Critical Success Factors for Business Intelligence Initiative in Venezuela

Presented by: Carlos Jimenez at the Seventh International Workshop on Business I

ntelligence and Knowledge Management, organized by IDEA, Caracas, 26 and October
27, 2006
Critical Success Factors of Business Intelligence © 2006
Content
Some Definitions to Start The Context of Business Intelligence in
Venezuela
Critical Success Factors of Intelligence
Business
Main messages
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Critical Success Factors of Business Intelligence © 2006
What we come to speak? "Business intelligence is the activity of monitoring the
environment of the firm in terms of information that is relevant to the decision
making process of the company"
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Critical Success Factors of Business Intelligence © 2006
Source: The Competitor Intelligence Group (1986)
What do we mean by environment? "The business environment is complex and varied
as it is made not only by elements of the macro but components of the industry"
Demographic
Macro
Environment
Related Searches
Microenvironment
Economic
Intermediaries
Company
Competitors
Technological
Customers
Politico
Sociocultural
Critical Success Factors of Business Intelligence © 2006
Source: Miguel Santesmases: Marketing, concepts and strategies
What is relevant information? "An information system in a company should be disc
riminating and selective. This should focus on success factors. In most industri
es there are three to six factors that determine success. These key works to be
done very well for the company to be successful ... "
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Critical Success Factors of Business Intelligence © 2006
Ronald Daniel. Crisis Information Management. HBR, Sept-Oct 1961.
How EI can help making decisions? "Business intelligence provides strategic and
tactical information. In the first group, highlights the anticipation of changin
g markets and identifying opportunities, while at the tactical level support in
developing marketing and sales initiatives "
(Percentage who evaluated extremely or very important)
Develop marketing strategies anticipate changes and monitor the market to identi
fy new opportunities to identify new sources of support to sales advantage to se
ll more develop marketing programs prioritize spending on R & D
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76.2 74.5 67.2 64.8 58.4 43 23.5
Source: Society of Competitive Intelligence Professionals
Content
Some Definitions to Start The Context of Business Intelligence in
Venezuela
Critical Success Factors of Intelligence
Business
Main messages
7
Critical Success Factors of Business Intelligence © 2006
Behaviour of macro "Both the economic and the political environment have been of
great mobility for Venezuela, demanding that the companies remain alert to thei
r surroundings"
TRADITIONAL MODEL STAGE SQUIZOPHRENIC JL CAP II LHC II HChF CALDERA
MARKET ECONOMY
I CALDERA
CAP I
71
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ECONOMY GOVERNMENT INTERVENE
Critical Success Factors of Business Intelligence © 2006
Microenvironment Behavior "Likewise, the micro many business sectors have been s
ubject to profound changes and competitive pressures"
Privatizations
(Telecommunications, basic industries, etc.).
Foreign entry
(Automotive, banking, etc.).
Mergers and Acquisitions Establish regulations
(Price controls, financial drawers, etc.). (Banks, insurance companies, etc.).
Offer new products and services
(Shopping, food, etc.).
Modernization
(Cinemas, supermarkets, etc.).
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Critical Success Factors of Business Intelligence © 2006
Useful information for business "Venezuelan firms to assess decision making prim
arily financial information, the environment and customers'
Financial information needs of customers of competitors Information Policy Persp
ectives Surveys Customer Satisfaction New Macroeconomic Information Technologies
Customer complaints public information notices Other Demographic Information
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11.65% 10.15% 7.52% 7.14% 7.14% 6.39% 1.13% 0.75% 0.75% 25.19% 22.18%
What are the most important types of information when making business decisions?
Critical Success Factors of Business Intelligence © 2006
Source: Datanalisis. Business Survey. 2004
Content
Some Definitions to Start The Context of Business Intelligence in
Venezuela
Critical Success Factors of Intelligence
Business
Main messages
11
Critical Success Factors of Business Intelligence © 2006
1. Business intelligence from a knowledge must own "Before seeking outside infor
mation is important to clarify the position of the company in the competitive en
vironment"
Four basic components for a self-analysis of the company in the competitive cont
ext
Future objectives:
What drives us
Current strategy:
How the company is currently competing
Assumptions about himself and the industrial sector
Capabilities: Strengths and weaknesses
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Critical Success Factors of Business Intelligence © 2006
Source: Michael Porter. Competitive Strategy
2. Using scenarios in a highly uncertain environment is highly recommended "The
scenarios are descriptions of situations and future results that serve as contex
t for formulating and evaluating decisions and strategies that, taken today, mus
t lead to success in structurally different to the current context"
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Critical Success Factors of Business Intelligence © 2006
3. Segmenting the market is of great help for better understanding
Environmental analysis
PEST 1.Modelo consumers have the same • Not all needs, amenazaslo • Opportunitie
s and you can not serve in the same way. • • Identification of variables increas
es the ability to deliver value that consumers are willing to pay, • Segmentatio
n itself • Develop profiles that LADE given price elasticity of demand segments
may vary between segments • • Evaluate attractiveness of each segment allows to
formulate strategies • Selecting the development of [the] segment [s] target pro
ducts, promotions, communications, price and distribution are geared towards gro
ups that are more attractive to the objectives • Identify possible positioning c
oncepts / business segment of the company.
• Select, develop and bring the concept of positioning
Market Segmentation
Selection of the target market
Positioning
•
Facilitates competitive analysis to identify competitors by segment.
• Product • Price • Promotion Improving the efficiency of investment and develop
ment • Product Distribution
Marketing Mix
•
marketing
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Critical Success Factors of Business Intelligence © 2006
4. Not everything is strategic and therefore does not require IE
The phases of Business Intelligence
Identify ation
1. The first phase of the IE refers to the identification requirement 2. Critica
l point of phase Relevance strategic information
what information
What is the strategic problem? What decisions need to take? What pieces of infor
mation are needed to guide
Critical Success Factors of Business Intelligence © 2006

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5. The information must be on time and at reasonable cost
The phases of Business Intelligence
ON COLLECTION
After clearly identify the information required to collect such information is
critical point of this stage: the process efficiency

What information we have on the company or how I can use internal resources to g
et it? How I can separate triangular
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Critical Success Factors of Business Intelligence © 2006

6. The analysis should be objective

The phases of Business Intelligence
Ent PROCESSING
After collecting the information is important to devote time to analysis and m
aturation Critical point analysis of Phase: Objectivity on the findings and an
alysis

What do we understand about ourselves and about the problem after reflection? Wh
at information do we need?

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How the new information we have sought increased (or Critical Success Factors Bu
siness © 2006 know about our problem? Distorted) perception Intelligence
7. Do not fall into the trap of predicting
The phases of Business Intelligence
Transmission was
The analysis and findings should be disseminated in the organization's key bod
ies through expeditious mechanisms of transmission of knowledge. Phase Defect:
Credibility
We always start from the premise that the maps are incomplete, alerting users of
the information on its extent and limitations.
Critical Success Factors of Business Intelligence © 2006
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Avoid falling into a defensive dynamic rather than

8. Establish ethical standards in IE practices
Why is it important to talk about ethics?
Errors in this area can seriously affect the reputation of the company To es
tablish ethical standards helps to easily respond to future critical.
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Critical Success Factors of Business Intelligence © 2006
Content
Some Definitions to Start The Context of Business Intelligence in
Venezuela
Critical Success Factors of Intelligence
Business
Main messages
20
Critical Success Factors of Business Intelligence © 2006
Main messages
The current competitive environment is increasingly complex and dynamic Comp
anies that want to be successful must develop skills
competitive processes to facilitate decision-making and implementation of initia
tives
competitive information collection should be efficient, so
targets to be set a priori and do it in reasonable time.
business intelligence activities should ensure
compliance with ethical standards that do not compromise the image and reputatio
n of the company.
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Critical Success Factors of Business Intelligence © 2006