Integrated Understanding of Big Data, Big Data Analysis, and Business Intelligence: A Case Study of Logistics
Integrated Understanding of Big Data, Big Data Analysis, and Business Intelligence: A Case Study of Logistics
Case Report
Integrated Understanding of Big Data, Big Data
Analysis, and Business Intelligence: A Case Study
of Logistics
Dong-Hui Jin and Hyun-Jung Kim *
Seoul Business School, aSSIST, 46 Ewhayeodae 2-gil, Seodaemun-gu, Seoul 03767, Korea; [email protected]
* Correspondence: [email protected]; Tel.: +82-70-7012-2722
Received: 5 October 2018; Accepted: 17 October 2018; Published: 19 October 2018
Abstract: Efficient decision making based on business intelligence (BI) is essential to ensure
competitiveness for sustainable growth. The rapid development of information and communication
technology has made collection and analysis of big data essential, resulting in a considerable increase
in academic studies on big data and big data analysis (BDA). However, many of these studies are
not linked to BI, as companies do not understand and utilize the concepts in an integrated way.
Therefore, the purpose of this study is twofold. First, we review the literature on BI, big data,
and BDA to show that they are not separate methods but an integrated decision support system.
Second, we explore how businesses use big data and BDA practically in conjunction with BI through
a case study of sorting and logistics processing of a typical courier enterprise. We focus on the
company’s cost efficiency as regards to data collection, data analysis/simulation, and the results from
actual application. Our findings may enable companies to achieve management efficiency by utilizing
big data through efficient BI without investing in additional infrastructure. It could also give them
indirect experience, thereby reducing trial and error in order to maintain or increase competitiveness.
Keywords: business application; big data; big data analysis; business intelligence; logistics;
courier service
1. Introduction
A growing number of corporations depend on various and continuously evolving methods of
extracting valuable information through big data and big data analysis (BDA) for business intelligence
(BI) to make better decisions. The term “big data” refers to large amounts of information or data at
a certain point in time and within a particular scope. However, big data have a short lifecycle with
rapidly decreasing effective value, which makes it difficult for academic research to keep up with their
fast pace. In addition, big data have no limits regarding their type, form, or scale, and their scope is
too vast to narrow them down to a specific area of study.
Big data can also simply refer to a huge amount of complex data, but their type, characteristics,
scale, quality, and depth vary depending on the capabilities and purpose of each company.
The same holds for the reliability and usability of the results gathered from analysis of the data.
Previous studies generally agree on three main properties that define big data, namely, volume,
velocity, and variety, or the “3Vs” [1–4], which have recently been expanded to “5Vs” with the addition
of veracity/verification and value [5–10].
There are numerous multi-dimensional methods for choosing how much data to gather and how
to analyze and utilize the data. In brief, the methodology for extracting valuable information and
taking full advantage of it could be more important than the data’s quality and quantity. A substantial
amount of research has been devoted to establishing and developing theories concerning big data,
BDA, and BI to address this need, but it is still challenging for a company to find, understand, integrate,
and use the findings of these studies, which are often conducted independently and cover only select
aspects of the subject.
BDA refers to the overall process of applying advanced analytic skills, such as data mining,
statistical analysis, and predictive analysis, to identify patterns, correlations, trends, and other useful
techniques [11–15]. BDA contributes to increasing the operational efficiency and business profits,
and is becoming essential to businesses as big data spreads and grows rapidly.
BI is a decision support system that includes the overall process of gathering extensive data,
extracting useful data, and providing analytical applications. In general, BI has three common
technological elements: a data warehouse integrating an online transaction processing system;
a database addressing specific topics; online analytical processing that is used to analyze data in
multi-dimensions in order to use those data; and data mining, which involves a series of technological
methods for extracting useful knowledge from the gathered data [16–20].
Some areas of BI and BDA, such as data analysis and data mining, overlap. This is to be expected,
as the raw data in BI have recently expanded to become big data in volume and scope. This has
necessitated reorganization of the field and concepts of BI to provide business insights and enable
better decision making based on BDA [21]. Although BI and BDA are generally studied independently,
it is challenging and often unnecessary to distinguish between the two concepts when performing
business tasks.
Given the cost of gathering and analyzing big data, it is important to identify what data to collect,
the range of the data, and the most cost-effective purpose of the data using BI. For this purpose, it is
effective to understand and apply the methodology based on experiences of companies shared through
a case study. Therefore, the present study has the following aims. First, we explore the meaning of BI,
big data, and BDA through a literature review and show that they are not separate methods, but rather
an organically connected and integrated decision support system. Second, we use a case study to
examine how big data and BDA are applied in practice through BI for greater understanding of the
topic. The case study is conducted on a large and rapidly growing courier service in the logistics
industry, which has a long history of research. In particular, we examine how the company efficiently
allocates vehicles in hub terminals by collecting, analyzing, and applying big data to make informed
decisions quickly, as well as uses BI to enhance productivity and cost-effectiveness.
The rest of the paper proceeds as follows. Section 2 reviews the research background and literature
related to BI, big data, and BDA. Section 3 presents the case study for the company and industry and
discusses the case in detail. Finally, Section 4 concludes by discussing the implications and directions
for future research.
2. Literature Review
Big data have become a subject of growing importance, especially since Manyika et al. pointed out
that they should be regarded as a key factor to increase corporate productivity and competitiveness [22].
Many researchers have shown interest in big data, as the rapid development of information and
communication technology (ICT) generates a significant amount of data. This has led to lively
discussions about the collection, storage, and application of such data. In 2012, Kang et al. argued that
the value of big data lies in making forecasts by recognizing situations, creating new value, simulating
different scenarios, and analyzing patterns through analysis of the data on a massive scale [23]. In 2011,
only 38 studies related to big data and BDA were listed in the Science Citation Index Expanded (SCIE),
Social Science Citation Index (SSCI), Arts & Humanities Citation Index (AHCI), and Emerging Sources
Citation Index (ESCI), but in 2012, this number increased to 92, and then rapidly increased to 1009 in
2015 and 3890 in 2017 [24].
Sustainability 2018, 10, 3778 3 of 15
distributing data using cloud computing [39]. These cases illustrate that an increasing number of
researchers are approaching BI and big data/BDA as an integrated concept.
• Zhong et al. examined a big data approach that facilitates several innovations that can guide
end-users to implement associated decisions through radio frequency identification (RFID) to
support logistics management with RFID-Cuboids, map tables, and a spatiotemporal sequential
logistics trajectory [44].
• Marcos et al. studied both the environment and approaches to conduct BDA, such as data
management, model development, visualization, user interaction, and business models [45].
• Kim reported several successful cases of big data application. Examples include analysis of
competing scenarios through 66,000 simulated elections conducted per day to understand the
decisions of individual voters during the 2012 reelection campaign of former US president Barack
Obama and delivery routes and time management based on vehicle and parcel locations adopted
by UPS, a US courier service company [46].
• Wang et al. redefined big data business analytics of logistics and supply chain management as
supply chain analytics and discussed its importance [47].
• Queiroz and Telles studied the level of awareness of BDA in Brazilian companies through surveys
conducted via questionnaires and proposed a framework to analyze companies’ maturity in
implementing BDA projects in logistics and supply chain management [48].
• Hopkins analyzed the impact of BDA and Internet of things (IoT), such as truck telematics and
geo-information in supporting large logistics companies to improve drivers’ safety and operating
cost-efficiency [49].
The above examples of big data/BDA used by governments or corporations, as well as entities
dealing with methods in either specific or general areas, make it clear that there is an abundance of
studies on the need for and efficiency of big data. However, big data and BDA have not been studied
until recently, and few studies use real corporate examples—especially in the logistics industry—that
provide valuable business insights through detailed methods and results.
Researchers should endeavor to provide second-hand experience through specific case studies
using big data/BDA-based BI, and then accumulate and integrate such case studies to establish a
database of integrated convergent knowledge. This could enable corporations to adjust to changing
environments and improve the productivity and efficiency of the organization.
Sustainability 2018, 10, 3778 5 of 15
methods for improving service quality, and minimization of costs in terms of operational requirements.
Only a few case studies gathered and analyzed big data or BI applications in the field, considering the
increase in 2018,
Sustainability e-commerce delivery
10, x FOR PEER demand.
REVIEW 6 of 15
CJ Logistics
Logisticsis aismarket
a market leader equipped
leader equipped with cutting-edge
with cutting-edge logistics including
logistics technologies, technologies,real-
including real-time
time tracking tracking
of freight, of freight, courier
an integrated an integrated courier
and freight and freight
tracking system tracking systemusers
that enables that enables
to view
users to view
customer customer
information information
and requirements,and satellite
requirements,
vehiclesatellite
tracking,vehicle tracking, and
and temperature temperature
control systems
control systems
[67]. In 2017, [67]. In 2017,
CJ Logistics CJ Logistics
invested more thaninvested
KRW more than KRW
120 billion 120 billion
to automate to automate
its sorting process itsthrough
sorting
process through sub-terminals to aid sustainable growth. CJ Logistics’ infrastructure
sub-terminals to aid sustainable growth. CJ Logistics’ infrastructure is more than three times bigger is more than
three times
than that of bigger than
its closest that of itsinclosest
competitor competitor
the courier serviceinindustry.
the courier
With service
five hub industry. Withmore
terminals, five than
hub
terminals, more than
270 sub-terminals, 270more
and sub-terminals,
than 16,000 andvehicles,
more thanCJ 16,000 vehicles,
Logistics CJ Logistics
processes more than processes more
5.3 million
than 5.3 million
packages per day.packages
Its mega perhub
day.terminal
Its megain hub terminalGyeonggi-do
Gwangju, in Gwangju, Gyeonggi-do
Province—which Province—which
was due for
was due for in
completion completion
August 2018 in August
with 2018 with an investment
an investment of more of thanmoreKRW than400 KRW 400 billion—will
billion—will utilize
utilize convergence
convergence technologies
technologies such
such as big as big
data, data,
robots, robots,
and IoT toand
expandIoT its
to services
expand for its the
services for the
convenience
convenience
of its customers of its customers
across Korea. across
This willKorea.
includeThis will include
same-day same-day
delivery, delivery,
same-day return,same-day return,
and scheduled
and scheduled
delivery delivery
services. services. is
The company The company is simultaneously
simultaneously moving forward moving
with forward
its planned withinternational
its planned
international growth. At the end of 2017, CJ Logistics had a global network
growth. At the end of 2017, CJ Logistics had a global network of 238 centers in 137 cities of 238 centers in 137 cities
and 32
and 32 countries.
countries. It opened It opened the Shenyang
the Shenyang Flagship Flagship
Center, Center,
a mammoth a mammoth
logisticslogistics
center in center in Shenyang,
Shenyang, China,
China, on 15
on 15 June June
2018. The2018. The purpose
purpose of this investment
of this investment was to accelerate
was to accelerate the company’s
the company’s business business
in northern in
northern Asia, including three provinces of northeastern China—Liaoning,
Asia, including three provinces of northeastern China—Liaoning, Jilin, and Heilongjiang. The Jilin, and Heilongjiang.
The company
company has has implemented
implemented hugehuge capital
capital expenditure
expenditure to to broadenitsitsbusiness
broaden businessefficiently,
efficiently, laying
laying the
groundwork for sustainable growth and expansion by raising the entrance barrier for rivals (big data
case of CJ Logistics, March 2018).
CJ Logistics mainly uses a hub-and-spoke system, which connects points via hubs or logistics
centers dealing with massive cargo volumes in its courier service; it also uses a point-to-point
operational system directly connecting origins and destinations. The point-to-point system delivers
Sustainability 2018, 10, 3778 7 of 15
groundwork for sustainable growth and expansion by raising the entrance barrier for rivals (big data
case of CJ Logistics, March 2018).
CJ Logistics mainly uses a hub-and-spoke system, which connects points via hubs or logistics
Sustainability 2018, 10, x FOR PEER REVIEW 7 of 15
centers dealing with massive cargo volumes in its courier service; it also uses a point-to-point
operational
to and from systemterminals,directly
savingconnecting origins and
time on package destinations.
arrivals The point-to-point
while alleviating capacity issuessystem delivers
during the
peak season. However, growing volumes may increase costs, as they require more investmentthe
to and from terminals, saving time on package arrivals while alleviating capacity issues during in
peak season.
terminals; However,
a volume growing
imbalance amongvolumes may can
terminals increase
cause costs, as theyadditional
unnecessary require more costs.investment
On the other in
terminals;
hand, in the a volume imbalance
hub-and-spoke among
system, terminals
packages arecan cause unnecessary
gathered and sorted inadditional costs. On
a large terminal the being
before other
hand, in the hub-and-spoke system, packages are gathered and sorted in a
delivered to a destination terminal. The advantage of this system is that it reduces arrival time to the large terminal before being
delivered to
terminals, a destination
easing terminal.
the imbalance in The
volume.advantage
However, of this
thesystem is that it reduces
disadvantages are thatarrival
it maytime delay to
the terminals,
deliveries easingorthe
to distant imbalance
rural areas duringin volume.
the peakHowever,
season theanddisadvantages are that hub
requires a large-scale it may delay
terminal
deliveries
[67]. to distant or rural areas during the peak season and requires a large-scale hub terminal [67].
Since CJ Logistics mostly uses the hub-and-spoke system, whose
Since CJ Logistics mostly uses the hub-and-spoke system, whose core is the logistics process at core is the logistics process
at the
the hub hub terminal,
terminal, thisstudy
this studyfocuses
focuseson ondecisions
decisions concerning
concerning the the loading/unloading
loading/unloading docks docks in in the
the
process. This focus point was selected for the following reasons. First,
process. This focus point was selected for the following reasons. First, few previous studies have few previous studies have
focused on
focused on this
thissegment,
segment,even eventhough
thoughit it hashasgreater
greaterroomroomforfor
improvement
improvement regarding
regarding productivity
productivity and
efficiency than other segments. Second, the importance of this
and efficiency than other segments. Second, the importance of this segment may have been segment may have been overlooked,
since standardizing
overlooked, the process is
since standardizing thechallenging owing to differences
process is challenging owing to in the environment,
differences such as the
in the environment,
distance
such between
as the distance buildings
betweenorbuildings
shape of or theshape
space.ofThird, thereThird,
the space. are many
thereother difficulties
are many to address,
other difficulties
including outsourcing, warehouse management, freight payment,
to address, including outsourcing, warehouse management, freight payment, inventory inventory management, packing,
customs clearance,
management, andcustoms
packing, customer claims [51].
clearance, andMany
customer courier service
claims [51]. providers
Many courier allocate
servicehubproviders
terminal
allocate hub terminal docks for loading/unloading simply according to terminal conditions,between
docks for loading/unloading simply according to terminal conditions, such as the distance such as
docks
the and number
distance betweenofdocks packages, mostly of
and number based on past
packages, experience.
mostly based onBy pastcontrast,
experience.CJ Logistics
By contrast, has
dramatically
CJ Logistics has improved
dramaticallyproductivity
improved and efficiency by
productivity “seeing
and the by
efficiency unseen”
“seeing through the use
the unseen” of big
through
data/BDA and promoting faster and better decision making
the use of big data/BDA and promoting faster and better decision making through BI. through BI.
The hub
The hub terminal
terminal process
process was was selected
selected fromfrom thethe three
three general
general stages
stages ofof courier
courierservices,
services,namely,
namely,
pick-up,
pick-up, transport/sorting,
transport/sorting, and and delivery
delivery (Figure
(Figure 2).2). This
This process
process waswas selected
selected because
because it it is
is the
the central
central
process connecting pick-ups from different locations with delivery to different
process connecting pick-ups from different locations with delivery to different destinations [68,69]. destinations [68,69].
An incident that occurs at the hub terminal can have a serious impact on the entire cycle—from
pick-up to delivery—and could cause a bottleneck effect at hub terminals. This is a significant issue
that needs to be addressed to secure growth in the industry, as it can paralyze transportation and
delivery within a company on a large scale. Resolving this issue alongside difficulties in other areas
by using big data/BDA could improve company productivity and efficiency as a whole.
Sustainability 2018, 10, 3778 8 of 15
An incident that occurs at the hub terminal can have a serious impact on the entire cycle—from
pick-up to delivery—and could cause a bottleneck effect at hub terminals. This is a significant issue
that needs to be addressed to secure growth in the industry, as it can paralyze transportation and
delivery within a company on a large scale. Resolving this issue alongside difficulties in other areas by
using big data/BDA could improve company productivity and efficiency as a whole.
Objective function
Objective function (1): Selection of
(1): Selection of vehicles
vehicles to
to unload
unload first
first
TableOrder
1. Selection of vehicle unloading priorities
Category W according to weighting
(Before 0:00) factor and
W (After 0:00)time.
1
Order Special sale customer
Category 50 0:00) W (After 0:00)
W (Before 3
2 Route for loading first 30 50
31 Special salevolume
Console customer 508 3 15
42 Route for loading first
Produce 307 50 10
53 Premium customer
Console volume 83 15 20
6 First-in, first-out (FIFO) 2 2
4 Produce 7 10
Note: W: weighting factor for unloading priority.
5 Premium customer 3 20
6
Objective function First-in,
(2) first-out
pertains (FIFO) unloading
to optimum 2 chute allocation. 2 This was calculated
using volume by loading chute Note: for each vehicle,
W: weighting factortravel time between
for unloading priority. unloading/loading chutes,
content information, and reflected travel time under the constraints. The function includes
Objective of
minimization function (2) pertains
congestion through to optimum unloading
equal allocation chute allocation.
of vehicles, This was
minimization ofcalculated using
travel between
volume byand
buildings, loading chuteoffor
allocation each with
vehicles vehicle,
moretravel
than time between
30% console unloading/loading
content chutes,
to a special console content
unloading
information,
zone, based onandtwo
reflected
types travel time under
of reference the constraints.
information. The function
The reference includes
information minimization
includes of
(1) travel
congestion
time betweenthrough equal allocation
loading/unloading of vehicles,
chutes minimization
and (2) unloading of travel
service time forbetween
maximum,buildings, and
minimum,
allocation
and averageof volume.
vehicles with more than 30% console content to a special console unloading zone, based
on two types of reference information. The reference information includes (1) travel time between
Sustainability 2018, 10, 3778 10 of 15
L: Volume in the vehicles by loading chutes, T: Travel time between loading/unloading chutes.
Although vehicles are assigned to docks through optimum chutes, by considering operational
status at the docks and the fact that unloading procedures can change at any time, the function repeats
the optimization of the dock allocation process to decide whether a vehicle should be placed on hold
or assigned to a second dock, or whether a second-in-line vehicle should be sent first to increase
efficiency. Information from the BDA was used in connection with balancing the volume among
loading docks through tracking analysis of individual products, fast delivery by development of
new P2P routes, expansion of hub terminal capacity, and volume analysis of products for higher
productivity and efficiency.
Figure 4. (a) Before optimization of dock allocation; DaeJeon Hub Terminal of CJ Logistics; (b) After
Figure 4. (a) Before optimization of dock allocation; DaeJeon Hub Terminal of CJ Logistics; (b) After
optimization of dock allocation using BDA; DaeJeon Hub Terminal of CJ Logistics.
optimization of dock allocation using BDA; DaeJeon Hub Terminal of CJ Logistics.
4. Discussion and Conclusions
4. Discussion and Conclusions
Business activities that are believed to be sufficiently empirical and productive to ensure efficiency
Business
can benefit fromactivities
differentthat are believed
perspectives andtobreakthroughs
be sufficientlyuponempirical andand
acquiring productive
analyzingtobigensure
data,
efficiency can benefit from different perspectives and breakthroughs upon acquiring
and can be realized through BI. The value of big data depends on the types of data extracted and and analyzing
big
howdata,
theyand
arecan be realized
utilized. through
The crucial BI. The
factor, value ofisbig
however, thedata depends
method on the raw
of turning types of data
data intoextracted
valuable
and
information, and not the quality or quantity of the data. Therefore, it is vital to identify the type into
how they are utilized. The crucial factor, however, is the method of turning raw data and
valuable information,
scope of data and notaccording
to be collected the quality
to or quantity
their purposeof and
the data.
focusTherefore,
area. The it is vitaluse
efficient to identify the
of big data
type and scope of data to be collected according to their purpose and focus area. The efficient use of
Sustainability 2018, 10, 3778 12 of 15
may provide an opportunity to a small or medium enterprise to become a large corporation or market
leader by taking advantage of meaningful information, and for a large corporation to maintain its
market share and ensure sustainable growth and competitiveness. Many studies have been conducted
on BI, big data, and BDA so far, but for enterprises to implement changes, it is necessary for them
to understand intuitively that BI, big data, and BDA cannot be separated, but should be integrated
and utilized in the management decision support system as a whole. As the case study of CJ Logistics
shows, the process of collecting and analyzing big data and applying it through BI is separated neither
individually nor progressively.
The limitations of this case study include the facts that the big data have been derived from a
limited date range, there are differences in the infrastructure and situation of each company, and the
case study represents only a portion of a company within a specific industry. Nonetheless, we believe
that this case study can be directly applied to other logistics companies within the same sector and,
therefore, can help these companies achieve time and cost efficiency without much trial and error.
Our study can also have a positive long-run impact by informing companies in the logistics industry,
as well as in other industries, of the possibility of increasing the efficiency and productivity of their
existing infrastructure without additional investment. CJ Logistics’ process of expanding and applying
the experience gained through the combined use of BI, big data, and BDA to all of its business
divisions can be a valuable example for other companies and may provide insights concerning future
business directions and reduced trial and error. Future studies can expand on this research to provide
practical knowledge and experience by collecting and sharing similar case studies, including those
about volumetric analysis through ITS (Intelligence Scanner) of goods, volume management through
production of boxes for each customer, classification of customers based on volume density, and etc.
which are based on practical business applications to build integrated knowledge.
Author Contributions: Conceptualization, D.-H.J. and H.-J.K.; methodology, D.-H.J.; software, D.-H.J.; validation,
D.-H.J. and H.-J.K.; formal analysis, D.-H.J.; investigation, D.-H.J.; resources, D.-H.J.; data curation, D.-H.J.;
writing—original draft preparation, D.-H.J.; writing—review and editing, D.-H.J. and H.-J.K.; visualization,
D.-H.J.; supervision, D.-H.J. and H.-J.K.; project administration, D.-H.J. and H.-J.K.
Funding: This research received no external funding.
Conflicts of Interest: CJ Logistics provided some part of the data for the case study to Dong Hui Jin and validated
all the data used in this study.
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