Business Intelligence Tony Devine Ryan Feigelson Angie Koslowski

Introduction Business Intelligence: the exploration and mining of data in search of meaningful patterns Business Intelligence: the exploration and mining of data in search of meaningful patterns History and Definitions History and Definitions Progress through the 1990’s-->9/11 Progress through the 1990’s-->9/11 Modern Uses & Applications of BI Modern Uses & Applications of BI Companies that provide this service Companies that provide this service

History of BI Early references to Art of War Early references to Art of War To succeed in war, one should have full knowledge of one's own strengths and weaknesses and full knowledge of one's enemy's strengths and weaknesses To succeed in war, one should have full knowledge of one's own strengths and weaknesses and full knowledge of one's enemy's strengths and weaknesses Similar to business: Similar to business: Collecting Data Collecting Data Discerning patterns and meaning from data Discerning patterns and meaning from data Responding to resultant information Responding to resultant information

History of BI, cont. Before information age, businesses struggled to gather data from non-automated sources and made decisions based on intuition. Before information age, businesses struggled to gather data from non-automated sources and made decisions based on intuition. As more systems became automated, more data became available. As more systems became automated, more data became available. Due to incompatibilities between systems and platforms, businesses were unable to merge data from various sources in order to make it meaningful. Due to incompatibilities between systems and platforms, businesses were unable to merge data from various sources in order to make it meaningful. Need for short- and long-term data to make company-wide strategic decisions. Need for short- and long-term data to make company-wide strategic decisions.

History of BI, cont. Impact of 9/11 Impact of 9/11 Made security issues more of a concern Made security issues more of a concern Need to know enemy Need to know enemy The need to discern patterns and make strategic decisions in business and governmental organizations. The need to discern patterns and make strategic decisions in business and governmental organizations. Encouraged developers to create efficient systems that worked for many industries and organizations. Encouraged developers to create efficient systems that worked for many industries and organizations. Data warehouses and data marts emerged as an answer to the problem of multi-system incompatibility Data warehouses and data marts emerged as an answer to the problem of multi-system incompatibility

Data Warehouses Data Warehouse: repository of integrated information, available for queries and analysis. Data Warehouse: repository of integrated information, available for queries and analysis. Place where relevant data can be held for completing strategic reports for management. Place where relevant data can be held for completing strategic reports for management. Strategy-->most execs are less concerned with day to day operations, as they are with overall business functions Strategy-->most execs are less concerned with day to day operations, as they are with overall business functions Can use this information for strategic decisions. Can use this information for strategic decisions.

Data Warehouses, cont. Businesses use multiple platforms and technology. Businesses use multiple platforms and technology. Data Warehouses take data from multiple platforms and place them in common location using common query tool. Data Warehouses take data from multiple platforms and place them in common location using common query tool. This makes decision support more readily available without affecting day to day operations. This makes decision support more readily available without affecting day to day operations. Not a location for all data, but a location for data that is interesting. Not a location for all data, but a location for data that is interesting.

Data Marts Data warehouses combine data across the entire enterprise. Data warehouses combine data across the entire enterprise. Data mart: specialized version of data warehouse. Creation of data is predicated on specific, defined need for certain grouping of select data. Data mart: specialized version of data warehouse. Creation of data is predicated on specific, defined need for certain grouping of select data. Smaller than warehouse, focuses on particular subject/department. Smaller than warehouse, focuses on particular subject/department.

Modern Uses and Applications Business Intelligence can be used in a variety of business functions, including: Business Intelligence can be used in a variety of business functions, including: Process Re-Engineering Process Re-Engineering Decision Support Systems Decision Support Systems Finance/Budgeting Finance/Budgeting Competitive Analysis Competitive Analysis Supply Chain Management Supply Chain Management

Designing and implementing a business intelligence program Goal Alignment queries -The first step determines the short and medium-term purposes of the program. -What strategic goals of the organization will the program address? -What strategic goals of the organization will the program address? -What organizational mission/vision does it relate to? -A crafted hypothesis needs to detail how this initiative will eventually improve results / performance. Cost and risk queries -The financial consequences of a new BI initiative should be estimated. -It is necessary to assess the cost of the present operations and the increase in costs associated with the BI initiative? costs associated with the BI initiative? -What is the risk that the initiative will fail? -This risk assessment should be converted into a financial metric and included in the planning? Customer and Stakeholder queries -Determine who will benefit from the initiative and who will pay. -What kinds of customers/stakeholders will benefit directly from this initiative? -What are the quantitative / qualitative benefits? -How will customers' benefits be monitored? -What about employees,... shareholders,... distribution channel members?

Gartner: Insights and advice from more than 1,000 technology experts North Carolina Courts system problems Ability to serve the public with speed and accuracy Ability to serve the public with speed and accuracy Lack of universal office automation, easy-to-use systems and internet access for employees who need it Lack of universal office automation, easy-to-use systems and internet access for employees who need it Gartner Groups Recommendation Implement a new technology system over a 5 year plan for $65-$95 million dollars Implement a new technology system over a 5 year plan for $65-$95 million dollars Benefits of new systems Judge can immediately access the criminal record of a defendant standing in front of him Judge can immediately access the criminal record of a defendant standing in front of him Clerks could collect fines and court costs over the internet Clerks could collect fines and court costs over the internet Electronically submit citations to courts Electronically submit citations to courts

Transferring Data Into Wisdom

Company Club Cards Organizations that have been collecting data from their transactional systems have the opportunity to realize potential of the data as an asset to the organization and leverage that asset in a manner that provides greater understanding of the subject matter. Location of purchase Purchase trends: What, Where, When, Who to answer WHY

BI Software Software that enables users to obtain enterprise-wide information more easily. Software that enables users to obtain enterprise-wide information more easily. More tightly integrate querying, reporting, OLAP, data mining, & Data warehousing. More tightly integrate querying, reporting, OLAP, data mining, & Data warehousing. End goal to slice and dice the information from the organizations databases without having to wait for their IT departments to develop complex queries End goal to slice and dice the information from the organizations databases without having to wait for their IT departments to develop complex queries

BI Software Inductive Logic The process of reasoning in which the premises of an argument support the conclusion but do not ensure it. The process of reasoning in which the premises of an argument support the conclusion but do not ensure it. Conditional Logic If (condition A) THEN (do something) ELSE (do something different) If (condition A) THEN (do something) ELSE (do something different)

Fatal Flaws of BI “If we build it they will come” “If we build it they will come” how the data warehouse is set up is critical how the data warehouse is set up is critical IT organizations often create data warehouses for businesses, wit little or no knowledge of the business it is creating the warehouse for IT organizations often create data warehouses for businesses, wit little or no knowledge of the business it is creating the warehouse for This can lead the users within the business organization to perceive the information as having little or no value. This can lead the users within the business organization to perceive the information as having little or no value. Can’t see the benefit of the information Can’t see the benefit of the information To avoid this the business and the IT company must work in tandem so that the information is relevant to the business’s needs To avoid this the business and the IT company must work in tandem so that the information is relevant to the business’s needs

“Data Quality Problem…we don’t have one” Many companies fail to realize or admit that there are problems with their data Many companies fail to realize or admit that there are problems with their data Through 2007 up to 50% of all data warehouse projects will be of little use or a complete failure due to lack of quality data. Through 2007 up to 50% of all data warehouse projects will be of little use or a complete failure due to lack of quality data. Companies tend to blame the IT department for these failures and fail to recognize that it’s the quality of the data they are gathering that is the problem Companies tend to blame the IT department for these failures and fail to recognize that it’s the quality of the data they are gathering that is the problem Quality issues need to be addressed if the warehouse project is to succeed. Quality issues need to be addressed if the warehouse project is to succeed.

“Our enterprise applications vendor will deliver the best solution” It is often the case that businesses assume that a “one stop shop” solution will be the best and most cost effective solution for the business. It is often the case that businesses assume that a “one stop shop” solution will be the best and most cost effective solution for the business. However, many enterprise application providers offering BI solutions fail to address the right information requirements However, many enterprise application providers offering BI solutions fail to address the right information requirements Businesses need to compare the vendor’s solution with that of a market leading specialty vendor to be sure. Businesses need to compare the vendor’s solution with that of a market leading specialty vendor to be sure.

Smarter use of BI Leading BI initiatives are interactive, flexible processes that take into account the needs and skills of people within the company. Leading BI initiatives are interactive, flexible processes that take into account the needs and skills of people within the company. This means viewing BI as a continuum that spans diverse users-including managers, workers, sales representatives, Sr. Executives, partners, customers, and suppliers. This means viewing BI as a continuum that spans diverse users-including managers, workers, sales representatives, Sr. Executives, partners, customers, and suppliers.

Smarter use of BI Companies must change the way they implement and manage their information architecture and application portfolios Companies must change the way they implement and manage their information architecture and application portfolios Better integrate BI with business processes Better integrate BI with business processes Sharpen users’ information-analysis skills Sharpen users’ information-analysis skills