Business Intelligence

Presented by:

Vijaykanth.RVenkatakondan.R

INTRODUCTION

BI refers to application and technology, which is used to gather, provide access to, and analyze data and information about the company

operations BI is neither a product nor a system. It is an architecture and a collection of

integrated operational as well as decision-support applications and

databases that provide the business community easy access to business

data

History Of Business Intelligencein 1979, John Rockart published the article “Chief Executives Define Their Own Data Needs” proposing that systems used by

corporate leaders ought to give them data about the key jobs the company must do well

to succeed.

Ten years later, in 1999, Howard Dresner coined the term “business intelligence” to describe

systems that help decision makers throughout the organization understand the state of their

company’s world.

In January 2006, Thomas Davenport published the results of a two year study “Competing on Analytics”. His research identified that virtually all the organizations identified as “aggressive

analytics competitors” were the clear leaders in their fields, and they attribute much of their success to the masterful exploitation of data. Such companies included: Tesco, Wal-Mart,

Dell, Marriott Hotels and Progressive Insurance.

How do I make decissions in my business? • How does the company make decissions? Using intuition? You have to make business decisions based on reality (facts and numbers!)

• EPM (Enterprise Performance Management) is a management style focused on measuring companies

• Several Methodologies / Strategies:

• Balanced Scorecard

• Six Sigma, ABC - Activity Based Costing, TQM - Total Quality Management

Types of decisions

Semi structuredStructured Non structured

Strategic

Tactic

Operational

Business Problem

• Where is the problem? • Marketing Mgr is right: the data IS in the servers • IT Mgr is also right: is not easy to give data the right

structure to answers questions • For IT is just enough to deal with data, Marketing

needs to extract information from this data.

Data and information are not the same

• • • Companies always maintain several systems to run

their everyday business • • • All of the company workers add and check data from

this systems all the time • • • However sometimes this data, presented in this way,

is not enough to make business decisions

OBJECTIVES

• Identify market opportunities• Know where market share is unsatisfactory• Better understand their profitability drivers• Identify unacceptable cost areas• Gain an accurate view of sale and/or distribution costs,

per channel, per customer, per transaction, per day• Recognize business areas of high performance• Identify the key performance indicators [KPI's] to use to

measure capability• Calculate sales commissions, number of sales closed,

highlight good and poor performers• Track whether strategies for certain markets or

customers are working and driving business value• Get instant insight to the exact profit by company of

each sale

What is Business Intelligence (BI)?

IT-enabled business decision making based on simple to complex data analysis processes

• Database development and administration• Data mining• Data queries and report writing• Data analytics and simulations• Benchmarking of business performance• Dashboards• Decision support systems

Why BI?

Make more informed business decisions:• Competitive and location analysis• Customer behavior analysis• Targeted marketing and sales strategies• Business scenarios and forecasting• Business service management• Business planning and operation optimization• Financial management and compliance

• Knowledge of database systems and data warehousing technologies

• Ability to manage database system integration, implementation and testing

• Ability to manage relational databases and create complex reports

• Knowledge and ability to implement data and information policies, security requirements, and state and federal regulations

Critical Technology Knowledge and Skills

Understanding of the flow of information throughout the organization

Ability to effectively communicate with and get support from technology and business specialists

Ability to understand the use of data and information in each organizational units

Ability to present data in a user-centric frameworkAbility to understand the decision making process and to

focus on business objectivesAbility to train business users in information management

and interpretation

Critical Business and Customer Skills and Knowledge

BI Technologies

need to have a secure computer system which can specify different levels of user

access to the data 'warehouse',

need to have sufficient data capacity, a plan for how long data will be stored

(data retention).

BI analysts have developed software tools to gather and analyze

large quantities of unstructured data such as

production metrics, sales statistics,

attendance reports,customer attrition figures.

BI Tools

AQL – Associatede Query LogicBalanced Scorecard

Business Activity MonitoringBusiness Performance Management

Business Planning Business Process Re-engineering

Competitive AnalysisUser/End-User Query and Reporting

Enterprise Management SystemExecutive Information System

SCM – Supply Chain ManagementDemand Chain Management

and Finance and Budgeting tools.

Incre

asin

g V

alu

e

Generational Step

TransactionalReporting

Slice/DiceAd-hoc Query,

BI Tools

PerformanceManagement (KPI, Guided

Analytics)

Fact-Based Actions (OLAP/In-Memory,

Statistics )

IntelligentInteractions

(Data Mining)

How are my export and domestic sales doing

Can I understand my gross margin return on space?

How is the business doing compared to last year? Compared to plan?

Are there any potential out-of-stock situations region warehouse wise?

Reporting

Analysis

Forecasting

Predictive

The BI Value Proposition

BI – Traditional Models

Non-OLAPData Models

(Programming, Visual Query

Tools,In-Memory, etc)

Real timeReporting

Operational Business Intelligence

Easy-to-use Front-end for

Business users

BI – Next Generation BI Flow

Supporting Business Activity Monitoring (BAM)

So What is Business Intelligence?• It includes everything :

– Ad Hoc, Interactive, Visual Reporting– Interactive Analysis– What-if Analysis– Descriptive and Predictive Modeling

• Need to define ways of inducting BI

• Every company needs a customized approach

TECHNOLOGY

Business Challenges

Transaction Volume

Market Volatility

Consolidation

SuppliersGovernment Reforms

CustomerManagement

Manpower

Competition

Designing and implementing a Business Intelligence Program

Factors need to be consideredGoal Alignment queries

Baseline queriesCost and risk queries

Customer and Stakeholder queriesMetrics-related queries

Measurement Methodology-related queries

Results-related queries

The Future of BI…

BI users are beginning to demand [Real time BI] or near real time

analysis relating to their business, particularly in front line operations.

They will come to expect up to date and fresh information in the same fashion as they monitor stock quotes

online.

Monthly and even weekly analysis will not suffice

The Future of BI…

"Business users don't want to wait for information. Information needs to be always on

and never out of date.

This is the way we live our lives today. Why should Business Intelligence be any

different?"

Charles Nicholls, CEO of SeeWhy, a Software company,

Windsor UK

BI 2.0

“BI 2.0" is the recently-coined term which is part of the continually developing BI

industry and heralds the next step for BI.

“BI 2.0" is used to describethe acquisition, provision

and analysis of "real time" data.

"Real Time BI…a pipe dream”

As long as Business Intelligence relies upon some kind of data warehouse structure

(including web-based virtual data "warehouses"), data will have to be converted into "a lowest common

denominator consistent set."

When it comes to dealing with multiple, disparate data sources and the

constantly changing, often volatile, business environment which

requires tweaking and restructuring of IT systems, getting BI data in a genuinely

true, "real time" format remains, "a pipe dream.....Hayler

"Real Time BI - Get Real"

"The mismatch between fantasy and reality is driven by two factors.

The first is that business rules and structures (general ledgers, product classification, asset hierarchies, etc.) are not in fact

uniform, but are spread out among many disparate transaction system

implementations...

The second problem is that the landscape of business structures is itself in constant flux, as groups reorganize, subsidiaries are sold or new companies acquired".

…Veteran Analyst… Andy Hayler…