Lecture Business management information system - Lecture 25: Business intelligence

In this chapter, the following content will be discussed: What is business intelligence (BI), core capabilities of BI, why do companies need BI? How important is BI? Benefits of business intelligence, EMC order life cycle,...

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Business

Intelligence

Lecture 25

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What is Business Intelligence (BI)

 Definitions:

• Business Intelligence (BI) refers to skills, processes, technologies, applications and practices used to support decision making

improve the decision-making process

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

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What is BI (continued)

Improving organizations by providing

business insights to all employees leading to

better, faster, more relevant decisions

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What is Business Intelligence?

Business Intelligence enables the

business to make intelligent, fact-based decisions

Aggregate

Data

Database, Data Mart, Data

Warehouse, ETL Tools,

Integration Tools

Present Data

Enrich Data

Inform a Decision

Reporting Tools, Dashboards, Static Reports, Mobile Reporting, OLAP Cubes

Add Context to Create Information, Descriptive Statistics, Benchmarks, Variance to Plan or LY

Decisions are Fact-based and Data-driven

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CPU – Content, Performance, Usability

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Core Capabilities of BI

OLAP (online analytical processing) enables

a user to easily and selectively extract and view data from different points-of- view.

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Why do companies need BI?

Tactical / Strategic BI

What’s the best that can happen?

What will happen next?

What if these trends continue?

Why is this happening?

What actions are needed?

Where exactly is the problem?

How many, how often, where?

What happened?

Sophistication of Intelligence

Operational BI

Optimization Predictive Modeling Forecasting/extrapolation Statistical analysis

Alerts Query/drill down

Ad hoc reports Standard reports

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How Important is BI?

Top 10 Business and Technology Priorities for 2011:

Source: Gartner’s 2011 CIO Agenda (aka “

Reimagining IT: The 2011 CIO Agenda”)

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The July 2010 Forrester report “Technology Trends That Retail CIOs Must Tap to Drive

that retail CIOs should be considering as

part of an overall architecture strategy:

Mobile

Cloud

Social Computing Supply Chain

Micropayments

Business Intelligence/Analytics

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Why is Business Intelligence So Important?

Time

With Business Intelligence , we can get data to you in a timely manner.

Making Business Decisions is a Balance

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Benefits of Business Intelligence

increased revenues and reduced costs

• Improve Operational Processes

increased revenues and reduced costs

• Predict the Future

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• Build to Stock for orders in last two days!

Typical Activity by Week ($M) (Storage Products)

Bookings

Factory Shipments

EMC Quarter Activity

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EMC Order Life Cycle

Prospect Lead Oppty Configure Price Quote Order Produce Ship Invoice Collect

Commissions

Accounting

Service Suspect

Channel Integration Quota

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– who has the yacht but cannot afford it

– predicting infection in rural parts of third world

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BI Golden Rules

the right time”

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Gartner BI Maturity Model

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What BI technologies will be the most

important to your organization in the next 3 years?

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Advanced Analytics / Predictive Analytics

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BI Today vs Tomorrow

that loads nightly and produces historical

reporting

events and predicting tomorrow’s

headlines

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Collegiate Admissions Criteria

 Test Scores: SAT, ACT, AP Exams

 Grade Point Average

 Class Rank

 High School “Strength”

 Extracurricular Activities: Band/Choir, Clubs, Sports

 Non-School Activities: Work, Volunteer, Community Groups

 Area of Focus – Intended Major

 Family legacy

 Home State or Country

Regression Outcome = Graduation (binary) + GPA (linear)

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Amazon.com and NetFlix

Collaborative Filtering tries to predict other items a

customer may want to purchase based on what’s in their shopping cart and the purchasing behaviors of other

customers

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What Is Text Analytics?

…turning unstructured customer comments into

actionable insights

…finding nuggets of insight in text data that will

improve our business

From Wikipedia:

… a set of linguistic, statistical, and machine learning techniques that model and structure the information content of textual sources for business intelligence, exploratory data analysis, research, or investigation

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Customer Sat Survey Comments

Unstructured Text Processing

Facebook Page

Alerts, Real-time Action

Twitter

Page

Services Quality Cost Friendliness

Email

Adhoc Feedback

Call

Center

Notes,

Voice

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What is Information Governance?

Information Governance

•Data Stewardship

•Data Quality

•Data Governance

•Master Data Management

•Data Stewards for Master Data “Hubs”

•Customer, Vendor, Product, Location, Employee, G/L

BY ENCOMPASSING

•Report Governance

•Metric Governance

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CREATING SIGNIFICANT BUSINESS VALUE

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BI Technologies

 Analytic Databases

 BI is a consolidating industry

 Independent vendors: MicroStrategy, Informatica, SAS

 Reporting standards determined mainly by Microsoft, Apple and Adobe

Teradata Netezza

DB2

Oracle

SQL Server

Vertica Aster Data Par Accel Greenplum

Semantic Databases (TIDE)

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