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Business Intelligence (BI) is a terminology representing a collection of processes, tools and technologies helpful in
achieving more profit by considerably improving the productivity, sales and service of an enterprise. With the help of
BI methods, the corporate data can be organized, analyzed in a better way and then converted into an useful
knowledge of information needed to initiate a profitable business action. Thus it is about turning a raw, collected
data into an intelligent information by analyzing and re-arranging the data according to the relationships between
the data items by knowing what data to collect and manage and in what context.
Importance of Business Intelligence:
A company's collected raw data is an important asset where one can find solutions to many of an organizations
critical questions like 'what was the net profit for a particular product last year and what will be sales this year and
what are the key factors to be focused this year in order to increase the sales?'. So there arises a necessity of a
well planned BI system which can lead to a greater profitability by reducing the operating costs, increasing the sales
and thereby improving the customer satisfaction for an enterprise.
With the help of a Business Intelligence System, a company may improve its business or rule over its competitors
by exploring and exploiting its data to know the customer preferences, nature of customers, supply chains,
geographical influences, pricings and how to increase its overall business efficiency.
Business Intelligence & Return on Investment (ROI):
Business Intelligence enables us to take some action based on the intelligence acquired using BI strategy. If this
knowledge or information is not utilized properly in the right direction, there is no point in analyzing and finding the
intelligence. For example, lets assume a company has implemented a BI system to analyze the customer interests
and requirements enabling them to promote a particular product in the near future. All the analysis and knowledge
management will be pointless and a waste of investment if they dont have a proper plan to approach the right
customer at the right time. So Business Intelligence is all about strategies in increasing business efficiency while
vastly cutting down the operating costs.
Implementing a Business Intelligence system in an organization requires a significant amount of money to be
invested in order to build and implement a BI system and its applications. It requires more skilled top level
managers to build a ROI(Return on Investment) model to analyze the costs involved in implementing and
maintaining these BI models and methods to get the return on investment sooner.
A proper business action should be taken based on the strategies derived with the help of these intelligence models.
Often an erroneous model and wrong assumptions can bring a loss much greater than building the entire Business
Intelligence system itself. Once everything is done more properly in a way an organization want them to be, then the
benefit that comes out of it is priceless.
Business Intelligence is all about converting large amounts of corporate data into useful information, thereby
triggering some profitable business action with the help of knowledge acquired through BI analysis. Implementing BI
is a long process and it requires a lot of analysis and investment. A typical BI environment involves business
models, data models, data sources, ETL, tools needed to transform and organize the data into useful information,
target data warehouse, data marts, OLAP analysis and reporting tools. Setting up a Business Intelligence
environment not only rely on tools, techniques and processes, it also requires skilled business people to carefully
drive these in the right direction. Care should be taken in understanding the business requirements, setting up the
targets, analyzing and defining the various processes associated with these, determining what kind of data needed
to be analyzed, determining the source and target for that data, defining how to integrate that data for BI analysis
and determining and gathering the tools and techniques to achieve this goal.
Following sections explain each of these areas in detail and the sample figure shows a BI environment in its
simplest form.
Sample Business Intelligence Environment
Business Modeling:
Business Modeling depicts the overall picture of a business like what is it about, what specific business problem it is
intend to solve and how the information flows from source to destination. Business modeling involves business
models and diagrams that provide information in a graphical way to the members of an organization to understand
and communicate the business rules and processes effectively. Business process modeling, process flow modeling
and data flow modeling are sub-categories of business modeling. It is not necessary for the business modeling to go
into the details of the project and often it will hide the programming complexities required to achieve the task.
Business Modeling strategies and the underlying business models differ from one organization to other depending
upon their needs and goals.
Business Process Modeling:
A business process modeling is a group of related activities or business processes. Business processes are visually
represented as diagrams of simple box with arrow graphics and text labels, better known as Business Process Models.
Dimensional Modeling:
Dimensional Model comprises a fact table and many dimension tables and is used for calculating summarized data.
Since Business Intelligence reports are used in measuring the facts(aggregates) across multiple dimensions,
dimensional data modeling is the prefered modeling technique in a BI environment. A Fact table contains various
measures or facts like sales amount, loan amount etc., whereas a Dimension table describes the particular entity
like time, state etc., based on which the required facts are measured.
Star Schema:
In a Dimensional Data Model, a fact table is the centralized table which is connected to multiple dimensions related to that
fact. This type of approach is known as the Star Schema design based on which data warehouse and data marts are built.
Since BI takes advantage of data displayed in the form of mutli-dimensional cubes, this star schema approach helps
analyze and produce complex reports very easy by slicing and dicing the dimensions of interest. From the sample diagram
shown below, the required Fact 'Loan Amount' can be calculated across various dimensions like state, branch, time,
product, loan officer and investor dimensions.
Sample Star Schema Diagram
ETL Process:
ETL, an acronym for 'Extraction, Transformation and Loading' is a collection of processes associated with extracting
the source data, transforming that data and finally loading that data into a data warehouse. Before loading the
required into data warehouse, it should be transformed in order to meet the needs of the data warehouse. This
transformation involves several processes like data cleansing, data profiling, data type conversion, validating for
referential integrity, performing aggregation if needed, denormalization and normalization.
Data Warehouse:
Data warehouse is a centralized repository where all the information for analysis is kept in an organization. This is
the data collected from variant sources for the purpose of analytical processing and reporting. This data is nonvolatile and a data warehouse is built on a dimensional data model. From this data warehouse, data can be
extracted for reporting needs with the help of query tools or many data marts can be built based on subject area
requirements.
Data Mart:
Data Mart is subject oriented, basically a sub-set of data warehouse, built for the purpose of analyzing a particular
line of business or department. It holds the data specific to a particular subject area like sales, purchase etc. Data
marts can be of derived from a data warehouse or built for the sole purpose of BI directly from the source and like
data warehouse, data marts are also constructed from dimensional data models.
What is OLAP?
OLAP, an acronym for 'Online Analytical Processing' is a technique by which the data sourced from a data
warehouse or data mart is visualized and summarized to provide perspective multidimensional view across multiple
dimensions. Generally OLAP refers to OLAP Tools (e.g. Cognos, Business Objects etc.,) that help to accomplish
these tasks. Since data warehouse is designed using a dimensional data model, data is represented in the form of
data cubes enabling us to aggregate facts, slice and dice across several dimensions. OLAP tools provide options to
drill-down the data from one hierarchy to another hierarchy.
For example sales amount can be calculated for a particular year or it can be drilled down to its next hierarchies like
month, week, day etc. In the same way, data can be rolled up for summarization from product to product group,
product group to product sub-class then from product sub-class to product class. Thus with this cube structure, data
can be viewed from multiple points providing the data analysts, a greater insight into data.
There are many OLAP hybrids or variants like MOLAP (Multidimensional OLAP), HOLAP(Hybrid OLAP),
ROLAP(Relational OLAP), DOLAP(Desktop OLAP or Database OLAP) available in the market and can be used
depending on the needs and requirements of an organization.
OLAP - Examples:
Topmost executives of an organization are really interested in aggregated facts or numbers to take decisions rather
than querying several databases (that are normalized) to get the data and do the comparison by themselves. OLAP
tools visualize the data in an understandable format, like in the form of Scorecards and Dashboards with Key
Performance Indicators enabling managers to monitor and take immediate actions. In todays business life, OLAP
plays a vital role by assisting decision makers in the field of banking and finance, hospitals, insurance,
manufacturing, pharmaceuticals etc., to measure facts across geography, demography, product, and sales.
OLAP can be performed in data warehouses that undergo frequent updates and that do not. Following are some of
the examples to show how OLAP solves complex queries involving facts to be measured across companys bestinterested dimensions.
Comparison of sales (fact) of a product (dimension) over years (dimension) in the same region
(dimension).
How may members (fact) have opened a savings account (dimension), in USA branch (dimension), over a
period (dimension)?
How many mortgage loans (fact) have been approved in fixed mortgage (dimension) or Adjustable Rate
Mortgage (dimension) in New York City (dimension), over a period (dimension)?
What is the total sales value (fact) of a particular product (dimension) in a particular grocery store
(dimension), over a period (dimension)?
What is the amount spent (fact) for a particular product promotion (dimension) in a particular branch
(dimension) or in a particular city (dimension), over a period (dimension)?
Data Mining is a set of processes related to analyzing and discovering useful, actionable knowledge buried deep
beneath large volumes of data stores or data sets. This knowledge discovery involves finding patterns or behaviors
within the data that lead to some profitable business action. Data Mining requires generally large volumes of data
including history data as well as current data to explore the knowledge. Once the required amount of data has been
accumulated from various sources, it is cleaned, validated and prepared for storing it in the data warehouse or data
mart. BI reporting Tools capture the required facts from these data to be used by the knowledge discovery process.
Data Mining can be accomplished by utilizing one or more of the traditional knowledge discovery techniques like
Market Basket Analysis, Clustering, Memory Based Reasoning, Link Analysis, and Neural Networks and so on.
Data Mining Life Cycle:
Find out the Business Problem: Consider a company's current year sales dropped by a percentage
when compared to the previous year. By using OLAP Tools, the exact sales fact can be determined across
several dimensions like region, time etc.
Knowledge Discovery: Given this business problem, various reasons for the decrease in sales have to be
analyzed utilizing one or more of the Data Mining Techniques. Causes may include poor quality or service
of the product or flaws in marketing schemes or less demand for the product or seasonal changes or
regulations enforced by the Government or competitors pressure, and so on. The exact solutions have to
be found out in order to resolve this sales drop, which we call it as the Knowledge Discovery here.
Implement the Knowledge: Based on above discovery, proper actions should be taken in order to
overcome the business problem.
Analyze the Results: Once it is been implemented, results need to be monitored and measured to find out
outcomes of that action.
How to write the join condition to join (inner join, outer join, equi join) different tables in select statement?
How to write the filters (null, in, equal to, greater than) that are required after the where clause?
How to create computer items like date functions, numeric and string functions?
How to write report design document, /report testing document, test reports and get user acceptance?
How to distribute reports and results via email, printers, intranet server, and web?
How to track on scorecards, balancing scorecards, forecasting, key performance indicators and dashboards?
Reflect the organizational Goals: A KPI should drive a business towards success.
Actionable: It should help the managers to initiate some business action as a result of all the analysis and
measures lead by KPI.
Examples of KPIs:
A KPI may reflect regional sales by sales person, supply chain statistics by supplier, productivity by units, customer
satisfaction, customer growth or it may reflect employee turnover. In either case, it should give a high-level, real time
information to the top level managers enabling them to concentrate in the company's success.
What is a Dashboard in Business terms?
A Business Intelligence Dashboard visually represents the key organizational performance data in a near real time,
user friendly manner that can be understood instantaneously. Technically speaking, a Dashboard is a visual
representation that reflects the Key Performance Indicators (KPIs) of interest for managerial review and not
only that it enables them to drill-down further. Business Intelligence Dashboard is similar in function to a car
dashboard in that it displays and provides access to the powerful analytical systems and key performance metrics in
a form enabling business executives to analyze trends and more effectively manage their areas of responsibility.
Features of Dashboard:
A typical web based Business Intelligence Dashboard encompasses the following features:
Web based Interface: Managers can gain broad visibility into the real-time key measurements of a
business with the help of this multi-window, intuitive and interactive interface.
Role Based View: Executives can clearly track their organization's overall performance against its goals.
Charting and Graphing: Dashboards are better known for their easy one-click charts and graphs that gives
instant access to complex solutions.
Pre-defined Performance Metrics: All the Dashboards are built with the common pre-defined metrics by
default which eases the business user in tracking the regular yet important performance metrics.
Scorecards:
Scorecards are similar to Dashboards in a way that it provides easy-to-understand, summarized, at-a-glance data
for the managers and top officials to tell them about their company's present and past performance. Scorecards
thus help to monitor the Key Performance Indicators accurately and to communicate the goals and strategies
across the organization in an efficient and elegant manner. In a Business Intelligence environment, Scorecards
allows managers to set metrics or targets and monitor them to see their impact on every department.
Business Intelligence Tools Directory:
Actuate
Business Objects
Cognos
HummingBird
Hyperion
Information Builders
MicroStrategy
ProClarity
Siebel
Cognos is the world leader in business intelligence (BI) and performance planning software for the enterprise. Its
solutions let companies improve and direct corporate performance by enabling all of the key steps in the
management cyclefrom planning and budgeting, to measuring and monitoring performance, to reporting and
analysis. Cognos is the only company to support all of these key management activities with a complete solution
that spans all of the essential components of CPMenterprise planning, scorecarding, and business intelligence."
Vendor:www.Cognos.com
Products: Business Intelligence
Cognos ReportNet
Cognos PowerPlay
Cognos DecisionStream
Cognos NoticeCast
Cognos ReportNet
Planning and Consolidation:
Cognos Planning
Cognos Controller
Cognos Finance
environment for query, analysis and reporting activity. It enables users to search stored data, transform it into
valuable business information and distribute the results across the enterprise and beyond."
Vendor:www.Hummingbird.com
Products: Business Intelligence
Hummingbird BI
Hummingbird BI Components:
BI Query
BI Web
BI Analyze
BI Server
Hyperion Intelligence
Hyperion Analyzer
Essbase Spreadsheets
Enterprise Reporting:
Hyperion SQR
Hyperion Reports
Developer Tools:
Hyperion HUB
www.InformationBuilders.com.
Information Builders' business intelligence and integration solutions offer the scalability, flexibility, and robust feature
sets to meet them. They help you integrate all your enterprise information, no matter where it resides, and deliver it
to anyone, anytime, anywhere, in any format so you can enhance operations, maximize performance, and gain a
competitive edge."
Vendor:www.InformationBuilders.com
Products: Business Intelligence
Host-Based Reporting(FOCUS)
MicroStrategy 8
MicroStrategy Desktop
MicroStrategy Office
MicroStrategy Web
Development Tools:
MicroStrategy Administrator
MicroStrategy Architect
MicroStrategy SDK
Web Standard
Professional
Dashboard Viewer
Dashboard Server
Analytics Server
Live Family:
Live Server
Live Client
Analytics Platform
Microsoft Integration: