1. Business IntelligenceBy
Mahesh R Sanghavi
Associate Professor,
SNJB’s KBJ CoE, Chandwad

2. Agenda Introduction to data, Information and knowledge
Decision Support System
Introduction to Business Intelligence
Defining BI Cycle
BI Environment and Architecture
Benefits of BI
Factors Responsible for successful BI Project
Challenges to Business Intelligence in an Organization

3. Data, Information, Knowledge
Items that are the most elementary descriptions of things, events, activities, and transactions
May be internal or external
Information
Organized data that has meaning and value
Knowledge
Processed data or information that conveys understanding or learning applicable to a problem or activity

4. Decision Support Systems
Decision-support systems are used to make business decisions, often based on data collected by on-line transaction-processing systems.
Examples of business decisions:
What items to stock?
What insurance premium to change?
To whom to send advertisements?
Examples of data used for making decisions
Retail sales transaction details
Customer profiles (income, age, gender, etc.)
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad

5. Decision-Support Systems: Overview
Data analysis tasks are simplified by specialized tools and SQL extensions
Example tasks
For each product category and each region, what were the total sales in the last quarter and how do they compare with the same quarter last year
As above, for each product category and each customer category
Statistical analysis packages (e.g., : S++) can be interfaced with databases
Statistical analysis is a large field, but not covered here
Data mining seeks to discover knowledge automatically in the form of statistical rules and patterns from large databases.
A data warehouse archives information gathered from multiple sources, and stores it under a unified schema, at a single site.
Important for large businesses that generate data from multiple divisions, possibly at multiple sites
Data may also be purchased externally
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad

6. 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
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad

7. What Is Business Intelligence?
·     Originally a term coined by the Gartner Group in 1993, Business Intelligence (BI) is a broad range of software and solutions aimed at collection, consolidation, analysis and providing access to information that allows users across the business to make better decisions.
·    The technology includes software for database query and analysis, multidimensional databases or OLAP tools, data warehousing and data mining, and web enabled reporting capabilities.
·    Applied across disciplines but especially in Customer Relationship Management (CRM), Supply Chain Management (SCM) Enterprise Resource Planning
Provide better, faster and more accessible reports
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad

8. Stages in Business Intelligence
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad

9. What is BI? (continued)
Improving organizations by providing business insights to all employees leading to better, faster, more relevant decisions
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad
© 2008 Accenture. All Rights Reserved.

10. Architecture of BI

11. 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
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad

12. Business Intelligence Loop
Business Strategist
OLAP
Data Mining
Reports
Decision
Support
Data Storage
Data
Warehouse
Extraction, Transformation,
& Cleansing
CRM
Clinical IS
Pharmacy
Lab
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad

13. Why do companies need BI?
What’s the best that can happen?
What will happen next?
What if these trends continue?
Why is this happening?
Optimization
Predictive Modeling
Forecasting/extrapolation
Statistical analysis
ANALYTICS
(Tactical & Strategic)
Competitive Advantage
Alerts
Query/drill down
Ad hoc reports
Standard reports
What actions are needed?
Where exactly is the problem?
How many, how often, where?
What happened?
DATA
ACCESS & REPORTING
(Operational)
Sophistication of Intelligence
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad
© 2008 Accenture. All Rights Reserved.

14. Changing Business Environment
The environment in which organizations operate today is becoming more and more complex
The complexity creates opportunities on one hand and problems on the other.
Business environment factors are divided into four major categories:
markets,
consumer demands,
technology,
societal
The intensity of these factors increases with time, hence more pressures, more competition, more management problems
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad
CISB594 – Business Intelligence

15. Business Environment Factors
FACTOR DESCRIPTION
Markets Strong competition
Expanding global markets
Blooming electronic markets on the Internet
Innovative marketing methods
Opportunities for outsourcing with IT support
Need for real-time, on-demand transactions
Consumer Desire for customization
demand Desire for quality, diversity of products, and speed of delivery
Customers getting powerful and less loyal
Technology More innovations, new products, and new services
Increasing obsolescence rate
Increasing information overload
Social networking, Web 2.0 and beyond
Societal Growing government regulations and deregulation
Workforce more diversified, older, and composed of more women Prime
concerns of homeland security and terrorist attacks
Increasing social responsibility of companies
Greater emphasis on sustainability
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad
– Business Intelligence

16. Decision Making in Business
Will require information
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad

17. Various tools and techniques in BI
Most sophisticated BI products include most of the above
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad
CISB594 – Business Intelligence

18. The architecture of Business Intelligence
Four major components
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad

19. 4 major components of Business Intelligence architecture
The data warehouse is a special database or repository of data that had been prepared to support decision making applications ranging from simple reporting to complex optimization
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad
Business Intelligence

20. 4 major components of Business Intelligence architecture
2. Business analytics are the software tools that allow users to create on-demand reports, queries and conduct analysis of data Originally they appear under the name online analytical processing (OLAP)
Data Mining - A class of information analysis based on databases that looks for hidden patterns in a collection of data which can be used to predict future behavior
e.g. Amazon.com uses data mining to predict the behaviour of their customers
Automated Decision Systems - Rule-based system that provide solution usually in one functional area to a specific repetitive managerial problems
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad
CISB594 – Business Intelligence

21. 4 major components of Business Intelligence architecture
3. Business performance management (BPM) based on balanced scorecard methodology – a framework for defining, implementing, and managing an enterprise’s business strategy by linking objectives with factual measures
Objective is to optimize overall performance of an organization. A real-time system that alert managers to potential opportunities, impending problems, and threats, and then empowers them to react through models and collaboration
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad
CISB594 – Business Intelligence

22. The architecture of Business Intelligence
4. User interface allows access and easy manipulation of other BI components
Tools used to broadcast information
Data visualization provides graphical, animation, or video
presentation of data and the results of data analysis
The ability to quickly identify important trends in corporate and market data can provide competitive advantage
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad
CISB594 – Business Intelligence

23. Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad
BI Challenges
Poor data quality
Bad quality of information – Dirty Data
Computer systems impede rather than enhance BI efforts
Context
Lack of standardize procedures or processes
User resistance
No Top Down support
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad

24. Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad
References
Prepared By : Mahesh R. Sanghavi, SNJB's KBJ CoE, Chandwad