Business Intelligence and Data Warehousing

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Business Intelligence & DW concepts – An Introduction

Presented by T.R. Vaidyanathan

BUSINESS INTELLIGENCE- definition
Business intelligence (BI) is a broad category of applications and technologies for gathering, storing, analyzing, and providing access to data to help enterprise users make better business decisions. BI applications include the activities of decision support systems, query and reporting, online analytical processing (OLAP), statistical analysis, forecasting, and data mining.

BUSINESS INTELLIGENCE
Business intelligence applications can be: • Mission-critical and integral to an enterprise's operations or occasional to meet a special requirement • Enterprise-wide or local to one division, department, or project • Centrally initiated or driven by user demand

BUSINESS INTELLIGENCE
• BI technologies provide historical, current, and predictive views of business operations. Common functions of business intelligence technologies are reporting, OLAP, analytics, data mining, business performance management, benchmarking and predictive analytics. • Business intelligence often aims to support better business decision-making. Thus a BI system can be called a Decision Support System(DSS).

Why BI
• Business Intelligence enables organizations to make well informed business decisions and thus can be the source of competitive advantages. • This is especially true when you are able to extrapolate information from indicators in the external environment and make accurate forecasts about future trends or economic conditions. • Once business intelligence is gathered effectively and used proactively you can make decisions that benefit your organization before the competition does.

Why BI
The ultimate objective of business intelligence is to improve the timeliness and quality of information. Timely and good quality information are like having a crystal ball that can give you an indication of what's the best course to take. Business intelligence reveals to you: • • • • • • The position of your firm as in comparison to its competitors Changes in customer behaviour and spending patterns The capabilities of your firm Market conditions, future trends, demographic and economic information The social, regulatory, and political environment What the other firms in the market are doing

Why BI
You can then deduce from the information gathered what adjustments need to be made. Businesses realize that in this very competitive, fast paced, and ever-changing business environment, a key competitive quality is how quickly they respond and adapt to change. Business intelligence enables them to use information gathered to quickly and constantly respond to changes

Why BI
• Business Intelligence is a sound investment for any IT Managers to make, especially during an economic downturn. • With budgets becoming tighter and demands from executives to see immediate results from IT implementations increasing, the primary benefits a business will experience from a BI deployment are 1) An immediate impact on your bottom line, as users gain instant access to information, which in turn generates a fast feedback

Why BI
2)The leveraging of existing investments in packaged applications i.e.. enterprise resource planning (ERP), customer relationship management(CRM), by extracting value from the data they hold within. 3)Better visibility of the organization for both executives and business managers 4)A better understanding of your customers, and therefore a greater ability to retain them.

Why BI
• There is a demand to continue to choose investment that will help streamline a company’s operations, lead to greater profitability in the short term, and differentiate that company from its competitors by giving users instant access to the information necessary to make better business decision. • BI will help an organization operate more effectively and more efficiently while providing an immediate ROI

Benefits of BI
• BI provides many benefits to companies utilizing it. It can eliminate a lot of the guesswork within an organization, enhance communication among departments while coordinating activities, and enable companies to respond quickly to changes in financial conditions, customer preferences, and supply chain operations. BI improves the overall performance of the company using it.

Benefits of BI
• Information is often regarded as the second most important resource a company has (a company's most valuable assets are its people). • So when a company can make decisions based on timely and accurate information, the company can improve its performance. • BI also expedites decision-making, as acting quickly and correctly on information before competing businesses do can often result in competitively superior performance. • It can also improve customer experience, allowing for the timely and appropriate response to customer problems and priorities.

Factors Influencing Business Intelligence
• Customers are the most critical aspect to a company's success. • Hence, it is very important that you have information on their preferences. You must quickly adapt to their changing demands. Business Intelligence enables you to gather information on the trends in the marketplace and come up with innovative products or services in anticipation of customer's changing demands

Factors Influencing Business Intelligence
• Competitors can be a huge hurdle on your way to success. • Their objectives are the same as yours and that is to maximize profits(Return on Investments) and customer satisfaction. • In order to be successful you must stay one step ahead of your competitors. In business you don't want to play the catch up game because you would have lost valuable market share. • Business Intelligence tells you what actions your competitors are taking, so you can make better informed decisions.

Factors Influencing Business Intelligence
• Business Partners must possess the same strategic information you have so that there is no miscommunication that can lead to inefficiencies. • For example it is common now for businesses to allow their suppliers to see their inventory levels, performance metrics, and other supply chain data in order to collaborate to improve supply chain management. • With Business Intelligence you and your business partners can share the same information

Factors Influencing Business Intelligence
• Internal Operations are the day to day activities that go on in your business. • You need an in depth knowledge about the internal workings of your business from top to bottom. • If you make an arbitrary decision without knowing how your entire organization works it could have negative affects on your business. • BI gives you information on how your entire organization works.

Business Intelligence Technology
• Business intelligence provides organizational data in such a way that the organizational knowledge filters can easily associate with this data and turn it into information for the organization. • Persons involved in business intelligence processes may use application software and other technologies to gather, store, analyze, and provide access to data, and present that data in a simple, useful manner.

Business Intelligence Technology
• The software aids in business performance management, and aims to help people make "better" business decisions by making accurate, current, and relevant information available to them when they need it. • Some businesses use data warehouses because they are a logical collection of information gathered from various operational databases for the purpose of creating business intelligence

BI Technology Requirements
For the BI system to work effectively, enterprises must address the following technical issues: Security and specified user access to the warehouse Data volume (capacity) How long data will be stored (data retention) Benchmark and performance targets

• • • • •

Future of Business Intelligence
• In this rapidly changing world consumers are now demanding quicker more efficient service from businesses. • To stay competitive, companies must meet or exceed the expectations of consumers. Companies will have to rely more heavily on their business intelligence systems to stay ahead of trends and future events. • Business intelligence users are beginning to demand [Real time Business Intelligence] or near real time analysis relating to their business, particularly in frontline operation

Future of Business Intelligence
• They will come to expect up to date and fresh information in the same fashion as they monitor stock quotes online. Monthly and even weekly analysis will not suffice. • "Business users don't want to wait for information. Information needs to be always on and never out of date. This is the way we live our lives today.

Future of Business Intelligence
• In the not too distant future companies will become dependent on real time business information in much the same fashion as people come to expect to get information on the internet in just one or two clicks. • "This instant "Internet experience" will create the new framework for business intelligence, but business processes will have to change to accommodate and exploit the real-time flows of business data." –

Future of Business Intelligence
• In the near future business information will become more democratized where end users from throughout the organization will be able to view information on their particular segment to see how it's performing. • So, in the future, the capability requirements of business intelligence will increase in the same way that consumer expectations increase. • It is therefore imperative that companies increase at the same pace or even faster to stay competitive

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