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,...
Business Intelligence Lecture 25 What is Business Intelligence (BI) Definitions: • Business Intelligence (BI) refers to skills, processes, technologies, applications and practices used to support decision making • Systems that provide directed background data and reporting tools to support and improve the decision-making process • A popularized, umbrella term used to describe a set of concepts and methods to 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 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 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 Reporting Tools, Dashboards, Static Reports, Mobile Reporting, OLAP Cubes Enrich Data Add Context to Create Information, Descriptive Statistics, Benchmarks, Variance to Plan or LY Inform a Decision Decisions are Fact-based and Data-driven CPU – Content, Performance, Usability Content Performance The business determines the “what”, BI enables the “how” Minimize report creation and collection times (near zero) Usability Delivery Method Push vs Pull Medium Excel, PDF, Dashboard, Cube, Mobile Device Enhance Digestion “A-ha” is readily apparent, fewer clicks Tell a Story Trend, Context, Related Metrics, Multiple Views Core Capabilities of BI OLAP (online analytical processing) enables a user to easily and selectively extract and view data from different points-ofview Why companies need BI? What’s the best that can happen? Competitive Advantage Optimization What will happen next? Predictive Modeling What if these trends continue? Forecasting/extrapolation Tactical / Strategic BI Why is this happening? Statistical analysis Alerts What actions are needed? Query/drill down Ad hoc reports Standard reports Where exactly is the problem? Operational BI How many, how often, where? What happened? Sophistication of Intelligence © 2008 Accenture All Rights Reserved How Important is BI? Top 10 Business and Technology Priorities for 2011: Cloud computing Virtualization Mobile technologies IT Management Business Intelligence Networking, voice and data communications Enterprise applications Collaboration technologies Infrastructure 10 Web 2.0 Source: Gartner’s 2011 CIO Agenda (aka “ The July 2010 Forrester report “Technology Trends That Retail CIOs Must Tap to Drive Growth” identified the following technologies that retail CIOs should be considering as part of an overall architecture strategy: Mobile Social Computing Cloud Supply Chain Micropayments Business Intelligence/Analytics Why is Business Intelligence So Important? Time Data Opinion (aka 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 TDWI Executive Summit – August 2010 What BI technologies will be the most important to your organization in the next years? Predictive Analytics Visualization/Dashboards Master Data Management The Cloud Analytic Databases Mobile BI Open Source Text Analytics Advanced Analytics / Predictive Analytics Data Mining Regression Monte Carlo Simulation “Statistically Significant” Predicting Customer Behavior Churn/Attrition Purchases Profiling 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 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) 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 25 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 26 Unstructured Text Processing Facebook Page Twitter Page Customer Sat Survey Comments Call Center Notes, Voice Services Quality Competitors’ Facebook Pages Email Blogs 27 Cost Friendliness Public Web Sites, Discussion Boards, Product Reviews Adhoc Feedback Alerts, Real-time Action What is Information Governance? Information Governance PREVENTS Garbage Out Garbage In BY ENCOMPASSING •Data Stewardship •Data Quality •Report Governance •Metric Governance •Data Governance •Master Data Management •Data Stewards for Master Data “Hubs” •Customer, Vendor, Product, Location, Employee, G/L Accounts 31 CREATING SIGNIFICANT BUSINESS VALUE BI Technologies Analytic Databases DB2 Oracle SQL Server BI Teradata Netezza Vertica Aster Data Par Accel Greenplum Semantic Databases (TIDE) 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 Reporting vendors: MicroStrategy, Informatica, SAS standards determined mainly by Microsoft, Apple and Adobe Why companies need BI? What’s the best that can happen? Competitive Advantage Optimization What will happen next? Predictive Modeling What if these trends continue? Forecasting/extrapolation Why is this happening? ANALYTICS (Tactical & Strategic) Statistical analysis Alerts What actions are needed? Query/drill down Ad hoc reports Standard reports Where exactly is the problem? How many, how often, where? DATA ACCESS & REPORTING (Operational) What happened? Sophistication of Intelligence © 2008 Accenture All Rights Reserved Summary We covered Today Knowledge and Knowledge Management Business Intelligence overview ... 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... providing business insights to all employees leading to better, faster, more relevant decisions © 2008 Accenture All Rights Reserved What is Business Intelligence? Business Intelligence enables the business. .. Micropayments Business Intelligence/ Analytics Why is Business Intelligence So Important? Time Data Opinion (aka Best Professional Judgment) Making Business Decisions is a Balance In the absence of data, business