The Essentials of Business Intelligence

Drivers of Business Intelligence• Understanding market segments• Which customers are most likely to respond to

my promotion?• Lifetime profitability of the customers• Fraud detection• Which customer is at risk of leaving• Channel optimisation

Drivers of Business Intelligence

Process of intelligence creation & BI Intelligence creation includes:• Identifying And prioritizing specific BI projects• Measures to estimate cost benefit ratio• Cost of maintaining the application• Benefit estimationIntelligence creation started with• Data collection Analysis of raw data to

produce usable Appropriate dissemination Right user

Characteristics of Business Intelligence• Simple point to access to information.• Timely answer to business questions.• Using BI in all departments of an organization.• Maintain Quality and Consistency• Manage Interdependencies• Align With Strategy

BI Implementation• Precondition: Framework for planning• Define strategic & operational objectives.• Have a in place plan to prepare the

organization for change.• Assessments before any significant

investment.• From assessments: a detailed action plan• Report of BI implementation & it’s relation

with other systems like ERP and CRM.

Structure And Components of BI• The Data Warehouse: A special database to

support decision making.• Business Analytics: To create on-demand

reports and queries and to conduct analysis of data.

• Data Mining: Data information analysis looks for hidden patterns in a group of data.

• Business Performance Management: A framework for defining, implementing, and managing an enterprise’s business strategy.

Major components of Business intelligence

Data Warehouse• Subject oriented• Scrubbed so that data from heterogeneous sources are

standardized• Time series; no current status• Nonvolatile – Read only

• Summarized• Not normalized; may be redundant• Data from both internal and external sources is present• Metadata included– Data about data• Business metadata• Semantic metadata

Business Analytics• Activities performed by end users in online systems– Specific, open-ended query generation• SQL

– Ad hoc reports– Statistical analysis– Building DSS applications

• Modeling and visualization capabilities• Special class of tools– DSS/BI/BA front ends– Data access front ends– Database front ends– Visual information access systems

Data Mining

• Organizes and employs information and knowledge from databases

• Statistical, mathematical, artificial intelligence, and machine-learning techniques

• Automatic and fast• Tools look for patterns – Simple models – Intermediate models– Complex Models

Business performance management

• Based on balanced scorecard, a framework for managing strategy by linking objectives with factual measurements.

• Compare business performance with established targets

• Generally includes dashboards• Dashboards reflect the health of the business– KPIs– Trends and patterns– Complex Models

Summary• Quality and timeliness of business information is

extremely important.• Industry analyst report: coming year, millions of

people will use BI visual tool.• BI combined with AI – potential trend (service

oriented architecture)• BI spreading it’s wing to cover small, medium and

large companies.• Analytical tools penetrating the market for very

specialized functions.(just BA instead of BI)