In every company there is usually a vast amount of running and historical HR data that accumulates and appears to be useless. Using the right approach, it can be turned into a gold mine that harbors added value for your company. Business Intelligence (BI), that is from now on available also in eHRM.Net, enables your company to do just that.
Business Intelligence incorporates technologies like:
- Data Warehouse - DW,
- Multidimensional queries - OLAP (Multidimensional Online Analytical Processing - MOLAP),
- Multidimensional Expressions - MDX,
- Data Mining,
- Expert System - ES,
- Artificial Intelligence - AI.
Why Business Intelligence in HRM?
Some examples of meaningful use of BI:
- HR managers often have to be strategic leaders in the company. They need to be aware of the experiences from the past and somewhat foresee future events and activities. BI represents enormous help to HR managers. It becomes easier to prepare schemes or plans for strategic employment, reassignments, trainings and layoffs, if they are based on qualitative interpretation of current and historical HR data.
- Some international companies have trouble controlling their HR data. This is an especially difficult task for managers that are in constant search for trends and unusual patterns, which can't be found in ordinary reports.
- Competition is getting stronger. The ability to harmonize your HRM activities brings crucial competitive edge on international markets. This includes establishment of competence model, understanding of employee turnover, foreseeing the human capital deficit or surplus.
HR BI will help your company gain new information and consequently new value out of HR data.
Why an expert system?
There are challenges that can only be solved by a professional and experienced HR specialist, given infinite amount of time and capabilities. Expert system (ES) gives access to results that weren't available before or were merely subject to speculation. Fortunately, you don't have to be a HR professional to read and understand ES reports.
Two preconditions for successful implementation of an ES system:
- Knowledge and experiences of professionals transferred into system.
- Up-to-date HR data and established competence system.
Type of reports that are generated in the ES system:
- Simulation of optimal assignments for selected people and selected jobs based on competence requirements and personal competence profiles.
- Competence changes through time.
- Suitability matching - the right people for the right jobs, based on competencies. Deviations between required competencies and personal competence profiles and recommended measures.
- Insight into work cost through time.
- Selection of most appropriate candidates out of all that applied for job vacancies.
What is difference between BI reports and other reports?
Although BI reports look similar to classical queried reports, there are some crucial differences:
- Because the reports are executed on a separate database, daily BI reports can be generated. Data is periodically and systematically transformed into a data warehouse, which allows for quick reporting, that doesn't disrupt other active systems.
- Because the data is structured in so called multidimensional cubes, it enables users to drill deeper into data (data mining), patterns and trends.
- Reports, which are based on data mining, enable pattern recognition and bring new awareness and prediction of future circumstances; for example, they can give the answer to the question: "Which type of employees is most likely to leave the company in the next 3 years?"
- Reports enable Key Performance Indicator (KPI) monitoring and other useful findings (using 2D or 3D graphs, nested tables...)
Any company, that wishes to obtain a useful BI, needs a good IT infrastructure. Agito establishes a data warehouse in an existing IT environment and makes sure that the right data is collected in the right form at the right time. Agito also provides an analysis to gather requirements and goals, which results in optimal choice of BI implementation. Considering this, Agito can properly select, prepare, process and above all, interpret data that will be useful for your business.