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Business Intelligence Introduction

What Is Business Intelligence? :

 Business intelligence (BI) is a broad category of applications and technologies for

gathering, storing, analyzing, and providing access to data to help enterprise users make
better business decisions.

What are the applications of BI? :

 BI applications include the activities of decision support systems, query and reporting,
online analytical processing (OLAP), statistical analysis, forecasting, and data mining.

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To be more comprehensive:

Advantage of BI:

 Most companies collect a large amount of data from their business operations. To keep
track of this information, a business would need to use a wide range of software
programs such as Excel, Access different database applications for various departments
throughout their organization. Using multiple software programs makes it difficult to
retrieve information in a timely manner and to perform analysis of the data.
The term Business Intelligence (BI) represents the tools and systems that play a key role
in the strategic planning process of the corporation. These systems allow a company to
gather, store, access and analyze corporate data to aid in decision-making.

BI to a common man:

 Business intelligence is not business as usual. It's about making better decisions easier
and making them more quickly. Businesses collect enormous amounts of data every
day--information about orders, inventory, accounts payable, point-of-sale transactions,
and of course, customers. Businesses also acquire data, such as demographics and
mailing lists, from outside sources. Unfortunately, based on a recent survey, over 93% of
corporate data is not usable in the business decision-making process today.
Consolidating and organizing data for better business decisions can lead to a competitive
advantage, and learning to uncover and leverage those advantages is what business
intelligence is all about.
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Evolution of business information system:

 Inevitably the first question that arises when describing the objectives of a business
intelligence system is, "Doesn't a data warehouse have the same objectives and provide
the same capabilities as a business intelligence system?" A similar question arose when
data warehouses were first introduced, "Isn't a data warehouse similar to the corporate
information systems and information centers we built in the past?"
 Although a quick and simple answer to both questions is yes, closer examination shows
that in the same way that there are important differences between a warehouse and
early corporate information systems and information centers, there are also important
differences between a business intelligence system and a data warehouse.

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First-Generation: Host-Based Query and Reporting

 Early ways:
o Early business information systems employed batch applications to provide
business users with the information they needed. The output from these
applications typically involved huge volumes of paper that users had to wade
through to get the answers they needed to business questions. The advent of
terminal-driven time-sharing applications provided more rapid access to
information, but these systems were still cumbersome to use, and required
access to complex operational databases.
 Users of first generation Business Information System:
o This first generation of business information systems could only be used by
information providers, such as business analysts, who had an intimate
knowledge of the data and extensive computer experience.
HERE POINT TO BE NOTED IS THAT
o Information consumers, like business executives and business managers, could
rarely use these early systems, and instead had to rely on information providers
to answer their questions and supply them with the information they needed

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Second-Generation: Data Warehousing:

 Definition:
o A data warehouse is a repository of an organization's electronically stored data.
Data warehouses are designed to facilitate reporting and analysis.
 Essential components:
o means to retrieve and analyze data, to extract, transform and load data, and to
manage the data dictionary are also considered essential components of a data
warehousing system.
  History:
o The concept of data warehousing dates back to the late 1980s [2] when IBM
researchers Barry Devlin and Paul Murphy developed the "business data
warehouse". In essence, the data warehousing concept was intended to provide
an architectural model for the flow of data from operational systems to decision
support environments. The concept attempted to address the various problems
associated with this flow, mainly the high costs associated with it.
 Key developments in early years of data warehousing were:

o 1960s — General Mills and Dartmouth College, in a joint

research project, develop the
terms dimensions and facts.[3]
o 1970s — ACNielsen and IRI provide dimensional data
marts for retail sales.[3]
o 1983 — Teradata introduces a database management
system specifically designed for decision support.
o 1988 — Barry Devlin and Paul Murphy publish the
article An architecture for a business and information
systems in IBM Systems Journal where they introduce
the term "business data warehouse".
o 1990 — Red Brick Systems introduces Red Brick
Warehouse, a database management system specifically
for data warehousing.
o 1991 — Prism Solutions introduces Prism Warehouse
Manager, software for developing a data warehouse.
o 1991 — Bill Inmon publishes the book Building the Data
Warehouse.
o 1995 — The Data Warehousing Institute, a for-profit
organization that promotes data warehousing, is
founded.
o 1996 — Ralph Kimball publishes the book The Data
Warehouse Toolkit.
o 1997 — Oracle 8, with support for star queries, is
released.
th
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Advantages of data warehousing over First generation systems:

1) Warehouses are designed to satisfy the needs of business users and not day-to-day
operational applications.
 2) Data Warehouse information is clean and consistent, and is stored in a form business
users can understand.

3) Unlike operational systems, which contain only detailed current data, warehouses can
supply both historical and summarized information.

4) The use of client/server computing provides data warehouse users with improved user
interfaces and more powerful decision support tools.

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Third-Generation: Business Intelligence

 The issue with data warehousing:

o The Issue with data warehousing is that much of the focus is still on building the
data warehouse, rather than accessing it. Many organizations seem to think that
if they build a warehouse and provide users with the right tools, the job is done.
In fact it is just beginning. Unless the information in the warehouse is thoroughly
documented and easy to access, complexity will limit warehouse usage to the
same information providers as first-generation systems.
 Focus of business information systems:
o Business intelligence systems focus on improving the access and delivery of
business information to both information providers and information consumers.
They achieve this by providing advanced graphical and Web-based Online
Analytical Processing (OLAP) and information mining tools, and prepackaged
applications that exploit the power of those tools. Most business intelligence
systems provide an information catalog that helps organizations organize,
manage, and find enterprise business information. A publishing facility allows
both technical and business users to document the business information that
exists in an organization. To find information, business users enter a description
of the type of information they are looking for, and the tool searches its catalog
looking for information objects (documents, reports, analyses, etc.) that
potentially satisfy the user's request. A list of these information objects is
returned to the user, who can then select the ones of interest to be retrieved. A
subscription facility enables the user to have information delivered to them on a
regular basis via a corporate intranet or e-mail.
 Advantages of business BI:
1) Business intelligence systems not only support the latest information
technologies, but also provide prepackaged application solutions.

2) Business intelligence systems focus on the access and delivery of business

information to end users, and support both information providers and information
consumers.

3) Business intelligence systems support access to all forms of business information,

and not just the information stored in a data warehouse.
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Data Integration

 Definition:
o The ability to transform corporate data into meaningful and actionable
information is called data integration.

Harnessing the data explosion to better understand the past and get direction for the future has
turned out to be one of the most challenging ventures for enterprise Information Technology
departments in global organization.

 Data Integration Requirements:

o In view of this diversity of data, business needs, and user requirements, the
Information Technology department has specified the following set of data
integration requirements:
 They must provide reliable and consistent historical and current data
integrated from a variety of internal and external sources. To reduce
lags in data acquisition, data from providers and vendors must be
available via Web services or some other direct mechanism such as FTP.
They need to cleanse and remove duplicate data and otherwise enforce
data quality. Increasing global regulatory demands require that the
company maintain clear audit trails. It is not enough to maintain reliable
data; the data needs to be tracked and certified.

 There are three broad categories of issues associated with data integration:
o -Technology challenge
 Multiple sources with different formats.
 Structured, Semi-Structured, and Unstructured data.
 Data feeds on source system arriving at different times.
 Huge Data volumes.
o -Organizational issues:
 There are two Broad Issues with data integration in a large organisation.

They are:

 Power Challenges:
 Data is power and is usually very hard to make people think of
data as real valuable shared assets of a company. Lack of
cooperation from the relevant party is one f the major reason
for the failure of data integration projects.
 Comfort Zone Challenge:
 About 60% of data Integration is solved by hand coding. The
technology used to solve similar problems can range frm
replication, ETL, SQL, to EAI. People gravitate towards the
technology they are familiar with.
o -Economic challenges:
  Getting the data out in the format that is necessary for data integration
end up being a slow and torturous process fraught with organizational
power games.
 Cleansing the data and mapping the data from multiple sources into one
coherent and meaningful format is extraordinarily difficult.
 More often then not, standard data integration tools don’t offer enough
functionality or extensibility to satisfy the data transformation
requirements for the project. This can result in expenditure of large sum
of money in consulting cost to develop special ETL code to get the job
done.
 Different parts in a organization focus on data integration problem in
silos.

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Data Analysis:

 Definition:
o Analysis of data is a process of inspecting, cleaning, transforming, and
modelling data with the goal of highlighting useful information, suggesting
conclusions, and supporting decision making.
 General Description:
o Microsoft SQL Server 2005 Analysis Services delivers online analytical processing
(OLAP) and data mining functionality for business intelligence applications.
Analysis Services supports OLAP by letting you design, create, and manage
multidimensional structures that contain data aggregated from other data
sources, such as relational databases. For data mining applications, Analysis
Services lets you design, create, and visualize data mining models that are
constructed from other data sources by using a wide variety of industry-
standard data mining algorithms.
 Process of data analyses:

o Data cleaning:

 Data cleaning is an important procedure during which the data are

inspected, and erroneous data are -if necessary, preferable, and
possible- corrected. Data cleaning can be done during the stage of data
entry. If this is done, it is important that no subjective decisions are
made. 
o Initial data analysis (assessment of data quality):

 The most important distinction between the initial data analysis phase
and the main analysis phase, is that during initial data analysis one
refrains from any analysis that are aimed at answering the original
research question that are quality of data, quality of measurement, initial
 transformation, did the implementation of the study fulfil the intention of
the research design?
o Main data analysis (answer the original research question):

 It is answering the initial data analysis questions.

o Final data analysis (necessary additional analyses and report):

 Additional analyses are made and a report of the entire process od data
analyses is prepared in this step.

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Data Reporting:

 What is Data reporting:

o SQL Server Reporting Services is a server-based platform for designing,
managing, and delivering both interactive reports and traditional printed
reports.
 Use of Data Reporting:
o Used to deliver enterprise, Web-enabled reporting functionality so that we can
create reports that draw content from a variety of data sources, publish reports
in various formats, and centrally manage security and subscriptions.
 Most Important Feature of reporting service:
o One of the most interesting features of Reporting Services is that a single report
can include information from different queries, which are available as datasets
in the report designer. Each dataset can be associated with data regions in the
report to display the information. The data region could be a simple table, a
flexible list that gives you more control over the formatting, or a matrix, which is
similar to a table but with dynamic columns determined at runtime.

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Data Mining:

 Definition:
o The process of extracting valid, authentic, and actionable information from large
databases.
o Explanation: In other words, data mining derives patterns and trends that exist
in data. These patterns and trends can be collected together and defined as a
mining model.
 Tasks in data mining:

o Classification - Arranges the data into predefined groups. For example an email
program might attempt to classify an email as legitimate or spam. Common
 algorithms include Decision Tree Learning, Nearest neighbor, naive Bayesian
classification and Neural network.
o Clustering - Is like classification but the groups are not predefined, so the
algorithm will try to group similar items together.
o Regression - Attempts to find a function which models the data with the least
error.
o Association rule learning - Searches for relationships between variables. For
example a supermarket might gather data on customer purchasing habits. Using
association rule learning, the supermarket can determine which products are
frequently bought together and use this information for marketing purposes. This
is sometimes referred to as market basket analysis.
 Notable Usage of data mining:
o Games:
 Since the early 1960s, with the availability of oracles for
certain combinatorial games, also called tablebases (e.g. for 3x3-chess)
with any beginning configuration, small-board dots-and-boxes, small-
board-hex, and certain endgames in chess, dots-and-boxes, and hex; a
new area for data mining has been opened up. This is the extraction of
human-usable strategies from these oracles,
o Business:
 Data mining in customer relationship management applications can
contribute significantly to the bottom line.[citation needed] Rather than randomly
contacting a prospect or customer through a call center or sending mail,
a company can concentrate its efforts on prospects that are predicted to
have a high likelihood of responding to an offer. More sophisticated
methods may be used to optimise resources across campaigns so that
one may predict which channel and which offer an individual is most
likely to respond to — across all potential offers
 Additionally, sophisticated applications could be used to automate the
mailing. Once the results from data mining (potential prospect/customer
and channel/offer) are determined, this "sophisticated application" can
either automatically send an e-mail or regular mail.

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Data Mining can be defined by using the following six basic steps:

1. Defining the Problem.

2. Preparing Data.

3. Exploring Data.

4. Building Models.

5. Exploring and Validating Models.

 6. Deploying and Updating Models.

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Diagrammatic view of the above steps….explain the above points using the diagram.

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Conclusion:

 CONCLUSION:
o Microsoft SQL Server 2005 provides the tools that developers need to build new
classes of database applications. By removing the barriers to code execution and
storage location, and by integrating standards such as XML, SQL Server 2005
opens up a world of possibilities to the database developer. This is only an brief
and relevant to project introduction to what you will be able to do with SQL
Server 2005.

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Bibliography:

o www.technet.microsoft.com

o www.wikipedia.org

o www.google.co.in