Business Intelligence

Abhishek singh(02)
Rikesh ranjan(25)
 Business Intelligence
• Business intelligence (BI) Business
Intelligence is the processes,
technologies, and tools that help us
change data into information, information
into knowledge and knowledge into plans
that guide organization
About BI
• Business intelligence often aims to support better
decision-making.
• It is called decision support system.
• BI uses technologies, processes, and applications to
analyze mostly internal, structured data and business
processes
• while competitive intelligence is done by gathering
and analyzing information with or without support
from technology and applications, and focuses on all-
source information and data (unstructured or
structured), mostly external, but also internal to a
company, to support decision making.
History
• In a 1958 article, IBM researcher Hans Peter
Luhn used the term business intelligence.
• Defines as “the ability to apprehend the
interrelationships of presented facts in such a
way as to guide action towards a desired goal."
Where to apply Business Intelligence
in an Enterprise
• Business Intelligence can be applied to the following business
purposes, in order to drive business value:
• Measurement – program that creates a hierarchy of Performance
metrics and Benchmarking that informs business leaders about
progress towards business goals (AKA Business process
management).
• Analytics – program that builds quantitative processes for a
business to arrive at optimal decisions and to perform Business
Knowledge Discovery. Frequently involves: data mining,
statistical analysis, Business process modeling
• Reporting/Enterprise Reporting – program that builds
infrastructure for Strategic Reporting to serve the Strategic
management of a business, NOT Operational Reporting.
Frequently involves: Data visualization, Executive information
system, OLAP
 Benefits
• Improve Operational efficiency
• Eliminate report backlog and delays
• Find root causes and take action
• Negotiate better contracts with suppliers
and customers
• Identify wasted resources and reduce
inventory costs
• Sell information to customers, partners,
and suppliers
 Contd…
• Improve strategies with better marketing
analysis
• Give users the means to make better
decisions
• Challenge assumptions with factual
information
 Limitations
• Very high software cost.
• Expensive and time consuming training.
• A wide Variety of technology experts.
• Extensive system upgrade and
maintenance.
• Movement of data between disparate data
source.
• Queries done out of BI systems can be
cumbersome and time-consuming to run
for end users
Where to apply Business Intelligence
in an Enterprise
• Collaboration/Collaboration platform – program that
gets different areas to work together through Data
sharing and Electronic Data Interchange.
• Knowledge Management – program to make the
company data driven through strategies and practices
to identify, create, represent, distribute, and enable
adoption of insights and experiences that are true
business knowledge. Knowledge Management leads
to Learning Management and Regulatory
Compliance/Compliance
Data Warehousing and Data
Mining
 Data Warehousing
• “A data warehouse is a subject-oriented, integrated,
time-variant, and nonvolatile collection of data in support
of management’s decision-making process.”—W. H.
Inmon
• Support information processing by providing a solid
platform of consolidated, historical data for analysis.
 What Is Data Mining?
• Data mining (knowledge discovery from data)
– Extraction of interesting (non-trivial, implicit, previously unknown
and potentially useful) patterns or knowledge from huge amount
of data
• Alternative names
– Knowledge discovery (mining) in databases (KDD), knowledge
extraction, data/pattern analysis, data archeology, data
dredging, information harvesting, business intelligence, etc.
 Knowledge Discovery (KDD) Process

– Data mining—core of Pattern Evaluation

knowledge discovery
process
Data Mining

Task-relevant Data

Data Selection
Warehouse
Data Cleaning

Data Integration

Databases
 Data Mining and Business Intelligence

Increasing potential
to support
business decisions End User
Decision
Making

Data Presentation Business

Analyst
Visualization Techniques
Data Mining Data
Information Discovery Analyst

Data Exploration
Statistical Summary, Querying, and Reporting

Data Preprocessing/Integration, Data Warehouses

DBA
Data Sources
Paper, Files, Web documents, Scientific experiments, Database Systems
Data Mining: Confluence of Multiple Disciplines

Database
Technology Statistics

Machine Visualization
Data Mining
Learning

Pattern
Recognition Other
Algorithm Disciplines
 Why Not Traditional Data Analysis?

• Tremendous amount of data

– Algorithms must be highly scalable to handle such as tera-bytes of data
• High-dimensionality of data
– Micro-array may have tens of thousands of dimensions
• High complexity of data
– Data streams and sensor data
– Time-series data, temporal data, sequence data
– Structure data, graphs, social networks and multi-linked data
– Heterogeneous databases and legacy databases
– Spatial, spatiotemporal, multimedia, text and Web data
– Software programs, scientific simulations
• New and sophisticated applications
 Multi-Dimensional View of Data
Mining
• Data to be mined
– Relational, data warehouse, transactional, stream, object-oriented/relational,
active, spatial, time-series, text, multi-media, heterogeneous, legacy, WWW
• Knowledge to be mined
– Characterization, discrimination, association, classification, clustering,
trend/deviation, outlier analysis, etc.
– Multiple/integrated functions and mining at multiple levels
• Techniques utilized
– Database-oriented, data warehouse (OLAP), machine learning, statistics,
visualization, etc.
• Applications adapted
– Retail, telecommunication, banking, fraud analysis, bio-data mining, stock
market analysis, text mining, Web mining, etc.
 Data Mining: Classification
Schemes
• General functionality
– Descriptive data mining
– Predictive data mining
• Different views lead to different classifications
– Data view: Kinds of data to be mined
– Knowledge view: Kinds of knowledge to be discovered
– Method view: Kinds of techniques utilized
– Application view: Kinds of applications adapted
 Data Mining: On What Kinds of
Data?
• Database-oriented data sets and applications
– Relational database, data warehouse, transactional database
• Advanced data sets and advanced applications
– Data streams and sensor data
– Time-series data, temporal data, sequence data (incl. bio-sequences)
– Structure data, graphs, social networks and multi-linked data
– Object-relational databases
– Heterogeneous databases and legacy databases
– Spatial data and spatiotemporal data
– Multimedia database
– Text databases
– The World-Wide Web
 Major Issues in Data Mining
• Mining methodology
– Mining different kinds of knowledge from diverse data types, e.g., bio, stream, Web
– Performance: efficiency, effectiveness, and scalability
– Pattern evaluation: the interestingness problem
– Incorporation of background knowledge
– Handling noise and incomplete data
– Parallel, distributed and incremental mining methods
– Integration of the discovered knowledge with existing one: knowledge fusion
• User interaction
– Data mining query languages and ad-hoc mining
– Expression and visualization of data mining results
– Interactive mining of knowledge at multiple levels of abstraction
• Applications and social impacts
– Domain-specific data mining & invisible data mining
– Protection of data security, integrity, and privacy
 Why Data Mining?—Potential Applications
• Data analysis and decision support
– Market analysis and management
• Target marketing, customer relationship management (CRM),
market basket analysis, cross selling, market segmentation
– Risk analysis and management
• Forecasting, customer retention, improved underwriting,
quality control, competitive analysis
– Fraud detection and detection of unusual patterns (outliers)
• Other Applications
– Text mining (news group, email, documents) and Web mining
– Stream data mining
– Bioinformatics and bio-data analysis
Architecture: Typical Data Mining System

Graphical User Interface

Pattern Evaluation
Knowl
Data Mining Engine edge-
Base
Database or Data Warehouse
Server

data cleaning, integration, and selection

Data World-Wide Other Info

Database Repositories
Warehouse Web
THANK YOU