Business Analytics &

Data Visualization

UNIT: 1

SHARED BY:
TRIPTI TIWARI
Topics to be covered:
What is BI?

Comparing Business Intelligence with Business Analytics

Few areas of its application

Concept of OLAP

Report & Queries

Data Visualisation

GIS
Business Intelligence (BI)
Business intelligence (BI) can be described as “a set of techniques and tools
for the acquisition and transformation of raw data into meaningful and useful
information for business analysis purposes”.
Business Analytics
Business analytics (BA) refers to the skills, technologies, practices for continuous iterative
exploration and investigation of past business performance to gain insight and drive business
planning. Business analytics focuses on developing new insights and understanding of business
performance based on data and statistical methods
Comparison with Business
Analytics
Business intelligence and business analytics are sometimes used interchangeably, but there are

alternate definitions. One definition contrasts the two, stating that the term business intelligence

refers to collecting business data to find information primarily through asking questions,

reporting, and online analytical processes. Business analytics, on the other hand, uses statistical

and quantitative tools for explanatory and predictive modeling.

The Business
Analytics (BA) Field: An Overview
Areas of B.A application
Financial Analytics- eg: Portfolio Management & Analysis in Banks

Market Analytics- eg: Trends using Google Analytics

Employee Analytics - eg: individual capacity & performance

Customer Analytics–eg: customer Acquisition & Retention

Online Analytical Processing (OLAP)
Codd’s 12 Rules for OLAP
1. Multidimensional conceptual
7. Dynamic sparse matrix handling
view for formulating queries
8. Multiuser support rather than
2. Transparency to the user
support for only a single user
3. Easy accessibility: batch and
9. Unrestricted cross-dimensional
online access
operations
4. Consistent reporting
10.Intuitive data manipulation
performance
11.Flexible reporting
5. Client/server architecture: the
use of distributed resources 12.Unlimited dimensions and
aggregation level
6. Generic dimensionality
Four types of processing that are performed
by analysts in an organization:

1. Categorical Analysis – Analysis based on historical data as past performance can indicate future

performance.

2. Exegetical Analysis – Also based on historical data but add capability of drill-down Analysis

3. Contemplative Analysis – Allows user to change single value and determine its impact

4. Formulaic Analysis – Permit changes to multiple variables.

Online Analytical Processing (OLAP)
• Drill-down
The investigation of information in detail (e.g.,
finding not only total sales but also sales by
region, by product, or by salesperson).
Finding the detailed sources.
• Online analytical processing (OLAP)
An information system that enables the user,
while at a PC, to query the system, conduct
an analysis, and so on. The result is
generated in seconds
Online Analytical Processing (OLAP)

• OLAP versus OLTP

– OLTP concentrates on processing repetitive transactions in
large quantities and conducting simple manipulations
– OLAP involves examining many data items
complex relationships
– OLAP may analyze relationships and look for patterns,
trends, and exceptions
– OLAP is a direct decision support method
Types of OLAP
Reports & Queries
REPORTS

◦ Routine reports
◦ Ad hoc (or on-demand) reports
◦ Multilingual support
◦ Scorecards and dashboards
◦ Report delivery and alerting

QUERIES

o Ad hoc query
A query that cannot be determined prior to the moment the query is issued
o Structured Query Language (SQL)
A data definition and management language for relational databases. SQL front ends most relational DBMS
Multidimensionality
The ability to organize, present, and analyze data by several dimensions, such as sales
by region, by product, by salesperson, and by time (four dimensions)

Multidimensional presentation
◦ Dimensions
◦ Measures
◦ Time
Limitations of Multidimensionality
◦ The multidimensional database can take up significantly more
computer storage room than a summarized relational database
◦ Multidimensional products cost significantly more than standard
relational products
◦ Database loading consumes significant system resources and time,
depending on data volume and the number of dimensions
◦ Interfaces and maintenance are more complex in multidimensional
databases than in relational databases
Advanced Business Analytics
Data mining and predictive analysis
◦ Data mining
◦ Predictive analysis
Use of tools that help determine the probable future outcome for an event or the
likelihood of a situation occurring. These tools also identify relationships and patterns
 For academic purpose at BVIMR only

Data Mining
Data mining, also known as "knowledge
discovery," refers to computer-assisted tools
and techniques for sifting through and
analyzing these vast data stores in order to find
trends, patterns, and correlations that can
guide decision making and increase
understanding.
 Visualization & Presentation
Data Visualization is a graphical, animation, or video presentation of
data and the results of data analysis.

• Visual technologies can condense 1000 numbers in one picture and

make decision support applications more attractive and
understandable

• The ability to quickly identify important trends in corporate and market

data can provide competitive advantage

• Check their magnitude of trends by using predictive models that

provide significant business advantages in applications that drive
content, transactions, or processes
 Geographic Information Systems (GIS)
An information system that uses spatial data, such as digitized maps. A GIS is a combination of text,
graphics, icons, and symbols on maps.

Image source: https://nobelsystemsblog.com/industries-use-gis-business-intelligence-improve-system-workflow-reduce-costs/

Geographic
Information Systems (GIS)
GIS and decision making
◦ GIS applications are used to improve decision making in the public and
private sectors including:
◦ Dispatch of emergency vehicles
◦ Transit management
◦ Facility site selection
◦ Drought risk management
◦ Wildlife management
◦ Local governments use GIS applications for used mapping and other
decision-making applications
Geographic
Information Systems (GIS)
GIS combined with GPS
◦ Global positioning systems (GPS)
Wireless devices that use satellites to enable users to detect the position on earth of items (e.g., cars or people)
the devices are attached to, with reasonable precision

GIS and the Internet/intranets

◦ Most major GIS software vendors provide Web access that hooks directly to their software
◦ GIS can help the manager of a retail operation determine where to locate retail outlets
◦ Some firms are deploying GIS on the Internet for internal use or for use by their customers (locate the
closest store location)
 Real-Time BI, Automated Decision
Support, and Competitive Intelligence

Real-time BI
◦ The trend toward BI software producing real-time data updates for real-time analysis and real-time
decision making is growing rapidly
◦ Part of this push involves getting the right information to operational and tactical personnel so that they
can use new BA tools and up-to-the-minute results to make decisions
Real-time BI
◦ Concerns about real-time systems
◦ An important issue in real-time computing is that not all data should be updated continuously
◦ when reports are generated in real-time because one person’s results may not match another person’s
causing confusion
◦ Real-time data are necessary in many cases for the creation of ADS systems
Real-Time BI, Automated Decision Support,
and Competitive Intelligence
Real-time BI
◦ Automated decision support (ADS) or enterprise decision management (EDM)
A rule-based system that provides a solution to a repetitive managerial problem. Also known as enterprise
decision management (EDM)
Real-time BI
◦ Business rules
Automating the decision-making process is usually achieved by encapsulating
business user expertise in a set of business rules that are embedded in a rule-driven
workflow (or other action-oriented) engine
Real-Time BI, Automated Decision Support,
and Competitive Intelligence

Capabilities of ADSs
◦ Rapidly builds rules-based applications and deploys them into almost
any operating environment
◦ Injects predictive analytics into rule-based applications
◦ Provides services to legacy systems
◦ Combines business rules, predictive models, and optimization
strategies flexibly into state-of-the-art decision-management
applications
◦ Accelerates the uptake of learning from decision criteria into strategy
design, execution, and refinement
Real-Time BI, Automated Decision Support,
and Competitive Intelligence

Competitive intelligence
◦ Many companies continuously monitor the activities of their competitors to acquire competitive
intelligence
◦ Such information gathering drives business performance by increasing market knowledge, improving
knowledge management, and raising the quality of strategic planning
 BA and the Web: Web Intelligence and
Web Analytics
Using the Web in BA

Web analytics

The application of business analytics activities to Web-based processes,

including e-commerce.

Clickstream analysis

The analysis of data that occur in the Web environment.

Clickstream data

Data that provide a trail of the user’s activities and show the user’s
browsing patterns (e.g., which sites are visited, which pages, how long)
 Usage, Benefits & Success of BA
Usage of BA
◦ Almost all managers and executives can use some BA systems, but some find the tools too
complicated to use or they are not trained properly.
◦ Most businesses want a greater percentage of the enterprise to leverage analytics; most of the
challenges related to technology adoption involve culture, people, and processes.

Success and usability of BA

◦ Performance management systems (PMS) are BI tools that provide scorecards and other relevant
information that decision makers use to determine their level of success in reaching their goals
 Why BI/BA projects fail
1. Failure to recognize BI projects as cross-organizational business initiatives and to understand that,
as such, they differ from typical standalone solutions
2. Unengaged or weak business sponsors
3. Unavailable or unwilling business representatives from the functional areas
4. Lack of skilled (or available) staff, or suboptimal staff utilization
5. No software release concept (i.e., no iterative development method)
6. No work breakdown structure (i.e., no methodology)
7. No business analysis or standardization activities
8. No appreciation of the negative impact of “dirty data” on business profitability
9. No understanding of the necessity for and the use of metadata
10. Too much reliance on disparate methods and tools
THANK YOU!!