Business Intelligence

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Business Intelligence
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Business Intelligence

• A set of technologies and processes that use data
  to understand and analyze business performance
  (Davenport and Harris, 2007).
• Business information and business analyses within
  the context of key business processes that lead
  to decisions and actions and that result in
  improved business performance (Williams and
  Williams, 2007).

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Business Intelligence
Business Information
Business Analyses
Business Decisions
In the Context of Core Business Processes
Increased Sales,Reduced Costs, andIncreased
Profits
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Extent of BI Adoption
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Analytical Application Domains
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Application Platforms
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Examples

• Western Digital uses BI to better manage its
  inventory, supply chains, product lifecycles, and
  customer relationships. BI has enabled the
  company to reduce operating costs by 50.
• Capital One uses BI to analyze and improve
  profitability of its product lines as well as
  effectiveness of its business processes and
  marketing programs.
• Continental Airlines invested 30 million in BI
  to improve its business processes and customer
  service. Continental says it has reaped a 500
  million return.

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BI Drivers

• Abundance of data
• ERP Systems
• Inexpensive storage
• Ease of collection
• Network infrastructure
• Web technologies
• Mature data warehouse technologies
• Powerful and easy to use analytical software
• Need to squeeze as much as possible from business
  processes
• Recent Accenture study that found that nine in 10
  senior executives at Fortune 1000 companies place
  strong analytical and business intelligence
  capabilities at the top of their list in
  preparing them for their biggest challenge ahead

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What does BI Include?

• Data warehouses, data marts
• Reporting, querying
• Dashboards, scorecards
• Forecasting, statistical analysis
• Simulation, optimization models
• Measurement
• Process reengineering
• Business Process Management (BPM)

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BI and Analytics
Whats the best that can happen?
Optimization
Predictive modeling
What will happen next?
Analysis
Competitive Advantage
Forecasting/extrapolation
What if these trends continue?
Statistical analysis
Why is this happening?
Alerts
What actions are needed?
Query/drill down
Where exactly is the problem?
Access and Reporting
How many, how often, where?
Ad hoc reports
Standard reports
What happened?
Degree of Intelligence
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Corporate Information Factory
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Closed Loop Analytical Process (Vesset, 2003)
Analyze
Track
Analytical
Transaction-Oriented
Model
Act
Decide
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Entity-Relationship Model
E-R model includes allthe processes of an
organization includingmany that do not
intersect in the real world
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Dimensional Modeling

• The goal of dimensional modeling is to create an
  intuitive representation of the data that is
  optimized for high-performance access
• Essentially an E-R model with some restrictions
• A single E-R model breaks down into multiple
  dimensional models

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Retail sales process dimensional model
One-to-manyrelationships betweendimensions and
fact table 103 records indimension
tables106 to 109 in facttables Diagram
makes itobvious why themodel is calledthe Star
Schemaor Star Join
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SAP Terminology

• A dimensional model is called an InfoCube
• The facts in the fact table are called Key
  Figures
• Attributes of the dimensions are called
  Characteristics

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Titanic InfoCube
Passenger isnt quite correct because
Classincludes the crew
Counter key figure has the value of 1 for all
records so it can be usedto count the number of
records foreach combination of
characteristicvalues by summing
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ERPSim Market InfoCube
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Business Explorer Suite

• Query Builder
• Analyzer
• Report Designer
• Web Application Designer
• Information Broadcasting

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BEx Analyzer Query Designer
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Analyzer
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Viewing Query in SAP GUI (RSRT)