The Profit Impact of Business Intelligence

By 1999, however, it had become increasingly concentrated and global.

revenue-generating processes such as market analysis, customer segmentation, campaign management, advertising, channel management, customer relationship management (CRM), sales force management, and pipeline management.

Typically, organizations grossly underestimate the effort required to institutionalize and optimize the use of the BI asset.

Because motivating and retaining its most valuable casino customers is a key driver of profits, Harrah’s has refined its customer relationship management process, a core business process.

an effective complement of BI products can run to several million dollars at the enterprise level.

Developing a BI COE is a good way to set in motion a BI program aimed at maturing an organization’s current BI capabilities. It signals an organizational commitment to developing world-class BI capabilities.

The ability to obtain both detailed and summary, historical information in an integrated and timely fashion and to create new information using business rules (e.g., identifying “highly valued customers”) affords companies an opportunity to rethink how they can leverage information to improve profits.

IBM, Oracle, Sybase, and SQL Server dominate the RDBMS market. Teradata, a proprietary database management system, is also widely used in the industry.

successful organizations can be distinguished by their ability to leverage IT capabilities to transform their businesses (structures, processes, and roles) to obtain powerful sources of competitive advantage in the marketplace.” —John Henderson and N. Venkatraman, Center for Information Systems

The challenges of operating in a highly regulated industry, which drives claims processing and systems requirements that reduce operational flexibility.