ChangeManagementManagementissuesTypicalquestionsfacingmanagersrelatedtothistopic:Aretheretypicalresponsesofindividualstoorganizationalchangewhichcanbeanticipatedandcontrolled?Whatarethesuccessfactorsformanagingchangeassociatedwithmajorinformationmanagementimplementations?LearningoutcomesAfterreadingthischapter,youwillbeableto:Identifymodelsofresponsetochangeassociatedwithinformationmanagementinitiatives.Assessthesuitabilityofresponsestoorganizationalchangeassociatedwiththeintroductionofnewinformationmanagementapproaches.ChangemanagementApproachestomanagingchangestoorganizationalprocesses,structuresandtheirimpactonorganizationalstaffandcultureisknownaschangemanagement.Approachestomanagingchangeassociatedwithinformationmanagementinitiatives

isthesubjectofthischapter.Thehighfailureratesforinformationsystemsprojectsareoftenaconsequenceofmanagers’neglectofhowuserswillreacttonewwaysofworking.Theneedtomanagechangeappliesnotonlytonewinformationsystems,butiscriticallyimportanttoallbusinessinformationmanagementinitiatives,whetheritistheintroductionofanewenterpriseresourceplanningsystem,anintranetfacilityforknowledgemanagement,conductinganinformationauditorimplementationofapolicytoimprovedataquality.Typesofchange Incrementalchange Relativelysmalladjustmentsrequiredbyanorganizationinresponsetotheirbusinessenvironment

Discontinuouschange

Changeinvolvingamajortransformationinanindustry

organizationalchange

Includesbothincrementalanddiscontinuouschangetoorganizations

Anticipatorychange Anorganizationinitiateschangewithoutanimmediateneedtorespond Reactivechange Adirectresponsebyanorganizationtoachangeinanorganization’senvironmentCharacterisationoforganizationalchangeFigure8.1CharacterizationoforganizationalchangeSource:Nadleretal.(1995)FourkeytypesoforganizationalchangeTuning.Thisisanincrementalformofchangewhenthereisnoimmediateneedforchange.Itcanbecategorisedas‘doingthingsbetter’.Newproceduresorpoliciesmaybeusedtoimproveprocessefficiencyi.e.toreducetimetomarketorreducecostsofdoingbusiness.2. Adaptation.Alsoanincrementalformofchange,butinthiscaseitisinresponsetoanexternalthreatoropportunity.Itcanalsobecategorisedas‘doingthingsbetter’.Forexample,acompetitormayintroduceanewproductortheymaybeamergerbetweentworivals.Aresponseisrequired,butitdoesnotinvolveasignificantchangeinthebasisforcompetition.Fourkeytypesoforganizationalchange3.Re-orientation.Asignificantchangeortransformationtotheorganizationisinitiatedduetodiscontinuouschange.Thereisnotanimmediateneedforchange,butthechangeisinanticipationtochange.4.Re-creation.Inre-creation,theseniormanagementteamofanorganizationdecidesthatafundamentalchangetothewayitoperatesisrequiredtocompeteeffectively.Bothre-orientationandre-creationcanbecategorisedas‘doingthingsdifferently’.

BusinessProcessManagement(BPM) BusinessProcessManagement

Anapproachsupportedbysoftwaretoolsintendedtoincreaseprocessefficiencybyimprovinginformationflowsbetweenpeopleastheyperformbusinesstasks. TheBPMconcepthasbeendefinedbyGartner(2003)asfollows:‘BPMisamethodology,aswellacollectionoftoolsthatenablesenterprisestospecifystep-by-stepbusinessprocesses.ProperanalysisanddesignofBPMflowsrequireastrongunderstandingoftheatomicbusinessstepsthatmustbeperformedtocompleteabusinessprocess.AsBPMexecutesabusinessprocess,theseatomicstepswilloftencorrespondtowell-knownbusinessactivities,suchascheckingcreditratings,updatingcustomeraccountsandcheckinginventorystatus.Ineffect,theBPMprocessflowisoftenjustasequenceofwell-knownservices,executedinacoordinatedfashion.’‘Classicdocumentworkflow,whichwasBPM'spredecessor,focusedonhumansperformingtheservices.Fuelledbythepowerofapplicationintegration,BPMfocusesonhumanandautomatedagentsdoingtheworktodelivertheservices.’BusinessProcessRe-engineering(BPR) HammerandChampy(1993)definedBPRas: ‘thefundamentalrethinkingandradicalredesignofbusinessprocessestoachievedramaticimprovementsincritical,contemporarymeasuresofperformance,suchascost,quality,service,andspeed.’

ImpactofprocessinnovationWillcocksandSmith(1995)characterisethetypicalchangesthatariseinanorganizationwithprocessinnovationas:workunitschangingfromfunctionaldepartmentstoprocessteams;jobschangingfromsimpletaskstomulti-dimensionalwork;people’sroleschangingfromcontrolledtoempowered;focusofperformancechangingfromactivitiestoresults;valueschangingfromprotectivetoproductive.

DifferentscalesofchangeTermInvolvesIntentionRiskoffailureBusinessprocessre-engineeringFundamentalredesignofallmaincompanyprocessesthroughorganization-wideinitiatives.Largegainsinperformance(>100%?)HighestBusinessprocessimprovementTargetskeyprocessesinsequenceforredesign(<50%)MediumBusinessprocessautomationAutomatingexistingprocessOftenusesworkflowsoftware(Chapter2)(<20%)LowestKurtLewin’schangemodel1.Unfreezeorunlockfromthepresentpositionorbehaviourbycreatingaclimateofchangethrougheducation,trainingandmotivationoffutureparticipants.2.Movequicklyfromthepresentstatetothenewstatebydevelopingandimplementingthenewwayofworking.3.Refreezebymakingthesystemanacceptedpartofthewaytheorganizationworks.Transitioncurveindicatingthereactionof

staffthroughtimeFigure8.2Transitioncurveindicatingthereactionofstaffthroughtime

Source:BIMCommonresponsestochangeAggression–inwhichtheremaybephysicalsabotageofthesystem,deliberateentryoferroneousdataorabuseofsystemsstaff.Projection–wherethesystemiswronglyblamedfordifficultiesencounteredwhileusingit.Avoidance–withdrawalfromoravoidanceofinteractionwiththesystem;non-inputofdata;reportsandenquiriesignoredoruseofmanualsubstitutesforthesystem.Criticism–Concernsaboutthesystemareactivelyvoiced,althoughtheymaynotbejustified.Culture–Schein’sviewAssumptionsaretheinvisiblecoreelementsofanorganization’sculturesuchasasharedcollectivevisionwithinanorganization.Valuesarepreferencesthatguidebehavioursuchasattitudestowardsdresscodesandpunctualitywithinanorganizationorethicswithinasociety.Artefactsaretangiblematerialelementsofculturalelements.Thesewillbeidentifiablefromthelanguageusedinthepolicies,proceduresandacronymsoftheorganization,andthespokenwordanddialectsofthesociety.FourtypesofculturalorientationSurvival(outward-looking,flexible)–theexternalenvironmentplaysasignificantrole(anopensystem)indeterminingcompanystrategy.Thecompanywilllikelybedrivenbycustomerdemandsandwillbeaninnovator.Itmayhavearelativelyflatstructure.Productivity(outward-looking,ordered)–interfaceswiththeexternalenvironmentarewellstructuredandthecompanyistypicallysales-drivenandislikelytohaveahierarchicalstructure.Humanrelations(inward-looking,flexible)–thisistheorganizationasfamily,withinterpersonalrelationsmoreimportantthanreportingchannels,aflatterstructureandstaffdevelopmentandempowermentbeingthoughtofimportantbymanagers.Stability(inward-looking,ordered)–theenvironmentisessentiallyignoredwithmanagersconcentratingoninternalefficiencyandagainmanagedthroughahierarchicalstructure.Hayes4phasechangemodel1.Initialorientation.2.Preparation.3.Changeimplementation.4.Asupportivephase.Changestrategies1TransitionphaseTypicalactionsby

changemanagersImplicationsforinformationmanagementapplications1.Shock/awarenessCreateaclimateofreceptivitytochange.Announcementsufficientlyinadvanceininvolvingseniormanagers.Pre-announcementandinvolvementarereadilypracticableforinformationmanagement.Announcementandownershipbyaseniormanagerisstillimportant,evenifprojectisnotofstrategicimportance.2.DenialDiagnosisofthereasonfordenialisimportant.Gentlysupportthestaffthroughdenial.Repeatmessageofreasonforchangeandjustify.Findwaystogetstaffinvolvedinchangeearly.Involvementistypicallyarequirementofinformationmanagementprojects,sothisisusuallypracticalforsomestaff,forotherscommunicationofthebenefitsandprogressoftheprojectandtheimplicationsforthemshouldbeconsidered.3.DepressionProvidingsupportandlisteningarerequiredatthisstageratherthanignoringcomplaints.Thisstagetendsnottobemarkedforinformationmanagement-relatedchangeprojects.4.LettinggoContinuedexplanationofthebenefitsofthenewsystemwithoutdenigratingthepastapproach.Settingtargetsassociatedwiththenewsystem.Aroundthisstageprototypesofthenewsystemwillbeavailablewhichwillhelpwiththeprocessoflettinggosincetangibleevidenceofthenewsystemandhopefully,itsbenefitswillbeavailable.Changestrategies2TransitionphaseTypicalactionsby

changemanagersImplicationsforinformationmanagementapplications5.TestingTestingisencouragedbyencouragingexperimentationwithoutblamewhereproblemsoccur.Testingcorrespondstothetestingphaseofthesystemoradoptionofthenewsystemdependentoninvolvement.Positiveornegativefeedbackonthenewsystemshouldbeencouraged,discussedandacteduponwhereappropriate.6.ConsolidationThisisfacilitatedbyreviewingperformanceandlearningandrecognizing,rewardingandcommunicatingbenefits.Improvementsachievedthroughthesystemshouldbeassessedandcommunicated.7.ReflectionandlearningThisisachievedthroughstructuredlearningaboutthechangethroughreviewsandencouragingunstructuredlearningsuchasfeedbackaboutthesystem.Post-implementationreviewscanoccuratthisstage.Theuseofastructuredsystemtologproblemswiththesystemorprocesscanalsohelp.3keystakeholdertypesSystemsponsorsarethebackersofthesystemorchangeinapproach.Theytendtobeseniormanagerswhoseroleistobebudgetholdersforthechangeinitiativeorresponsibleforasuccessfuloutcomeorboth.Theyarecommittedtothechangeandwanttoachievesuccess.Thesponsorswilltrytofireupstaffwiththeirenthusiasmandstresswhyintroducingtheapproachisimportanttothebusinessanditsworkers.Systemowners

aredepartmentalorprocessmanagersintheorganizationwhowillusethesystemtosupporttheirareasofthebusiness.Foranenterprisesystemtherecouldbeseveralsystemowners,forexampleamarketingdirectorcouldberesponsiblefortheCRMcomponentofanE-businesssystemwhiletheoperationsdirectorisresponsibleforthesupplychainmanagementpartofthesystem.Systemusers.Thesearestaffinthedifferentareasofthebusinesswhoareactivelyinvolvedinusingthesystemtosupporttheirday-to-daywork.Thiscouldbeabuyerinprocurement,aproductionlinemanagerinafactoryoranaccountantinthefinancedepartment.TypesofsystemusersLegitimizerswho

supporttheneedforthesystemandarerespectedsincetheyareexperiencedintheirjob,regardedastheexpertsbyfellowworkersorsimplypopular.Opinionleaderswhomotherswatchtoseewhethertheyacceptnewideasandchanges.Theyusuallyhavelittleformalpower,butareoften(butnotalways)regardedasgoodideaspeoplewhoarereceptivetochange.Ifsuchpeoplearecriticalofthesystemthenthiscanspreadresistancetochange.Followers.Leadershipqualities Theneedforseniormanagementinvolvementisacommonthemeindiscussionofsuccessfactorsforchangemanagement.Forexample,Schein(1992)concludedthatthreevariablesarecriticaltothesuccessofanylarge-scaleorganizationalchange:1. Thedegreetowhichtheleaderscanbreakfrompreviouswaysofworking.2. Thesignificanceandcomprehensivenessofthechange.3.

Theextenttowhichtheheadoftheorganizationisactivelyinvolvedinthechangeprocess.KotteronleadershipArticulatingthevisioninwaysthatareunderstandablebythepeopleaffectedbychange(hesaysthisisoften‘undercommunicatedbyafactorof10(or100oreven1,000)’);Involvingpeopleindecidinghowtoachievethemanagementvision,therebygivingthemsomesenseofcontrol;Supportingpeopletoachievethevisionbybeingarolemodelandprovidingcoachingandfeedback;Providingfocusbyidentifyingshort-termwins;Recognisingandrewardingsuccess.E-commercechangeapproaches CopeandWaddell(2001)haveassessedtheroleofleadershipstyleine-commerceimplementations.Theyassessedthemostcommonapproachestoe-commerceimplementation,distinguishingbetweentheseapproaches:Collaborative–widespreadparticipationofemployeesoccurstodefinethechangesrequiredandtechniquestoachievethem.Consultative–managementtakesthefinaldecision,aftercallingonsomeemployeesforinput.Directive–Themanagementteamtakesthedecisionswiththeemployeesgenerallytrustingthemtodosoandgenerallyinformed.Coercive–themanagementteamtakesthedecisionwithverylimitedrecoursetoemployees.Kotter’s8successfactorsforchange1.Establishasenseofurgency.2.Formapowerfulcoalition(achangeteam).3.Createavisionwhichisimaginable,desirable,feasible,focused,flexible,communicable.4.Communicatethevision.5.Empowerotherstoactonthevision.6.Planforandcreateshorttermwins.7.Consolidatethechangeandproducemorechange.8.Institutionalizenewapproachesbydemonstratingthebenefits.Leadershipinaction–JackWelchofGE,c2001‘LastyearItoldyouIbelievede-Businesswasneither"oldeconomy"nor"neweconomy,"butsimplynewtechnology.I’mmoresureofthattoday.Ifweneededconfirmationthatthistechnologywasmadeforus,wegotit.GEwasnamedlastyear"e-BusinessoftheYear"byInternetWeekmagazineandawardedthesametitlelastweekbyWORTHmagazine.’‘Digitizationis,infact,agamechangerforGE.And,withcompetitioncuttingbackbecauseoftheeconomy,thisisthetimeforGEtowidenthedigitalgap,tofurtherimproveourcompetitiveposition.Wewilldothatbyincreasingourspendingoninformationtechnologyby10%to15%thisyeardespitetheweakeconomy.’KotterandSchlesinger6methodsof

participationandinvolvementThesixmethodsare:1.Educationandpersuasion.2.Participationandinvolvement.3.Facilitationandsupport.4.Negotiationandagreement.5.Manipulationandco-option.6.Directionandarelianceonexplicitandimplicitcoercion.Characteristicsofcommunications

formanagingchangeHayesrecommendsthatfourcharacteristicsofcommunicationshouldbereviewedaspartofemployeemotivation:1.Directionality.Wehavealreadysuggestedthatitisimportantthatcommunicationisatwo-wayprocess.Furthermore,thereisadangerinlargeorganizations,whereinformationisfilteredwhenitispassedfromtoptobottom,orbottomtotopthatthefinalrecipientsmaynotreceivealltheinformationtheyneed.2.Role.Wesawinaprevioussectionthatsometypesofemployeesuchaslegitimisersandopinionleadershaveagreatcapacitytoinfluence.Itisimportantthattheyareidentifiedandinvolvedactivelyatallstagesofthechangeprocess.3.Content.Theinformationitselftransmittedincommunication,isofcourse,keytoeffectivecommunication.Sufficientdetailmustbecontainedwithcommunicationstojustifychange,butatthesametime,themessageshouldbekeptstraightforwardandclear.4.Channel.Informationonchangecanbedeliveredverbally,viapapermemos,e-mail,phoneorevenmobiletextmessages.Choosingtheappropriaterangeofchannelsiskeyhere.SummaryofemployeemotivationtechniquesArangeoftechniquescanbedeployedandthesemustcarefullybalancetheneedforthe‘carrotandthestick’.Theliteraturestressestheneedfortwowaycommunicationanddialogueusingarangeofdifferentcommunicationchannels.Staffmotivationisdependentonorganizationcultureandexistingjobcharacteristics.Itmaybedifficulttomodifytheseunderlyingdriversofemployeesatisfactionduringanindividualchangeproject.Forinformationmanagementprojectsitisimportantthateducationisnotlimitedtotraininghowtousethenewsystems,butalsoexplainingthereasonsfortheirintroductionandtheimplicationsfortheindividualandtheirteams.-Corporateinformationportals–whatarethey?Corporateinformationportalorganizationalinformationresourcesaremadeaccessibleviaanintranetusingstructuredandnon-structuredapproachesBenefits:1.Improvedinformationsharing2.Enhancedcommunicationsandinformationsharing(communications)3.Increasedconsistencyofinformation4.Increasedaccuracyofinformation5.Reducedoreliminatedprocessing6.EasierorganizationalpublishingApproachestomanagingchange1.‘Coverallyourbases’.Thisreferstousingacross-disciplineprojectteam2.Avoidgeneralisation.Contentshouldbethemedforparticulartypesofemployees,notanaverageemployee.Itisrecommendedthatthesystemhasaphasedimplementationforone‘community’atatimesuchasfinance,salesorHR.3.Keepcurrent.McFarland(2001)says:‘Intranetsbuckleundertheburdenofuseless,outdatedinformation’.Sherecommendsusingsoftwarethatusesautomaticcontentexpirationdatesthatautomaticallyremovecontentwhenitisnolongerapplicable.Anotherapproachistomakeindividualsresponsibleforparticulartypesofcontent.4.Measurement.Reviewwebanalyticsandconductsurveyswithemployees.AcorporateportalusedintheNasa

JetPropulsionLaboratoryFigure8.3AcorporateportalusedintheNasaJetPropulsionLaboratorySource:NasaJetPropulsionLaboratoryManagementTeam()Sell-sidee-commerce–whatisit?WesawinChapter2,thatsell-sidee-commercereferstoe-commercetransactionsbetweenasupplierorganizationanditscustomerswhomaybeotherbusinesses(B2B)orconsumers(B2C).Wesawthatthesetransactionsmaybefinanciali.e.whenasaleoccurs,buttheymayalsobeinformationalsuchasinformationrequestsorsupportenquiries.Sell-sidee-commerceE-commercetransactionsbetweenasupplierorganizationanditscustomerspossiblythroughintermediariesSell-sidee-commercebenefitsTangiblebenefitsIntangiblebenefits

Increasedsalesfromnewsalesleadsgivingrisetoincreasedrevenuefrom:–newcustomers,newmarkets–existingcustomers(repeat-selling)–existingcustomers(cross-selling)

Marketingcostreductionsfrom:–reducedtimeincustomerservice–onlinesales–reducedprintinganddistributioncostsofmarketingcommunications

Addingvaluetoproductsthroughsupportinginformation,applicationsandcustomerservice

Corporateimagecommunication

Enhancebrand

Morerapid,moreresponsivemarketingcommunicationsincludingPR

Fasterproductdevelopmentlifecycleenablingfasterresponsetomarketneeds

Learningforthefuture

Meetingcustomerexpectationstohaveawebsite

Identifynewchannelpartners,supportexistingpartnersbetter

Bettermanagementofmarketinginformationandcustomerinformation

FeedbackfromcustomersonproductsSell-sidee-commercechangeissuesTheproblemsofchangemanagementforsell-sidee-commercearesimilartothoseofcorporateportalsandintranets,butthistime,itisanexternalaudiencethatmustbeinfluencedtoencourageachangeinbehaviourfrompreviouswaysofworkingtonewwaysofworking.Thereisasimilarproblemofencouragingcontinuedusageandparticipationintheuseofonlineinformationresourcesandapplications.Whensell-sidee-commercesystemsareintroducedintoacompanytherearealsoproblemsofconflictwithotherpartieswhoalsocommunicatewithcustomers.Forinstance,salesrepresentativesanddistributorsmayfeeltheirroleisbeingusurped.Customer-servicestaffincontactcentresalsohavetobetrainedtomanageenquiriesfromcustomersfromarangeofchannels.However,inthiscoverageweconcentrateoninfluencingthecustomers,whichisadifferenttypeofchangemanagementtotheemployeerelatedchangemanagementissuescoveredbyotherexamplesinthischapter.ApproachestomanagingchangeResearchbarrierstochangeandfacilitatorsofchangeDefineeffectiveonlinevaluepropositionCommunicatepropositionAccommodatechannelresistanceSurveyresultsforbrowsingandpurchasingfromtheInternetinEuropeFigure8.4SurveyresultsforbrowsingandpurchasingfromtheInternetinEuropeSource:EuropeanInteractiveAdvertisingAssociation(2004)BarrierstodevelopmentofonlinetechnologiesFigure8.5BarrierstodevelopmentofonlinetechnologiesSource:DTI(2002)RSComponentstransactionalwebsiteFigure8.6RSComponentstransactionalwebsite

Source:

CRM–Whatisit?Customerrelationshipmanagement(CRM)systemswereintroducedinChapter2.Customerrelationshipmanagementsystemsareusedtosupportthemarketinganddeliveryofservicestocustomers.InthecontextofTheLo-costAirlineCompany,aCRMsystemwouldincludetoolsforhelpingcustomersselectthebestflight,purchasingtickets,answeringpre-flightqueriesandsupportinanypost-flightqueriessuchasproblemswithbaggage.ACRMsystemmayalsobeusedformarketingrelevant,personalisedoffersdirecttocustomersthroughdirectmail(post)ore-mail.

MaincomponentsofatypicalCRMSystemFigure8.7MaincomponentsofatypicalCRMSystemSource:Siebel(2002)CRMcapabilitiesandbenefitsEffectivecustomersegmentation–organizationscanmarketto,sell-toandservecustomersmoreeffectivelybytargetingtheiruniqueneedsandpreferencesandunderstandingtheirrelativevalue.Customersaregroupedaccordingtotheirneedsandvalueanddifferentofferingsdeliveredtoeach.CRMalsoenablesmarketingcommunicationstobetailoredonanindividuallevelaccordingtopastproductspurchased,forexamples.Integratedmulti-channelstrategy–Customersrequireservicestobedeliveredoverarangeofchannelssuchasphone,web,e-mail,face-to-faceorbymail.Thesechannelsallneedtodeliverthesameexperiencetothecustomerandfromthecompany’sperspectivesupporteachotherinachievingsalesandcustomersatisfaction.Well-definedintegratedcustomer-focusedbusinessprocesses.Therighttechnologyandinparticularaconsistent,up-to-datepictureofallinformationandcontactsrelatedtoacustomer(characteristicsandsales,service,campaigncontacts)sometimesreferredtoasasingleviewofthecustomer.

TypicalCRMbenefits?8%increaseinrevenue(throughbettertargetingofcustomersinmarketingcampaignsgivingagreaterresponse,sellingmoreproductstoexistingcustomers(up-sellingandcross-selling)andreducingcustomerattrition).?18%increaseinemployeeproductivity(customercontactscanbehandledmorerapidlysinceinformationisrapidlyprovidedandprocessespartlyautomated).?18%increaseincustomersatisfaction(thisagainarisessinceinformationismorereadilytohandandfulfillmentshouldbeimprovedi.e.thecustomerismorelikelytoreceivetheproductorservicetheyorderedon-time).Increasingcustomersatisfactionhasbeenshowntoreduceattrition/increasecustomerretention.?13%increaseincustomerretention(arisingfromincreasedsatisfactionandbettertargetedcommunications).?13%decreaseinoperatingcosts(resultingfromfewerstaffneededtoservecustomers/manageprocessesandbettertargetedcommunicationswithlesswastage).CRMchangemanagementissues ButlerGroupfound70percentofCRMimplementationsfail. AGartnerstudyfoundthat55percentofallCRMprojectsfailedtomeetcustomers'expectations. A2001Bain&Companysurveyof451seniorexecutives,foundthatCRMrankedinthebottomthreecategoriesamong25popularsoftwaretoolsevaluatedforcustomersatisfaction. However,ZDNet(2002)reportsonanothersurvey(notbyawell-knownITanalyst)thatshowedthat‘only35percentofCRMimplementations,whenconsideredovertheirentirelife,canbeconsideredfailures’.Itreportedthatincontrast,45percentofCRMimplementationswereproducingapayback.

CRM-6leversofchange1.Compensationandrewards.2.Boss’sbehaviour.3.Policiesandprocesses.4.Training.5.Communication.6.Organizationalstructure.

BI–Whatisit?Businessintelligence(BI)referstoacategoryofsoftwareorapproachtoinformationmanagementusedbymanagerstounderstandandimprovetheperformanceoftheirprocesses.Atitssimplest,BusinessIntelligencesoftwareisamoderntermforbusinessreportingsoftware.Thissoftwarecountersinformationoverloadtodeliverrelevant,timelyinformationtomanagers’desktopsandintotheirhands.Atitsmostcomplex,itofferssophisticatedanalysistoolsforidentifyingpatternsandrelationshipswithindata–anapproachknownasdatamining.Suchinformationtoolshavebeenpreviouslyknownasdecisionsupportsystems(DSS). Businessintelligence Softwareusedtoanalyseandimprovebusinessprocessesthroughtheprovisionofanalysisandreportingcapabilities

Datamining–whatisit?DataminingSoftwareisusedtoidentifyrelationshipswithindataitemsinadatabase Dataminingiscommonlyusedwithinmarketingapplications,marketing-relatedexamplesofdataminingtechniquesinclude:Identifyingassociations–ashoppingbasketanalysisbyachemistrevealedanassociationofshopperswhopurchasecondomsandfootpowder.Itisnotclearhowthisinformationcanbeused!Identifyingsequences–showsthesequenceinwhichactionstakenbycustomersoccure.g.pathorclickstreamanalysisofawebsite.Classifications–patternse.g.identifyinggroupsofwebsiteuserswhodisplaysimilarvisitorpatterns.Clustering–findinggroupsoff