Business Intelligence Presentation (Part 1 of 2)

8/9/2019 Business Intelligence Presentation (Part 1 of 2)

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Business Intelligence

What is BI?(Part 1 of 2)


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How do I make decissions

in my business? How does the company make decissions? Usingintuition? You have to make business decisions based

on reality (facts and numbers!)

EPM (Enterprise Performance Management) is amanagement style focused on measuring companies

Several Methodologies / Strategies: Balanced Scorecard

Six Sigma, ABC - Activity Based Costing, TQM - TotalQuality Management


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Phases in the Decision

Making Process

Implementation

Intelligence

Design

Election

Control

Explicit the problem

Plan for possible solutions

Evaluate based on the outcome

Actions according to a plan

Verify expectations and effects


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Types of decisionsStructured Semi structured Non structured

Strategic

Tactic

Operational


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I need information!

All of these methodologies are based in severalnumeric indicators

If you cant measure it, you cant manage it

Indicators come from day-to-day reality (mainstreet)

Monthly outcome, Number of complaints filed

per product, Number of satisfied customers,

Returns

Data exists, but ...


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Different Points of View (1)

The CEO says We need to sell more

Marketing Mgr thinks What can we offer to ourcustomers?

To do this, we need to know: What are the most soldproducts? What bundles are the most successful?

Who can provide us with this information? Because, wealready have this information, dont we?

IT Mgr, while upgrading platforms and implementing a newCRM system, estimates that the information will be availablein 20-30 days...


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Different Points of View (2)

Marketing Mgr asks: A month!? Didnt we have this kind ofinformation in our servers already?

IT Mgr answers: Yes, the data is there, but it doesnt have the

right structure to answer the questions youre asking

Marketing Mgr keeps thinking that if the data is there, it cantbe so difficult to get the answers they need

IT Mgr keeps thinking that Marketing Mgt always asks forweird things, and with not time at all

And the CEO just wanted to sell more!


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Business Problem

Where is the problem?

Marketing Mgr is right: the data IS in the servers

IT Mgr is also right: is not easy to give data the rightstructure to answers questions

For IT is just enough to deal with data, Marketingneeds to extract information from this data.


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Data and information

are not the same Companies always maintain several systems to run

their everyday business

All of the company workers add and check data fromthis systems all the time

However sometimes this data, presented in this way,is not enough to make business decisions


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Data, Information and

Knowledge Data: entity and transactions stored as

structures and codes

Information: is the outcome of processing andextraction of data, with specific domain

meaning to those who access it

Knowledge: Information becomes knowledgewhen is used to make decisions and take

actions accordingly


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What is Business Intelligence? Is a set of processes, technologies, applications and

practices used to provide information and supportthe decision making process

It is NOT a standard software product, it isspecifically designed by consulting and targeted to aparticular business need

There is a series of technology tools that supportthis objective

To better understand this, a new type of systemscategorization appears:

OLTP (Transactional) and OLAP (Analytical)


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What is BI?

Data Warehouse

Reporting

Data Mining

OLAP

ROLAPMOLAP

HOLAP

Analytics

DashboardsKey Performance Indicators

Analytics

Sales Intelligence

ETL

Online Analytical Processing Data Integration

KPIAlerting

RDBMS

Data MartMDM

EIS

ODS

SCD

Clustering

Time Series

Forecasting

Knowledge Discovery

Alerting


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Transactional Systems

OLTP Designed to solve everyda work

transactions (i.e. sales, customer care,

manufacturing)

Points where the data is captured andrecorded in the company

Very efficient in the management of specificinformation

ERP, CRM, RRHH, SCM, Email, Others


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Problems and Disadvantages

Relational Databases were designed for everydaywork and not for analysis

It is difficult to manage historical information

Data is distributed among multiple systems anddatabases. How and where do you gather all of the

systems data?

To extract information from data you need knowledgeof non-trivial skills (programming or SQL language)

and is not a dynamic process


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Analytical Systems

OLAP OLTP Systems complement

Designed specifically to obtain information, analyze

and solve business problems

Specific analytical information is added to the data

They use a different database technology, optimized toextract information.

Analytical systems unify all of the companys data inone system: the Data Warehouse


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What is a Data Warehouse?

Is a digital warehouse with all of the electronicregistered data in a company

They store all of the companys information:

daily and historical data

They gather heterogeneous information sourcesin one centralized space

It is used for reporting, data analysis andexploration, to see and detect changes andtendencies

Only two operations exist: load and query


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Data Warehouse or

Data Mart? A Data Warehouse contains all of the

companys information (wide scope, higher risk

project)

A Data Mart is targeted to solve onecompanys department needs in particular

(limited scope, lower risk project)

The Data Warehouse can be built joiningmultiple specific Data Marts


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DWh Objectives

Must allow easy access to the companysinformation

Must present this information in a consistent way

Must be adaptable and change-resilient

Must be a safe store, protecting the companysinformation assets

Must support the decision making process

Must be accepted by the decision makers to besuccessful


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DWh Challenges

Has to unify the whole companys data model

Data latency Historical data storage

Data granularity

Speed and performance in queries

Independent of OLTP system changes


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How do we build a DWh?

ETL processes Extract the information fromtransactional systems, Transform this information and

they Load it into the data warehouse

The information is stored in multidimensionaldatabases

Information is ready to be used The systems to access information are easy to use,

you dont have to work at NASA!


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Dimensional Modelling (1)

This is what makes a Data Warehouse abusiness oriented database

Measures. Business Variables

Numerical values Sums, consolidations, arithmetic operations

Dimensions Texts

Filters


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Dimensional Modelling (2)

Facts

Product

Dimension

TimeDimension

Branch

Dimension

Date-ID

Day

Month

Year

Branch-ID

City

State

Country

Product-ID

SKU

Descri tionCategory

T e

Price

Date-ID

Product-IDBranch-ID

Total

Date-ID

# Products

# Tickets


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Why is it multidimensional?

A dimension is one ofthe edges of your

business

Customers Invoices

Orders

Quotes

Time

Activities

It is calledmultidimensionalbecause you can see

the information from

different edges atthe same time


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ETL Processes

Database

OLTP

Systems

ETL DataWarehouse InformationAccess

Extraction

Transformation

Loading


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Clients

Time

Pro

ducts

Josh Sarah AnnaJoe

JanF

eb

MarA

pr

P1

P2

780

967

967

540

P3

P4

Whats in a cube?


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Data Warehouse

Database Technology

MOLAP : Multi Dimensional ROLAP : Relational

HOLAP : Hybrid


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How do I see whats in

a DWh? OLAP Cubes

Reports Dashboards

KPIs - Key Performance Indicators

Alerts


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OLAP Cubes

They let you analyze all of the information availablein the Data Warehouse

Each cube stores a set of specific information, andcontains different measures and dimensions

Measures are numbers (i.e. amounts, quantities,percentages)

Dimensions contain attributes to filter and orderinformation

Several visualization tools: Excel, Reports, Web

S b


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Some cubes

Sales

Stock

Suppliers Orders

Accounting...

Human Resources...

Finances...

S l


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Sales Dimensions

Date / Time

Customer

Branch / Store

Product Discount

Measures

Quantity

Cost

Profit


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Stock / Inventory

Dimensions

Date / Time

Store / Branch

Product

Measures Qty / Price / Cost

S l


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Supply

Dimensions Date / Time

Supplier Product

Contract / Contract terms

Type of transactions

Measures

Qty / Amount / Cost

O d


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Orders

Dimensions Date / Time

Product

Customer

Salesperson

Terms of sale Measures

Qty / Amount / Discount


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Reports

These are the classic reports we already know

When your reports are built with data from theDWh, you can trust on a reliable data source

Historical data can be accessed too

You can build reports with data coming fromdifferent systems in the company

All of the reports are accessed from the samelocation


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Digital Dashboards

Is an information system similar to a cars

dashboard, designed to be easy to read Easy and visual information presented in a way

to help you detect and correct tendencies

Use them to align company strategies amongdepartments and global objectives


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Key Performance

Indicators KPI They measure specific items and help you

organize, define and evaluate your objectives SMART: Specific, Measurable, Achievable,

Relevant, Time-bound

Number of new Customers, Opportunity closingaverage time, Customer loss index


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Conclusions

OLTP systems to support everyday work andgive information to the company

OLAP systems to extract and analyzeinformation and to make decisions

Dashboards to concentrate information in a

centralized view

OLAP cubes to solve specific questions andfreely explore information


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Some Software Products

you might need

Microsoft SQL Server Analysis Services

Microstrategy

SAS

OpenSource Alternatives (Pentaho)


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The End?

Documents

Business Intelligence Presentation (Part 1 of 2)