Introduction to Business Intelligence

Introduction to Business Intelligence

1. What is BI?

   • 1) Combines architectures, tools, applications, and methodologies
   • 2) Transforms data, to information (and knowledge) to decisions, and finally to action
   • What is the objective?
     • Enable easy access to data (and models) for conducting analysis by business managers

2. The BI System

   • Enhanced with additional visualisations, alerts, and performance measurement capabilities (CPI)
     • Objective of BI System:
       • 1) To facilitate closing the gap between organisation's Current Performance and Desired Performance, as expressed in its mission, objectives, and goals, and the strategy to achieve them
       • 2) Provide right information at the right time and place

3. Business Pressure - Responses - Support Model

   • Business Pressures result of today's competitive business climate Eg. Customer Demand
   • Responses to overcome pressure Eg. Increased productivity
   • Support to better facilitate the process Eg. Analyses, Predictions, Decisions

4. Components in a BI Architecture

   • 1) Data Warehouse with its source data
     • Provide real-time decision support by accessing to current data
   • 2) Business Analytics
     • Tools for manipulating, mining, and analysing data in the data warehouse
   • 3) Business Performance Management (BPM)
     • Monitor and analyse performance to better manage operations
   • 4) User Interface (Dashboards)
     • A comprehensive graphical view of corporate performance measures, trends, and exceptions

5. Overview of Business Analytics

   • Process of developing actionable decisions or recommendations for actions based upon insights generated from historical data
     • 1) Descriptive Analytics
       • - What is happening in the organisation? Understanding primary trends and causes of such occurrences
     • 2) Predictive Analytics
       • What is likely to happen in the future based on statistical techniques?
     • 3) Prescriptive Analytics
       • To provide decision or recommendation for an action to achieve the best performance possible

6. OLTP vs OLAP

   • Online Transaction Processing (OLTP)
     • Handling updates (add/edit/delete) to operational database. Goal is to have high efficiency.
   • Online Analytic Processing (OLAP)
     • Extracting information from data stored by OLTP systems