OVERVIEW OF THE BUSINESS ANALYTICS MODEL

The BA model in Exhibit 1.1 illustrates how BA is a layered and hierarchical discipline. Arrows show the underlying layers that are subject to layers above. Information requirements move from the business-driven environment down to the technically oriented environment. The subsequent information flow moves upward from the technically oriented environment toward the business-driven environment.

As illustrated by the BA model in Exhibit 1.1, there are many competencies, people, and processes involved in the creation of BA. In the top layer of the model, in the business-driven environment, the management specifies a strategy that includes which overall information elements must be in place to support this strategy. In the sec-

Exhibit 1.1 The BA Model

ond layer, the operational decision makers' need for information and knowledge is determined in a way that supports the company's chosen strategy. In the middle layer of the model, analysts, controllers, and report developers create the information and knowledge to be used by the company's operational decision makers with the purpose of innovating and optimizing their day-to-day activities. In the second layer from the bottom, in the technically oriented environment in the data warehouse, the database specialist or the ETL (extract, transform, load) developer merges and enriches data and makes it accessible to the business user. In the bottom layer, in the technically oriented environment, the business's primary data generating source systems are run and developed by IT professionals from IT operations and development. Successful BA processes should have a fixed structure that always begins with the specification of the information strategy, which is derived from the objectives of the business strategy.

 
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