magazine
EMERGING TECHNOLOGIES
Emerging Mobile Technology Business Intelligence Social Media As An Emerging Technology
INFOTE AGSB CEBU CAMPUS
About
HYPERTECH
MAGAZINE
Hypertech E-Magazine is a compilation of research on Emerging Technologies done by students of the Information Technology course of the Ateneo Graduate School of Business. For this particular issue, focus is on 3 technologies which are generating a profound impact on the way business will be done in the next 5 years. These are: • Mobile Technology • Business Intelligence • Social Media The papers point to an inflexion point in operating systems and hardware of mobile devices by the year 2013 overtaking desktop PCs. Big data explosion also point to the boom in business intelligence and data mining analytics algorithms. The rise of social media as a fourth channel for advertising and marketing campaigns will have repercussions on the way businesses will promote product and brand awareness and in the marketing mix. Each topic discusses the corresponding Strength-Weakness-Opportunities-Threat (SWOT) Analysis of the respective technologies. The applications to business, education, government, and various industries are then discussed as may be appropriate with the corresponding cost/benefit analysis. Finally, the nation-building and ethical implications of the emerging technologies are brought forward to provide fresh insights and good governance approaches.
Prof. Gary A. Grey
GROUP1 Paul Inso Althea A. Gallardo Josias F. Jorgio Bill Santillan
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EMERGING MOBILE TECHNOLOGY EMERGING MOBILE TECHNOLOGY: THE NEXT FRONTIER I. TECHNOLOGY DESCRIPTION A. Technical Environment The advancement of the mobile technology today may be attributed to the invention of the hand-held radio which had been used since the 1940’s or even earlier with the use of the radio during the Second World War with military use of radio telephony links (Wikipedia.org). It was the engineers from Bell Labs in the United States that began the work on a system that to allow mobile users to place and receive telephone calls from automobiles which later on led to the inauguration of the mobile service in 1946. AT&T offered Mobile Telephone Service shortly after that but due to incompatible services resulted to only very few channels in limited coverage areas (Wikipedia.org). Mobile telephony’s advances may be traced in successive generations from the early (0G) services, to first generation (1G) analog cellular network, second generation (2G) digital cellular networks, third generation (3G) broadband data services to the current state of the art, fourth generation (4G) native-IP networks (Wikipedia.org). The features and services that are incorporated into the mobile devices have also grown exponentially. Now mobiles devices not only serve as phone in making and receiving calls but are also cameras, planners, storage instruments, compass, radio, map navigators, and computers which allow users to see videos, upload, download, browse, check the weathers, play games, manage your stocks, read real time news, buy and listen to music and so much more! In a research by Morgan Stanley, results projected that by around 2014, mobile internet users will surpass desktop internet users. Over the years, the
drive behind these advancements has been expansion and quality of user experience. In an online survey among architects on Global State of Enterprise Architecture conducted in Q3 of 2012, respondents believed that mobile applications and platforms dominate both revolutionary and evolutionary aspects of the industry. (http://www.unesco.org/new/fileadmin/MULTIMEDIA/HQ/ED/ICT)
B. Trends in the Technology Gartner, Inc., the world’s leading information technology research and advisory company predicts that by 2013 mobile phones will overtake PCs as the most common web access device worldwide and that by 2015 over 80 percent of the handsets sold in mature markets will be smartphones. The implications for IT is that the era for PC dominance with Windows as the single platform will be replaced with a post-PC era where Windows is just one of a variety of environments IT will need support. The market for tools to create consumer and enterprise facing apps is complex with well over 100 potential tools vendors. Currently, Gartner separates mobile development tools into several categories. For the next few years, no single tool will be optimal for all types of mobile application so expect to employ several. Six mobile architectures – native, special, hybrid, HTML 5, Message and No Client will remain popular. However, there will be a long term shift away from native apps to Web apps as HTML5 becomes more capable. Nevertheless, native apps won't disappear, and will always offer the best user experiences and most sophisticated features. Developers will also need to develop new design skills to deliver touch-optimized mobile applications that operate across a range of devices in a coordinated fashion. (http://www.gartner.com/newsroom/id/2209615)
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Android became dominant s martphone OS and Samsung and HTC benefited the most from Android success (Q4 2011)
C. SWOT Analysis
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II. BUSINESS/INDUSTRY/EDUCATION APPLICATIONS The demand for access to business information and applications through mobile technologies such as the Apple iPhone and iPad, devices running Google Android and Windows 7 Mobile or using RIM Blackberry is surging as consumer preferences and behavior spill over into the business workforce. The massive growth of adoption of these technologies around the world has many business managers wondering how to effectively position their firms to benefit from the trend. The drive for mobility is part of the business technology agenda for most companies today. Obviously, however, in a business rather than personal context, more types and complexity of information are needed, ranging from access to documents and presentations, to status on initiatives and processes, and for specific application needs to perform various business intelligence functions. Mobile technology makes it more convenient for employees to collaborate and businesses to communicate with staff, customers, and vendors. Some examples in business or industry application are the use of phablets – phone/tablets for sales force; ERP software/applications are installed in their devices which allow them to record sales transactions. This is being used in Lexmark International. Lexmark also uses Blackberry units for service technicians to allow them real-time reporting of customer issues onsite and request for parts shipment on the same day. This shortens customer downtime thus enhancing customer experience and satisfaction. Most companies now also market their products and services and even do promotions through the web and consumers are able to access this anytime, anywhere through their mobile internet devices. SM Malls in Cebu have cloud promotions called the i-butterflies. Customers are able to get sales discounts on certain stores when they connect to the SM wifi. Real estate companies especially in the 1st world countries highly invest in technology for marketing and promotions. There are now augmented reality/virtual tours and applications for mobile devices that
virtual tours and applications for mobile devices that allow the latter. [a•mo•bee], the company defining mobile advertising, today announces the launch of [a•mo•bee] PULSE Create, a mobile ad creation platform that enables advertisers and publishers to create innovative rich media and 3D mobile ad campaigns. [a•mo•bee] PULSE Create marks the first of many: it is the first full-scale creative ad platform that is fully integrated with [a•mo•bee] PULSE for Publishers, which gives publishers the unique ability to measure performances of rich media and 3D mobile ad campaigns. (http://www.thetechnologycafe.com/create-rich-media-and-3d-mobile-ads-easily-with-amobee-pulse-create/)
Mobile technology in medicine is also a highly emerging trend. There are 4.6 billion of them in the world as of February 2010. Because of that, some scientists want to use a chip that can be embedded in cell phones to detect any dangerous chemicals that might be in the air, which would subsequently help them map their source and cause. The sensors are made of silicon and change color when they’re exposed to certain chemicals, in effect giving your cell phone a high-tech nose. It’s a brilliant way to harness an existing network for medical gain. Advances in phone technology have drastically changed the way we communicate on the go, but while most people think of smartphones primarily as ways to send text and video messages, medical professionals are using them to get a look at your health records. Using phones to download, transmit, and organize medical records can greatly reduce clerical errors and make it easier for doctors to learn your medical history quickly and easily. (http://techmedicus.com/trends-in-mobile-medicine)
Mobile technology is highly used by radiologists. They rank 5 in the USA for medical professionals, who use mobile technology as noted in a study conducted by Jackson and Coker Associates study. A good example for this is the ResolutionMD application. Beyond reliability for diagnosis and patient impact, research with our luminary partners Mayo Clinic, Yale University and SUNY reveals that ResolutionMD on mobile devices is making life on-call
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livable for radiologists – decreasing drive time to hospitals, time away from families and lessening the grind of long shifts).
(http://info.calgar yscientific.com/blog/bid/191246/Radiologists-rank-in-the-top-5-for-mobile-technology-usage)
GE Healthcare has released a mobile device called Vscan. This device costs $8,000 a unit. Dr. Topol, a cardiologist in San Diego, carries with him instead a portable ultrasound device roughly the size of a cellphone. When he puts it to a patient's chest, the device allows him to peer directly into the heart. The patient looks, too; together, they check out the muscle, the valves, the rhythm, the blood flow. "Why would I listen to 'lub dub' when I can see everything?" Dr. Topol says. Another new development for mobile technology in medicine is the application called the Mobile MIM system. This lets doctors use their iPhones to view images from sophisticated hospital tests such as MRIs and CT scans. Developed by MIM Software Inc., of Cleveland, the program reproduces the scans with enough clarity and fidelity that physicians can make diagnoses via smartphone. Mobile technology in education is starting to make waves. In a study conducted by Stanford University countries such as India, Palestine, Mexico are adopting the Pocket School System. This enable students access to educational applications and learn from home without having to take the risk of traveling miles to school every day. There are also applications for the blind which enables them to listen to educational material through the mobile device. Personalized learning environments-Games, apps, and software that automatically scaffold instruction to meet students' ability levels are becoming increasingly common. For example, Lexia Learning's Reading Core5, which is aligned with Common Core State Standards, scaffolds comprehension questions at the end of each activity. Story creation—Using voice recordings, animations, and libraries of photos and drawings, numerous apps now allow students to create and tell their own stories in digital formats. Applications like Toontastic, created by Stanford University's graduate school of education and Zeum, San
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Francisco's Children's Museum, allow students to choose from a set of different scenes to craft a story with a conflict, challenge, climax, and resolution. The PlayTime Theater app, created by a company called Make Believe Worlds, allows students to create a virtual puppet show while recording their voices as the dialogue. The app records the show so that it can be saved and played back. Research supports the idea that engaging both children and their parents in reading can increase the amount of learning a child takes away from a book, and the same holds true for e-books and other electronic media. Several resources are helping increase those moments of connection for parents and students in a variety of ways, including the Pocket Literacy Coach, which sends text messages with ideas for literacy activities to parents' phones. (http://www.edweek.org/dd/articles/2013/02/06/02reading.h06.html)
Whatever is the industry, mobile technology can be applied. The possibilities are endless and the benefits are countless for organizations.
III. COST-BENEFIT ANALYSIS As a group we came up with an assumption to show the impact of Mobile Technology if ever this was implemented in a Montessori School offering Pre-school programs. These are all assumptions to reflect how Mobile Emerging Technologies can help businesses. a. Initial Investment of 150,000 this already includes all fees and hidden costs; assumed savings of 30,000 per year with an increase of 5,000 savings for per year for the next 5 years; 10,000 total yearly depreciation cost, 3 years usable life b. Direct Benefits i. Faster and Convenient Grading Submission ii. Efficient Lesson Plan Database for Teachers linked online for parents review iii. Annual Savings on Operating Costs – Paper, Ink, Electricity, School Supplies and Office Supplies
c. Financial Calculations:
IV. ETHICAL IMPLICATIONS There are a few ethical implications that the group had identified with the massive advancement of mobile technologies. While there are parental control applications that parents or guardians can subscribe to in order to prevent children from accessing inappropriate and/or pornographic content from the internet, there will still be risks of children getting access to these content. Additionally, concerns around data privacy, confidentiality, and security breaches may still linger due to growing presence of social engineers. According to Prof. Simon Rogerson, a number of health issues need to be addressed. There is a contradictory literature concerning microwave transmissions from handsets and ground stations. This is particularly concerning regarding children. Small keypads can cause problems for those with limited dexterity. There is some evidence to suggest repetitive strain injury is a problem for those who frequently send text messages. Finally the use of cell phones and text messaging in particular can become a compulsion or even an addiction. (http://www.ccsr.cse.dmu.ac.uk/resources/general/ethicol/Ecv13no5.html)
He added that trends in use raise some interesting issues. Carrying active cell phones provides a mechanism for surveillance and tracking by third parties. As we increase the use of our mobiles we become more vulnerable to receive a new form of spam - the junk text message. He believes this is becoming an increasing problem. (http://www.ccsr.cse.dmu.ac.uk/resources/general/ethicol/Ecv13no5.html)
Prof. Rogerson added that using cell phones (even with hands-free facilities) whilst driving presents new dangers. A driver's concentration is diverted to the conversation with the person on the phone. This is different from conversation with in-car passengers as in this situation both driver and passenger are aware of road conditions and temper their conversation accordingly. Given the "street value" of cell phones, users are increasingly at risk from mugging when using phones in public spaces.
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The use of mobiles in public spaces raises another issue. Such conversations intrude into others "quiet spaces" and infringe on the privacy of others. This has led to a new concept of "mobile free zones" on trains. Accoding to Rogerson, there is increasing pressure for us to remain in mobile contact when away from the office. The electronically-enabled culture of instantaneous response to the demands of employers and clients has become the norm. He believes we can no longer leave work at the office. (http://www.ccsr.cse.dmu.ac.uk/resources/general/ethicol/Ecv13no5.html)
V. NATION-BUILDING IMPLICATIONS Overall, our group believes that there a few benefits that the advancement of mobile technology can bring to our nation. First, data and information can now be more accessible to the public. This can be very helpful in emergency situations or events that require information to be disseminated the soonest possible time. Second, like the simulation done in our cost benefit analysis, mobile technology can be very advantageous in schools particularly in urban public schools. Third, the Department of Education can gain significant savings from operating costs and also become more efficient in the delivery of grades to students and parents. Mobile voting which may not only be exclusive during elections can also be utilized in gathering public opinion or insights. Government and non-government agencies can gain relevant feedback from the masses based on efficiency and effectiveness of their services or products. Lastly, mobile technology advancements can also increase the market reach of small and medium-sized businesses in the country. These will further support the increasing focus of the current administration in the growth of this sector. References: http://en.wikipedia.org/wiki/History_of_mobile_phones http://www.unesco.org/new/fileadmin/MULTIMEDIA/HQ/ED/ICT/pdf/Kim_Presentation.pdf http://www.gartner.com/newsroom/id/2209615 http://www.strategicgrowthconcepts.com/growth/increase-productivity--profitability.html http://techmedicus.com/trends-in-mobile-medicine http://www.thetechnologycafe.com/create-rich-media-and-3d-mobile-ads-easily-with-amobee-pulse-create/ http://www.edweek.org/dd/articles/2013/02/06/02reading.h06.html http://www.edweek.org/dd/articles/2013/02/06/02reading.h06.html http://www.ccsr.cse.dmu.ac.uk/resources/general/ethicol/Ecv13no5.html
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GROUP2 Al McWalter D. Lim Dunstan Dy Jaja Gerona Angela Jenn Moreto
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BUSINESS INTELLIGENCE INTRODUCTION
Business Intelligence is a set of theories, methodologies, process, architectures, and technologies that transforms raw data into useful information. (Wikipedia)
APPLICATION OF BUSINESS INTELLIGENCE: 1. Analytics - A program that helps a business to arrive at optimal decisions and to carry out business knowledge discovery by building quantitative process. - Examples: Data mining, process mining, predictive analytics, predictive modelling, statistical analysis, business process modelling and prescriptive analytics
2. Reporting - A program that builds infrastructure for strategic reporting to serve the strategic management of a business, not operational reporting. - Involves: o Data Visualization o Executive Information System o OLAP
3. Collaboration Platform - A program that gets different areas to work together through data sharing and electronic data interchange
4. Knowledge Management - A program to make the company data driven trough strategies and practices to identify, create, represent, distribute and enable adoption of insights and experiences that are true business knowledge.
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Source: WIKIPEDIA
TOP 5 CHALLENGES OF BI
1. Lack of Business Intelligence Strategy - BI must have a well-communicated value proposition, DecisionPath says. Symptoms of poor or lacking strategy include: requirements stated as lists of data elements rather than articulated business questions; reluctant approvals from the executive level; specific plans for embedding BI in processes; and vague or generic value returns
2. Lack of BI Readiness - There are a few questions your organization should be able to answer to best gauge the conditions for a successful implementation. Does your organization have and consistently use a framework for prioritizing and managing BI investments? To what level do you know the quality of your data? Do people within the organization possess necessary BI skills and methodology? Can your organization identify and address risk and change management associated with a BI initiative?
3. Lack of Direction - There may be multiple data warehouses, BI environments and user communities within an organization over time, so coordination is in order to prevent rogue management. To prevent multiple unintegrated BI systems, data repositories and “versions of the truth,� make sure an overarching strategy/roadmap and a BI data architecture plan are in place.
4. Lack of Execution -BI strategy and tools are crucial, but so is the follow-through. This can cause, among other problems, issues for end users with ease of use, response time and accuracy, report processing and dashboard motifications, and delivery on functionality. Successful, repeatable BI execution requires sufficient and sustained funding and support, internal or external BI staff, and use of BI-specific development methodology.
5. Lack of BI Impact - The time to develop business benefits is at the very start of the BI lifecycle. The requirements-gathering process for BI must connect requirements for information to its use, users, KPIs and strategic objectives in the business process. Source:
http://www.information-management.com/resource-center/?id=10021450
STEPS FOR A SUCCESSFUL BI IMPLEMENTATION 1. Get the right data at the right time
- It is very important to ensure that there is sufficient data available to plot your progress in certain areas. This would require first analyzing the reports and trends, not limited to meaningful use stages. Second, identify at what frequency the data will need to be reported on for each department within the organization.
can make a world of difference. In most successful organizations, the executive team realizes that in order to keep the finger on the pulse you must have a near real-time exposure to stats, scorecards, and other meaningful measures like mobile devices.
4. Define reporting and analysis intervals - For the data to be properly analyzed and meaningful, it must query from the production system at different frequencies. This will store it at different processing data repositories. But in order to avoid performance issues, one must plan the difference extraction and processing frequencies ahead.
5. Select the right tools - The needed tools would vary depending on the business’ overall data size, current platform, in-house skills set, physical architecture, mobile app capabilities and support.
6. Hire professional help - It is recommended to work with an expert or third party vendor to ensure that the implementation is done correctly since the complex requirements require a deep understanding of the data model, metadata, data integration, quality, analytics, and different management metrics. Source:
http://searchhealthit.techtarget.com/healthitexchange/meaningfulhealthcareinformaticsblog/top-7-steps-for-a-successful-business-in telligence-implementation-in-a-meaningful-use-era/
2. Define where the data is - The majority of the analysis will be applied against existing data that has been collected through the busienss system and internal applications. But there are a few data sets that will need to come from third party entities and/or other public groups.
3. Share the value with the rest of the group - Unfortunately, not everyone appreciates the power and value of BI provides to organizations. But it can be sometimes just a matter of education that
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DATA ACQUISITION Business Analytics revolve around the acquisition, presentation and data enrichment or analytics. As such the definitions of these are vital. The definitions are the following: 1. Data - Items that are the most elementary descriptions of things, events, activities, and transactions 2. Information – organized data that has meaning and value 3. Knowledge – processed data that conveys understanding or learning, applicable to a problem or activity Starting with data, the following acquisition can be collected manually or via instrument. Quality is critical in this process. This can be determined by usefulness as listed: 1. Contextual data quality 2. Intrinsic data quality 3. Accessibility data quality 4. Representation data quality These are essential since data acquisition and can run into a lot of problems. Among which are presented at the table below (Table 5.1).
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Given that data must be cleansed when populating data warehouse. In addition, data integrity issues such as uniformity, completeness, and conformity must be checked essentially before storage or subsequent analysis. Upon reaching data integration, access to multiple sources would be required. This is often enterprise-wide. Usually problem arises when data is disparate and heterogeneous. This is when XML languages are not only essential, but standardize language. Extensible Markup Language is a language format that is both readable to man and machines. It is simplified and straight-forward. External data sources can be rooted from the web or commercial databases if not found within the company. Commercial databases are specialized databases that sell them.
DATABASE AND WAREHOUSE By definition, a database is an organized collection of data and the organization is made possible through the following methods: 1. Hierarchical • Top down, like inverted tree • Fields have only one “parent”, each “parent” can have multiple “children” • Fast 2. Network • Relationships created through linked lists, using pointers • “Children” can have multiple “parents” • Greater flexibility, substantial overhead 3. Relational • Flat, two-dimensional tables with multiple access queries • Examines relations between multiple tables • Flexible, quick, and extendable with data independence 4. Object oriented • Data analyzed at conceptual level • Inheritance, abstraction, encapsulation 5. Multimedia Based • Multiple data formats • JPEG, GIF, bitmap, PNG, sound, video, virtual reality • Requires specific hardware for full feature availability 6. Document Based • Document storage and management 7. Intelligent • Intelligent agents and ANN • Inference engines This all leads to data warehousing, which is a central repository of integrated data from different sources. This is used for reporting and data analysis. These are divided into Marts, which stores subsets of data from warehouse.
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BUSINESS INTELLIGENCE AND ANALYTICS Just to review, the following definitions are given below: 1. Business intelligence • Acquisition of data and information for use in decision-making activities 2. Business analytics • Models and solution methods 3. Data mining • Applying models and methods to data to identify patterns and trends Source: www.saffrontech.com
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ONLINE ANALYTICAL PROCESSING (OLAP) This is an approach to answering multi-dimensional analytical (MDA) queries swiftly. It has three basic analytical operations: 1. Consolidation - aggregation of data that can be accumulated and computed in one or more dimensions 2. Drill-Down - allows users to navigate through the details 3. Slicing and Dicing - users can take out (slicing) a specific set of data of the OLAP cube and view (dicing) the slices from different viewpoints The activities that can be performed by end users in these online systems are the following: 1. Specific, open-ended query generation a. Structured Query Language (SQL) - special-purpose programming language designed for managing data held in a relational database management system (RDBMS). 2. Ad hoc reports 3. Statistical analysis 4. Building DSS applications – decision support systems It also provides modeling and visualization capabilities for the end-users, whichever department or point-view necessary.
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DATA MINING This is a method that organizes and employs information and knowledge from databases. It uses statistical, mathematical, artificial intelligence, and machine-learning techniques. Furthermore, it can be automatic and immediate if the applications are in place. It uses patterns on models, be it simple, intermediate or complex. It is centered on hypotheses and is iterative. In addition since it employs arithmetic, it can be scalable. It can provide these: 1. Classification 2. Clustering 3. Association 4. Sequencing 5. Regression 6. Forecasting 7. And many others Tools and techniques that are possibly used are the following: 1. Statistical methods 2. Decision trees 3. Case based reasoning 4. Neural computing 5. Intelligent agents
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A specific example of data mining is text mining. It sometimes referred roughly to text analytics. This is the process of deriving high-quality information from text. This can be used to determine hidden contents, theme grouping and relationships of texts.
BUSINESS INTELLIGENCE EXAMPLES PowerPivot empowers users of all levels to
access and mashup data from virtually any source. Users can create their own compelling reports and analytical applications, easily share insights, and collaborate with colleagues through Microsoft Excel and SharePoint. SQL Server 2012 introduces Power View, providing SharePoint users with highly interactive, browser-based data exploration, visualization, and presentation capabilities. With Office 2013 release, both PowerPivot and Power View capabilities are available to users right in the Excel 2013 box.
http://www.microsoft.com/en-us/bi/powerpivot.aspx
Oracle Business Intelligence Foundation Suite Provides comprehensive capabilities for business intelligence, including enterprise reporting, dashboards, ad-hoc analysis, multi-dimensional OLAP, scorecards, and predictive analytics on an integrated platform. Oznur Topuz, business intelligence manager, Tukas Food Industry – “ Our important monthly reports were prepared in 20 days and after (Oracle Business Intelligence Foundation) we are producing these reports daily." http://www.oracle.com/webapps/dialogue/ns/dlgwelcome.jsp?p_ext=Y&p_dlg_id=13104170&src=7665731&Act=20&sckw=WWMK120 66243MPP004
InetSoft Technology Since 1996 InetSoft has been delivering easy, agile, and robust business intelligence software that makes it possible for organizations and solution providers of all sizes to deploy or embed full-featured business intelligence solutions. Application highlights include visually-compelling and interactive dashboards that ensure greater end-user adoption plus pixel-perfect report generation, scheduling, and bursting. InetSoft’s patent pending Data Block™ technology enables productive reuse of queries and a unique capability for end-user defined data mashup.
This capability combined with efficient information access enabled by InetSoft’s visual analysis technologies allows maximum self-service that benefits the average business user, the IT administrator, and the developer. InetSoft solutions have been deployed at over 3,000 organizations worldwide, including 25% of Fortune 500 companies, spanning all types of industries. http://www.cbronline.com/companies/inetsoft_technology_corp
SAP NetWeaver BI Integrated Planning for Finance Analytical, reporting and Data Warehousing solution produced by SAP AG. It was originally named SAP BIW (Business Information Warehouse), then abbreviated to SAP BW, but is now known as "SAP BI" at the end user level. In contrast, "BW" is still used to describe the underlying Data Warehouse Area and Accelerator components. It is often used by companies who run their business on SAP's operational systems. BI Integrated Planning tool, an integral part of the SAP NetWeaver 2004s platform. Learn how best to configure, develop, and manage a planning application. Make BI Integrated Planning for Finance more accessible. Real-world, practical examples help you learn vital concepts via a step-by-step, easy-to-understand approach. You'll quickly enhance your understanding of the importance of planning and then leverage that knowledge to build a complete financial planning application using SAP BI Integrated Planning. http://www.sap-press.com/products/SAP-NetWeaver-BI-Integrated-Planning-for-Finance.html
Source 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang
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SWOT ANALYSIS STRENGTHS
WEAKNESS 1. Costly and expensive to 1. Can accommodate multiple users customize 2. Extremely 2. Good compilation of best expensive to practices for different industries purchase 3. Good track record 3. Charges per user 4. Takes a lot of time and money to train 4. Global clientelle users OPPORTUNITIES SO STRATEGIES WO STRATEGIES 1. Many SMEs who went about 1. Sell BI per module their business without for it to be more computerization are becoming 1. Penetrate more SME affordable more tech- conscious. (S2,S3,S4,O1,O2,O3) (W1,W2,W3,O1,O3) 2. Technology is known to create efficiency 3. Greater need for companies to differentiate themselves due to tiff competition 4. Faster paced world forces companies to keep up using BI THREATS
ST STRATEGIES
WT STRATEGIES
1. Many small programmers
1. Differentiate BI from other programs by highlighting its track record and dependable effectivity and efficiency. (S2,S3,S4,T2)
1. Penetrate companies by selling per module and per user (W1,W2,T1,T2)
2. Cheaper alternatives 3. Customized programs available in the market 4. Traditional organization are hesitant to change 5. Many companies do not understand their business process well enough to determine how to improve them
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2. Use practices from its compilation to help companies understand its busienss process (S2, T5)
CBA ANALYSIS Costs Implementation Planning Contract Labor Internal Implementation Labor Capital Costs Implementation Cost Amortized Implementation Ongoing Maintenance Contract Operational Costs Ongoing Monthly Costs Monthly Cost
Unit
Entry
Extended
Hours Dollars Hours Dollars
240 15,400 860 15,500
10,380 15,400 37,195 15,500 78,475 1,635
Dollars/Month Dollars/Month
1,250 1,166
1,250 1,166 2,416 4,051
Planning: Enter the number of hours
estimated to complete all planning activities. In the sample there were 120 hours of planning by the accounting department, sales and marketing required 40 hours, and the IT department put in 80 hours.
Contract Labor: This entry is for all
implementation costs for work provided by outside contractors. In the sample project, all implementation activities were provided by an IT consulting firm and totaled $15,400.
Internal Implementation Labor: Enter
the number of hours estimated to complete all installation activities by internal corporate resources. In the sample, the IT team provided 240 hours of installation labor, and the accounting team worked for four weeks total (640 hours).
Capital Costs: This entry should include all equipment and material purchased to complete the project. In the sample, installing the system required implementing a new server at a cost of $15,500. Maintenance Contract: Include any
ongoing monthly costs paid to outside contractors, vendors, or agencies relating to the ongoing mainte-
$
nance of the system. In the sample, ongoing maintenance for the system is paid monthly at a cost of $1,250.
Operational Cost: This entry includes all
expected monthly operational costs. This includes internal labor, expendables, and expected upgrades through the life of the system. In the sample, a specialist in the accounting area will be trained in the weekly system maintenance functions and will devote four hours per week to those activities. In addition, IT has allocated $15,000 annually for support activities and upgrades. Project benefits This section details the expected benefits of the project:
Productivity Savings: Outline the monthly savings expected to result from increases in productivity. These are typically “soft� costs, and may be the number most subject to scrutiny. I am typically very conservative in estimating these numbers. In the sample, the new system is expected to reduce the manual labor necessary to support customer purchases by one full person, for a net total annual savings of $28,600. Expense Reduction: Detail the expected savings because of a reduction in expenses. These 18
should be measurable "hard" dollar costs. In the sample, no specific dollar savings are expected.
Increased Sales: If the project is expected
to result in increased sales, outline the increase in number of units sold on a monthly basis. For service business, the units here will be hours or contracts. In the sample project, the company expects to increase unit sales 25 percent based on customer demand for an online solution.
Decreased Cost of Goods Sold: Any
reduction in production cost for goods to be sold is outlined here. The reduction should be the marginal difference in production cost. In the sample project, no decreased cost of goods sold is expected.
Calculate monthly benefit The cost/benefit results are shown as two figures:
Total Monthly Benefit (or Cost): The expected
monthly benefit (or cost) over the life span of the system is shown here as a sum. This is almost never a level benefit. Many projects produce an increasing benefit over time, which is better projected using a month-to-month cost/benefit analysis. We have assumed a level benefit in this example for simplicity. In the sample project, the company expects to receive $3,407 in monthly benefit for a total implementation cost of $78,475.
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Payback Months: The payback is the number of months before the initial investment is returned (assuming a positive monthly benefit). In the sample project, the payback for our example company, including all implementation costs amortized over the life of the system and all operational costs, is calculated at 11 months. For traditional businesses, that is a relatively short payback period. This analysis is only as accurate as the numbers that are entered. Use this sheet as a guideline for developing your own analysis. The basic format can be tweaked for services, application systems, prod-
ucts, or any other project output. - CBA data presented here are for informational purposes only.
BUSINESS INTELLIGENCE ETHICS Ethics is a discipline dealing with what are good and bad, having a moral duty and obligation. It is a set of principles or values to be followed, in this particular case, in Business Intelligence. As such, there are common moral and ethical dilemma common in business intelligence and the IT field in general. These are the following:
Privacy – Since business intelligence
includes data of not only the company and other related entities, but also, people in it. Problem arises when the information is used for other matter, outside business, such as personal intents. Security is vital here.
Accuracy – Accuracy is costly. Because of
that, data may not be accurate or representative of the reality. This could lead to inaccurate interpretation and prejudice.
Property Ownership and theft – Since
Information can be construed as a property, Business Intelligence might lead to neglect of this ownership for the improvement of the company. This is especially true for competing companies such as the likes of Apple and Samsung.
Accessibility – Given that we are in the information age, information is power. It provides leverage to those who have access to it and they can hide/omit vital information to the public to further the company’s cause at the expense of general public. Other common ethical issues arising from Business Intelligence are identity theft, financial accountability, Nation’s security, and many others. To put simply, the information in Business Intelligence can be used in many other ways, ignoring rights, justice care and the common good.
NATION BUILDING Business Intelligence provides data, information and knowledge for decision makers to decide intelligently and accordingly. As such, these decisions may not be limited to corporate managers, but also, policy makers in government and respective agencies. Business Intelligence, if shared appropriately with the right people, can lead to more informed decisions for our nation’s leader, be it in economics, society, or technology. A good example is project Noah in the country. It is a project of DOST to create an accurate, integrated and responsive disaster prevention and mitigation system. Although, it is more scientific than business, the spirit is still the same, using the same technology mentioned above for better informed decisions.
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GROUP3 Liza Angot Chip Canoy Nori Saito George Sarmago
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SOCIAL MEDIA AS AN EMERGING TECHNOLOGY TRENDS IN SOCIAL MEDIA
prise social media. Chart 1 below shows the forms of Social Media.
What is Social Media? Social Media are websites and internet applications (apps) which give users the capacity to share items of interest, play games with each other and express their opinions publicly. (wolframalpha.com) Social media allow users to create, recreate, share, discuss and exchange information using a multimedia mix of personal words, pictures, videos, and audio. (wikipedia.com) Social media apps are commonly associated with Web 2.0 – the term often applied for the World Wide Web shift from a collection of websites to a fully fledged computing platform serving web apps to end users. Social media are the tools and technologies combined with social interaction that create communication and value. (arteducators.org)
Forms of Social Media Although social media may seem to be a relatively recent phenomenon, MediaBistro.com, an international resource for media professionals, illustrated in its ‘History of Social Media’ “how the internet has always been social”. The first personal blog published in the web was in 1994 by a student from Swarthmore College. Justin Hall launched his website “Justin Links from the Underground” to connect to the ‘outside world’. Hall later would become known as the “founding father of personal blogging”. Web logs or blogs are websites that are maintained by an individual or a group that have regular entries of commentaries, perspectives, information and descriptions of any topic; often posted with pictures, videos and web links. The act of maintaining or adding content to a blog website is called blogging and the person doing so is commonly called a blogger. A blog is one of the many platforms that com-
Perhaps the most popular and largest player in social networking is Facebook. The Facebook was founded in 2004 by Harvard students Mark Zuckerburg, Eduardo Saverin, Dustin Moskovitz and Chris Hughes. Originally introduced within the Harvard community, its popularity then spread to other colleges; which will be eventually made available to the rest of the world. Creating and maintaining a Facebook account is free of charge and as written it its homepage, “it’s free and always will be”. It’s easy to connect and communicate with friends in Facebook. This is probably the reason why about 10.5 billion minutes are spent by users on Facebook each day. Facebook has over a billion of active users as of September 2012 (Wolframalpha.com) and the Philippines ranks no. 8 with the most no. of users on Facebook (checkfacebook.com). There are over 30 million active Filipino Facebook users.
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SOCIAL MEDIA TRENDS
4. Real-time information exchange – powerful communication and collaboration enabler
1. Image-based posts - Using imagery in the right ways to ignite conversations and interactions; Popular social media apps in this catgeory: Pinterest and Instagram
5. Direct interaction and engagement with an audience (human factor)
2. Video-based posts - posting of 6-minute videos via the newest social platform (so far) is the Vine 3. Internal/private social media networks - Many companies are creating their own internal social media networks to boost morale, share news, gain feedback and solicit ideas for improvement. 4. Broader demographics – Social media usage may not be strictly an under-30 activity. Research shows that 57% of those 50 to 64 years of age and even 38% of those over 65 are also engaged on at least one social network. 5. Personal Branding – the use of social media platforms in building the breadth and depth of one’s personal brand (may replace traditional resumes according to Forbes.com). 6. Mobile Social Media – more users access social media thru mobile; the rate of growth in mobile usage will exceed the growth in usage through personal computers for the foreseeable future.
Weaknesses: 1. Risk for information leakage 2. Bad publicity/exposure of an organization’s weaknesses nesses
3. Has no solid revenue model yet for busi-
4. Hard to maintain: Because of its vast media exposure, significant time and dedication are needed to correctly manage social media platforms. 5. Some managements see that it affects productivit
Opportunities: 1. Apps to drive marketing campaigns and engage in real-time dialogue with customers 2. Capability to integrate tools that have a unique ability to catalyze varied interactions and enable easy data searching and archiving 3. Tools or resources to track and monitor social media campaign results
SOCIAL MEDIA:
4. Creating/joining online presence on sites where an organization currently doesn’t exist; Reach out to certain groups that traditional media didn’t allow
Strengths:
5. Penetration into a new geographical market/ market segment
SWOT ANALYSIS OF SOCIAL MEDIA 1. Large market reach; multimedia exposure as most of the social media platforms are integrated 2. Easy to set up; simple but powerful 3. Highly - diversified active community / organization members (across industries/interests); Allows one to build short and long term relationships with prospects
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free
6. Cost-effective, most of the platforms are
6. Recruitment Tools for organizations/communities 7. Feedback Management apps – opportunity to enhance customer service or experience (e.g. Private-platform social media that can expedite the dissemination of time-sensitive information such as upgrades and announcements and reduce time to
respond to end-user queries)
Threats:
1. Government regulations such as blocked social media sites (i.e. China, etc) 2. Social media sites hackers 3. Unauthorized social media accounts/misrepresentation
below shows excerpt of a research conducted by Harvard Business Review Analytics Services on the varying benefits of social media depending on the users’ effectiveness in managing them.
BUSINESS/INDUSTRY/EDUCATION
APPLICATIONS OF SOCIAL MEDIA
Times are constantly changing, and the opinion of viewing social media in business applications as a passing fancy are well behind us. Social media is not just reserved for teenagers wanting to socialize online anymore. Today’s companies are realizing that utilizing social media in their enterprise use is no longer the exception, but instead, a necessity. Areas in companies such as sales, marketing, R&D, HR, and customer service understand the potential for utilizing social media to facilitate innovation, build brand recognition, hire and retain employees, generate revenue, and improve customer satisfaction.
Businesses have seen not just a return on their investment, but also revenue increases from the use of social media. But enterprises must be cautious since there have also been negative impacts such as liability for libel, privacy violations and damage to brand recognition.
Social media use is no longer just an option for enterprises that want to lead in today’s business world. The way a company uses social media impacts brand reputation and customer perception. A 2009 study conducted by ENGAGEMENTdb found that the most valuable brands in the world are realizing a direct correlation between top financial performance and deep social media engagement. Findings found in the study show that businesses that aggressively adopt social media as part of their strategy are more successful financially.
Businesses are utilizing social media in various functional aspects of the business and are reaping substantial benefits such as improved brand recognition and increased sales, as well as increases in web traffic, customer satisfaction, search engine optimization, and revenue. Social media has become a useful tool for enterprises internationally. A 2010 study conducted by Burson-Marsteller showed that of the Fortune Global 100 companies, 65 percent have active Twitter accounts, 54 percent have Facebook fan pages, 50 percent have YouTube video channels and 33 percent have corporate blogs.
Social media has significantly changed the way we communicate and interact. With every major event we experience today for example, it would not be surprising to have instant social media feeds linked to it. Brand experiences are not exempted to this also - a positive brand experience can be shared right away to a number of audiences. Social media’s vast and cost effective reach add up to the many reasons why social media has become an essential marketing tool in most businesses nowadays. Chart 2
Companies have also discovered that they are able to observe the market, as well as their competition and their customers through social media outlets. This allows businesses using social media to be aware of any changes that may be called for and to proactively make the needed adjustments to products, services, or even strategies. Additionally, instant feedback and consumer insights provide a venue for executives to assess consumer opinion and enables them to use this information to further
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improve products, customer service and company perception. According to the 2012 Social Media Marketing Industry Report listed in Forbes.com, here are some of the roles social media is currently playing in the business world: 1. 94% of all businesses with a marketing department used social media as part of their marketing platform 2. Almost 60% of marketers are devoting the equivalent of a full work day to social media marketing development and maintenance 3. 43% of people aged 20-29 spend more than 10 hours a week on social media sites 4. 85% of all businesses that have a dedicated social media platform as part of their marketing strategy reported an increase in their market exposure 5. 58% of businesses that have used social media marketing for over 3 years reported an increase in sales over that period One of the success stories in social media was shared in socialmediastrategiessummit.com. In 2012, IKEA launched an interactive shopping catalogue called Celebrate Brilliantly. The Swedish furnishing giant packed it with video clips that incorporate sharing options for users who want to send gift ideas to family members and friends via Pinterest and Facebook. Their campaign demonstrates the value of making sharing seamless and easy, as well as the possibilities that come with user-generated content (UGC) in a consumer setting. UGC refers to various kinds of media content that are produced primarily by end users.
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The capability to search for and communicate with potential employees is another area that has been improved by using social media outlets such as LinkedIn. Because of its user-friendliness and its ability to reach a large amount of prospective employees almost instantly, social media is becoming a powerful force in the way businesses communicate, attract and engage their customers, employees and
other stakeholders. Students are benefiting from social media as well. I’m not only referring to them using social media to show off their new outfit or chat about who’s dating who. They are using it to share resources for homework assignments. They are using Twitter to get informed on the latest breaking news. Their blogs have been helping them improve their writing and grammatical skills. Across the world, educational councils are turning what was used to be viewed as a distraction into an asset in learning. In 2006, councils in Wales blocked social networking sites, such as Facebook, from being accessed in school. But on March 6, 2013, Welsh Education Minister, Leighton Andrews, said the ban would be reviewed to allow students make use of the social media in teaching and learning situations. “To help children and young people develop the skills and knowledge, they need to become confident digital citizens, we need to teach them how to use the internet safely under supervision and independently,” Andrews said. A professor of Educational Technology at the Obafemi Awolowo University, Ile-Ife, Osun State, Prof. Lade Adeyanju, who is also the Vice-President of the Nigeria Association for Educational Media and Technology, adds that integrating social media in educational experiences of students will help them nurture a positive attitude towards the use of technology, not only in their education, but in their lives. He says, “At this digital age, teaching, learning and various educational activities should revolve around social media. In this vein, a teacher or lecturer as the case may be, can create a Facebook page, which he regularly updates and post assignments, tutorial questions, suggestions for further reading and also receive feedback from the students.” Today’s student that becomes savvy in the ways of social media at an early age is going to be able to utilize those skills once they become tomorrow’s professionals. Their ability to communicate effectively through social media will definitely become an asset in a business world that growing increasingly dependent on it.
COST-BENEFIT ANALYSIS Social media is still in its infancy compared to other methods of marketing and communication. Like with other relatively new platforms, organizations are often skeptical and weary of committing whole heartedly to this relatively brand new effort. One of the main attractions of social media is the low set-up costs that are associated with its initial effort. However as the saying goes the devil is in the details. At its core social media is another tool that companies use to communicate with its stakeholders, and as such it needs to be carefully thought out. Depending on the type of social media and its content, the cost of setting up a specific program will vary. (See Table 1) The various social media companies are making a conscious effort to make their particular brand as user friendly and intuitive as possible. With the intent of completely eliminating any trace of a user’s manual, it’s very easy to be lulled by the attractiveness of social media. Regardless if an organization decides to do its social media campaign on in-house or hire someone from the outside, there will be other costs associated with maintaining a social media effort. Unlike the casual user, organizations that utilize social media must plan, organize, and control their efforts. Management and staff alike must realize that an individual that utilizes social media in his or her personal capacity does not automatically make that person an expert. Like any other marketing, customer service, and communication efforts, dedicated personnel must be in place. One of the biggest misconceptions of social media is that it’s completely and entirely free of cost. That statement couldn’t be farther from the truth. The cost of human capital and the time it takes to maintain social media avenues tends to be brushed aside. Some studies show that an average employee spends approximately 10 hours interacting with a particular form of social media. When translated into a typical 40 hour work week, that equates to 25% of an entire work week. Had this task been delegated on a part-time basis to some person in-house with other responsibilities, the pros-
pect of success would be very low. In addition to the manpower and time it takes to facilitate a proper social media endeavor, companies need to be aware of the fees that consultants charge for more complete metrics, monitoring, audits, and strategies. Training, consulting, workshops, speakers, and the like will also require some spending if a company decides to use these extra services. Comprehensive applications that complement social media are also available for use to the public. However some of these coveted applications that companies value are usually the ones one has to pay for. To sum it all up, there are technical and creative costs that need to be considered when venturing into a social media campaign. As mentioned earlier, social media has transformed the landscape in which companies interact with its stakeholders. Customer care, awareness, and reputation management are some of the direct benefits that social media bring to the table. Chris Silver Smith of searchengineland.com brings to the forefront several indirect benefits of social media. These consist of search engine optimization (SEO), proactive online reputation management (ORM), and availability. As mentioned in Smith’s article, search engines such as Bing and Google take into account social media activities in the mix. It should be noted that social media should not be used as a primary method of marketing, but rather a secondary instrument that complements existing mechanisms in place. So how does this all culminate into a company’s success? How is the effectiveness of a social media campaign measured relative to financial success? Instinctively, sales figures would be examined and compared to the amount of invested into the social media campaign. However, it is very difficult to differentiate the effectiveness of a social media campaign that coincides with other offline activities. Instead of measuring the effectiveness in terms of return on investment and return on equity, perhaps a dynamic shift needs to take place. Instead of investment, a more appropriate term would be return on innovation and likewise return on engagement or experience. It is not appropriate to measure social media in terms of financial return, but the success of
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the entire business should considered when analyzing the success of social media and its positive effects on a company.
ETHICAL IMPLICATIONS OF SOCIAL MEDIA The use of social media in the workplace revolutionizes our notion of how work is accomplished. In fact, it opens opportunities for employees to stay in touch with the rest of the world at the tip of their fingers. This is especially important for people who spend most of their time staring at their PC’s trapped in their desks or cubes. Among the benefits of social media is that it allow organizations to perk up communication and productivity by circulating information without them necessarily moving from desk to desk. It makes communication more efficient by capitalizing on virtual updates and information instead of physical movements and manual effort. But like in all things, we need to examine if these media provides the greatest good for the greatest number and if it is just and is fair to the parties concerned. Now let’s go into the ethical dimension of social media and discuss how it impacts the business. If you look at it from a utilitarian point of view, social media creates the maximum utility across the board.
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their employers paid them to do. • It puts confidential and personal information at risk from being shared to recipients that can possibly cause harm to employees or the company itself. • It opens possibility of people falling prey to online scams, fraud, viruses and identity or data theft. • It can be a platform to negative comments from employees about the company or fellow employees. It is important to note that access to social media in the workplace is a privilege and not a right so employers can control access that can benefit them and maximize office hours. But this might not yield maximum results. If employees are granted access to social networking platforms, then a comprehensive and well-defined policy should be in place to protect the employees and the company as well. Social networking policy generally includes the following elements: • Define what social networking is necessary to your organization and employees should be educated what is meant by the term. • Disseminate a clear and defined purpose for the policy. Communicate benefits of social networking and of having a policy.
• It improves business reputation and client base with minimal use of advertising.
• Provides a clear platform for educating employees.
• It can target a wide audience with minimum effort taken to get their attention.
• Take into consideration any legal ramifications of violating policy.
• It enhances information technology and makes communication faster with lesser manpower needed.
• Refer to confidentiality of employer trade secrets and private or confidential information.
• It provides an avenue to tap great ideas and maximize the talents of the workforce. All in all, social media would provide the greatest pleasure to the most number of people professionally and personally. But social media has its downfall too. And is an issue of rights and justice. • It removes employees away from doing what
• Conduct monitoring of social networking outside of company time/property that could be associated with the company, employees or customers. Social media is such a dominant force that it needs to be controlled in a way that it can be beneficial. The risk is great but the reward is greater. That is why it is very important to know our ethical responsibilities not just to our fellow employee and our employer but to our own self as well
Sources: http://anikocommunication.wordpress.com/swot-analysis-for-twitter/ http://business.financialpost.com/2012/12/05/social-medias-productivity-boost/ http://www.fastcompany.com/3004604/social-media-trends-cant-be-ignored-2013 http://www.slideshare.net/AdamVincenzini/social-media-trends-2013-16451026 http://www.forbes.com/sites/jeannemeister/2013/01/03/2013-the-year-of-social-hr/ http://en.wikipedia.org/wiki/Social_media http://windmillnetworking.com/2012/12/21/best-social-media-books-2012/ http://www.forbes.com/sites/moneywisewomen/2012/08/08/the-developing-role-of-social-media-in-the-modern-business-world/ http://www.uncp.edu/home/acurtis/NewMedia/SocialMedia/SocialMediaHistory.html http://www.mediabistro.com/alltwitter/history-of-social-media_b30226 http://www.forbes.com/sites/jeffbercovici/2010/12/09/who-coined-social-media-web-pioneers-compete-for-credit/2/ http://www.arteducators.org/news/nationalconvention/Scott_Linda_Conv10_SociaMedia101.pdf http://www.parl.gc.ca/Content/LOP/ResearchPublications/2010-03-e.htm http://www.checkfacebook.com/ http://socialmediastrategiessummit.com/blog/the-top-10-social-media-success-stories-of-2012-what-we-can-learn-from-them/ http://hbr.org/web/slideshows/social-media-what-most-companies-dont-know/1-slide http://www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport2012.pdf
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Class Directory Paul Inso Althea A. Gallardo Josias F. Jorgio Bill Santillan Al McWalter D. Lim Dunstan Dy Jaja Gerona Angela Jenn Moreto Liza Angot Chip Canoy Nori Saito George Sarmago
Publishing Head: Angela Jenn Moreto AGSB Cebu Campus May 3, 2013