Chapter 5

BI Definitions “Fundamentals of Business Analytics”

and Concepts RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
reserved.
Learning Objectives and Learning Outcomes
Learning Objectives Learning Outcomes
BI Definitions & Concepts
a) To understand the BI
1.BI Framework framework

2.Data Warehousing concepts and its role in b) To be able to apply best

BI practices in BI/DW

3.BI Infrastructure Components – BI Process

4.BI Technology

5.BI Roles & Responsibilities

6.Business Applications of BI

7.Best practices in BI/DW

Session Plan

Lecture time : 90 minutes approx.

Q/A : 15 minutes

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights reserved.
Agenda
• BI Framework
– Business Layer
– Administration and Operation layer
– Implementation layer
• Who is BI for?
– The growing Business Intelligence market
• Type of BI users
– Casual Users
– Power Users
• BI Applications
• BI roles and responsibilities
• BI DW Best practices
• Open source BI Tools
• Popular BI tools
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
BI Framework

Business Requirement
BI Architecture

Data Resource Administration Data Warehousing

Data Sources
Program Management

BI & DW Operations
Data Acquisition, Cleaning & Integration

Development
Data Stores

Information Services
Information Delivery Business Analytics

Business Applications

Business Value
“Fundamentals of Business Analytics”
Source: TDWI
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Business Layer

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Business Layer
Business requirements: The requirements are a product of three steps of a
process that includes:

 Business drivers (the impulses that initiate the need to act).

Examples: changing workforce, changing labor laws, changing
economy, changing technology, etc.
 Business goals (the targets to be achieved in response to the business
drivers).
Examples: increased productivity, improved market share, improved
profit margins, improved customer satisfaction, cost reduction, etc.
 Business strategies (the planned course of action that will help achieve
the set goals).
Examples: outsourcing, global delivery model, partnerships, customer
retention programs, employee retention programs, competitive pricing,
etc.
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Business Layer

Business Value: Business value can be measured in terms of ROI (Return on

Investment), ROA (Return on Assets), TCO (Total Cost of Ownership),
TVO (Total Value of Ownership), etc.

Program management: It is the component that ensures people, projects and

priorities work in a manner in which individual processes are compatible
with each other; so as to ensure seamless integration and smooth
functioning of the entire program.

Development: The process of development consists of database/data-

warehouse development (consisting of ETL, data profiling, data cleansing
and database tools), data integration system development (consists of data
integration tools and data quality tools) and business analytics development
(about processes and various technologies used).

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Explain

Explain the terms ROI, ROA, TCO and TVO giving appropriate examples

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Administration and Operation Layer

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Administration and Operations Layer

BI Architecture
Administration and Operations Layer

BI and DW operations: Data warehouse administration requires the usage

of various tools to monitor the performance and usage of the warehouse, and
perform administrative tasks on it. Some of these tools would be:
• Backup and restore
• Security
• Configuration management
• Database management
Data resource administration: Involves data governance and metadata
management.
Data governance is a technique for controlling data quality, which is used to
assess, improve, manage and maintain information. It helps to define
standards that are required to maintain data quality. The distribution of roles
for governance of data is as follows:
• Data ownership
• Data stewardship
• Data custodianship “Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Administration and Operations Layer

Metadata management: Metadata is data about data.

Metadata can be divided into four groups:

– Business metadata
– Process metadata
– Technical metadata
– Application metadata

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Answer a Quick Question

Given your understanding of RDBMS, explain metadata with an example

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Administration and Operations Layer
Metadata Management

Business Metadata Process Metadata

Data definitions Source/target maps
Metrics definitions Transformation rules
Subject models Data cleansing rules
Data models Extract audit trail
Business rules Transform audit trail
Data rules Load audit trail
Data owners/stewards, etc. Data quality audit
etc.

Technical Metadata
Application Metadata
Data locations
Data formats Data access history:
Technical names Who is accessing?
Data sizes Frequency of access?
Data types When accessed?
Indexing How accessed?
Data structures etc.
etc.

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright
15
 2011 Wiley India Pvt. Ltd. All rights
Explain

Explain the various types of metadata with appropriate examples

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Implementation Layer

DATA WAREHOUSING INFORMATION SERVICES

INFORMATION DELIVERY
DATA ACQUISITION,
DATA SOURCES CLEANING AND DATA STORES
INTEGRATION

BUSINESS ANALYTICS

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Implementation Layer

Data Source in New York

Data Source in Washington

Data Warehouse
Extract
Clean
Transform Query/
Load Report/
Refresh Analysis

Data Source in Philadelphia

Data Source in Chicago

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Implementation Layer

Information services:
• It is not only the process of producing information; rather, it involves
ensuring that the information produced is aligned with business
requirements and can be acted upon to produce value for the company.

• Information is delivered in the form of KPI’s, reports, charts, dashboards

or scorecards, etc., or in the form of analytics.

• Data mining is a practice used to increase the body of knowledge.

• Applied analytics is generally used to drive action and produce outcomes.

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Answer a Quick Question

Is BI only for managers?

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Who is BI for?

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Types of BI Users

Type of user Casual users/ Power users/Information

Information consumers producers
Example of Executives, managers, SAS, SPSS developers,
such users customers, suppliers, administrators, business
field/operation workers, analysts, analytical
etc. modelers, IT
professionals, etc.
Usage Information consumers Information producers
Data Access Tailor made to suit the Ad hoc/exploratory
needs of their respective
role
Tools Pre-defined Advanced Analytical/
reports/dashboards Authoring tools
Sources Data warehouse/Data Data Warehouse/Data
Marts Marts (both internal and
external)
BI Applications

BI applications can be divided into:

• Technology solutions
– DSS
– EIS
– OLAP
– Managed Query and Reporting
– Data Mining
• Business Solutions
– Performance Analysis
– Customer Analysis
– Market Place Analysis
– Productivity Analysis
– Sales Channel Analysis
– Behavioral Analysis “Fundamentals of Business Analytics”
– Supply Chain Analysis RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Explain

Explain giving suitable examples:

“Performance analysis”, “Customer analysis”, “Marketplace analysis”,
“Productivity analysis” and “Sales Channel analysis”

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
BI Roles and Responsibilities

Program Roles Project Roles

Business Manager
BI Program Manager BI Business Specialist
BI Data Architect BI Project Manager
BI ETL Architect Business Requirements Analyst
BI Technical Architect Decision Support Analyst
Metadata Manager BI Designer
BI Administrator ETL Specialist
Data Administrator

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
BI DW Best Practices

The list of best practices is adapted from an article TDWI’s FlashPoint

e-newsletter of April 10, 2003.

• Practice “User First” Design

• Create New Value
• Attend to Human Impacts
• Focus on Information and Analytics
• Practice Active Data Stewardship
• Manage BI as a long term investment
• Reach out with BI/DW solutions
• Make BI a business Initiative
• Measure Results
• Attend to strategic Positioning
“Fundamentals of Business Analytics”
RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Do It exercise

Visit www.tdwi.org to read more about BI DW best practices

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Open Source BI Tools

RDBMS MySQL, Firebird

Pentaho Data Integration (formerly

ETL Tools
called Kettle), SpagoBI

Analysis Tools Weka, RapidMiner, SpagoBI

Reporting Tools/Ad Hoc

Pentaho, BIRT, Actuate, Jaspersoft
Querying/Visualization

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights
Popular BI Tools

AB INITIO 3.0.2 SPOTFIRE (TIBCO) 3.2.x

INFORMATICA 9 SAS 9.2

NCR TERADATA 13 MICROSTRATEGY 9

MICROSOFT
SQL SERVER 2008 SSIS 2008 SSRS 2008 SSAS 2008

SAP SAP
BUSINESS
SYBASE IQ
OBJ ECTS 5.x

ORACLE
ORACLE 11G R2 ORACLE WAREHOUSE BUILDER SIEBEL 8.1 HYPERION 11.1.3

IBM
NETEZZA 4.6, DB2 DATASTAGE 8.5 COGNOS v10 SPSS 9

BIRT

PENTAHO RAPIDMINER

MYSQL WEKA

ANALYTICS,
ETL, DATA OLAP, REPORTING,
DBMS ANALYSIS VISUALIZATION,
INTEGRATION DATA WAREHOUSING AD HOC QUERYING MINING

Back End BI Functions Front End

Summary please…

Ask a few participants of the learning program to summarize the lecture.

“Fundamentals of Business Analytics”

RN Prasad and Seema Acharya
Copyright  2011 Wiley India Pvt. Ltd. All rights