Business Intelligence 101

Randy Archambault Manager Business Intelligence and Reporting Palm Beach Tan

Components of Success
SSRS Webfocus Oracle Business Objects

11 Years

Platforms

Experience

Industries

Education

Hospitality Insurance Retail

EMIS at SMU

Business Intelligence 101

What is Business Intelligence

Business Intelligence (BI) is about

getting the right information, to the right decision makers, at the right time. BI is an enterprise-wide platform that supports reporting, analysis and decision making. BI leads to:
fact-based decision making
single version of the truth

Business Intelligence 101

What is Business Intelligence

Making useful, actionable insight from

stored data. Allows effective business decisions to be made. The act of using historical data to gain new information. Techniques include:

multidimensional analyses mathematical projection modeling ad-hoc queries 'canned' reporting Dashboards

Questions BI is Designed to Answer

What happened?

Past

What is happening? Why did it happen? What will happen? What do I want to happen?

Present
Future

Data

ERP

CRM

SCM

3Pty

Black books
5

Questions BI is Designed to Answer

A BI solution, with the right data and features,

should be able to take operational data and enable users to answer specific questions such as:
Sales and marketing Which customers should I target? What has caused the change in my pipeline? Which are my most profitable campaigns per region? Did store sales spike when we advertised in the local paper or launched an email campaign? What is the most profitable source of sales leads and how has that changed over time?

Questions BI is Designed to Answer

Operational
Which vendors are best at delivering on time and on budget? How

many additional personnel do we need to add per store during the holidays? Which order processing processes are most inefficient?

Financial
What is the fully loaded cost of new products? What is the expected annual profit/loss based on current marketing and

sales forecasts? How are forecasts trending against the annual plan? What are the current trends in cash flow, accounts payable and accounts receivable and how do they compare with plan?
Overall business performance

What are the most important risk factors impacting the companys ability to meet annual profit goals? Should we expand internationally and, if so, which geographic areas should we first target?

Business Intelligence Vision

Improving organizations by providing business insights to all employees leading to better, faster, more relevant decisions
Advanced Analytics Self Service Reporting End-User Analysis Business Performance Management Operational Applications
Embedded Analytics
8

Examples of BI

IBM Model

1958

Examples of BI

Microsoft BI Platform

10

Business Intelligence Users

4 Types of Users
Executives : Information is summarized and has

been defined for them. Users have the ability to view static information online and/or print to a local printer. Casual Users Casual users require the next level of detail from the information that is provided to viewers. In addition to the privileges of a viewer, casual users have the ability to refresh report information and the ability to enter desired information parameters for the purposes of performing high-level research and analysis. Functional Users Functional users need to perform detailed research and analysis, which requires access to transactional data. In addition to the privileges of a casual user, functional users have the ability to develop their own ad hoc queries and perform OLAP analysis. Super Users Super users have a strong understanding of both the business and technology to access and analyze transactional data. They have full privileges to explore and analyze the data with the BI applications available to them.

Business Intelligence 101

Garbage in Garbage Out

Transform data in to actionable insight.

Information Access Strategies

Adhoc

Data Mining

Standard Reports

Exception Based Reports

Olap and Drilldown

The Five Stages of BI

BI involves five stages of taking raw data and presenting it as relevant, actionable insight to users.

The 5 Stages of Business Intelligence

1.The Data: defining which data will be loaded

into the system and analyzed.

Where all information is stored Technology dependent MSSQL, MYSQL, Oracle, Red Brick, DB2 Often an OLAP type data source Many rows of often summarized data Utilize database queries to retrieve data from the

source.
SQL MSSQL and MYSQL
PL/SQL Oracle

The 5 Stages of Business Intelligence

OLTP

Online Transaction processing Typically not your reporting database. Processes transactions fast for application Example
Retail POS system Web Site

Online Transaction Processing has two key benefits: Simplicity efficiency

OLAP

Online Analytical Processing Used for reporting May form base of data warehouse or BI tools Not used for transaction processing. Databases configured for OLAP use a multidimensional data model, allowing for complex analytical and ad-hoc queries with a rapid execution time

The 5 Stages of Business Intelligence

2.The ETL (Extract, Transform, and Load) Engine:

moving the source data to the Data Warehouse.

This can be a complex step involving modifications and

calculations on the data itself. If this step doesnt work properly, the BI solution simply cannot be effective.
3.Data Warehousing:
connects electronic data from different operational

systems so that the data can be queried and analyzed over time for business decision making. A data warehouse is an analytically oriented, integrated, time-variant, and nonvolatile collection of data that supports decision making processes Large databases that aggregate data collected from multiple sources

The 5 Stages of Business Intelligence

4.Analytic Engine:
analyzes multidimensional data sets found in a data

warehouse to identify trends, outliers, and patterns. Data Mining

is the process of extracting patterns from data. Data mining is

becoming an increasingly important tool to transform this data into information. It is commonly used in a wide range of profiling practices, such as marketing, surveillance, fraud detection and scientific discovery. Data mining can be used to uncover patterns in data but is often carried out only on samples of data. The mining process will be ineffective if the samples are not a good representation of the larger body of data. Data mining cannot discover patterns that may be present in the larger body of data if those patterns are not present in the sample being "mined".

The 5 Stages of Business Intelligence

5.Presentation Layer:
the dashboards, reports and alerts that present

findings from the analysis. Typically Technology Agnostic The presentation layer is for the user.
It does not care
How? When ? Where?

Why?
the user accesses the Information just that it is available.

The 5 Stages of Business Intelligence

5.Presentation Layer:
Interactive Dashboards: A dashboard is a set of high-level reports on key metrics, typically for managers. There may be multiple reports on a single dashboard, much the same way that a cars dashboard has multiple gauges and displays on it. With a dashboard, users can gain an at-a-glance understanding of key trends and metrics. Dashboards can be customizable to work for anyone in an organization, from a sales rep or frontline operations manager to a middle manager or senior executive. An interactive dashboard allows users to take those dashboard reports and filter information to more deeply analyze trends and results, or to drill down into deeper and more detailed analysis of the data. That is, by clicking on the particular reports or results, they can explore more detailed information to find root causes of results.

The 5 Stages of Business Intelligence

5.Presentation Layer:
Customizable Reports: which can present high-level findings as well as enable a user to drill down to find specific details. Most BI systems either come with report templates and/or provide the capability to create and customize reports.

Alerts: notifying users to changes selected as key to meeting user goals. Alerts can be set to warn users on an imminent event, changes to data, or that new data needs to be entered into the system.

The 5 Stages of Business Intelligence

Microstrategy

Cognos
Oracle OBIEE Microsoft SQL BI Suite SAP Business Objects Pentaho Open Source Alternative

A Retail Example
Palm Beach Tan Online Reporting Portal

Franchise Performance Report

Store ALA Store 1 2 3 4 5 6 7 8 Tans 1,436 1,479 1,824 1,925 522 1,144 3,447 1,434 New Customers 70 75 82 106 33 52 102 73 New Efts 53 51 65 66 29 57 73 38 Up Sell % 75.70% 68% 79.30% 62.30% 87.90% 109.60% 71.60% 52.10% Revenue $8,933 $8,011 $10,312 $10,223 $3,793 $7,868 $12,261 $7,746 PTA $6.22 $5.42 $5.65 $5.31 $7.27 $6.88 $3.56 $5.40 PRA $2.22 $2.26 $1.98 $1.50 $2.03 $2.18 $1.74 $2.15 Mystic PRA $0.45 $0.40 $0.89 $0.36 $0.68 $0.34 $0.26 $0.95

Daily Snapshot 12 pm, 3 pm, 6 pm and 9 pm

Daily Snapshot

TOTALTANS Store Rev PTA Retail Rev PRA

7,340 $40,851.80 $5.57 $18,561.02 $2.53

Behind The Scenes

A Retail Example

Data Mining Example in use

Product Decision Matrix

Customer Cancelation Prediction Engine Early

EFT Cancelation EFT Geographic Demographic Process. Revenue Per Bed

DSS vs Data Mining

Conclusion
Business Intelligence solutions make it possible

for groups within organizations to gain actionable insight from business data, and to leverage these insights to meet critical goals. Business intelligence solutions offer businessfocused analysis at a scale, complexity, and speed that is not achievable with basic operational systems reporting or spreadsheet analysis, thereby delivering significant value.

QUESTIONS