Business Intelligence Lecture Notes PDF

1 Lesson 9 Business Intelligence from Data to governance ing. Massimiliano Oleotto Learning Objectives 2 Q1. Why is Data so important? Q2. Why is extracting Information from Data so important? Q3. What is Business Intelligence? Q4. Why is Business Intelligence so important? G1. Let’s give the...

1 Lesson 9 Business Intelligence from Data to governance ing. Massimiliano Oleotto Learning Objectives 2 Q1. Why is Data so important? Q2. Why is extracting Information from Data so important? Q3. What is Business Intelligence? Q4. Why is Business Intelligence so important? G1. Let’s give the floor to … Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q1. Why is Data so important? 3 Why is Data so important? Because: • an IS supports a Business Process through Information • the Information is extracted from the Data Therefore, if Data is poor, so will be: • the Information • the Business Process execution Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q1. Why is Data so important? 4 The Data is poor when it doesn’t verify Data Quality A poor Data is sometimes called “garbage” and “garbage” leads to the GIGO Model Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q1. Why is Data so important? 5 The Data verify Data Quality when it is: • • • • • Relevant → the Data must serve to the Information for which it is considered – otherwise it is useless and must be filtered Complete → there must be all the Data that serves to the Information – otherwise the Information is partial Accurate → the Data must be as correct as possible – there is always an error, but it must be small and measured Timely → the Data must be available when it is needed, not later Profitable → the cost of having the Data must be less than the value of the Information you extract from it Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q1. Why is Data so important? 6 How can Data Quality be improved? In two ways: • • collecting Data Categories → it’s about relevance and completeness of the Data improving Data Capture → it’s about accuracy, timeliness and cost of the Data Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q1. Why is Data so important? 7 Collecting Data Categories means having a clear vision of what Data serves to the Information we need Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q1. Why is Data so important? 8 Improving Data Capture means using automation as much as possible, e.g. with AIS Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Learning Objectives – Recap 1 9 Q1. Why is Data so important? • • • Data is so important because you can extract Information from it, and that Information can support the execution of a BP Data must not be poor, but relevant, complete, accurate, timely and profitable – this is called Data Quality Data Quality can be improved by collecting Data Categories and improving Data Capture Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q2. Why is extracting Information from Data so important? 10 Why is extracting Information from Data so important? Because: • an IS supports a Business Process through Information Therefore, if Information is poor because its extracting from Data is poor, so will be: • the Business Process execution Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q2. Why is extracting Information from Data so important? 11 The Information is poor due to its extracting Data when it is altered by the extraction process – in this case you have another version of the GIGO Model Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q2. Why is extracting Information from Data so important? 12 Information is not altered by its extraction process when: • the interpretation of the Data is correct → it is necessary to determine the correct meaningful patterns in the Data (Data Analysis) • the communication of the Information is correct → it is necessary to represent the meaningful patterns in the correct graphic forms (Data Visualization) Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q2. Why is extracting Information from Data so important? 13 So if you want to have correct Information, you need a process able to: • • • acquire (good) Data with Data Quality discover meaningful patterns with Data Analysis publish meaningful patterns with Data Visualization In a business context, this is a Business Process called Business Intelligence Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Learning Objectives – Recap 2 14 Q2. Why is extracting Information from Data so important? • • • Once you have the correct Data (Data Quality), it’s important to extract correctly the Information from it You can do it if you discover the correct meaningful patterns in the Data (Data Analysis) and publish them in the correct graphic form (Data Visualization) Business Intelligence, alias BI, is the process formed by Data Quality, Data Analysis and Data Visualization Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q3. What is Business Intelligence? 15 So Business Intelligence is: • [Intelligence] the process of acquiring, discovering and publishing Data that has meaningful patterns in order to have some Information • [Business] in a business context Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q3. What is Business Intelligence? 16 Business Intelligence is supported by an IS, that is a BI System Nowadays the IS is characterized by a Business Software that is used by a human for actual assessments: • • human can be a simple user or a more skilled Data Analyst actual assessments are based on past Data through business understanding Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q3. What is Business Intelligence? 17 ACQUIRING Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto DISCOVERING PUBLISHING Q3. What is Business Intelligence? 18 The 1st step of acquiring Data is called ETL and has these activities: • [Extract] collect Data → Data can originate from several sources, such as a DB or a text file, and it is very likely different • [Transform] cleanse Data → different Data must be made similar – both in format and quality • [Load] organize Data → Data are organized in a DWH – it’s a Data system specifically designed to Data Analysis Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q3. What is Business Intelligence? 19 A DWH is not a DB (!) Database Data Warehouse What is It’s a dynamic read/write Data system → it’s always online It’s a read-only static Data system → it can be an offline “snapshot” of a DB How it is used It collects detailed Data for transactional purposes It collects synthetic Data for analytical purposes How it is structured It’s built with related Tables It’s built with specific subunits (Data Mart) Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q3. What is Business Intelligence? 20 The 2nd step of discovering meaningful patterns is called OLAP and has activities with these features: • • • the analysis of an entity takes place from several perspectives it is carried out through elementary actions, like sorting, filtering, grouping, calculating, etc. it is repeated several times by a human Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q3. What is Business Intelligence? 21 We need a closer look to OLAP … Analysis OLAP features Perspectives The analysis concerns one or more values (Measures) of one or more elements (Dimensions) of an entity, that results in a structure called Info Cube – e.g. you can carry out a sales analysis by considering an Info Cube with year and customer as Dimensions, and revenue as Measure Actions The analysis has 3 basic operations: a) aggregate the Data in multiple Dimensions (roll-up); 2) detail the Data of a Dimension with another Dimension (drill-down); 3) extract a subset of Data (slicing) and view it (and dicing) – e.g. you can have different analysis such as sales by year, or sales by year detailed by customer, or sales of certain customers by year Repetitions The analysis is carried out with interactive reporting, that changes focus and form of the analysis – e.g. you can perform each analysis immediately one after the other (!) Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q3. What is Business Intelligence? 22 The 3rd step of publishing meaningful patterns is called Dashboarding and has just one activity, i.e. the representation of the meaningful patterns A Dashboard has these features: • it shows Data in a graphic way – like a Report • it uses a highly readable format – like a Presentation • it’s interactive – you carry on Analysis • Data is exportable – e.g. Spreadsheet Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q3. What is Business Intelligence? 23 Publishing is based on Data Visualization, that deals with how a graphic representation of Data can lead to the most understandable way in extracting Information from it Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q3. What is Business Intelligence? 24 New Business Software is recently appeared that is also able to automatically provide future predictions In this case you have: • Analytics instead of Data Analysis • that require Data Mining instead of OLAP Future predictions are still based on past Data but business understanding is used to extrapolate future Data Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q3. What is Business Intelligence? 25 Data Mining is a set of techniques for automatically finding meaningful patterns in Data – It has these characteristics: • meaningful patterns are unknown before mining • advanced statistical methods are used • there are various techniques whose description is beyond the scope of this course Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q3. What is Business Intelligence? 26 Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Learning Objectives – Recap 3 27 Q3. What is Business Intelligence? • • • BI is the process of acquiring, discovering and publishing Data that has meaningful patterns in order to have some Information... in a business context ETL acquires Data and organize it in a DWH, OLAP allows a human to discover meaningful patterns, and Dashboarding publishes them in the most understandable way BI refers to past Data, while Analytics add future predictions from it – they require Data Mining Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q4. Why is Business Intelligence so important? 28 Why is Business Intelligence so important? Because it’s able to: • provide the Information needed to make (better) decisions – affecting all levels (strategic, tactical and operational) • extracting them from Data especially from the ERP System but also from other ISs and other sources (emails, social media posts, machine signals, etc.) Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q4. Why is Business Intelligence so important? 29 Although BI is used to make decisions at all levels Because decisions are concentrated at the strategic level It is often identified with Governance, which is the Business Process that formulates and implements the business strategy Obviously ... that’s not correct (!) For example, there are BIs that allow you to evaluate: • [tactical level] the satisfaction of a customer • [operational level] the productivity of a resource and take action if they become “insufficient” Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q4. Why is Business Intelligence so important? 30 For Governance purposes, however, Business Intelligence can allow companies to make (better) decisions for their competitive advantage → that’s because you can: • • • • • • identify market trends analyze customer behavior compare with competitors improve operations monitor performances identify ways to increase profits Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q4. Why is Business Intelligence so important? 31 Of course … BI and its System can be quite complex (!) Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Q4. Why is Business Intelligence so important? 32 The new challenges for Business Intelligence – through Analytics, of course – are: • • • • Data from increasingly diversified sources and increasingly in real time → e.g. by obtaining it from the Internet increasingly simple analysis → e.g. with questions in natural language increasingly significant Information → e.g. by automatically defining the best view for a certain analysis increasingly widespread use → e.g. by bringing information where it is needed Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto Learning Objectives – Recap 4 33 Q4. Why is Business Intelligence so important? • • • BI is important because it allows you to better decide – extracting Information from various sources You can use BI in a company at all levels – one of the most important use is to support Governance The new challenges for BI are transforming it into... something we don’t know yet – we currently call it Analytics Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto G1. Let’s give the floor to … 34 … Massimo Businaro, president of E-project, a company located in Padua that creates organizational and IT solutions “centered” on BI Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto References 35 Course book: Earl McKinney Jr. • David M. Kroenke – Processes, Systems, and Information, An Introduction to MIS – Chapter 11 ❑ Other books: J. Glenn Brookshear • Dennis Brylow – Computer Science, An overview – Chapter 9 ❑ Marianne Bradford – Modern ERP, select implement & use today's advanced business systems – Chapter 12 ❑ Organization and Information Systems | a.y. 2023-2024 | Diego Campagnolo – Massimiliano Oleotto