BUSINESS INTELLIGENCE SYSTEM Introduction: The term business intelligence (BI) dates to 1958.

It refers to technologies, applications, and practices for the collection, integration, analysis, and presentation of business information and also sometimes to the information itself. The purpose of business intelligence is to support better business decision making. BI describes a set of concepts and methods to improve business decision making by using factbased support systems. BI is sometimes used interchangeably with briefing books, report and query tools and executive information systems. Business Intelligence systems are data-driven BI systems provide historical, current, and predictive views of business operations, most often using data that has been gathered into a data warehouse or a data mart and occasionally working from operational data. Software elements support reporting, interactive "slice-and-dice" pivot-table analyses, visualization, and statistical data mining. Applications tackle sales, production, financial, and many other sources of business data for purposes that include, notably, business performance management

History of Business Intelligence business is a collection of activities carried on for whatever purpose, be it science, technology, commerce, industry, law, government, defense, et cetera. The communication facility serving the conduct of a business (in the broad sense) may be referred to as an intelligence system. The notion of intelligence is also defined here, in a more general sense, as the ability to apprehend the interrelationships of presented facts in such a way as to guide action towards a desired goal. Prior to the start of the Information Age in the late 20th century, businesses had to collect data from non-automated sources. Businesses then lacked the computing resources to properly analyze the data, and as a result, companies often made business decisions primarily on the basis of intuition.

As businesses started automating more and more systems, more and more data became available. However, collection remained a challenge due to a lack of infrastructure for data exchange or to incompatibilities between systems. Analysis of the data that was gathered and reports on the data sometimes took months to generate. Such reports allowed informed long-term strategic decision-making. However, short-term tactical decision-making continued to rely on intuition. In modern businesses, increasing standards, automation, and technologies have led to vast amounts of data becoming available. Data warehouse technologies have set up repositories to store these data. Business intelligence has now become the art of sifting through large amounts of data, extracting pertinent information, and turning that information into knowledge from which actions can be taken. Business intelligence software incorporates the ability to mine data, analyze, and report. Some modern BI software allows users to cross-analyze and perform deep data research rapidly for better analysis of sales or performance on an individual, department, or company level. In modern applications of business intelligence software, managers are able to quickly compile reports from data for forecasting, analysis, and business decision-making. What Does BI Do? BI assists in strategic and operational decision making. The strategic use of BI in the following order; 1. Corporate performance management 2. Optimizing customer relations, monitoring business activity, and traditional decision support 3. Packaged standalone BI applications for specific operations or strategies 4. Management reporting of business intelligence The implication of this ranking is that ordinary reporting of your own and your competitors’ performance, which

is the strength of many existing software packages, is not enough. A second implication is that too many firms still view business intelligence

Business Intelligence Chart

Living in the exciting information age we are exposed to ever growing quantities of data, coming from an increased number of sources. As modern businesses are trying to gain a competitive edge in every operational aspect, marketing, customer-support, financials, production and HR management, the need for better information in-time increases. The objective of Business Intelligence (BI) systems is to collect raw data in a varying level of quality and present it in time as meaningful information in the format preferred by the company topic holders. BI tools help sales to customize offers, track success or failure of sales, set metrics to the company production, marketing and sales, anticipate and satisfy the customers' needs. In short - BI tools find what is right and more important what is wrong.

Business Intelligence System: Business intelligence systems combine operational data with analytical tools to present complex and competitive information to planners and decision makers. Their objective is to improve the timeliness and quality of the input to the decision process. Business Intelligence is used to understand the capabilities available in the firm; the state of the art, trends, and future directions in the markets, the technologies, and the regulatory environment in which the firm competes; and the actions of competitors and the implications of these actions .The emergence of the data warehouse as a repository, the advances in data cleansing, the increased capabilities of hardware and software, and the emergence of the web architecture all combine to create a richer business intelligence environment than was available previously. Business intelligence systems can help companies have a more

comprehensive knowledge of the factors affecting their business, such as metrics on sales, production, internal operations, and they can help companies to make better business decisions. Business intelligence is used to improve the timeliness and quality of information and enable managers to better understand the position of their firm in comparison to its competitors. Business Intelligence applications and technologies can help companies analyze the following: changing trends in market share, changes in customer behavior and spending patterns, customers' preferences, company capabilities and market conditions. Business intelligence can be used to help analysts and managers determine which adjustments are most likely to affect trends. Having access to timely and accurate information is an important resource for a company, which can expedite decision-making and improve customers' experience. The five key stages of Business Intelligence The following are the five key stages of Business Intelligence;

• • • • •

Data Sourcing Data Analysis Situation Awareness Risk Assessment Decision Support

Data sourcing Business Intelligence is about extracting information from multiple sources of data. The data might be: text documents - e.g. memos or reports or email messages; photographs and images; sounds; formatted tables; web pages and URL lists. The key to data sourcing is to obtain the information in electronic form. So typical sources of data might include: scanners; digital cameras; database queries; web searches; computer file access; etcetera. Data analysis Business Intelligence is about synthesizing useful knowledge from collections of data. It is about estimating current trends, integrating and summarising disparate information, validating models of understanding, and predicting missing information or future trends. This process of data analysis is also called data mining or knowledge discovery. Typical analysis tools might use:• • • •

probability theory - e.g. classification, clustering and Bayesian networks; statistical methods - e.g. regression; operations research - e.g. queuing and scheduling; artificial intelligence - e.g. neural networks and fuzzy logic.

Situation awareness Business Intelligence is about filtering out irrelevant information, and setting the remaining information in the context of the business and its environment. The user needs the key items of information relevant to his or her

needs, and summaries that are syntheses of all the relevant data (market forces, government policy etc.). Situation awareness is the grasp of the context in which to understand and make decisions. Algorithms for situation assessment provide such syntheses automatically. Risk assessment Business Intelligence is about discovering what plausible actions might be taken, or decisions made, at different times. It is about helping you weigh up the current and future risk, cost or benefit of taking one action over another, or making one decision versus another. It is about inferring and summarising your best options or choices. Decision support Business Intelligence is about using information wisely. It aims to provide warning you of important events, such as takeovers, market changes, and poor staff performance, so that you can take preventative steps. It seeks to help you analyse and make better business decisions, to improve sales or customer satisfaction or staff morale. It presents the information you need, when you need it. Business Intelligence technologies For a BI technology system to work effectively, a company should have a secure computer system which can specify different levels of user access to the data 'warehouse,' depending on whether the user is a junior staffer, a manager, or an executive. Also, a BI system should have sufficient data capacity and a plan for how long data will be stored (data retention). Analysts should set benchmark and performance targets for the system. Business intelligence analysts have developed software tools to gather and analyze large quantities of unstructured data, such as production metrics, sales statistics, attendance reports, and customer attrition

figures. Each BI vendor typically develops Business intelligence systems differently, to suit the demands of different sectors Business intelligence software and applications include a range of tools. Some BI applications are used to analyze performance, projects, or internal operations, such as AQL - Associative Query Logic, Scorecarding, Business activity monitoring, Business Performance Management and Performance Measurement, Business Planning, Business Process Re-engineering, Competitive Analysis, User/End-user Query and Reporting, Enterprise Management systems, Executive Information Systems (EIS), Supply Chain Management/Demand Chain Management, and Finance and Budgeting tools. Other BI technologies are used to store and analyze data, such as Data mining (DM), Data Farming, and Data warehouses; Decision Support Systems (DSS) and Forecasting; Document warehouses and Document Management; Knowledge Management; Mapping, Information visualization, and Dashboarding; Management Information Systems (MIS); Geographic Information Systems (GIS); Trend Analysis; Software as a service (SaaS) Business Intelligence offerings (On Demand) — which is similar to traditional BI solutions, but software is hosted for customers by a provider[3]; Online analytical processing (OLAP) and multidimensional analysis, sometimes called "Analytics" (based on the "hypercube" or "cube"); Real time business intelligence; Statistics and Technical Data Analysis; Web Mining; Text mining; and Systems intelligence. Other BI applications are used to analyze or manage the "human" side of businesses, such as Customer Relationship Management (CRM) and Marketing tools and Human Resources applications. Business intelligence tools Business intelligence tools are a type of application software designed to help the business intelligence (BI) business processes. Specifically they are

generally tools that aid in the analysis, and presentation of data. While some business intelligence tools include ETL functionality, ETL tools are generally not considered business intelligence tools. Currently organizations are starting to see that data and content should not be considered separate aspects of information management, but instead should be managed in an integrated enterprise approach. Enterprise information management brings Business Intelligence and Enterprise Content Management together. Types of business intelligence tools • Digital Dashboards - Also known as Business Intelligence Dashboards, Enterprise Dashboards, or Executive Dashboards, these are visuallybased summaries of business data that show at-a-glance understanding of business conditions through metrics and Key Performance Indicators (KPIs). A very popular BI tool that has arisen in the last few years. • Online Analytical Processing: Commonly known as OLAP (including HOLAP, ROLAP and MOLAP)- a capability of some management, decision support, and executive information systems that supports interactive examination of large amounts of data from many perspectives.[1] • • Reporting software generates aggregated views of data to keep the management informed about the state of their business. Data mining - extraction of consumer information from a database by utilizing software that can isolate and identify previously unknown patterns or trends in large amounts of data. There are a variety of data mining techniques that reveal different types of patterns.[2]. Some of the techniques that belong here are Statistical methods (particularly Business statistics) and Neural networks as very advanced means of analysing data. • Business performance management (BPM)

Open Source & Free Business Intelligence Products • • • • • • Free Web-based BI software application by LogiXML Eclipse BIRT Project: Eclipse-based open source reporting for web applications, especially those based on Java EE. OpenI: simple web application that does OLAP reporting Palo (OLAP database): Memory-based OLAP Server (MOLAP) with interface to Microsoft Excel, .NET, PHP, Java and C++ Pentaho: enterprise-class reporting, analysis, dashboard, data mining and workflow capabilities RapidMiner (formerly YALE): open-source software for intelligent data analysis, knowledge discovery, data mining, predictive analytics, and machine learning useful for business intelligence applications. • SpagoBI: a Business Intelligence Free Platform which uses many FOSS tools as analytical engines, integrating them in an infrastructure which offers a cross-operativeness and a consistent vision between Report,OLAP,Data Mining,Dashboard and over the DWH. Uses of Business Intelligence: Business intelligence usage can be categorized into the following categories: 1. Business operations reporting The most common form of business intelligence is business operations reporting. This includes the actuals and how the actuals stack up against the goals. This type of business intelligence often manifests itself in the standard weekly or monthly reports that need to be produced.

2. Forecasting Many of you have no doubt run into the needs for forecasting, and all of you would agree that forecasting is both a science and an art. It is an art because one can never be sure what the future holds. What if competitors decide to spend a large amount of money in advertising? What if the price of oil shoots up to $80 a barrel? At the same time, it is also a science because one can extrapolate from historical data, so it's not a total guess. 3. Dashboard The primary purpose of a dashboard is to convey the information at a glance. For this audience, there is little, if any, need for drilling down on the data. At the same time, presentation and ease of use are very important for a dashboard to be useful. 4. Multidimensional analysis Multidimensional analysis is the "slicing and dicing" of the data. It offers good insight into the numbers at a more granular level. This requires a solid data warehousing / data mart backend, as well as business-savvy analysts to get to the necessary data. 5. Finding correlation among different factors This is diving very deep into business intelligence. Questions asked are like, "How do different factors correlate to one another?" and "Are there significant time trends that can be leveraged/anticipated?" Conclusion: Business Intelligence is a process for increasing the competitive advantage of a business by intelligent use of available data in decision making. The purpose of

Business Intelligence tools is to maximize an organization’s competitive advantage from the data within its reach. Business intelligence usually refers to the information that is available for the enterprise to make decisions on. Business intelligence also includes the insight gained from doing data mining analysis, as well as unstructured data . Reference: 1. Hans Peter Luhn, “Business Intelligence System” IBM Journal ,1958 . 2. 3. 4. 5. Author: Prof. R. MOHANASUNDARAM & Prof. M. KUMARAVEL VSB Engineering College Karur