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Business IntelligenceBusiness Intelligence
Tracy HartleyZack Johnson
Marissa McGee
Tracy HartleyZack Johnson
Marissa McGee
What Is Business Intelligence?
What Is Business Intelligence?
• A set of concepts and methods to improve business decision-making by using fact based support systems.
• In other words, business intelligence is created from computer software that analyzes company data and creates useful reports that make the decision-making process more effective and efficient.
Wikipedia, encyclopedia
• A set of concepts and methods to improve business decision-making by using fact based support systems.
• In other words, business intelligence is created from computer software that analyzes company data and creates useful reports that make the decision-making process more effective and efficient.
Wikipedia, encyclopediaData
BIProgram Information
Reports
History…History…• Sun Tzu’s “The Art of War”
• One should have full knowledge of one’s own strengths and weaknesses as well as full knowledge of one’s enemy’s strengths and weaknesses.
• Before the Information Age• Businesses struggled with the up keep of
information and storage.• The process was slow and often ineffective.
• Modern Business• Technology has allowed for more effective and
efficient systems.• Up to the minute data and analysis.
• Sun Tzu’s “The Art of War”• One should have full knowledge of one’s own
strengths and weaknesses as well as full knowledge of one’s enemy’s strengths and weaknesses.
• Before the Information Age• Businesses struggled with the up keep of
information and storage.• The process was slow and often ineffective.
• Modern Business• Technology has allowed for more effective and
efficient systems.• Up to the minute data and analysis.
Basic Components of Any BI Program
Basic Components of Any BI Program
• Data warehouse: a database that holds business information from many sources in the enterprise, covering all aspects of the company’s processes, products and customers (Stair, 219)
• Data mart: Subsets of a data warehouse that bring data to small and medium-sized businesses as well as the different departments of larger businesses (Stair, 221)
• Data warehouse: a database that holds business information from many sources in the enterprise, covering all aspects of the company’s processes, products and customers (Stair, 219)
• Data mart: Subsets of a data warehouse that bring data to small and medium-sized businesses as well as the different departments of larger businesses (Stair, 221)
Data MiningData Mining
• An automated analysis that looks for patterns and relationships in data warehouses.
• Computer software that requires the user’s trust to find all of the valid relationships needed.
• Bottom-up analysis that creates hypothesis and predictions.
• An automated analysis that looks for patterns and relationships in data warehouses.
• Computer software that requires the user’s trust to find all of the valid relationships needed.
• Bottom-up analysis that creates hypothesis and predictions.
OLAPOLAP
• Online Analytical Processing• Creates reports using the data
warehouses• A top-down analysis that requires
user created queries to match information and determine relationships.
• Requires a high level of user skills and understanding of the system.
• Online Analytical Processing• Creates reports using the data
warehouses• A top-down analysis that requires
user created queries to match information and determine relationships.
• Requires a high level of user skills and understanding of the system.
Key Differencesbetween Data Mining and
OLAP
Key Differencesbetween Data Mining and
OLAP
• Data mining takes the data and finds relationships despite the user’s assumptions.
• OLAP finds relationships in the data according to the user’s assumption.
• Data mining takes the data and finds relationships despite the user’s assumptions.
• OLAP finds relationships in the data according to the user’s assumption.
The Five Stages of BIThe Five Stages of BI• Data Sourcing
• Data Analysis
• Situation Awareness
• Risk Analysis
• Decision Support
• Data Sourcing
• Data Analysis
• Situation Awareness
• Risk Analysis
• Decision Support
Data SourcingData Sourcing
• Extracts data from different areas• Memos• Reports• E-mails• Photos
• Data is collected through• Database queries• Web searches
• Extracts data from different areas• Memos• Reports• E-mails• Photos
• Data is collected through• Database queries• Web searches
Data AnalysisData Analysis
• Search through the data to find that which is relevant to the company’s needs.
• Also known as data mining• Can be in the form of current
or future trends.
• Search through the data to find that which is relevant to the company’s needs.
• Also known as data mining• Can be in the form of current
or future trends.
Situational AwarenessSituational Awareness
• Any irrelevant information is discarded and the relevant information is set in the context of the business and its environment.
• Applying the information to the problem.
• Any irrelevant information is discarded and the relevant information is set in the context of the business and its environment.
• Applying the information to the problem.
Risk AssessmentRisk Assessment
• Decisions are made in terms of what actions should be taken and when.
• Analyze the current and future risks associated with our decisions.
• Weigh the costs and benefits of making the decisions.
• Decisions are made in terms of what actions should be taken and when.
• Analyze the current and future risks associated with our decisions.
• Weigh the costs and benefits of making the decisions.
Decision SupportDecision Support
• Apply the information you need in an appropriate time frame and manner.
• Apply the information you need in an appropriate time frame and manner.
The Many Types of BIThe Many Types of BI
DATA• Data mining• Data warehouse• DSS• EIS• GIS• MIS• OLAP• Text mining
DATA• Data mining• Data warehouse• DSS• EIS• GIS• MIS• OLAP• Text mining
KNOWLEDGE• ExperienceKNOWLEDGE• Experience
Designing/ImplementingDesigning/Implementing
• Questions to ask
• Risk assessment
• Who uses BI?
• Companies/software
• Questions to ask
• Risk assessment
• Who uses BI?
• Companies/software
Assessments to be Made by the Company Before Implementing a BI
Program
Assessments to be Made by the Company Before Implementing a BI
Program
• Assess short- and long-term goals.• Set tangible goals with deadlines and
expectations
• Assess the current method of collecting business intelligence• Determine strengths and weaknesses• Is current method effective for
achieving goals?
• Assess short- and long-term goals.• Set tangible goals with deadlines and
expectations
• Assess the current method of collecting business intelligence• Determine strengths and weaknesses• Is current method effective for
achieving goals?
Assessments to be Made by the Company Before Implementing a BI
Program
Assessments to be Made by the Company Before Implementing a BI
Program
• Determine the financial consequences associated with a new BI program• Work with companies, such as IBM, to
adequately determine the needs of the company.
• Costs include more than just the software…
• Set-up• Employee training• Updating the system• Personnel• Maintenance
• Determine the financial consequences associated with a new BI program• Work with companies, such as IBM, to
adequately determine the needs of the company.
• Costs include more than just the software…
• Set-up• Employee training• Updating the system• Personnel• Maintenance
Assessments to be Made by the Company Before Implementing a BI
Program
Assessments to be Made by the Company Before Implementing a BI
Program
• Identify who is going to pay for the program.
• Determine any risks outside of cost that might arise from a new BI program
• Address possible benefits.• Both quantitative and qualitative
internal and external to the company.
• Weigh the costs and benefits
• Identify who is going to pay for the program.
• Determine any risks outside of cost that might arise from a new BI program
• Address possible benefits.• Both quantitative and qualitative
internal and external to the company.
• Weigh the costs and benefits
Assessments to be Made by the Company Before Implementing a BI
Program
Assessments to be Made by the Company Before Implementing a BI
Program
• Set up a system of metrics and measurements to analyze results.
• Benchmark against other companies.
• Evaluate system on a regular basis to allow for any corrections that need to be made.
• Set up a system of metrics and measurements to analyze results.
• Benchmark against other companies.
• Evaluate system on a regular basis to allow for any corrections that need to be made.
Companies That Provide BI Programs
Companies That Provide BI Programs
• IBM• Offers both software and hardware• Provides components of BI programs
and entire systems• Banking, Criminal, Retail and Insurance
are some of the industries IBM offers support to
• SAP• Oracle
• IBM• Offers both software and hardware• Provides components of BI programs
and entire systems• Banking, Criminal, Retail and Insurance
are some of the industries IBM offers support to
• SAP• Oracle
ApplicationsApplications• Sales
• Pricing• Profit margins• Which products are being purchased
• Consumer behavior• Which customers are buying what, when.• What factors effect purchasing behavior
• Competitive Intelligence• What our competitors doing that we
could/should be doing?• Do we have a competitive advantage?
• Counter Intelligence
• Sales• Pricing• Profit margins• Which products are being purchased
• Consumer behavior• Which customers are buying what, when.• What factors effect purchasing behavior
• Competitive Intelligence• What our competitors doing that we
could/should be doing?• Do we have a competitive advantage?
• Counter Intelligence
Boscov’s Department Store
Boscov’s Department Store
• Boscov’s Department Store• 40 stores in Pensylvania, New
York, New Jersey, Deleware, Maryland and Virginia
• Family owned company.• Upper level management includes
206 employees
• Boscov’s Department Store• 40 stores in Pensylvania, New
York, New Jersey, Deleware, Maryland and Virginia
• Family owned company.• Upper level management includes
206 employees
Doscov’s Department Store
Doscov’s Department Store
• Problem: Only able to provide weekly sales reports.• Insufficient for employees to keep the
shelves adequately stocked with the right products
• Unable to meet some customers’ immediate needs.
• Goal: Wanted to keep their company growing and provided more up-to-date reports.
• Problem: Only able to provide weekly sales reports.• Insufficient for employees to keep the
shelves adequately stocked with the right products
• Unable to meet some customers’ immediate needs.
• Goal: Wanted to keep their company growing and provided more up-to-date reports.
Boscov’s Department Store
Boscov’s Department Store
• Solution: IBM DB2 Universal Database for z/O• Provides buyers with mission-
critical business intelligence on sales performance
• Optimize performance of the data warehouse and the queries that buyers depend on to make important business decisions.
• Solution: IBM DB2 Universal Database for z/O• Provides buyers with mission-
critical business intelligence on sales performance
• Optimize performance of the data warehouse and the queries that buyers depend on to make important business decisions.
Boscov’s Department Store
Boscov’s Department Store
• Results: Able to provide current and accurate daily sales information• Making better sales decisions and
provide better products and services for its customers.
• Results: Able to provide current and accurate daily sales information• Making better sales decisions and
provide better products and services for its customers.
Safeway Club CardSafeway Club Card
• Means for company to track sales per customer.• Allows Safeway to target
profitable and discourage nonprofitable customers
• Can track purchasing trends• Better idea of what products sell
the best in different locations• Charge different prices for clients
for different floor location
• Means for company to track sales per customer.• Allows Safeway to target
profitable and discourage nonprofitable customers
• Can track purchasing trends• Better idea of what products sell
the best in different locations• Charge different prices for clients
for different floor location
General Problems/Shortfalls
General Problems/Shortfalls
• Supply chain value• Can not predict everything
• Weather• Human error• Any other examples you can think
of?• Important to determine if it is
faster to get information from BI and make adjustments according to things you cannot predict!!
• Supply chain value• Can not predict everything
• Weather• Human error• Any other examples you can think
of?• Important to determine if it is
faster to get information from BI and make adjustments according to things you cannot predict!!
