business intelligence (bi). business intelligence…examples a hotel franchise uses bi analytical...
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Business Intelligence…examples A hotel franchise uses BI analytical applications to compile statistics on average
occupancy and average room rate to determine revenue generated per room. It also gathers statistics on market share and data from customer surveys from each hotel to determine its competitive position in various markets. Such trends can be analyzed year by year, month by month and day by day, giving the corporation a picture of how each individual hotel is faring.
A bank bridges a legacy database with departmental databases, giving branch managers and other users access to BI applications to determine who the most profitable customers are or which customers they should try to cross-sell new products to. The use of these tools frees information technology staff from the task of generating analytical reports for the departments and it gives department personnel autonomous access to a richer data source.
A telecommunications company maintains a multiterabyte decision-support data warehouse and uses business intelligence tools and utilities to let users access the data they need without giving them carte blanche to access hundreds of thousands of mission-critical records. The tools set boundaries around the data that users can access, creating data "cubes" that contain only the information that's relevant to a particular user or group of users.
BI Industry Scenario… Today's exciting BI market is ripe with opportunities to hit your strategic
business targets. Gaining market share, keeping customers and controlling costs remain key
objectives. Mid-market executives and big corporate department heads rush to cost effectively meet these complex needs. How? Through improved use of their existing database systems.
CFOs require 'business intelligence' systems that display accurate SKU or customer-level P&Ls, permitting reliable channel and store comparisons over time. Improved forecasts are vital, too!
Data warehousing and analytical skills are combined with an understanding of industry issues, as we refine and implement your vision.
According to Gartner survey of 1,400 CIOs, business intelligence was ranked the top technology priority surpassing security.
The BI and analytics market is currently valued at $8.5 Billion and is expected to grow to $13 Billion over the next five years
Business Intelligence (BI)
BI refers to application and
technology, which is used
to gather, provide access to, and analyze
data and informationabout the company
operations
Business Intelligence Definition
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.
BI Popularized…
In 1989 Howard Dresner
a Research Fellow at Gartner Group popularized "BI"
as an umbrella term to describe a set of concepts
and methods to improve business decision-making
by using fact-based support systems
Why BI solutions ?
More data and data sources…
Evolution from Static Report to BI…
Evolution of financial Systems…
Categories of Report Writers
Sources of Information for Vendor & Product Research
Key Stages of BI
Data Sourcing
Data Analysis
Situation Awareness
Risk Analysis
Decision Support
BI applications and technologies can help companies analyze:
changing trends in market share
changes in customer behavior and spending patterns
customers' preferences
company capabilities
market conditions
Significance of BI…To know about Customers
Having access to timely and accurate information is an important resource for a company, which can expedite decision-making and improve customers' experience.
In the competitive customer-service sector,
companies need to have accurate, up-to-date information on customer preferences,
so that the company can quickly adapt to their changing demands.
BI enables companies to gather information on the trends in the marketplace and
come up with innovative products or services in anticipation of customer's changing demands.
Significance of BI…To know about Competitors…Market…
BI applications can also help managers to be better informed about actions that a company's
competitors are taking.
BI systems can also be designed to provide managers with information on the state of economic trends or marketplace factors, or to provide managers
with in depth knowledge about the internal operations of a business.
Significance of BI…For avoiding Guesswork…
BI can be used to help analysts and managers determine which adjustments are most likely
to respond to changing trends.
BI systems can help companies develop a more consistent, data-based decision making process
for business decisions, which can produce better results than making business decisions by
"guesswork."
Significance of BI…For sharing of information…
BI can help companies share selected strategic information
with business partners.
Some businesses use BI systems
to share information with their suppliers like…..
inventory levels
performance metrics
other supply chain data
Significance of BI…For improving performance…
BI applications can enhance communication among departments, coordinate activities, and enable
companies to respond more quickly to changes (e.g., in financial conditions, customer
preferences, supply chain operations, etc.).
When a BI system is well-designed and properly integrated into a company's processes and decision-making process, it may be able to
improve a company's performance.
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.
Other BI applications are used to store and analyze data
Data Mining, Framing & Warehousing(DSS) and Forecasting
Document Warehouse & Manage,mentKnowledge Management
Mapping, Information Visualisation and Dashboarding;
Management Information System (MIS);Geographic Information System (GIS);
Trend Analysis; Software As A Service (SaaS)
Business Intelligence offerings (On Demand)Online Analytical Processing (OLAP) and
Multidimensional analysissometimes called "Analytics"
(based on the "hypercube" or "cube"); Real Time Business Intelligence
Statastics and Technical Data AnalysisWeb Mining, Text Mining and
Systems Intelligence
Other BI applications are used to analyze or manage the
"human" side of businesses,
Customer Relationship Management (CRM)
Marketing Tools
Human Resources applications.
Web Personalisatiuon
Some common factors of ill-equipped organizations to implement BI…
Lack of understanding of the complexity of BI decision-support projects
Lack of recognizing BI decision-support projects as cross-organizational business initiatives and not understanding that cross-organizational initiatives are different from stand-alone solutions
Unavailable or unwilling business representatives Unengaged business sponsors or business sponsors who
have little or no authority due to their low-level positions within the organization
Some common factors of ill-equipped organizations to implement BI…
Lack of skilled and available staff as well as suboptimum staff utilization
Inappropriate project team structure and dynamics No software release concept (no iterative development method) No work breakdown structure (no methodology) Ineffective project management (only project administration) No business analysis and no standardization activities No appreciation of the impact of dirty data on business profitability No understanding of the necessity for and the usage of meta data Too much reliance on disparate methods and tools (the "silver bullet"
syndrome)
Designing and implementing a Business Intelligence Program
Factors need to be consideredGoal Alignment queries
Baseline queries
Cost and risk queries
Customer and Stakeholder queries
Metrics-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
The Future of BI…
In the not too distant future companies will become dependent on real time business information in much the same fashion as people come to expect to get information on the internet in just one or two clicks. "This instant "Internet experience" will create the new framework for business intelligence, but business processes will have to change to accommodate and exploit the real-time flows of business data."
Nigel Stokes, CEO, DataMirror Corp.
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 - 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…
"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
1KEY – Data 2 Decision
Does your IT Infrastructure keep up with the changing needs and demand? Does your IT system help to provide business transformation and leadership? Do your organisation not dependent on spreadsheets for mass reporting? Don’t you feel at the mid-sea of database without direction to get useful
information out of that? Does your Organisation mass reporting system work at the speed of
thoughts? Do your technology capable of creating magic?
There is one solution to all your above questions……..
1KEY BI Software Product from MAIA Intelligence