OSCM 603: Business Intelligence Introduction Lecture 1 PDF

Lecture 1 OSCM 603: Business Intelligence Introduction Prof. Awuni Emmanuel OSCM 603: Business Intelligence Overvie wBusiness intelligence Overview? BI process, system components, technologies, and applications Types of Data BI industry, market, and career O...

Lecture 1 OSCM 603: Business Intelligence Introduction Prof. Awuni Emmanuel OSCM 603: Business Intelligence Overvie wBusiness intelligence Overview? BI process, system components, technologies, and applications Types of Data BI industry, market, and career OSCM 603: Business Intelligence 2 OSCM 603: Business Intelligence Introduction: Evolution of BI The search for the perfect “business insight system” 1980s  Executive information systems (EIS), Decision support systems (DSS) 1990s  Data warehousing (DW), Business intelligence (BI) 2000s  Dashboards and scorecards, Performance management 2010+??  Big data, Mobile BI, Personal BI, … “With each new iteration, capabilities increased as enterprises grew ever-more sophisticated in their computational and analytical needs and as computer hardware and software matured.” Solomon Negash (2004), Business Intelligence, CAIS (13) OSCM 603: Business Intelligence 4 DIK WData: raw value elements or facts Information: the result of collecting and organizing provides data thatcontext and meaning Knowledge: the concept of understanding information that insight to information, thus useful and actionable provides Wisdom: What is best in doing the right thing. Analytic Wisdom al Processi ng Transacti OSCM 603: Business Intelligence 5 What is Business Intelligence? Business Intelligence is a set of methods, processes, architectures, applications, and technologies that dat gather and transform raw a into meaningful and useful information used to enable more decisio strategic, tactical, and effective n operational insights and -making (for business Adapted from Forrester Report “Topic Overview: Business Intelligence”, operations and growth). 2008 OSCM 603: Business Intelligence 6 Additional Notes about BIumbrella term for a set of BI is the an methods, processes, applications, and technologies used to gather, provide access to, and analyze data and information support decision making Narrowly speaking, intelligence comes from data (facts). In this sense, BI focuses on analytical processing. Broadly speaking, intelligence, or knowledge, also comes from human experience and tacit knowledge. In this sense, BI is also related to knowledge management (either BIBusiness OSCM 603: underIntelligence KM or vice versa) 7 http://capstone.geoffreyanderson.net/export/19/trun Data Processing types Types of Information Processing Transactional Processing Focus on routine Analytical processing: data Processing insertion, modification, Focus on reporting, deletion, and analysis, transmission transformation, and decision support OSCM 603: Business Intelligence 8 Business Intelligence One ultimate use of the data gathered and processed in the data life cycle is for business intelligence. Business intelligence generally involves the creation or use of a data warehouse and/or data mart for storage of data, and the use of front-end analytical tools such as Oracle’s Sales Analyzer and Financial Analyzer or Micro Strategy’s Web. Such tools can be employed by end users to access data, ask queries, request ad hoc (special) reports, examine scenarios, create CRM activities, devise pricing strategies, and much more. OSCM 603: Business Intelligence How business intelligence works? The process starts with raw data which are usually kept in corporate data bases. For example, a national retail chain that sells everything from grills and patio furniture to plastic utensils had data about inventory, customer information, data about past promotions, and sales numbers in various databases. Though all this information may be scattered across multiple systems-and may seem unrelated-business intelligence software can being it together. This is done by using a data warehouse. In the data warehouse (or mart) tables can be linked, and data cubes are formed. For instance, inventory information is linked to sales numbers and customer databases, allowing for deep analysis of information. OSCM 603: Business Intelligence  Using the business intelligence software the user can ask queries, request ad-hoc reports, or conduct any other analysis. For example, deep analysis can be carried out by performing multilayer queries. Because all the databases are linked, one can search for what products a store has too much of, determine which of these products commonly sell with popular items, bases on previous sales. After planning a promotion to move the excess stock along with the popular products (by bundling them together, for example), one can dig deeper to see where this promotion would be most popular (and most profitable).The results of the request can be reports, predictions, alerts, and/or graphical presentations. These can be disseminated to decision makers to help them in their decision-making tasks. OSCM 603: Business Intelligence  Difference between Business Intelligence and Data Science OSCM 603: Business Intelligence Dat aTypes of data Structured vs unstructured Numeric vs textual Internal vs external data Transactional systems vs paper based data Common data problems Don’t have that data  The collection of data may need additional process and is costly. Information overloading  too much data and information  difficulty of data organization for effective access and retrieval  difficult to find useful information (knowledge) from them Data everywhere  Data in separate systems and different sources  Problem of spreadmart http://en.wikipedia.org/wiki/Spreadmart OSCM 603: Business Intelligence Difficulty of access 1  Structured and Unstructured Data Structured Data: is data that, because of what it represents and its format, can be categorized, defined and stored in a consistent structure, such as a database management system (DBMS). Unstructured data: is data that doesn’t have any pre-defined structure to it and comes in all its diversity of forms. The examples of unstructured data vary from imagery and text files like PDF documents to video and audio files, to name a few. OSCM 603: Business Intelligence OSCM 603: Business Intelligence Numeric and textual Data Numeric Data: Numerical data is a data type expressed in numbers, rather than natural language description. Sometimes called quantitative data, numerical data is always collected in number form. Textual data: Textual data is a data type expressed in text or a natural language description. Sometimes called qualitative data. OSCM 603: Business Intelligence Numeric and textual Data OSCM 603: Business Intelligence Internal and External Data Internal Data: Internal data are stored for the most part in the databases, referred to as transactional systems or operational systems, that are the backbone of an enterprise information system. Internal data are gathered through transactional applications that routinely preside over the operations of a company, such as administration, accounting, production and logistics Extrnal data: There are several sources of external data that may be used to extend the wealth of information stored in the internal databases. For example, some agencies gather and make available data relative to sales, market share and future trend predictions for specific business industries, as well as economic and financial indicators. OSCM 603: Business Intelligence Decision Making Decisions can be made based on Facts, or data Intuition, perception, sense Group negotiation Traditionally BI has been also understood as Decision Support System (DSS) – known as data driven DSS. A brief history of DSS: http://dssresources.com/history/dsshistory.html Problem A gap between data and knowledge (useful information leading to a OSCM 603: decision). Business Intelligence 1 Need good analytical processing and models Decision Making The main purpose of BI is to provide knowledge workers with tools and methodologies that allows them to make: Effective Decisions: The application of rigorous analytical method allows decision makers to rely on information and knowledge which are more dependable Timely Decisions: Enterprises operate in economic environments characterized by growing levels of competition and high dynamism. As a consequence, the ability to rapidly react to the actions of competitors and OSCM 603: Business to new market Intelligence Benefit of Business Intelligence OSCM 603: Business system Intelligence Lets Discuss this ……… Business Case OSCM 603: Business Intelligence  BI Capabilities OSCM 603: Figure from: Business Intelligence, Rajiv Sabherwal, Business Intelligence Irma Becerra-Fernandez, John Wiley & Sons, 2011 http://books.google.com/books?id=T-JvPdEcm0oC 1  BI: A General Process Information -> knowledge: The process involves analytical Data -> information: components, such as OLAP, data The process of determining what data is to be collected quality, data profiling, business rule and managed and in what analysis, and data mining context OSCM 603: Business Intelligence Figure from Database Processing13th Edition, by David Kroenke and 1 BI System A BI system is a computer information system that implements and realizes all of its capabilities BI System Values Provide an integrated data (analytical) processing platform Enable easy access of data and information at all levels (raw data, analysis results, metrics, etc.) Streamline a controlled and managed process of data OSCMdriven decision 603: Business Intelligence making BI System The architecture of BI system includes three components: Data Sources Data warehouse and Data Mart BI methodologies BI System Values Provide an integrated data (analytical) processing platform Enable easy access of data and information at all levels (raw data, analysis results, metrics, etc.) Streamline a controlled and OSCM 603: Business managed Intelligence BI System at a Glance Typical BI Architecture OSCM 603: Business Intelligence  BI System at a Applicatio Glance Data ns Performance Gathering Presentatio management and n Benchmarking Managemen Market research CRM t Strategic management Web site analytics Website Operational data Query Reports Reporting Data warehouse OLAP Information server Data modeling Business visualization Application Data governance analytics Dashboard server Users with Data integration Data mining Scorecards BI server applications Information Visual analytics Strategy map Portal (browser, desktop manage Excel services app, mobile app, email, etc.) and devices (computer, Analytic Manageme tablet, phone, print- al nt and outs, etc.) Processin Delivery g BI System at a Glance OSCM 603: Business Intelligence Data Gathering and Integration Enterprise level data are coming from multiple different sources, but need to be combined and associated. Operational databases Spreadsheets Text, CSV PDF, Paper The need to bring together different data/information Autonomous Distributed Different General processing - ETL Extraction: accessing and extracting the data from the source systems, including database, flat files, spreadsheets, etc. Transformation: data cleanse, change the extracted data to a format and structure that conform to the destination data. Loading: load the data to the destination database, and check for data integrity OSCM 603: Business Intelligence  Reporting and Delivery BI reporting is about managing and delivering analysis results to users Live example: https://discoverer.gsu.e du Live example: https://www.itdashboard.g ov/ OSCM 603: Business Intelligence Figure from Database Processing13th Edition, by David Kroenke and 2 BI Applications Business management Logistics Performance Supplier and management vendor Strategy management management Benchmarking Shipping and inventory control Marketing and sales Web site CRM Customer behavior management analysis Web analytics Targeted marketing Security and sales strategies management Customer profiling Healthcare Collaborative filtering management Traffic Financial management OSCM 603: Business Intelligence 2 Education BI Users Super/power users v s average users Technical vs business users OSCM 603: Business Intelligence http://www.bileader.com/Dashboards. 2  BI Tools and System Framework OSCM 603: Business Intelligence http://www.b-eye-network.com/blogs/eckerson/archives/2013/03/a_guide_fo 2 r_bi.php BI Market 2013 2013 2012 2012- Company Revenue Market Revenue 2013 Share Growth (%) (%) SAP 3,057.0 21.3 2,902.0 5.3 Oracle 1,994.0 13.9 1,952.0 2.1 IBM 1,820.0 12.7 1,735.0 4.9 SAS Institute 1,696.0 11.8 1,600.0 6.0 Microsoft 1,379.0 9.6 1,190.0 15.9 Others 4,422.0 30.8 3,932.0 12.5 Total 14,368.0 100.0Intelligence OSCM 603: Business 13,311.0 7.9  Gartner Magic Quadrant The big four mega- IBM Cognos vendors Microsoft SQL Server Oracle OBIEE (purchased Hyperion) SAP Business Objects SAS SAS OSCM 603: Business Intelligence http://www.tableausoftware.com/reports/gartner-quadran 2 t-2014 BI Careers Typical BI positions BI solution architects and integration specialists Business and BI analysts BI application developers and testers Data warehouse specialists Database analysts, developers and testers Database support specialists OSCM 603: Business Intelligence  What are Employers Looking For? Data from BI Congress III SurveyOSCM 603: Business Intelligence 3 2013 Critical Knowledge and Skills Technical knowledge Knowledge of database systems and data warehousing technologies Ability to manage database system integration, implementation and testing Ability to manage relational databases and create complex reports Knowledge and ability to implement data and information policies, security requirements, and state and federal regulations Solution development and management Working with business and user requirements Capturing and documenting the business requirements for BI solution Translating business requirements into technical requirements BI project lifecycle and management Business and Customer Skills and Knowledge Effective communication and consultation with business users Understanding of the flow of information throughout the organization Ability to effectively communicate with and get support from technology and business specialists Ability to understand the use of data and information in each organizational units OSCM 603: Business Intelligence Ability to train business users in information management and Where to Take BI Courses Data from BI Congress III Survey 2013 OSCM 603: Business Intelligence Good BI Resources General overview BI introduction video by Jared Hillam (Intricity): http://www.youtube.com/watch?v=LFnewuBsYiY History of BI (casual video with good visuals): http://www.youtube.com/watch?v=_1y5jBESLPE Wikipedia: http://en.wikipedia.org/wiki/Business_intelligence https://www.youtube.com/watch?v=LhZX0MAYKp8 Organizations The Data Warehousing Institute: http://tdwi.org BI specific web sites ACM techpack: http://techpack.acm.org/bi/ Dataversity: http://www.dataversity.net/ Business intelligence resources: http://www.businessintelligence.com/ DSS Resources: http://dssresources.com/ Data warehouse world: http://www.dwhworld.com http://businessintelligence.com/ Industry expert Howard Dresner: http://dresnerblog.com Vendor resources http://sapbiblog.com/ http://www.microsoft.com/en-us/server-cloud/solutions/business-intelligence http://www-03.ibm.com/software/products/en/category/business-intelligence http://www.oracle.com/us/solutions/business-analytics/business-intelligence/overview/i ndex.html OSCM 603: Business Intelligence Assignment BI vs Data warehouse Data Analytics Data mining Data science OSCM 603: Business Intelligence Next Week Data Warehousing OSCM 603: Business Intelligence