Business Intelligence (BI)

BI refers to application and technology, which is used to gather, provide access to, and analyze data and information about the company operations

BI is neither a product nor a system. It is an architecture and a collection of integrated operational as well as decision-support applications and databases that provide the business community easy access to business data.

BI Is 1st coined by IBM researcher Hans Peter Luhn in 1958. He Defined intelligence as the Ability to apprehend the interrelationship of presented facts in such a way to guide action towards desired goal

BI

Involves PEOPLE and Technology Involves using a rational approach to

management Involves a continuous cycle of

measurement, adjustment & re-measurement

The BI Cycle

BIstart

BI Activities & Curriculum

BI applications include the activities of:

• decision support,

• query and reporting,

• online analytical processing (OLAP),

Curriculum involves

• Multi dimensional analysis

• Data ware housing

• Data mining

Why BI solutions ?

Mountains of Data

Organizations have lots of data Data is not in a form that is useful to

decision-makers Not easy to review Not informative nor insightful

The Problem

Mountains of DataBusiness People

GAP

How do I increase sales????

How do I make my product better???

How do I retain customers?

Bridging the Gap

Need data storage structures to facilitate fast analysis of huge volumes of data

Need software to provide access to the data, allow flexible manipulation, and provide meaningful presentation

Multi-Dimensional Databases

Multi-Dimensional Database (Cube)

Software Applications

Multi-Dimensional Database

(Cube)

Business Person

Business Person

Business Person

Reporting

Applications

Analytic Applications

ScoreCards Dashboards

Data Warehouse

ETL Processes & Deliverables Cleaning & Conforming

• Valid, missing

• Address, gender

Transforming &Cleansing Data Data must be transformed for

consistency and meaningful Transformations may be as

simple as copying columns or may be incredibly complex

Data must be cleansed to be meaningful All companies have “bad” data

in their systems Data may be missing Data may be inconsistent Data may be wrong

Data Mining

Data Mining works for problems like: Develop a general profile for credit card

customers … Differentiate individuals who are poor credit

risks … Determine what characteristics differentiate

male & female investors.

Data Mining Process

List of Customers:

-some bicycle buyers

-some not

Data Mining

Software

pattern

List of Prospective Buyers

patternList of Likely Buyers

Data Mining Applications

Fraud detection Targeted Marketing Risk Management Business Analysis

Players in BI market

Significance of BI

To know about customers To know about competitors For sharing of information For avoiding guesswork

BI Technologies

need to have a secure computer system which can specify

different levels of user access to the data 'warehouse‘.

need to have sufficient data capacity,

a plan for how long data will be stored (data retention).

BI analysts have developed software tools to gather and analyze

large quantities of unstructured data such as

production metrics, sales statistics,

attendance reports,customer attrition figures.

BI & IT BI users are beginning to demand [Real time BI] or near real time

analysis relating to their business, particularly in front line operations. They will come to expect up to date and fresh information in the same fashion as they monitor stock quotes online.

Research shows that effective BI implementations depend on tight collaboration between the business unit and the IT department.

BI implementations are more successful when business units become knowledgeable about available technologies and capabilities, and then communicate their needs to IT.

Likewise, the IT organization should strive to understand the strategic objectives of business unit leaders and suggest ways in which BI could help them achieve their objectives

BIBLIOGRAPHY

en.wikipedia.org/wiki/Business _ intelligence www.businessintelligence.com searchdatamanagement.techtarget.com/.../business-

intelligence www.tech-faq.com/business-intelligence www.ibm.com/software/data/businessintelligence

THANK YOU

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