Lesson Business intelligence systems present the content: organizations need business intelligence; business intelligence systems are available; typical reporting applications; typical data-mining applications; purpose of data warehouses and data marts; business intelligence applications delivered
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? BUSINESS INFORMATION SYSTEMS Q1 Why organizations need business intelligence? BUSINESS INFORMATION SYSTEMS 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 BUSINESS INFORMATION SYSTEMS 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 BUSINESS INFORMATION SYSTEMS Q2 What business intelligence systems are available? BUSINESS INFORMATION SYSTEMS Business Intelligence systems ► Organization needs Invoices … BI systems (tools) Reporting Data mining Knowledge Management BUSINESS INFORMATION SYSTEMS INFROMATION TO SUPPORT MANAGERS Inventories OPERATIONAL DATA Order Decision making Planning Forecasting Business intelligence (BI) tools BI systems provide valuable information for decision-making 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 INFORMATION SYSTEMS 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 BUSINESS INFORMATION SYSTEMS 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 BUSINESS INFORMATION SYSTEMS 10 38 Market-Basket Analysis BUSINESS INFORMATION SYSTEMS 39 Market-Basket Analysis BUSINESS INFORMATION SYSTEMS 40 Q5 What is the purpose of data warehouses and data marts? BUSINESS INFORMATION SYSTEMS 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 BUSINESS INFORMATION SYSTEMS 41 Components of a Data Warehouse Source: textbook[1], pg 304 BUSINESS INFORMATION SYSTEMS 42 Data Warehouse Data Sources ► Internal operations systems ► External data purchased from outside sources ► Data from social networking, user-generated content applications ► Metadata concerning data stored in data-warehouse meta database BUSINESS INFORMATION SYSTEMS 43 Data Warehouses vs Data Marts Data mart is a collection of data ▪ ▪ ▪ Created to address particular needs ► ► ► Smaller than data warehouse Users may not have data management expertise ► ▪ Business function Problem Opportunity Need knowledgeable analysts for specific function Data extracted from data warehouse for a functional area BUSINESS INFORMATION SYSTEMS 44 Data Warehouse vs Data Marts Source: textbook[1], pg 307 BUSINESS INFORMATION SYSTEMS 45 46 Q6 How Are Business Intelligence Applications Delivered? BUSINESS INFORMATION SYSTEMS How Are Business Intelligence Applications Delivered? Source: textbook[1], pg 312 BUSINESS INFORMATION SYSTEMS 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) BUSINESS INFORMATION SYSTEMS 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 BUSINESS INFORMATION SYSTEMS 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? BUSINESS INFORMATION SYSTEMS 50 Additional Resources ► What is Business Intelligence? ► RFM analysis for customer segmentation and loyalty marketing ► Techniques that make RFM analysis work for you BUSINESS INFORMATION SYSTEMS 51 ... actually want BUSINESS INFORMATION SYSTEMS Q2 What business intelligence systems are available? BUSINESS INFORMATION SYSTEMS Business Intelligence systems ► Organization needs Invoices … BI systems. .. data marts? Q6 How Are Business Intelligence Applications Delivered? BUSINESS INFORMATION SYSTEMS Q1 Why organizations need business intelligence? BUSINESS INFORMATION SYSTEMS Why organizations... Source: textbook[1], pg 307 BUSINESS INFORMATION SYSTEMS 45 46 Q6 How Are Business Intelligence Applications Delivered? BUSINESS INFORMATION SYSTEMS How Are Business Intelligence Applications Delivered?