Introducing Business Intelligence

Applications
Instructor: Samuel I. G. Situmeang

SGS/ISS3203-Gudang Data dan Kecerdasan Bisnis Tuesday, Apr. 24, 2018

Lecture Objectives
 Know about:
 Importance of Business Intelligence Applications
 Analytic Cycle for Business Intelligence
 Types of Business Intelligence Applications
 Navigating Applications via the BI Portal

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Importance of Business Intelligence Applications
 Most knowledge workers in an organization will not build
their own reports.
 Primary role of BI applications is to provide these workers
with an appropriate way to gain access to the information
in the data warehouse.
 If the applications are confusing, perform poorly, are
unappealing or inaccurate, they will taint the entire
DW/BI system.
 Bottom line: the BI applications must be great. They must
meet a demanding list of design requirements.

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Demanding List of Design Requirements
 Be correct. BI applications must provide accurate audit reports
and document differences compared to other systems.
 Perform well. A response time of less than five seconds for the
average query is a good goal.
 Be easy to use. Users who have enough skill to order a book
online should be able to use at least the standard reports.
Getting customized results with less than ten mouse clicks is a
good goal.
 Look good. Tools and reports should be clear and attractive.
 Be a long-term investment. Applications must be properly
documented, maintained, enhanced, and extended.

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Types of BI applications and Consumer Modes

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Analytic Cycle for Business Intelligence
 Business analysis follows a common process from monitoring
activity to identifying a problem or opportunity and
determining an action to take, and finally back to monitoring
the results of that action.
 The analytic cycle breaks the Monitor
process into five distinct Activity

stages.
Take Action
 This helps us : and Track
Identify
Expectations
Results
 Understand how our users will
use BI
 Determine the tools we must
provide to make their Determine
Model
experience positive & Alternatives
Causal
Factors
productive

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Stage 1: Monitor Activity
 Users work with these reports to examine current results
versus previous periods or plan in order to provide a
report card on the state of the business.
 BI application requirements in the monitor activity stage
focus on the presentation layer and include technologies
such as dashboards, portals, and scorecards.
 Many data warehouse implementations stop at this stage
and declare success.

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Stage 2: Identify Exceptions
 This stage focuses on the identification of "what's the
matter?" or "where are the problems?"
 The exceptions stage is essential in helping users wade
through the deluge of data to focus on the opportunities
that deserve the most attention.
 The identify exceptions stage requires additional
capabilities, such as distribution servers that distribute
alerts to users' devices of choice based upon exception
triggers and visualization tools to view the data in
different more creative ways, including trend lines, spark
lines, geographical maps, or clusters.

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Stage 3: Determine Causal Factors
 This stage tries to understand the "why" or root causes of the
identified exceptions.
 Identifying reliable relationships and interactions between
variables that drive exceptional performance is the key.
 Successfully supporting users' efforts in this stage will require
your DW/BI system architecture to include additional software
including statistical tools and/or data mining algorithms.
 This step frequently requires new data to investigate causal
factors. i.e., if you are trying to understand a broad sales
downturn in West Virginia during a particular month, you
might want to include a weather data source for that area and
time.

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Stage 4: Model Alternatives
 In this stage, you build on cause-and-effect relationships to develop
models for evaluating decision alternatives.
 The data warehouse is a treasure trove of historical insight.
 The ability to perform what-if analysis and simulations on a range of
potential decisions is considered the final goal when following a
typical analytic cycle.
 You hope to successfully answer strategic questions.
 i.e., What happens to my market share, revenue, and units sold if I
achieve a greater than 10 percent price differential versus my top two
competitors? Or, what are the impacts on my inventory costs if I can
achieve 95 percent sales forecast accuracy instead of my usual 90
percent?
 Your data warehouse architecture may also need to accommodate
additional technologies in the model alternatives stage, including
statistical tools and data mining algorithms for model evaluation.

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Stage 5: Take Action and Track Results
 Ideally, you can enable a closed loop process in your BI
applications and feed the recommended actions back to the
operational system.
 The take action/track results stage places additional demands
on your data warehouse architecture.
 You need to access operational systems from the data
warehouse via APIs or SOA calls.
 You may need to enhance existing dimensional models or build
performance management tracking databases to record the
results of specific business decisions and determine which
decisions worked and which ones didn't.
 Technologies applicable in this area include distribution
services that enable users to respond with recommended
actions from email, PDAs, pagers, or cell phones, not just
deliver alerts.

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Types of Business Intelligence Applications

Standard Analytic
Reports Applications

Dashboards
Data Mining and
Scorecards

BI
Direct Access
Operational
Query +
BI
Reporting

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Direct Access Query & Reporting Tools
 Power users have access to software and the dimensional
model for writing their own queries.
 4 Key Functions of these tools:
 Query Formulation – assist with data queries
 Analysis & Presentation Capabilities – placing the data in
“presentation quality” format.
 User Experience – Metadata access, easy to use, prevent
misuse of data.
 Technical Features – Multitasking, Scheduling, Import / Export.
 Examples: MS Excel, Hyperion

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Data Mining
 A process of data exploration with the intent to find
patterns or relationships of organizational value.
 Uses:
 Clustering & Classifying data – “customer 1 is type A, customer
2 is type B”
 Estimating and predicting – “customer type A will spend $N
this year.”
 Affinity Grouping – “customers who by product X are also
likely to buy product Y”
 Anomaly Detection – Fraud detection, unusual patterns

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Data Mining Case Study
 New York Times “How Companies Learn Your Secrets”
 https://www.nytimes.com/2012/02/19/magazine/shopping-
habits.html
 Video:
 http://nyti.ms/16ZgJcN

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Standard Reports
 The basic end of the BI Spectrum. Canned reports with
pre-defined output.
 Some reports are parameter-based.
 Examples: MS Reporting Services, Hyperion Workspace

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Example: Reports (SQL Reporting Services)

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Example: Reports (SQL Reporting Services)

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Analytic Applications
 Targeted at specific business processes
 Encapsulate domain-specific expertise
 Can be purchased pre-built from vendors
 Implementations of Data Mining / Machine Learning.
 Examples:
 Web path analysis
 Shelf Space Planning
 Fraud Detection

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Dashboard & Scorecards
 Originally executive interfaces, now organization-wide.
 Provide a high-density & information-rich visual
representation of data.
 Usually web-based and interactive.
 Contain KPI’s (Key performance Indicators) for measuring
goals.
 As much of an organizational challenge as it is a technical
one…

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Example: Dashboard

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Example: Dashboard

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Operational BI
 As the name implies, BI targeted at the operational level.
 Sometimes called “real-time” BI, due to the fact it
operates on transactional data.
 Examples:
 Call centers can use it to obtain timely information regarding
the customer on the line.
 Analyzing event data from servers to diagnose issues.

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Navigating Applications via the BI Portal
 Provides access to BI Applications + Data
 Security can be setup to restrict access.
 Makes it easier to navigate a large BI implementation
 Requirements of a portal:
 Useable – Easy to find what you need.
 Content Rich – Reports and More
 Clean – Simple design not overwhelming
 Current – New content often
 Interactive – Browse data, customization for relevance
 Value oriented – Users need to see value in it

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SU Myslice Portal
 Useable?
 Content Rich?
 Clean?
 Current?
 Interactive?
 Value oriented?

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Summary
 BI applications are the bridge that enables a large majority of the
organization to take advantage of the information in the DW/BI
system.
 BI applications come in a range of flavors, including standard
reports, analytic applications, dashboards and scorecards, and
operational business intelligence.
 Data mining plays a significant role in identifying the patterns or
relationships that can be used in the analytic applications or
operational BI applications.
 Almost all of the BI applications are delivered to the users via the BI
portal. This portal must meet the same stringent design
requirements as the BI applications in order to provide the best user
experience possible.

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Resources
 Text book:
 R. Kimball, M. Ross, and W. Thornthwaite, The Data
Warehouse Lifecycle Toolkit (2nd Edition), John Wiley & Sons,
2008.

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