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Business Intelligence
Lecture 25
What is Business Intelligence (BI) Definitions:
• Business Intelligence (BI) refers to skills, processes, technologies, applications and practices used to support decision making.
• Systems that provide directed background data and reporting tools to support and improve the decision-making process.
• A popularized, umbrella term used to describe a set of concepts and methods to improve business decision making by using fact-based support systems. The term is sometimes used interchangeably with briefing books and executive information systems.
• Business Intelligence is a broad category of applications and technologies for gathering, storing, analyzing, and providing access to data to help clients make better business decisions.
• A system that collects, integrates, analyses and presents business information to support better business decision making.
• Business Intelligence is an environment in which business users receive information that is reliable, secure, consistent, understandable, easily manipulated and timely...facilitating more informed decision making
What is BI (continued)
© 2008 Accenture. All Rights Reserved.
Improving organizations by providing business insights to all employees leading to better, faster, more relevant decisions
What is Business Intelligence?
Business Intelligence enables the business to make intelligent, fact-based decisions
Aggregate Data
Database, Data Mart, Data Warehouse, ETL Tools,
Integration Tools
Present Data
EnrichData
Inform a Decision
Reporting Tools, Dashboards, Static
Reports, Mobile Reporting, OLAP Cubes
Add Context to Create Information, Descriptive Statistics, Benchmarks, Variance to Plan or LY
Decisions are Fact-based and Data-driven
Content
The business determines the “what”, BI enables the “how”
Performance
Minimize report creation and collection times (near zero)
Usability
Delivery Method Push vs Pull
Medium Excel, PDF, Dashboard, Cube, Mobile Device
Enhance Digestion “A-ha” is readily apparent, fewer clicks
Tell a Story Trend, Context, Related Metrics, Multiple Views
CPU – Content, Performance, Usability
Core Capabilities of BI
OLAP (online analytical processing) enables a user to easily and selectively extract and view data from different points-of-view.
Why do companies need BI?
Tactical / Strategic BI
What’s the best that can happen?
What will happen next?
What if these trends continue?
Why is this happening?
What actions are needed?
Where exactly is the problem?
How many, how often, where?
What happened?
Sophistication of Intelligence
Operational BI
Optimization
Predictive Modeling
Forecasting/extrapolation
Statistical analysis
Alerts
Query/drill down
Ad hoc reports
Standard reports
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© 2008 Accenture. All Rights Reserved.
How Important is BI?
Top 10 Business and Technology Priorities for 2011:
1. Cloud computing 2. Virtualization 3. Mobile technologies 4. IT Management 5. Business Intelligence 6. Networking, voice and data communications 7. Enterprise applications 8. Collaboration technologies 9. Infrastructure 10. Web 2.0
Source: Gartner’s 2011 CIO Agenda (aka “
Reimagining IT: The 2011 CIO Agenda”).
The July 2010 Forrester report “Technology Trends That Retail CIOs Must Tap to Drive Growth” identified the following technologies that retail CIOs should be considering as part of an overall architecture strategy:
Mobile
Cloud
Social Computing
Supply Chain
Micropayments
Business Intelligence/Analytics
Why is Business Intelligence So Important?
Time
With Business Intelligence, we can get data to you in a timely manner.
Making Business Decisions is a Balance
Data Opinion
(aka Best Professional Judgment)
In the absence of data, business decisions are often made by the HiPPO.
Benefits of Business Intelligence
• Improve Management Processes– planning, controlling, measuring and/or changing resulting in
increased revenues and reduced costs
• Improve Operational Processes– fraud detection, order processing, purchasing.. resulting in
increased revenues and reduced costs
• Predict the Future
Examples- EMC
• 1998: Revenue $2.5b• 1998: HW (90%) + SVCS (10%) + SW (0%) Strategic BI: predictive modelling => decision
made
• HW (10%) + SVCS (10%) + SW (80%)• 2010: Revenue $16b
0
100
200
300
400
500
600
700
1 2 3 4 5 6 7 8 9 10 11 12 13
Fiscal Week
$ M
illi
on
s
• Factories ship ≈40% of quarterly revenue in last week!
• Build to Stock for orders in last two days!
Typical Activity by Week ($M) (Storage Products)
Bookings
Factory Shipments
EMC Quarter Activity
EMC Order Life Cycle
Prospect Lead Oppty Configure Price Quote Order Produce Ship Invoice Collect
CommissionsAccount Planning ProjectAccounting
ServiceSuspect
Channel IntegrationQuota
Examples- Walmart• Average daily sales of American Flags = 6,000 • September 11th 2001 • All competitors ran out of flags • Nearest rival sold 20,000 • Walmart sold 116,000 flags on that day alone
Further examples• Call centres
– e.g. Top Agent awarded bonus -> competition leading to performance improvements • Banks
– jettison walk in customers to encourage online only • Criminal Minds
– Information gathered on previous actions of serial killers allows the team to predict the actions of future serial killers
• Revenue Service– who has the yacht but cannot afford it
• Plagiarism detection in colleges
• Customer Loyalty Programs
• Twitter analysis for public mood
• Dell
• Healthcare– predicting infection in rural parts of third world
BI Golden Rules• Data Quality & Accuracy
• Data Consistency
• Data Timeliness
“Get the right information to the right people at the right time”
Gartner BI Maturity Model
Major BI Trends Mobile
Cloud
Social Media
Advanced Analytics
What BI technologies will be the most important to your organization in the next 3 years?
1. Predictive Analytics2. Visualization/Dashboards3. Master Data Management4. The Cloud5. Analytic Databases6. Mobile BI7. Open Source8. Text Analytics
TDWI Executive Summit – August 2010
Advanced Analytics / Predictive Analytics
Data Mining Regression Monte Carlo Simulation “Statistically Significant” Predicting Customer Behavior
Churn/AttritionPurchasesProfiling
BI Today vs Tomorrow “BI today is like reading the newspaper”
BI reporting tool on top of a data warehouse that loads nightly and produces historical reporting
BI tomorrow will focus more on real-time events and predicting tomorrow’s headlines
Collegiate Admissions Criteria Test Scores: SAT, ACT, AP Exams Grade Point Average Class Rank High School “Strength” Extracurricular Activities: Band/Choir, Clubs, Sports Non-School Activities: Work, Volunteer, Community Groups Area of Focus – Intended Major Family legacy Home State or Country
Regression Outcome = Graduation (binary) + GPA (linear)
Retail Analytics
Market Basket Analytics Text Analytics Customer Segmentation/Clustering Tailored Product Assortments Inventory Forecasting
25
Amazon.com and NetFlix
Collaborative Filtering tries to predict other items a customer may want to purchase based on what’s in their shopping cart and the purchasing behaviors of other customers
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What Is Text Analytics?
…turning unstructured customer comments into actionable insights
…finding nuggets of insight in text data that will improve our business
From Wikipedia:… a set of linguistic, statistical, and machine learning techniques that model and structure the information content of textual sources for business intelligence, exploratory data analysis, research, or investigation
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Customer Sat Survey
Comments
Unstructured Text Processing
Facebook Page
Blogs
Competitors’ Facebook
Pages Public Web Sites, Discussion Boards, Product Reviews
Alerts, Real-time
Action
TwitterPage
Services
Quality Cost Friendliness
Adhoc Feedback
Call Center Notes, Voice
What is Information Governance?
Information Governance
•Data Stewardship•Data Quality
•Data Governance•Master Data Management•Data Stewards for Master Data “Hubs”•Customer, Vendor, Product, Location, Employee, G/L Accounts
PREVENTS
Garbage In
Garbage Out
BY ENCOMPASSING
•Report Governance
•Metric Governance
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CREATING SIGNIFICANT BUSINESS VALUE
BI TechnologiesAnalytic Databases
BI is a consolidating industry
Oracle: Siebel, Hyperion, Brio, Sun SAP: Business Objects, Sybase IBM: Cognos, SPSS, Coremetrics, Unica, Netezza EMC: Greenplum HP: Vertica Teradata: Aster Data
Independent vendors: MicroStrategy, Informatica, SAS
Reporting standards determined mainly by Microsoft, Apple and Adobe
TeradataNetezza
DB2OracleSQL Server
VerticaAster DataPar AccelGreenplum
Semantic Databases(TIDE)
Why do companies need BI?
ANALYTICS(Tactical & Strategic)
What’s the best that can happen?
What will happen next?
What if these trends continue?
Why is this happening?
What actions are needed?
Where exactly is the problem?
How many, how often, where?
What happened?
Sophistication of Intelligence
DATA ACCESS & REPORTING(Operational)
Optimization
Predictive Modeling
Forecasting/extrapolation
Statistical analysis
Alerts
Query/drill down
Ad hoc reports
Standard reports
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© 2008 Accenture. All Rights Reserved.
Summary We covered Today
Knowledge and Knowledge ManagementBusiness Intelligence overview
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