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   The Business Pressures-Responses-Support Model
     The business environment
     Organizational responses: be reactive, anticipative,
      adaptive, and proactive
     Computerized support
      ▪ Closing the Strategy Gap One of the major objectives of BI is to
        facilitate closing the gap between the current performance of an
        organization and its desired performance as expressed in its
        mission, objectives, and goals and the strategy for achieving them




                                                                             2
3
   business intelligence (BI)
    A conceptual framework for decision support.
    It combines architecture, databases (or data
    warehouse), analytical tools and applications




                                                    4
   business intelligence (BI)
     is an umbrella term that combines architectures,
      tools, databases, applications, and methodologies.
     Its major objective is to enable interactive access
      (sometimes in real time) to data, enable
      manipulation of these data, and to provide
      business managers and analysts the ability to
      conduct appropriate analysis


                                                            5
6
   The Origins and Drivers of Business
    Intelligence
     Organizations are being compelled to capture,
      understand, and harness their data to support
      decision making in order to improve business
      operations
     Managers need the right information at the right
      time and in the right place


                                                         7
   BI’s Architecture and Components
     Data Warehouse
     Business Analytics
      ▪ Automated decision systems
     Performance and Strategy




                                       8
9
   BI’s Architecture and Components
     Data Warehouse
      ▪ Originally, included historical data that were organized
        and summarize, so end users could easily view or
        manipulate data and information
      ▪ Today, some data warehouses include current data as
        well, so they can provide real time decision support




                                                                   10
   BI’s Architecture and Components
     Data Warehouse
      ▪ Create a database infrastructure that is always online
        and that contains all the information from the OLTP
        systems, including historical data, but reorganized and
        structured in such a way that it is fast and efficient for
        querying, analysis, and decision support




                                                                     11
   BI’s Architecture and Components
     Business Analytics
      ▪ Reporting and queries
      ▪ Advanced analytics
      ▪ Data, text and Web mining and other sophisticated
        mathematical and statistical tools




                                                            12
   BI’s Architecture and Components
     Data Mining
     A class of information analysis based on databases
     that looks for hidden patterns in a collection of data
     which can be used to predict future behavior
      A process of searching for unknown relationships or
     information in large databases or data warehouses,
     using intelligent tools such as neural computing,
     predictive analytics techniques, or advanced
     statistical methods

                                                              13
   BI’s Architecture and Components
     business (or corporate) performance
     management (BPM)
     A component of BI based on the balanced
     scorecard methodology, which is a framework for
     defining, implementing, and managing an
     enterprise’s business strategy by linking
     objectives with factual measures



                                                       14
   BI’s Architecture and Components
     User Interface: Dashboards and Other
     Information Broadcasting Tools
     ▪ Dashboards
       A visual presentation of critical data for executives to
       view. It allows executives to see hot spots in seconds
       and explore the situation




                                                                  15
   Styles of BI
    ▪   Report Delivery and Alerting
    ▪   Enterprise Reporting (dashboard, scorecard)
    ▪   Cube Analysis (Slice and Dice Analysis)
    ▪   Ad-hoc Query
    ▪   Statistics and Data Mining




                                                      16
The   Benefits of BI
   Time savings                  Faster, more accurate reporting
   Single version of truth
   Improved strategies and       Improved decision making
    plans                         Improved customer service
   Improved tactical             Increased revenue
    decisions
   More efficient processes
   Cost savings




                                                                17
   The Business Value of BI
     How BI Can Help
      ▪ Assess their readiness for meeting the challenges posed
        by these new business realities
      ▪ Take a holistic approach to BI functionality
      ▪ Leverage best practices and anticipate hidden costs




                                                                  18
   The Business Value of BI
     Key Issues and Framework for BI Analysis
      ▪ How can enterprises maximize their BI investments?
      ▪ What BI functionality do enterprises need, and what are
        they using today?
      ▪ What are some of the hidden costs associated with BI
        initiatives?




                                                                  19
   Intelligence Gathering
     In order to be useful in decision making and
      improving the bottom line, the data must be:
       ▪   Cataloged
       ▪   Tagged
       ▪   Analyzed
       ▪   Sorted
       ▪   Filtered



                                                     20
 online transaction processing systems (OLTP)
  Systems that handle a company’s routine ongoing
  business
 online analytic processing (OLAP)
  An information system that enables the user, while
  at a PC, to query the system, conduct an analysis,
  and so on. The result is generated in seconds




                                                       21
   Some Theories of BI
     A factory and warehouse
     The information factory
     Data warehousing and business intelligence
     Teradata advanced analytics methodology
     Oracle BI system




                                                   22
   The information factory view
     Enterprise information factory as a way to describe
      how companies conduct and organize BI efforts.
     A cornerstone component of that factory concept
      is the DW




                                                            23
An information factory has:
   Inputs               Processing of inputs
     Data sources         Analysis
     Acquisition          Data mining
   Storage              Outputs
     DW                   Data delivery
     Data marts           BI applications




                                                 24
25
   The Strategic Imperative of BI
     Barriers to entry of a new competitor are being
      significantly diminished
     Because of the Web revolution and increasing
      globalization, companies throughout the world are
      challenging major players in industries
     The ability to deliver goods worldwide is making it easier
      for potential competitors to get products and services to
      more customers almost anywhere
     Companies are finding better or less expensive suppliers
      all over the globe


                                                                   26
   Competitive Intelligence (CI)
     CI implies tracking what competitors are doing by
      gathering material on their recent and in-process
      activities
     Competitive strategy in an industry
      ▪ low-cost leader
      ▪ market niche
     Sustaining competitive advantage through
     building brand and customer loyalty using BI
     applications

                                                          27
   The Typical BI User Community
     IT staff
     Power users
      ▪ a computer user who needs the fastest and most
        powerful computers available
     Executives
     Functional managers
     Occasional information customers
     Partners
     Consumers
                                                         28
   Real-time, On-Demand BI Is Attainable
   Developing or Acquiring BI Systems
   Justification and Cost/Benefit Analysis
   Security and Protection of Privacy
   Integration of Systems and Applications




                                              29
30

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Intro bi

  • 1. 1
  • 2. The Business Pressures-Responses-Support Model  The business environment  Organizational responses: be reactive, anticipative, adaptive, and proactive  Computerized support ▪ Closing the Strategy Gap One of the major objectives of BI is to facilitate closing the gap between the current performance of an organization and its desired performance as expressed in its mission, objectives, and goals and the strategy for achieving them 2
  • 3. 3
  • 4. business intelligence (BI) A conceptual framework for decision support. It combines architecture, databases (or data warehouse), analytical tools and applications 4
  • 5. business intelligence (BI)  is an umbrella term that combines architectures, tools, databases, applications, and methodologies.  Its major objective is to enable interactive access (sometimes in real time) to data, enable manipulation of these data, and to provide business managers and analysts the ability to conduct appropriate analysis 5
  • 6. 6
  • 7. The Origins and Drivers of Business Intelligence  Organizations are being compelled to capture, understand, and harness their data to support decision making in order to improve business operations  Managers need the right information at the right time and in the right place 7
  • 8. BI’s Architecture and Components  Data Warehouse  Business Analytics ▪ Automated decision systems  Performance and Strategy 8
  • 9. 9
  • 10. BI’s Architecture and Components  Data Warehouse ▪ Originally, included historical data that were organized and summarize, so end users could easily view or manipulate data and information ▪ Today, some data warehouses include current data as well, so they can provide real time decision support 10
  • 11. BI’s Architecture and Components  Data Warehouse ▪ Create a database infrastructure that is always online and that contains all the information from the OLTP systems, including historical data, but reorganized and structured in such a way that it is fast and efficient for querying, analysis, and decision support 11
  • 12. BI’s Architecture and Components  Business Analytics ▪ Reporting and queries ▪ Advanced analytics ▪ Data, text and Web mining and other sophisticated mathematical and statistical tools 12
  • 13. BI’s Architecture and Components  Data Mining A class of information analysis based on databases that looks for hidden patterns in a collection of data which can be used to predict future behavior A process of searching for unknown relationships or information in large databases or data warehouses, using intelligent tools such as neural computing, predictive analytics techniques, or advanced statistical methods 13
  • 14. BI’s Architecture and Components  business (or corporate) performance management (BPM) A component of BI based on the balanced scorecard methodology, which is a framework for defining, implementing, and managing an enterprise’s business strategy by linking objectives with factual measures 14
  • 15. BI’s Architecture and Components  User Interface: Dashboards and Other Information Broadcasting Tools ▪ Dashboards A visual presentation of critical data for executives to view. It allows executives to see hot spots in seconds and explore the situation 15
  • 16. Styles of BI ▪ Report Delivery and Alerting ▪ Enterprise Reporting (dashboard, scorecard) ▪ Cube Analysis (Slice and Dice Analysis) ▪ Ad-hoc Query ▪ Statistics and Data Mining 16
  • 17. The Benefits of BI  Time savings  Faster, more accurate reporting  Single version of truth  Improved strategies and  Improved decision making plans  Improved customer service  Improved tactical  Increased revenue decisions  More efficient processes  Cost savings 17
  • 18. The Business Value of BI  How BI Can Help ▪ Assess their readiness for meeting the challenges posed by these new business realities ▪ Take a holistic approach to BI functionality ▪ Leverage best practices and anticipate hidden costs 18
  • 19. The Business Value of BI  Key Issues and Framework for BI Analysis ▪ How can enterprises maximize their BI investments? ▪ What BI functionality do enterprises need, and what are they using today? ▪ What are some of the hidden costs associated with BI initiatives? 19
  • 20. Intelligence Gathering  In order to be useful in decision making and improving the bottom line, the data must be: ▪ Cataloged ▪ Tagged ▪ Analyzed ▪ Sorted ▪ Filtered 20
  • 21.  online transaction processing systems (OLTP) Systems that handle a company’s routine ongoing business  online analytic processing (OLAP) An information system that enables the user, while at a PC, to query the system, conduct an analysis, and so on. The result is generated in seconds 21
  • 22. Some Theories of BI  A factory and warehouse  The information factory  Data warehousing and business intelligence  Teradata advanced analytics methodology  Oracle BI system 22
  • 23. The information factory view  Enterprise information factory as a way to describe how companies conduct and organize BI efforts.  A cornerstone component of that factory concept is the DW 23
  • 24. An information factory has:  Inputs  Processing of inputs  Data sources  Analysis  Acquisition  Data mining  Storage  Outputs  DW  Data delivery  Data marts  BI applications 24
  • 25. 25
  • 26. The Strategic Imperative of BI  Barriers to entry of a new competitor are being significantly diminished  Because of the Web revolution and increasing globalization, companies throughout the world are challenging major players in industries  The ability to deliver goods worldwide is making it easier for potential competitors to get products and services to more customers almost anywhere  Companies are finding better or less expensive suppliers all over the globe 26
  • 27. Competitive Intelligence (CI)  CI implies tracking what competitors are doing by gathering material on their recent and in-process activities  Competitive strategy in an industry ▪ low-cost leader ▪ market niche  Sustaining competitive advantage through building brand and customer loyalty using BI applications 27
  • 28. The Typical BI User Community  IT staff  Power users ▪ a computer user who needs the fastest and most powerful computers available  Executives  Functional managers  Occasional information customers  Partners  Consumers 28
  • 29. Real-time, On-Demand BI Is Attainable  Developing or Acquiring BI Systems  Justification and Cost/Benefit Analysis  Security and Protection of Privacy  Integration of Systems and Applications 29
  • 30. 30