BA MODULE - 1

BI Definition
BI (Business Intelligence) is a set of processes, architectures, and technologies
that convert raw data into meaningful information that drives profitable
business actions.
BI tools perform data analysis and create reports, summaries, dashboards,
maps, graphs, and charts to provide users with detailed intelligence about the
nature of the business.

BI Examples
 A Hotel Owner uses BI analytical applications to gather statistical
information regarding average occupancy and room rate. It helps to find
aggregate revenue generated per room. It also collects statistics on
market share and data from customer surveys from each hotel to decides
its competitive position in various markets. By analyzing these trends year
by year, month by month and day by day helps management to offer
discounts on room rentals.
 A Bank gives branch managers access to BI applications. It helps branch
manager to determine who are the most profitable customers and which
customers they should work on. The use of BI tools frees information
technology staff from the task of generating analytical reports for the
departments. It also gives department personnel access to a richer data
source.
 A company that wants to better manage its supply chain needs BI
capabilities to determine where delays are happening and where
variabilities exist within the shipping process.
 Another example is India’s biggest automobile company – Maruti Suzuki,
which is leveraging Qlik to analyse and provide business insights and
improve operational efficiency across the enterprise. With Qlik’s
solution, Maruti Suzuki has been successful in streamlining its sales and
distribution management.
  Tesla the innovative automotive company uses BI to connect their cars
wirelessly to their corporate offices to collect data for analysis. This
approach links the carmaker to the customer and anticipates and corrects
problems such as component damage, traffic or road hazard data. The
result is a high customer satisfaction score and better-informed decisions
on future upgrades and products
 Twitter the social media company deploys BI with AI to fight inappropriate
and potentially dangerous content on its platform. Algorithms rather than
human users identify 95% of suspended terrorism-related accounts.
 TESLA: BUSINESS INTELLIGENCE AS BRAND DEFENSE

How it uses business intelligence:

Tesla’s remarkably autonomous cars are all Internet of Things devices that are
digitally linked to Tesla HQ. The setup allows Tesla to push software updates and
new digital features to old cars, free of charge. It also lets the company collect
business intelligence on how Tesla owners drive their vehicles. That data comes
in handy, and not just for patching glitches in real time.
 BI Component Framework

Divided into 3 Parts:

1. BUSINESS LAYER
2. ADMINISTRATION & OPERATION LAYER
3. IMPLEMENTATION LAYER

1). Business Requirements: it is a product of 3 steps of a business process

• Business Drivers: The impulses that initiate the need to act. E.g.,
Changing workforce, changing labour laws, changing technology.
• Business Goals: Targets to be achieved in response to Business
Drivers. E.g., Increased productivity, Improved market shares,
Improved Profit Margins, Improved Customer Satisfaction.
 • Business Strategies: Planned course of action that will help achieve
the set goals. E.g., Outsourcing, Global Delivery model,
Partnerships, Competitive Pricing.
2). Business Value: When a strategy is implemented against certain business
goals, then certain costs (monetary, time, effort, information produced by data
integration and analysis, application of knowledge from past experience, etc.)
are involved. However, the final output of the process should create such value
for the business whose ratio to the costs involved should be a feasible ratio.
• Return on Investment (ROI): Return on Investment.

• Return on Asset (ROA): Return on Asset.

• Total Cost of Ownership (TCO): E.g., Cost from Purchase, Operations,

Maintenance to the time it leaves the possession of the owner.

• Total Value of Ownership (TVO): Assets = Liabilities + Owners’ Equity.

3). Program Management: ensures that people, projects & priorities work in
manner for seamless integration & smooth functioning of entire program. It
attends – Business Priorities, Mission & Goals, Strategies & Risks, Multiple
Projects, Dependencies, Cost & Value, Business Rules, Infrastructure.
4). Development:
The process of development consists of
• Database/Data-Warehouse Development (consisting of ETL, data profiling,
data cleansing and database tools),
• Data Integration System Development (consists of data integration tools and
data quality tools)
• Business Analytics Development (about processes and various technologies
used)
1). BI Architecture:
2). BI & DW Operations:

3). Data Resource Administrations:

It involves Data Governance and Metadata Management.
4). Business Applications:
1). Data Warehousing
2). Information Services