Business

Intelligence

overview

1
Business management issues
 “We have mountains of data in this company, but
we can’t access it.”
 “We need to slice and dice the data every which
way.”
 “You’ve got to make it easy for business people to
get at the data directly.”
 “Just show me what is important.”
 “It drives me crazy to have two people present the
same business metrics
 at a meeting, but with different numbers.”
 “We want people to use information to support more
fact-based decision making.”

2
What is BI?

Business intelligence (BI) is a set of theories, methodologies,

architectures, and technologies that transform raw data into
meaningful and useful information for business purposes.

3
Data Warehouse
 The data warehouse:
 must make an organization’s information easily
accessible
 must present the organization’s information
consistently
 must be adaptive and resilient to change
 must be a secure bastion that protects our information
assets
 must serve as the foundation for improved decision
making
 the business community must accept the data
warehouse if it is to be deemed successful

4
Basic Elements of the Data
Warehouse

Ralph Kimball, Margy Ross, The Data Warehouse Toolkit, 2nd Edition, 2002
5
Operational Source
Systems
 capture the transactions of the business
 queries against source systems are narrow
 stovepipe application

6
Data Staging Area

 a storage area
AND
 a set of ETL processes
(extract-transform-load)

 it is off-limits to business users and does not

provide query and presentation services.

7
Data Staging Area - ETL
 EXTRACTION
 reading and understanding the source data and
copying the data needed for the data warehouse
into the staging area for further manipulation.
 TRANSFORMATION
 cleansing, combining data from multiple sources,
deduplicating data, and assigning warehouse keys
 LOADING
 loading the data into the data warehouse
presentation area

8
Data Presentation Area
 where data is organized, stored and made available
for direct querying by users, report writers, and other
analytical applications
 it is all the business community sees and touches
via data access tools
 dimensional data modeling
 user understandability
 query performance
 resilience to change
 detailed, atomic data

9
Data Access Tools

 tools that query the data in the data

warehouse’s presentation area
 the variety of capabilities that can be
provided to business users to leverage the
presentation area for analytic decision
making.
 prebuilt parameter-driven analytic applications
 ad hoc query tools
 data mining, modeling, forecasting

10
11
 Information Delivery Analysis
Reporting Interactive visualization
Dashboards
Microsoft Office integration Search-based data discovery

Ad hoc report/query Geospatial and location intelligence

Mobile BI
Online analytical processing (OLAP)

Embedded advanced analytics

BI and analytics
(Gartner, 2014) Integration
BI infrastructure and administration
Collaboration Metadata management
Business user data mashup and modeling
Embeddable analytics Development tools
Support for big data sources

12
The process of BI
 Data -> information -> knowledge -> actionable plans
 Data -> information: the process of determining what data is
to be collected and managed and in what context
 Information -> knowledge: The process involving the
analytical components, such as data warehousing, online
analytical processing, data quality, data profiling, business
rule analysis, and data mining
 Knowledge -> actionable plans: The most important aspect in
a BI process

13
14
15
BI Applications
 Customer Analytics
 Customer profiling
 Targeted marketing
 Personalization
 Collaborative filtering
 Customer satisfaction
 Customer lifetime value
 Customer loyalty
 Sales Channel Analytics
 Marketing
 Sales performance and pipeline

16
BI Applications (2)
 Supply Chain Analytics
 Supplier and vendor management
 Shipping
 Inventory control
 Distribution analysis
 Behavior Analysis
 Purchasing trends
 Web activity
 Fraud and abuse detection
 Customer attrition
 Social network analysis

17
 The Evolution of Business
Intelligence
 1st Generation – Traditional analytics (query and
reporting)
 2nd Generation – Traditional generation (OLAP, data
warehousing)
 2.5nd Generation – New traditional generation
 3rd Generation - Advanced analytics
 Rules, predictive analytics and realtime data mining
 Stream analytics

18

Business Intelligence Use Cases
Focus on what is
happening RIGHT NOW
* In lieu of stream analytics, “embedded analytics,” although architecturally
different, could potentially play the same role
Real-Time Threshold
Focus on what did
happen
Turning data into
information is limited by the
relationships which the
end-user already knows to
look for.
Example Target Solutions:
Fraud Detection / Risk
CRM Analytic
Supply Chain Optimization
RFID / Spatial Data
Stream Analytics* Other High-Volume
Real-time, continuous, sequential analysis
(ranging from basic to advanced analytics)
Focus on what will
happen
Advanced Analytics/Optimization
Analytic applications that
Rules
apply statistical
Predictive Analytics relationships in the form
Real-time and traditional Data Mining of RULES
Data mining to determine
“New Traditional” Analytics why something
“2.5-Gen” Analytics (In-Memory OLAP, Search-Based) happened by unearthing
relationships that the
end-user may not have
known existed.
Traditional Analytics
1 Generation Analytics (Query & Reporting)
st
Source:
2 Generation Analytics (OLAP, Data Warehousing)
nd
Bill O’Connell
IBM, Aug 2007
ISQS 6339, Data Mgmt & BI 19
20
21
22
23
24
25