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Business Intelligence: Big Results with a Small Budget Jeff Pittges Assistant Professor Radford University www.radford.edu/~jpittges [email protected] / 540- 831-5175

Business Intelligence: Big Results with a Small Budget Jeff Pittges Assistant Professor Radford University jpittges [email protected]

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Business Intelligence:Big Results with a Small

Budget

Business Intelligence:Big Results with a Small

Budget

Jeff PittgesAssistant ProfessorRadford University

www.radford.edu/[email protected] / 540-831-

5175

Jeff PittgesAssistant ProfessorRadford University

www.radford.edu/[email protected] / 540-831-

5175

2

Industry Background

3

Going Global

The following slides were presented

by Paul Grossman at the

February 2009 NCTC Technology & Toast

ExportVirginia.org

4

THE REAL WORLD

POPULATION

Source: www.world mapper.org

5

THE REAL WORLD

CONTAINER PORTS

Source: www.world mapper.org

6

THE REAL WORLD

HIGH TECH EXPORTS1990

Source: www.world mapper.org

7

THE REAL WORLD

HIGH TECH EXPORTS 2002

Source: www.world mapper.org

8

What If

• You could view your business like these maps of the world?

• You could identify trends and compare your business to your competitors with respect to the market?

• You could see opportunities?

QuickTime™ and aTIFF (Uncompressed) decompressor

are needed to see this picture.

9

Business Intelligence

A set of tools and techniques

that help people and companies

make better decisions

10

2009 Gartner Prediction

Because of lack of information, processes,

and tools, through 2012, more than 35 per-

cent of the top 5000 global companies will

regularly fail to make insightful decisions

about significant changes in their business

and markets.

http://en.wikipedia.org/wiki/Business_intelligence

11

BI Technologies

Data Warehousing OLAP Executive Dashboards Data Mining Decision Support Systems (DSS) Expert Systems

12

Drowning in DataStarving for Information

13

Data Warehousing

14

Warehouses Report the Facts

• Who

• What

• When

• Where

• Why

15

OnLine Analytical ProcessingOnLine Analytical Processing

The process of slicing and dicing data:

– Drill Down

– Drill Up

– Drill Across

OLAP

16

OLAP Example

Analyze quarterly sales

– Expected 10% increase in revenue

– Realized a 9.5% increase

– Why did quarterly revenue fall short of expectations?

17

Investigate the Facts

• Why were sales short of expectations?

• When – Compare sales in Q1 2005 to Q1 2006

• What -- Product hierarchy

• Who -- Customers

18

WhenTime Dimension

Year

Quarter

Month

Week

Day

19

Time Dimension

2005 Q1

Q2

Q3

Q4

Q1

Q2

2006

Tim

e

20

Sales by Quarter

Q1 ‘05 Q1 ‘06

$100

$109.5

9.5%

Quarter

21

Drill Downinto Department

- Clothes- Electronics- Books

WhatProduct Hierarchy

Category

Brand

Product

Department

22

Product Dimension

2005 Q1

Q2

Q3

Q4

Q1

Q2

2006

Tim

e

Product

BooksElectronicsClothes

23

Sales By Department

Clothes Electronics Books

10%

10.3% 10.4% 8.7%

Q1‘06

Q1‘06

Q1‘06

Dept

24

Drill Down into BooksProduct Hierarchy

Category

Brand

Product

Department

25

Product Dimension

2005 Q1

Q2

Q3

Q4

Q1

Q2

2006

Tim

e

Product

BooksElectronicsClothes

26

Sales by Book Category

10%

Novels

10.6%

Textbooks

Q1‘06

6.8%

Q1‘06

Category

27

Who

• Age group

• Gender

• Marital status

• Occupation

• Annual income

Customer Dimension

28

Drill Down into Age Group

10%

25 - 45

10.9%

Q1‘06

4.2%

Q1‘06

Under 25 46 - 65

10.4%

Q1‘06

Over 65

11.1%

Q1‘06

Age

29

Customer Dimension

2005 Q1

Q2

Q3

Q4

Q1

Q2

2006

Tim

e

Product

BooksElectronicsClothes

Under 25

Over 65

25 - 45

46 - 65

30

Analysis

• Sales of textbooks to customers under 25 (students) fell well short of expectations

• What should the company do?

• Increase advertisements and incentives for textbooks to students

31

Executive Dashboards

32

Monitoring Your Business

• Management by Objective (MBO)

– Sales -- revenue targets

– Customer Support -- customer satisfaction

• Key Performance Indicators (KPI)

– Measure performance

• Dashboard Displays KPIs

– Color coded Green Yellow Red

33

Example Dashboard

34

Clicking on Virginia drills down toInventory by City

Alexandria Richmond Roanoke

InventoryLevel

35

Data Mining

Knowledge Discovery

Identify patterns in your data

36

Market Basket AnalysisIdentify items purchased together

37

Data Mining Tasks

• Predict – Churn Analysis – Increase response rate

• Estimate – Customer satisfaction and renewal rate

• Classify – Fraud Detection

38

Business Intelligence Tools

39

Enterprise Architecture

ProductionSystems

Extract Load

Transform

DataWarehouse

Reporting OLAP GUI

DataMining

ExternalData

Sources

40

Open Source Technologies

Extract LoadTransform

DataWarehouse

DataMining

ReportingJasperSoft

Reporting

Warehouse

MySQLMining

Weka

PentahoData Integration (ETL)

41

42

Service Providers

Software as a Service (SaaS)

On Demand

Hosted Applications

43

Attaain Inc.Active Intelligence for Strategic Advantage™

Competitive Intelligence Real-time intelligence

Companies, people and markets Easy to use, web-based system Customized tracking according to your

company’s lines of business Online dashboard Automated e-mail alerts Extensive web marketing analytics Cost-effective month-to-month subscription

44

RU Can Help You

• Six Concentrations

• Internships and Permanent positions

• Small Project Support Center

Computer Science Information SystemsDatabase

Software Engineering Networking Web Development

45

References

• Attaain

• JasperSoft

• MySQL

• Pentaho

• Weka