Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp As a Villanova graduate you are well positioned for a career in business technology consulting. It is easier to teach a business person technical skills, than to teach a technician business skills. Keep in mind:  Technology is Driving Business –Daily operation –Reacting to Change  Information Management is Hot –Getting value from ERP systems –Eliminating Silos –Recession = Efficiency  Explore All Opportunities –Interview Everywhere, Seek Interviews Outside of Nova Recruiting IT Career- Writing Code or Getting the Wireless to Work? Consulting Offers Unique Variety and Responsibilities for Analysts

Business Intelligence Facts Prepared for MGT 2206: Business Analytics September 11 th, 2008 Deloitte Consulting LLP

Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp Introduction to Business Intelligence Concepts  What is Business Intelligence (BI)?  Where does BI fit in Information Management?  What are the different components of BI?  Spotlight on Data Analytics  Reporting Basics

Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp Business Intelligence – Definition BI refers to the tools and process used by an organization to gain intelligent insight into its business through the use of a variety of actionable reports. Organizations have a lot of data flowing in and out of different departments, disparate systems, and numerous business process. The process of storing, retrieving, cleansing, and translating this data into meaningful information and subsequently managing this information is called Enterprise Information Management (EIM). BI is a component of EIM which concerns itself with finding meaning to this the information through monitoring, analysis, dissection (“slicing and dicing”), and other measurements. BI components include online analytical processing, Ad Hoc Querying/Reporting, Operational Reporting/Analytics, Analytical Dashboards/Scorecards, Data Mining, Forecasting, and Statistical Analysis. Turning information into intelligence

Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp Business Intelligence – Components ComponentFunctionalityMarket Leading Tool Operational Reporting/Analytics Canned and static reports geared toward reporting needs that change very infrequently and the use of analytic dashboards which employ visual alerts to present status updates and areas of concern for key performance indicators (KPIs) Actuate, Information Builders, Business Objects Ad Hoc Querying/Reporting Managed queries which are drawn from an environment with a defined set of query options that can be executed Business Objects, Cognos Online Analytical Processing (OLAP) An approach to quickly provide answers to analytical queries that are multidimensional in nature. At the heart of OLAP is cubes which is an arrangement of data in arrays to allow fast analysis OLAP can be used for data mining (see below) Hyperion, Oracle, Micro Strategy, Cognos DashboardsMonitor critical business metrics, alert issues that need attention, and manage indicators in order to take action faster. Allows for tracking of performance through scorecards and collaboration with others to follow recommended actions to improve organizational performance Cognos, Business Objects, Hyperion Data Mining/Forecasting/ Statistical Analysis The concept of predictive analytics, using unmanaged analytical models to exploit data and reveal future business performance, events, and customer behavior. It is the process of sorting through data to identify patterns and relationships SAS, IBM

Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp Business Intelligence – Data Mining Data mining is the process of discovering meaningful new correlations, patterns, and trends by sifting through large amounts of data stored in repositories, using pattern recognition technologies as well as statistical and mathematical techniques.  Data Mining can accomplish the following tasks: TaskExplanation Description Describe patterns and trends lying within data. High-quality description can often be accomplished by exploratory data analysis, a graphical method of exploring data in search of patterns and trends. Classification In classification, there is a target categorical variable, such as income bracket, which, for example, could be partitioned into three classes or categories: high income, middle income, and low income. The data mining model examines a large set of records, each record containing information on the target variable as well as a set of input or predictor variables. Estimation Estimation is similar to classification except that the target variable is numerical rather than categorical. Example, estimating the amount of money a randomly chosen family of four will spend for back-to-school shopping this fall. PredictionPrediction is similar to classification and estimation, except that for prediction, the results lie in the future Clustering Clustering refers to the grouping of records, observations, or cases into classes of similar objects. A cluster is a collection of records that are similar to one another, and dissimilar to records in other clusters. Clustering differs from classification in that there is no target variable for clustering. Association The association task for data mining is the job of finding which attributes “go together.” Most prevalent in the business world, where it is known as affinity analysis or market basket analysis, the task of association seeks to uncover rules for quantifying the relationship between two or more attributes. Example, examining the proportion of children whose parents read to them who are themselves good readers.

Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp Business Intelligence – Data Mining Tasks Examples Prediction/ForecastingEstimation Classification Clustering

Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp Business Intelligence – Vendors The magic Quadrant of vendors in the Business Intelligence Market:

Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp Business Intelligence Concepts 1.What is the difference between EIM (enterprise information management) and BI? Business Intelligence is a component of EIM 2.What is BI? Business Intelligence is defined as the process of finding meaning to data through monitoring, analysis, dissection (“slicing and dicing”), and other measurements. 3.Which of the following components are part of BI? A.Operational Reporting/Analytics B.Ad Hoc Querying/Reporting C.OLAP D.Dashboards E.Data Mining/Forecasting/Statistical Analysis 4.What is an OLAP Cube? A collection of one or more related measure groups and their associated dimensions 5.What is Ad Hoc Query? Ad hoc querying and reporting allows the users to create specific, customized queries typically through the use of report selection criteria, filters, mathematical operators, and expressions 6.What are Dashboards? A dashboard is a visual display of the most important information needed to achieve one or more objectives of an organization, consolidated and arranged on a single screen so the information can be monitored at a glance

Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp Major Reporting Requirements The key to driving better and more predictable business performance is to deliver timely and actionable information to the hands of every person throughout the enterprise. Reporting Requirements:  Report the detailed information needed by everyone for day-to-day decision making –Deliver detailed data on current and historical performance to users across the enterprise  Analyze data to uncover root causes and trends in business performance –Provide detailed insight into the business from many different angles so that managers can uncover the causes of performance problems, identify opportunities, and predict results. Users leverage the advanced analysis to reveal reasons for performance peaks or aberrations  Monitor the performance of the organization at all levels and in real time –Employ monitoring technology to constantly track business metrics. Users can then use their scorecards and dashboards to create actionable information and alerts about ongoing business activity. Users are empowered with up-to-the-minute information for their business decisions

Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp Report Summary  There are 3 types of reports, each one best suited for a specific audience: Financial (executive), Operational (Manager), and Analysis Reports (Analyst)  There are 3 typical reporting categories with following characteristics: –Standard Business Reporting: Supporting typical business needs, Collaboration mechanism for manipulation and analysis, Targeted at medium-sized groups of business users, Ideal cell-level local analysis and formatting –Analytical Reporting and Analysis: Analyzing data at a more discreet and interactive level than standard business reporting, OLAP, query, and analytics solutions, Targeted at small groups of producers, Ideal for ad hoc query and analysis –Operational Reporting: Targeting large scale business with multiple independent departments or functions with near real-time information, Format-centric production output and presentation solutions