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Alexandria University

College of Commerce
EMBA Master Program Cohort 5

IT Strategy Course

Business Intelligence
(BI)
Presented by:
Mohamed Salah Eladawy
Mostafa Samy Shaawat
Hasan Ibrahim Hasan

Supervised by:
Dr. Maged Farouk Elsayed

Outline

What is Business Intelligent ?


Data Warehouse
OLAP (Online Analytical Processing)
Data Mining

IT Strategy

Business Intelligent (BI)

What is Business
Intelligent ? (1-4)
Enables the business to make intelligent
and fact-based decisions.

Aggregate
Data

Database, Data Mart, Data


Warehouse, ETL Tools,
Integration Tools

IT Strategy

Present
Data

Reporting Tools,
Dashboards, Static
Reports, Mobile Reporting,
OLAP Cubes

Enrich
Data

Add Context to Create


Information, Descriptive
Statistics, Benchmarks,
Variance to Plan or LY

Business Intelligent (BI)

Inform a
Decision

Decisions are Fact-based


and Data-driven

Questions BI is Designed to Answer (2-4)

What happened?
What is happening?
Why did it happen?
What will happen?
What do I want to happen?

Past
Present

Future

Data

IT Strategy

ERP

CRM

SCM

Business Intelligence
(BI)

3Pty
4

Questions BI is Designed to Answer

(3-4)

A BI solution, with the right data and


features, should be able to take operational
data and enable users to answer specific
questions such as:
Sales and marketing

Which customers should I target?


What has caused the change in my pipeline?
Which are my most profitable campaigns per region?
Did store sales spike when we advertised in the local
paper or launched an email campaign?
What is the most profitable source of sales leads and
how has that changed over time?
IT Strategy

Business Intelligence
(BI)

Business Intelligence Vision


4)
Improving organizations by
providing business insights
to all employees leading to
better, faster, more
relevant decisions
Advanced Analytics
Self Service Reporting
End-User Analysis
Business Performance Management
Operational Applications
Embedded Analytics

IT Strategy

Business Intelligence
(BI)

(4-

Dashboards & Graphs

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(1-10)

Dashboards & Graphs

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(2-10)

Dashboards & Graphs

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(3-10)

Dashboards & Graphs

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(4-10)

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Dashboards & Graphs

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(5-10)

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Dashboards & Graphs

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(6-10)

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Dashboards & Graphs

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(7-10)

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Dashboards & Graphs

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(8-10)

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Dashboards & Graphs

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(9-10)

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Dashboards & Graphs

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(10-10)

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IT Strategy

Business Intelligence (BI)

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Outline

What is Business Intelligent ?


Data Warehouse
OLAP (Online Analytical Processing)
Data Mining

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What is Data Warehouse ?


(1-4)
Data Warehouse:
A decision support database that is maintained
separately from the organizations operational
database.
Focusing on the modeling and analysis of data for
decision makers, not on daily operations or
transaction processing.

Data Marts:
Subset of data warehouse.
Summarized or highly focused portion of firms data.
Typically focuses on single subject or line of business.
IT Strategy

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ETL

(2-4)

Data from one or more operational systems


needs to be extracted and copied into the
warehouse.
The process of extracting data from source
systems and bringing it into the data
warehouse is commonly called ETL
(Extraction, Transformation, and Loading).

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Data Warehouse Architecture


(3-4)

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What is Data Warehouse ?

(4-

4)

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Outline

What is Business Intelligent ?


Data Warehouse
OLAP (Online Analytical Processing)
Data Mining

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What is OLAP ?

(1-15)

A data warehouse stores data , but OLAP


transform the warehouse data into specific
meaningful information.
OLAP allows users to analyze database
information from multiple database systems

at one time.

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OLAP CUBE

(2-15)

A multidimensional cube can combine data


from disparate data sources and store the
information in a fashion that is logical for
business users.

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OLTP vs OLAP

(3-15)

OLTP (on-line transaction processing)


Day-to-day operations: purchasing, inventory,
banking, manufacturing, payroll, registration,
accounting, etc.
Transaction operation (Add, Delete and Update)

OLAP (On-Line Analytical Processing)


Data analysis and decision making.
Provide information from a historical perspective
(e.g., past 5-10 years).
Read-only but complex queries.
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OLAP

IT Strategy

(4-15)

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OLAP

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(4-15)

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Fact & Dimension Tables


time
time_key
day
day_of_the_week
month
quarter
year

item
Sales

Fact Table
time_key
item_key
branch_key

branch

location_key

branch_key
branch_name
branch_type

units_sold
dollars_sold
avg_sales

Measures
IT Strategy

(5-15)

Business Intelligent (BI)

item_key
item_name
brand
type
supplier_key

supplier

supplier_key
supplier_type

location
location_key
street
city_key

city
city_key
city
province_or_street
country
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OLAP Operations

(6-15)

Roll Up

Drill Down

Single Cell

IT Strategy

Multiple Cells

Slice

Business Intelligent (BI)

Dice

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OLAP 3-Dimentions

(7-15)

Viewing data using multiple dimensions.


Sales volume as a function of product, month,
Dimensions: Product, Location, Time
and region.
Re
gi
on

Hierarchical summarization paths


Industry Region

Year

Category Country Quarter

Product

Product

City
Office

Month Week
Day

Month
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OLAP Pivot

(8-15)

Pivot (Rotate)

MULTIDIMENSIONAL DATA MODEL

The view that is


showing is product
versus region. If you
rotate the cube 90
degrees, the face that
will show is product
versus actual and
projected sales. If you
rotate the cube 90
degrees again, you will
see region versus
actual and projected
sales.
Other views are
IT Strategy
possible.

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Slicing and Dicing

(9-15)

The Telecomm Slice

Product

Household
Telecomm
Video
Audio

eg
R

s
n
io
Europe

Far East
India
Retail Direct Special

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Sales Channel

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Roll-up and Drill Down

(10-15)

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Sales Channel
Region
Country
State
Location Address
Sales
Representative
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Drill-Down

Roll Up

Higher Level of
Aggregation

Low-level
Details
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Roll UP

(11-15)

OLAP Product Family by Store Type

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Drill Down

(12-15)

Drilled down by store location and store


type

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Detailed Drill Down

(13-15)
Further drilled down to just stores in California

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OLAP Query Example

(14-15)

Ex1. Grouping by all subsets of {item, region, month}, find the


maximum price in
2008 for each group, and the total sales among all maximum
price tuples:
SELECT item, region, month, max(price),
sum(R.sales)
FROM purchases
WHERE year = 2008
CUBE BY item, region, month: R
SUCH THAT R.price = max(price)
Ex2. This query answers how many TV sets have been sold, for

each brand and country, in 2005:


SELECT P.Brand, S.Country AS Countries,
SUM(F.Units_Sold) FROM Fact_Sales F
INNER JOIN Dim_Date D ON F.Date_Id = D.Id
INNER JOIN Dim_Store S ON F.Store_Id = S.Id
IT Strategy
Business Intelligent (BI)
INNER JOIN Dim_Product
P ON F.Product_Id = P.Id

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OLAP Query Example

(15-15)

Thesales business processin SALES fact table which contains:


"average daily sales"is a measurement which is stored in the fact
table.
$12,000,
$34,000,
$22,000,
$50,000,
$21,000,
2005"
$65,000,
2005"
$33,000,
2005

being
being
being
being
being

"sales for New York store for 15-Jan-2005"


"sales for Los Angeles store for 15-Jan-2005"
"sales for New York store for 16-Jan-2005"
"sales for Los Angeles store for 16-Jan-2005"
"average daily sales for Los Angeles Store for Jan-

being "average daily sales for Los Angeles Store for Febbeing "average daily sales for Los Angeles Store for year

The fact table also containsforeign keysfrom thedimension


tables, wheretime series(e.g. dates) and otherdimensions(e.g.
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store
location, salesperson,
product) are stored.

Outline

What is Business Intelligent ?


Data Warehouse
OLAP (Online Transaction Processing)
Data Mining

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Data Mining
Finds hidden patterns, relationships in large
databases and infers rules to predict future
behavior
E.g., Finding patterns in customer data for oneto-one marketing campaigns or to identify
profitable customers.
Types of information obtainable from data mining

IT Strategy

Associations
Sequences
Classification
Clustering
Forecasting
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What is Data Mining ?


Patterns

Knowledge

Data Mining
Selection and
Transformation

Data Warehouse

Cleaning and
Integration

IT Strategy

Databases

Flat
Files

Business Intelligent (BI)

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Data Mining is

IT Strategy

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Data Mining
Data mining is also called knowledge
discovery and data mining (KDD)
Data mining is extraction of useful
patterns from data.

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Association Rules

(1-8)

Association rules:
80% of customers who buy cheese and
milk also buy bread, and 5% of
customers buy all of them together
Cheese, Milk Bread [sup =5%,
confid=80%]

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Association Rules

(2-8)

Some concepts
Market-basket model

Look for combinations of products

Put the SHOES near the SOCKS so that if a


customer buys one they will buy the other

Transactions: is the fact the person buys


some items in the item set at
supermarket

Association Rules

(3-8)

Sequential pattern mining:


A sequential rule: A B, says that event A
will be immediately followed by event B
with a certain confidence

Deviation detection:
discovering the most significant changes
in data

Data visualization: using graphical


methods to show patterns in data.
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Association Rules (4-8)

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Association Rules

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(5-8)

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Association Rules

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(6-8)

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Association Rule Mining

(7-8)

Given a set of transactions, find rules that will


predict the occurrence of an item based on the
occurrences of other items in the transaction.
Market-Basket transactions

Example of Association Rules


{Diaper} {Beer},
{Milk, Bread} {Eggs,Coke},
{Beer, Bread} {Milk},

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Definition: Association Rule

(8-8)

Association Rule
An implication expression of the form
X Y, where X and Y are itemsets
Example:
{Milk, Diaper} {Beer}

Rule Evaluation Metrics


Support (s)

Fraction of transactions that contain


both X and Y

Example:

{Milk , Diaper } Beer

Confidence (c)

Measures how often items in Y


appear in transactions that
contain X

s
c

IT Strategy

(Milk, Diaper, Beer ) 2


0.4
|T|
5

(Milk, Diaper, Beer ) 2


0.67
(Milk , Diaper )
3

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Classification

(1-4)

Introduction
Classification is the process of learning a model
that describes different classes of data, the
classes are predetermined
The model that is produced is usually in the
form of a decision tree or a set of rules
married
Yes

no

salary

Acct balance
>5k

<20k
Poor risk

>=20k
<50k

>=50

Fair risk Good risk

<5k
Poor risk

age
<25
Fair risk

>=25
Good risk

RID

Married

Salary

Acct balance

Age

Loanworthy

No

>=50

<5k

>=25

Yes

Yes

>=50

>=5k

>=25

Yes

Yes

20k..50k

<5k

<25

No

No

<20k

>=5k

<25

No

No

<20k

<5k

>=25

No

Yes

20k..50k

>=5k

>=25

Yes

Expected information

I ( S1 , S 2 ,...S n ) pi log 2 pi
i 1

I(3,3)=1

<20k

20k..50k
age

Class is no {4,5}
Entropy
n

E ( A)

S j1 ... S jn

j 1

* I ( S j1 ,..., S jn )

E(Married)=0.92
Gain(Married)=0.08
E(Salary)=0.33
Gain(Salary)=0.67
E(A.balance)=0.82
Gain(A.balance)=0.18
E(Age)=0.81
Gain(Age)=0.19

Salary

Class
attribute

<25

>=50k
Class is yes {1,2}
>=25

Class is no {3} Class is yes {6}

Information gain
Gain(A) = I-E(A)
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Classification

(2-4)

Direct Marketing
Goal: Reduce cost of mailing by targeting a set of
consumers likely to buy a new cell-phone
product.
Approach:
Use the data for a similar product introduced before.
We know which customers decided to buy and which
decided otherwise. This {buy, dont buy} decision
forms the class attribute.
Collect various demographic, lifestyle, and companyinteraction related information about all such
customers.
Type of business, where they stay, how much they
earn, etc.

Use this information as input attributes to learn a


Business Intelligent (BI)
classifier model.

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Classification

(3-4)

Fraud Detection
Goal: Predict fraudulent cases in credit card
transactions.
Approach:
Use credit card transactions and the information on
its account-holder as attributes.
When does a customer buy, what does he buy, how
often he pays on time, etc.

Label past transactions as fraud or fair transactions.


This forms the class attribute.
Learn a model for the class of the transactions.
Use this model to detect fraud by observing credit
card transactions on an account.
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Neural network

(4-4)

Set of nodes connected by directed


weighted edges
A more typical NN

Basic NN unit
x1
x2
x3

w1
w2
w3

IT Strategy

o ( wi xi )
i 1

1
( y)
1 e y

x1
x2
x3

Business Intelligent (BI)

Output nodes
Hidden nodes

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Clustering

(1-4)

Given: (i) a data set D and (ii) similarity


function s
Goal: break up D into groups such that
items which are similar to each other end
in the same group AND items which are
dis-similar to each other end up in
different groups.
Example: customers with similar buying
patterns end up in the same cluster.
Regions with similar weather patterns.
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Clustering

(2-4)

Introduction
The previous data mining task of classification
deals with partitioning data based on a preclassified training sample.
Clustering is an automated process to group
related records together.
Related records are grouped together on the
basis of having similar values for attributes.
The groups are usually disjoint.

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Clustering

(3-4)

Some concepts
An important facet of clustering is the
similarity function that is used
When the data is number, a similarity
function based on distance is typically
used
Euclidean metric (Euclidean distance),
metric, Manhattan metric.

Dis tan ce(rj , rk ) | rj1 rk1 | ... | rjn rkn |


2

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K-Mean Clustering

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(4-4)

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BI Vendors in the Market

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Discussion

THANK

YOU!

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