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What is Business Intelligence<br />Business Intelligence (BI) is about getting the right information, to the right decision makers, at the right time. <br />BI is an enterprise-wide platform that supports reporting, analysis and decision making.<br />BI leads to:<br /> fact-based decision making<br />“single version of the truth”<br />Business Intelligence 101<br />
What is Business Intelligence<br />Making useful, actionable insight from stored data.<br />Allows effective business decisions to be made. <br />The act of using historical data to gain new information. <br />Techniques include:<br /> multidimensional analyses<br />mathematical projection<br /> modeling<br /> ad-hoc queries <br />'canned' reporting<br />Dashboards<br />Business Intelligence 101<br />
5<br />Questions BI is Designed to Answer<br /><ul><li>What happened?
What do I want to happen?</li></ul>Past<br />Present<br />Future<br />Data<br />ERP<br />3Pty<br />SCM<br />Black books<br />CRM<br />
Questions BI is Designed to Answer<br />A BI solution, with the right data and features, should be able to take operational data and enable users to answer specific questions such as: <br />Sales and marketing<br />Which customers should I target? <br />What has caused the change in my pipeline? <br />Which are my most profitable campaigns per region?<br />Did store sales spike when we advertised in the local paper or launched an email campaign?<br />What is the most profitable source of sales leads and how has that changed over time? <br />
Questions BI is Designed to Answer<br />Operational <br />Which vendors are best at delivering on time and on budget?– How many additional personnel do we need to add per store during the holidays?<br />Which order processing processes are most inefficient?<br /> Financial <br />What is the fully loaded cost of new products?<br /> What is the expected annual profit/loss based on current marketing and sales forecasts?<br /> How are forecasts trending against the annual plan?<br />What are the current trends in cash flow, accounts payable and accounts receivable and how do they compare with plan?<br />Overall business performance<br /> What are the most important risk factors impacting the company’s ability to meet annual profit goals?<br /> Should we expand internationally and, if so, which geographic areas should we first target?<br />
8<br />Business Intelligence Vision<br />Improving organizations by providing business insights to all employees leading to better, faster, more relevant decisions<br />Advanced Analytics<br />Self Service Reporting<br />End-User Analysis<br />Business Performance Management<br />Operational Applications <br />Embedded Analytics<br />
10<br />Examples of BI<br />Microsoft BI Platform<br />
4 Types of Users<br />Executives : Information is summarized and has been defined for them. Users have the ability to view static information online and/or print to a local printer.<br />Casual UsersCasual users require the next level of detail from the information that is provided to viewers. In addition to the privileges of a viewer, casual users have the ability to refresh report information and the ability to enter desired information parameters for the purposes of performing high-level research and analysis.<br />Functional UsersFunctional users need to perform detailed research and analysis, which requires access to transactional data. In addition to the privileges of a casual user, functional users have the ability to develop their own ad hoc queries and perform OLAP analysis.<br />Super UsersSuper users have a strong understanding of both the business and technology to access and analyze transactional data. They have full privileges to explore and analyze the data with the BI applications available to them.<br />Business Intelligence Users<br />
Business Intelligence 101<br />Garbage in Garbage Out<br />Transform data in to actionable insight.<br />
The Five Stages of BI<br />BI involves five stages of taking raw data and presenting it as relevant, actionable insight to users. <br />
The 5 Stages of Business Intelligence<br />1.The Data: defining which data will be loaded into the system and analyzed.<br />Where all information is stored<br />Technology dependent<br />MSSQL, MYSQL, Oracle, Red Brick, DB2<br />Often an OLAP type data source<br />Many rows of often summarized data<br />Utilize database queries to retrieve data from the source. <br />SQL – MSSQL and MYSQL<br />PL/SQL – Oracle<br />
The 5 Stages of Business Intelligence<br />OLTP <br />Online Transaction processing<br />Typically not your reporting database. <br />Processes transactions fast for application<br />Example<br />Retail POS system<br />Web Site<br />Online Transaction Processing has two key benefits: <br />Simplicity <br />efficiency<br />OLAP <br />Online Analytical Processing<br />Used for reporting <br />May form base of data warehouse or BI tools<br />Not used for transaction processing. <br />Databases configured for OLAP use a multidimensional data model, allowing for complex analytical and ad-hoc queries with a rapid execution time<br />
The 5 Stages of Business Intelligence<br />2.The ETL (Extract, Transform, and Load) Engine: moving the source data to the Data Warehouse. <br />This can be a complex step involving modifications and calculations on the data itself.<br /> If this step doesn’t work properly, the BI solution simply cannot be effective.<br />3.Data Warehousing: <br />connects electronic data from different operational systems so that the data can be queried and analyzed over time for business decision making.<br />A data warehouse is an analytically oriented, integrated, time-variant, and nonvolatile collection of data that supports decision making processes <br />Large databases that aggregate data collected from multiple sources<br />
The 5 Stages of Business Intelligence<br />4.Analytic Engine: <br />analyzes multidimensional data sets found in a data warehouse to identify trends, outliers, and patterns.<br />Data Mining<br />is the process of extracting patterns from data. Data mining is becoming an increasingly important tool to transform this data into information. It is commonly used in a wide range of profiling practices, such as marketing, surveillance, fraud detection and scientific discovery.<br />Data mining can be used to uncover patterns in data but is often carried out only on samples of data. The mining process will be ineffective if the samples are not a good representation of the larger body of data. <br />Data mining cannot discover patterns that may be present in the larger body of data if those patterns are not present in the sample being "mined". <br />
The 5 Stages of Business Intelligence<br />5.Presentation Layer: <br />the dashboards, reports and alerts that present findings from the analysis.<br />Typically Technology Agnostic <br /> The presentation layer is for the user. <br />It does not care <br />How? <br />When ? <br />Where? <br />Why?<br />the user accesses the Information just that it is available.<br />
The 5 Stages of Business Intelligence<br />5.Presentation Layer: <br />Interactive Dashboards:<br />A dashboard is a set of high-level reports on key metrics, typically for managers.<br />There may be multiple reports on a single dashboard, much the same way that a car’s dashboard has multiple gauges and displays on it. <br />With a dashboard, users can gain an at-a-glance understanding of key trends and metrics. Dashboards can be customizable to work for anyone in an organization, from a sales rep or frontline operations manager to a middle manager or senior executive.<br />An “interactive” dashboard allows users to take those dashboard reports and filter information to more deeply analyze trends and results, or to “drill down” into deeper and more detailed analysis of the data. <br />That is, by clicking on the particular reports or results, they can explore more detailed information to find root causes of results.<br />
The 5 Stages of Business Intelligence<br />5.Presentation Layer: <br />Customizable Reports:<br /> which can present high-level findings as well as enable a user to drill down to find specific details. Most BI systems either come with report templates and/or provide the capability to create and customize reports. <br />Alerts:<br /> notifying users to changes selected as key to meeting user goals. Alerts can be set to warn users on an imminent event, changes to data, or that new data needs to be entered into the system.<br />
The 5 Stages of Business Intelligence<br />Microstrategy<br />Cognos<br />Oracle – OBIEE<br />Microsoft SQL BI Suite<br />SAP – Business Objects<br />Pentaho – Open Source Alternative<br />
Data Mining Example in use<br />Product Decision Matrix<br />Customer Cancelation Prediction Engine – Early EFT Cancelation<br />EFT Geographic Demographic Process. <br />Revenue Per Bed<br />DSS vs Data Mining<br />
Conclusion<br />Business Intelligence solutions make it possible for groups within organizations to gain actionable insight from business data, and to leverage these insights to meet critical goals.<br />Business intelligence solutions offer business-focused analysis at a scale, complexity, and speed that is not achievable with basic operational systems reporting or spreadsheet analysis, thereby delivering significant value.<br />