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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?
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