business intelligence introduction & overview business intelligence introduction & overview
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Business IntelligenceBusiness IntelligenceIntroduction & OverviewIntroduction & Overview
What is Business IntelligenceWhat is Business Intelligence
MonitoringMonitoringDashboards, scorecards and alerts
AnalyzingAnalyzingDrill down, exception reports, root-cause analysis, multidimensional analysis
ReportingReportingDetailed operational data
Sharing standardized reports
PlanningPlanningCreate plans, models and scenarios, which are then fed back into the monitoring layer and encoded as targets and thresholds.
“No matter where you start, you should be able to move up and down layers seamlessly without awkward context shifts to gather insights, take action and optimize performance” - TDWI
““A broad category of applications and technologies for gathering, storing, analyzing, A broad category of applications and technologies for gathering, storing, analyzing, sharing andsharing and providing accessproviding access to datato data to help enterprise users make better business to help enterprise users make better business decisionsdecisions”” - Gartner- Gartner
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BI Defined: Information Driving BI Defined: Information Driving Organizational PerformanceOrganizational Performance
Business intelligence Business intelligence
is an umbrella term foris an umbrella term for • Applications Applications
• Infrastructure, Infrastructure, platforms, tools platforms, tools
• Best practices Best practices
which enable the analysis of which enable the analysis of information in order to information in order to optimize decisions and optimize decisions and manage performance.manage performance. Information
Performance
Decisions
Analysis
What Questions can BI answer?What Questions can BI answer?
Where are we?Where are we? What were our sales this month?What were our sales this month?
Where are we going?Where are we going? Are our sales trending up or down?Are our sales trending up or down?
Why is this happening?Why is this happening? Why are sales going down?Why are sales going down?
What is going to happen in the future?What is going to happen in the future? Forecasting / What If analysisForecasting / What If analysis
How can I plan for the future?How can I plan for the future? Planning / Goal SettingPlanning / Goal Setting
Where is BI utilized?Where is BI utilized?
OperationsOperations
ERP Reporting/AnalysisERP Reporting/Analysis KPI trackingKPI tracking Maximizing profitsMaximizing profits Risk ManagementRisk Management Activity Based CostingActivity Based Costing LogisticsLogistics
Customer RelationshipsCustomer Relationships
Sales forecastingSales forecasting SegmentationSegmentation Cross-sellingCross-selling CRM analysisCRM analysis Campaign planningCampaign planning Customer profitabilityCustomer profitability
The Simple Business Intelligence The Simple Business Intelligence ModelModel
Collect data using a wide variety of sources and Collect data using a wide variety of sources and formatsformats
Organize information (and resources) for multiple Organize information (and resources) for multiple uses and usersuses and users
Judge the value (of information and resources)Judge the value (of information and resources) Assist in the analysis process by determining the Assist in the analysis process by determining the
pertinence, reliability, and validity of information pertinence, reliability, and validity of information gatheredgathered
Disseminate Disseminate informationinformation, but communicate , but communicate intelligenceintelligence that leads to ACTION that leads to ACTION Weigh the options; consider the alternativesWeigh the options; consider the alternatives
Business Intelligence (BI)Business Intelligence (BI)
Time savings Time savings Single version of truth Single version of truth Improved strategies Improved strategies
and plans and plans Improved tactical Improved tactical
decisionsdecisions More efficient More efficient
processes processes Cost savingsCost savings
Faster, more accurate Faster, more accurate reporting reporting
Improved decision Improved decision making making
Improved customer Improved customer service service
Increased revenueIncreased revenue
The Benefits of BI
8
Main BI TopicsMain BI Topics Data warehousing – Making historical data available for
analytics Data preparation – Extraction, transformation and loading Query - a collection of specifications that enables you to
focus on a particular set of data. Online Analytical Processing (OLAP) - a capability of
information systems that supports interactive examination of large amounts of data from many perspectives.
Reporting - generates aggregated views of data to keep the management informed about the state of their business.
Data mining - extraction of knowledge by utilizing software that can isolate and identify previously unknown patterns or trends in large amounts of data.
Business Intelligence Business Intelligence
BI Users
Executives
Managers
OperatorsData
BusinessEnvironment DecisionsData
Business Analytics
BI Applications:- Data warehousing-Data mining- BPM- OLAP- etc.
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BI Product ProvidersBI Product Providers
MicrosoftMicrosoft SASSAS IBM / SPSSIBM / SPSS OracleOracle SyBaseSyBase Business ObjectsBusiness Objects
The Different Users of Business The Different Users of Business IntelligenceIntelligence
There are many different users who can benefit from There are many different users who can benefit from business intelligencebusiness intelligence Executives – Those who focus on the overall businessExecutives – Those who focus on the overall business Business Decision Makers – Usually focused on single Business Decision Makers – Usually focused on single
areas of the business (finance, HR, manufacturing, and areas of the business (finance, HR, manufacturing, and so forth)so forth)
Information Workers – Typically managers or staff Information Workers – Typically managers or staff working in the back officeworking in the back office
Line Workers – Employees who might use BI without Line Workers – Employees who might use BI without knowing itknowing it
Analysts – Employees who will perform extensive data Analysts – Employees who will perform extensive data analysisanalysis
Business ScorecardsBusiness Scorecards
• This screenshot shows a couple of simple scorecards.
• Scorecards can contain KPIs that can be expanded or collapsed, and they can contain different indicators to show the strength or health of a KPI.
• These scorecards can also be filtered to narrow down products, regions of the world, and so forth.
The Purpose of a Scorecard The Purpose of a Scorecard A scorecard should give an executive a visual
representation of the health of an organization in a single glance
The scorecard is of sufficiently high level to represent major business operations and their goals
The data in a scorecard should be as recent as possible to make them more actionable
What is a Balanced Scorecard?What is a Balanced Scorecard?
A method of measuring activities and outcomes
for effective performance management
A method of measuring activities and outcomes
for effective performance management
Activity & Outcome MeasuresActivity & Outcome Measures
Activity MeasuresActivity Measures Internal Business Process PerspectiveInternal Business Process Perspective Learning and Growth PerspectiveLearning and Growth Perspective
Outcome MeasuresOutcome Measures Customer PerspectiveCustomer Perspective Financial PerspectiveFinancial Perspective
Balanced Scorecard Performance MeasuresBalanced Scorecard Performance Measures
Customer Perspective
New Hire Termination %Quality of Hire
Cycle Time to HireVoluntary Turnover %
Employee Satisfaction Score
Financial Perspective
Non-productive Labor Cost %Average Cost per Claim
Cost per HireHR Expenses per 100 FTEAccrual Liability per FTE
Overtime Pay RatioBonus Ratio %
OU
TC
OM
E M
EA
SU
RE
S
What are the Challenges?What are the Challenges? Identifying which performance measures are Identifying which performance measures are
relevant for each scorecard recipientrelevant for each scorecard recipient Balancing the weight applied to each measure in Balancing the weight applied to each measure in
proportion to overall performanceproportion to overall performance Compiling and staging the source dataCompiling and staging the source data Designing a dynamic architecture to minimize Designing a dynamic architecture to minimize
maintenance efforts and maximize flexibility and maintenance efforts and maximize flexibility and performanceperformance
Securely deploying the scorecards in a large Securely deploying the scorecards in a large enterprise environmententerprise environment
Balanced Scorecard Data ModelBalanced Scorecard Data Model
INFORMATICA POWERCENTER (ETL)Performance Measure Calculation at all Levels of Aggregation
INFORMATICA POWERCENTER (ETL)Performance Measure Allocation and Distribution
Balanced Scorecard Data Model
INFORMATICA POWERCENTER (ETL)Base Measure Sourcing and Aggregation
Staging Model- Current Fully Aggregated
Data Store
BSC_REPORTING
PK,FK5 POSITION_IDPK,FK1 EOM_DATEPK,FK2 MEASURE_IDPK,FK3 USER_IDPK,FK4 CHILD_USER_IDPK,FK6 ORG_UNIT_IDPK,FK7 CHILD_ORG_UNIT_ID
CHILD_RELATIVE_LEVELCHILD_ABSOLUTE_LEVELORG_UNIT_RELATION_TYPEACTUAL_VALUETARGET_VALUELOW_THRESHOLDHIGH_THRESHOLDWEIGHTRESULT_SCORE
BSC_DATE
PK EOM_DATE
MONTH_NUMMONTH_NAMEQUARTER_NUMQUARTER_NAMEYEAR_NUM
ORG_UNIT
PK ORG_UNIT_ID
ORG_UNIT_NAME
USER
PK USER_ID
USER_NAME
POSITION
PK POSITION_ID
POSITION_NAME
MEASURE
PK MEASURE_ID
MEASURE_NAMEMEASURE_GROUP_IDMEASURE_GROUP
CHILD_USER
PK CHILD_USER_ID
CHILD_USER_NAME
CHILD_POSITION
PK CHILD_POSITION_ID
CHILD_POSITION_NAME
CHILD_ORG_UNIT
PK CHILD_ORG_UNIT_ID
CHILD_ORG_UNIT_NAME
POWER ANALYZER
ERP GL Budget
CRM SCM HRMS Other
ScorecardControls
Scorecard DataCapture Apps
Pre-Staging Model- Historical Partially Aggregated
Data Store
Balanced Scorecard Model- Pre-calculated and aggregated
for all scorecard recipients
Note: This model is a simplified conceptual model only.
Extract, Transform & LoadBase Measure Sourcing and Aggregation
Extract, Transform & LoadPerformance Measure Calculation at all Levels of Aggregation
Extract, Transform & LoadPerformance Measure Allocation and Distribution
Business Intelligence Software
Balanced Scorecard Data Model
Note: This model is a simplified conceptual model only.
Deployment ConsiderationsDeployment Considerations Easy to navigate web-based interfaceEasy to navigate web-based interface Drill down, through or across the dataDrill down, through or across the data Restrict data access by userRestrict data access by user Facilitate minimal report maintenance (data Facilitate minimal report maintenance (data
driven)driven) Alerting – when thresholds are crossedAlerting – when thresholds are crossed Indicators – performance ‘at a glance’Indicators – performance ‘at a glance’ Must be able to explore subordinate’s Must be able to explore subordinate’s
performance levelperformance level
The Contents of a ScorecardThe Contents of a Scorecard Scorecards usually contain some or all of the Scorecards usually contain some or all of the
following elements:following elements: Key Performance Indicators (KPIs)Key Performance Indicators (KPIs) KPI actual values compared to historical values KPI actual values compared to historical values
(for trend analysis)(for trend analysis) KPI actual values compared to a forecast or KPI actual values compared to a forecast or
budget amountbudget amount Rankings of different departments, locations, Rankings of different departments, locations,
products, and so forthproducts, and so forth
BI SuccessesBI Successes Continental Airlines consolidated several customer
databases into a single, strategic data warehouse and BI initiative that helped it become first in its industry for customer service. Its example demonstrates how companies can achieve competitive advantage.
UniCredit took a leading role in a new credit portfolio management market, thanks to a BI solution. This included an integrated data warehouse, risk modeling, rule-based warnings and an interactive reporting portal.
The Richmond Police Department in Virginia deployed a variety of analytical and predictive tools to determine likely areas of criminal activity so that officers could be proactively deployed to deter crime, rather than reactively respond to criminal activity.
Other BI applications: Other BI applications: To Store & Analyze Data Data Mining, Framing & WarehousingData Mining, Framing & Warehousing (DSS) and Forecasting (DSS) and Forecasting Document Warehouse & ManagementDocument Warehouse & Management Knowledge ManagementKnowledge Management Mapping, Mapping, Information Visualisation and Dashboarding; Information Visualisation and Dashboarding; Management Information System (MIS);Management Information System (MIS); Geographic Information System (GIS); Geographic Information System (GIS); Trend Analysis; Trend Analysis; Software As A Service (SaaS) Software As A Service (SaaS) Business Intelligence offerings (On Demand)Business Intelligence offerings (On Demand) Online Analytical Processing (OLAP) and Online Analytical Processing (OLAP) and Multidimensional analysisMultidimensional analysis sometimes called "Analytics“ (based on the "hypercube" or "cube"); sometimes called "Analytics“ (based on the "hypercube" or "cube"); Real Time Business IntelligenceReal Time Business Intelligence Statistics and Technical Data AnalysisStatistics and Technical Data Analysis Web Mining, Text Mining and Web Mining, Text Mining and Systems IntelligenceSystems Intelligence
Other BI applications are used Other BI applications are used to analyze or manage the to analyze or manage the
"human" side of businesses"human" side of businesses, ,
Customer Relationship Customer Relationship Management (CRM)Management (CRM)
Marketing ToolsMarketing Tools
Human Resources Human Resources applications.applications.
Web PersonalisatiuonWeb Personalisatiuon
Conclusion: Conclusion: Business Intelligence Today and Business Intelligence Today and
TomorrowTomorrow Today’s organizations are deriving more value from BI Today’s organizations are deriving more value from BI
by extending actionable information to many types of by extending actionable information to many types of employees, maximizing the use of existing data assetsemployees, maximizing the use of existing data assets
Visualization tools including dashboards are used by Visualization tools including dashboards are used by producers, retailers, governments, and special agenciesproducers, retailers, governments, and special agencies
More and more industry-specific analytical tools will flood More and more industry-specific analytical tools will flood the market to perform almost any kind of analysis and to the market to perform almost any kind of analysis and to facilitate informed decision making from the top level to facilitate informed decision making from the top level to the user levelthe user level
A potential trend involving BI is its possible A potential trend involving BI is its possible merger with merger with artificial intelligence artificial intelligence (AI)(AI)
BI ApplicationsBI Applications
Fraud detectionFraud detectionClickstream MiningClickstream MiningMarket SegmentationMarket SegmentationRetailRetailTelecommunicationTelecommunicationBanking& FinanceBanking& FinanceCRMCRM
BI system at Hero MotoCorpBI system at Hero MotoCorp
AnalyticsAnalytics DashboardsDashboards Decision support Decision support
systemssystems Online analytical Online analytical
processingprocessing Querying and Querying and
reportingreporting What-if analysisWhat-if analysis
Top managementTop management Finance and accountsFinance and accounts Human resourcesHuman resources Manufacturing / Manufacturing /
productionproduction Customer supportCustomer support MarketingMarketing SalesSales Information technologyInformation technology
BenefitsBenefitsAligned analysis with business Aligned analysis with business
objectives:objectives:Centralized information generationCentralized information generationReal time data analysis: Real time data analysis: BI has facilitated BI has facilitated
real time updates about critical business real time updates about critical business factors like sales for two wheelers, factors like sales for two wheelers, production, inventory analysis, etc. production, inventory analysis, etc.
One version of the truth:One version of the truth:What-if analysis:What-if analysis:
M&M Product MixM&M Product Mix
Analytics, Dashboards, Decision support systems, Querying Analytics, Dashboards, Decision support systems, Querying and reportingand reporting
With BI, accurate and timely information has become With BI, accurate and timely information has become available to Mahindra & Mahindra helping it reduce available to Mahindra & Mahindra helping it reduce reconciliations and better manage the billing process. This reconciliations and better manage the billing process. This has led to quicker payments and a reduction in account has led to quicker payments and a reduction in account receivables.receivables.
Analysis of data from sales, production and inventory data Analysis of data from sales, production and inventory data using BO Explorer has helped it improve its product mix.using BO Explorer has helped it improve its product mix.
BI has also enabled Mahindra & Mahindra to fulfill orders on BI has also enabled Mahindra & Mahindra to fulfill orders on time, thus increase its sales.time, thus increase its sales.
Improved visibility across locations has led to reduction in Improved visibility across locations has led to reduction in inventory and inventory carrying cost.inventory and inventory carrying cost.
Shoppers StopShoppers Stop With BI, Shoppers Stop is able to target micro-segments to ensure With BI, Shoppers Stop is able to target micro-segments to ensure
incremental business through promotions and messages sent to incremental business through promotions and messages sent to its customers. This has also helped the retailer to reduce inventory its customers. This has also helped the retailer to reduce inventory and still offer the customer what he wants by optimizing the and still offer the customer what he wants by optimizing the merchandise mix.merchandise mix.
The company analyzes the profiles of its stores located in the The company analyzes the profiles of its stores located in the cities with similar demographic spread to create new stores at new cities with similar demographic spread to create new stores at new locations. This analysis ensures that stories opened in the new locations. This analysis ensures that stories opened in the new cities have a higher probability of success.cities have a higher probability of success.
Monitoring sales patterns across stores helps the operations Monitoring sales patterns across stores helps the operations teams to tactically change store layouts or of the displayed teams to tactically change store layouts or of the displayed merchandise to attract customers. The same feedback helps the merchandise to attract customers. The same feedback helps the back office planners in adjusting flow of merchandise to the back office planners in adjusting flow of merchandise to the stores.stores.
BI has also helped Shoppers Stop to grow its online retail and BI has also helped Shoppers Stop to grow its online retail and improve the flow of referrals. improve the flow of referrals.