Introduction to BI (1).ppt

BUSINESS INTELLIGENCE UNDERSTANDING BUSINESS INTELLIGENCE A What is Business Intelligence?  An umbrella term that combines architectures, tools, databases, applications and methodologies in order to enable interactive access to data, to enable manipulation of data and to give business managers...

BUSINESS INTELLIGENCE UNDERSTANDING BUSINESS INTELLIGENCE A What is Business Intelligence?  An umbrella term that combines architectures, tools, databases, applications and methodologies in order to enable interactive access to data, to enable manipulation of data and to give business managers the ability to make more informed and better business decisions (Turban, 2010) Business Intelligence Process The architecture of Business Intelligence A Business Intelligence system has four major components 4 Major Components of Business Intelligence Architecture 1. The data warehouse is a special database or repository of data that had been prepared to support decision making applications ranging from simple reporting to complex optimization 4 Major Components of Business Intelligence Architecture 2. Business analytics are the software tools that allow users to create on-demand reports, queries and conduct analysis of data: • Originally they appear under the name online analytical processing (OLAP) • Data Mining - A class of information analysis based on databases that looks for hidden patterns in a collection of data which can be used to predict future behavior 4 Major Components of Business Intelligence Architecture 3. Business performance management (BPM) based on balanced scorecard methodology (BSC) – is a strategy performance management tool that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions (wikipedia) The objective is to optimize overall performance of an organization. A real-time system that alert managers to potential opportunities, impending problems, and threats, and then empowers them to react based on these knowledge. BPM- Balance Scorecards The architecture of Business Intelligence 4. User interface allows access and easy manipulation of BI components Tools used to broadcast information Data visualization provides graphical, animation, or video presentation of data and the results of data analysis The ability to quickly identify important trends in corporate and market data can provide competitive advantage http://dashboardspy.com/img/terrorism-dashboard.jpg Relation between BI and DSS Their architectures are very similar because BI evolved from DSS DSS directly support specific decision making, while BI provides accurate and timely information, and indirectly support decision making BI has an executive and strategy orientation, especially in its BPM and dashboard components, while DSS, in contrast, is oriented toward analysts Relation between BI and DSS Most BI systems are constructed with commercially available tools and components, while DSS is often built from scratch DSS methodologies and even some tools were developed mostly in the academic world, while BI methodologies and tools were developed mostly by software companies Many of the tools that BI uses are also considered DSS tools (e.g., data mining and predictive analysis are core tools in both) BI is a result of a continuous revolution and, as such, DSS is one of BI's original elements The Benefits of BI Time savings Single version of truth Improved strategies and plans Improved tactical decisions More efficient processes Cost savings Faster, more accurate reporting Improved decision making Improved customer service Increased revenue Assessing the value of BI • The methodologies of assessing BI values are complex – difficult to measure success due to many intangible benefits • One way to present the business value of BI is to pose business questions and show how they are answered with the support of BI The Major Theory of Business Intelligence  BI is not transaction processing, hence OLTP vs. OLAP OLAP OLTP OLTP vs. OLAP  Online Transaction Processing Systems (OLTP)  Systems that handle a company’s routine ongoing business.  Online transaction processing is the use of information systems to handle a company’s routine, on-going business activities through recording data about events that take place in the course of business operations as they occur and using that data in other business operations. OLTP vs. OLAP  Online Analytic Processing (OLAP)  An information system that enables the user, while at a PC, to query the system, conduct an analysis, and so on.  Online analytical processing is the use of information systems to analyze, with human guidance, historical data obtained through ongoing business activities and other sources to use as a basis for decision making. BI Users  There are three major types of BI users: 1. IT staff -the developers and administrators of the tools to be used by the others. 2. Power users - people such as business analysts who have advanced skills in the use of BI tools and use them regularly. 3. Executives top managers of any organization. Their needs are typically met by tools such as dashboards, which display measurements of critical success factors and let users “drill down” into areas that catch their interest.