Supply chain management is the handling of the entire production flow of goods

or services—starting from the raw components to delivering the final product to

consumers. A company creates a network of suppliers that move the product
from raw materials suppliers to organizations that deal directly with users.
Supply chain management (SCM) is the monitoring and optimization of the
production and distribution of a company’s products and services. It seeks to
improve and make more efficient all processes involved in turning raw
materials and components into final products and getting them to the ultimate
customer. Effective SCM can help streamline a company's activities to
eliminate waste, maximize customer value, and gain a competitive advantage in
the marketplace.

 Supply chain management (SCM) is the centralized management of the

flow of goods and services to and from a company and includes all of the
processes involved in transforming raw materials and components into
final products.
 With SCM, companies can cut excess costs and deliver products to the
consumer faster and more efficiently.
 Good SCM can help prevent expensive product recalls and lawsuits as
well as bad publicity.
 The five most critical phases of SCM are planning, sourcing, production,
distribution, and returns.
 A supply chain manager is tasked with controlling and reducing costs
and avoiding supply shortages.

How Supply Chain Management (SCM) Works

SCM represents an ongoing effort by companies to make their supply chains as

efficient and economical as possible.

Typically, SCM attempts to centrally control or link the production, shipment,

and distribution of a product. By managing the supply chain, companies can cut
excess costs and needless steps and deliver products to the consumer faster.
This is done by keeping tighter control of internal inventories, internal
production, distribution, sales, and the inventories of company vendors.

SCM is based on the idea that nearly every product that comes to market does
so as the result of efforts by multiple organizations that make up a supply
chain. Although supply chains have existed for ages, a lot of companies didn't
pay attention to them as a value-add to their operations until recently.
5 Phases of Supply Chain Management (SCM)

A supply chain manager's job is not only about traditional logistics and
purchasing. They have to find ways to increase efficiency and keep costs down
while also avoiding shortages and preparing for unexpected contingencies.
Typically, the SCM process consists of these five phases:

1. Planning
To get the best results from SCM, the process usually begins with planning to
match supply with customer and manufacturing demands. Companies must try
to predict what their future needs will be and act accordingly. That means
taking into account the raw materials or components needed during each stage
of manufacturing, equipment capacity and limitations, and staffing needs.

Large businesses often rely on enterprise resource planning (ERP) software to

help coordinate the process.

2. Sourcing
Effective SCM processes rely very heavily on strong relationships with
suppliers. Sourcing entails working with vendors to supply the materials
needed throughout the manufacturing process. Different industries will have
different sourcing requirements. In general, SCM sourcing involves ensuring
that:

 The raw materials or components meet the manufacturing specifications

needed for the production of the goods.
 The prices paid to the vendor are in line with market expectations.
 The vendor has the flexibility to deliver emergency materials due to
unforeseen events.
 The vendor has a proven record of delivering goods on time and of good
quality.

SCM is especially critical when manufacturers are working with perishable

goods.

When sourcing goods, companies should be mindful of lead times and how
well equipped a supplier is to meet their needs.

3. Manufacturing
Using machinery and labor to transform the raw materials or components the
company has received from its suppliers into something new is the heart of the
supply chain management process. This final product is the ultimate goal of the
manufacturing process, though it is not the final stage of SCM.
The manufacturing process may be further divided into sub-tasks such as
assembly, testing, inspection, and packaging. During the manufacturing
process, companies must be mindful of waste or other factors that may cause
deviations from their original plans. For example, if a company is using more
raw materials than planned and sourced for due to inadequate employee
training, it must rectify the issue or revisit the earlier stages in SCM.

4. Delivery
Once products are made and sales are finalized, a company must get those
products into the hands of its customers. A company with effective SCM will
have robust logistic capabilities and delivery channels to ensure timely, safe,
and inexpensive delivery of its products.

This includes having a backup or diversified distribution methods should one

method of transportation temporarily be unusable. For example, how might a
company's delivery process be impacted by record snowfall in distribution
center areas?

5. Returns
The SCM process concludes with support for the product and customer returns.

The return process is often called reverse logistics, and the company must
ensure it has the capabilities to receive returned products and correctly assign
refunds for them. Whether a company is conducting a product recall or a
customer is simply not satisfied with the product, the transaction with the
customer must be remedied.

Returns can also be a valuable form of feedback, helping the company to

identify defective or poorly designed products and to make whatever changes
are necessary. Without addressing the underlying cause of a customer return,
the SCM process will have failed, and returns will likely persist into the future.

Example of Supply Chain Management (SCM)

Understanding the importance of SCM to its business, Walgreens Boots

Alliance Inc. decided to transform its supply chain by investing in technology
to streamline the entire process. That included using big data, collected from its
9,000 stores and 20,000 suppliers, to help improve its forecasting capabilities
and better manage sales and inventory.1 In 2019, it appointed its first-ever
chief supply chain officer.2
Walgreens Boots Alliance also incorporated SCM into its environmental,
social, and governance (ESG) initiatives. For example, the company began
asking suppliers to fill in an online survey that asks questions about their ESG
practices, such as whether they have an emissions reduction target in place and
the types of materials they use.34

Why Is Supply Chain Management Important?

Supply chain management is important because it can help achieve several

business objectives. For instance, controlling manufacturing processes can
improve product quality, reducing the risk of recalls and lawsuits while helping
to build a strong consumer brand. At the same time, control over shipping
procedures can improve customer service by avoiding costly shortages or
periods of inventory oversupply. Overall, supply chain management provides
multiple opportunities for companies to improve their profit margins and is
especially important for businesses with large and international operations.
Product lifecycle management (PLM) refers to the handling of a good as it
moves through the typical stages of its product life: development and
introduction, growth, maturity/stability, and decline.

This handling involves both the manufacturing of the good and the marketing
of it. The concept of product life cycle helps inform business decision-making,
from pricing and promotion to expansion or cost-cutting.

KEY TAKEAWAYS

 Product lifecycle management (PLM) handles a firm's approach to the

various phases of a product's development through to its ultimate
decline.
 Product lifecycle management involves all stages, including the
development and manufacturing of a product, to its marketing and
customer segmentation.
 The main benefits of project lifecycle management include shortening
product development times, knowing when to ramp up or reduce
manufacturing efforts, and how to focus marketing efforts.
 Product lifecycle management is tied to product development
management, supply chain management, and sales/marketing sales
strategies.
 The future of product lifecycle management is filled with innovations
associated with technological advancements, improved communications,
and environmental sustainability.

Understanding Product Lifecycle Management (PLM)

Effective product life cycle management brings together the many companies,
departments, and employees involved with the product's production to
streamline their activities, with the ultimate goal of producing a product that
outperforms its competitors, is highly profitable, and lasts as long as consumer
demand and technology permit. It goes well beyond just setting up a bill of
materials (BOM).

PLM systems help organizations cope with the increasing complexity and
engineering challenges of developing new products. They can be considered
one of the four cornerstones of a manufacturing corporation's information
technology structure, the others being the management of communications with
their clients (customer relationship management [CRM] ), their dealings with
suppliers (supply chain management [SCM]), and their resources within the
enterprise (enterprise resource planning [ERP]).
Identifying which stage of its life cycle a product is in determines how it will
be marketed. A new product (one in the introduction stage), for example, needs
to be explained, while a mature product needs to be differentiated. PLM can
affect more fundamental elements of a product, too. Even after it reaches
maturity, a product can still grow—especially if it is updated or augmented in
some way.

Specific Stages of a Product

Companies may categorize each stage of a product differently. However, in

general, there are several distinct stages across the product lifecycle that almost
all products experience.

Concept Stage
The concept stage involves the initial ideas and planning for a new product.
This includes market research, identifying customer needs, and determining the
feasibility of the product. Often led by the research and development
departments, this stage kicks off the product lifecycle as it is where the ideas
are generated.

Design Stage
In the design stage, the product is planned, developed and tested. This involves
creating product prototypes, refining the design and ensuring that it meets all
regulatory and safety requirements. Again, companies often must commit
research and development costs in this design stage as something that has never
existed before must be created and tested.

Production Stage
If the company feels confident in its product and feels there is a market for the
product, the product goes to the production stage. This stage involves the
manufacture of the product including sourcing raw materials, assembling
components, and testing the final product. At this point, the company should
have a fully-fleshed out product and should not be continually tweaking the
design.

Sales Stage
Now that the product is made, it moves to the sales stage. This stage involves
promoting and selling the product to customers. This includes advertising, sales
promotions, and pricing strategies. In many cases, the sales stage and
production stage occur concurrently as a company must try to forecast how
many sales will occur (and thus need to be manufactured).
Support Stage
The support stage involves providing ongoing support to customers after they
have purchased the product. This includes customer service, warranties, and
repairs. This may also relate to ongoing trainings or services provided to new
owners to better enhance their user experience (i.e. tutorials on how to use their
new technology).

Retirement Stage
Whether competitors have delivered a better product or the product is simply
no longer demanded by the market, the product lifecycle ends with the product
being retired. This stage involves the end-of-life of the product, including
disposal, recycling or re-purposing of the good. In many cases, successful
products will be simply enhanced through future iterations (i.e. consider each
generation of the iPhone).

Benefits of Product Lifecycle Management

Sound product lifecycle management has many benefits such as getting the
product to market faster, putting a higher quality product on the market,
improving product safety, increasing sales opportunities, and reducing errors
and waste. Specialized computer software is available to assist with
PLM through functions such as document management, design integration, and
process management.

Product lifecycle management strives to improve product quality and

reliability. Companies may need to spend less on prototyping due to a clearer
structure of planning and innovating. This also leads to potentially more
accurate and timely requests for quotes (RFQ).

Companies that are intentionally during the retirement stage may be able to
incur savings due to the reuse of information. This also means companies can
plan ahead and minimize waste or reduce material costs due to a greater
understanding of what phase each product of theirs is currently in.

Elements of Product Lifecycle Management

Product lifecycle management requires extensive collaboration between

departments across the entire life of a product.

Product lifecycle management often begins with product data management

(PDM). PDM is the management of all product-related data such as designs,
specifications, bills of materials, and engineering change orders. This
streamlined process allows different departments to more seamlessly
collaborate as a product goes from one stage to the next.
This process also often requires a product product design repository. This
database of information involves the creation of new products, ideas, designs,
prototypes, and what tests have been performed on each one of them.

Because different goods must flow in from different suppliers across the entire
lifecycle, product lifecycle management is also often closely related to supply
chain management. This ensures that, regardless of what stage a product is in,
the company is able to procure, plan, gather, and distribute resources.

Last, there are many elements to consider as products are used and enter the
later stages of its life. Sales and marketing departments must collaborate
heavily to devise appropriate promotion and selling strategies. This may also
coincide with service and support offerings, especially as the company
transitions away from a product or offers end-of-life incentives as part of sales.
This may also include recycling or redistribution services for items to be
disposed of with consideration.
Data warehouse overview
A data warehouse (DW) is a digital storage system that connects and
harmonises large amounts of data from many different sources. Its purpose is to
feed business intelligence (BI), reporting, and analytics, and support regulatory
requirements – so companies can turn their data into insight and make smart,
data-driven decisions. Data warehouses store current and historical data in one
place and act as the single source of truth for an organisation.

Data flows into a data warehouse from operational systems

(like ERP and CRM), databases, and external sources such as partner systems,
Internet of Things (IoT) devices, weather apps, and social media – usually on a
regular cadence. The emergence of cloud computing has caused a shift in the
landscape. In recent years, data storage locations have moved away from
traditional on-premise infrastructure to multiple locations, including on premise,
private cloud, and public cloud.

Modern data warehouses are designed to handle both structured and

unstructured data, like videos, image files, and sensor data. Some leverage
integrated analytics and in-memory database technology (which holds the data
set in computer memory rather than in disk storage) to provide real-time access
to trusted data and drive confident decision-making. Without data warehousing,
it’s very difficult to combine data from heterogeneous sources, ensure it’s in the
right format for analytics, and get both a current and long-range view of data
over time.
What are the key components of a data warehouse?
A typical data warehouse has four main components: a central database, ETL
(extract, transform, load) tools, metadata, and access tools. All of these
components are engineered for speed so that you can get results quickly and
analyse data on the fly
Diagram showing the components of a data warehouse.

1. Central database: A database serves as the

foundation of your data warehouse.
Traditionally, these have been standard
relational databases running on premise or in
the cloud. But because of Big Data, the need
for true, real-time performance, and a drastic
reduction in the cost of RAM, in-memory
databases are rapidly gaining in popularity.
2. Data integration: Data is pulled from source
systems and modified to align the information
for rapid analytical consumption using a
variety of data integration approaches such as
ETL (extract, transform, load) and ELT as
well as real-time data replication, bulk-load
processing, data transformation, and data
quality and enrichment services.
3. Metadata: Metadata is data about your data.
It specifies the source, usage, values, and
other features of the data sets in your data
warehouse. There is business metadata, which
 adds context to your data, and technical
metadata, which describes how to access data
– including where it resides and how it is
structured.
4. Data warehouse access tools: Access tools
allow users to interact with the data in your
data warehouse. Examples of access tools
include: query and reporting tools, application
development tools, data mining tools, and
OLAP tools.
Data warehouse architecture
In the past, data warehouses operated in layers that matched the flow of the
business data.

Diagram of data warehouse architecture. A typical data warehouse includes the

three separate layers above. Today, modern data warehouses combine OLTP
and OLAP in a single system.

 Data layer: Data is extracted from your

sources and then transformed and loaded into
the bottom tier using ETL tools. The bottom
tier consists of your database server, data
marts, and data lakes. Metadata is created in
this tier – and data integration tools, like data
virtualisation, are used to seamlessly combine
and aggregate data.
 Semantics layer: In the middle tier, online
analytical processing (OLAP) and online
transactional processing (OLTP) servers
restructure the data for fast, complex queries
and analytics.
 Analytics layer: The top tier is the front-end
client layer. It holds the data warehouse
access tools that let users interact with data,
create dashboards and reports, monitor KPIs,
mine and analyse data, build apps, and more.
This tier often includes a workbench or
sandbox area for data exploration and new
data model development.
Data warehouses have been designed to support decision making and have been
primarily built and maintained by IT teams, but over the past few years they
have evolved to empower business users – reducing their reliance on IT to get
access to the data and derive actionable insights. A few key data warehousing
capabilities that have empowered business users are:

1. The semantic or business layer that provides

natural language phrases and allows everyone
to instantly understand data, define
relationships between elements in the data
model, and enrich data fields with new
business information.
2. Virtual workspaces allow teams to bring data
models and connections into one secured and
governed place supporting better collaborating
with colleagues through one common space
and one common data set.
3. Cloud has further improved decision making
by globally empowering employees with a
rich set of tools and features to easily perform
data analysis tasks. They can connect new
apps and data sources without much IT
support.

Benefits of a data warehouse

A data warehouse provides a foundation for the following:

 Better data quality: A data warehouse centralizes data from a variety of

data sources, such as transactional systems, operational databases, and
flat files. It then cleanses the operational data, eliminates duplicates, and
standardizes it to create a single source of the truth.

 Faster, business insights: Data from disparate sources limit the ability of
decision makers to set business strategies with confidence. Data
warehouses enable data integration, allowing business users to leverage
all of a company’s data into each business decision. Data warehouse data
makes it possible to report on themes, trends, aggregations, and other
relationships among data collected from an engineering lifecycle
management (ELM) app.

 Smarter decision-making: A data warehouse supports large-scale BI

functions such as data mining (finding unseen patterns and relationships
in data), artificial intelligence, and machine learning—tools data
professionals and business leaders can use to get hard evidence for
 making smarter decisions in virtually every area of the organization, from
business processes to financial management and inventory management.

 Gaining and growing competitive advantage: All of the above combine

to help an organization finding more opportunities in data, more quickly
than is possible from disparate data stores.

What Is Data Mining?

Data mining is the process of searching and analyzing a large batch of raw data
in order to identify patterns and extract useful information.

Companies use data mining software to learn more about their customers. It
can help them to develop more effective marketing strategies, increase sales,
and decrease costs. Data mining relies on effective data
collection, warehousing, and computer processing.

KEY TAKEAWAYS

 Data mining is the process of analyzing a large batch of information to

discern trends and patterns.
 Data mining can be used by corporations for everything from learning
about what customers are interested in or want to buy to fraud detection
and spam filtering.
 Data mining programs break down patterns and connections in data
based on what information users request or provide.
 Social media companies use data mining techniques to commodify their
users in order to generate profit.
 This use of data mining has come under criticism as users are often
unaware of the data mining happening with their personal information,
especially when it is used to influence preferences.

How Data Mining Works

Data mining involves exploring and analyzing large blocks of information to

glean meaningful patterns and trends. It is used in credit risk
management, fraud detection, and spam filtering. It also is a market research
tool that helps reveal the sentiment or opinions of a given group of people. The
data mining process breaks down into four steps:
 1. Data is collected and loaded into data warehouses on site or on a cloud
service.
2. Business analysts, management teams, and information technology
professionals access the data and determine how they want to organize it.
3. Custom application software sorts and organizes the data.
4. The end user presents the data in an easy-to-share format, such as a
graph or table.

Advantages and Disadvantages of Data Mining

Pros of Data Mining

 It drives profitability and efficiency

 It can be applied to any type of data and business problem

 It can reveal hidden information and trends

Cons of Data Mining

 It is complex

 Results and benefits are not guaranteed

 It can be expensive

Pros Explained

 Profitability and efficiency: Data mining ensures a company is

collecting and analyzing reliable data. It is often a more rigid, structured
process that formally identifies a problem, gathers data related to the
problem, and strives to formulate a solution. Therefore, data mining
helps a business become more profitable, more efficient, or operationally
stronger.
 Wide applications: Data mining can look very different across
applications, but the overall process can be used with almost any new or
legacy application. Essentially any type of data can be gathered and
analyzed, and almost every business problem that relies on qualifiable
evidence can be tackled using data mining.
 Hidden information and trends: The end goal of data mining is to take
raw bits of information and determine if there is cohesion or correlation
among the data. This benefit of data mining allows a company to create
value with the information they have on hand that would otherwise not
be overly apparent. Though data models can be complex, they can also
 yield fascinating results, unearth hidden trends, and suggest unique
strategies.

Cons Explained

 Complexity: The complexity of data mining is one of its greatest

disadvantages. Data analytics often requires technical skill sets and
certain software tools. Smaller companies may find this to be a barrier of
entry too difficult to overcome.
 No guarantees: Data mining doesn't always mean guaranteed results. A
company may perform statistical analysis, make conclusions based on
strong data, implement changes, and not reap any benefits. This may be
due to inaccurate findings, market changes, model errors, or
inappropriate data populations. Data mining can only guide decisions
and not ensure outcomes.
 High cost: There is also a cost component to data mining. Data tools
may require costly subscriptions, and some data may be expensive to
obtain. Security and privacy concerns can be pacified, though additional
IT infrastructure may be costly as well. Data mining may also be most
effective when using huge data sets; however, these data sets must be
stored and require heavy computational power to analyze.

The Data Mining Process

To be most effective, data analysts generally follow a certain flow of tasks

along the data mining process. Without this structure, an analyst may encounter
an issue in the middle of their analysis that could have easily been prevented
had they prepared for it earlier. The data mining process is usually broken into
the following steps.

Step 1: Understand the Business

Before any data is touched, extracted, cleaned, or analyzed, it is important to
understand the underlying entity and the project at hand. What are the goals the
company is trying to achieve by mining data? What is their current business
situation? What are the findings of a SWOT analysis? Before looking at any
data, the mining process starts by understanding what will define success at the
end of the process.

Step 2: Understand the Data

Once the business problem has been clearly defined, it's time to start thinking
about data. This includes what sources are available, how they will be secured
and stored, how the information will be gathered, and what the final outcome
or analysis may look like. This step also includes determining the limits of the
data, storage, security, and collection and assesses how these constraints will
affect the data mining process.

Step 3: Prepare the Data

Data is gathered, uploaded, extracted, or calculated. It is then cleaned,
standardized, scrubbed for outliers, assessed for mistakes, and checked for
reasonableness. During this stage of data mining, the data may also be checked
for size as an oversized collection of information may unnecessarily slow
computations and analysis.

Step 4: Build the Model

With a clean data set in hand, it's time to crunch the numbers. Data scientists
use the types of data mining above to search for relationships, trends,
associations, or sequential patterns. The data may also be fed into predictive
models to assess how previous bits of information may translate into future
outcomes.

Step 5: Evaluate the Results

The data-centered aspect of data mining concludes by assessing the findings of
the data model or models. The outcomes from the analysis may be aggregated,
interpreted, and presented to decision-makers that have largely been excluded
from the data mining process to this point. In this step, organizations can
choose to make decisions based on the findings.

Step 6: Implement Change and Monitor

The data mining process concludes with management taking steps in response
to the findings of the analysis. The company may decide the information was
not strong enough or the findings were not relevant, or the company may
strategically pivot based on findings. In either case, management reviews the
ultimate impacts of the business and recreates future data mining loops by
identifying new business problems or opportunities.

What is Data Mining Architecture

Data Mining Architecture is the process of selecting, exploring, and modelling
large amounts of data to discover previously unknown regularities or
relationships to generate clear and valuable findings for the database owner.
Data mining is exploring and analysing large amounts of data using automated
or semi-automated processes to identify practical designs and procedures.
The primary components of any data mining system are the Data source, data
warehouse server, data mining engine, pattern assessment module, graphical
user interface, and knowledge base.
Basic Working:
1. When a user requests data mining queries, these requests are sent to
data mining engines for pattern analysis.
2. These software applications use the existing database to try to
discover a solution to the query.
3. The retrieved metadata is then transmitted to the data mining engine
for suitable processing, which may interact with pattern assessment
modules to decide the outcome.
4. The result is finally delivered to the front end in a user-friendly
format via an appropriate interface.

Source-Wideskills.com

Components Of Data Mining Architecture

 Data Sources
 Database Server
 Data Mining Engine
 Pattern Evaluation Modules
 Graphic User Interface
 Knowledge Base
Data Sources
These sources provide the data in plain text, spreadsheets, or other media such
as images or videos Data sources include databases, the World Wide Web
(WWW), and data warehouses.
Database Server
The real data is stored on the database server and is ready to be processed. Its
job is to handle data retrieval in response to the user's request.
Data Mining Engine:
It is one of the most important parts of the data mining architecture since it
conducts many data mining techniques such as association, classification,
characterisation, clustering, prediction, and so on.
Pattern Evaluation Modules:
They are responsible for identifying intriguing patterns in data and, on occasion,
interacting with database servers to provide the results of user queries.
Graphic User Interface:
Because the user cannot completely comprehend the complexities of the data
mining process, a graphical user interface assists the user in efficiently
communicating with the data mining system.
Knowledge Base:
The Knowledge Base is an essential component of the data mining engine that
aids in the search for outcome patterns. Occasionally, the knowledge base may
also provide input to the data mining engine. This knowledge base might
include information gleaned from user encounters. The knowledge base's goal is
to improve the accuracy and reliability of the outcome. The Knowledge Base is
a crucial component of the data mining engine that aids in the search for
outcome patterns. Occasionally, the knowledge base may also provide input to
the data mining engine. This knowledge base might include information gleaned
from user encounters. The knowledge base's goal is to improve the accuracy and
reliability of the outcome.

Applications of Data Mining

In today's age of information, almost any department, industry, sector, or

company can make use of data mining.

Sales
Data mining encourages smarter, more efficient use of capital to drive revenue
growth. Consider the point-of-sale register at your favorite local coffee shop.
For every sale, that coffeehouse collects the time a purchase was made and
what products were sold. Using this information, the shop can strategically
craft its product line.
Marketing
Once the coffeehouse knows its ideal line-up, it's time to implement the
changes. However, to make its marketing efforts more effective, the store can
use data mining to understand where its clients see ads, what demographics to
target, where to place digital ads, and what marketing strategies most resonate
with customers. This includes aligning marketing campaigns, promotional
offers, cross-sell offers, and programs to the findings of data mining.

Manufacturing
For companies that produce their own goods, data mining plays an integral part
in analyzing how much each raw material costs, what materials are being used
most efficiently, how time is spent along the manufacturing process, and
what bottlenecks negatively impact the process. Data mining helps ensure the
flow of goods is uninterrupted.

Fraud Detection
The heart of data mining is finding patterns, trends, and correlations that link
data points together. Therefore, a company can use data mining to identify
outliers or correlations that should not exist. For example, a company may
analyze its cash flow and find a reoccurring transaction to an unknown account.
If this is unexpected, the company may wish to investigate whether funds are
being mismanaged.

Human Resources
Human resources departments often have a wide range of data available for
processing including data on retention, promotions, salary ranges, company
benefits, use of those benefits, and employee satisfaction surveys. Data mining
can correlate this data to get a better understanding of why employees leave
and what entices new hires.

Customer Service
Customer satisfaction may be caused (or destroyed) by many events or
interactions. Imagine a company that ships goods. A customer may be
dissatisfied with shipping times, shipping quality, or communications. The
same customer may be frustrated with long telephone wait times or slow e-mail
responses. Data mining gathers operational information about customer
interactions and summarizes the findings to pinpoint weak points and highlight
what the company is doing right.
What is online analytical processing?
Online analytical processing (OLAP) is software technology you can use to
analyze business data from different points of view. Organizations collect and
store data from multiple data sources, such as websites, applications, smart
meters, and internal systems. OLAP combines and groups this data into
categories to provide actionable insights for strategic planning. For example, a
retailer stores data about all the products it sells, such as color, size, cost, and
location. The retailer also collects customer purchase data, such as the name of
the items ordered and total sales value, in a different system. OLAP combines
the datasets to answer questions such as which color products are more popular
or how product placement impacts sales.
Why is OLAP important?
Online analytical processing (OLAP) helps organizations process and benefit
from a growing amount of digital information. Some benefits of OLAP include
the following.
Faster decision making

Businesses use OLAP to make quick and accurate decisions to remain

competitive in a fast-paced economy. Performing analytical queries on multiple
relational databases is time consuming because the computer system searches
through multiple data tables. On the other hand, OLAP systems pre calculate
and integrate data so business analysts can generate reports faster when needed.
Non-technical user support

OLAP systems make complex data analysis easier for non-technical business
users. Business users can create complex analytical calculations and generate
reports instead of learning how to operate databases.
Integrated data view

OLAP provides a unified platform for marketing, finance, production, and other
business units. Managers and decision makers can see the bigger picture and
effectively solve problems. They can perform what-if analysis, which shows the
impact of decisions taken by one department on other areas of the business.
What is OLAP architecture?
Online analytical processing (OLAP) systems store multidimensional data by
representing information in more than two dimensions, or categories. Two-
dimensional data involves columns and rows, but multidimensional data has
multiple characteristics. For example, multidimensional data for product sales
might consist of the following dimensions:

 Product type
 Location
 Time
Data engineers build a multidimensional OLAP system that consists of the
following elements.
Data warehouse

A data warehouse collects information from different sources, including

applications, files, and databases. It processes the information using various
tools so that the data is ready for analytical purposes. For example, the data
warehouse might collect information from a relational database that stores data
in tables of rows and columns.
ETL tools

Extract, transform, and load (ETL) tools are database processes that
automatically retrieve, change, and prepare the data to a format fit for analytical
purposes. Data warehouses use ETL to convert and standardize information
from various sources before making it available to OLAP tools.
OLAP server

An OLAP server is the underlying machine that powers the OLAP system. It
uses ETL tools to transform information in the relational databases and prepare
them for OLAP operations.
OLAP database

An OLAP database is a separate database that connects to the data warehouse.

Data engineers sometimes use an OLAP database to prevent the data warehouse
from being burdened by OLAP analysis. They also use an OLAP database to
make it easier to create OLAP data models.
OLAP cubes

A data cube is a model representing a multidimensional array of information.

While it’s easier to visualize it as a three-dimensional data model, most data
cubes have more than three dimensions. An OLAP cube, or hypercube, is the
term for data cubes in an OLAP system. OLAP cubes are rigid because you
can't change the dimensions and underlying data once you model it. For
example, if you add the warehouse dimension to a cube with product, location,
and time dimensions, you have to remodel the entire cube.
OLAP analytic tools

Business analysts use OLAP tools to interact with the OLAP cube. They
perform operations such as slicing, dicing, and pivoting to gain deeper insights
into specific information within the OLAP cube.

How does OLAP work?

An online analytical processing (OLAP) system works by collecting,

organizing, aggregating, and analyzing data using the following steps:

1. The OLAP server collects data from multiple data sources, including
relational databases and data warehouses.
2. Then, the extract, transform, and load (ETL) tools clean, aggregate,
precalculate, and store data in an OLAP cube according to the number of
dimensions specified.
3. Business analysts use OLAP tools to query and generate reports from the
multidimensional data in the OLAP cube.
OLAP uses Multidimensional Expressions (MDX) to query the OLAP cube.
MDX is a query, like SQL, that provides a set of instructions for manipulating
databases.

What is Business Process Re-engineering (BPR)?

Business Process Re-engineering (BPR) is a dynamic approach that aims to
revolutionize and enhance business processes, leading to significant
improvements in performance, efficiency, and customer satisfaction. At its
core, BPR encourages organisations to examine their existing processes
critically, challenge conventional thinking, and introduce innovative solutions.
By adopting a customer-centric mindset, fostering cross-functional
collaboration, and leveraging technology, BPR empowers organisations to
optimize workflow, make informed decisions, and deliver exceptional value to
customers. Moreover, BPR recognizes the importance of change management,
ensuring that all stakeholders are engaged and prepared for the transformative
journey. Through continuous improvement and a relentless pursuit of
excellence, BPR enables organisations to streamline operations, boost
productivity, and stay ahead in a rapidly evolving business landscape.

Geeky Takeaways:
 Business Process Re-engineering consist of rethinking and re-design
of business processes for the achievement of significant performance
improvements, including speed, reduction in cost, and quality
enhancement.
 BPR emphasizes more on aligning processes with the needs and
preferences of customers to enhance their loyalty and satisfaction.
 It is important to leverage technology in BPR because it enables
automation, streamlines business operations, and integrates disparate
systems for smooth work.
 BPR is a continuous process of evaluating and refining processes and
helps a business adapt to the changing market conditions and
business needs.
 Business Process Re-engineering also involves risk like disruption of
operations, resistance from employees, and potential failure to
achieve desired outcomes.
Features of Business Process Re-engineering(BPR)
Business Process Re-engineering (BPR) encompasses several distinctive
features that make it a potent approach for driving transformative change
within organisations. These are some of the key features:
1. Radical Redesign: BPR goes beyond incremental adjustments by
advocating a radical overhaul of existing processes. It encourages
organisations to challenge conventional thinking, question established norms,
and envision entirely new ways of performing tasks. This innovative mindset
paves the way for substantial improvements and breakthrough outcomes.
2. Process Focus: BPR adopts a holistic view, considering organisations as
interconnected processes rather than isolated departments or functions. It
places emphasis on analyzing end-to-end processes, identifying inefficiencies,
and finding opportunities for optimization. By understanding the
interdependencies and interactions between various processes, organisations
can achieve enhanced efficiency and effectiveness.
3. Customer-Centricity: BPR places paramount importance on understanding
and meeting customer needs and expectations. It emphasizes aligning business
processes with customer requirements to deliver exceptional value and ensure
high levels of satisfaction. By centring their efforts around customer-
centricity, organisations can cultivate strong relationships, foster loyalty, and
gain a competitive edge.
4. Simplification and Elimination: BPR advocates for simplifying processes
by eliminating unnecessary steps, reducing complexities, and removing
redundant activities. By streamlining workflows and eliminating non-value-
added tasks, organisations can enhance efficiency, minimize errors, and
expedite the completion of activities.
5. Technology Enablement: BPR recognizes the transformative potential of
technology in optimizing processes. It encourages organisations to leverage
innovative technologies, automation, and digital solutions to streamline
operations, enhance data analysis capabilities, and facilitate real-time decision-
making. By harnessing technology, organisations can unlock new levels of
efficiency and gain a competitive advantage.
6. Performance Measurement: BPR stresses the importance of establishing
robust performance metrics and measurement systems to assess the
effectiveness of process improvements. By defining clear indicators and
tracking progress, organisations can monitor the impact of changes, identify
areas for further enhancement, and ensure alignment with strategic objectives.
7. Cross-Functional Collaboration: BPR fosters a culture of collaboration
and teamwork across different functions and departments. It breaks down
silos, encourages open communication, and promotes cross-functional
collaboration to improve the flow of information, leverage diverse
perspectives, and drive collective success. By working together, organisations
can unlock synergies and achieve comprehensive process optimization.
8. Change Management: BPR acknowledges the significance of effective
change management in successfully implementing process changes. It entails
managing resistance to change , engaging stakeholders at all levels, providing
training and support, and fostering a culture that embraces innovation and
continuous improvement. By proactively addressing change-related
challenges, organisations can navigate the transition smoothly and ensure
long-term success.
Objectives of Business Process Re-engineering(BPR)
The objectives of Business Process Re-engineering (BPR) encompass a range
of goals aimed at driving significant advancements in organisational
performance, efficiency, and effectiveness . Some of the key objectives of BPR
are:
1. Process Optimization: BPR strives to optimize business processes by
identifying and eliminating inefficiencies, redundancies, and bottlenecks.
Through re-imagining and re-designing processes, organisations seek to
streamline workflows, reduce cycle times, and enhance overall operational
efficiency.
2. Cost Reduction: BPR targets the identification and elimination of non-
value-added activities and wasteful resource utilization within processes. By
simplifying procedures, eliminating unnecessary steps, and optimizing
resource allocation, organisations can achieve cost reductions, improve
financial performance, and maximize resource utilization.
3. Customer Satisfaction: BPR places a strong focus on enhancing customer
satisfaction by aligning processes with customer needs and expectations. By
eliminating pain points, improving responsiveness, and delivering high-quality
products or services, organisations can exceed customer expectations and
foster long-term customer loyalty.
4. Quality Improvement: BPR aims to drive continuous improvement in
process quality by identifying and eliminating errors, defects, and re-work.
Through process re-design and the implementation of quality control
measures, organisations can enhance accuracy, consistency, and the overall
quality of outputs.
5. Time-to-Market Reduction: BPR strives to minimize time-to-market for
products or services. By streamlining processes, reducing delays, and
optimizing resource allocation, organisations can accelerate product
development cycles, respond swiftly to market demands, and seize
opportunities ahead of competitors.
6. Agility and Adaptability: BPR seeks to enhance organisational agility and
adaptability to navigate the dynamic business environment. By redesigning
processes to be flexible, responsive, and adaptable, organisations can quickly
adjust to market changes, capitalize on emerging trends, and maintain a
competitive edge.
7. Innovation and Competitive Advantage: BPR fosters a culture of
innovation by encouraging organisations to challenge the status quo and
embrace new ideas. By leveraging technology, exploring innovative
approaches, and incorporating best practices, organisations can gain a
competitive advantage, drive industry innovation, and stay ahead of the curve.
8. Employee Engagement and Empowerment: BPR recognizes the crucial
role of engaged and empowered employees in driving process improvement.
By involving employees in the redesign process, providing training and
support, and fostering a culture of continuous learning and improvement,
organisations can boost employee morale, motivation, and productivity.