Chan Myae Min

Business Intelligence

BUSINESS
INTELLIGENCE
HND-26 Business Intelligence Chan Myae Min
Business Process

We can defined as business process is a wide range of organized,

sometimes linked, people or devices conducting processes or activities to create
specific services or goods for a particular customer or user. In order to achieve a
predetermined strategic objective, it is implemented. These processes can take
place at all stages of the organization; some are accessible to customers, and others
are not. We can also describe the cumulative effects of all actions toward a business
goal as business processes. Using a flowchart or diagram, we can depict clearly this
sequence of steps. We can tell it is the same as Business method and must include
a single output and inputs that are clearly defined. Such inputs are composed of all
factors that contribute to the value of services or goods(either indirect or direct).
Such factors can be classified into processes of management, operational processes
and supporting process.

Processes of management

It is used to control the way we grow and develop our organization. It

is often separated into three categories depending on the period;

1. Strategic planning (depending on the country, from 3 to 10 years)

2. Tactical planning (approximately one year)
3. Operational planning (daily operations)

Every processes of management comprises four steps:

goal setting=>> execution=>> management=>> assessment and

review

Operational processes

In any organization or company, it is the most widely used and the most
critical form of process. The core processes describe the key tasks that a business
needs to carry out in order to run its business effectively. Purchasing, manufacturing
marketing, and sales are common business procedures.

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Any primary process outcomes:

1. It provides benefits to customer

2. Profits – might be funds or extra experience, product exposure, new
business partners, etc.

As an example, the business I want to start is Software Development

College (SDC). Firstly, we must have enough budget to manage Location and
Buildings to start this business and appoint program managers, teachers and staffs
(cleaning staffs, office staffs, financial staffs, etc.) by interviewing some facts and
skills we need to. Then, we give standard facilities students are necessary like Wi-
Fi, room accessories and others. The main target that we start is to become students
who are innovative and creative, and teach to get the Bachelor’s Degree of
Universities of Gloucestershire, the top England University. So we have joined and
made meetings with this Universities in England. The schedule students need to
learn for getting Bachelor’s Degree is 3 years. Before this, we think to give HND
(Higher National Diploma) if students learn until second years. Also, if they learn
until first year, we will give SDCC (Software Development College Certificate). I
think we need to teach foundation courses for transferring from Myanmar Education
System to England Higher Education System. As a service, we appoint students in
an appropriate IT company. To know detail about SDC especially our location to
intake and our academic education system, we advertise in social media such as
Facebook, Instagram, Twitter, etc…, and even TV news and Newspapers. As a
special, we give brochure in popular places like shopping Centers and others.

Supporting Process

This process is carried out to retain the goods or service integrity

produced by "primary processes" and to make sure that goods and procedures
conform with predefined provisions and plans. These processes accompany with the
"main processes," which generally do not originate in the organization's final
products, but rather contribute implicitly to the added value. This supporting process
includes verification, documentation, training, configuration management, and audit

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processes. In supporting processes, the tasks are targeted at achieving goals that
support certain processes performing a specialized function.

The system of supporting process of our business is departments of

administration and is linked to accounting offices, departments of finance,
departments of human resources and others. To get Bachelor’s Degree, Higher
National Diploma, Certificate for students, I think they need to be safe and quiet
environment for innovating and creating project. For this case, security staffs will
support. To improve our higher education system, we need to make record
management. We will know which students are now learning in which year, in which
classes and which students get Bachelor’s Degree. Also, we can know what staffs
and employees leaves in which day or month or year.

Business Decision-Making

The decision-making is the decision-making process by defining resolution,

collecting data and reviewing alternative decisions. The decisions of management
are divided into three categories or levels:

1. Strategic Level
2. Tactical Level
3. Operational Level

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Strategic Level

The strategic decision-making is the method of making a long-term goal-

based path and a longer-term plan. The strategic knowledge is very important for
making strategic decisions. This level includes determining and developing strategic
goals to obtain strategic objectives. The business strategies are usually developed
by top management. Within the next four or five years and above, these plans will
have consequences. There are a huge risk and ambiguity associated in the planning
at the long-term or strategic level. This kind of data, in essence, is a very holistic
approach and unstructured. The strategic decisions making consist of:

1. Decisions making on Technology - This implies choosing the right technology,

system and facilities.
2. Decisions making on Capacities - This implies types, timing and quantity.
3. Decisions making on Facilities – This implies specializations, place and scale.
4. Decisions making on vertical integration – This implies balance, range and
guidance.

Such decisions making are crucial to the organization's sustainability and

improved performance. In addition, these things affect the organization's market
positions and help place the organization's operational strategy.

Tactical Level

It is carried out to develop short-term objectives and plan of action to

obtain the long-term objective set by a company's strategic planning. Furthermore,
it covers shorter periods and is correlated with less volatility compared to strategic
planning and therefore it has lower risks than strategic level. It is just a planning
for the medium term. (May be two or three years). The focus of it is to determine
precisely how the organization's resources will be used to obtain strategic
organizational objectives. Tactical decision making consist of:

1. Design and analysis of operational efficiency parameters.

2. Planning to maximize the use of existing resources.

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3. Arrange the preparation of machinery and workers.
4. Making plans for the facilitation and implementation of the modernization.
5. Different technologies and methods to improve efficiency in academic
education.
6. Make work plans for redesigning processes, improving methods and designing
jobs.
7. Medium-term maintenance preparation (preventative and performance
monitoring) to increase our business's efficiency.

Operational Level

It is at the bottom management level, strategic planning decisions are carried

out, and these are regular decisions. Operational decision making are prepared to
set the measures needed to achieve organizational objectives. It spans a shorter
period of time, may be throughout one year. Little or much less uncertainty in this
level and information required is internal. These are defined in specific numerical
terms and described in terms of time and objectives. It is carried out the daily tasks
needed to run and encompass a business. Briefly, the aim of it is to supply a clear
view of the roles and obligations of the company staff in line with the final goals of
the Strategic Plan. This level includes what, who, when, and how much:

 What - The methods and roles to be done

 Who - Individuals responsible for each of the works/strategies
 When - The timetable to execute the strategies/activities
 How much - Required budget resources to execute a strategy/task

The differences between unstructured and semi-structured data

Unstructured data

Unstructured data is a kind of data, which did not include in the database of a
row-column and cannot have a database schema associated with it. Simply, it is the
same of an email text message. The absence of structure made it harder to find,
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handle and analyze this data. For this reason, businesses have mostly ignored
unstructured data until the recent explosion of artificial intelligence and machine
learning techniques has made processing simpler. It is increasingly prevalent in IT
systems and is used by companies in a range of business intelligence and analytics
programs, so for Unstructured data, there are alternate methods for storing and
handling. Example: Document, PDF, email, records of the news. Many sources of
unstructured data involve images, audio and video documents, XML files, material
on social networks, satellite data, reports, PDFs, open-ended survey results, blogs,
and transcript/recording call centers. Many data in this is now available and can be
analyzed with today's artificial intelligence algorithms automatically. This technology
has raised unstructured data for companies to a highly valuable asset.

Semi-structured data

It is kind of data, which cannot reside in a rational database but has certain
organizational features that make the analysis easier. We can store them in the
relational database in some processing (it might be very difficult for some sort of
semi-structured data), but it have ease space for this data. CSV including XML and
JSON files are kind of semi-structured data, and also we can regard as a semi-
structured to NoSQL databases. This data is a type of structured data that does not
adhere to the formal structure of data models associated with relational databases
or other types of data tables but includes tags or other markers to distinguish
semantic elements and implement record and field hierarchies within the data. A
digital image is the simple example of it. The picture itself is unstructured data;
however, if, for instance, the picture was taken on a phone, this would be marked
with date and time, geo-tagged, and a system Identifier. Much of what
people probably regard as unstructured data is actually semi-structured, as it
includes certain characteristics of classification.

The Key Features of BI Functionality

 Pivot Table – It is a method used in data processing to analyze results. In

addition, it is generally use for sorting, grouping, reorganizing, counting,
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resuming and total or average information stored in a database. We can
convert through any data field from columns into rows and rows into columns
and also grouping. Sometimes, it is difficult to evaluate and summarize huge
amounts of data for people, but it can solve fast and easily within a few
minute. We don't have to describe huge data sets manually with several error-
prone types. Furthermore, it is complete and filtered information from pivot
table easily accessible using the Double Click Drill Down.

 Conditional Formatting - This feature allows us to alter a cell's format

depending on the cell's data or a range of cells in the word document, or
another cell or cells. This also enables us to identify errors and discover
significant patterns in files. It can add simple font and cell formatting such as
statistical layout, text color, and other fonts, cell boundaries, and cell color.
Various conditional formats enable the use of color scales, icons sets and data
bars to display details. For instance, we can only have a cell become bold if
the cell quality exceeds 90. If the cell's value exceeds the state of the format,
the format we choose will be extended to the cell but the standard cell’s format

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will be used if the cell’s values do not fulfill the conditions of format.

 VLOOKUP () – The long term of VLOOKUP is the vertical lookup. This feature
is primarily used to search and retrieve statistical data in the table from a
particular column. Simply, it checks for the given value and gives similar value
from other rows or columns. It works in the same way and consists of four
parts. The first part is Lookup Value (it means the value to check for in a
table's first column), the another one is Table Array (it implies the table's total
distance, shifting from the top right to the bottom right.), the third one is
Column Index (it refers it applies to the column number that we want to seek
the preferred value in the above table array.) and the last one is Range Lookup
(this is [optional] TRUE = estimated match (default) and FALSE = accurate
match).

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 Pie Chart – It is the type of circle separated into parts or segments depending
on the frequency percentage in each distribution section. It is also one of the
best aspects of Excel and widely used in statistical data. The aim of it is to
display the relationship between the components and the whole by measuring
the dimensions of the pieces visually. Percentages or ratios may be used. It
has different forms of Pie Charts in Microsoft Excel, such as 2D, 3D and
Doughnut charts.

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 Remove Duplicates - To people working as a data analyst or those who

regularly work with numbers, it is the most effective Microsoft Excel Feature.
The duplicate data will be permanently deleted when we use these features. I
think this is a good idea to move the original data to the next sheet before we
erase the duplicates so we will not miss any data unintentionally. For removing
duplicates, firstly, we need to pick the set of cells we want to delete that have
repeat values. The next one is we need to tap Data > delete duplicates, then
select or uncheck the columns under columns where the duplicates are to be
deleted. The last one we need to do is click OK.

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 DB function – This feature is a part of Excel Financial. It helps to calculate

an asset's amortization and depreciation. The formula used to calculate
depreciation for each life period of the asset is the Fixed Declining Balance
Formula. The formula for this function is [=DB (cost, salvage, life, period,
[month])]. In this formula, the cost is the asset's initial value, the salvage is
thee asset's worth at the end of the deterioration, the life is lifetime of the
asset or the duration of times for which the asset is depreciated and the period
is the time in that we want the depreciation to be calculated. The last one
specifies the number of months of the year used to calculate the first
depreciation duration.

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 IFERROR Function – It is one of the best technical equations and features

in the statistical analysis. It provides a result when an error is caused by an
equation, and when no error is detected, a normal outcome. It is an easy way
to control errors without the use of nested IF formulas that are more complex.
The formula for this function is [=IFERROR (value, value_if_error)]. In this
formula, the value is the reference, function or formula result for checking an
error and the last one is the return value if the error is detected. The possible
types of errors are graded as # REF! , # NUM! , # VALUE! , # N / A, # DIV/0!
, # NAME? Or rather, # NULL!. It shows the # DIV/0! Error by using IFERROR
Function if an equation fails to divide a number by 0.

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Benefits and Drawbacks of using application for business
processing

Benefits

Microsoft Excel provides organizations with the resources we need to make

the most of our information and data. In addition, it is becoming particularly
essential when it comes to getting the most of resources so optimizing return on
investment. Moreover, it is widely used for the business-wide show of financial
information and other business-related data. It may be client relationship service
team data, advertising, marketing or HR details. With several business
functions relying on IT, it tends to be seen as a key tool for controlling and running
a business effectively. There are some benefits of using Excel for our business
processing and among them, I would like to express about the five benefits of using
it. They are

 Building great chart - By using the functions across a cell grid, it enables us
to access the value of their data. Data are placed into different cells in columns
or rows, enabling it to be sorted, processed, and shown in a visual display.
Using pie charts, tables, and ordered columns give context to information that
could otherwise only appear as a row after a row of numbers. Such
visualizations will add additional focus to corporate statements and compelling
marketing material. Excel advises the most appropriate graphs for the kind of
data on both X and Y-axis.
 Conditional Formatting - We can use different color schemes, bolds and
italics to layout our spreadsheets to distinguish between columns and put to
the fore the most essential data. This kind of function may be helpful when
providing financial data, such as the company's pre-tax income and debt. In
addition, we may use the Fast Evaluation button to pick a suitable coloring
scheme and then by using the Formatting tab. Furthermore, it allows us to
display and analyze the data more quickly without wasting time on layout.

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 Trend Identification - Including average rows, which specifically outline the
main patterns arising from the statistics, may be useful when displaying data
in the form of charts or graphs. This can allow other users to explain the
critical points in a straightforward way – for example, during a board meeting,
an employee from another organization. Moreover, Microsoft Excel enables
trend lines to be expanded beyond the chart, providing potential event
projections – and such simulations will help businesses build future strategies.
 Data Consolidation – We can use Excel easily to put together data from
different documents and files to reside in a single location. In addition, raw
data and other spreadsheet information, text and images can be imported.
Furthermore, we can attach other items using the Add tab or can add
additional sheets to the document. Hence, briefly, organizations can integrate
multiple projects, by putting all the information into a unique platform.
 Online Data Accessing – Microsoft Excel is accessible the internet as part of
Microsoft’s Office 365 software suite. This refers business executives and staff
from almost every place have access to the database from a variety of devices.
This should be possible to access Microsoft Excel if they have a web-enabled
Computer, desktop, smartphone or tablet, allowing remote and wireless
service feasible.

Drawbacks

Every company or business wants to maximize their profits by pricing their

services and products at the proper level. Price planning has typically been carried
out for many companies using Excel spreadsheets to determine optimal costs and
to communicate those values to all involved in the sales process. Nobody claims that
Excel Pricing Lists is a flawed price management system, but the new, reliable and
more effective way is to use a pricing software solution instead of the old fashioned
solutions that are so vulnerable to error, abuse, and bribery. There are some
drawbacks of using Microsoft Excel in our business processing. Among them, I would
like to express about the five drawbacks of using Microsoft Excel.

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 Difficult to perform advanced rules on pricing - Excel is commonly used
in companies to control a cost-plus pricing strategy or discount from list sales
strategies or other simple pricing strategies. While this ensures the efficiency
of selling our products or services, it lacks some other considerations that help
the desire of a buyer to pay, perhaps most notably value-based pricing.
Without a pricing system, alternative, more complex pricing methods and
strategies, such as behavioral pricing, quantity-based pricing, attribute-based
pricing, and pricing across markets and geographies, to name a few, are
difficult to manage, monitor and refine.
 Lack of safety and control - It can trigger the Excel system to run very
poorly when the data files are too big, particularly when all the data are in one
folder. Making to break some of the data down into smaller file or folders will
result in the loss or misplacement of some of it. Moreover, Excel is standalone
software, not completely integrated with the other business systems; it does
not give sufficient control as sales managers do not have simple and reliable
access to quotes sent by their representatives or the background of those
quotes.
 Vulnerable to human error - Excel's intense vulnerability to marginal
human errors is more commonplace but equally destructive. Missed negative
signals and misaligned rows can sound innocuous but they make or break
errors when they undermine investor confidence or cause a significant loss of
opportunity owing to millions of pounds. The spreadsheet can include one
error regularly for every twenty cells, which have data.
 Difficult to troubleshoot or fix – Microsoft Excel is not for testing purposes.
Dispersing interlinked spreadsheet data around various files, workstations,
workplaces, or even geographic locations is not unusual. Although it is possible
to identify the locations of each related file, it can be time-consuming to trace
the logic of formulas from one related cell to another. If troubleshooting any
problematic information, similar issues will be encountered.
 Not for collaborative work - Precise pricing normally requires information
from various departmental individuals. The final report will derive from various
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information, concepts, and file exchanges. The possible way to exchange data
stored in word documents is by email if a business's offices are spread across
the nation or if certain team members are divided by long distances. Such an
exchange process is likely to repeat-and even insert incorrect data. It will be
impossible for different team members to keep track of identical files going
back and forth and often end up sending an outdated version.

Compare and Contrast of Information System

The information systems and technologies we use in supporting organization

levels (operational, tactical and strategic levels) are TPS (Transaction Processing
System), MIS (Management Information System) and DSS (Decision Support
System).

TPS (Transaction Processing System)

Supporting daily business operations or transactions is typically an

information system's first and most important goal. A computer-based TPS
(Transaction Processing System) tends to focus on an enterprise's operational level
and mainly deals with internal source information. Management data developed by
TPS usually consists of comprehensive daily activity statements (such as a list of

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items purchased or all accounts reported in separate ledgers and registers) or
potential transactions (such as lists of products to be ordered). TPS normally only
operates within one company's operational zone. While the documents produced by
a TPS are helpful to managers at lower levels, they are usually not useful to middle
managers who need more concise data. Therefore, MIS (Management Information
System) was developed to solve the information needs of Tactical Management.

MIS (Management Information System)

MIS (Management Information System), also known as data reporting

systems, supplies reports to Tactical Management that summarize and classify
information derived from all databases of companies. The report aims to enable
management to spot patterns and obtain a summary of existing business operations
as well as to spot developments and monitor and control operational-level
operations. Depending on their intent, the range of reports and their information
characteristics differ. The reports may be periodic (such as the declaration of profits
and balance sheets), about-demand, or event-initiated, and may summarize data
or comment on extraordinary events or situations. Sales area analyzes, expense
analyzes, annual financial planning reports, capital investment analyzes, and
production schedules are examples of reports produced by an MIS.

DSS (Decision Support System)

DSS (Decision Support System), a collection of special computer systems,

provides a sophisticated system to supply tools to support administrators in
evaluating data from the two lower levels of management and from outside the
business. The analyzes were used to make unstructured decisions. Top management
usually uses DSS (although they assist all management levels), incorporates
sophisticated analysis systems with conventional data access and retrieval features,
can be used by non-computer experts, and stresses versatility in decision-making.
These things are used for analyzing unexpected issues and integrating the flow of
information and decision-making. For providing data and information, DSS can use
query language financial modeling or spreadsheet programs, database management

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systems, document writers, statistical analysis programs and graphics programs.
The company or organization need to establish the TPS and MIS to reach the DSS
level of sophistication in information system. However, these two categories of
information systems are not designed to manage data and actions that are
unpredictable. The DSS are designed to manage the types of unstructured decisions.
Furthermore, the DSS supply tools for managers to support the design, analyze and
make decisions about the data they have.

References - quora.com/excelwithbusiness.com/quadexcel.com/buyingnote.com

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