ISQS 3358, Business Intelligence Anatomy of Business Intelligence Zhangxi Lin Texas Tech University 1

Learning Objectives Understand the general ideas in business intelligence by cases Catch main BI concepts Get familiar with the most popular BI applications and tools Know how to access your BI resources for this course 2ISQS 3358

Outline BI cases BI framework BI applications BI tools 3ISQS 3358

Case: Toyota Motor Sales USA – 2011 Gartner BI Excellence Awards 2011 Gartner BI Excellence Awards 2011 Gartner BI Excellence Awards Challenge: how to reduce vehicle transit cost ◦ Average: $8/day-car * 10 days = $72-80/car, 9-10days/transit ◦ Total $ million/year for transit of two million cars Problem: ◦ Inability to deliver cars to dealers timely ◦ Computers generated tons of directionless reports and data with little help ◦ Unable to make timely decisions 4ISQS 3358

Case: Toyota Motor Sales USA (II) Solution: Data warehouse ◦ Use right technologies provided by a right vendor following correct concepts – Oracle’s data warehouse + Hyperion’s 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% 5ISQS 3358

More applications Premier Bank Card 3’46” Premier Bank Card Mobile Business Intelligence with iPhone 2’58” Mobile Business Intelligence with iPhone Business intelligence with iPad 2’29” Business intelligence with iPad 6ISQS 3358

Questions In what way did the old system create problems for Toyota? What information needs of managers re satisfied by the new system? What decisions are supported by the BI system? 7ISQS 3358

Questions What is the relationship between BI and MIS? What are main applications in BI? What are main BI technologies? 8ISQS 3358

9 Different Users of Business Intelligence There are many different users who can benefit from business intelligence ◦ Executives – Those who focus on the overall business ◦ 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 9 ISQS 3358

Business Intelligence 10 BI Users Executives Managers Operators Data Business Environment DecisionsData Business Analytics BI Applications: - Data warehousing -Data mining - BPM - OLAP - etc. ISQS 3358

BI vs. MIS MIS were used by a select few in the organization, due to the efforts involved in collecting data and preparation of summaries from the same. Use of Computers in the MIS process helped in speeding up the process and increased its reach. Then came the phase of BI ◦ BI has been privilege of the TOP segment of the pyramid. ◦ The cost involved prohibited the expansion of BI to the Middle tier Business users. ◦ Operational BI is expected to do the task of making it available to masses, as they are the ones who need BI, more times in a day. 11ISQS 3358

BI Framework

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 costs ◦ Key Issues and Framework for BI Analysis  How can enterprises maximize their BI investments?  What BI functionality do enterprises need, and what are they using today?  What are some of the hidden costs associated with BI initiatives? 13ISQS 3358

A Framework for Business Intelligence (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 14 The Benefits of BI ISQS 3358

Changing Business Environments and Computerized Decision Support 15ISQS 3358

A Framework for Business Intelligence (BI) BI’s Architecture and Components ◦ Data Warehouse ◦ Business Analytics  Automated decision systems ◦ Performance and Strategy 16ISQS 3358

A Framework for Business Intelligence (BI) 17ISQS 3358

BI Applications

Main BI Topics Data warehousing – Making historical data available for analytics Data preparation – Extraction, transformation and loading 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.OLAP 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. 19 ISQS 3358 Business Intelligence 19 ISQS 3358

BI Applications Visualizations ◦ Scorecards ◦ Dashboard ◦ Reports Analytic applications ◦ Data mining ◦ Predictions ◦ OLAP & OLTP 20ISQS 3358

Visualization Cases Stock market performance 1’15” Stock market performance Ocean Environment Animation 5’13” Ocean Environment Animation 21ISQS 3358

22 Example ISQS 3358

Business Scorecards Business Scorecards 23 We see this everyday ISQS 3358

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 goals The data in a scorecard should be as recent as possible to make them more actionable Scorecards usually contain some or all of the following elements: ◦ Key Performance Indicators (KPIs): historical values (for trend analysis) compared to a forecast or budget amount ◦ Rankings of different departments, locations, products, and so forth 24 ISQS 3358

25 Dashboards 25 ISQS 3358

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 user More targeted and detailed than a scorecard The data on Dashboard ◦ Generally KPIs consists of charts and tables, and may include scorecard elements as well 26 ISQS 3358

Reports 27 ISQS 3358

28 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 28 ISQS 3358

29 Analytic Applications 29 ISQS 3358

OLTP vs. OLAP Online transaction processing systems (OLTP) Systems that handle a company’s routine ongoing business Online analytic processing (OLAP) Online analytic processing 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 seconds 30 ISQS 3358 Business Intelligence 30 ISQS 3358

BI Tools

BI Products & Providers Traditional Providers ◦ Microsoft ◦ SAS ◦ IBM ◦ Oracle ◦ SyBase ◦ Business Objects BI Tools Survey Big Data solution providers ◦ Cloudera ◦ Yahoo! ◦ IBM ◦ Amazon ◦ Google 32 ISQS 3358 Business Intelligence 32 ISQS 3358