Fundamentals of Enterprise Data Management Business Intelligence and Data Warehouse

BUSINESS INTELLIGENCE AND DATA WAREHOUSING

1. BUSINESS INTELLIGENCE PRINCIPLES

Creating Information from data

In the era of data-driven decision making, organizations are inundated with vast amounts of data
from various sources. However, raw data alone holds little value until it is transformed into
meaningful and actionable information. Business Intelligence (BI) principles provide a framework
for converting data into valuable insights that can drive informed decisions and strategic initiatives.

Business Intelligence encompasses a broad range of processes, technologies, and

methodologies that enable organizations to collect, integrate, analyze, and present data in a
meaningful and comprehensible manner. By harnessing the power of BI, organizations can gain
a competitive edge by uncovering hidden patterns, trends, and relationships within their data.

Business Intelligence Phases

The BI process can be broken down into several phases, each contributing to the overall goal of
transforming data into actionable information:

1. Data Collection: Gathering relevant data from various sources, including operational systems,
external data sources, and structured or unstructured formats.
2. Data Integration: Combining data from multiple sources into a unified and consistent format,
ensuring data quality and integrity.
3. Data Transformation: Cleansing, filtering, and transforming the integrated data to prepare it
for analysis and reporting.
4. Data Analysis: Applying analytical techniques, such as statistical analysis, data mining, and
predictive modeling, to uncover insights and patterns within the data.
5. Reporting and Visualization: Presenting the analyzed data in a clear and intuitive manner
through reports, dashboards, and visualizations, enabling effective communication of insights to
decision-makers.
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LIEZL S. ABUZO, Ph. D.

Subject Professor
College of Computing Studies, Information and Communications Technology
Fundamentals of Enterprise Data Management Business Intelligence and Data Warehouse

Centralized repository

At the heart of BI lies the concept of a centralized repository, known as a data warehouse. A data
warehouse is a specialized database designed to store and manage large volumes of historical
and integrated data from various sources within an organization. By consolidating data into a
single, consistent repository, data warehouses enable efficient data analysis, reporting, and
decision support.

Data warehouses are optimized for querying and analysis, providing a dedicated environment for
BI activities without impacting operational systems. They typically follow a specific data
architecture, such as the dimensional modeling approach, to facilitate efficient data retrieval and
analysis.

2. INFORMATION MANAGEMENT

Effective information management is a critical component of BI and data warehousing. It involves

establishing policies, processes, and technologies to ensure the availability, quality, and security
of data throughout its lifecycle. Key aspects of information management include:

1. Data Governance: Defining and enforcing data governance policies, roles, and responsibilities
to ensure data integrity, quality, and compliance with regulatory requirements.
2. Data Quality Management: Implementing processes and tools to assess, monitor, and
improve the quality of data, including data cleansing, standardization, and deduplication.
3. Data Security and Privacy: Protecting sensitive data from unauthorized access, misuse, or
breach, while ensuring compliance with data privacy regulations and industry standards.
4. Data Lifecycle Management: Managing the entire lifecycle of data, from creation and
acquisition to archiving and disposal, ensuring data availability and efficient storage utilization.

By effectively managing information assets, organizations can maximize the value derived from
their data and support informed decision-making processes.
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LIEZL S. ABUZO, Ph. D.

Subject Professor
College of Computing Studies, Information and Communications Technology
Fundamentals of Enterprise Data Management Business Intelligence and Data Warehouse

3. DATA ANALYSIS

Data analysis lies at the heart of BI, enabling organizations to uncover valuable insights and
patterns hidden within their data. Various analytical techniques are employed, ranging from
traditional statistical methods to advanced machine learning and artificial intelligence algorithms.
Some common data analysis methods include:

1. Descriptive Analytics: Summarizing and visualizing historical data to understand past events
and current situations.
2. Diagnostic Analytics: Identifying root causes and factors contributing to specific outcomes or
patterns.
3. Predictive Analytics: Using statistical models and machine learning algorithms to forecast
future trends, behaviors, or outcomes based on historical data.
4. Prescriptive Analytics: Providing data-driven recommendations and actionable insights to
guide decision-making and optimize outcomes.

Effective data analysis requires a combination of domain knowledge, analytical skills, and the
appropriate tools and technologies to extract meaningful insights from complex datasets.

4. DATA WAREHOUSE DESIGN

Designing an effective data warehouse is a critical step in enabling successful BI and data
analysis initiatives. The design process involves several key considerations:

1. Data Modeling: Developing a conceptual, logical, and physical data model that accurately
represents the organization's data requirements and business rules.
2. Dimensional Modeling: Structuring the data warehouse using a dimensional modeling
approach, which organizes data into facts (measures) and dimensions (descriptive attributes),
enabling efficient querying and analysis.
3. Data Mart Design: Creating data marts, which are subject-specific subsets of the data
warehouse, tailored to the analytical needs of specific departments or business functions.
4. Performance Optimization: Implementing techniques such as indexing, partitioning, and
database tuning to ensure optimal query performance and minimize resource contention.
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LIEZL S. ABUZO, Ph. D.

Subject Professor
College of Computing Studies, Information and Communications Technology
Fundamentals of Enterprise Data Management Business Intelligence and Data Warehouse

5. Security and Access Control: Establishing appropriate security measures, including role-
based access controls, data encryption, and auditing, to protect sensitive data and ensure
compliance with regulations.

A well-designed data warehouse provides a solid foundation for BI and data analysis, enabling
efficient data retrieval, analysis, and reporting across the organization.

5. EXTRACTION, TRANSFORMATION, AND LOAD

The Extraction, Transformation, and Load (ETL) process is a crucial component of data
warehousing and BI. It involves extracting data from various sources, transforming it into a
consistent and usable format, and loading it into the data warehouse or data mart. The ETL
process ensures data quality, consistency, and integrity, enabling accurate and reliable analysis
and reporting.

• Extraction. The extraction stage involves identifying and retrieving data from various
sources, such as operational databases, flat files, cloud-based services, or external data
providers. This stage requires understanding the data structures, formats, and access
methods of the source systems.

• Transformation. During the transformation stage, the extracted data undergoes a series
of processes to convert it into a format suitable for loading into the data warehouse. These
processes may include data cleansing, standardization, deduplication, filtering, and
aggregation. Complex transformations may involve applying business rules, calculating
derived values, or performing data enrichment from external sources.

• Load. The load stage involves physically loading the transformed data into the target data
warehouse or data mart. This stage may involve various techniques, such as bulk loading,
incremental loading, or change data capture, depending on the specific requirements and
performance considerations.

ETL processes can be implemented using specialized ETL tools, custom scripts, or a
combination of both. Effective ETL design and execution are crucial for ensuring data
quality, consistency, and timely data availability for BI and analytical processes.

• Reporting. Reporting is the final stage of the BI process, where the analyzed data and
insights are presented to decision-makers and stakeholders in a clear and understandable
format. Effective reporting involves:
1. Data Visualization: Presenting data through charts, graphs, dashboards, and
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other visual representations, making it easier to identify patterns, trends, and

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outliers.
LIEZL S. ABUZO, Ph. D.
Subject Professor
College of Computing Studies, Information and Communications Technology
Fundamentals of Enterprise Data Management Business Intelligence and Data Warehouse

2. Report Formatting and Distribution: Designing and formatting reports to meet

specific requirements, such as tabular reports, interactive dashboards, or
scheduled report delivery.
3. Collaborative Analytics: Enabling stakeholders to collaborate, share insights,
and engage in data-driven discussions through shared reporting platforms or
collaborative analytics tools.
4. Self-Service BI: Empowering business users to create and customize their own
reports and dashboards without relying heavily on IT resources, fostering data-
driven decision-making across the organization.

Effective reporting and data visualization are crucial for communicating insights and enabling
data-driven decision-making at all levels of an organization.

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LIEZL S. ABUZO, Ph. D.

Subject Professor
College of Computing Studies, Information and Communications Technology