1. Business Intelligence Tracy Hartley Zack Johnson Marissa McGee Tracy Hartley Zack Johnson Marissa McGee

2. What Is Business Intelligence? A set of concepts and methods to improve business decision-making by using fact based support systems. In other words, business intelligence is created from computer software that analyzes company data and creates useful reports that make the decision-making process more effective and efficient. Wikipedia, encyclopedia A set of concepts and methods to improve business decision-making by using fact based support systems. In other words, business intelligence is created from computer software that analyzes company data and creates useful reports that make the decision-making process more effective and efficient. Wikipedia, encyclopedia Data BI Program Information Reports

3. History… Sun Tzu’s “The Art of War” One should have full knowledge of one’s own strengths and weaknesses as well as full knowledge of one’s enemy’s strengths and weaknesses. Before the Information Age Businesses struggled with the up keep of information and storage. The process was slow and often ineffective. Modern Business Technology has allowed for more effective and efficient systems. Up to the minute data and analysis. Sun Tzu’s “The Art of War” One should have full knowledge of one’s own strengths and weaknesses as well as full knowledge of one’s enemy’s strengths and weaknesses. Before the Information Age Businesses struggled with the up keep of information and storage. The process was slow and often ineffective. Modern Business Technology has allowed for more effective and efficient systems. Up to the minute data and analysis.

4. Basic Components of Any BI Program Data warehouse: a database that holds business information from many sources in the enterprise, covering all aspects of the company’s processes, products and customers (Stair, 219) Data mart: Subsets of a data warehouse that bring data to small and medium-sized businesses as well as the different departments of larger businesses (Stair, 221) Data warehouse: a database that holds business information from many sources in the enterprise, covering all aspects of the company’s processes, products and customers (Stair, 219) Data mart: Subsets of a data warehouse that bring data to small and medium-sized businesses as well as the different departments of larger businesses (Stair, 221)

5. Data Mining An automated analysis that looks for patterns and relationships in data warehouses. Computer software that requires the user’s trust to find all of the valid relationships needed. Bottom-up analysis that creates hypothesis and predictions. An automated analysis that looks for patterns and relationships in data warehouses. Computer software that requires the user’s trust to find all of the valid relationships needed. Bottom-up analysis that creates hypothesis and predictions.

6. OLAP Online Analytical Processing Creates reports using the data warehouses A top-down analysis that requires user created queries to match information and determine relationships. Requires a high level of user skills and understanding of the system. Online Analytical Processing Creates reports using the data warehouses A top-down analysis that requires user created queries to match information and determine relationships. Requires a high level of user skills and understanding of the system.

7. Key Differences between Data Mining and OLAP Data mining takes the data and finds relationships despite the user’s assumptions. OLAP finds relationships in the data according to the user’s assumption. Data mining takes the data and finds relationships despite the user’s assumptions. OLAP finds relationships in the data according to the user’s assumption.

8. The Five Stages of BI Data Sourcing Data Analysis Situation Awareness Risk Analysis Decision Support Data Sourcing Data Analysis Situation Awareness Risk Analysis Decision Support

9. Data Sourcing Extracts data from different areas Memos Reports E-mails Photos Data is collected through Database queries Web searches Extracts data from different areas Memos Reports E-mails Photos Data is collected through Database queries Web searches

10. Data Analysis Search through the data to find that which is relevant to the company’s needs. Also known as data mining Can be in the form of current or future trends. Search through the data to find that which is relevant to the company’s needs. Also known as data mining Can be in the form of current or future trends.

11. Situational Awareness Any irrelevant information is discarded and the relevant information is set in the context of the business and its environment. Applying the information to the problem. Any irrelevant information is discarded and the relevant information is set in the context of the business and its environment. Applying the information to the problem.

12. Risk Assessment Decisions are made in terms of what actions should be taken and when. Analyze the current and future risks associated with our decisions. Weigh the costs and benefits of making the decisions. Decisions are made in terms of what actions should be taken and when. Analyze the current and future risks associated with our decisions. Weigh the costs and benefits of making the decisions.

13. Decision Support Apply the information you need in an appropriate time frame and manner.

14. The Many Types of BI DATA Data mining Data warehouse DSS EIS GIS MIS OLAP Text mining DATA Data mining Data warehouse DSS EIS GIS MIS OLAP Text mining KNOWLEDGE Experience KNOWLEDGE Experience

15. Designing/Implementing Questions to ask Risk assessment Who uses BI? Companies/software Questions to ask Risk assessment Who uses BI? Companies/software

16. Assessments to be Made by the Company Before Implementing a BI Program Assess short- and long-term goals. Set tangible goals with deadlines and expectations Assess the current method of collecting business intelligence Determine strengths and weaknesses Is current method effective for achieving goals? Assess short- and long-term goals. Set tangible goals with deadlines and expectations Assess the current method of collecting business intelligence Determine strengths and weaknesses Is current method effective for achieving goals?

17. Assessments to be Made by the Company Before Implementing a BI Program Determine the financial consequences associated with a new BI program Work with companies, such as IBM, to adequately determine the needs of the company. Costs include more than just the software… Set-up Employee training Updating the system Personnel Maintenance Determine the financial consequences associated with a new BI program Work with companies, such as IBM, to adequately determine the needs of the company. Costs include more than just the software… Set-up Employee training Updating the system Personnel Maintenance

18. Assessments to be Made by the Company Before Implementing a BI Program Identify who is going to pay for the program. Determine any risks outside of cost that might arise from a new BI program Address possible benefits. Both quantitative and qualitative internal and external to the company. Weigh the costs and benefits Identify who is going to pay for the program. Determine any risks outside of cost that might arise from a new BI program Address possible benefits. Both quantitative and qualitative internal and external to the company. Weigh the costs and benefits

19. Assessments to be Made by the Company Before Implementing a BI Program Set up a system of metrics and measurements to analyze results. Benchmark against other companies. Evaluate system on a regular basis to allow for any corrections that need to be made. Set up a system of metrics and measurements to analyze results. Benchmark against other companies. Evaluate system on a regular basis to allow for any corrections that need to be made.

20. Companies That Provide BI Programs IBM Offers both software and hardware Provides components of BI programs and entire systems Banking, Criminal, Retail and Insurance are some of the industries IBM offers support to SAP Oracle IBM Offers both software and hardware Provides components of BI programs and entire systems Banking, Criminal, Retail and Insurance are some of the industries IBM offers support to SAP Oracle

21. Applications Sales Pricing Profit margins Which products are being purchased Consumer behavior Which customers are buying what, when. What factors effect purchasing behavior Competitive Intelligence What our competitors doing that we could/should be doing? Do we have a competitive advantage? Counter Intelligence Sales Pricing Profit margins Which products are being purchased Consumer behavior Which customers are buying what, when. What factors effect purchasing behavior Competitive Intelligence What our competitors doing that we could/should be doing? Do we have a competitive advantage? Counter Intelligence

22. Boscov’s Department Store 40 stores in Pensylvania, New York, New Jersey, Deleware, Maryland and Virginia Family owned company. Upper level management includes 206 employees Boscov’s Department Store 40 stores in Pensylvania, New York, New Jersey, Deleware, Maryland and Virginia Family owned company. Upper level management includes 206 employees

23. Doscov’s Department Store Problem: Only able to provide weekly sales reports. Insufficient for employees to keep the shelves adequately stocked with the right products Unable to meet some customers’ immediate needs. Goal: Wanted to keep their company growing and provided more up-to-date reports. Problem: Only able to provide weekly sales reports. Insufficient for employees to keep the shelves adequately stocked with the right products Unable to meet some customers’ immediate needs. Goal: Wanted to keep their company growing and provided more up-to-date reports.

24. Boscov’s Department Store Solution: IBM DB2 Universal Database for z/O Provides buyers with mission-critical business intelligence on sales performance Optimize performance of the data warehouse and the queries that buyers depend on to make important business decisions. Solution: IBM DB2 Universal Database for z/O Provides buyers with mission-critical business intelligence on sales performance Optimize performance of the data warehouse and the queries that buyers depend on to make important business decisions.

25. Boscov’s Department Store Results: Able to provide current and accurate daily sales information Making better sales decisions and provide better products and services for its customers. Results: Able to provide current and accurate daily sales information Making better sales decisions and provide better products and services for its customers.

26. Safeway Club Card Means for company to track sales per customer. Allows Safeway to target profitable and discourage nonprofitable customers Can track purchasing trends Better idea of what products sell the best in different locations Charge different prices for clients for different floor location Means for company to track sales per customer. Allows Safeway to target profitable and discourage nonprofitable customers Can track purchasing trends Better idea of what products sell the best in different locations Charge different prices for clients for different floor location

27. General Problems/Shortfalls Supply chain value Can not predict everything Weather Human error Any other examples you can think of? Important to determine if it is faster to get information from BI and make adjustments according to things you cannot predict!! Supply chain value Can not predict everything Weather Human error Any other examples you can think of? Important to determine if it is faster to get information from BI and make adjustments according to things you cannot predict!!