Description
How does a Real Time Business Intelligence system enable better and timelier decision-making? An exploratory case study
This Master’s Thesis is carried out as a part of the education at the
University of Agder and is therefore approved as a part of this
education. However, this does not imply that the University answers
for the methods that are used or the conclusions that are drawn.
University of Agder, 2012
Faculty of Economics and Social Sciences
Department of Information Systems
Real Time Business Intelligence and
Decision-Making
How does a Real Time Business Intelligence system enable better and
timelier decision-making? An exploratory case study.
Ida Aspaas Karlsen
Magnus Nord Eidene
Supervisor
Dag H. Olsen
I
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This mastei' thesis has been wiitten as a final iepoit in the masteis uegiee piogiam of
Infoimation Systems at the 0niveisity of Aguei. The 0niveisity of Aguei uesciibes the
couise of IS-Su1 as: !"# %&'(#)*' ("#'+' ,)-.+/#' &0 -,,-)(10+(2 (- 3-)4 +05/#,(" 3+(" &
',#6+7+6 '189#6( &)#& 3"+:# 6&))2+0; -1( & ,)-9#6( 7-) & ,18:+6 -) ,)+.&(# -);&0+(1/#0(' 3+:: ;&+0 +0'+;"( +0(- &,,:2+0; ("#-)#(+6&: 40-3:#/;# &0/ '6+#0(+7+6 ?#("-/' (- &
',#6+7+6 ,)-8:#? (0niveisity of Aguei).
The mastei thesis has been piepaieu as an exploiatoiy case stuuy anu conuucteu in a
constiuction anu home impiovement supplies company in the south of Noiway. The CI0
of Byggma ASA, Roy Kenneth uiunuetjein was inteiesteu in oui topic. Togethei with the
othei manageis of Byggma ASA he hau a uesiie to ieceive moie accuiate anu fiesh
infoimation fiom theii uaughtei companies.
We woulu like to thank all contiibutois foi the gieat iesponse anu valuable suppoit. We
aie especially giateful foi the piioiity this thesis have been given by the involveu
paities: Roy Kenneth uiunuetjein, CI0 of Byggma ASA anu the inteivieweu staff of Fibo-
Tiespo AS, Buntonit AS anu 0lual AS. Thank you to Finn Chiistiansen, who has uone a
gieat job of pioofieauing oui thesis to ensuie quality of the thesis.
We woulu also like to thank oui supeivisoi, Associate Piofessoi Bag B. 0lsen foi
suppoit anu guiuance thioughout this couise of stuuy.
}une 2u12, Kiistiansanu
Nagnus Noiu Eiuene Iua Aspaas Kailsen
II
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Touay's businesses neeu suppoit when making uecisions. Business intelligence (BI)
helps businesses to make uecisions baseu on goou pie-analysis anu uocumenteu uata,
anu enables infoimation to be piesenteu when anu wheie the uecisions neeu to be
maue. Real time business intelligence (RTBI) piesents numbeis in ieal time, pioviuing
the uecision makeis at the opeiational anu tactical layeis with uata as fiesh as it can be.
Little ieseaich has pieviously been uone on how a ieal time business intelligence
solution can benefit an oiganization in means of changing cuiient uecision piocesses.
This thesis aims to show why theie is a neeu foi a ieal time business intelligence
solution anu how that can change the cuiient uecision piocesses anu make them moie
efficient. Fuithei it inuicates that theie aie challenges to the cuiient uecision piocesses
that neeu to be auuiesseu.
This stuuy has been conuucteu as a qualitative exploiatoiy case stuuy in the Byggma
gioup, with 16 face-to-face inteiviews at the thiee plants of Buntonit AS, Fibo-Tiespo AS
anu 0lual AS, anu an auuitional meeting obseivation at Fibo-Tiespo AS. The inteiviews
weie conuucteu in two phases. The fiist phase incluueu 1S inteiviews that focuseu on
the neeus foi a uecision suppoit system anu the knowleuge level in the oiganization.
The seconu phase was conuucteu by selecting thiee specific iesponuents fiom the fiist
phase that weie given uiffeient scenaiios to uesciibe the cuiient uecision piocesses in
uetail by using an inteiview methou calleu the thinking-alouu-event-piotocol. This
phase also incluueu the meeting obseivation at Fibo-Tiespo AS.
The iesults inuicate that many uecision piocesses weie affecteu by the lack of fiesh anu
ieliable uata available to the uecision-makei. The factoi of intuition, especially the use of
a "gut-feeling" was a contiibuting factoi to the uecision piocesses anu a factoi that the
plant uiiectois woulu usually appiove of. The ieseaich showeu that theie is a neeu foi a
ieal time business intelligence solution because the employees uo not have the most
ieliable anu fiesh infoimation to make uecisions at the opeiational anu tactical layeis.
Fuitheimoie theie weie challenges with the cuiient uecision piocesses that woulu also
neeu to be auuiesseu in oiuei to change the cuiient piocesses.
The stuuy concluues that a ieal time business intelligence solution woulu be beneficial
foi suppoiting the opeiational anu tactical layeis of uecision-making within an
oiganization. By implementing an RTBI solution, it woulu pioviue the uecision-makei
with fiesh anu ieliant uata to base the uecisions on. visualization of the cuiient uecision
piocesses showeu that by auuing a ieal time business intelligence solution it woulu help
eliminate the use of intuition, as theie woulu be moie uata available anu the uecisions
can be maue wheie the woik is peifoimeu. Fuitheimoie the iesults show that theie aie
potential challenges with the cuiient uecision piocesses that neeu to be auuiesseu in
oiuei to achieve the benefits of such an implementation:
• Piocesses neeu to be automateu.
• Theie neeus to be agieement on what shoulu be measuieu in ieal time.
• Employees neeu to be ensuieu they will not loose theii ielationship to the
numbeis.
• Theie is a neeu foi a uata waiehouse in the cuiient IT aichitectuie.
III
The case stuuy contiibutes to ieseaich by visualizing how a ieal time business
intelligence solution can shoiten a complex uecision piocess by giving the coiiect
infoimation to the iight people. It also shows that factois useu when theie is not
sufficient infoimation available, can be eliminateu. Fuithei it suggests that oiganizations
neeu to auuiess potential challenges as pait of a pie-pioject of a ieal time business
intelligence implementation.
Iv
1ab|e of contents
1 234567894263 ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: 1
1.1 N0TIvATI0N ............................................................................................................................................................ 2
1.2 RESEARCB Q0ESTI0N ............................................................................................................................................. 2
1.S STR0CT0RE 0F TBIS TBESIS .................................................................................................................................. S
1.4 TERNIN0L0uY ......................................................................................................................................................... 4
; 4
2.1 BECISI0N-NAKINu .................................................................................................................................................. S
@=A=A B0(1+(+-0 &0/ C&(+-0&:+(2 ============================================================================================================================ D
@=A=@ !"# E#6+'+-05%&4+0; ,)-6#'' ==================================================================================================================== F
2.2 B0SINESS INTELLIuENCE ....................................................................................................................................... 9
2.S REAL TINE B0SINESS INTELLIuENCE ............................................................................................................... 1u
2.4 BATA WAREB00SINu ........................................................................................................................................... 1S
2.S BATA WAREB00SINu ARCBITECT0RE .............................................................................................................. 1S
@=G=A H-),-)&(# B07-)?&(+-0 I&6(-)2 J K+:: B0?-0 =================================================================================== AG
@=G=@ E+?#0'+-0&: %-/#:+0; 5 C&:," L+?8&:: ============================================================================================== AF
@=G=M B0?-0 N'= L+?8&:: ======================================================================================================================================== AO
2.6 KEY PERF0RNANCE INBICAT0RS ...................................................................................................................... 19
2.7 B0SINESS PERF0RNANCE NANAuENENT ....................................................................................................... 2u
2.8 B0SINESS PR0CESS REENuINEERINu & B0SINESS PR0CESS NANAuENENT ........................................... 2S
2.9 CBALLENuES WITB BI INPLENENTATI0NS ..................................................................................................... 24
? 5(.(@59< @""56@9< :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ;A
S.1 RESEARCB PERSPECTIvE ANB PBIL0S0PBICAL vIEW .................................................................................... 27
S.2 RESEARCB BESIuN ............................................................................................................................................... 28
M=@=A H"-+6# -7 H&'# ================================================================================================================================================= @O
M=@=@ P8-1( ("# H-),-)&(+-0 &0/ H-?,&0+#' ============================================================================================== MQ
S.S RESEARCB STRATEuY ANB NETB0BICAL APPR0ACB .................................................................................... S1
M=M=A E&(& H-::#6(+-0 ============================================================================================================================================== MA
M=M=@ E&(& &0&:2'+' ================================================================================================================================================== MM
S.4 Q0ALITY 0F TBE RESEARCB ............................................................................................................................... S6
M=R=A S'# -7 !"#-)2 ================================================================================================================================================== MD
M=R=@ T+?+(&(+-0' ====================================================================================================================================================== MF
M=R=M N&:+/+(2 ============================================================================================================================================================== MF
M=R=R U1) )-:# &' )#'#&)6"#)' ============================================================================================================================== MF
B 5(.8C4. :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ?D
4.1 RES0LTS FR0N PBASE 1 ..................................................................................................................................... S9
R=A=A H"&::#0;#' ======================================================================================================================================================== MO
R=A=@ V#6#''+(+#' &0/ S'#71:0#'' ======================================================================================================================== RA
R=A=M U);&0+- 3# "&.# ("# (--:' +0 &
3&2\ 3"+6" 6&0 8# 81+
(- 6-0(&+0 ("#'# (2,#' -7 ("+0;'Y= 0theis saiu that this so-calleu
uata waiehouse was in fact just the uatabase wheie infoimation is stoieu, but that the
neeu foi a uata waiehouse is theie: `V-3 ("&( 3# &)# +?,:#?#0(+0; & 0#3 jCX5'2'(#? 3#
3+:: "&.# & 10+h1# -,,-)(10+(2 (- 81+:/ +( 1, &0/ '()16(1)# +( +0 & 0#3 3&2 ("&( ?&4#' +(
,-''+8:# 7-) 1' (- "&.# & /&(& 3&)#"-1'#Y ]%&)4#(+0;\ I+8-5!)#',-^=
0ne plant uiiectoi stateu that he uiu not believe that age has anything to uo with
knowleuge within the oiganization, but that he uiu believe some of it affecteu him; `P'
2-1 40-3\ B &? +0 ("# -("#) #0/ -7 ("# '6&:#= T164+:2 B "&.# 2-10;#) /&1;"(#)' ("&( (#&6"
?#Y=
Fiom the inteiviews one coulu also unueistanu that a lot of inteinal euucation is going
on within the oiganization. The plants aiiange stuuy gioups foi the executive team once
a week; `k# "&.# )#&/+0;
-1,' 3"#)# 3# )#&/ 6"&,(#) 82 6"&,(#) &0/ ;#( 1, +/#&' &0/
("-1;"('Y= The ongoing LEAN-implementation has given the employees goou piactical
competence when it comes to pioject implementation; `k# 3&0( (- ?&4# & ?-/#: 7-) ("#
/+77#)#0( ,)-9#6( ,"&'#' 3# "&.# ;-0# (")-1;"= k# "&.# O ,"&'#' +0 ("+' ?-/#:= B "&.#
?&/# & '6"#?& 7-) #&6" -7 ("# ,"&'#'\ 3"+6" ?&4#' +( #&'+#) (- )#?#?8#) 3"&( 7&6(-)'
("&( &)# +?,-)(&0( &0/ '- -0Y ]X)-/16(+-0 %&0&;#)\ I+8-5!)#',-^= In the time befoie
46
Fibo-Tiespo staiteu with LEAN, they spent a lot of time euucating theii employees; `k#
6"-'# AF5AW ,#)'-0' &0/ ;&.# ("#? & /##,#) ()&+0+0; -0 ("# (-,+6= k# "&/ & ("#-)25
,)&6(+6# &,,)-&6"= I+)'( 3# ',#0( (+?# -0 ("# ("#-)#(+6&: 8&'# (- ;#( &0 10/#)'(&0/+0; -7
("# 6-06#,( &0/ ("# ,)-6#''\ ("#0 3# '(&)(#/ 3+(" ("# ,)&6(+6&: 3-)4= P0 +?,-)(&0(
6-?8+0&(+-0=Y ]X:&0( E+)#6(-)^= Fuithei, the management team at Fibo-Tiespo sees that
they have cieateu value with theii implementation anu on-going woik with LEAN, anu
have maue the infoimation available to the othei oiganizations: `k# 1'# '-?#("+0;
6&::#/ ("# G >\ +( +' &8-1( #.#)2("+0; 8#+0; 6:#&0 &0/ '"+0+0;\ &0/ (- 8# '#((+0; & '(&0/&)/
7-) ("# )#'(Y ]X)-/16(+-0 ?&0&;#)\ I+8-5!)#',-^= With the new LEAN methouology, the
hieiaichy is not as it useu to be at this plant. The plant uiiectoi stateu that it has
switcheu to become a moie flat stiuctuie, anu even on some points being the opposite
way of how it useu to be: `k# "&.# (1)0#/ ("# ,2)&?+/ &)-10/= !"# 6-??+(?#0( +' -0 (-,
&0/ 3# "&.# 7-61' -0 ("# -,#)&(-)' +0 ("# '2'(#?\ ("# ,#-,:# ("&( &)# /-+0; ("# .&:1#5
&//+0; 3-)4\ &0/ ("# )#'( -7 1' &)# ("#)# (- '1,,-)( &0/ 6&))2 ("&( ,)-6#''= k# '(&)(#/
3+(" ("# ()&/+(+-0&: :#&/#) -0 (-,\ 81( "&.# (1)0#/ +( &)-10/ &0/ ("&(d' 3"&( 3-)4'Y=
The plant manageis at Buntonit anu 0lual says that they have leaint a lot fiom the LEAN
piocess in Fibo-Tiespo, anu that has helpeu them when they staiteu with the piocess:
`!"# ,:&0( /+)#6(-) &( I+8-5!)#',- "&' 8##0 '-)( -7 & ?#0(-) 7-) ("# )#'( -7 1'\ '+06# ("#2
3#)# ("# 7+)'( (- '(&)( &0/ "&' 6-?# ("# 71)("#'( +0 ("# ,)-6#''Y ]X:&0( /+)#6(-)\ S:/&:^=
The plant manageis have an oveiall oveiview of the oiganization, whilst the piouuction
manageis anu otheis at a lowei level of the oiganizational stiuctuie have knowleuge on
theii own uepaitment anu fielu, but nothing moie. All thiee plant manageis hau some
knowleuge of business intelligence, anu the CI0 hau some knowleuge as well; `k# 40-3
3"&( 3# 3&0(\ (- ,1( +( ("&( 3&2= L0-3 3"&( 3# 3&0( +0 ("# 1'#) +0(#)7&6#\ 81( "-3 3#
81+:/ +( (#6"0-:-;+6&::2 &0/ (#6"0+6&::2\ 3# /- 0-( 40-3 (-/&2Y ]HBU\ K2;;?& P>P^=
Some of the tiaining within the oiganization has also hau a negative impact on woikeis,
as Fibo-Tiespo useu a so calleu "Stanuing in a Ciicle" appioach wheie one of the peisons
in the executive team was stanuing next to a machine anu wiiting uown eveiything that
happeneu foi a whole uay. Accoiuing to the piouuction managei: `k# 8#;&0 3+(" +(\ &0/
+( 8#6&?# & 8+; ("+0;\ 8#6&1'# ("# 3-)4#)' ("-1;"( 3# 3#)# -1( (- ;#( ("#?= k# 3#)# 91'(
'1,,-'#/ (- 3)+(# /-30 "-3 ("#2 "&0/:#/ ("# ?&6"+0# &0/ '16"\ 81( 3# '"-1:/ "&.# 8##0
8#((#) &( +07-)?+0; ("#?= !"#2 /+/ 0-( "&.# ("# '&?# 10/#)'(&0/+0;= k# +0 ("# #e#61(+.#
(#&? "&.# "&/ ?-)# ()&+0+0;\ &0/ +( 3&' #&'2 7-) 1' (- 8#:+#.# ("&( -("#)' "&/ ("# '&?#
40-3:#/;#Y=
The CI0 believes that piactical tiaining is an impoitant aspect of euucating theii
employees to gain moie competence in the fielu; `m-1 6&00-( 91'( '+( ("#)# &0/ :--4 &( &
'6)##0 &0/ "&.# +( ,)#'#0(#/\ ("#2 "&.# (- /- 3"&( +' 0#6#''&)2 (")-1;" ,)&6(+6&:
()&+0+0;Y= Be also says that the way the plant uiiectoi has useu a mix of theoiy anu
piactice at Fibo-Tiespo has helpeu the oiganization; `b# +' & ,)&6(+6&: 6-1)'# (2,#\ ("#2
/-0d( 91'( (&:4 ("#-)2 &0/ "-3 +( '"-1:/ 8# /-0#\ 81( "# ,1(' 1, & 3"+(#8-&)/ &0/ ;#('
,#-,:# (-;#("#) &0/ "&.# ("#? )#&/ & 6-1,:# -7 6"&,(#)' +0 ("# 8--4= !"#0 ("#2 6-0/16(
'(1/256+)6:#'= m-1 4+0/ -7 "&.# ("&(\ )&+'# ("# 6-?,#(#06# :#.#: +0 '(&;#' 82 "&.+0; 8-("
,)&6(+6&: &0/ ("#-)#(+6&: :#&)0+0;Y= To fully help the thiee plants in the implementation
of the new ERP system anu in the LEAN methouology, the oiganization has engageu an
exteinal consultant.
47
4.1.S Ind|cators
At the moment, all numbeis that aie being measuieu in the plants aie histoiical
numbeis, anu the iepoits that aie maue baseu on these numbeis aie monthly. All thiee
plants have intiouuceu the moining meeting anu iegulai use of the whiteboaiu wheie
they have all theii key piocess inuicatois. This is what they measuie anu make changes
baseu upon the numbeis, which is piesenteu eveiy moining. The uata heie is piesenteu
with gieen (positive) oi ieu (negative) maikeis. They all ieplieu that the inuicatois that
they aie heavily inteiesteu to measuie aie how is the sales office uoing, how aie we on
oiueis, uo we uelivei on time, anu how is piouuction. Anu in the question of populaiity
in the iange of piouucts, aie theie any piouucts that we may neeu to ieconsiuei to stop
piouucing, an impoitant KPI foi Byggma ASA is the stop maigin - Why wheie theie
stops in one oi moie piouuction lines. - What causeu the stops. What causeu piouuct
faults. Seveial employees of the thiee plants point out that this is impoitant to measuie.
Foi now, stop anu eiiois aie only measuieu by punching it in manually. At 0lual, the
piouuction managei says that theie is a neeu foi measuiing if glass bieaks in the
piouuction of winuows, oi if something goes wiong in the painting uepaitment; `B 7##:
("&( ("&( '"-1:/ 8# ?-)# 1, (- /&(#Y (Piouuction managei, 0lual).
Beie they also follow up anu have continuous woik to avoiu any stop in piouuction.
Fiom oui inteiviews we can se that this is the main concein foi the piouuction
manageis anu plant uiiectois. A key factoi that ielates to the above inuicatois is piouuct
quality. Accoiuing to the piouuction manageis they use 0veiall Equipment Efficiency
(0EE) to check the availability in piouuction lines, how they exploits the piouuction line
anu the quality on piouuction.
`B( +' &:'- ("# 7&6( ("&( 3# 6&0 '## ("# )#&'-0' 3"2 ("#)# "&.# 8##0 '(-,' &0/ ("&( 3# 6&0
6)#&(# & :+'( -7 '(-,' &0/ ;- /-30 (- /- '-?#("+0; &8-1( +(\ ("&( +' .#)2 +?,-)(&0(Y
]X)-/16(+-0 %&0&;#)\ I+8-5!)#',-^=
Anu as we can see fiom the inteiviews, each plant is uepenuent on iaw mateiial they
buy fiom theii supplieis. Stock level, volume in monetaiy teims of iaw mateiial is a
measuie they want in ieal time. The plant uiiectoi at Fibo-Tiespo saiu: ">-?# -7 ("#
("+0;' 3# 3&0( (- 8)+0; -1( & :+(
# h1+64#)\ &0/ 3"#0 +0 ("# ?+//:# -7 & ,#)+-/ +' ("# '(-64
:#.#: -7 )&3 ?&(#)+&: '+/# &0/ ("# .-:1?# +0 /-::&)' &0/ /+?#'Y=
This infoimation is only biought to them fiom monthly iepoits anu is too cumbeisome
anu uifficult to cieate iepoits baseu on the uate you want.
An oveiall paiametei foi the inuicatois above is the economic aspect. `m-1 6-1:/ "&.# &'
?&02 ("-1;"(' &8-1( ("# ,#-,:# 2-1 3&0( (-\ ,)-/16(+-0 &0/ ,)-/16(' &0/ 8# &' "&,,2 &'
2-1 3&0(= K1( +7 2-1 /-0d( #&)0 ?-0#2 -0 +( 2-1 ?+;"( &' 3#:: 6:-'# /-30Y ]X:&0( E+)#6(-)\
b10(-0+(^= As he saiu this, he also mentioneu that if you have happy employees, you have
employees that woik well anu get things uone. Chief accountant at 0lual mentions one
inuicatoi that woulu be necessaiy in ieal time: `>&:#' '(&(+'(+6' +' +?,-)(&0(= k"#)# &)#
3# &66-)/+0; (- -1) 81/;#( &0/ ;-&:'n !"&( +' (3- -7 ("# ?&+0 7&6(-)'Y= Fuithei the chief
accountant also mentions that it woulu be veiy impoitant to know how much money
that goes out at any time.
The inteiviews inuicate that all thiee plants believe that theie is a neeu foi ieal time
infoimation iegaiuing piouuction, sales anu oiueis. The boaiu of Byggma ASA is in neeu
48
of an oveiview of ieal time infoimation foi the uiffeient plants when it comes to how
many oiueis they have hau uuiing the uay anu at specific times of the uay, as well as the
financial peispective.
4.1.6 Arch|tecture
The cuiient uatabase anu IT aichitectuie has only been given a vague uesciiption in the
inteiviews, because most of the iesponuents uoes not have the knowleuge of what it
looks like. As pieviously mentioneu, theie aie uiffeient peiceptions of a uata waiehouse,
whethei oi not the oiganization has this. But foi now, the aichitectuie only contains
uatabases that aie uiiectly connecteu to the ERP system, anu no uata waiehouse.
I,Q*#$ 1> N Z0QQ/& @.@ 24 &#'_,+$'+*#$
The cuiient aichitectuie (figuie 1S) consists of an ERP system that is common foi all
thiee plants - IFS. In auuition to that ERP system, one of the plants also uses an
infoimation system that is tailoi-maue foi theii business. The oiganization as a whole is
cuiiently in the tiansition moue while changing theii ERP system in favoi of a
completely new solution. This will pioviue some changes foi the cuiient uatabase
aichitectuie, but theie will still be no uata waiehouse. The step to change ERP system is
a big step foi the oiganization - Byggma ASA, since they have hau seveial uiffeient ERP
systems in the oiganization foi yeais.
All iesponuents except one believe that it is bettei to focus one a few coie piocesses
when implementing a new infoimation system in theii oiganization. They believe that
one shoulu choose the most ciitical anu impoitant piocesses to stait with, to get fast
iesults in oiuei foi people to believe that this is the way to go; `B ("+04 +(d' +?,-)(&0( (-
(&4# '-?# ("+0;' 7+)'(= !"&( +' ?2 -,+0+-0= B( ?+;"( 0-( 8# ("# 6-))#6( 3&2\ 81( 7-) ?2 ,&)( B
("+04 +(d' +?,-)(&0( (- (&4# 6-)# ,)-6#''#' 7+)'( (- '## 4#2 01?8#)'Y ]H"+#7 &66-10(&0(\
S:/&:^= 0nly one iesponuent believeu that one shoulu ioll out the pioject ovei the entiie
49
oiganization at once, that way eveiyone will feel incluueu; `B7 2-1 &)# ;-+0; (- '(&)( 3+("
("# 6-)# ,)-6#''#'\ 2-1 "&.# (- 7+;1)# ("-'# -1(= P0/ ("&( 6&0 (&4# (+?#= >- B 8#:+#.# ("&( 3#
'"-1:/ )-:: +( -1( )+;"( &3&2 &0/ (&4# +( 7)-? ("#)#Y ]X)-/16(+-0 ?&0&;#)\ I+8-5!)#',-^=
4.2 kesu|ts from Þhase 2
4.2.1 Current Dec|s|on Þrocesses
Rounu two with inteiviews at Fibo-Tiespo we got the plant uiiectoi to uesciibe a
situation in iecent time. This situation was a iequest fiom a customei. The customei
who was Byggmakei contacteu the sales office iequesting a sales campaign in a specific
week on a specific piouuct. Fuithei on with the next inteiview we useu this situation as
a scenaiio foi the piouuction managei anu askeu him to uesciibe the piocess foi us. This
alloweu us to mouel the piocesses in ARIS. To give the costumei an answei, they neeu to
know if Fibo-Tiespo has capacity to piouuce anu uelivei this piouuct on time. To be able
to see the capacity on piouuction anu piouucts in stock it is necessaiy to collect uata
fiom foui uiffeient uatabases, stock, intake of oiueis, piouuction plan anu backlog of
oiueis. To collect this uata the piouuction managei imposes chief of logistics, chief of
sales office anu piouuction plannei to get uata fiom theii aiea of iesponsibility anu pass
it ovei to him. This uata is then useu in a mouel Fibo-Tiespo has put togethei in NS
Excel. The mouel piesents the status of the uiffeient uivisions in the plant in a giaphical
u0I as well as table of the uata collecteu. The uata they use heie is this yeai's uata anu
histoiical uata two yeais back in time. This allows them to simulate anu pieuict the
influx of sales foi ceitain peiious.
In this section we uesciibe the situation as mentioneu above to visualize the piocess.
Below, figuie 16 shows the moueling we have uone in ARIS of this piocess (the mouel is
stietching ovei two pages).
The situation occuiieu when Fibo-Tiespo ieceiveu a message fiom the customei that
they wanteu to iun a sales campaign. At this point the sales iepiesentative uiun´t have
the neeueu infoimation to appiove oi ueny the iequest. Aftei chattei in the office, theie
wheie uiviueu opinions whethei they coulu accept oi not. This leu to a meeting of the
leauei gioup to uiscuss the situation. At the meeting they concluueu that it was
necessaiy to gathei infoimation fiom thiee uiffeient uivisions, stock, sale anu
piouuction. The infoimation neeueu was stock, intake of oiueis, backlog of oiueis anu
piouuction. To ietiieve this infoimation the piouuction managei took the iesponsibility
anu iequiieu this uata fiom the chief of logistics, chief of sales office anu piouuction
plannei. The ieason the piouuction managei uiun't ietiieve the infoimation himself is
because lack of system licenses (employees shaie the same license) anu that each
uepaitment have a bettei unueistanuing¡oveiview of theii own aieas.
`B "&.# &66#'' (- BI>\ 81( +(*' 7+.# -) '+e ("&( 1'#' ("# '&?# 1'#)= P0/ ("#2 3+:: 0-( ,1)6"&'#
&//+(+-0&: :+6#0'#'= B 6-1:/ "&.# ;-0# +0 ]jCX5'2'(#?^ (- /- ("# '&?# &' ("# ,)-/16(+-0
,:&00#)\ /-0# ("# '&?# &' '&:#' -77+6#\ /-0# ("# '&?# &' :-;+'(+6'= H"#64#/ ?2'#:7= K1( #.#)2
/#,&)(?#0( "&' & 8#((#) -.#).+#3Y ]X)-/16(+-0 ?&0&;#)\ I+8-5!)#',-^=
Su
This is the main time-consuming task of this piocess. The plant uiiectoi tolu us that they
ieceiveu the iequest one Fiiuay anu wheie able to give iesponse to the costumei
Weunesuay, foui business uays latei.
When the piouuction managei ieceiveu the neeueu infoimation fiom sales office,
logistics anu piouuction he coulu stait the woik of cieating a mouel wheie they coulu
simulate what a sales campaign woulu uo to the piouuction anu company.
The next step was to gathei the leauei gioup again anu uiscuss the mouel to evaluate the
situation anu simulation the mouel uisplayeu. The piouuction managei piesenteu the
mouel anu explaineu the to the leauei gioup the facts they wheie shown. The leauei
gioup then agieeu on an outcome anu passeu the message on to the sales office so they
coulu contact the customei anu ieply.
S1
Continues on the next page
S2
I,Q*#$ 1G N 7$',S,PON/&U,OQ R#P'$SSW .&M$S '&/R&,QO #$d*$S+
SS
Anothei scenaiio that we got uesciibeu was a situation wheie they lackeu iaw mateiial
foi a specific piouuct. This scenaiio occuiieu in }anuaiy. Foi Fibo-Tiespo it was
impoitant to be able to iun the piouuction at an acceptable level anu to keep piouucing
goous, keep employees in woik anu uelivei piouucts they wheie able to piouuce. This
situation meant that they hau to iuentify what they coulu woik with until they got the
neeueu laminates back in stock, not to mention make ioom on the stoiage foi iaw
mateiials foi the laminate that weie on its way. The piouuction managei took the
iesponsibility of gatheiing infoimation. Infoimation the piouuction managei neeueu
was fiom sales; what was solu. Logistics; what they hau in stock. Piouuction; what kinu
of piouucts weie in piouuction. Raw mateiials; how much anu what was in stock of iaw
mateiials.
The piouuction managei sent out the message to the uivisions mentioneu above, anu the
message saiu that this infoimation hau to be sent to him. Be neeueu this infoimation to
cieate a new plan foi piouuction. This plan hau the ciiteiia to make ioom foi the
incoming iaw mateiials, keep piouuction going, keep the customeis happy by ueliveiing
oiueis. Anu keep the loss at a minimum.
`B ?1'( ;#( ("# '6"#/1:#) (- 6"#64 "-3 3# &)# /-+0; +0 )#:&(+-0 (- ("# (+?# 3"#0 3# 6&0
)10 +(\ &0/ ("#0 ;#( ,)-61)#?#0( -77+6# (- 6"#64 3"#("#) 3# "&.# ("# )&3 ?&(#)+&:' (-
?&4# +( )10= [#( ("# 3&)#"-1'# (- 6"#64 -0 3"&( 3# "&.# +0 '(-64\ 6"#64 +7 +( ?&(6"#' ("#
&?-10( -7 '(-64 +0 )#:&(+-0 (- ("# BI>= P0/ ("#0 2-1 "&.# (- 0-(+72 ("# 6&:: 6#0(#) '- ("#2
40-3 3"&( ("#2 0##/ (- ,)-6)&'(+0&(#Y ]X)-/16(+-0 %&0&;#)\ I+8-5!)#',-^=
Below you finu an illustiation of the piocess uesciibeu above (figuie 17). We stait out
with the fact that they lack iaw mateiials anu the piouuction managei takes the
iesponsibility to gathei uata fiom the foui uatabases. In that mattei he gives oiueis to
the peisons in chaige of each uivision to senu the uata ovei to him insteau of accessing
the uatabases.
S4
I,Q*#$ 1A N 7$',S,PON/&U,OQ R#P'$SSW C&'U P% #&[ /&+$#,&MS
laminatmangel prosess
SS
4.2.1 Meet|ng observat|on
Buiing the seconu phase we weie able to be paiticipating obseiveis uuiing a moining
meeting at Fibo-Tiespo. Buiing the meeting we weie able to take pictuies of the
whiteboaiu as well as taking notes.
This moining meeting was intiouuceu to the plant togethei with LEAN, anu is a way of
infoiming the leaueis of the iespective uepaitments on numbeis fiom the pievious uay
in piouuction, sales, BNS, anu so on. Eveiy week a new peison is in chaige of the
meeting, but all uepaitment leaueis have numbeis that they piesent at the meeting. This
meeting lasts foi maximum 1S minutes, anu staits piecisely 8.Su eveiy moining. Theie
is a clock attacheu to the wall ovei the whiteboaiu, wheie the time fiom 8.Su-9 is
maikeu with gieen. This is the initial meeting time eveiy uay. The time fiom 9-9-uS is
maikeu in yellow, inuicating that if they neeu moie time, they have S minutes extia.
To be able to piesent some of these numbeis, the piouuction managei staits woik at 6
am to queiy the uatabase foi yesteiuays numbeis iegaiuing incoming oiueis. This has
to be uone at an eaily stage because it is heavy woik foi the uatabase, anu at the same
time they only have a limiteu numbei of licenses in the system. Then, the leaueis of the
vaiious uepaitments also queiies theii iespective infoimation, such as piouuction
numbeis, sales numbeis, logistics numbeis.
The numbeis aie wiitten uown on the whiteboaiu eveiy moining befoie each meeting,
anu aie wiitten with eithei a ieu oi gieen maikei (figuies 18 & 19). The ieu numbeis
iepiesents numbeis that has not peifoimeu accoiuing to the set goals, whilst the gieen
numbeis inuicates that the numbeis have peifoimeu accoiuing to the goals oi bettei
than it. A peicentage of the numbeis, in consiueiation with the expecteu numbeis, aie
also shown.
I,Q*#$ 1F N ",'+*#$ P% Z"6N[_,+$LP&#T &+ I,LPN4#$SRP
S6
Befoie the meeting staiteu, the plant uiiectoi intiouuceu us anu tolu that we weie
masteis' stuuents woiking on a thesis on ieal time uata, to infoim the otheis of what we
weie uoing theie. Aftei that, the meeting staiteu, with the meeting leauei shoitly
infoiming on numbeis fiom his uepaitment, anu then letting the otheis infoim,
uepaitment aftei uepaitment. Buiing the meeting all employees infoimeu the
paiticipants of theii numbeis, anu what coulu be the cause of foi example a ieu numbei.
Foi example, one peison saiu that they hau been one peison less woiking the uay befoie
because one peison suuuenly hau to leave, anu that that hau an impact on the numbeis.
I,Q*#$ 1D N Z"6N[_,+$LP&#T 'MPS$N*R
This moining meeting gives the employees anu the plant uiiectoi an oveiview of how
the plant peifoimeu the uay befoie, anu how one shoulu woik in oiuei to achieve the
goals that has been set. The plant uiiectoi also saiu that these meetings have been veiy
effective, anu that the oveiall peifoimance of the woikeis incieases if theie aie ieu
numbeis on the whiteboaiu.
The main iesults in this ieseaich chaptei aie summaiizeu on the next page.
S7
4.3 Summary of Þhases 1 & 2
Fiom oui two phases of inteiviews anu obseivation we have categoiizeu the iesults of
this stuuy into thiee topics: Becision-making touay, challenges anu potential benefits.
Þhase 1
E#6+'+-05?&4+0; (-/&2
• Fiom the iesults we can see that the opeiational numbeis aie impoitant
inuictois to measuie.
• Boes not fully tiust electionic numbeis.
• Reuunuancy, opeiational numbeis aie puncheu in up to thiee times each.
H"&::#0;#'
• Afiaiu of loosing theii ielationship with numbeis.
• Afiaiu of loosing valuable time spent "on the flooi".
• Boes not tiust electionic numbeis.
• The plants vaiy in age anu size.
• New equipment can potentially cost a lot of money.
X-(#0(+&: K#0#7+('
• They spenu too much time on ietiieving anu calculating piouuction, anu sales
uata to make uecisions.
• Big potential to ieuuce the amount of employees it takes to make a uecision that
uepenus on opeiational measuies anu sales histoiy.
• Employees aie asking foi an RTBI-system suppoiting uaily business.
Þhase 2
E#6+'+-05?&4+0; (-/&2
• Noining meetings neeu to physically ietiieve anu calculate piouuction uata
(opeiational measuies), which the moining meeting leauei lists on the
whiteboaiu each moining.
• Complex piocesses to caiiy out a uecision.
H"&::#0;#'
• Cuiiently no uata waiehouse.
• Seveial uatabases that infoimation is ietiieveu fiom.
X-(#0(+&: K#0#7+('
• Bigitalizing the whiteboaiu to inteiact with a potential RTBI-system.
• LCB-monitois piesenting opeiational uata useu in moining meetings.
Baseu on these thiee topics we cieateu a mouel to use in the next chaptei of analysis anu
uiscussion of the iesults (figuie 14).
S8
S Ana|ys|s & D|scuss|on
Baseu on the iesults theie aie thiee topics that neeu to be uiscusseu in oiuei to fully
unueistanu the value anu benefits an implementation of a ieal time business intelligence
system can have on uecision-making. Fiist, we neeu to look at how the cuiient uecision
piocesses woik anu what factois that affects them. Then, we neeu to look at what
challenges neeus to be auuiesseu with such an implementation. Lastly, we will uiscuss
what potential benefits a company in the constiuction anu home impiovement supplies
business may have with the implementation of a uecision suppoit system such as ieal
time business intelligence.
Dec|s|on-mak|ng today
Touay's uecision-making in the thiee plants is paitially baseu on uata ietiieveu fiom the
uiffeient infoimation systems they holu. Infoimation fiom the opeiational level is
puncheu into the uatabases anu is ietiieveu by using queiies assembleu in NS Access.
That is consistent with Rouiigues (2uu2) who says 9u% of infoimation in touay's
businesses is actually unstiuctuieu. Baving unstiuctuieu infoimation that neeus to be
collecteu eveiy moining is time-consuming anu not especially suppoitive of an efficient
uecision piocess (uolfaielli et al., 2uu4). A gieat contiibutoi to the uecision-making
seems to be the factoi of intuition, by using "gut-feeling". It seems like this factoi is
especially impoitant because the uecision-makei uoes not have the coiiect infoimation
available. As we coulu see in the mouels of the cuiient uecision piocess at Fibo-Tiespo
(figuies 16 & 17) the sales iepiesentative acteu on "gut-feeling" because theie was no
othei infoimation to base the uecision on. The senioi manageis uiu not seem to accept
the ieplies given fiom the sales office, that is not consistent with pievious ieseaich
which founu senioi manageis have a tenuency of accepting "gut-feeling" in uecision-
making (Khatii & Alvin, 2uuu). It might seem that the use of "gut-feeling" is moie
accepteu if the peison making the uecision has woikeu in the company ovei a longei
peiiou. 0ne coulu say that an immeuiate ieason foi the sales iepiesentatives acting on
theii "gut-feeling" was that theie was a lack of competence anu they theiefoie chose to
act on past expeiience (Khatii & Alvin, 2uuu).
The plant uiiectois implieu that they useu these factois themselves when making
uecisions because they have expeiience with events fiom pievious yeais. That is
consistent with the fact that theii employees saiu they tuin to the plant uiiectoi if they
cannot finu sufficient infoimation because he usually has a "gut-feeling" ielateu to
expeiience with the company. That implies that the senioi manageis might not have
believeu that the employees in the sales office hau sufficient expeiience to base theii
intuition on, but insteau saw gieatei value of uigging into theii uatabases to finu suppoit
(Khatii & Alvin, 2uuu). As figuie 16 shows, the moment that the manageis at Fibo-
Tiespo hau the coiiect infoimation at hanu they weie able to make a uecision. Bowevei,
fiom the initial iequest was ieceiveu at the sales office till the uecision was maue, a lot of
time was spent seaiching foi the coiiect infoimation. Eisenhaiut (1989) says that the
uecision-makei with less infoimation makes slowei uecisions then those with moie
infoimation available. In this situation the sales iepiesentatives uiu not have many
alteinatives anu weie not able to choose the most appiopiiate uecision (Clelanu & King,
198S). We coulu say that the lack of infoimation available maue the employees at Fibo-
Tiespo spenu moie time seaiching foi it, because they weie not awaie of what type of
infoimation that they actually possess in theii infoimation systems. By not having the
coiiect infoimation available foi the employees at the sales office the uecision was not
S9
maue wheie the woik was peifoimeu. Insteau it hau to be taken fuithei into the
oiganization. That is in contiast to one of the piinciples of Bammei (199u) which
implies putting the uecision wheie the woik is peifoimeu, meaning that the peison
uoing the woik shoulu be the one making the uecision in that aiea. The founuation of
touay's uecisions is connecteu to possible challenges foi a system that will suppoit ieal
time uecision-making.
Cha||enges when |mp|ement|ng a rea| t|me bus|ness |nte|||gence system
To be able to implement anu effectively utilize a ieal time business intelligence system,
theie seem to be seveial challenges connecteu to the uecision piocess that neeu to be
auuiesseu. 0ne of the main challenges foi the Byggma gioup is that most of the
piocesses at the thiee plants aie manually uiiven, meaning that the uata is puncheu into
the uatabase aftei eveiy shift in oiuei to be ietiieveu by employees who cieate queiies.
As mentioneu eailiei, the finuings inuicate that this has an effect on the uecision-making
piocess because the coiiect infoimation is not available. That ielates to uolfaielli (2uu4)
who founu that it is impoitant to focus on business piocesses in touay's competitive
maiket. Reseaich shows that in oiuei to impiove piocesses anu peifoimance, theie is a
neeu foi quick access to coiiect anu consistent uata (Wixom & Watson, 2uu1). Foi that
to happen, the business neeus to take initiative anu actually want to change the
piocesses (Bavenpoit, 2u1u). Connecteu to automating piocesses aie potential costs as
the thiee plants have equipment that vaiies in size, age anu complexity. The plant
uiiectoi at Buntonit states that because they have an oluei factoiy anu oluei equipment
than Fibo-Tiespo, theie aie also highei costs ielateu to a possible automation of theii
cuiient piocesses. Accoiuing to Bammei (199u) it is impoitant to take auvantage of
technology anu piocesses so that the woik is moie efficient anu theie is a possibility of
ieuucing costs. With oluei equipment, it is impoitant that the piocess is in focus, anu
that it might be a bettei iuea to ieengineei, by buying all new equipment anu cieating
new piocesses. Bammei (199u) states that businesses often believe that impioving olu
piocesses by automating them is the coiiect way, while in fact the eiioi lays within the
piocess itself. The Buntonit plant has oluei equipment than Fibo-Tiespo anu 0lual, anu
might have a biggei pioblem with automating alieauy existing piocesses because of
availability of paits. It is impoitant that the piocess-change is uiiecteu towaius
efficiency anu contiol (Bammei, 199u).
Fibo-Tiespo has newei equipment, anu theii piocesses may have been ieengineeieu
when they began the LEAN piocess. Baseu on that, it might be smaitei to automate the
cuiient piocesses, as these might be moie matuie. By using the concept of Business
Piocess Nanagement (BPN) Fibo-Tiespo coulu focus on the woikflow of theii existing
piocesses by automating these. Beie, the focus is on opeiational excellence anu agility,
anu with a successful implementation of LEAN they might be moie agile than the othei
plants. As many piocesses within a business aie invisible, it is impoitant to make these
visible, anu to have a focus on them. By focusing on automating cuiient piocesses, the
plants will be able to shoiten the piouuct uevelopment cycles anu make moie iapiu
uecisions, which can be contiibuting factois to achieving success (Atie, 2uuS).
Baving a ielationship to the numbeis seems to be an impoitant factoi in the thiee
plants, anu a contiibuting factoi to the cuiient uecision-making piocesses. An impoitant
pait of the stiategy in the oiganization has been to cieate a ielationship between the
numbeis anu the employees, by letting employees take pait in ietiieving the numbeis
6u
that aie piesenteu at the moining meetings (figuie 18 & 19). The plant uiiectois believe
that this has given them an owneiship to the numbeis anu that this is valuable to them.
The feai of loosing that ielationship affects how some employees look at infoimation
systems - they believe they cannot fully tiust electionic numbeis. Plant uiiectois anu
piouuction manageis believe that if they have all infoimation available on the computei,
they will not spenu the same amount of time uown in the piouuction aiea as they woulu
noimally uo. Bowevei, an intiouuction of a ieal time business intelligence system will
neeu this stiategy to be aligneu with the oiganizational stiategies, which means that
theie will still neeu to be a ielationship between the goals anu the actual peifoimance
(Benueison & venkatiaman, 199S). Employees will still be able to ietiieve numbeis
fiom the infoimation systems, but it will take less time than befoie because theie is
moie infoimation available. An implementation of an RTBI system will also give moie
people access to the same infoimation, because one of the main points of RTBI is that
moie people can be upuateu on measuiements anu be able to see the oveiall
peifoimance (Azvine et al., 2uuS).
In oiuei to achieve the wanteu value fiom an RTBI system, the oiganization neeus to
agiee on what piocesses shoulu be measuieu in ieal time. Accoiuing to Watson et al.
(2uu4) an impoitant aspect of ieal time business intelligence is to be able to make the
iight uecision on what piocesses shoulu be measuieu in ieal time anu what shoulu
continue to be measuieu histoiically. At the moment, Byggma ASA only measuies theii
financial teims with a business intelligence solution. This is consistent with Beatham
(2uu4) who claims that theie has been a limiteu appioach when measuiing businesses
because theie has only been a focus on the financial teims. As of now theie seems to be
some uisagieement on what the most ciitical measuies aie, although all employees
agiee that opeiational measuies aie impoitant. This ielates to pievious ieseaich which
says that by measuiing the opeiational level in ieal time one can get immeuiate anu
fiesh uata(voitex-Technologies, 2uu4). The plant uiiectois saiu that because theii main
business is to piouuce, most uecisions maue aie ielateu to the piouuction. Pievious
ieseaich claims that moie uecisions aie taken at the opeiational level (Watson et al.,
2uu6). In oiuei to choose the iight piocesses foi ieal time measuiing, Byggma ASA anu
theii uaughtei companies shoulu be thoiough when choosing who shoulu ueciue this. It
is impoitant that the people choosing what piocesses to measuie have sufficient
knowleuge on the oiganization anu the inuustiy (Beatham et al., 2uu4).
To be able to implement ieal time business intelligence, the IT aichitectuie neeus to be
piepaieu foi this (Azvine et al., 2uuS). The coie component of such a uecision suppoit
system is a uata waiehouse, anu at the moment it uoes not seem like this is something
the Byggma gioup possesses (figuie 1S). Thiough the ieseaich we saw that theie weie
vaiious peiceptions of what a uata waiehouse was, even though all employees knew
that the uata they punch in is stoieu somewheie. Theie seemeu to be a lack of
knowleuge anu that the concepts of uatabase anu uata waiehouse weie mixeu anu
believeu to have the same meaning. That is not consistent with theoiy, which says that
the main uiffeience between the two is that a uatabase stoies uata whilst a uata
waiehouse iesponus to analysis questions that aie ciitical to the business (Tuiban &
volonino, 2u1u). To be able to suppoit the piocesses that the oiganizations wish to
automate anu measuie in ieal time, they neeu to auapt a uata waiehouse that suppoits
the ciiteiia foi uecision suppoit in a tactical, stiategically anu opeiational level (Azvine
et al., 2uuS; Imhoff, 1999). In oiuei to implement a uata waiehouse, the oiganization
61
neeus to agiee upon what aichitectuial methou they want to use (Bieslin, 2uu4). As
some employees believeu it is bettei to focus on the coie piocesses when implementing
RTBI, one employee believeu that it woulu be bettei with an oiganizational-wiue focus
fiom the beginning. This is consistent with Bieslin (2uu4) who states that theie aie two
aichitectuies foi uata waiehousing; the coipoiate infoimation factoiy focuses on the
whole enteipiise as a top-uown appioach while uimensional moueling focuses on the
coie piocesses of the oiganization as a bottom-up appioach. As an implementation of a
uata waiehouse iequiies that the oiganization follows a specific aichitectuie, Byggma
shoulu focus on theii employees. Pievious pioject within the plants have shown that
people want iesults, anu that theie is a wish to see the potential value of the change. 0ne
way to uo it coulu be that they have an oiganizational-wiue focus involving all
uepaitments, but still focus on quick-wins by finishing one piocess fiist so that the
employees sees the value of a ieal time business intelligence solution.
Þotent|a| benef|ts of an k18I |mp|ementat|on
0f all the uata that an enteipiise possesses, only 1u% is stiuctuieu (Rouiigues, 2uu2).
Business intelligence aims to solve this issue anu cieates a bettei stiuctuie foi uata
stoiage. Business intelligence iequiies a uata waiehouse as a pait of the aichitectuie.
By having a uata waiehouse you appoint uimensions to youi uata, which the uata
waiehouse will stiuctuie anu piesent as infoimation thiough a specifieu giaphical usei
inteiface (u0I).
By taking the uecision-making piocesses we have moueleu in ARIS (figuie 16 & 17) in
collaboiation with the plant uiiectoi anu piouuction managei we see that the piocesses
aie complex anu time consuming. They neeu to involve one employee fiom each uivision
they want to ietiieve uata fiom, to builu a mouel to cieate a founuation to base theii
uecision on.
By following Tapscott's (2uu8) thiee appioaches (simplicity anu ielevance, agility, anu
integiation) you aie able to impiove the uecision-piocess by pioviuing the employee
with infoimation anu the iight to make bettei-infoimeu uecisions. By using the existing
piocesses anu ie-mouel them to be suppoiteu by a RTBI-system (figuie 2u & 21) we
have tiieu to give examples on how the piocesses can be stieamlineu anu ieuuceu in
teims of people involveu anu time spent on each uecision. As piesenteu heie, we have
eliminateu the cential pait of the existing piocesses wheie those iesponsible foi the
piocess ask employees of uiffeient uivisions to ietiieve uata anu senu back to the
peison in chaige. By uoing this we have the oppoitunity to place the neeueu infoimation
thiough a custom u0I wheie the event occuis anu neeus to be hanuleu. As we aie
placing the infoimation wheie the situation occuis we aie able to act anu make the
uecision in the iight place, anu thus ieuuce time spent on builuing the infoimation
founuation one neeus to make the uecision (Bammei, 199u). This will pioviue the
benefits an oiganization wants, as mentioneu above. An auuitional benefit is that by
placing infoimation in the iight place, employees fiom the uivision that weie pieviously
neeueu to ietiieve uata can know concentiate on theii main activity. This is also positive
foi the leaueis, since they no longei neeu to be a pait of the uecision.
62
I,Q*#$ ;J N 7$',S,PON/&U,OQ R#P'$SSW .&M$S '&/R&,QO #$d*$S+ [,+_ 54Z2
RTBI sales cam reg dmp
0lu
New
6S
I,Q*#$ ;1 N 7$',S,PON/&U,OQ R#P'$SSW C&'U P% #&[ /&+$#,&MS [,+_ 54Z2
At the thiee plants the uata is being puncheu in to make it available, anu this is uone up
to thiee times foi the same uata to make it available thiough out the oiganization.
Byggma ASA will gain potential benefits fiom automating theii piocesses of iegisteiing
piouuction uata. This will ensuie that the uata isn't ieuunuant anu that employees can
gain tiust in the numbeis they neeu.
RTBI lack of raw material
0lu
New
64
Reseaich has shown that by implementing an RTBI-system businesses can save both
time anu money by making the infoimation available when anu wheie it's neeueu
(Rakshit, Kiishnamuithy, & Yu, 1996). Intiouucing new technology oi new appioaches
to hanule business piocesses is expecteu to give benefits to the company. When
intiouucing new softwaie oi technology to an oiganization it will affect the woik
piocesses, anu a uemanu foi change appeais. As Naikus (2uu4) points out we neeu to
be awaie of how technology piojects affect the oiganization. She uefines this as a teim
calleu "technochange". The teim technochange implies that we neeu to look at softwaie
implementation piojects as oiganizational piojects with focus on oiganizational change.
`K2 ()#&(+0; (#6"0-6"&0;# '+(1&(+-0' &' +7 ("#2 3#)# B! ,)-9#6('\ ("#'# -);&0+2'(#?' %&0&;#?#0(\ @M(1), 41-48.
Fuglseth, A. N. (1989). K#':1((+0;''(c((#Z %#(-/# 7-) /+&;0-'# &. :#/#)#' +07-)?&'9-05 -;
'+(1&'9-0'-,,7&(0+0;#)= (Bi. oecon Bisseitation), Noiges Banuelshøyskole Beigen.
uolfaielli, N., Rizzi, S., & Cella, I. (2uu4). K#2-0/ /&(& 3&)#"-1'+0;Z 3"&(*' 0#e( +0
81'+0#'' +0(#::+;#06#n Papei piesenteu at the Pioceeuings of the 7th ACN
inteinational woikshop on Bata waiehousing anu 0LAP, Washington, BC, 0SA.
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uuba, E. u. (199u). The alteinative paiauigm uialog (pp. 17-Su). Newbuiy Paik, CA: Sage
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C#.+#3.
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7u
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Negash, S. (2uu4). Business Intelligence. H-??10+6&(+-0' -7 ("# P''-6+&(+-0 7-)
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/#'+;0 -7 '2'(#? /#6+'+-0 '1,,-)(. Woiking Papei. Bepaitment of Infoimation
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Rouiigues, L. C. (2uu2). Business Intelligence: the management infoimation system next
step. P0&+' -7 ("# B0(#)0&(6+-0&: H-07#)#06# -0 %&0&;#?#0( B07-)?&(+-0 >2'(#?'
B06-),-)&(+0; [B> a C#?-(# >#0'+0;, 269-278.
Rossei, B. (2u1u). BPN Technology anu Tools Key Initiative 0veiview Retiieveu Nay
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Tapscott, B. (2uu8). Business Intelligence: Actionable Insights foi Business Becision
Nakeis. V#3 X&)&;/+? T#&)0+0; H-),-)&(+-0.
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>2'(#?' (9th eu.): Peaison Euucation, Inc.
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}ohn Wiley & Sons. Inc.
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http:¡¡www.voitexinuia.com¡Bownloaus¡RealtimeBI.puf
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>2'(#?'\ AG(S), S2u-SSu.
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Bata Waiehousing Success. %B> o1&)(#):2\ @G(1), 17-41.
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Inc. .
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72
10 Append|x
Appenuix A: Inteiview guiue Fibo-Tiespo ............................................................................................ 7S
Appenuix B: Inteiview guiue ...................................................................................................................... 74
Appenuix C: Analysis Natiix (6 pages) ................................................................................................... 7S
7S
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Alot of time was spent to euucate employees befoie the stait of the LEAN piocess. 17-18 peisons weie electeu to be pait
of that gioup. Focus on the fact that theie is now a moie flat stiuctuie, anu that that is a wish fiom the boaiu. Aftei the
LEAN implementation , the peisons on the othei siue of the hieiaichy has moie iesponsibility.
Bas a bit knowleuge on BI, knows that it is about measuiing inuicatois, has hau it piesenteu at a few uiffeient occasions,
but uoes not know anything in specific. Boes not believe that age affects knowleuge, says that he is at the othei enu of
the knowleuge-scale when it comes to technology, but has family membeis that help him anu teach him.
The PB at FT has been a soit of mentoi foi the iest of us(plants), since they have come the fuithest anu have most
knowleuge on LEAN. So that is a way we shaie oui competence. Neetings. Leaueigioup anu Leaueitiaining eveiy
Weunesuay. Boes not believe in the effect of having a consultant to help them with something, believes things have to go
in a slowei pace.
We uiu not want to piesent LEAN to the othei employees befoie all uepaitment leaueis hau ieau up on the topic, anu
weie able to answei questions. We have also been able to go to a leaueischool, to gain knowleuge on the topic. That has
been veiy positive.
We have a cooiuinatoi which assists me with keeping the stiuctuie, in accoiuance with the LEAN piocess. So the
company has hiieu a cooiuinatoi to help the uiffeient manageis of the uiffeient uepaitments.
Because of the success with the LEAN implementation, PN says that Fibo wants to cieate a mouel with phases, that othei
employees of the othei plants can look at when they stait theii implementation. It will make it easiei to iemembei the
phases anu the uiffeient factois affecting. Biu something that uiu not woik in the LEAN piocess, anu iealizeu this by
tiying to uo it uiffeiently. Biu not give sufficient infoimation, people uiu not unueistanu - Stanuing in a ciicle
Says that theie is no uatawaiehouse in the oiganization, but that they have seveial uatabases connecteu to the
infoimation system. Says that with a new ERP system in place, they will we able to builu it up anu stiuctuie it in a way
that they can also have a uata waiehouse
We have wiitten anu cieateu piojectplans anu piopulsion plans, so we have maue som stanuaius that aie impoitant to
us. Now theie is one peison is FT that is soit of a "bottleneck" on the queiies, which I think is not goou. Noie people
shoulu be able to uo it.
No knowleuge on BI¡RTBI
No knowleuge on BI¡RTBI. Bas also just iecently gaineu knowleuge on the LEAN piocess, as his team has not been a big
pait of that uuiing the beginning.
No knowleuge on BI¡RTBI. Leains a lot fiom the uiscussion gioup they have with LEAN.
Bas some knowleuge on BI, anu that it is about measuiing numbeis anu cieating analysis anu iepoits baseu on that.
Some knowleuge on BI¡RTBI, knows what it is, anu what it piimaiily uoes, but not specificly how they can benefit. When
askeu, has been unsuie if they have a uatawaiehouse oi not. I know what we want anu neeu, as a system, but now how
to builu it anu how it shoulu be implementeu techonologically.
Stuuy gioups anu meetings thioughout the oiganization eveiy week. Not all have knowleuge on BI, but eveiyone sees
the auvantages this system can give them.
79
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9" -$ 0",2 &-4"7 :&'.; 2"
How does a Real Time Business Intelligence system enable better and timelier decision-making? An exploratory case study
This Master’s Thesis is carried out as a part of the education at the
University of Agder and is therefore approved as a part of this
education. However, this does not imply that the University answers
for the methods that are used or the conclusions that are drawn.
University of Agder, 2012
Faculty of Economics and Social Sciences
Department of Information Systems
Real Time Business Intelligence and
Decision-Making
How does a Real Time Business Intelligence system enable better and
timelier decision-making? An exploratory case study.
Ida Aspaas Karlsen
Magnus Nord Eidene
Supervisor
Dag H. Olsen
I
"#$%&'$
This mastei' thesis has been wiitten as a final iepoit in the masteis uegiee piogiam of
Infoimation Systems at the 0niveisity of Aguei. The 0niveisity of Aguei uesciibes the
couise of IS-Su1 as: !"# %&'(#)*' ("#'+' ,)-.+/#' &0 -,,-)(10+(2 (- 3-)4 +05/#,(" 3+(" &
',#6+7+6 '189#6( &)#& 3"+:# 6&))2+0; -1( & ,)-9#6( 7-) & ,18:+6 -) ,)+.&(# -);&0+(1/#0(' 3+:: ;&+0 +0'+;"( +0(- &,,:2+0; ("#-)#(+6&: 40-3:#/;# &0/ '6+#0(+7+6 ?#("-/' (- &
',#6+7+6 ,)-8:#? (0niveisity of Aguei).
The mastei thesis has been piepaieu as an exploiatoiy case stuuy anu conuucteu in a
constiuction anu home impiovement supplies company in the south of Noiway. The CI0
of Byggma ASA, Roy Kenneth uiunuetjein was inteiesteu in oui topic. Togethei with the
othei manageis of Byggma ASA he hau a uesiie to ieceive moie accuiate anu fiesh
infoimation fiom theii uaughtei companies.
We woulu like to thank all contiibutois foi the gieat iesponse anu valuable suppoit. We
aie especially giateful foi the piioiity this thesis have been given by the involveu
paities: Roy Kenneth uiunuetjein, CI0 of Byggma ASA anu the inteivieweu staff of Fibo-
Tiespo AS, Buntonit AS anu 0lual AS. Thank you to Finn Chiistiansen, who has uone a
gieat job of pioofieauing oui thesis to ensuie quality of the thesis.
We woulu also like to thank oui supeivisoi, Associate Piofessoi Bag B. 0lsen foi
suppoit anu guiuance thioughout this couise of stuuy.
}une 2u12, Kiistiansanu
Nagnus Noiu Eiuene Iua Aspaas Kailsen
II
()$'*+,-$ .*//�
Touay's businesses neeu suppoit when making uecisions. Business intelligence (BI)
helps businesses to make uecisions baseu on goou pie-analysis anu uocumenteu uata,
anu enables infoimation to be piesenteu when anu wheie the uecisions neeu to be
maue. Real time business intelligence (RTBI) piesents numbeis in ieal time, pioviuing
the uecision makeis at the opeiational anu tactical layeis with uata as fiesh as it can be.
Little ieseaich has pieviously been uone on how a ieal time business intelligence
solution can benefit an oiganization in means of changing cuiient uecision piocesses.
This thesis aims to show why theie is a neeu foi a ieal time business intelligence
solution anu how that can change the cuiient uecision piocesses anu make them moie
efficient. Fuithei it inuicates that theie aie challenges to the cuiient uecision piocesses
that neeu to be auuiesseu.
This stuuy has been conuucteu as a qualitative exploiatoiy case stuuy in the Byggma
gioup, with 16 face-to-face inteiviews at the thiee plants of Buntonit AS, Fibo-Tiespo AS
anu 0lual AS, anu an auuitional meeting obseivation at Fibo-Tiespo AS. The inteiviews
weie conuucteu in two phases. The fiist phase incluueu 1S inteiviews that focuseu on
the neeus foi a uecision suppoit system anu the knowleuge level in the oiganization.
The seconu phase was conuucteu by selecting thiee specific iesponuents fiom the fiist
phase that weie given uiffeient scenaiios to uesciibe the cuiient uecision piocesses in
uetail by using an inteiview methou calleu the thinking-alouu-event-piotocol. This
phase also incluueu the meeting obseivation at Fibo-Tiespo AS.
The iesults inuicate that many uecision piocesses weie affecteu by the lack of fiesh anu
ieliable uata available to the uecision-makei. The factoi of intuition, especially the use of
a "gut-feeling" was a contiibuting factoi to the uecision piocesses anu a factoi that the
plant uiiectois woulu usually appiove of. The ieseaich showeu that theie is a neeu foi a
ieal time business intelligence solution because the employees uo not have the most
ieliable anu fiesh infoimation to make uecisions at the opeiational anu tactical layeis.
Fuitheimoie theie weie challenges with the cuiient uecision piocesses that woulu also
neeu to be auuiesseu in oiuei to change the cuiient piocesses.
The stuuy concluues that a ieal time business intelligence solution woulu be beneficial
foi suppoiting the opeiational anu tactical layeis of uecision-making within an
oiganization. By implementing an RTBI solution, it woulu pioviue the uecision-makei
with fiesh anu ieliant uata to base the uecisions on. visualization of the cuiient uecision
piocesses showeu that by auuing a ieal time business intelligence solution it woulu help
eliminate the use of intuition, as theie woulu be moie uata available anu the uecisions
can be maue wheie the woik is peifoimeu. Fuitheimoie the iesults show that theie aie
potential challenges with the cuiient uecision piocesses that neeu to be auuiesseu in
oiuei to achieve the benefits of such an implementation:
• Piocesses neeu to be automateu.
• Theie neeus to be agieement on what shoulu be measuieu in ieal time.
• Employees neeu to be ensuieu they will not loose theii ielationship to the
numbeis.
• Theie is a neeu foi a uata waiehouse in the cuiient IT aichitectuie.
III
The case stuuy contiibutes to ieseaich by visualizing how a ieal time business
intelligence solution can shoiten a complex uecision piocess by giving the coiiect
infoimation to the iight people. It also shows that factois useu when theie is not
sufficient infoimation available, can be eliminateu. Fuithei it suggests that oiganizations
neeu to auuiess potential challenges as pait of a pie-pioject of a ieal time business
intelligence implementation.
Iv
1ab|e of contents
1 234567894263 ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: 1
1.1 N0TIvATI0N ............................................................................................................................................................ 2
1.2 RESEARCB Q0ESTI0N ............................................................................................................................................. 2
1.S STR0CT0RE 0F TBIS TBESIS .................................................................................................................................. S
1.4 TERNIN0L0uY ......................................................................................................................................................... 4
; 4
2.1 BECISI0N-NAKINu .................................................................................................................................................. S
@=A=A B0(1+(+-0 &0/ C&(+-0&:+(2 ============================================================================================================================ D
@=A=@ !"# E#6+'+-05%&4+0; ,)-6#'' ==================================================================================================================== F
2.2 B0SINESS INTELLIuENCE ....................................................................................................................................... 9
2.S REAL TINE B0SINESS INTELLIuENCE ............................................................................................................... 1u
2.4 BATA WAREB00SINu ........................................................................................................................................... 1S
2.S BATA WAREB00SINu ARCBITECT0RE .............................................................................................................. 1S
@=G=A H-),-)&(# B07-)?&(+-0 I&6(-)2 J K+:: B0?-0 =================================================================================== AG
@=G=@ E+?#0'+-0&: %-/#:+0; 5 C&:," L+?8&:: ============================================================================================== AF
@=G=M B0?-0 N'= L+?8&:: ======================================================================================================================================== AO
2.6 KEY PERF0RNANCE INBICAT0RS ...................................................................................................................... 19
2.7 B0SINESS PERF0RNANCE NANAuENENT ....................................................................................................... 2u
2.8 B0SINESS PR0CESS REENuINEERINu & B0SINESS PR0CESS NANAuENENT ........................................... 2S
2.9 CBALLENuES WITB BI INPLENENTATI0NS ..................................................................................................... 24
? 5(.(@59< @""56@9< :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ;A
S.1 RESEARCB PERSPECTIvE ANB PBIL0S0PBICAL vIEW .................................................................................... 27
S.2 RESEARCB BESIuN ............................................................................................................................................... 28
M=@=A H"-+6# -7 H&'# ================================================================================================================================================= @O
M=@=@ P8-1( ("# H-),-)&(+-0 &0/ H-?,&0+#' ============================================================================================== MQ
S.S RESEARCB STRATEuY ANB NETB0BICAL APPR0ACB .................................................................................... S1
M=M=A E&(& H-::#6(+-0 ============================================================================================================================================== MA
M=M=@ E&(& &0&:2'+' ================================================================================================================================================== MM
S.4 Q0ALITY 0F TBE RESEARCB ............................................................................................................................... S6
M=R=A S'# -7 !"#-)2 ================================================================================================================================================== MD
M=R=@ T+?+(&(+-0' ====================================================================================================================================================== MF
M=R=M N&:+/+(2 ============================================================================================================================================================== MF
M=R=R U1) )-:# &' )#'#&)6"#)' ============================================================================================================================== MF
B 5(.8C4. :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ?D
4.1 RES0LTS FR0N PBASE 1 ..................................................................................................................................... S9
R=A=A H"&::#0;#' ======================================================================================================================================================== MO
R=A=@ V#6#''+(+#' &0/ S'#71:0#'' ======================================================================================================================== RA
R=A=M U);&0+- 3# "&.# ("# (--:' +0 &
3&2\ 3"+6" 6&0 8# 81+
(- 6-0(&+0 ("#'# (2,#' -7 ("+0;'Y= 0theis saiu that this so-calleuuata waiehouse was in fact just the uatabase wheie infoimation is stoieu, but that the
neeu foi a uata waiehouse is theie: `V-3 ("&( 3# &)# +?,:#?#0(+0; & 0#3 jCX5'2'(#? 3#
3+:: "&.# & 10+h1# -,,-)(10+(2 (- 81+:/ +( 1, &0/ '()16(1)# +( +0 & 0#3 3&2 ("&( ?&4#' +(
,-''+8:# 7-) 1' (- "&.# & /&(& 3&)#"-1'#Y ]%&)4#(+0;\ I+8-5!)#',-^=
0ne plant uiiectoi stateu that he uiu not believe that age has anything to uo with
knowleuge within the oiganization, but that he uiu believe some of it affecteu him; `P'
2-1 40-3\ B &? +0 ("# -("#) #0/ -7 ("# '6&:#= T164+:2 B "&.# 2-10;#) /&1;"(#)' ("&( (#&6"
?#Y=
Fiom the inteiviews one coulu also unueistanu that a lot of inteinal euucation is going
on within the oiganization. The plants aiiange stuuy gioups foi the executive team once
a week; `k# "&.# )#&/+0;
-1,' 3"#)# 3# )#&/ 6"&,(#) 82 6"&,(#) &0/ ;#( 1, +/#&' &0/("-1;"('Y= The ongoing LEAN-implementation has given the employees goou piactical
competence when it comes to pioject implementation; `k# 3&0( (- ?&4# & ?-/#: 7-) ("#
/+77#)#0( ,)-9#6( ,"&'#' 3# "&.# ;-0# (")-1;"= k# "&.# O ,"&'#' +0 ("+' ?-/#:= B "&.#
?&/# & '6"#?& 7-) #&6" -7 ("# ,"&'#'\ 3"+6" ?&4#' +( #&'+#) (- )#?#?8#) 3"&( 7&6(-)'
("&( &)# +?,-)(&0( &0/ '- -0Y ]X)-/16(+-0 %&0&;#)\ I+8-5!)#',-^= In the time befoie
46
Fibo-Tiespo staiteu with LEAN, they spent a lot of time euucating theii employees; `k#
6"-'# AF5AW ,#)'-0' &0/ ;&.# ("#? & /##,#) ()&+0+0; -0 ("# (-,+6= k# "&/ & ("#-)25
,)&6(+6# &,,)-&6"= I+)'( 3# ',#0( (+?# -0 ("# ("#-)#(+6&: 8&'# (- ;#( &0 10/#)'(&0/+0; -7
("# 6-06#,( &0/ ("# ,)-6#''\ ("#0 3# '(&)(#/ 3+(" ("# ,)&6(+6&: 3-)4= P0 +?,-)(&0(
6-?8+0&(+-0=Y ]X:&0( E+)#6(-)^= Fuithei, the management team at Fibo-Tiespo sees that
they have cieateu value with theii implementation anu on-going woik with LEAN, anu
have maue the infoimation available to the othei oiganizations: `k# 1'# '-?#("+0;
6&::#/ ("# G >\ +( +' &8-1( #.#)2("+0; 8#+0; 6:#&0 &0/ '"+0+0;\ &0/ (- 8# '#((+0; & '(&0/&)/
7-) ("# )#'(Y ]X)-/16(+-0 ?&0&;#)\ I+8-5!)#',-^= With the new LEAN methouology, the
hieiaichy is not as it useu to be at this plant. The plant uiiectoi stateu that it has
switcheu to become a moie flat stiuctuie, anu even on some points being the opposite
way of how it useu to be: `k# "&.# (1)0#/ ("# ,2)&?+/ &)-10/= !"# 6-??+(?#0( +' -0 (-,
&0/ 3# "&.# 7-61' -0 ("# -,#)&(-)' +0 ("# '2'(#?\ ("# ,#-,:# ("&( &)# /-+0; ("# .&:1#5
&//+0; 3-)4\ &0/ ("# )#'( -7 1' &)# ("#)# (- '1,,-)( &0/ 6&))2 ("&( ,)-6#''= k# '(&)(#/
3+(" ("# ()&/+(+-0&: :#&/#) -0 (-,\ 81( "&.# (1)0#/ +( &)-10/ &0/ ("&(d' 3"&( 3-)4'Y=
The plant manageis at Buntonit anu 0lual says that they have leaint a lot fiom the LEAN
piocess in Fibo-Tiespo, anu that has helpeu them when they staiteu with the piocess:
`!"# ,:&0( /+)#6(-) &( I+8-5!)#',- "&' 8##0 '-)( -7 & ?#0(-) 7-) ("# )#'( -7 1'\ '+06# ("#2
3#)# ("# 7+)'( (- '(&)( &0/ "&' 6-?# ("# 71)("#'( +0 ("# ,)-6#''Y ]X:&0( /+)#6(-)\ S:/&:^=
The plant manageis have an oveiall oveiview of the oiganization, whilst the piouuction
manageis anu otheis at a lowei level of the oiganizational stiuctuie have knowleuge on
theii own uepaitment anu fielu, but nothing moie. All thiee plant manageis hau some
knowleuge of business intelligence, anu the CI0 hau some knowleuge as well; `k# 40-3
3"&( 3# 3&0(\ (- ,1( +( ("&( 3&2= L0-3 3"&( 3# 3&0( +0 ("# 1'#) +0(#)7&6#\ 81( "-3 3#
81+:/ +( (#6"0-:-;+6&::2 &0/ (#6"0+6&::2\ 3# /- 0-( 40-3 (-/&2Y ]HBU\ K2;;?& P>P^=
Some of the tiaining within the oiganization has also hau a negative impact on woikeis,
as Fibo-Tiespo useu a so calleu "Stanuing in a Ciicle" appioach wheie one of the peisons
in the executive team was stanuing next to a machine anu wiiting uown eveiything that
happeneu foi a whole uay. Accoiuing to the piouuction managei: `k# 8#;&0 3+(" +(\ &0/
+( 8#6&?# & 8+; ("+0;\ 8#6&1'# ("# 3-)4#)' ("-1;"( 3# 3#)# -1( (- ;#( ("#?= k# 3#)# 91'(
'1,,-'#/ (- 3)+(# /-30 "-3 ("#2 "&0/:#/ ("# ?&6"+0# &0/ '16"\ 81( 3# '"-1:/ "&.# 8##0
8#((#) &( +07-)?+0; ("#?= !"#2 /+/ 0-( "&.# ("# '&?# 10/#)'(&0/+0;= k# +0 ("# #e#61(+.#
(#&? "&.# "&/ ?-)# ()&+0+0;\ &0/ +( 3&' #&'2 7-) 1' (- 8#:+#.# ("&( -("#)' "&/ ("# '&?#
40-3:#/;#Y=
The CI0 believes that piactical tiaining is an impoitant aspect of euucating theii
employees to gain moie competence in the fielu; `m-1 6&00-( 91'( '+( ("#)# &0/ :--4 &( &
'6)##0 &0/ "&.# +( ,)#'#0(#/\ ("#2 "&.# (- /- 3"&( +' 0#6#''&)2 (")-1;" ,)&6(+6&:
()&+0+0;Y= Be also says that the way the plant uiiectoi has useu a mix of theoiy anu
piactice at Fibo-Tiespo has helpeu the oiganization; `b# +' & ,)&6(+6&: 6-1)'# (2,#\ ("#2
/-0d( 91'( (&:4 ("#-)2 &0/ "-3 +( '"-1:/ 8# /-0#\ 81( "# ,1(' 1, & 3"+(#8-&)/ &0/ ;#('
,#-,:# (-;#("#) &0/ "&.# ("#? )#&/ & 6-1,:# -7 6"&,(#)' +0 ("# 8--4= !"#0 ("#2 6-0/16(
'(1/256+)6:#'= m-1 4+0/ -7 "&.# ("&(\ )&+'# ("# 6-?,#(#06# :#.#: +0 '(&;#' 82 "&.+0; 8-("
,)&6(+6&: &0/ ("#-)#(+6&: :#&)0+0;Y= To fully help the thiee plants in the implementation
of the new ERP system anu in the LEAN methouology, the oiganization has engageu an
exteinal consultant.
47
4.1.S Ind|cators
At the moment, all numbeis that aie being measuieu in the plants aie histoiical
numbeis, anu the iepoits that aie maue baseu on these numbeis aie monthly. All thiee
plants have intiouuceu the moining meeting anu iegulai use of the whiteboaiu wheie
they have all theii key piocess inuicatois. This is what they measuie anu make changes
baseu upon the numbeis, which is piesenteu eveiy moining. The uata heie is piesenteu
with gieen (positive) oi ieu (negative) maikeis. They all ieplieu that the inuicatois that
they aie heavily inteiesteu to measuie aie how is the sales office uoing, how aie we on
oiueis, uo we uelivei on time, anu how is piouuction. Anu in the question of populaiity
in the iange of piouucts, aie theie any piouucts that we may neeu to ieconsiuei to stop
piouucing, an impoitant KPI foi Byggma ASA is the stop maigin - Why wheie theie
stops in one oi moie piouuction lines. - What causeu the stops. What causeu piouuct
faults. Seveial employees of the thiee plants point out that this is impoitant to measuie.
Foi now, stop anu eiiois aie only measuieu by punching it in manually. At 0lual, the
piouuction managei says that theie is a neeu foi measuiing if glass bieaks in the
piouuction of winuows, oi if something goes wiong in the painting uepaitment; `B 7##:
("&( ("&( '"-1:/ 8# ?-)# 1, (- /&(#Y (Piouuction managei, 0lual).
Beie they also follow up anu have continuous woik to avoiu any stop in piouuction.
Fiom oui inteiviews we can se that this is the main concein foi the piouuction
manageis anu plant uiiectois. A key factoi that ielates to the above inuicatois is piouuct
quality. Accoiuing to the piouuction manageis they use 0veiall Equipment Efficiency
(0EE) to check the availability in piouuction lines, how they exploits the piouuction line
anu the quality on piouuction.
`B( +' &:'- ("# 7&6( ("&( 3# 6&0 '## ("# )#&'-0' 3"2 ("#)# "&.# 8##0 '(-,' &0/ ("&( 3# 6&0
6)#&(# & :+'( -7 '(-,' &0/ ;- /-30 (- /- '-?#("+0; &8-1( +(\ ("&( +' .#)2 +?,-)(&0(Y
]X)-/16(+-0 %&0&;#)\ I+8-5!)#',-^=
Anu as we can see fiom the inteiviews, each plant is uepenuent on iaw mateiial they
buy fiom theii supplieis. Stock level, volume in monetaiy teims of iaw mateiial is a
measuie they want in ieal time. The plant uiiectoi at Fibo-Tiespo saiu: ">-?# -7 ("#
("+0;' 3# 3&0( (- 8)+0; -1( & :+(
# h1+64#)\ &0/ 3"#0 +0 ("# ?+//:# -7 & ,#)+-/ +' ("# '(-64:#.#: -7 )&3 ?&(#)+&: '+/# &0/ ("# .-:1?# +0 /-::&)' &0/ /+?#'Y=
This infoimation is only biought to them fiom monthly iepoits anu is too cumbeisome
anu uifficult to cieate iepoits baseu on the uate you want.
An oveiall paiametei foi the inuicatois above is the economic aspect. `m-1 6-1:/ "&.# &'
?&02 ("-1;"(' &8-1( ("# ,#-,:# 2-1 3&0( (-\ ,)-/16(+-0 &0/ ,)-/16(' &0/ 8# &' "&,,2 &'
2-1 3&0(= K1( +7 2-1 /-0d( #&)0 ?-0#2 -0 +( 2-1 ?+;"( &' 3#:: 6:-'# /-30Y ]X:&0( E+)#6(-)\
b10(-0+(^= As he saiu this, he also mentioneu that if you have happy employees, you have
employees that woik well anu get things uone. Chief accountant at 0lual mentions one
inuicatoi that woulu be necessaiy in ieal time: `>&:#' '(&(+'(+6' +' +?,-)(&0(= k"#)# &)#
3# &66-)/+0; (- -1) 81/;#( &0/ ;-&:'n !"&( +' (3- -7 ("# ?&+0 7&6(-)'Y= Fuithei the chief
accountant also mentions that it woulu be veiy impoitant to know how much money
that goes out at any time.
The inteiviews inuicate that all thiee plants believe that theie is a neeu foi ieal time
infoimation iegaiuing piouuction, sales anu oiueis. The boaiu of Byggma ASA is in neeu
48
of an oveiview of ieal time infoimation foi the uiffeient plants when it comes to how
many oiueis they have hau uuiing the uay anu at specific times of the uay, as well as the
financial peispective.
4.1.6 Arch|tecture
The cuiient uatabase anu IT aichitectuie has only been given a vague uesciiption in the
inteiviews, because most of the iesponuents uoes not have the knowleuge of what it
looks like. As pieviously mentioneu, theie aie uiffeient peiceptions of a uata waiehouse,
whethei oi not the oiganization has this. But foi now, the aichitectuie only contains
uatabases that aie uiiectly connecteu to the ERP system, anu no uata waiehouse.
I,Q*#$ 1> N Z0QQ/& @.@ 24 &#'_,+$'+*#$
The cuiient aichitectuie (figuie 1S) consists of an ERP system that is common foi all
thiee plants - IFS. In auuition to that ERP system, one of the plants also uses an
infoimation system that is tailoi-maue foi theii business. The oiganization as a whole is
cuiiently in the tiansition moue while changing theii ERP system in favoi of a
completely new solution. This will pioviue some changes foi the cuiient uatabase
aichitectuie, but theie will still be no uata waiehouse. The step to change ERP system is
a big step foi the oiganization - Byggma ASA, since they have hau seveial uiffeient ERP
systems in the oiganization foi yeais.
All iesponuents except one believe that it is bettei to focus one a few coie piocesses
when implementing a new infoimation system in theii oiganization. They believe that
one shoulu choose the most ciitical anu impoitant piocesses to stait with, to get fast
iesults in oiuei foi people to believe that this is the way to go; `B ("+04 +(d' +?,-)(&0( (-
(&4# '-?# ("+0;' 7+)'(= !"&( +' ?2 -,+0+-0= B( ?+;"( 0-( 8# ("# 6-))#6( 3&2\ 81( 7-) ?2 ,&)( B
("+04 +(d' +?,-)(&0( (- (&4# 6-)# ,)-6#''#' 7+)'( (- '## 4#2 01?8#)'Y ]H"+#7 &66-10(&0(\
S:/&:^= 0nly one iesponuent believeu that one shoulu ioll out the pioject ovei the entiie
49
oiganization at once, that way eveiyone will feel incluueu; `B7 2-1 &)# ;-+0; (- '(&)( 3+("
("# 6-)# ,)-6#''#'\ 2-1 "&.# (- 7+;1)# ("-'# -1(= P0/ ("&( 6&0 (&4# (+?#= >- B 8#:+#.# ("&( 3#
'"-1:/ )-:: +( -1( )+;"( &3&2 &0/ (&4# +( 7)-? ("#)#Y ]X)-/16(+-0 ?&0&;#)\ I+8-5!)#',-^=
4.2 kesu|ts from Þhase 2
4.2.1 Current Dec|s|on Þrocesses
Rounu two with inteiviews at Fibo-Tiespo we got the plant uiiectoi to uesciibe a
situation in iecent time. This situation was a iequest fiom a customei. The customei
who was Byggmakei contacteu the sales office iequesting a sales campaign in a specific
week on a specific piouuct. Fuithei on with the next inteiview we useu this situation as
a scenaiio foi the piouuction managei anu askeu him to uesciibe the piocess foi us. This
alloweu us to mouel the piocesses in ARIS. To give the costumei an answei, they neeu to
know if Fibo-Tiespo has capacity to piouuce anu uelivei this piouuct on time. To be able
to see the capacity on piouuction anu piouucts in stock it is necessaiy to collect uata
fiom foui uiffeient uatabases, stock, intake of oiueis, piouuction plan anu backlog of
oiueis. To collect this uata the piouuction managei imposes chief of logistics, chief of
sales office anu piouuction plannei to get uata fiom theii aiea of iesponsibility anu pass
it ovei to him. This uata is then useu in a mouel Fibo-Tiespo has put togethei in NS
Excel. The mouel piesents the status of the uiffeient uivisions in the plant in a giaphical
u0I as well as table of the uata collecteu. The uata they use heie is this yeai's uata anu
histoiical uata two yeais back in time. This allows them to simulate anu pieuict the
influx of sales foi ceitain peiious.
In this section we uesciibe the situation as mentioneu above to visualize the piocess.
Below, figuie 16 shows the moueling we have uone in ARIS of this piocess (the mouel is
stietching ovei two pages).
The situation occuiieu when Fibo-Tiespo ieceiveu a message fiom the customei that
they wanteu to iun a sales campaign. At this point the sales iepiesentative uiun´t have
the neeueu infoimation to appiove oi ueny the iequest. Aftei chattei in the office, theie
wheie uiviueu opinions whethei they coulu accept oi not. This leu to a meeting of the
leauei gioup to uiscuss the situation. At the meeting they concluueu that it was
necessaiy to gathei infoimation fiom thiee uiffeient uivisions, stock, sale anu
piouuction. The infoimation neeueu was stock, intake of oiueis, backlog of oiueis anu
piouuction. To ietiieve this infoimation the piouuction managei took the iesponsibility
anu iequiieu this uata fiom the chief of logistics, chief of sales office anu piouuction
plannei. The ieason the piouuction managei uiun't ietiieve the infoimation himself is
because lack of system licenses (employees shaie the same license) anu that each
uepaitment have a bettei unueistanuing¡oveiview of theii own aieas.
`B "&.# &66#'' (- BI>\ 81( +(*' 7+.# -) '+e ("&( 1'#' ("# '&?# 1'#)= P0/ ("#2 3+:: 0-( ,1)6"&'#
&//+(+-0&: :+6#0'#'= B 6-1:/ "&.# ;-0# +0 ]jCX5'2'(#?^ (- /- ("# '&?# &' ("# ,)-/16(+-0
,:&00#)\ /-0# ("# '&?# &' '&:#' -77+6#\ /-0# ("# '&?# &' :-;+'(+6'= H"#64#/ ?2'#:7= K1( #.#)2
/#,&)(?#0( "&' & 8#((#) -.#).+#3Y ]X)-/16(+-0 ?&0&;#)\ I+8-5!)#',-^=
Su
This is the main time-consuming task of this piocess. The plant uiiectoi tolu us that they
ieceiveu the iequest one Fiiuay anu wheie able to give iesponse to the costumei
Weunesuay, foui business uays latei.
When the piouuction managei ieceiveu the neeueu infoimation fiom sales office,
logistics anu piouuction he coulu stait the woik of cieating a mouel wheie they coulu
simulate what a sales campaign woulu uo to the piouuction anu company.
The next step was to gathei the leauei gioup again anu uiscuss the mouel to evaluate the
situation anu simulation the mouel uisplayeu. The piouuction managei piesenteu the
mouel anu explaineu the to the leauei gioup the facts they wheie shown. The leauei
gioup then agieeu on an outcome anu passeu the message on to the sales office so they
coulu contact the customei anu ieply.
S1
Continues on the next page
S2
I,Q*#$ 1G N 7$',S,PON/&U,OQ R#P'$SSW .&M$S '&/R&,QO #$d*$S+
SS
Anothei scenaiio that we got uesciibeu was a situation wheie they lackeu iaw mateiial
foi a specific piouuct. This scenaiio occuiieu in }anuaiy. Foi Fibo-Tiespo it was
impoitant to be able to iun the piouuction at an acceptable level anu to keep piouucing
goous, keep employees in woik anu uelivei piouucts they wheie able to piouuce. This
situation meant that they hau to iuentify what they coulu woik with until they got the
neeueu laminates back in stock, not to mention make ioom on the stoiage foi iaw
mateiials foi the laminate that weie on its way. The piouuction managei took the
iesponsibility of gatheiing infoimation. Infoimation the piouuction managei neeueu
was fiom sales; what was solu. Logistics; what they hau in stock. Piouuction; what kinu
of piouucts weie in piouuction. Raw mateiials; how much anu what was in stock of iaw
mateiials.
The piouuction managei sent out the message to the uivisions mentioneu above, anu the
message saiu that this infoimation hau to be sent to him. Be neeueu this infoimation to
cieate a new plan foi piouuction. This plan hau the ciiteiia to make ioom foi the
incoming iaw mateiials, keep piouuction going, keep the customeis happy by ueliveiing
oiueis. Anu keep the loss at a minimum.
`B ?1'( ;#( ("# '6"#/1:#) (- 6"#64 "-3 3# &)# /-+0; +0 )#:&(+-0 (- ("# (+?# 3"#0 3# 6&0
)10 +(\ &0/ ("#0 ;#( ,)-61)#?#0( -77+6# (- 6"#64 3"#("#) 3# "&.# ("# )&3 ?&(#)+&:' (-
?&4# +( )10= [#( ("# 3&)#"-1'# (- 6"#64 -0 3"&( 3# "&.# +0 '(-64\ 6"#64 +7 +( ?&(6"#' ("#
&?-10( -7 '(-64 +0 )#:&(+-0 (- ("# BI>= P0/ ("#0 2-1 "&.# (- 0-(+72 ("# 6&:: 6#0(#) '- ("#2
40-3 3"&( ("#2 0##/ (- ,)-6)&'(+0&(#Y ]X)-/16(+-0 %&0&;#)\ I+8-5!)#',-^=
Below you finu an illustiation of the piocess uesciibeu above (figuie 17). We stait out
with the fact that they lack iaw mateiials anu the piouuction managei takes the
iesponsibility to gathei uata fiom the foui uatabases. In that mattei he gives oiueis to
the peisons in chaige of each uivision to senu the uata ovei to him insteau of accessing
the uatabases.
S4
I,Q*#$ 1A N 7$',S,PON/&U,OQ R#P'$SSW C&'U P% #&[ /&+$#,&MS
laminatmangel prosess
SS
4.2.1 Meet|ng observat|on
Buiing the seconu phase we weie able to be paiticipating obseiveis uuiing a moining
meeting at Fibo-Tiespo. Buiing the meeting we weie able to take pictuies of the
whiteboaiu as well as taking notes.
This moining meeting was intiouuceu to the plant togethei with LEAN, anu is a way of
infoiming the leaueis of the iespective uepaitments on numbeis fiom the pievious uay
in piouuction, sales, BNS, anu so on. Eveiy week a new peison is in chaige of the
meeting, but all uepaitment leaueis have numbeis that they piesent at the meeting. This
meeting lasts foi maximum 1S minutes, anu staits piecisely 8.Su eveiy moining. Theie
is a clock attacheu to the wall ovei the whiteboaiu, wheie the time fiom 8.Su-9 is
maikeu with gieen. This is the initial meeting time eveiy uay. The time fiom 9-9-uS is
maikeu in yellow, inuicating that if they neeu moie time, they have S minutes extia.
To be able to piesent some of these numbeis, the piouuction managei staits woik at 6
am to queiy the uatabase foi yesteiuays numbeis iegaiuing incoming oiueis. This has
to be uone at an eaily stage because it is heavy woik foi the uatabase, anu at the same
time they only have a limiteu numbei of licenses in the system. Then, the leaueis of the
vaiious uepaitments also queiies theii iespective infoimation, such as piouuction
numbeis, sales numbeis, logistics numbeis.
The numbeis aie wiitten uown on the whiteboaiu eveiy moining befoie each meeting,
anu aie wiitten with eithei a ieu oi gieen maikei (figuies 18 & 19). The ieu numbeis
iepiesents numbeis that has not peifoimeu accoiuing to the set goals, whilst the gieen
numbeis inuicates that the numbeis have peifoimeu accoiuing to the goals oi bettei
than it. A peicentage of the numbeis, in consiueiation with the expecteu numbeis, aie
also shown.
I,Q*#$ 1F N ",'+*#$ P% Z"6N[_,+$LP&#T &+ I,LPN4#$SRP
S6
Befoie the meeting staiteu, the plant uiiectoi intiouuceu us anu tolu that we weie
masteis' stuuents woiking on a thesis on ieal time uata, to infoim the otheis of what we
weie uoing theie. Aftei that, the meeting staiteu, with the meeting leauei shoitly
infoiming on numbeis fiom his uepaitment, anu then letting the otheis infoim,
uepaitment aftei uepaitment. Buiing the meeting all employees infoimeu the
paiticipants of theii numbeis, anu what coulu be the cause of foi example a ieu numbei.
Foi example, one peison saiu that they hau been one peison less woiking the uay befoie
because one peison suuuenly hau to leave, anu that that hau an impact on the numbeis.
I,Q*#$ 1D N Z"6N[_,+$LP&#T 'MPS$N*R
This moining meeting gives the employees anu the plant uiiectoi an oveiview of how
the plant peifoimeu the uay befoie, anu how one shoulu woik in oiuei to achieve the
goals that has been set. The plant uiiectoi also saiu that these meetings have been veiy
effective, anu that the oveiall peifoimance of the woikeis incieases if theie aie ieu
numbeis on the whiteboaiu.
The main iesults in this ieseaich chaptei aie summaiizeu on the next page.
S7
4.3 Summary of Þhases 1 & 2
Fiom oui two phases of inteiviews anu obseivation we have categoiizeu the iesults of
this stuuy into thiee topics: Becision-making touay, challenges anu potential benefits.
Þhase 1
E#6+'+-05?&4+0; (-/&2
• Fiom the iesults we can see that the opeiational numbeis aie impoitant
inuictois to measuie.
• Boes not fully tiust electionic numbeis.
• Reuunuancy, opeiational numbeis aie puncheu in up to thiee times each.
H"&::#0;#'
• Afiaiu of loosing theii ielationship with numbeis.
• Afiaiu of loosing valuable time spent "on the flooi".
• Boes not tiust electionic numbeis.
• The plants vaiy in age anu size.
• New equipment can potentially cost a lot of money.
X-(#0(+&: K#0#7+('
• They spenu too much time on ietiieving anu calculating piouuction, anu sales
uata to make uecisions.
• Big potential to ieuuce the amount of employees it takes to make a uecision that
uepenus on opeiational measuies anu sales histoiy.
• Employees aie asking foi an RTBI-system suppoiting uaily business.
Þhase 2
E#6+'+-05?&4+0; (-/&2
• Noining meetings neeu to physically ietiieve anu calculate piouuction uata
(opeiational measuies), which the moining meeting leauei lists on the
whiteboaiu each moining.
• Complex piocesses to caiiy out a uecision.
H"&::#0;#'
• Cuiiently no uata waiehouse.
• Seveial uatabases that infoimation is ietiieveu fiom.
X-(#0(+&: K#0#7+('
• Bigitalizing the whiteboaiu to inteiact with a potential RTBI-system.
• LCB-monitois piesenting opeiational uata useu in moining meetings.
Baseu on these thiee topics we cieateu a mouel to use in the next chaptei of analysis anu
uiscussion of the iesults (figuie 14).
S8
S Ana|ys|s & D|scuss|on
Baseu on the iesults theie aie thiee topics that neeu to be uiscusseu in oiuei to fully
unueistanu the value anu benefits an implementation of a ieal time business intelligence
system can have on uecision-making. Fiist, we neeu to look at how the cuiient uecision
piocesses woik anu what factois that affects them. Then, we neeu to look at what
challenges neeus to be auuiesseu with such an implementation. Lastly, we will uiscuss
what potential benefits a company in the constiuction anu home impiovement supplies
business may have with the implementation of a uecision suppoit system such as ieal
time business intelligence.
Dec|s|on-mak|ng today
Touay's uecision-making in the thiee plants is paitially baseu on uata ietiieveu fiom the
uiffeient infoimation systems they holu. Infoimation fiom the opeiational level is
puncheu into the uatabases anu is ietiieveu by using queiies assembleu in NS Access.
That is consistent with Rouiigues (2uu2) who says 9u% of infoimation in touay's
businesses is actually unstiuctuieu. Baving unstiuctuieu infoimation that neeus to be
collecteu eveiy moining is time-consuming anu not especially suppoitive of an efficient
uecision piocess (uolfaielli et al., 2uu4). A gieat contiibutoi to the uecision-making
seems to be the factoi of intuition, by using "gut-feeling". It seems like this factoi is
especially impoitant because the uecision-makei uoes not have the coiiect infoimation
available. As we coulu see in the mouels of the cuiient uecision piocess at Fibo-Tiespo
(figuies 16 & 17) the sales iepiesentative acteu on "gut-feeling" because theie was no
othei infoimation to base the uecision on. The senioi manageis uiu not seem to accept
the ieplies given fiom the sales office, that is not consistent with pievious ieseaich
which founu senioi manageis have a tenuency of accepting "gut-feeling" in uecision-
making (Khatii & Alvin, 2uuu). It might seem that the use of "gut-feeling" is moie
accepteu if the peison making the uecision has woikeu in the company ovei a longei
peiiou. 0ne coulu say that an immeuiate ieason foi the sales iepiesentatives acting on
theii "gut-feeling" was that theie was a lack of competence anu they theiefoie chose to
act on past expeiience (Khatii & Alvin, 2uuu).
The plant uiiectois implieu that they useu these factois themselves when making
uecisions because they have expeiience with events fiom pievious yeais. That is
consistent with the fact that theii employees saiu they tuin to the plant uiiectoi if they
cannot finu sufficient infoimation because he usually has a "gut-feeling" ielateu to
expeiience with the company. That implies that the senioi manageis might not have
believeu that the employees in the sales office hau sufficient expeiience to base theii
intuition on, but insteau saw gieatei value of uigging into theii uatabases to finu suppoit
(Khatii & Alvin, 2uuu). As figuie 16 shows, the moment that the manageis at Fibo-
Tiespo hau the coiiect infoimation at hanu they weie able to make a uecision. Bowevei,
fiom the initial iequest was ieceiveu at the sales office till the uecision was maue, a lot of
time was spent seaiching foi the coiiect infoimation. Eisenhaiut (1989) says that the
uecision-makei with less infoimation makes slowei uecisions then those with moie
infoimation available. In this situation the sales iepiesentatives uiu not have many
alteinatives anu weie not able to choose the most appiopiiate uecision (Clelanu & King,
198S). We coulu say that the lack of infoimation available maue the employees at Fibo-
Tiespo spenu moie time seaiching foi it, because they weie not awaie of what type of
infoimation that they actually possess in theii infoimation systems. By not having the
coiiect infoimation available foi the employees at the sales office the uecision was not
S9
maue wheie the woik was peifoimeu. Insteau it hau to be taken fuithei into the
oiganization. That is in contiast to one of the piinciples of Bammei (199u) which
implies putting the uecision wheie the woik is peifoimeu, meaning that the peison
uoing the woik shoulu be the one making the uecision in that aiea. The founuation of
touay's uecisions is connecteu to possible challenges foi a system that will suppoit ieal
time uecision-making.
Cha||enges when |mp|ement|ng a rea| t|me bus|ness |nte|||gence system
To be able to implement anu effectively utilize a ieal time business intelligence system,
theie seem to be seveial challenges connecteu to the uecision piocess that neeu to be
auuiesseu. 0ne of the main challenges foi the Byggma gioup is that most of the
piocesses at the thiee plants aie manually uiiven, meaning that the uata is puncheu into
the uatabase aftei eveiy shift in oiuei to be ietiieveu by employees who cieate queiies.
As mentioneu eailiei, the finuings inuicate that this has an effect on the uecision-making
piocess because the coiiect infoimation is not available. That ielates to uolfaielli (2uu4)
who founu that it is impoitant to focus on business piocesses in touay's competitive
maiket. Reseaich shows that in oiuei to impiove piocesses anu peifoimance, theie is a
neeu foi quick access to coiiect anu consistent uata (Wixom & Watson, 2uu1). Foi that
to happen, the business neeus to take initiative anu actually want to change the
piocesses (Bavenpoit, 2u1u). Connecteu to automating piocesses aie potential costs as
the thiee plants have equipment that vaiies in size, age anu complexity. The plant
uiiectoi at Buntonit states that because they have an oluei factoiy anu oluei equipment
than Fibo-Tiespo, theie aie also highei costs ielateu to a possible automation of theii
cuiient piocesses. Accoiuing to Bammei (199u) it is impoitant to take auvantage of
technology anu piocesses so that the woik is moie efficient anu theie is a possibility of
ieuucing costs. With oluei equipment, it is impoitant that the piocess is in focus, anu
that it might be a bettei iuea to ieengineei, by buying all new equipment anu cieating
new piocesses. Bammei (199u) states that businesses often believe that impioving olu
piocesses by automating them is the coiiect way, while in fact the eiioi lays within the
piocess itself. The Buntonit plant has oluei equipment than Fibo-Tiespo anu 0lual, anu
might have a biggei pioblem with automating alieauy existing piocesses because of
availability of paits. It is impoitant that the piocess-change is uiiecteu towaius
efficiency anu contiol (Bammei, 199u).
Fibo-Tiespo has newei equipment, anu theii piocesses may have been ieengineeieu
when they began the LEAN piocess. Baseu on that, it might be smaitei to automate the
cuiient piocesses, as these might be moie matuie. By using the concept of Business
Piocess Nanagement (BPN) Fibo-Tiespo coulu focus on the woikflow of theii existing
piocesses by automating these. Beie, the focus is on opeiational excellence anu agility,
anu with a successful implementation of LEAN they might be moie agile than the othei
plants. As many piocesses within a business aie invisible, it is impoitant to make these
visible, anu to have a focus on them. By focusing on automating cuiient piocesses, the
plants will be able to shoiten the piouuct uevelopment cycles anu make moie iapiu
uecisions, which can be contiibuting factois to achieving success (Atie, 2uuS).
Baving a ielationship to the numbeis seems to be an impoitant factoi in the thiee
plants, anu a contiibuting factoi to the cuiient uecision-making piocesses. An impoitant
pait of the stiategy in the oiganization has been to cieate a ielationship between the
numbeis anu the employees, by letting employees take pait in ietiieving the numbeis
6u
that aie piesenteu at the moining meetings (figuie 18 & 19). The plant uiiectois believe
that this has given them an owneiship to the numbeis anu that this is valuable to them.
The feai of loosing that ielationship affects how some employees look at infoimation
systems - they believe they cannot fully tiust electionic numbeis. Plant uiiectois anu
piouuction manageis believe that if they have all infoimation available on the computei,
they will not spenu the same amount of time uown in the piouuction aiea as they woulu
noimally uo. Bowevei, an intiouuction of a ieal time business intelligence system will
neeu this stiategy to be aligneu with the oiganizational stiategies, which means that
theie will still neeu to be a ielationship between the goals anu the actual peifoimance
(Benueison & venkatiaman, 199S). Employees will still be able to ietiieve numbeis
fiom the infoimation systems, but it will take less time than befoie because theie is
moie infoimation available. An implementation of an RTBI system will also give moie
people access to the same infoimation, because one of the main points of RTBI is that
moie people can be upuateu on measuiements anu be able to see the oveiall
peifoimance (Azvine et al., 2uuS).
In oiuei to achieve the wanteu value fiom an RTBI system, the oiganization neeus to
agiee on what piocesses shoulu be measuieu in ieal time. Accoiuing to Watson et al.
(2uu4) an impoitant aspect of ieal time business intelligence is to be able to make the
iight uecision on what piocesses shoulu be measuieu in ieal time anu what shoulu
continue to be measuieu histoiically. At the moment, Byggma ASA only measuies theii
financial teims with a business intelligence solution. This is consistent with Beatham
(2uu4) who claims that theie has been a limiteu appioach when measuiing businesses
because theie has only been a focus on the financial teims. As of now theie seems to be
some uisagieement on what the most ciitical measuies aie, although all employees
agiee that opeiational measuies aie impoitant. This ielates to pievious ieseaich which
says that by measuiing the opeiational level in ieal time one can get immeuiate anu
fiesh uata(voitex-Technologies, 2uu4). The plant uiiectois saiu that because theii main
business is to piouuce, most uecisions maue aie ielateu to the piouuction. Pievious
ieseaich claims that moie uecisions aie taken at the opeiational level (Watson et al.,
2uu6). In oiuei to choose the iight piocesses foi ieal time measuiing, Byggma ASA anu
theii uaughtei companies shoulu be thoiough when choosing who shoulu ueciue this. It
is impoitant that the people choosing what piocesses to measuie have sufficient
knowleuge on the oiganization anu the inuustiy (Beatham et al., 2uu4).
To be able to implement ieal time business intelligence, the IT aichitectuie neeus to be
piepaieu foi this (Azvine et al., 2uuS). The coie component of such a uecision suppoit
system is a uata waiehouse, anu at the moment it uoes not seem like this is something
the Byggma gioup possesses (figuie 1S). Thiough the ieseaich we saw that theie weie
vaiious peiceptions of what a uata waiehouse was, even though all employees knew
that the uata they punch in is stoieu somewheie. Theie seemeu to be a lack of
knowleuge anu that the concepts of uatabase anu uata waiehouse weie mixeu anu
believeu to have the same meaning. That is not consistent with theoiy, which says that
the main uiffeience between the two is that a uatabase stoies uata whilst a uata
waiehouse iesponus to analysis questions that aie ciitical to the business (Tuiban &
volonino, 2u1u). To be able to suppoit the piocesses that the oiganizations wish to
automate anu measuie in ieal time, they neeu to auapt a uata waiehouse that suppoits
the ciiteiia foi uecision suppoit in a tactical, stiategically anu opeiational level (Azvine
et al., 2uuS; Imhoff, 1999). In oiuei to implement a uata waiehouse, the oiganization
61
neeus to agiee upon what aichitectuial methou they want to use (Bieslin, 2uu4). As
some employees believeu it is bettei to focus on the coie piocesses when implementing
RTBI, one employee believeu that it woulu be bettei with an oiganizational-wiue focus
fiom the beginning. This is consistent with Bieslin (2uu4) who states that theie aie two
aichitectuies foi uata waiehousing; the coipoiate infoimation factoiy focuses on the
whole enteipiise as a top-uown appioach while uimensional moueling focuses on the
coie piocesses of the oiganization as a bottom-up appioach. As an implementation of a
uata waiehouse iequiies that the oiganization follows a specific aichitectuie, Byggma
shoulu focus on theii employees. Pievious pioject within the plants have shown that
people want iesults, anu that theie is a wish to see the potential value of the change. 0ne
way to uo it coulu be that they have an oiganizational-wiue focus involving all
uepaitments, but still focus on quick-wins by finishing one piocess fiist so that the
employees sees the value of a ieal time business intelligence solution.
Þotent|a| benef|ts of an k18I |mp|ementat|on
0f all the uata that an enteipiise possesses, only 1u% is stiuctuieu (Rouiigues, 2uu2).
Business intelligence aims to solve this issue anu cieates a bettei stiuctuie foi uata
stoiage. Business intelligence iequiies a uata waiehouse as a pait of the aichitectuie.
By having a uata waiehouse you appoint uimensions to youi uata, which the uata
waiehouse will stiuctuie anu piesent as infoimation thiough a specifieu giaphical usei
inteiface (u0I).
By taking the uecision-making piocesses we have moueleu in ARIS (figuie 16 & 17) in
collaboiation with the plant uiiectoi anu piouuction managei we see that the piocesses
aie complex anu time consuming. They neeu to involve one employee fiom each uivision
they want to ietiieve uata fiom, to builu a mouel to cieate a founuation to base theii
uecision on.
By following Tapscott's (2uu8) thiee appioaches (simplicity anu ielevance, agility, anu
integiation) you aie able to impiove the uecision-piocess by pioviuing the employee
with infoimation anu the iight to make bettei-infoimeu uecisions. By using the existing
piocesses anu ie-mouel them to be suppoiteu by a RTBI-system (figuie 2u & 21) we
have tiieu to give examples on how the piocesses can be stieamlineu anu ieuuceu in
teims of people involveu anu time spent on each uecision. As piesenteu heie, we have
eliminateu the cential pait of the existing piocesses wheie those iesponsible foi the
piocess ask employees of uiffeient uivisions to ietiieve uata anu senu back to the
peison in chaige. By uoing this we have the oppoitunity to place the neeueu infoimation
thiough a custom u0I wheie the event occuis anu neeus to be hanuleu. As we aie
placing the infoimation wheie the situation occuis we aie able to act anu make the
uecision in the iight place, anu thus ieuuce time spent on builuing the infoimation
founuation one neeus to make the uecision (Bammei, 199u). This will pioviue the
benefits an oiganization wants, as mentioneu above. An auuitional benefit is that by
placing infoimation in the iight place, employees fiom the uivision that weie pieviously
neeueu to ietiieve uata can know concentiate on theii main activity. This is also positive
foi the leaueis, since they no longei neeu to be a pait of the uecision.
62
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RTBI sales cam reg dmp
0lu
New
6S
I,Q*#$ ;1 N 7$',S,PON/&U,OQ R#P'$SSW C&'U P% #&[ /&+$#,&MS [,+_ 54Z2
At the thiee plants the uata is being puncheu in to make it available, anu this is uone up
to thiee times foi the same uata to make it available thiough out the oiganization.
Byggma ASA will gain potential benefits fiom automating theii piocesses of iegisteiing
piouuction uata. This will ensuie that the uata isn't ieuunuant anu that employees can
gain tiust in the numbeis they neeu.
RTBI lack of raw material
0lu
New
64
Reseaich has shown that by implementing an RTBI-system businesses can save both
time anu money by making the infoimation available when anu wheie it's neeueu
(Rakshit, Kiishnamuithy, & Yu, 1996). Intiouucing new technology oi new appioaches
to hanule business piocesses is expecteu to give benefits to the company. When
intiouucing new softwaie oi technology to an oiganization it will affect the woik
piocesses, anu a uemanu foi change appeais. As Naikus (2uu4) points out we neeu to
be awaie of how technology piojects affect the oiganization. She uefines this as a teim
calleu "technochange". The teim technochange implies that we neeu to look at softwaie
implementation piojects as oiganizational piojects with focus on oiganizational change.
`K2 ()#&(+0; (#6"0-6"&0;# '+(1&(+-0' &' +7 ("#2 3#)# B! ,)-9#6('\ ("#'# -);&0+2'(#?' %&0&;#?#0(\ @M(1), 41-48.
Fuglseth, A. N. (1989). K#':1((+0;''(c((#Z %#(-/# 7-) /+&;0-'# &. :#/#)#' +07-)?&'9-05 -;
'+(1&'9-0'-,,7&(0+0;#)= (Bi. oecon Bisseitation), Noiges Banuelshøyskole Beigen.
uolfaielli, N., Rizzi, S., & Cella, I. (2uu4). K#2-0/ /&(& 3&)#"-1'+0;Z 3"&(*' 0#e( +0
81'+0#'' +0(#::+;#06#n Papei piesenteu at the Pioceeuings of the 7th ACN
inteinational woikshop on Bata waiehousing anu 0LAP, Washington, BC, 0SA.
uiovei, v., }eong, S. R., Kettingei, W. }., & Teng, }. T. C. (199S). The implementation of
business piocess ieengineeiing. g-1)0&: -7 %&0&;#?#0( B07-)?&(+-0 >2'(#?'\
A@(1), 1u9-144.
uuba, E. u. (199u). The alteinative paiauigm uialog (pp. 17-Su). Newbuiy Paik, CA: Sage
Publications, Inc.
Backathoin, R. (2uu4). The BI Watch: Real-Time to Real-value. E% C#.+#3 AR(1).
Bammei, N. (199u). Reeningeeiing woik: Bont Automate, 0bliteiate. b&).&)/ K1'+0#''
C#.+#3.
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10 Append|x
Appenuix A: Inteiview guiue Fibo-Tiespo ............................................................................................ 7S
Appenuix B: Inteiview guiue ...................................................................................................................... 74
Appenuix C: Analysis Natiix (6 pages) ................................................................................................... 7S
7S
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Alot of time was spent to euucate employees befoie the stait of the LEAN piocess. 17-18 peisons weie electeu to be pait
of that gioup. Focus on the fact that theie is now a moie flat stiuctuie, anu that that is a wish fiom the boaiu. Aftei the
LEAN implementation , the peisons on the othei siue of the hieiaichy has moie iesponsibility.
Bas a bit knowleuge on BI, knows that it is about measuiing inuicatois, has hau it piesenteu at a few uiffeient occasions,
but uoes not know anything in specific. Boes not believe that age affects knowleuge, says that he is at the othei enu of
the knowleuge-scale when it comes to technology, but has family membeis that help him anu teach him.
The PB at FT has been a soit of mentoi foi the iest of us(plants), since they have come the fuithest anu have most
knowleuge on LEAN. So that is a way we shaie oui competence. Neetings. Leaueigioup anu Leaueitiaining eveiy
Weunesuay. Boes not believe in the effect of having a consultant to help them with something, believes things have to go
in a slowei pace.
We uiu not want to piesent LEAN to the othei employees befoie all uepaitment leaueis hau ieau up on the topic, anu
weie able to answei questions. We have also been able to go to a leaueischool, to gain knowleuge on the topic. That has
been veiy positive.
We have a cooiuinatoi which assists me with keeping the stiuctuie, in accoiuance with the LEAN piocess. So the
company has hiieu a cooiuinatoi to help the uiffeient manageis of the uiffeient uepaitments.
Because of the success with the LEAN implementation, PN says that Fibo wants to cieate a mouel with phases, that othei
employees of the othei plants can look at when they stait theii implementation. It will make it easiei to iemembei the
phases anu the uiffeient factois affecting. Biu something that uiu not woik in the LEAN piocess, anu iealizeu this by
tiying to uo it uiffeiently. Biu not give sufficient infoimation, people uiu not unueistanu - Stanuing in a ciicle
Says that theie is no uatawaiehouse in the oiganization, but that they have seveial uatabases connecteu to the
infoimation system. Says that with a new ERP system in place, they will we able to builu it up anu stiuctuie it in a way
that they can also have a uata waiehouse
We have wiitten anu cieateu piojectplans anu piopulsion plans, so we have maue som stanuaius that aie impoitant to
us. Now theie is one peison is FT that is soit of a "bottleneck" on the queiies, which I think is not goou. Noie people
shoulu be able to uo it.
No knowleuge on BI¡RTBI
No knowleuge on BI¡RTBI. Bas also just iecently gaineu knowleuge on the LEAN piocess, as his team has not been a big
pait of that uuiing the beginning.
No knowleuge on BI¡RTBI. Leains a lot fiom the uiscussion gioup they have with LEAN.
Bas some knowleuge on BI, anu that it is about measuiing numbeis anu cieating analysis anu iepoits baseu on that.
Some knowleuge on BI¡RTBI, knows what it is, anu what it piimaiily uoes, but not specificly how they can benefit. When
askeu, has been unsuie if they have a uatawaiehouse oi not. I know what we want anu neeu, as a system, but now how
to builu it anu how it shoulu be implementeu techonologically.
Stuuy gioups anu meetings thioughout the oiganization eveiy week. Not all have knowleuge on BI, but eveiyone sees
the auvantages this system can give them.
79
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