8 business intelligence and analytics

Lecture 8: Business Intelligence Systems Nga.lethiquynh@ueh.edu.vn Study questions Q1 Why organizations need business intelligence? Q2 What business intelligence systems are available? Q3 What are typical reporting applications? Q4 What are typical data-mining applications? Q5 What is the purpose of data warehouses and data marts? Q6 How Are Business Intelligence Applications Delivered? Q1 Why organizations need business intelligence? Why organizations need BI?  Data communications and data storage are essentially free, and enormous amounts of data are created and stored every day:  12 000 gigabytes per person of data, worldwide, in 2009 Why organizations need BI?   Businesses use BI systems to:  Process data (from operational DB, Social Data, purchased data, etc.)  produce patterns, relationships, and other forms of information;  deliver that information on a timely basis to users who need it Example:  Identifying changes in purchasing patterns  BI for entertainment: Netflix has data on watching, listening, and rental habits → determines what people actually want Q2 What business intelligence systems are available? Business Intelligence systems  Organization needs Reporting Data mining Knowledge Management INFROMATION TO SUPPORT MANAGERS OPERATIONAL DATA BI systems (tools) Business intelligence (BI) tools BI systems provide valuable information for decisionmaking Three primary BI systems Reporting tools  integrate data from multiple systems  sorting, grouping, summing, averaging, comparing data Data-mining tools  use sophisticated statistical techniques, regression analysis and decision tree analysis  used to discover hidden patterns and relationships  market-basket analysis Business intelligence (BI) tools Knowledge-management tool  creates value by collecting and sharing human knowledge about products, product uses, best practices, other critical knowledge  used by employees, managers, customers, suppliers, others who need access to company knowledge Tools versus applications versus systems  BI tool is one or more computer programs BI tools implement the logic of a particular procedure or process  BI application is the use of a tool on a particular type of data for a particular purpose  BI system is an information system having all five components that delivers results of a BI application to users who need those results 10 Market-Basket Analysis 38 Market-Basket Analysis 39 40 Q5 What is the purpose of data warehouses and data marts? What Is the Purpose of Data Warehouses and Data Marts?  Purpose: ▪ To extract, clean and prepare data from various operational systems and other sources ▪ To store and catalog data for BI processing ▪ Stored in data-warehouse DBMS 41 Components of a Data Warehouse Source: textbook[1], pg 304 42 Data Warehouse Data Sources  Internal operations systems  External data purchased from outside sources  Data from social networking, usergenerated content applications  Metadata concerning data stored in data-warehouse meta database 43 Data Warehouses vs Data Marts Data mart is a collection of data ▪ Created to address particular needs  Business function  Problem  Opportunity Smaller than data warehouse ▪ Users may not have data management expertise ▪  Need knowledgeable analysts for specific function ▪ Data extracted from data warehouse for a functional area 44 Data Warehouse vs Data Marts Source: textbook[1], pg 307 45 46 Q6 How Are Business Intelligence Applications Delivered? How Are Business Intelligence Applications Delivered? Source: textbook[1], pg 312 47 BI Server - Management Functions the authorized allocation of BI results to users  BI servers can be:   Website from which users can download, or pull, BI application results  Portal server with customizable user interface  A BI application server: to support user subscriptions to particular BI application results (e.g alerts via email or phone whenever a particular event occurs) 48 BI Server – Delivery Functions  use metadata to determine what results to send to which users and, on which schedule  BI results can be delivered to “any” device  exception alert a dramatic fall in a stock price or exceptionally high sales volume 49 Summary Q1 Why organizations need business intelligence? Q2 What business intelligence systems are available? Q3 What are typical reporting applications? Q4 What are typical data-mining applications? Q5 What is the purpose of data warehouses and data marts? Q6 How Are Business Intelligence Applications Delivered? 50 Additional Resources  What is Business Intelligence?  RFM analysis for customer segmentation and loyalty marketing  Techniques that make RFM analysis work for you 51