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Unit 1

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92 views41 pages

Unit 1

Uploaded by

rogerovi
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BU S INE SS

UCT I O N TO
INTROD E NCE ( BI )
INTE L L IG
UNIT-1
By: Prof. K.V. PAVAN KUMAR,
Methodist College of Engg & Tech.,
Abids, Hyd.
1. BUSINESS INTELLIGENCE -
DEFINITION:
The term Business Intelligence
(BI) refers to technologies,
applications and practices for the
collection, integration, analysis, and
presentation of business
information.
The purpose of Business
Intelligence is to support better
business decision making.
HISTORY AND EVOLUTION OF
BUSINESS INTELLIGENCE:
 At the very beginning, historical
data mining methods and tools
were used for strategic managerial
reporting purposes.
 The second evolutionary stage is
characterized by On-Line Analytic
Processing (OLAP) technologies and
dimensional analysis of data stored
in data warehouses and data marts.
 In the third stage Balanced
Scorecard methodology is used as a
means of Business Intelligence
creation.
 With the emergence and growing
popularity of EBusiness and other
Internet applications and services
the new stage of BI appeared since
Web analytics and Web mining as a
form of BI began to attract the wide
professional attention.
 The fifth development stage started
when usage of Business Dashboard
technology became a core
component of alerting and alarming
systems in business decision-making
supported by BI.

 Finally, nowadays we are witnessing


the era of Mobile and location-
based Business Intelligence
founded on appropriate mobile and
location-aware technologies.
BI QUESTIONS
 What happened?
 What were our total sales this month?
 What’s happening?
 Are our sales going up or down, trend analysis
 Why?
 Why have sales gone down?
 What will happen?
 Forecasting & What If Analysis
 What do I want to happen?
 Planning & Targets
WHERE IS BUSINESS
INTELLIGENCE APPLIED?
Operational Efficiency Customer Interaction

 ERP Reporting  Sales Analysis


 KPI Tracking  Sales Forecasting
 Product Profitability  Segmentation
 Risk Management  Cross-selling
 Balanced Scorecard  CRM Analytics
 Activity Based Costing  Campaign Planning
 Global Sourcing  Customer Profitability
 Logistics
2. STYLES OF BUSINESS
INTELLIGENCE:
There are 5 Styles of BI, which are
presented below:
1) Enterprise Reporting - Broadly
deployed pixel-perfect report
formats for operational reporting
and scorecards/dashboards targeted
at information consumers and
executives.
2) Cube Analysis - OLAP slice-and-dice
analysis of limited data sets, targeted at
managers and others who need a safe and
simple environment for basic data
exploration within a limited range of
data.

3) Ad Hoc Query and Analysis - Full


investigative query into all data, as well
as automated slice and-dice OLAP analysis
of the entire database - down to the
transaction level of detail if necessary.
Targeted at information explorers and
power users.
4) Statistical Analysis and Data Mining -
Full mathematical, financial, and
statistical treatment of data for purposes
of correlation analysis, trend analysis,
financial analysis and projections.
Targeted at the professional information
analysts.
5) Alerting and Report Delivery - Proactive
report delivery and alerting to very large
populations based on schedules or event
triggers in the database. Targeted at very
large user populations of information
consumers, both internal and external to
the enterprise.
3. TYPES OF BUSINESS
INTELLIGENCE TOOLS:
The following are the types of Business
Intelligence Tools:
a) Spreadsheets – These interactive
Computer Applications manage
information in a visual format.
b) Reporting and Querying Software –
These tools extract, sort and summarize
data. There is a variety of software
programs used to present this data,
including open-source and commercial
software types.
c) Online Analytical Processing – This
processing approach quickly answers
queries that are multi-dimensional.
The types of applications included in
this processing include business
reporting, marketing, budget and
forecasting.

d) Data Mining – Data mining is the


bridge between statistics and
computer science. It is used to
uncover patterns in large sets of
data.
e) Data Warehousing – This
comprehensive database is used for
reporting and data analysis. The
information is uploaded from a
separate operational system.

f) Process Mining – This process


management technique logs various
events to determine business
processes. Process mining provides
techniques and tools that will discover
control data, process and social
structures from event logs.
g) Digital Dashboards – A single page
interface in real-time that show at-a-
glance information.
h) Decision Engineering – A frameword
that utilizes the best practices for
organizational decisional making. It helps
businesses make decisions based on a
variety of business approaches.
i) Business Performance Management –
Management and Analytic Processes that
manage a business’ performance to
achieve short and long-term goals.
4. BENEFITS OF BUSINESS INTELLIGENCE:
The following are the benefits of Business
Intelligence:
 Faster reporting, analysis or planning
 More accurate reporting, analysis or planning
 Better business decisions
 Improved data quality
 Improved employee satisfaction
 Improved operational efficiency
 Improved customer satisfaction
 Increased competitive advantage
 Reduced costs
 Increased revenues
 Saved headcount
BI APPLICATIONS &
TECHNOLOGIES CAN HELP
COMPANIES ANALYSE:
 Changes trends in
Shares
 Changes in customer
behavior and spending
patterns
 Customers' preferences
 Company capabilities
 Market conditions
SIGNIFICANCE OF BI:
 Companies need to have accurate, up-
to-date information on customer
preferences .

 So that company can quickly adapt to


their changing demands.
 BI applications can also help managers
to be better informed about actions
that a company’s competitors are taking.
 It helps analysts and managers to
determine which adjustments are
most likely to respond to
changing trends.

 IT can help companies develop a


more consistent, data-based
decision, which can produce better
results than making business
decisions by “guesswork”.
1) Dashboards
2) Key Performance Indicators
3) Graphical OLAP
4) Forecasting
5) Graphical Reporting
 BI DASH BOARDS:
 BI dashboards can provide a
customized snapshot of daily
operations, and assist the user in
identifying problems and the source
of those problems, as well as
providing valuable, up-to-date
information about financial results,
sales and other critical information –
all in one place
 KEY PERFORMANCE INDICATORS
 BI provides simplified KPI management and
tracking with powerful features, formulae and
expressions, and flexible frequency, and threshold
levels. This module enables clear, concise
definition and tracking of performance indicators
for a period, and measures performance as
compared to a previous period.
Intuitive, color highlighters ensure that users can see
these indicators in a clear manner and accurately
present information to management and team
members. Users can further analyse performance
with easy-to-use features like drill down, drill
through, slice and dice and graphical data mining
GRAPHICAL BI:
Graphical Business Intelligence (BI) OLAP
technology makes it easy for the users to
find, filter and analyse data, going beyond
numbers, and allowing users to visualize
the information with eye-catching,
stunning displays, and valuable indicators
and gauges, charts, and a variety of
graph types from which to choose
inFORECASTING &
PREDICTIVE ANALYSIS:
Predictive analysis uses historical
product, sales, pricing, financial,
budget and other data, and
forecasts the measures with
numerous time series options,
 Ex: year, quarter, month, week, day,
hour or even second to improve
your planning process.
BI REPORTS:
BI Reports delivers web-based BI
reports to anyone (or everyone) in the
organization within minutes!
The BI suite is simple to
use, practical to implement and affordable
for every organization. With our BI
reporting and performance reporting
module, you just point- and-click and
drag-and-drop and you can instantly
create a report to summarize your
performance metrics, or operational data
5. REAL-TIME BUSINESS
INTELLIGENCE:
Real-time business
intelligence (RTBI) is a concept
describing the process of delivering
business intelligence (BI) or
information about business
operations as they occur.
Real time means near to zero
latency and access to information
whenever it is required.
DATA LATENCY
 1. Data latency is the time it
takes for data Packets to be
stored or retrieved.
 2. In business intelligence (BI),
data latency is how long it takes
for a business user to retrieve
source data from a data
warehouse or business
intelligence dashboard.
HOW MANY MATCHES?
HOW MANY MATCHES NOW?
BI IN DECISION-MAKING:
With high consumer expectations in
the competitive market, decisions
that are based on the most current
data available improve customer
relationships, increase revenue,
maximize operational efficiency.
Real-time business intelligence
systems mainly provide the
information necessary to tactical take
advantage of events as they occur.
SIGNIFICANCE OF LATENCY IN BI:
 All real-time business intelligence systems
have some latency, but the goal is to minimize
the time from the business event happening to
a corrective action or notification being
initiated.
Analyst Richard Hackathorn describes three
types of latency:
1. Data latency: the time taken to collect and
store the data
2. Analysis latency: the time taken to analyze
the data and turn it into actionable
information
3. Action latency: the time taken to react to
the information and take action
 Real-time business intelligence
technologies are designed to reduce all
three latencies to as close to zero as
possible, whereas traditional business
intelligence only seeks to reduce data
latency and does not address analysis
latency or action latency since both are
governed by manual processes.
 Some commentators have introduced the
concept of right time business intelligence
which proposes that information should
be delivered just before it is required,
and not necessarily in real-time.
6) BUSINESS INTELLIGENCE
VALUE CHAIN:
 In Competitive Market place, it is
vital for every business enterprise
whether small or big to cope with
the pace of the market growth.
 This is why organizations are
becoming more dependent on data
or information for improving
development of product and services
that can outsell their competitors.
 Organizations are primarily relying on
analytical database solutions like
data warehouses. However, in the
entire process this information and
later applying them in action
describes a chain of methods called
value chain.
 Value chain is the process that
converts data into information and
then applies that knowledge in taking
productive business decision, and the
outcome is the ultimate value.
WHAT IS THE PRIMARY OBJECTIVE OF MOST
ANALYTIC DECISION SUPPORT SYSTEMS?
 Monitor the performance results of Key
Business Processes.
 Each business Process produces unique
metrics at unique time intervals with
unique granularity and dimensionality.
 Each process typically spawns one or
more fact tables
 Value chain provides high-level insight
into the overall enterprise data
warehouse.
Product – Chocolate
CONCEPT OF A CUBE OR Month – May 2017
PIVOT TABLE Region – Hyderabad
Measure – Sales
Month

Region

Product

How much Chocolate did we sell in the Hyderabad in May 2017?


BUSINESS INTELLIGENCE VALUE
CHAIN:
7) ARCHITECTURE BUSINESS
INTELLIGENCE:
 A business intelligence architecture is a
framework for organizing the data,
information management and
technology components that are used to
build business intelligence (BI) systems
for reporting and data analytics.
 The underlying BI architecture plays an
important role in business intelligence
projects because it affects development
and implementation decisions.
 The data components of a BI
architecture include the data
sources that corporate
executives and other end users
need to access and analyze to
meet their business
requirements.
 Important criteria in the source
selection process include data
currency, data quality and the
level of detail in the data.
 Both structured and unstructured
data may be required as part of a
BI architecture, as well as
information from both internal and
external sources.
END OF UNIT-1

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