Introduction to Business IntelligenceIntroduction to Business Intelligence

Turban’s Textbook DefinitionTurban’s Textbook Definition

business intelligence (BI) business intelligence (BI)

A conceptual framework for decision A conceptual framework for decision support. It combines architecture, support. It combines architecture, databases (or data warehouse), analytical databases (or data warehouse), analytical tools and applications tools and applications

Other DefinitionsOther Definitions

Wikipedia:Wikipedia: Business intelligence (BI) refers to skills, technologies, Business intelligence (BI) refers to skills, technologies,

applications and practices used to help a business acquire a applications and practices used to help a business acquire a better understanding of its commercial context. Business better understanding of its commercial context. Business intelligence may also refer to the collected information itself.intelligence may also refer to the collected information itself.

BI for DummiesBI for Dummies Business intelligence is essentially timely, accurate, high-value, Business intelligence is essentially timely, accurate, high-value,

and actionable business insights, and the work processes and and actionable business insights, and the work processes and technologies used to obtain them.technologies used to obtain them.

Other definitions on the webOther definitions on the web

Benefits of BIBenefits of 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 making Improved decision making Improved customer service Improved customer service Increased revenueIncreased revenue

Changing Business Environments Changing Business Environments and Computerized Decision Supportand Computerized Decision Support

Technologies that Support BITechnologies that Support BI

A Framework for A Framework for Business Intelligence (BI)Business Intelligence (BI)

This is where our class focuses.

Typical BI ArchitectureTypical BI Architecture

OLTP Databases vs. OLAP Data WarehousesOLTP Databases vs. OLAP Data Warehouses OLTP DatabaseOLTP Database

Supports day-to-day operationsSupports day-to-day operations Organized according to Organized according to business functionbusiness function

• e.g. Adventureworks schemas: human resources, production, purchasing, salese.g. Adventureworks schemas: human resources, production, purchasing, sales Volatile (lots of updates) Volatile (lots of updates) normalized normalized Data is real-time (current, based on most recent transactions)Data is real-time (current, based on most recent transactions) Relational database architectureRelational database architecture

OLAP Data WarehouseOLAP Data Warehouse Supports decision makingSupports decision making Organized according to Organized according to subject areassubject areas

• e.g. Main facts tables in AdventureWorksDW deal with Finance and Salese.g. Main facts tables in AdventureWorksDW deal with Finance and Sales Nonvolatile (read-only) Nonvolatile (read-only) non-normalized non-normalized Data is historical (not current)Data is historical (not current) Multidimensional database architectureMultidimensional database architecture Historical trendsHistorical trends

• e.g. AdventureWorksDW’s facts tables are indexed by e.g. AdventureWorksDW’s facts tables are indexed by timetime