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okay so today we're covering introduction to business intelligence
which is Chapter 1 of the Business Intelligence:
Managerial Approach book, which you should already have the book by now
and
the learning objectives for this chapter are basically
understanding turbulent business environments, how businesses survive
and excel in that evironment
need for computerized support
managerial decision making
and describe business intelligence
and how
to relate them to decision support systems, and then issues implementing business intelligence
okay
open vignette
goes into Northfolk Southern and how it uses BI decision support to reach success
basically it (Northfolk) is one of 4 large railroad companies
there's a changing competitive environment
so basically what they have to do is analyze data in order to
save time and improve efficiency
what it says are the result from that is that missed connections went down by
over 60%
and then employees were
more satisfied based on
new locations of field offices
and if you want to know about that you can read the case
but basically it is an example of how business intelligence improved
operations
so what is business intelligence
Business Intelligence refers to
the use of computers to
analyze complex information
and
basically analyze information both about
the organization and its competitors
for use in business planning and decision making
the objective is to enable easy access to data
to provide business managers with the ability to
conduct that analysis
is that used to be that
the data was stored in databases
that had to be accessed and it would take systems forever to go through that
data
so it was reorganized in a way that
through the business intelligence software you can analyze it much more quickly
basically
it was develop to be able to be analyzed
whereas before it was just
developed to be stored
now business intelligence helps to transform data into information
so in
MISY 3310 you should have learned that data
is your basic
builder to your information, it's your "source"
your numbers
your basic
information
but technically
according to the book information is more where you
analyze the data
and then you gain knowledge from that information through analysis
and then finally it leads to action
so just basically
remember business intelligence is the analysis of data using computers and
software
so basically the evolution of BI over time
let me make this a little bit
this shows different abilities that have been added
to the software... a lot of this we'll go over in subsequent chapters
some things we'll go over in this chapter like
online analytical processing (OLAP)
decision support systems, data marts, metadata
which tells you pretty much about the data
spreadsheets are you know are the original
information analysis tools
financial reporting
dashboards, scorecards
so a lot of this you'll learn as you go along. This is just an overview of what BI is
okay
architecture of business intelligence
so basically there are 4 major components within the BI system
there is a data warehouse, which is your source data
that's where your data is stored
there are business analytics which is a collection of tools
for manipulating, mining, and analyzing data
business performance management
for monitoring and analyzing performance
and then the interface you actually
access the data with
so a data warehouse is a database used for
reporting and data analysis
originally they only included historical data and now they actually include more
up-to-date and current information. Sometimes even in real-time
and we'll learn more about that in chapter two
okay business analytics, they help transform data into knowledge. Queries, mining tools
so basically data mining is the search for unknown relationships
in large databases
using intelligence tools
advanced statistical methods
you may have done something like this in Business Analysis (BUAL) but basically
you're looking for
relationships within the data
and like I said we're going to go more into that later
went too far
business performance management
it's also referred to as corporate performance management
basically
a portfolio of applications that
provides tools for enterprises to better manage their operations
so basically it has the analytical tools built in
and then the interface is again where you
can view the data. So you'll have like a dashboard
one example of a dashboard is the home page screen in Blackboard
You see where it has all these little boxes?
that's a dashboard
Youtube in Video Manager has a dashboard, it's where you basically have
different
areas that provide you with information based on your needs
okay
lost my place again
sorry about that
so styles of business intelligence
MicroStrategy, Corp. distinguishes five styles
report delivery and alerting,
you have enterprise reporting
and cube analysis you'll see in the OLAP slides
ad-hoc queries and statistics and data mining
that will be on page 12, you wanted to read more
it doesn't go into it a whole lot because it is covered more in Chapter 2
just note how it says here these (enterprise) are dashboards and scorecards
the slice-and-dice analysis
and then
reports, you've seen reports, and then queries
and we will do queries in this course
so the benefits of business intelligence
it provides accurate information
when it's needed, and in a real- time view (if needed)
a survey from...
let me see if I can get the full name for you
no it just says Thompson
basically what the survey found is these are how it (BI) improves
the business
so basically
the biggest improvement is accurate reporting
but then there is also improved decision making, customer service, and increased
revenue
which
this can be skewed because you often don't see benefits right away
you see them more in the long term
okay
so there is a table on page 13 which will give you a
view of some of the analytical applications,
business questions they answer, and the business value they bring
for example there is the Customer Profitability
"What is the lifetime profitability of my customer?" is the business question
and then
make individual
business interaction
decisions based on overall profitability of customers
basically it allows you to
see who your most profitable customers are
so you would be able to target them
if you want to review that more it's on page 13
okay
just going to give you an overview of this (ADS) since it applies to the
next slide
automated decision systems (ADS) basically will be systems that provide a solution to
a repetitive managerial problem
like a simple loan approval system
where you can go in and apply for a loan
it'll approve you on the spot, you don't have to go and talk to anyone
it they need more information it will pop back and say you need to speak to a representative
so highly structured decisions. Decisions that don't need a lot of
"on-the-minute" decisions so you know where it would need someone to look at it
and then if they do like I said before they can have you come in if needed
okay
that leads us to event-driven alerts
they are a type of ADS (Automated Decision System)
basically what they are...say a credit card company
maybe someone is using your card in China
if you didn't authorize it would come up with an error
maybe like it says there (slide)
"identify cases of possible fraud..." so maybe someone has spent
$1000 worth on electronics
you may not usually spend that much at one time, things like that
you may have decided on those alerts yourself, maybe
it asked you at what balance
you should get a warning at
or what purchase amount you should get a warning about
those are event-driven alert systems
so transaction processing versus analytic processing
sorry, a bit tongue tied today
so basically
traditionally databases operated in transactions
you know, when you presenting and it populates the database
and there were problems with that because that's more
operationally based you know it's
it's good for knowing day-to-day
when they went back and tried to do reports they just would hit a "wall"
there were just things
like compatibility issues between tables, between data
maybe the way the data was 'grabbed' wasn't
efficient
it might take a lot of time, just a lot of things
essentially that was online
transactional processing (OLTP)
which is basically
data entry, retrieval, transaction processing
basically that leads to online analytical processes (OLAP). It started with
online transactional processing
basically just
processing transactions online
they could be done in a store where they are
processed online and
stored online
but that lead to
the development of
online analytical processing
which essentially is designed to be online
and was reorganized in such at way that it was fast and efficient
and it provided a
fast and efficient process for querying, analysis, and decision support
so what that means is what I said before, they had to redesign the
databases a bit to support
analysis
that's where online
analytical processing comes in, or OLAP
enables the user to query the system on their computer
to conduct analysis. They don't have to go plug a laptop into the
database and try and scan the data. They don't have to wade through a
server to access the database. I can just get on the computer
it says they use a multidimensional data model
so you can get complex analytics and
ad-hoc queries within a rapid execution time
and we will discuss that later as well
and again the main goal is effectiveness
try to understand the difference between these two (OLTP and OLAP)
on the other slides I mentioned
Introduction to Online Analytical Processing (OLAP)
basically
this is the main part you want to get from this long paragraph
it's basically a category of software technology
that enables analysts, managers, and executives to gain insight into data
through fast, consistent, interactive access to a wide variety of possible views of
information
that has been transformed from raw data to reflect the real dimensionality of the enterprise
basically you get an insight into data
through
interactive access to a wide variety of possible views
basically accessing data in a lot of different ways, you may have a dashboard
maybe a chart and graph
maybe a table
where it is sorting things based on what you want to see. Just different ways of viewing
information
now kinds of OLAP are
ROLAP
relational OLAP using relational databases, star schema
and you can read some of this if you want (slide notes), there is more information on those
it has some good information there
and then
MOLAP
DOLAP
and then other variations. We may not go into these but it's good to know what they
are
in case you do see them
this is the desktop version and this is the multi-dimensional version
and they're just different versions
here's an example
there's an a automobile marketer who want to improve his business activity
therefore he wants to use sales figure from different perspectives
he wants to view
the model
which dealership it came from, what color it was, and the sales amount
over time
if you did this by hand it would take a long time. Using software
really cuts down on the time
now this kinda model
never been a fan of it. They want to give a 3D view to the information
essentially the way you look at it is you can't just go
"model, what color is it?"
they want to know
sales volume over time and what dealership it was from
when you go into a table you'll something more like
product over here, color,
dealership
sales volume. So you'd have a table to view
this is just kind of three-dimensional model
some students like this a little better
that's the cube model I mentioned before
now this is where you can pull out a specific piece
so basically
you can go into say your table
and tell it
you only want a specific
bit of information and i will only show you that
and then
different users will require different views
that's telling you that you want
an analysis where you can go in and change it to see what you want to see
as in the information you need
and like I said there is text down here if you want to read it
okay back to the other PowerPoint
just some slides on successfully implementing a business analysis system
basically it's expensive and risky so you want to make sure that you cover all your basis
before you actually implement
it's measured by its widespread usage for better decision making
typically BI user communities include all levels. It used to just be
executive information systems for top management
now it could be any level. You could have the
plant manager that needs to use it
so you basically need to provide what is needed
to whom it is needed, when it is needed
okay
so it should benefit the enterprise as a whole
it needs to be aligned with the company's business strategy
it shouldn't be just a technical exercise
for IT
changes the way a business conducts its
operations
improving business processes and transforming decision making
and it should not be an impediment to the business strategy
Business tools
that is on
a table on page 22
that's where a lot of this comes from, database management system
extraction, transformation, and load systems. Data warehouses, data marts
have to do with data
management
Data Management will be in Chapter 2
reporting
visualization
and strategy performance management will be in Chapter 3
Business Analytics will be Chapters 4 and 5 and these will be chapter 6
we won't actually go into those but you can read the chapter if you would like
you can go over these in the table for now to see what's included
but we'll get into them more in depth in later chapters
vendors of BI have been changing
companies buy out each other, they merge, they form partnerships
IBM acquired Cognos
they were a business intelligence software company
and IBM also acquired SPSS
Oracle bought Hyperion
SAP bought Business Objects, which is you know SAP Business Objects
Microstrategy is one of the only large independent BI vendors
and then there are others. Teradata we're actually going to use in this class
and then here are some examples of BI resources if you want to look through
these. You can get some information on OLAP here
business intelligence network
the one we'll use though is Teradata and you'll do that in assignments
well that's an overview for Chapter 1
be sure to review this study guide
you can find the study guide in the Chapter
area
there will be study guides for each chapter, be sure to review them while
you review the book
you'll see here (study guide) it will tell you page numbers and what you should get from the chapter
and that's it for Chapter 1!