ISP117-

BUSINESS
INTELLIGENCE
Chapter 2.0: Fitting BI with
Other Technology Disciplines
(Chapter 2: fitting
BI with Other
Technology
Disciplines)

Presented by: WILBERT P. BENEDICTO, MIS

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 ISP117-
BUSINESS
INTELLIGENCE
In this chapter, we look at the most prominent
(Chapter 2: fitting
BI with Other technologies commonly associated with BI.
Technology
Disciplines)

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 The relationship between BI and each of these technologies is
a two-way street.
ISP117-
BUSINESS
INTELLIGENCE Each technology area has benefited from the BI process, and
(Chapter 2: fitting
BI has grown and in response to the widespread adoption and
BI with Other evolution of these technologies especially data-warehousing,
Technology
Disciplines) Customer Relationship Management, Point-of-Sale
systems, and Enterprise Resource Planning.

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 ISP117-
BUSINESS
INTELLIGENCE
2.1) Best Friends for life:
(Chapter 2: fitting
BI with Other BI and Data Warehousing.
Technology
Disciplines)

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 ISP117-
BUSINESS
INTELLIGENCE
The collision of data-warehousing
technologies with BI practices was a
(Chapter 2: fitting
BI with Other
Technology
Disciplines)
Eureka! moment for companies.

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 ISP117-
BUSINESS
INTELLIGENCE When the two concurrent goals came together it was a
(Chapter 2: fitting
chocolaty-peanut butter delight. (From a business
BI with Other perspective, anyway.)
Technology
Disciplines)

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 ISP117-
BUSINESS
INTELLIGENCE
Like you and your Jowa (lol), BI and data
(Chapter 2: fitting
BI with Other warehousing are inseparably linked.
Technology
Disciplines)

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 While each discipline is important in its own right,
ISP117- together they enable businesses to go beyond organizing
BUSINESS operational data.
INTELLIGENCE

(Chapter 2: fitting
BI with Other
BI and data warehousing make a excellent
Technology combination, a powerful competitive weapon that can
Disciplines)
actually guide the business in ways previously
considered impossible.

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 ISP117-
BUSINESS
INTELLIGENCE
2.1.1) The data-warehouse: no forklift
(Chapter 2: fitting
BI with Other required.
Technology
Disciplines)

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 ISP117-
BUSINESS
INTELLIGENCE
The whole purpose of a BI implementation is to turn
operational data into meaningful knowledge.
(Chapter 2: fitting
BI with Other
Technology
Disciplines)
That means BI must be connected with an
organization’s data to be effective.

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 ISP117-
BUSINESS
INTELLIGENCE
What is Data-warehouse again? (from your data
(Chapter 2: fitting mining subject)
BI with Other
Technology
Disciplines)

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 ISP117-
BUSINESS
INTELLIGENCE A data warehouse is a single logical (but not
(Chapter 2: fitting
necessarily physical) repository for a company’s
BI with Other
Technology
transactional or operational data.
Disciplines)

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 Every byte of data inside the data warehouse
has its origins elsewhere in the company.

ISP117- Or in Patrick’s words

BUSINESS POS
INTELLIGENCE

(Chapter 2: fitting
BI with Other
Technology CRM DATA
Disciplines) WAREHOUSE

OTHER
SOURCES

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 Data warehouses are different from standard transaction-based
database management systems (DBMS).
ISP117-
BUSINESS A data warehouse aggregates information about a single subject area
INTELLIGENCE
and management then uses that resource in one of two ways:
(Chapter 2: fitting
BI with Other • to create focused reports on one aspect of the enterprise
Technology
Disciplines) • to query in order to gain insights on that subject

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 ONE OF THE KEY DIFFERENCE

ISP117-
BUSINESS DATA-WAREHOUSE DATABASE MANAGEMENT
INTELLIGENCE SYSTEM
(Chapter 2: fitting Read-Only
BI with Other Create
Technology
Disciplines) Update
Delete
Edit

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 ISP117-
BUSINESS
INTELLIGENCE
Turning “apples-to-celery” into
“apples-to-apples”
(Chapter 2: fitting
BI with Other
Technology
Disciplines)

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 A data warehouse is a collection of data from different
systems, focusing on one subject area.
ISP117-
BUSINESS
INTELLIGENCE But because the data originates from a multitude of
(Chapter 2: fitting
sources, it’s going to be in different formats.
BI with Other
Technology
Disciplines) Part of a data warehouse implementation involves
manipulation or transformation of the data prior to
storage so that it resides in a single common format.

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 Imagine you’re merging phone lists from two different Excel spreadsheets.
One lists names as “Smith, Jason E.” and the other spreadsheet lists names in
the format “Jason E. Smith”. There are some names that appear on both lists,
but some are unique to one list or the other.

ISP117- After merging the two lists, you alphabetize them and look at a sample of the
BUSINESS combined list:
INTELLIGENCE
Table 1: Phonebook
(Chapter 2: fitting
BI with Other
Technology
Disciplines)

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 ISP117-
BUSINESS
INTELLIGENCE If you’ve merged the lists without transforming
(Chapter 2: fitting the data into a single format, the result is a unified
BI with Other
Technology but confusing list.
Disciplines)

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 ISP117-
BUSINESS
INTELLIGENCE

(Chapter 2: fitting 2.1.2) Data-warehouses resolves differences

BI with Other
Technology
Disciplines)

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 Warehousing data can be an enormous task and you
ISP117-
BUSINESS have to do three things to all that data from disparate
INTELLIGENCE sources:
(Chapter 2: fitting
BI with Other • Put the information in a single format.
Technology
Disciplines) • Check for systemic data errors.
• Translate the data into useful units of knowledge.

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 ISP117-
BUSINESS
INTELLIGENCE

(Chapter 2: fitting
BI with Other
Technology Fig 1.0: A common data warehousing architecture, greatly simplified.
Disciplines)

The diagram shows a simple system where three different

systems that collect similar data feed information into a data
warehouse, which offers a single view of reality.

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 ISP117-
BUSINESS
INTELLIGENCE

(Chapter 2: fitting 2.1.3) All paths lead to the data-warehouse

BI with Other
Technology
Disciplines)

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 sales transaction details
accounting data
ISP117-
BUSINESS
INTELLIGENCE
Companies store an incredible amount of
(Chapter 2: fitting
BI with Other operational data:
Technology
Disciplines)
operational reports
personnel information

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 ISP117- For BI to work, it requires wide-open roads between the
BUSINESS
INTELLIGENCE places where the data lives. There can’t be barricades,
checkpoints, or washed out bridges.
(Chapter 2: fitting
BI with Other
Technology
Disciplines) When all of an organization’s information is present,
correct, and relatable to itself, BI can function at the
highest level.

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 ISP117- Data warehousing is a key technology for
BUSINESS
INTELLIGENCE enabling BI.
(Chapter 2: fitting
BI with Other That’s not to say you can’t do data
Technology
Disciplines) warehousing without BI.

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 Imagine a manager who wants to keep an eye on
operations at the call center. The key to making this happen
is data-warehousing technology that does its work in this
ISP117- sequence:
BUSINESS
INTELLIGENCE

(Chapter 2: fitting
BI with Other 1. Brings in external data from different sources.
Technology 2. Transforms the data into a common format.
Disciplines)
3. Cleans the data for any incorrect or missing data.
4. Correlates the calls and call durations with operational and
transactional information from other parts of the company.
5. Produces regular daily reports that show the correlation.

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 ISP117-
BUSINESS
INTELLIGENCE
2.2) ERP and BI:
(Chapter 2: fitting
BI with Other Taking Enterprise to Warp Speed.
Technology
Disciplines)

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 From the advent of business computers, up through the late 1980s
and early 1990s, the systems that drove and supported the
enterprise were designed and run mostly independently of each
other.
ISP117-
BUSINESS Even systems that would naturally fit together say, finance and
INTELLIGENCE accounting or supply chain and inventory were built and
(Chapter 2: fitting operated as separate entities.
BI with Other
Technology
Disciplines)
In the early 1990s, companies began to see computing power as a
way to integrate vast and diverse transactional systems.

As a result, Enterprise Resource Planning (ERP) systems were

born.

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 ISP117-
BUSINESS
INTELLIGENCE

(Chapter 2: fitting 2.2.1) From mainframes to client/server

BI with Other
Technology
Disciplines)

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 The computing power that originated most legacy software was
centered on mainframe computers, gargantuan machines (especially
the older ones) that existed in big rooms, or even took up entire
floors of buildings.
ISP117-
BUSINESS
INTELLIGENCE

(Chapter 2: fitting
BI with Other
Technology
Disciplines)

https://erpcontact.ro/index.php/blog/item/40-mainframe-story.html

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 ISP117-
BUSINESS
INTELLIGENCE It takes a whole lot of team of Electrical
(Chapter 2: fitting Engineers, Programmers to operate these
BI with Other
Technology computers(especially the older ones) that handles
Disciplines)
business data.

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 microcomputers (which we know now as personal computers)
were getting small and powerful enough to place on
workers’ desktops, bringing about the rise of the
ISP117- client/server model.
BUSINESS
INTELLIGENCE

(Chapter 2: fitting
BI with Other
1980’s
Technology
Disciplines)
That led to pulling tasks away from the legacy systems
and pushing them to workers’ desktops.

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 ISP117-
BUSINESS
INTELLIGENCE ERP came about as companies saw the need to
(Chapter 2: fitting integrate the core business computing systems to fit
BI with Other
Technology
with their new client/server architecture.
Disciplines)

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 ISP117-
BUSINESS
INTELLIGENCE
And so they asked… Why do data processing in one
(Chapter 2: fitting central place, when the work can be done on
BI with Other
Technology computers distributed throughout the business?
Disciplines)

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 ISP117-
BUSINESS
INTELLIGENCE

(Chapter 2: fitting 2.2.2) The great migration

BI with Other
Technology
Disciplines)

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 The advantages of running ERP systems were
clear. Workers could produce and consume data as
ISP117-
BUSINESS never before.
INTELLIGENCE

(Chapter 2: fitting The old centralized data processing applications could now become
BI with Other
Technology more interactive, and customized to fit the company’s needs.
Disciplines)
And yet the client/server architecture still provided centralized storage
of information, which meant ERP applications could run and have
everyone in a company looking at the same data.

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 ISP117-
BUSINESS
INTELLIGENCE

(Chapter 2: fitting 2.2.3) Cold War Reporting

BI with Other
Technology
Disciplines)

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 In the early days of ERP, the focus was on merely
replicating the core functionality of the legacy systems, so
ISP117- ERP software was relatively light on reporting capabilities.
BUSINESS
INTELLIGENCE

(Chapter 2: fitting
The systems may have been unified, but there usually was
BI with Other still a need to call in armies of programmers to hard-
Technology
Disciplines) code custom reports against the transactional databases
just like before.

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 ISP117-
BUSINESS
INTELLIGENCE

(Chapter 2: fitting 2.2.4) ERP leads to the foundations of BI

BI with Other
Technology
Disciplines)

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 The weaknesses of hard-coding reports was apparent,
as were the problems associated with trying to use data
ISP117-
from live transactional and operational systems in queries
BUSINESS and reports.
INTELLIGENCE

(Chapter 2: fitting
BI with Other
Technology
Disciplines)

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 ISP117- These challenges led ERP companies to begin
BUSINESS
INTELLIGENCE incorporating some basic data-warehousing
(Chapter 2: fitting
approaches into the new unified suites of applications
BI with Other in conjunction with some advanced reporting
Technology
Disciplines) capabilities.

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 ISP117- Forward-thinking ERP vendors started adding powerful
BUSINESS
INTELLIGENCE reporting and analytic packages to their application
(Chapter 2: fitting
suites to add further value for their customers.
BI with Other
Technology
Disciplines) Thus, the foundation for BI was laid.

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 ISP117-
BUSINESS
INTELLIGENCE

(Chapter 2: fitting
BI with Other
End of Chapter 2.0
Technology
Disciplines)

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