Author: Edward I. Altman (1968) Used For: Predicting Bankruptcy; liquidity measurement ratios Overview The Z-Score Formula was devised by Edward Altman in 1968 to calculate the likeliness that a firm will enter bankruptcy within a period of two years. The formula uses common business ratios derived from income and balance … [Continue reading...]
Author: Watts Humphrey Used For: Incremental Process Improvement Overview The Capability Maturity Model (CCM) was first defined in 1989 in the book “Managing Software Processes” by Watts Humphrey. It was originally developed by the US Department of Defence to gauge whether government contractors were able to successfully … [Continue reading...]
Overview Break Even Analysis is used in financial management, accounting and marketing components of business intelligence systems. The break-even is the point where a business’ expenses and revenue are equal ( i.e. no loss and no profit) and provides an important sales target that an organisation needs to achieve before they will start to … [Continue reading...]
A fundamental requirement for creating game changing business intelligence installations is to leverage one's understanding of business and strategy to gain competitive advantage. Expressed simply, if your tracked data does not empower your management team to make good strategic decisions, AND make your end-users work lives significantly … [Continue reading...]
In spy movies, good ‘intel’ is obtained by a clever agents, advanced technologies and lots of pain. Same applies to organisations: Accurate, insightful and timely business intelligence requires good analysts, much effort and powerful business intelligence applications and technologies to give organisations the edge. Business intelligence … [Continue reading...]
Business intelligence applications can include the following functionality: Alerts: Alerts warn end-users of distinct events (e.g. Server 1 has failed) or when current performance is not within the tolerance of expected results (e.g. Current sales call rate of 25 per hour is 32% below budget of 37). The responsible end-users are alerted … [Continue reading...]
Business intelligence is defined as: any information or insight that enables employees to operate or manage their organisation to greater success, through improved decision-making and enhanced strategic, tactical and operational insight. This practical definition emphasises that business intelligence: Is information or insights. Enables … [Continue reading...]