ISQS 3358, Business Intelligence Anatomy of Business Intelligence - PowerPoint PPT Presentation

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ISQS 3358, Business Intelligence Anatomy of Business Intelligence


ISQS 3358, Business Intelligence Anatomy of Business Intelligence – PowerPoint PPT presentation

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Title: ISQS 3358, Business Intelligence Anatomy of Business Intelligence

ISQS 3358, Business IntelligenceAnatomy of
Business Intelligence
  • Zhangxi Lin
  • Texas Tech University

Learning Objectives
  • Understand todays turbulent business environment
    and describe how organizations survive and even
    excel in such an environment (solving problems
    and exploiting opportunities)
  • Understand the need for computerized support of
    managerial decision making
  • Describe the business intelligence (BI)
    methodology and concepts and relate them to DSS
  • Understand the major issues in implementing
    business intelligence
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Case Toyota Motor Sales USA
  • Challenge how to reduce vehicle transit cost
  • Average 8/day, 72-80/car, 9-10days/transit
  • Total 144-160 million/year
  • Problem
  • Inability to deliver cars to dealers timely
  • Computers generated tons of directionless reports
    and data with little help
  • Unable to make timely decisions
  • Solution Data warehouse
  • Use right technologies provided by a right vendor
    following correct concepts Oracles data
    warehouse Hyperions BI platform
  • Lesson learned data cleansing is important
  • Results
  • Discovered that the company was billed twice in
    some occasions
  • Increase the volume of cars by 40 between
  • In-transit time was reduced 5
  • Market share increased
  • According to IDC Inc. the return on the BI
    investment was 506

Changing Business Environments and Computerized
Decision Support
  • 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

Changing Business Environments and Computerized
Decision Support
A Framework for Business Intelligence (BI)
  • Business intelligence (BI)
  • A conceptual framework for decision support. It
    combines architecture, databases (or data
    warehouse), analytical tools and applications

A Framework for Business Intelligence
A Framework for Business Intelligence (BI)
  • 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
  • Managers need the right information at the right
    time and in the right place

A Framework for Business Intelligence (BI)
  • BIs Architecture and Components
  • Data Warehouse
  • Business Analytics
  • Automated decision systems
  • Performance and Strategy

A Framework for Business Intelligence (BI)
A Framework for Business Intelligence (BI)
  • BIs 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 Framework for Business Intelligence (BI)
  • BIs Architecture and Components
  • business (or corporate) performance management
  • A component of BI based on the balanced
    scorecard methodology, which is a framework for
    defining, implementing, and managing an
    enterprises business strategy by linking
    objectives with factual measures

A Framework for Business Intelligence (BI)
  • BIs 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

A Framework for Business Intelligence (BI)
  • The Benefits of BI
  • Time savings
  • Single version of truth
  • Improved strategies and plans
  • Improved tactical decisions
  • More efficient processes
  • Cost savings
  • Faster, more accurate reporting
  • Improved decision making
  • Improved customer service
  • Increased revenue

A Framework for Business Intelligence (BI)
  • 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
  • Key Issues and Framework for BI Analysis
  • How can enterprises maximize their BI
  • What BI functionality do enterprises need, and
    what are they using today?
  • What are some of the hidden costs associated with
    BI initiatives?

Main BI Topics
  • Data warehousing Making historical data
    available for analytics
  • Data preparation Extraction, transformation and
  • Query - a collection of specifications that
    enables you to focus on a particular set of data.
  • Online Analytical Processing (OLAP) - a
    capability of information systems that supports
    interactive examination of large amounts of data
    from many perspectives.
  • Reporting - generates aggregated views of data to
    keep the management informed about the state of
    their business.
  • Data mining - extraction of knowledge by
    utilizing software that can isolate and identify
    previously unknown patterns or trends in large
    amounts of data.

ISQS 3358 Business Intelligence
Intelligence Creation and Use, and BI Governance
Business Intelligence
Business Analytics
  • BI Applications
  • Data warehousing
  • Data mining
  • BPM
  • OLAP
  • etc.

Executives Managers Operators
BI Users
Business Environment
Intelligence Creation and Use and BI Governance
  • BI Governance
  • The project prioritization process within

Intelligence Creation and Use and BI Governance
  • A typical set of issues for the BI governance
    team is to address
  • Creating categories of projects (investment,
    business opportunity, strategic, mandatory, etc.)
  • Defining criteria for project selection
  • Determining and setting a framework for managing
    project risk
  • Managing and leveraging project interdependencies
  • Continually monitoring and adjusting the
    composition of the portfolio

Intelligence Creation and Use and BI Governance
  • Intelligence Gathering
  • How modern companies ethically and legally
    organize themselves to glean as much information
    as they can from their
  • Customers
  • Business environment
  • Stakeholders
  • Business processes
  • Competitors
  • Other sources of potentially valuable information

Intelligence Creation and Use and BI Governance
  • Intelligence Gathering
  • In order to be useful in decision making and
    improving the bottom line, the data must be
  • Cataloged
  • Tagged
  • Analyzed
  • Sorted
  • Filtered

Case AOL search data scandal (2006)
  • AOL
  • On August 4, 2006, AOL Research released a
    compressed text file on one of its websites
    containing twenty million search keywords for
    over 650,000 users over a 3-month period,
    intended for research purposes, which was posted
    only three days before pulled down.
  • While none of the records on the file are
    personally identifiable, the New York Times was
    able to locate an individual from the released
    and anonymized search records by cross
    referencing them with phonebooks or other public
  • Questions
  • Is it ethically fine to collect data about the
  • How to protect the confident data from the
    espionage of competing counterparts?

BI Product Providers
  • Microsoft
  • SAS
  • IBM
  • Oracle
  • SyBase
  • Business Objects
  • BI Tools Survey

List of BI tools
No. Tool Version Vendor
1. Oracle Enterprise BI Server 7.8 Oracle
2. Business Objects Enterprise XI r2 Business Objects (now SAP)
3. SAP NetWeaver BI 7.0 SAP
4. SAS Enterprise BI Server 9.1.3 SAS Institute
5. TM/1 Executive Viewer 9.1 Applix (now IBM)
6. BizzScore Suite 7.2 EFM Software
7. WebFocus 7 Information Builders
8. Excel, Performance Point, Analysis Server 2007/2005 Microsoft
9. QlikView 8 QlikTech
10. Microstrategy 8 Microstrategy
11. Hyperion System 9 Hyperion (now Oracle)
12. Actuate 9.1 Actuate
13. Cognos Series 8 8.3 Cognos (now IBM)
Microsoft SQL Server
  • SQL Server is a client-server based, relational
    database engine. That puts it head-to-head with
    the likes of IBMs DB2 and Oracles Oracle or so
    Microsoft dearly wants us to believe.
  • The problem is that, while DB2 and Oracle are
    unquestionably enterprise-level products, SQL
    Server has for years been dogged by the suspicion
    that it cant really cut the mustard.
  • SQL Server Products
  • Microsoft SQL Server 2000
  • Microsoft SQL Server 2005
  • Microsoft SQL Server 2008
  • SQL Server 2005 Editions
  • SQL Server ExpressSQL Server WorkgroupSQL
    Server DeveloperSQL Server StandardSQL Server
    EnterpriseSQL Server Compact

The Major Theories and Characteristics of
Business Intelligence
  • Some Theories of BI
  • A factory and warehouse
  • The information factory
  • Data warehousing and business intelligence
  • Teradata advanced analytics methodology
  • Oracle BI system

The Major Theories and Characteristics of
Business Intelligence
The Corporate Information Factory
The Major Theories and Characteristics of
Business Intelligence
Teredata Advanced Analytics Methodology
The Major Theories and Characteristics of
Business Intelligence
Toward Competitive Intelligence and Advantage
  • Competitive Intelligence (CI)
  • CI implies tracking what competitors are doing by
    gathering material on their recent and in-process
  • Competitive strategy in an industry
  • low-cost leader
  • market niche
  • Sustaining competitive advantage through building
    brand and customer loyalty using BI applications
  • Case MSIs Netbook (http//

Toward Competitive Intelligence and Advantage
  • 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
  • Companies are finding better or less expensive
    suppliers all over the globe

The Different Users of Business Intelligence
  • There are many different users who can benefit
    from business intelligence
  • Executives Those who focus on the overall
  • Business Decision Makers Usually focused on
    single areas of the business (finance, HR,
    manufacturing, and so forth)
  • Information Workers Typically managers or staff
    working in the back office
  • Line Workers Employees who might use BI without
    knowing it
  • Analysts Employees who will perform extensive
    data analysis

Business Scorecards
The Purpose of a Scorecard
  • A scorecard should give an executive a visual
    representation of the health of an organization
    in a single glance
  • The scorecard is of sufficiently high level to
    represent major business operations and their
  • The data in a scorecard should be as recent as
    possible to make them more actionable

Benefits to the Executive
  • In a single glance, the executive can see a wide
    swath of the business (finance, manufacturing,
    sales, marketing, and more)
  • Immediate value is gained without the need for
    the executive to perform analysis
  • Executives see not just actual values, but
    comparisons to plans or prior results

The Contents of a Scorecard
  • Scorecards usually contain some or all of the
    following elements
  • Key Performance Indicators (KPIs)
  • KPI actual values compared to historical values
    (for trend analysis)
  • KPI actual values compared to a forecast or
    budget amount
  • Rankings of different departments, locations,
    products, and so forth

The Purpose of a Dashboard
  • A dashboard is designed to allow decision makers
    to see a variety of data that affects their
    divisions or departments
  • This data may be in the form of scorecards,
    charts, tables, and so forth
  • The dashboard is generally customized for each
  • More targeted and detailed than a scorecard

Benefits to Decision Makers
  • Decision makers see a variety of information
    targeted to their department
  • This allows decision makers to focus only on the
    items over which they have control
  • Information is more detailed than that of a
  • The tools in the dashboard often have better
    analytic capabilities than a scorecard

The Contents of a Dashboard
  • A Dashboard generally contains a variety of
    different views of data
  • The data is generally KPIs and shows trends,
    breakdowns, and comparisons against a forecast or
    historical data
  • The dashboard often consists of charts and
    tables, and may include scorecard elements as well

The Purpose of Reports
  • Reports allow a much broader audience to benefit
    from the data in a BI solution
  • Reports may be static, requiring no training
  • Reports may also allow a limited amount of
  • Reports can be presented in a variety of formats,
    allowing for easier distribution

The Purpose of Custom Application Integration
  • An application used by line workers may include
    business intelligence without the worker
    realizing what is happening
  • A sales clerk may get a list of targeted
    recommendations to make based on what the
    customer is buying
  • A loan officer may be presented with the level of
    risk associated with granting a loan to a
    particular customer

The Contents of Custom Application Integration
  • Custom applications may include predictive output
    from data mining models
  • Custom applications can show history and trends
    for the current customer, supplier, and so forth
  • Custom applications may allow easy ways for users
    to explore the data for relationships

Analytic Applications
The Purpose of Analytic Applications
  • Analytic applications free analysts from building
    complex models and writing complex queries
  • Analysts are free to focus on the data and
    discover relationships and drivers behind numbers
  • Rich visualizations allow much easier
    understanding of trends and relationships

The Contents of Analytic Applications
  • Analytic applications typically have no limits
    analysts can see everything
  • Analytic applications can view and analyze all of
    an organizations data in a number of ways
  • Analytic applications are powerful, but not as
    easy to use as other mechanisms

  • Online transaction processing systems (OLTP)
  • Systems that handle a companys routine ongoing
  • 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

ISQS 3358 Business Intelligence
Successful Business Intelligence Implementation
  • Appropriate Planning and Alignment with the
    Business Strategy
  • Establish a BI Competency Center (BICC) within
    the Company
  • 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

Conclusion Business Intelligence Today and
  • Todays organizations are deriving more value
    from BI by extending actionable information to
    many types of employees, maximizing the use of
    existing data assets
  • Visualization tools including dashboards are used
    by producers, retailers, governments, and special
  • More and more industry-specific analytical tools
    will flood the market to perform almost any kind
    of analysis and to facilitate informed decision
    making from the top level to the user level
  • A potential trend involving BI is its possible
    merger with artificial intelligence (AI)

Application Cases in the Book
  • Case 1.1 Intelligence Price Setting Using
    Automated Decision Support
  • http//
  • Using Price-optimization programs by SAS
  • Case 1.2 - Predictive Analytics Helps Texas
    Collect Taxes
  • Using data mining software from SPSS
  • Case 1.3 - France Telecom Business Intelligence
  • Business Intelligence Competence Center
  • http//
  • http//
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