Business Intelligence

O.A.Balasubramaniam

Business Intelligence

• Corporate data is undoubtedly one of the

most critical assets of any company

• Data is growing by 100% Every year

• Data generated in the 3 years is equivalent to

previous 30 years..

Data Growth

How we are going to

Manage with this?

What is

Information?

Information

Information is

an Organisational Asset

Information

should be used

as a tool

for strategic advantage

Data

vs

Information

Data is not information

Data vs Information

Data

• A “given,” or fact; a number, a statement, or a

picture

• Represents something in the real world

• The raw materials in the production

Information

• Data that have meaning within a context

• Data in relationships

• Data after manipulation

CURRENT STATUS OF DATA

Mountains of Data

What do I do???

How do I increase sales????

How do I make my product better???

Business Users

DATA – WHAT DO WE DO ??????

Organizations have LOTS of Data Data is not in a form that is useful to Decision-Makers

Not easy to Review Not Informative nor Insightful

THE PROBLEM

Mountains of Data Business People

GAP How do I increase

sales????

How do I make my product better???

How do I retain

customers?

The Problem

WHERE DO THESE DATA COME FROM ?

MRP SCM CRM Finance

Operations Sales Finance Procure- ment

SILOS OF DATA BY FUNCTIONAL AREA

Transaction

Layer

Reporting

Layer

WHERE DO THESE DATA COME FROM ?

Region: A Region: B Div 2 Div 1

Sales Sales Sales Sales

SILOS OF DATA WITHIN ORGANIZATIONS

Transaction

Layer

Reporting

Layer

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Common Pain Points ...

• Data everywhere, information no where

• Different users have different needs

• Excel versus PDF

• Pull versus push

• On demand – on schedule

• Your format – my format

• Takes too long – wasted resources/efforts

• Security

• “Why I just can’t get it to you when you want it”

Example: customer survey

• Reading through data collected from a

customer survey with questions in various

categories would be time-consuming and

not very helpful.

• When manipulated, the surveys may

provide useful information.

Data Manipulation

The existing Reporting system..

• You’re battling to answer basic questions about your business

• You spend more time collecting data than analyzing it

• You’re drowning in reports

• You have problems with the quality of the information you use

• You’re forced to make decisions with insufficient facts and

information

• You are having problems to combine data across different

systems and platforms

• You’re frustrated with the complexities of OLAP and one

dimensional view in Excel

Information & Management levels

Information & Management levels

High level reports

Executive Information

Decision Support

Queries and Report

Transaction Data

Types of Information Systems

• Transaction Processing Systems (TPS)

• Management Information Systems (MIS)

• Decision Support Systems (DSS)

• Executive Information System (EIS)

• Business Intelligence (BI)

• Designed to Staff and day-to-day transactions

• Automate handling of data about business activities

(transactions)

• Mostly transactions Eg.

• Entering Purchase orders

• Making sales invoices

• Entering production data

Transaction Processing Systems (TPS)

Management Information Systems (MIS)..

• Designed for the Managers

• Converts raw data from transaction processing

system into meaningful form

• Mostly reports and charts Eg.

• Value of Pending orders till date

• Sales made for the month of June

• Profit for the quarter

Decision Support Systems (DSS)

• Designed to help decision makers

• Provides interactive environment for decision

making

• What if Analysis and Extrapolations Eg.

• Value of sales in the month of March 2007 compared to

March 2006

• Reduction in sales value due to Price reduction

Executive Information System (EIS)

• Designed to the Top Management – Directors,

CEOs

• Graphs and High level Drill down Data

• Key business and Industry area Eg.

• Profit on Cleaning machines for Second Quarter

compared to First Quarter

• Sales forecast for the next 5 years

• Achieving 50% sales through exports

Business

Intelligence

Business Intelligence

It will Lead Business into the Future

The general categories of BI tools

• Spreadsheets

• Reporting and querying software

• tools that extract, sort, summarize, and present selected data

• OLAP

• Digital Dashboards

• Data mining

• Decision engineering

• Process mining

• Business performance management

• Local information systems

Evolution from Static Report to BI…

User Interaction

Low

Low High

High

1985

1992

1996

2002

Reporting – General Reports

Aggregation – Management Information Systems

Investigation – Executive Information Systems

Analysis – Online Analytical Processing

Advice – Data Mining

Action – Business Intelligence

Analytical Features

Plain Text Reports

Visual Charts

BI Tools Digital Dashboards

Evolution from Static Report to BI…

WHAT IS BUSINESS INTELLIGENCE (BI) !

Business Intelligence Is The Processes,

Technologies, And Tools That Help Us Change

Data Into Information, Information Into

Knowledge And Knowledge Into Plans That

Guide Organization

Technologies For Gathering, Storing,

Analyzing And Providing Access To Data To

Help Enterprise Users Make Better Business

Decisions

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What is Business Intelligence?

• Business Intelligence (BI) is about getting

• the right information,

• to the right decision makers,

• at the right time.

• BI is an enterprise Software

• BI leads to:

• Fact-based decision making

• “single version of the truth”

• BI includes reporting, analysis and decision making.

WHAT IS BUSINESS INTELLIGENCE IN SUMMARY

Data Analytics & Business Intelligence provide the Right

Information at the Right Time in the Right Way for more profitable decision-making.

Data Analytics with BI forms an Enterprise-wide platform for querying, analysis and Reporting to make better decisions.

Advanced BI solutions provide interactive analysis by integrating departments and Functions into one holistic view.

• Database systems and database integration

• Data warehousing, data stores and data marts

• Enterprise resource planning (ERP) systems

• Query and report writing technologies

• Data mining and analytics tools

• Decision support systems

• Customer Relation Management software

• Product Lifecycle Management (PLM) systems

Technologies Supporting BI

33

Improving organizations by providing business insights to all employees leading to • Better • Faster • More relevant decisions

Advanced Analytics

Self Service Reporting

End-User Analysis

Business Performance Management

Business Intelligence

34

Why BI? The Five Questions

• What happened?

• What is happening?

• Why did it happen?

• What will happen?

• What do I want to happen?

ERP CRM 3Pty SCM Misc Data

Past

Present

Future

Data

Make more informed business decisions

• Competitive and location analysis

• Customer behavior analysis

• Targeted marketing and sales strategies

• Business scenarios and forecasting

• Business service management

• Business planning and operation optimization

• Financial management and compliance

Why BI?

WHO USES BI

There are many different users who can

benefit from business intelligence

Executives

Business Decision Makers

Information Workers

Line Workers

Analysts

Business Intelligence thro Excel

Business Intelligence thro Excel

Digital Dashboard

A dashboard is a tool used for

collecting and reporting key

performance indicators in a quick

summary format.

A digital dashboard provides a consolidated view of information from multiple sources in a single web browser screen.

Digital Dashboard…

Dashboard of Marketing Campaign

Winter Olympic Games

BUSINESS PERFORMANCE MANAGEMENT

Source: Abeerdeen Research –Best in Class Trends for Business Planning

Key Performance Indicator (KPI)

Key Performance Indicator (KPI) is a measure of

performance of

- an Organisation

- a Department

- an Individual

Such measures are commonly used

to help an organization define and

evaluate how successful it is,

typically in terms of making

progress towards its long-term

organizational goals

KPI’s As Dash Board Elements

Manufacturing KPIs

• Production Capacity Trends

• Projected Inventory Surplus

• Days on Hand

• Production Shortage as percentage (%) of Demand

• Inventory Turns

• Production Cycle

• Equipment Utilization percentage (%)

• Inventory level at a given time

• Collections made during the day

• Days in Accounts Receivable

• Net Collection Percentage

• Percent of A/R over 90 days

• Profit before Tax

KPI’s As Dash Board Elements…

Financial KPIs

BI as a Balance Score Card

Increase the value of customer relationships

Respond quickly to changing markets and company sensitivities

Accelerate new product time-to-market

Reduce inventory investment

Improve planning, scheduling, and the procurement schedule

Maintain and develop quality assurance

Select and apply world-class technologies

BI’ Help in a Manufacturing Industry

Server

Data for BI

Operational Systems (Systems of Record)

Data Acquisition Programs

LAN/WAN

Internet/ Intranet

Branches

General purpose of BI

• Single Source of the Truth

• Increased Reporting Accuracy

• Spots Opportunity and Risks business-wide

• Conduct “what-if” analysis

• Tracks Past, Present and Future Business Scenarios

• Faster Deployment Time, Easy to use and meant for

executives for decision-making

Normal Reports

BI Reports

Depth of Business Intelligence

BI Vendors in The Market

No. Business Intelligence Tool Vendor

1. Oracle Enterprise BI Server Oracle

2. SAP Business Objects Enterprise SAP

3. SAP NetWeaver BI SAP

4. SAS Enterprise BI Server SAS Institute

5. Microsoft BI platform* Microsoft

6. IBM Cognos Series 8 IBM

7. Board Mgt Intelligence Toolkit Board International

8. BizzScore Suite EFM Software

9. WebFocus Information Builders

10. QlikView QlikTech

11. Microstrategy Microstrategy

12. Oracle Hyperion System Oracle

13. Actuate Actuate

Thank You…