Download Business Intelligence

IT Career- Writing Code or Getting the Wireless to Work?
As a Villanova graduate you are well positioned for a career in business technology
consulting. It is easier to teach a business person technical skills , than to teach a
technician business skills. Keep in mind:
 Technology is Driving Business
– Daily operation
– Reacting to Change
 Information Management is Hot
– Getting value from ERP systems
– Eliminating Silos
 Explore All Opportunities
– Interview Everywhere, Seek Interviews Outside of Nova Recruiting
Consulting Offers Unique Variety and Responsibilities for Analysts
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494874 Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp
– Recession = Efficiency
Business Intelligence Facts
Prepared for MGT 2206: Business Analytics
Deloitte Consulting LLP
September 11th , 2008
Introduction to Business Intelligence Concepts
 What is Business Intelligence (BI)?
 Where does BI fit in Information Management?
 What are the different components of BI?
 Spotlight on Data Analytics
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494874 Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp
 Reporting Basics
Business Intelligence – Definition
BI refers to the tools and process used by an organization to gain intelligent insight
into its business through the use of a variety of actionable reports.
Organizations have a lot of data flowing in and out of different departments, disparate
systems, and numerous business process. The process of storing, retrieving,
cleansing, and translating this data into meaningful information and subsequently
managing this information is called Enterprise Information Management (EIM).
BI is a component of EIM which concerns itself with finding meaning to this the
information through monitoring, analysis, dissection (“slicing and dicing”), and other
measurements.
Turning information into intelligence
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494874 Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp
BI components include online analytical processing, Ad Hoc Querying/Reporting,
Operational Reporting/Analytics, Analytical Dashboards/Scorecards, Data Mining,
Forecasting, and Statistical Analysis.
Business Intelligence – Components
Component
Functionality
Market Leading Tool
Operational
Reporting/Analytics
Canned and static reports geared toward reporting needs that
change very infrequently and the use of analytic dashboards
which employ visual alerts to present status updates and areas
of concern for key performance indicators (KPIs)
Actuate, Information
Builders, Business Objects
Ad Hoc
Querying/Reporting
Managed queries which are drawn from an environment with a
defined set of query options that can be executed
Business Objects, Cognos
Online Analytical
Processing (OLAP)
An approach to quickly provide answers to analytical queries that Hyperion, Oracle, Micro
are multidimensional in nature. At the heart of OLAP is cubes
Strategy, Cognos
which is an arrangement of data in arrays to allow fast analysis
Dashboards
Monitor critical business metrics, alert issues that need attention, Cognos, Business Objects,
and manage indicators in order to take action faster. Allows for
Hyperion
tracking of performance through scorecards and collaboration
with others to follow recommended actions to improve
organizational performance
Data
Mining/Forecasting/
Statistical Analysis
The concept of predictive analytics, using unmanaged analytical
models to exploit data and reveal future business performance,
events, and customer behavior. It is the process of sorting
through data to identify patterns and relationships
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SAS, IBM
494874 Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp
OLAP can be used for data mining (see below)
Business Intelligence – Data Mining
Data mining is the process of discovering meaningful new correlations, patterns, and
trends by sifting through large amounts of data stored in repositories, using pattern
recognition technologies as well as statistical and mathematical techniques.
 Data Mining can accomplish the following tasks:
Task
Description
Explanation
Describe patterns and trends lying within data. High-quality description can often be accomplished by
exploratory data analysis, a graphical method of exploring data in search of patterns and trends.
Estimation
Estimation is similar to classification except that the target variable is numerical rather than categorical.
Example, estimating the amount of money a randomly chosen family of four will spend for back-to-school
shopping this fall.
Prediction
Prediction is similar to classification and estimation, except that for prediction, the results lie in the future
Clustering
Clustering refers to the grouping of records, observations, or cases into classes of similar objects. A cluster
is a collection of records that are similar to one another, and dissimilar to records in other clusters.
Clustering differs from classification in that there is no target variable for clustering.
Association
The association task for data mining is the job of finding which attributes “go together.” Most prevalent in
the business world, where it is known as affinity analysis or market basket analysis, the task of association
seeks to uncover rules for quantifying the relationship between two or more attributes. Example, examining
the proportion of children whose parents read to them who are themselves good readers.
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494874 Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp
Classification In classification, there is a target categorical variable, such as income bracket, which, for example, could be
partitioned into three classes or categories: high income, middle income, and low income. The data mining
model examines a large set of records, each record containing information on the target variable as well as
a set of input or predictor variables.
Business Intelligence – Data Mining Tasks Examples
02 Winner's Circle
03 Executive
Suites
04 Pools & Patios
05 Kids & Cul-deSacs
06 Urban Gold
Coast
07 Money &
Brains
08 Young Literati
09 American
Dreams
10 Bohemian Mix
11 Second City
Elite
12 Upward Bound
13 Gray Power
14 Country Squires
15 God's Country
16 Big Fish, Small Pond
Subject
Age
Gender
Occupation
001
47
F
Software engineer
002
28
M
Marketing consultant
003
35
M
Unemployed
Classification
Clustering
Estimation
Prediction/Forecasting
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494874 Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp
01 Blue Blood
Estates
Business Intelligence – Vendors
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494874 Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp
The magic Quadrant of vendors in the Business Intelligence Market:
Business Intelligence Concepts
1. What is the difference between EIM (enterprise information management) and BI?
Business Intelligence is a component of EIM
2. What is BI?
Business Intelligence is defined as the process of finding meaning to data through monitoring, analysis, dissection
(“slicing and dicing”), and other measurements.
3. Which of the following components are part of BI?
A.
Operational Reporting/Analytics
B.
Ad Hoc Querying/Reporting
C.
OLAP
D.
Dashboards
E.
Data Mining/Forecasting/Statistical Analysis
4. What is an OLAP Cube?
5. What is Ad Hoc Query?
Ad hoc querying and reporting allows the users to create specific, customized queries typically through the use of
report selection criteria, filters, mathematical operators, and expressions
6. What are Dashboards?
A dashboard is a visual display of the most important information needed to achieve one or more objectives of an
organization, consolidated and arranged on a single screen so the information can be monitored at a glance
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494874 Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp
A collection of one or more related measure groups and their associated dimensions
Major Reporting Requirements
The key to driving better and more predictable business performance is to deliver
timely and actionable information to the hands of every person throughout the
enterprise.
Reporting Requirements:
 Report the detailed information needed by everyone for day-to-day decision making
– Deliver detailed data on current and historical performance to users across the enterprise
 Analyze data to uncover root causes and trends in business performance
– Provide detailed insight into the business from many different angles so that managers can uncover
the causes of performance problems, identify opportunities, and predict results. Users leverage the
advanced analysis to reveal reasons for performance peaks or aberrations
– Employ monitoring technology to constantly track business metrics. Users can then use their
scorecards and dashboards to create actionable information and alerts about ongoing business
activity. Users are empowered with up-to-the-minute information for their business decisions
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494874 Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp
 Monitor the performance of the organization at all levels and in real time
Report Summary
 There are 3 types of reports, each one best suited for a specific audience: Financial
(executive), Operational (Manager), and Analysis Reports (Analyst)
 There are 3 typical reporting categories with following characteristics:
– Standard Business Reporting: Supporting typical business needs, Collaboration mechanism for
manipulation and analysis, Targeted at medium-sized groups of business users, Ideal cell-level local
analysis and formatting
– Analytical Reporting and Analysis: Analyzing data at a more discreet and interactive level than
standard business reporting, OLAP, query, and analytics solutions, Targeted at small groups of
producers, Ideal for ad hoc query and analysis
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494874 Business Intelligence and Reports Creation - Basic Concepts - August BTA Bootcamp
– Operational Reporting: Targeting large scale business with multiple independent departments or
functions with near real-time information, Format-centric production output and presentation
solutions