Business Intelligence Frameworks

Business Intelligence

Bayu Setiaji, M.Kom

Magister Teknik Informatika

 Intro

Bayu Setiaji, M.Kom

bayusetiaji@amikom.ac.id

Dept. of Informatics
Fac. of Computer Science

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 Definitions

• BI is an umbrella term that combines architectures, tools, databases, analytical tools,

applications, and methodologies
• BI is a content-free expression, so it means different things to different people
• BI's major objective is to enable easy access to data (and models) to provide business
managers with the ability to conduct analysis
• BI helps transform data, to information (and knowledge), to decisions, and finally to
action

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 Definitions

BI System:
BI systems combine data gathering, data storage, and knowledge management with
analytical tools to present complex internal and competitive information to planners and
decision makers.

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 A Brief History

• Richard Millar Devens is credited with the first use of the term “Business
Intelligence” when, in 1865, he described how Sir Henry Furnese, a banker, was
getting ahead of his competitors by collecting data to better support his business
decisions.

• The concept was simple: rely on historical data, not instinct, to develop his
organization’s strategy. While the principle has not really changed since then, BI has
been able to take advantage of various technological advances to improve over time.

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 A Brief History

https://www.openmindt.com/en/blog/msp-en/improve-your-strategic-decision-making-with-business-intelligence

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 Data Framework

structured vs. semi-structured

The term semi-structured data is used for all data that does not fit neatly into relational or
flat files (structured data). Semi-structured (rather than the more common unstructured)
is used to recognize that most data has some structure to it.
Example (semi-structured):
e-mail is divided into messages and messages are accumulated into file folders.

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 Data Framework

Examples (semi-structured):
• Chats
• Emails
• Graphics
• Image files
• Video files
• Letters
• Spreadsheet files
• etc..

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 Data Framework

The term semi-structured data can mean different things in different contexts. For
example, for relational databases it refers to data that can’t be stored in rows and
columns. This data must, instead, be stored in a BLOB (binary large object) a catch-all
data type available in most DBMS software. Dealing with unstructured data requires
classification and taxonomy. [Blumberg and Atre, 2003c]

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 Architectures

Structured Data
acquisition  integration  clean up

search  analysis  delivery Action

Semi-Structured Data
acquisition  integration  clean up

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 Architecture

• Semi-structured data are equally important, if not more, as structured data for taking
action by planners and decision makers. A second implication is that the process of
acquisition, cleanup, and integration applies for both structured and semi-structured
data.
• To create business intelligence information, the integrated data are searched,
analyzed, and delivered to the decision maker. In the case of structured data, analysts
use Enterprise Resource Planning (ERP) systems, extract-transform-load (ETL) tools,
data warehouses (DW), data-mining tools, and on-line analytical processing tools
(OLAP). But a different and less sophisticated set of analytic tools is currently
required to deal with semi-structured data.

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Architecture for Structured Data

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 Architecture for Structured Data

Typical BI architecture for structured data centers on a data warehouse. The data are
extracted from operational systems and distributed using Internet browser technologies.
The specific data needed for BI are downloaded to a data mart used by planners and
executives. Outputs are acquired from routine push of data from the data mart and from
response to inquiries from Web users and OLAP analysts. The outputs can take several
forms including exception reports, routine reports, and responses to specific request. The
outputs are sent whenever parameters are outside pre-specified bounds.

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Architecture for Semi-Structured Data

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 Architecture for Semi-Structure Data

BI architecture for semi-structured data includes business function model, business

process model, business data model, application inventory, and meta data repository
[Moss, 2003].

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Architecture for Semi-Structured Data

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 Styles

http://innovacons.com/wp/wp-content/uploads/2013/04/5-styles-bi-3-
e1365326134569.png
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 The Origins and Drivers

• Where did modern approaches to data warehousing (DW) and BI come from?
• What are their roots, and how do those roots affect the way organizations are
managing these initiatives today?

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 The Origins and Drivers

Today’s investments in information technology are under increased scrutiny in terms of

their bottom-line impact and potential. The same is true of DW and the BI applications
that make these initiatives possible.

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 The Origins and Drivers

Organizations are being compelled to capture, understand, and harness their data to
support decision making in order to improve business operations. Legislation and
regulation (e.g., the Sarbanes-Oxley Act of 2002) now require business leaders to
document their business processes and to sign off on the legitimacy of the information
they rely on and report to stakeholders. Moreover, business cycle times are now
extremely compressed; faster, more informed, and better decision making is therefore a
competitive imperative. Managers need the right information at the right time and in the
right place.
This is the mantra for modern approaches to BI.

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 The DSS – BI Connection

First,
Their architectures are very similar because BI evolved from DSS. However, BI implies
the use of a data warehouse, whereas DSS may or may not have such a feature.
BI is therefore more appropriate for large organizations (because data warehouses are
expensive to build and maintain), but DSS can be appropriate to any type of
organization.

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 The DSS – BI Connection

Second,
Most DSS are constructed to directly support specific decision making.
BI systems, in general, are geared to provide accurate and timely information, and they
support decision support indirectly.
This situation is changing, however, as more and more decision support tools are being
added to BI software packages.

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 The DSS – BI Connection

Third,
BI has an executive and strategy orientation, especially in its BPM and dashboard
components.
DSS, in contrast, is oriented toward analysts.

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 The DSS – BI Connection

Fourth,
Most BI systems are constructed with commercially available tools and components that
are fitted to the needs of organizations.
In building DSS, the interest may be in constructing solutions to very unstructured
problems. In such situations, more programming (e.g., using tools such as Excel) may be
needed to customize the solutions.

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 The DSS – BI Connection

Fifth,
DSS methodologies and even some tools were developed mostly in the academic world.
BI methodologies and tools were developed mostly by software companies.
(See Zaman, 2005, for information on how BI has evolved.)

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 The DSS – BI Connection

Sixth,
Many of the tools that BI uses are also considered DSS tools. For example, data mining
and predictive analysis are core tools in both areas.

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 The DSS – BI Connection

Although some people equate DSS with BI, these systems are not, at present, the same. It
is interesting to note that some people believe that DSS is a part of BI—one of its
analytical tools. Others think that BI is a special case of DSS that deals mostly with
reporting, communication, and collaboration (a form of data-oriented DSS).

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