1. Business Intelligence Introduction & Overview Business Intelligence Introduction & Overview

2. What is Business Intelligence Monitoring Dashboards, scorecards and alerts Analyzing Drill down, exception reports, root- cause analysis, multidimensional analysis Reporting Detailed operational data Sharing standardized reports Planning Create plans, models and scenarios, which are then fed back into the monitoring layer and encoded as targets and thresholds. “No matter where you start, you should be able to move up and down layers seamlessly without awkward context shifts to gather insights, take action and optimize performance” - TDWI “A broad category of applications and technologies for gathering, storing, analyzing, sharing and providing access to data to help enterprise users make better business decisions” - Gartner ?

3. BI Defined: Information Driving Organizational Performance Business intelligence is an umbrella term for Applications Applications Infrastructure, platforms, tools Infrastructure, platforms, tools Best practices Best practices which enable the analysis of information in order to optimize decisions and manage performance. Information Performance Decisions Analysis

4. What Questions can BI answer? Where are we? Where are we? What were our sales this month? What were our sales this month? Where are we going? Where are we going? Are our sales trending up or down? Are our sales trending up or down? Why is this happening? Why is this happening? Why are sales going down? Why are sales going down? What is going to happen in the future? What is going to happen in the future? Forecasting / What If analysis Forecasting / What If analysis How can I plan for the future? How can I plan for the future? Planning / Goal Setting Planning / Goal Setting

5. Where is BI utilized? Operations ERP Reporting/Analysis ERP Reporting/Analysis KPI tracking KPI tracking Maximizing profits Maximizing profits Risk Management Risk Management Activity Based Costing Activity Based Costing Logistics Logistics Customer Relationships Sales forecasting Sales forecasting Segmentation Segmentation Cross-selling Cross-selling CRM analysis CRM analysis Campaign planning Campaign planning Customer profitability Customer profitability

6. The Simple Business Intelligence Model Collect data using a wide variety of sources and formats Collect data using a wide variety of sources and formats Organize information (and resources) for multiple uses and users Organize information (and resources) for multiple uses and users Judge the value (of information and resources) Judge the value (of information and resources) Assist in the analysis process by determining the pertinence, reliability, and validity of information gathered Assist in the analysis process by determining the pertinence, reliability, and validity of information gathered Disseminate information, but communicate intelligence that leads to ACTION Disseminate information, but communicate intelligence that leads to ACTION Weigh the options; consider the alternatives Weigh the options; consider the alternatives

7. Business Intelligence (BI) Time savings Time savings Single version of truth Single version of truth Improved strategies and plans Improved strategies and plans Improved tactical decisions Improved tactical decisions More efficient processes More efficient processes Cost savings Cost savings Faster, more accurate reporting Faster, more accurate reporting Improved decision making Improved decision making Improved customer service Improved customer service Increased revenue Increased revenue The Benefits of BI

8. 8 Main BI Topics Data warehousing – Making historical data available for analytics Data preparation – Extraction, transformation and loading Query - a collection of specifications that enables you to focus on a particular set of data. Online Analytical Processing (OLAP) - a capability of information systems that supports interactive examination of large amounts of data from many perspectives.OLAP Reporting - generates aggregated views of data to keep the management informed about the state of their business. Data mining - extraction of knowledge by utilizing software that can isolate and identify previously unknown patterns or trends in large amounts of data.

9. Business Intelligence BI Users Executives Managers Operators Data Business Environment DecisionsData Business Analytics BI Applications: - Data warehousing -Data mining - BPM - OLAP - etc.

10. 10 BI Product Providers Microsoft Microsoft SAS SAS IBM / SPSS IBM / SPSS Oracle Oracle SyBase SyBase Business Objects Business Objects

11. The Different Users of Business Intelligence There are many different users who can benefit from business intelligence There are many different users who can benefit from business intelligence Executives – Those who focus on the overall business Executives – Those who focus on the overall business Business Decision Makers – Usually focused on single areas of the business (finance, HR, manufacturing, and so forth) Business Decision Makers – Usually focused on single areas of the business (finance, HR, manufacturing, and so forth) Information Workers – Typically managers or staff working in the back office Information Workers – Typically managers or staff working in the back office Line Workers – Employees who might use BI without knowing it Line Workers – Employees who might use BI without knowing it Analysts – Employees who will perform extensive data analysis Analysts – Employees who will perform extensive data analysis

12. Business Scorecards This screenshot shows a couple of simple scorecards. Scorecards can contain KPIs that can be expanded or collapsed, and they can contain different indicators to show the strength or health of a KPI. These scorecards can also be filtered to narrow down products, regions of the world, and so forth.

13. The Purpose of a Scorecard A scorecard should give an executive a visual representation of the health of an organization in a single glance The scorecard is of sufficiently high level to represent major business operations and their goals The data in a scorecard should be as recent as possible to make them more actionable

14. What is a Balanced Scorecard? A method of measuring activities and outcomes for effective performance management

15. Activity & Outcome Measures Activity Measures Activity Measures Internal Business Process Perspective Internal Business Process Perspective Learning and Growth Perspective Learning and Growth Perspective Outcome Measures Outcome Measures Customer Perspective Customer Perspective Financial Perspective Financial Perspective

16. Balanced Scorecard Performance Measures Learning & Growth Perspective Training Hours/FTE Productivity Gain per Training Hour OSHA Events/FTE Career Path Ratio Improving Performer Ratio Position Tenure Skill Match Ratio Internal Business Process Perspective HR Headcount per 100 FTE Unscheduled Overtime % Deficient Punch % Lost-time injuries per 100 FTE Self-Service Participation % Scheduling Effectiveness % ACTIVITY MEASURES Customer Perspective New Hire Termination % Quality of Hire Cycle Time to Hire Voluntary Turnover % Employee Satisfaction Score Financial Perspective Non-productive Labor Cost % Average Cost per Claim Cost per Hire HR Expenses per 100 FTE Accrual Liability per FTE Overtime Pay Ratio Bonus Ratio % OUTCOME MEASURES

17. What are the Challenges? Identifying which performance measures are relevant for each scorecard recipient Identifying which performance measures are relevant for each scorecard recipient Balancing the weight applied to each measure in proportion to overall performance Balancing the weight applied to each measure in proportion to overall performance Compiling and staging the source data Compiling and staging the source data Designing a dynamic architecture to minimize maintenance efforts and maximize flexibility and performance Designing a dynamic architecture to minimize maintenance efforts and maximize flexibility and performance Securely deploying the scorecards in a large enterprise environment Securely deploying the scorecards in a large enterprise environment

18. Balanced Scorecard Data Model Extract, Transform & Load Base Measure Sourcing and Aggregation Extract, Transform & Load Performance Measure Calculation at all Levels of Aggregation Extract, Transform & Load Performance Measure Allocation and Distribution Business Intelligence Software Balanced Scorecard Data Model Note: This model is a simplified conceptual model only.

19. Deployment Considerations Easy to navigate web-based interface Easy to navigate web-based interface Drill down, through or across the data Drill down, through or across the data Restrict data access by user Restrict data access by user Facilitate minimal report maintenance (data driven) Facilitate minimal report maintenance (data driven) Alerting – when thresholds are crossed Alerting – when thresholds are crossed Indicators – performance ‘at a glance’ Indicators – performance ‘at a glance’ Must be able to explore subordinate’s performance level Must be able to explore subordinate’s performance level

20. The Contents of a Scorecard Scorecards usually contain some or all of the following elements: Scorecards usually contain some or all of the following elements: Key Performance Indicators (KPIs) Key Performance Indicators (KPIs) KPI actual values compared to historical values (for trend analysis) KPI actual values compared to historical values (for trend analysis) KPI actual values compared to a forecast or budget amount KPI actual values compared to a forecast or budget amount Rankings of different departments, locations, products, and so forth Rankings of different departments, locations, products, and so forth

21. BI Successes Continental Airlines consolidated several customer databases into a single, strategic data warehouse and BI initiative that helped it become first in its industry for customer service. Its example demonstrates how companies can achieve competitive advantage. UniCredit took a leading role in a new credit portfolio management market, thanks to a BI solution. This included an integrated data warehouse, risk modeling, rule-based warnings and an interactive reporting portal. The Richmond Police Department in Virginia deployed a variety of analytical and predictive tools to determine likely areas of criminal activity so that officers could be proactively deployed to deter crime, rather than reactively respond to criminal activity.

22. Other BI applications: Other BI applications: To Store & Analyze Data Data Mining, Framing & Warehousing Data Mining, Framing & Warehousing (DSS) and Forecasting (DSS) and Forecasting Document Warehouse & Management Document Warehouse & Management Knowledge Management Knowledge Management Mapping, Mapping, Information Visualisation and Dashboarding; Information Visualisation and Dashboarding; Management Information System (MIS); Management Information System (MIS); Geographic Information System (GIS); Geographic Information System (GIS); Trend Analysis; Trend Analysis; Software As A Service (SaaS) Software As A Service (SaaS) Business Intelligence offerings (On Demand) Business Intelligence offerings (On Demand) Online Analytical Processing (OLAP) and Online Analytical Processing (OLAP) and Multidimensional analysis Multidimensional analysis sometimes called "Analytics“ (based on the "hypercube" or "cube"); sometimes called "Analytics“ (based on the "hypercube" or "cube"); Real Time Business Intelligence Real Time Business Intelligence Statistics and Technical Data Analysis Statistics and Technical Data Analysis Web Mining, Text Mining and Web Mining, Text Mining and Systems Intelligence Systems Intelligence

23. Other BI applications are used to analyze or manage the "human" side of businesses, Customer Relationship Management (CRM) Marketing Tools Human Resources applications. Web Personalisatiuon

24. Conclusion: Business Intelligence Today and Tomorrow Today’s organizations are deriving more value from BI by extending actionable information to many types of employees, maximizing the use of existing data assets Today’s organizations are deriving more value from BI by extending actionable information to many types of employees, maximizing the use of existing data assets Visualization tools including dashboards are used by producers, retailers, governments, and special agencies Visualization tools including dashboards are used by producers, retailers, governments, and special agencies More and more industry-specific analytical tools will flood the market to perform almost any kind of analysis and to facilitate informed decision making from the top level to the user level More and more industry-specific analytical tools will flood the market to perform almost any kind of analysis and to facilitate informed decision making from the top level to the user level A potential trend involving BI is its possible merger with artificial intelligence (AI) A potential trend involving BI is its possible merger with artificial intelligence (AI)

25. BI Applications Fraud detection Fraud detection Clickstream Mining Clickstream Mining Market Segmentation Market Segmentation Retail Retail Telecommunication Telecommunication Banking& Finance Banking& Finance CRM CRM

26. BI system at Hero MotoCorp Analytics Analytics Dashboards Dashboards Decision support systems Decision support systems Online analytical processing Online analytical processing Querying and reporting Querying and reporting What-if analysis What-if analysis Top management Top management Finance and accounts Finance and accounts Human resources Human resources Manufacturing / production Manufacturing / production Customer support Customer support Marketing Marketing Sales Sales Information technology Information technology

27. Benefits Aligned analysis with business objectives: Aligned analysis with business objectives: Centralized information generation Centralized information generation Real time data analysis: BI has facilitated real time updates about critical business factors like sales for two wheelers, production, inventory analysis, etc. Real time data analysis: BI has facilitated real time updates about critical business factors like sales for two wheelers, production, inventory analysis, etc. One version of the truth: One version of the truth: What-if analysis: What-if analysis:

28. M&M Product Mix Analytics, Dashboards, Decision support systems, Querying and reporting Analytics, Dashboards, Decision support systems, Querying and reporting With BI, accurate and timely information has become available to Mahindra & Mahindra helping it reduce reconciliations and better manage the billing process. This has led to quicker payments and a reduction in account receivables. With BI, accurate and timely information has become available to Mahindra & Mahindra helping it reduce reconciliations and better manage the billing process. This has led to quicker payments and a reduction in account receivables. Analysis of data from sales, production and inventory data using BO Explorer has helped it improve its product mix. Analysis of data from sales, production and inventory data using BO Explorer has helped it improve its product mix. BI has also enabled Mahindra & Mahindra to fulfill orders on time, thus increase its sales. BI has also enabled Mahindra & Mahindra to fulfill orders on time, thus increase its sales. Improved visibility across locations has led to reduction in inventory and inventory carrying cost. Improved visibility across locations has led to reduction in inventory and inventory carrying cost.

29. Shoppers Stop With BI, Shoppers Stop is able to target micro-segments to ensure incremental business through promotions and messages sent to its customers. This has also helped the retailer to reduce inventory and still offer the customer what he wants by optimizing the merchandise mix. With BI, Shoppers Stop is able to target micro-segments to ensure incremental business through promotions and messages sent to its customers. This has also helped the retailer to reduce inventory and still offer the customer what he wants by optimizing the merchandise mix.target micro-segmentstarget micro-segments The company analyzes the profiles of its stores located in the cities with similar demographic spread to create new stores at new locations. This analysis ensures that stories opened in the new cities have a higher probability of success. The company analyzes the profiles of its stores located in the cities with similar demographic spread to create new stores at new locations. This analysis ensures that stories opened in the new cities have a higher probability of success. Monitoring sales patterns across stores helps the operations teams to tactically change store layouts or of the displayed merchandise to attract customers. The same feedback helps the back office planners in adjusting flow of merchandise to the stores. Monitoring sales patterns across stores helps the operations teams to tactically change store layouts or of the displayed merchandise to attract customers. The same feedback helps the back office planners in adjusting flow of merchandise to the stores. BI has also helped Shoppers Stop to grow its online retail and improve the flow of referrals. BI has also helped Shoppers Stop to grow its online retail and improve the flow of referrals.