Business Intelligence (BI)

&
Data Analytics (DA)
 What is Business Intelligence (BI)
Business Intelligence (BI) refers to skills, processes, technologies, applications and
practices used to support 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

Systems that provide directed background data and reporting tools to support and
improve the decision-making process.
 What is Business Intelligence (BI) ?
• Business Intelligence is a broad category of applications and technologies for
gathering, storing, analysing, and providing access to data to help clients make better
business decisions.

A popularized, umbrella term used to describe a set of concepts and methods to

improve business decision making by using fact-based support systems.

• A system that collects, integrates, analyses and presents business information to

support better business decision making.
What is Business Intelligence?

Business Intelligence enables the business to make

intelligent, fact-based decisions

Aggregate Present Enrich Inform a

Data Data Data Decision

Database, Data Mart, Data Reporting Tools, Add Context to Create Decisions are Fact-based
Warehouse, ETL Tools, Dashboards, Static Information, Descriptive and Data-driven
Integration Tools Reports, Mobile Reporting, Statistics, Benchmarks,
OLAP Cubes Variance to Plan
What is BI (continued)
Improving organizations by providing
business insights to all employees leading to
better, faster, more relevant decisions

© 2008 Accenture. All Rights Reserved.

CPU – Content, Performance, Usability
 Content

 The business determines the “what”, BI enables the “how”

 Performance

 Minimize report creation and collection times (near zero)

 Usability

 Delivery Method Push vs Pull

 Medium  Excel, PDF, Dashboard, Mobile Device

 Tell a Story  Trend, Context, Related Metrics, Multiple Views

How Important is BI?
Top 10 Business and Technology Priorities for 2011:

1. Cloud computing
2. Virtualization
3. Mobile technologies
4. IT Management
5. Business Intelligence
6. Networking, voice and data communications
7. Enterprise applications
8. Collaboration technologies
9. Infrastructure
10. Web 2.0

Source: Gartner’s 2011 CIO Agenda (aka “Reimagining IT: The 2011 CIO Agenda”).
Why is Business Intelligence So Important?

Time

Data Opinion
(Best Professional
Judgment)
Making Business
Decisions is a Balance

In the absence of data, business decisions are often made by the HiPPO.
With Business Intelligence, we can get data to you in a timely manner.
Major BI Trends
 Mobile

 Cloud

 Social Media

 Advanced Analytics
What BI technologies are the most important to your organization?

1. Predictive Analytics
2. Visualization/Dashboards
3. Master Data Management
4. The Cloud
5. Analytic Databases
6. Mobile BI
7. Open Source
8. Text Analytics
BI Today vs Tomorrow
 “BI today is like reading the newspaper”

 BI reporting tool on top of a data warehouse that loads nightly and produces
historical reporting

 BI tomorrow will focus more on real-time events and predicting

tomorrow’s headlines
Retail Analytics

 Market Basket Analytics

 Text Analytics

 Customer Segmentation/Clustering

 Tailored Product Assortments

 Inventory Forecasting
 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

Text Analytics is :
… 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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Unstructured Text Processing

Facebook
Page
Twitter
Page Customer’s
Survey
Comments
Call
Center Services

Notes,
Quality Cost Friendliness
Voice

Competitors’
Facebook
Public Web Sites,
Pages
Discussion Boards,
Email
Product Reviews
Blogs Alerts,
Adhoc Real-time
Feedback Action

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BI Technologies
Analytic Databases

DB2 Teradata Vertica Semantic Databases

Oracle Netezza Aster Data (TIDE)
SQL Server Par Accel
Greenplum

BI is a consolidating industry

 Oracle: Siebel, Hyperion, Brio, Sun

 SAP: Business Objects, Sybase
 IBM: Cognos, SPSS, Coremetrics, Unica, Netezza
 EMC: Greenplum
 HP: Vertica
 Teradata: Aster Data
Independent vendors: MicroStrategy, Informatica, SAS

Reporting standards determined mainly by Microsoft, Apple and

Adobe
 Differences between Business Intelligence and Advanced Analytics
 Business Intelligence — traditionally focuses on using a consistent set of metrics to
measure past performance and guide business planning. Business Intelligence consists
of querying, reporting, OLAP (online analytical processing), and can answer questions
including “what happened,” “how many,” and “how often.”

 Advanced Analytics — goes beyond Business Intelligence by using sophisticated

modeling techniques to predict future events or discover patterns which cannot be
detected otherwise. Advanced Analytics can answer questions including “why is this
happening,” “what if these trends continue,” “what will happen next” (prediction),
“what is the best that can happen” (optimization).
 OLAP (Online Analytical Processing)
 OLAP (online analytical processing) is computer processing that enables a user to
easily and selectively extract and view data from different points of view.

 For example, a user can request that data be analyzed to display a spreadsheet
showing all of a company's beach ball products sold in Florida in the month of July,
compare revenue figures with those for the same products in September, and then
see a comparison of other product sales in Florida in the same time period.

 OLAP software can locate the intersection of dimensions (all products sold in the
Eastern region above a certain price during a certain time period) and display them.
Data Warehouse

 A data warehouse is a merged repository for all the data that an

enterprise's various business systems collect. The repository may be

physical or logical.
Data Mining
 Data mining is sorting through data to identify patterns and establish
relationships.
 Data mining parameters include:
 Association - looking for patterns where one event is connected to another
event
 Sequence or path analysis - looking for patterns where one event leads to
another later event
 Classification - looking for new patterns (May result in a change in the way
the data is organized but that's ok)
 Clustering - finding and visually documenting groups of facts not previously
known
 Forecasting - discovering patterns in data that can lead to reasonable
predictions about the future (This area of data mining is known
as predictive analytics.
What is Big Data?
Data Analytics
Data Analytics

 Data analytics (DA) is the science of examining raw data with the
purpose of drawing conclusions about that information. Data
analytics is used in many industries to allow companies and
organization to make better business decisions and in the sciences to
verify or disprove existing models or theories.
Differences between Business Intelligence and Advanced Analytics
 Types of Business Intelligence Tools
 Spreadsheets
 Reporting and querying software
 OLAP: Online analytical processing
 Digital dashboards
 Data mining
 Process Visualization
 Data warehousing
 Local information systems
Link for latest tools available in market
http://bigdata-madesimple.com/top-business-intelligence-bi-tools-in-the-
market/
 Assignment # 01
How BI and DA are helpful to minimize Supply
Chain Risks?