focusing on individuals.

Managers are gathered in a workshop environment (helps solve conflicts there and then) where you discuss their activities, what functions are critical for them for being competitive, then find linkages between the functions.

Steps:

1.BI system team performs business analysis in partnership with senior executives

2.Strategic business functions are defined

3.SBF’s are prioritised

4.Information linkages are determined

5.Information required to support each function is defined

6.A plan is developed for prioritised implementation of the BI system by SBF


KPIs

KPIs are the measures, so basically need to be measurable. One KPI cannot be a complete measure of a CSF, but in fact a CSF has multiple KPIs.


Objectives

Objectives are the direction the organisation needs to move in order to improve.

Objectives help create CSF and SBF; they are used to implement KPIs.

Objectives can have sub objectives also.

For many objectives, there are no measurable targets, for which we use the following 3 approaches:

• Subjective Index - ask an expert in the field to come up with a rating system on a scale to help monitor an objective
• Proxy target - this is an indirect measure, and can be subdivided into indirect, precursor, and  combined.
• Direct Preference Assessment - ask the decision maker to make a subjective judgement for each objective

Total Quality Management

This is a philosophy dealing with enhancement of business process by involving employees to collectively analyze their own performances.

The main graphical tools used are:

• Histograms
• Pareto charts
• Run charts
• Shewhart charts