Business Intelligence

Business Intelligence

1. Introduction to Business Intelligence (BI)

   • WHAT?
     • it consist of architectures, tools, databases, analytical tools, applications and methodologies to transform data to information to decisions and to actions.
   • WHY?
     • To facilitate closing the gap between current and the desired performance of the organization.
   • COMPONENT OF BI
     • Data Warehouse
     • Business Analyitics
     • Business Performance Management
     • User Interface
   • OLAP vs. OLTP
     • OLAP
       • Analytic Processing: extracting information from OLTP DB
         • Decision Making
       • Effectiveness
     • OTLP
       • Transaction Processing : involves in handing updates
       • Efficiency
   • IMPLEMENTATION
     • Successful
       • Real time, on-demand in agile evironment
       • User Community in Place
       • Align with Business Strategy
     • Issues
       • Develop or Acquire?
       • Security vs. Privacy
       • Cost vs. Benifits
       • Integration of Systems and Applications
   • OVERVIEW OF ANALYTICS
     • Descriptive : causes and trends
     • Prescriptive: Recommendations and Decisions
     • Predictive: Statistical and data mining

2. Data Warehousing (DW)

   • WHAT?
     • Phyiscal Repository where relational data are specially organized to provde enterprise-wide, cleansed data in a standardized format
   • Characteristics of DW
     • Real-Time
     • Relational/ Multidimensional
     • Summarized
     • Nonvolatile
     • Web based
     • Client/Server
     • Metadata
     • Subject-Oriented
     • Integrated
     • Time-Variant
   • Types of DW
     • Enterprise Data Warehouse: Large scale DW, shared across
     • Operational Data Stores: Holding area for DW
     • Data Marts: Focus on departments
       • Dependent
       • Independent
   • DW Architecture
     • 2 tier
     • 3 tier
   • ETL Process
     • Extract
     • Transform
     • Load
   • Multidimensional Representation of Data in DW
     • Star Schema
     • Snowflakes Schema
     • Constellation Schema
   • Slowly Changing Dimensions
     • Type 1 : don't track changes
     • Type 2: Track Changes
     • Type 3: Track current and original
   • OLAP Operations
     • Slice
     • Dice
     • Drill-Down / Up
     • Roll Up
     • Pivot
     • Drill-Through
   • Variations of OLAP
     • Multidimensional (MOLAP)
     • Relational (ROLAP)
     • Hybrid (HOLAP)
   • Steps in Designing DW
     • 1. Choose Data Mart
     • 2. Choose table granularity
     • 3. Identify and Confront Dimensions
     • 4. Choose Facts
     • 5. Store Pre-Calculations in Table
   • Designing a DW Fact table
   • Benefits of Hosted Warehouse
     • Free up cash flows, provide faster connection, better equipment and software

3. Business Performance Measurement (BPM)

   • WHAT?
     • Real time system that alerts managers to potential opportunities, impending problems and threats. The empower them to react through models and collaboration
       • also refers to business processes, methodologies, metircs and technologies used by enterprise to measure, monitor, and manage business performance.
   • Closed-loop Process
     • 1. Strategize
     • 2. Plan
       • Operational Planning
         • Tactic-centric
         • Budget-centric
     • 3. Monitor/Analyze
       • What to ? How to?
     • 4. Act/Adjust
   • Benefits
     • Improve Coordination
     • Improve Control
     • Improve Communication
   • Performance Measurement
     • Key Performance Indicator (KPI)
       • a strategic objective and metric that measures performance against a goal
     • 6 Sigma
       • aim to reduce the number of defects in a business process to as close to 0 defects per million opportunities as possible.
         • snapshot of the business performance & identifies the measures that drive performance towards probability.
         • designed to identify a set of measures to impact profitability.
         • leadership for wellness and profitability
         • balance management and employees' roles ; balance costs and revenue of heavy process
   • Strategic Management System
     • Balance Scorecard
       • holistic measurement system for aligning strategies with actions
       • BEFORE? Develop Strategic Foundation
         • Mission, Values, Vision
         • Environment Analysis
           • (External) PESTEL
             • Political
             • Economic
             • Social
             • Technical
             • Environment
             • Legal
           • (Internal and External) SWOT
             • Strengths
             • Weakness
             • Opportunities
             • Threats
           • (External) PORTER 5
             • Substitute Products
             • Entry of New Competitors
             • Competitive Rivalry
             • Consumer Bargaining Power
             • Supplier Bargaining Power
       • Perspectives (Applies to Strategy Map as well)
         • Financial
         • Customer
         • Internal (Process)
         • Learning & Growth
       • Strategic Theme
       • Columns
         • Objectives
         • Measures
           • Lagging
           • Leading
         • Targets
           • Historical data
           • Best practice surveys
           • Best estimates
         • Initiatives
     • Strategy Map
       • Visual representation of what execution team believes will drive its strategy