Business Intelligence

Learning Outcomes

By the end of this unit students will be able to:

LO1. Discuss business processes and the mechanisms used to support business
decision-making.

LO2. Compare the tools and technologies associated with business intelligence
functionality.

LO3. Demonstrate the use of business intelligence tools and technologies.

LO4. Discuss the impact of business intelligence tools and technologies for effective
decision-making purposes and the legal/regulatory context in which they are used.
Table of Contents

1. Tools and Techniques – Descriptive and Predictive analysis, predictive

modelling, data mining techniques, cluster patterns, Converting data into
visual information using charts, graphs etc
2. Solutions – Supporting a business process, end-user requirements, system
requirements, Designing tool, program, packages to perform problem solving
or decision making
3. Uses – Designing an application to solve, Creating an e-commerce website
4. Design consideration - User friendly interface, designing solution, customer
satisfaction
Why do organizations need business intelligence?
• Business intelligence comprises of information that contains relationships, patterns, trends
about customers, business employers and employees.

• BI system process, stores and provides useful information as per the requirement.

• Measurement - creating key performance indicators based on historic data.

• Identify and set benchmarks for varied processes.

• With BI system organizations can identify market trends and spot business problems that need to
be addressed.

• Helps on data visualization that enhances the data quality and thereby the quality of decision
making

• BI system can be used not just by enterprises but small and medium enterprises
Business intelligence systems and tools

• Business intelligence system is an information system that employs business intelligence tools to
produce and deliver information.

• BI tools are computer programs that implement a particular BI technique. The techniques are
categorized into three ways:
1. Reporting tools
2. Data – mining tools
3. Knowledge-management tools
Business intelligence systems and tools

• Reporting tool - read data, processes it and format the data into structured report that are delivered
to users. They are used for assessment.

• Data-mining tool – process data using statistical techniques, search for patterns and relationships
and make predictions based on the result

• Knowledge management tool – store employee knowledge, make it available.

Business intelligence systems implemented

Step 1: Raw Data from corporate databases is extracted. The data could be spread across multiple
systems heterogeneous systems.

Step 2: The data is cleaned and transformed into the data warehouse.

Step 3: Using BI system the user can ask quires, request ad-hoc reports or conduct any other analysis
Example

• A hotel owner uses BI analytical applications to gather statistical information regarding average
occupancy and room rate.

• It helps to find aggregate revenue generated per room.

• It also collects statistics on market share and data from customer surveys from each hotel to
decides its competitive position in various markets.

• By analyzing these trends year by year, month by month and day by day helps management to
offer discounts on room rentals.
Descriptive Analysis

• Descriptive analytics is used form of data analysis whereby historical data is collected, organized
and then presented in a way that is easily understood.

• Descriptive analytics is focused only on what has already happened in a business and, unlike
other methods of analysis, it is not used to draw inferences or predictions from its findings.

• Descriptive analytics is, rather, a foundational starting point used to inform or prepare data for
further analysis down the line. 

• Data analytics, descriptive analytics uses simple math and statistical tools, such as arithmetic,
averages and per cent changes, rather than the complex calculations necessary for predictive
and prescriptive analytics.

• Visual tools such as line graphs and pie and bar charts are used to present findings, meaning
descriptive analytics can – and should – be easily understood by a wide business audience.
Descriptive Analysis working

• Business metrics are decided.

• The data required is identified.

• The data is collected and prepared.

• The data is analyzed.

• The data is presented.

Examples of descriptive analytics

•Summarizing past events such as sales and operations data or marketing campaigns.

•Social media usage and engagement data such as Instagram or Facebook likes.

•Reporting general trends.

•Collating survey results.

Predictive analytics

• Predictive analytics is focused on predicting and understanding what could happen in the
future.

• Analyzing past data patterns and trends by looking at historical data and customer insights can
predict what might happen going forward and, in doing so, inform many aspects of a business,
including setting realistic goals, effective planning, managing performance expectations and
avoiding risks.
Predictive analytics working
• Predictive analytics is based on probabilities.

• Using a variety of techniques – such as data mining, statistical modelling (mathematical

relationships between variables to predict outcomes)

• machine learning algorithms (classification, regression and clustering techniques) – predictive

analytics attempts to forecast possible future outcomes and the likelihood of those events.
Predictive analytics working

• To make predictions, machine learning algorithms, for example, take existing data and attempt
to fill in the missing data with the best possible guesses.

• A newer branch of machine learning is deep learning, which, according to Cornerstone

Performance Management, mimics the construction of ‘human neural networks as layers of
nodes that learn a specific process area but are networked together into an overall prediction.’

• Deep learning examples include credit scoring using social and environmental analysis and
sorting digital medical images such as X-rays to automate predictions for doctors to use when
diagnosing patients
Examples
• E-commerce – predicting customer preferences and recommending products to customers based
on past purchases and search history

• Sales – predicting the likelihood that customers will purchase another product or leave the store

• Human resources – detecting if employees are thinking of quitting and then persuading them to
stay

• IT security – identifying possible security breaches that require further investigation

• Healthcare – predicting staff and resource needs

Typical Data mining applications
• Data mining techniques are a blend of statistics and mathematics, and artificial intelligence and
machine learning.

• Because data mining is an odd blend of terms from different disciplines which is also known as
knowledge discovery in databases.
Data mining techniques
Unsupervised data-mining characteristics:
 No model or hypothesis exists before running the analysis.
 Analysts apply data mining techniques and then observe the result.
 Cluster analysis

Supervised data-mining characteristics:

 Analysts develop a model prior to their analysis
 Statistical techniques to estimate parameters of a model
 Regression technique
 Neural networks predict values and make classifications
Data mining techniques
 Finding Patterns
• Market-Basket Analysis is a data mining tool used for
determining sales patterns.  Classification

• It helps business create cross-selling opportunities  Association

 Support – Probability of two items purchased together.  Prediction

 Confidence - conditional probability estimate.

Business Intelligence Platforms
Tableau

 Tableau is one of the most popular Business Intelligence platforms that is used by businesses to
get an idea of their operations using data analysis.

 Tableau is very famous as it can connect to multiple data sources and also produce detailed data
visualizations in a very short time.

 In fact, Tableau also allows its users to prepare, clean, and format their data and then create
data visualizations that can be used by businesses to obtain actionable insights.
Business Intelligence Platforms
Qlik Sense

 Quik Sense is a Business Intelligence platform that allows decision-makers in businesses to use
any BI use cases and find out unique insights into their data.

 Quik Sense can help companies in becoming data-driven entities by providing data analytics
services and Artificial Intelligence systems on a cloud architecture if they want.

 Corporate employees can easily load and visualize their data on Qlik Sense, no matter its size.

 All the data charts, tables, and other visualizations that can be created on Qlik Sense are totally
interactive and they can automatically update themselves based on the changing data context.

 Quik Sense is also very intuitive, and professionals can easily create data analytics using just
drag and drop.
Business Intelligence Platforms
Salesforce Einstein Analytics

 The Salesforce Einstein Analytics is a business intelligence suite that offers a flexible
architecture for businesses to share their data insights with employees and make better
decisions in the future.

 Businesses can use Salesforce Einstein Analytics to create a scalable platform and transform the
data into useful information using artificial intelligence.

 Users can use various BI tools to report, query and analyze the data, and then use data
visualization to improve business efficiency, assess the risk in new ventures, highlight unique
opportunities, etc.

 Salesforce Einstein Analytics also provides top-notch security, both in the cloud and on local
data centers.

 Businesses can try Salesforce Einstein Analytics for free and then decide on the price based on
the type of solution in the business, role, need and industry.
Business Intelligence Platforms
Looker

 Looker is a business intelligence, data visualization, and data analytics tool that can go in-depth
in the data to provide real-time dashboards and in-depth data insights.

 Businesses can make instant decisions based on the data visualizations obtained on Looker as it
provides integrated insights for making advanced decisions.

 Looker also provides connections with Redshift, Snowflake, BigQuery, as well as more than 50
SQL supported dialects so you can connect to multiple databases without any issues.

 It also supports connections with many cloud services like Amazon Web Services.

 Businesses can securely access their data analytics as Looker provides custom applications,
data science workflows, embedded data visualizations, etc. to make this process easier.
Business Intelligence Platforms
Microsoft Power BI

 Microsoft Power BI is a Business Intelligence platform that can be used to create a data-driven
culture in modern businesses.

 This BI tool has various self-service analytics that can be used to collect, manage, analyze, and
share the data easily in business.

 Microsoft Power BI offers hundreds of data visualizations with end-to-end data protection
services.

 It can also connect to many cloud data sources like Azure SQL Database, Excel, Dynamics 365,
Salesforce, etc.

 Businesses can also use Microsoft Power BI along with Microsoft Office and Azure for maximum
productivity.
Predictive marketing software
• ZoomInfo
• Infer
• Radius

Business intelligence software help with forecasting

• Accuracy
• Comprehensiveness
• Timeliness
• Clarity
Cluster Analysis

Clustering is the process of making a group of

abstract objects into classes of similar objects.

Points to Remember

• A cluster of data objects can be treated as

one group.

• While doing cluster analysis, we first

partition the set of data into groups based on
data similarity and then assign the labels to
the groups.

• The main advantage of clustering over

classification is that it is adaptable to
changes and helps single out useful features
that distinguish different groups.
Clustering Technique

• Partitioning Method
• Hierarchical Method
• Density-based Method
• Grid-Based Method
• Model-Based Method
• Constraint-based Method
Data Visualization

• Data Visualization refers to the visual representation of data with the help of
comprehensive charts, images, lists, charts, and other visual objects.

• It enables users to easily understand the information within a fraction of time and extract
useful information, patterns, and trends. Moreover, it makes the information easy to
understand.

• In other words, we can say that data representation in graphical form so that users can
easily comprehend the procedure of trends in the data is called data visualization.

• There are many tools involved in data visualization, such as chart maps, graphs, etc.

• The tools used for data visualization help the users easily understand and collect the data
provided by visual representation rather than going through the whole scanning the
datasheets.
Why use Data Visualization?

1. To make easier in understand and remember.

2. To discover unknown facts, outliers, and trends.
3. To visualize relationships and patterns quickly.
4. To ask a better question and make better decisions.
5. To competitive analyze.
6. To improve insights.
Types of Data Visualization charts?

Line chart: A-line chart illustration changes over time. The X-axis represents the period,
whereas the y-axis represents the quantity.

Bar Chart: Bar charts illustration also change over time. In the case of more than one
variable, a bar chart can make it simpler to distinguish the data for each variable at each
moment in time.

Pie chart: A pie chart is one of the best options we have for illustrating algebra (percentages)
because it depicts each object as part of a whole. So, if your data explain an error in
percentages, a pie chart will help present the pieces in the proper proportions.
Data Visualization tools

Line chart: A-line chart illustration changes over time. The X-axis represents the period,
whereas the y-axis represents the quantity.

Bar Chart: Bar charts illustration also change over time. In the case of more than one
variable, a bar chart can make it simpler to distinguish the data for each variable at each
moment in time.

Pie chart: A pie chart is one of the best options we have for illustrating algebra (percentages)
because it depicts each object as part of a whole. So, if your data explain an error in
percentages, a pie chart will help present the pieces in the proper proportions.
Importance of Efficient Processes

• Map the process

• Analyze the process

• Redesign the process

• Acquire resources

• Implement and communicate change

• Review the process

End-User Requirements

End user?

• The term "end user" refers to the consumer of a good or service.

• An end user is a person or other entity that consumes or makes use of the goods or
services produced by businesses.

• In this way, an end user may differ from a customer—since the entity or person that buys
a product or service may not be the one who uses it.

• Delivery to the end user is often the final step in manufacturing and selling products.

• End user experience and support are crucial for the success of user-oriented products and
services.
End-User Requirements

Example - local gym website

A web development team is creating a website for a local gym. During analysis, the team try
to establish end-user requirements and functional requirements.
End-user requirements
Members would like to:
 navigate the site with ease
 have access to a virtual tour of the gym and facilities
 have access to a timetable of classes
 have access to training videos, demonstrating appropriate use of the various equipment in
the gym
 have access to profiles for personal trainers
 be able to may make online payments for classes or to purchase equipment
End-User Requirements

Functional requirements
It will specify areas of the site that require navigation and interaction, either with a linked
database or in the form of multimedia.
• The homepage should have links to pages containing:
• information on membership plans
• classes that members of the gym can attend
• contact information for the gym and personal trainers
• All pages should link back to the homepage
• The membership page must :
• allow for access to a member only login area
• allow for access to an online store
• should include subpages for each type of member (adult, child, student))
End-User Requirements

Functional requirements
• The classes page should include:
• an overview of the type of activities that members can expect to participate in
• clips and images of class activities
• an online booking facility and calendar
• The contact us page should have a profile for each personal trainer. The profile should
include:
• an image of the trainer.
• the trainer’s professional qualifications.
End-User Requirements

System requirement

• System requirements is a statement that identifies the functionality that is needed by a

system in order to satisfy the customer’s requirements.

• System requirements are a broad and also narrow subject that could be implemented to
many items.

• System requirements are the required specifications a device must have in order to use
certain hardware or software.

• For example, a computer may require a specific I/O port to work with a peripheral device.
A smartphone may need a specific operating system to run a particular app.
End-User Requirements

System requirement - Software System requirement - Hardware

1.Operating system 1. Operating system

2.Minimum CPU or processor speed 2. Available ports (USB, Ethernet, etc.)
3.Minimum GPU or video memory 3. Wireless connectivity
4.Minimum system memory (RAM) 4. Minimum GPU (for displays and graphics
5.Minimum free storage space hardware)
6.Audio hardware (sound card, speakers, etc)
Problem Solving Tools Importance

 Fixes things that are broken

 Addressing risk

 Improving performance

 Seizing opportunity
Problem Solving Tools Importance

 Fixes things that are broken

 Addressing risk

 Improving performance

 Seizing opportunity
E-commerce

Ecommerce, also known as electronic commerce or internet commerce, refers to the buying
and selling of goods or services using the internet, and the transfer of money and data to
execute these transactions.

Types:

1. Business to Consumer (B2C)

2. Business to Business (B2B)
3. Consumer to Consumer (C2C)
4. Consumer to Business (C2B)
Steps to E-commerce website development process

1. What are you intending to sell?

2. Determining business model
3. Know your audience
4. Good business name
5. Purchase domain name
6. Determine branding
7. Finding right e-commerce platform
8. Content strategy
9. Search engine optimization
10. Product categories
11. Product Photos & descriptions
12. Shipping software
User Friendly Software/Interface

User-friendly describes a hardware device or software interface that is easy to use.

1.Simple. A user-friendly interface is not overly complex, but instead is straightforward,

providing quick access to common features or commands.
2.Clean. A good user interface is well-organized, making it easy to locate different tools and
options.
3.Intuitive. In order to be user-friendly, an interface must be making sense to the average
user and should require minimal explanation for how to use it.
4.Reliable. An unreliable product is not user-friendly, since it will cause undue frustration
for the user. A user-friendly product is reliable and does not malfunction or crash.
Business Intelligence Tool - Tableau

 Tableau is the fastly growing and powerful data visualization tool.

 Tableau is a business intelligence tool which helps us to analyze the raw data in the
form of the visual manner; it may be a graph, report, etc.

 Tableau software doesn't require any technical or any programming skills to operate.
Tableau is easy and fast for creating visual dashboards.
Uses - Tableau Features - Tableau

 Ultimate skill for Data Science  Data Blending

 User-Friendly  Real-time analysis
 Apply to any Business  The collaboration of Data
 Fast and Easy
 You don't need to do any Coding
 Community is Huge
 Hold the power of data
 It makes it easier to understand
and explain the Data Reports
Data Visualization Use – Data Visualization

 It is a graphical representation of quantitative  To make easier in understand and

information and data by using visual elements remember.
like graphs, charts, and maps.  To discover unknown facts, outliers, and
 It converts large and small data sets into trends.
visuals, which is easy to understand and  To visualize relationships and patterns
process for humans. quickly.
 Data visualization tools provide accessible  To ask a better question and make better
ways to understand outliers, patterns, and decisions.
trends in the data.  To competitive analyze.
 To improve insights.
Data Visualization Use – Data Visualization

 It is a graphical representation of quantitative  To make easier in understand and

information and data by using visual elements remember.
like graphs, charts, and maps.  To discover unknown facts, outliers, and
 It converts large and small data sets into trends.
visuals, which is easy to understand and  To visualize relationships and patterns
process for humans. quickly.
 Data visualization tools provide accessible  To ask a better question and make better
ways to understand outliers, patterns, and decisions.
trends in the data.  To competitive analyze.
 To improve insights.
Advantages of Tableau Disadvantages of Tableau
Tool Tableau Architecture Tableau

LINK : https://www.tableau.com/products/desktop on your Web browser.

Tableau File Types

 Tableau workbook (.twb)

 Tableau Bookmarks (.tbm)

 Tableau Packaged workbook (.twbx)

 Tableau data Extract (.hyper or .tde)

 Tableau data Source (.tds)

 Tableau Packaged Data Source (.tdsx)

 Tableau Preferences (.tps)

Data Connection with Data sources, Text file

• File Systems: Such as Step1: Open Tableau.

Microsoft Excel, CSV, etc. Step2: Below Connect, click on Text File.

• Cloud Systems: Such as
Google bigQuery, Windows
Azure, etc.

• Relational System: Such
as Microsoft SQL Server,
Oracle, DB2, etc.

• Other Sources: It uses

ODBC.
Tableau Extracting Data

• Creating an extract
Tableau Data Joining
Creating a join
 Cross Join.
• Let's assume a data source Sample-superstore to create a
 Inner Join. join between two tables such as Orders and Returns.
• Go to the Data menu and choose Microsoft Excel option
 Natural Join. below connect.
• Then select sample-superstore as a data source and click
 Outer Join. the Open button.
 Left Outer Join. • Drag Orders and Returns tables from sheets of the data
 Right Outer Join. source to the data pane.
 Full Outer Join.
• After that Tableau will automatically create a join
 Self-Join. between Orders and Returns tables which can be changed
later as per required joins.
Tableau Data Blending
Method
 It is used to analyze
• First, load the sample1 into Tableau and visualize its
the data in a single
view from a related metadata.
• Go to the data source below connect → click on MS
data in multiple data
source. Access database file and browse for the sample1 file.
• Click on Add button of the data source.
• Add a new connection to use cross-database joins to a file
and choose the data source such as Microsoft Excel.
• Now, both the data sources appear on the Data window
Tableau Calculations

1. Function: Function statements are used to transform the values or members in a field.

For Example: The format of all functions in Tableau such as SUM (expression).
2. Fields: Field is dimensions and measures from your data source.
For Example: A field in a calculation is often surrounded by brackets [ ] such as [Sales].
3. Operators: Operator is a symbol that denotes an operation between the operands.
For Example: The types of operators you can use in Tableau calculations, as well as the
order they are performed in a formula such as +, -, *, /, %, ==, =, >, <, >=, <=, ! =, <>, ^,
AND, OR, NOT, ( )
4. Literal Expression: Literal’s expression are representing the constant values “as is” such a
“profitable” and “unprofitable”
Tableau Operators Tableau Functions

1.General operators 1.Number functions

2.Arithmetic operators 2.String functions
3.Relational operators 3.Date functions
4.Logical operators 4.Logical functions
5.Aggregate functions
Tableau Basic Filters

• Filters Dimensions: Filter dimensions are the filters applied to the dimension fields.
• Filters Measures: Filter measures are the filters applied to the measure fields.
• Filter Dates: Filter dates are the filters applied on the date fields.
Tableau Filter Operations

• Filters Dimensions: Filter dimensions are the filters applied to the dimension fields.
• Filters Measures: Filter measures are the filters applied to the measure fields.
• Filter Dates: Filter dates are the filters applied on the date fields.

Creating filters

• Filters are designed by dragging the required field to the Filters shelf.
• Then, create a horizontal bar chart by dragging the dimension (Sub-Category) to the Rows
shelf and the measure (eg: sales) to the Columns shelf.
• Again, drag the Sales into the Filters shelf, select sum option among all options, and click
on the Next button.
• Once this filter is created, right-click and choose the Edit Filter option from the pop-up
menu.
Tableau Filter Operations

Creating filters for measures

• Range of values: It specifies the minimum and maximum values of the range to include in
the view.
• At Least: It includes all values that are greater than or equal to a specified minimum
value.
• At Most: It includes all values that are less than or equal to a specified maximum value.
• Special: It helps you filter on Null values. It includes Null values, Non-null values, or All
Values.
Tableau Charts & Graphs

Pie Chart
Bar Chart
Tableau Charts & Graphs

Histogra Scatter Plot

m
Tableau Vs Power BI
References
• Boyer, J. (2010) Business Intelligence Strategy. MC Press (US).

• Jeston, J. and Nelis, J. (2014) Business Process Management. 3rd Ed. Routledge.

• Kolb, J. (2013) Business Intelligence in Plain Language: A practical guide to Data Mining and
Business Analytics. CreateSpace Independent Publishing Platform.

• Marr, B. (2015) Big Data: Using Smart Big Data, Analytics and Metrics to Make Better
Decisions and Improve Performance. 1st Ed. John Wiley & Sons, Ltd.