Business IntelligenceBusiness IntelligenceIntroduction & OverviewIntroduction & Overview

What is Business IntelligenceWhat is Business Intelligence

MonitoringMonitoringDashboards, scorecards and alerts

AnalyzingAnalyzingDrill down, exception reports, root-cause analysis, multidimensional analysis

ReportingReportingDetailed operational data

Sharing standardized reports

PlanningPlanningCreate plans, models and scenarios, which are then fed back into the monitoring layer and encoded as targets and thresholds.

“No matter where you start, you should be able to move up and down layers seamlessly without awkward context shifts to gather insights, take action and optimize performance” - TDWI

““A broad category of applications and technologies for gathering, storing, analyzing, A broad category of applications and technologies for gathering, storing, analyzing, sharing andsharing and providing accessproviding access to datato data to help enterprise users make better business to help enterprise users make better business decisionsdecisions”” - Gartner- Gartner

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BI Defined: Information Driving BI Defined: Information Driving Organizational PerformanceOrganizational Performance

Business intelligence Business intelligence

is an umbrella term foris an umbrella term for • Applications Applications

• Infrastructure, Infrastructure, platforms, tools platforms, tools

• Best practices Best practices

which enable the analysis of which enable the analysis of information in order to information in order to optimize decisions and optimize decisions and manage performance.manage performance. Information

Performance

Decisions

Analysis

What Questions can BI answer?What Questions can BI answer?

Where are we?Where are we? What were our sales this month?What were our sales this month?

Where are we going?Where are we going? Are our sales trending up or down?Are our sales trending up or down?

Why is this happening?Why is this happening? Why are sales going down?Why are sales going down?

What is going to happen in the future?What is going to happen in the future? Forecasting / What If analysisForecasting / What If analysis

How can I plan for the future?How can I plan for the future? Planning / Goal SettingPlanning / Goal Setting

Where is BI utilized?Where is BI utilized?

OperationsOperations

ERP Reporting/AnalysisERP Reporting/Analysis KPI trackingKPI tracking Maximizing profitsMaximizing profits Risk ManagementRisk Management Activity Based CostingActivity Based Costing LogisticsLogistics

Customer RelationshipsCustomer Relationships

Sales forecastingSales forecasting SegmentationSegmentation Cross-sellingCross-selling CRM analysisCRM analysis Campaign planningCampaign planning Customer profitabilityCustomer profitability

The Simple Business Intelligence The Simple Business Intelligence ModelModel

Collect data using a wide variety of sources and Collect data using a wide variety of sources and formatsformats

Organize information (and resources) for multiple Organize information (and resources) for multiple uses and usersuses and users

Judge the value (of information and resources)Judge the value (of information and resources) Assist in the analysis process by determining the Assist in the analysis process by determining the

pertinence, reliability, and validity of information pertinence, reliability, and validity of information gatheredgathered

Disseminate Disseminate informationinformation, but communicate , but communicate intelligenceintelligence that leads to ACTION that leads to ACTION Weigh the options; consider the alternativesWeigh the options; consider the alternatives

Business Intelligence (BI)Business Intelligence (BI)

Time savings Time savings Single version of truth Single version of truth Improved strategies Improved strategies

and plans and plans Improved tactical Improved tactical

decisionsdecisions More efficient More efficient

processes processes Cost savingsCost savings

Faster, more accurate Faster, more accurate reporting reporting

Improved decision Improved decision making making

Improved customer Improved customer service service

Increased revenueIncreased revenue

The Benefits of BI

8

Main BI TopicsMain BI Topics Data warehousing – Making historical data available for

analytics Data preparation – Extraction, transformation and loading Query - a collection of specifications that enables you to

focus on a particular set of data. Online Analytical Processing (OLAP) - a capability of

information systems that supports interactive examination of large amounts of data from many perspectives.

Reporting - generates aggregated views of data to keep the management informed about the state of their business.

Data mining - extraction of knowledge by utilizing software that can isolate and identify previously unknown patterns or trends in large amounts of data.

Business Intelligence Business Intelligence

BI Users

Executives

Managers

OperatorsData

BusinessEnvironment DecisionsData

Business Analytics

BI Applications:- Data warehousing-Data mining- BPM- OLAP- etc.

1010

BI Product ProvidersBI Product Providers

MicrosoftMicrosoft SASSAS IBM / SPSSIBM / SPSS OracleOracle SyBaseSyBase Business ObjectsBusiness Objects

The Different Users of Business The Different Users of Business IntelligenceIntelligence

There are many different users who can benefit from There are many different users who can benefit from business intelligencebusiness intelligence Executives – Those who focus on the overall businessExecutives – Those who focus on the overall business Business Decision Makers – Usually focused on single Business Decision Makers – Usually focused on single

areas of the business (finance, HR, manufacturing, and areas of the business (finance, HR, manufacturing, and so forth)so forth)

Information Workers – Typically managers or staff Information Workers – Typically managers or staff working in the back officeworking in the back office

Line Workers – Employees who might use BI without Line Workers – Employees who might use BI without knowing itknowing it

Analysts – Employees who will perform extensive data Analysts – Employees who will perform extensive data analysisanalysis

Business ScorecardsBusiness Scorecards

• This screenshot shows a couple of simple scorecards.

• Scorecards can contain KPIs that can be expanded or collapsed, and they can contain different indicators to show the strength or health of a KPI.

• These scorecards can also be filtered to narrow down products, regions of the world, and so forth.

The Purpose of a Scorecard The Purpose of a Scorecard A scorecard should give an executive a visual

representation of the health of an organization in a single glance

The scorecard is of sufficiently high level to represent major business operations and their goals

The data in a scorecard should be as recent as possible to make them more actionable

What is a Balanced Scorecard?What is a Balanced Scorecard?

A method of measuring activities and outcomes

for effective performance management

A method of measuring activities and outcomes

for effective performance management

Activity & Outcome MeasuresActivity & Outcome Measures

Activity MeasuresActivity Measures Internal Business Process PerspectiveInternal Business Process Perspective Learning and Growth PerspectiveLearning and Growth Perspective

Outcome MeasuresOutcome Measures Customer PerspectiveCustomer Perspective Financial PerspectiveFinancial Perspective

Balanced Scorecard Performance MeasuresBalanced Scorecard Performance Measures

Customer Perspective

New Hire Termination %Quality of Hire

Cycle Time to HireVoluntary Turnover %

Employee Satisfaction Score

Financial Perspective

Non-productive Labor Cost %Average Cost per Claim

Cost per HireHR Expenses per 100 FTEAccrual Liability per FTE

Overtime Pay RatioBonus Ratio %

OU

TC

OM

E M

EA

SU

RE

S

What are the Challenges?What are the Challenges? Identifying which performance measures are Identifying which performance measures are

relevant for each scorecard recipientrelevant for each scorecard recipient Balancing the weight applied to each measure in Balancing the weight applied to each measure in

proportion to overall performanceproportion to overall performance Compiling and staging the source dataCompiling and staging the source data Designing a dynamic architecture to minimize Designing a dynamic architecture to minimize

maintenance efforts and maximize flexibility and maintenance efforts and maximize flexibility and performanceperformance

Securely deploying the scorecards in a large Securely deploying the scorecards in a large enterprise environmententerprise environment

Balanced Scorecard Data ModelBalanced Scorecard Data Model

INFORMATICA POWERCENTER (ETL)Performance Measure Calculation at all Levels of Aggregation

INFORMATICA POWERCENTER (ETL)Performance Measure Allocation and Distribution

Balanced Scorecard Data Model

INFORMATICA POWERCENTER (ETL)Base Measure Sourcing and Aggregation

Staging Model- Current Fully Aggregated

Data Store

BSC_REPORTING

PK,FK5 POSITION_IDPK,FK1 EOM_DATEPK,FK2 MEASURE_IDPK,FK3 USER_IDPK,FK4 CHILD_USER_IDPK,FK6 ORG_UNIT_IDPK,FK7 CHILD_ORG_UNIT_ID

CHILD_RELATIVE_LEVELCHILD_ABSOLUTE_LEVELORG_UNIT_RELATION_TYPEACTUAL_VALUETARGET_VALUELOW_THRESHOLDHIGH_THRESHOLDWEIGHTRESULT_SCORE

BSC_DATE

PK EOM_DATE

MONTH_NUMMONTH_NAMEQUARTER_NUMQUARTER_NAMEYEAR_NUM

ORG_UNIT

PK ORG_UNIT_ID

ORG_UNIT_NAME

USER

PK USER_ID

USER_NAME

POSITION

PK POSITION_ID

POSITION_NAME

MEASURE

PK MEASURE_ID

MEASURE_NAMEMEASURE_GROUP_IDMEASURE_GROUP

CHILD_USER

PK CHILD_USER_ID

CHILD_USER_NAME

CHILD_POSITION

PK CHILD_POSITION_ID

CHILD_POSITION_NAME

CHILD_ORG_UNIT

PK CHILD_ORG_UNIT_ID

CHILD_ORG_UNIT_NAME

POWER ANALYZER

ERP GL Budget

CRM SCM HRMS Other

ScorecardControls

Scorecard DataCapture Apps

Pre-Staging Model- Historical Partially Aggregated

Data Store

Balanced Scorecard Model- Pre-calculated and aggregated

for all scorecard recipients

Note: This model is a simplified conceptual model only.

Extract, Transform & LoadBase Measure Sourcing and Aggregation

Extract, Transform & LoadPerformance Measure Calculation at all Levels of Aggregation

Extract, Transform & LoadPerformance Measure Allocation and Distribution

Business Intelligence Software

Balanced Scorecard Data Model

Note: This model is a simplified conceptual model only.

Deployment ConsiderationsDeployment Considerations Easy to navigate web-based interfaceEasy to navigate web-based interface Drill down, through or across the dataDrill down, through or across the data Restrict data access by userRestrict data access by user Facilitate minimal report maintenance (data Facilitate minimal report maintenance (data

driven)driven) Alerting – when thresholds are crossedAlerting – when thresholds are crossed Indicators – performance ‘at a glance’Indicators – performance ‘at a glance’ Must be able to explore subordinate’s Must be able to explore subordinate’s

performance levelperformance level

The Contents of a ScorecardThe Contents of a Scorecard Scorecards usually contain some or all of the Scorecards usually contain some or all of the

following elements:following elements: Key Performance Indicators (KPIs)Key Performance Indicators (KPIs) KPI actual values compared to historical values KPI actual values compared to historical values

(for trend analysis)(for trend analysis) KPI actual values compared to a forecast or KPI actual values compared to a forecast or

budget amountbudget amount Rankings of different departments, locations, Rankings of different departments, locations,

products, and so forthproducts, and so forth

BI SuccessesBI Successes Continental Airlines consolidated several customer

databases into a single, strategic data warehouse and BI initiative that helped it become first in its industry for customer service. Its example demonstrates how companies can achieve competitive advantage.

UniCredit took a leading role in a new credit portfolio management market, thanks to a BI solution. This included an integrated data warehouse, risk modeling, rule-based warnings and an interactive reporting portal.

The Richmond Police Department in Virginia deployed a variety of analytical and predictive tools to determine likely areas of criminal activity so that officers could be proactively deployed to deter crime, rather than reactively respond to criminal activity.

Other BI applications: Other BI applications: To Store & Analyze Data Data Mining, Framing & WarehousingData Mining, Framing & Warehousing (DSS) and Forecasting (DSS) and Forecasting Document Warehouse & ManagementDocument Warehouse & Management Knowledge ManagementKnowledge Management Mapping, Mapping, Information Visualisation and Dashboarding; Information Visualisation and Dashboarding; Management Information System (MIS);Management Information System (MIS); Geographic Information System (GIS); Geographic Information System (GIS); Trend Analysis; Trend Analysis; Software As A Service (SaaS) Software As A Service (SaaS) Business Intelligence offerings (On Demand)Business Intelligence offerings (On Demand) Online Analytical Processing (OLAP) and Online Analytical Processing (OLAP) and Multidimensional analysisMultidimensional analysis sometimes called "Analytics“ (based on the "hypercube" or "cube"); sometimes called "Analytics“ (based on the "hypercube" or "cube"); Real Time Business IntelligenceReal Time Business Intelligence Statistics and Technical Data AnalysisStatistics and Technical Data Analysis Web Mining, Text Mining and Web Mining, Text Mining and Systems IntelligenceSystems Intelligence

Other BI applications are used Other BI applications are used to analyze or manage the to analyze or manage the

"human" side of businesses"human" side of businesses, ,

Customer Relationship Customer Relationship Management (CRM)Management (CRM)

Marketing ToolsMarketing Tools

Human Resources Human Resources applications.applications.

Web PersonalisatiuonWeb Personalisatiuon

Conclusion: Conclusion: Business Intelligence Today and Business Intelligence Today and

TomorrowTomorrow Today’s organizations are deriving more value from BI Today’s organizations are deriving more value from BI

by extending actionable information to many types of by extending actionable information to many types of employees, maximizing the use of existing data assetsemployees, maximizing the use of existing data assets

Visualization tools including dashboards are used by Visualization tools including dashboards are used by producers, retailers, governments, and special agenciesproducers, retailers, governments, and special agencies

More and more industry-specific analytical tools will flood More and more industry-specific analytical tools will flood the market to perform almost any kind of analysis and to the market to perform almost any kind of analysis and to facilitate informed decision making from the top level to facilitate informed decision making from the top level to the user levelthe user level

A potential trend involving BI is its possible A potential trend involving BI is its possible merger with merger with artificial intelligence artificial intelligence (AI)(AI)

BI ApplicationsBI Applications

Fraud detectionFraud detectionClickstream MiningClickstream MiningMarket SegmentationMarket SegmentationRetailRetailTelecommunicationTelecommunicationBanking& FinanceBanking& FinanceCRMCRM

BI system at Hero MotoCorpBI system at Hero MotoCorp

AnalyticsAnalytics DashboardsDashboards Decision support Decision support

systemssystems Online analytical Online analytical

processingprocessing Querying and Querying and

reportingreporting What-if analysisWhat-if analysis

Top managementTop management Finance and accountsFinance and accounts Human resourcesHuman resources Manufacturing / Manufacturing /

productionproduction Customer supportCustomer support MarketingMarketing SalesSales Information technologyInformation technology

BenefitsBenefitsAligned analysis with business Aligned analysis with business

objectives:objectives:Centralized information generationCentralized information generationReal time data analysis: Real time data analysis: BI has facilitated BI has facilitated

real time updates about critical business real time updates about critical business factors like sales for two wheelers, factors like sales for two wheelers, production, inventory analysis, etc. production, inventory analysis, etc. 

One version of the truth:One version of the truth:What-if analysis:What-if analysis:

M&M Product MixM&M Product Mix

Analytics, Dashboards, Decision support systems, Querying Analytics, Dashboards, Decision support systems, Querying and reportingand reporting

With BI, accurate and timely information has become With BI, accurate and timely information has become available to Mahindra & Mahindra helping it reduce available to Mahindra & Mahindra helping it reduce reconciliations and better manage the billing process. This reconciliations and better manage the billing process. This has led to quicker payments and a reduction in account has led to quicker payments and a reduction in account receivables.receivables.

Analysis of data from sales, production and inventory data Analysis of data from sales, production and inventory data using BO Explorer has helped it improve its product mix.using BO Explorer has helped it improve its product mix.

BI has also enabled Mahindra & Mahindra to fulfill orders on BI has also enabled Mahindra & Mahindra to fulfill orders on time, thus increase its sales.time, thus increase its sales.

Improved visibility across locations has led to reduction in Improved visibility across locations has led to reduction in inventory and inventory carrying cost.inventory and inventory carrying cost.

Shoppers StopShoppers Stop With BI, Shoppers Stop is able to target micro-segments to ensure With BI, Shoppers Stop is able to target micro-segments to ensure

incremental business through promotions and messages sent to incremental business through promotions and messages sent to its customers. This has also helped the retailer to reduce inventory its customers. This has also helped the retailer to reduce inventory and still offer the customer what he wants by optimizing the and still offer the customer what he wants by optimizing the merchandise mix.merchandise mix.

The company analyzes the profiles of its stores located in the The company analyzes the profiles of its stores located in the cities with similar demographic spread to create new stores at new cities with similar demographic spread to create new stores at new locations. This analysis ensures that stories opened in the new locations. This analysis ensures that stories opened in the new cities have a higher probability of success.cities have a higher probability of success.

Monitoring sales patterns across stores helps the operations Monitoring sales patterns across stores helps the operations teams to tactically change store layouts or of the displayed teams to tactically change store layouts or of the displayed merchandise to attract customers.  The same feedback helps the merchandise to attract customers.  The same feedback helps the back office planners in adjusting flow of merchandise to the back office planners in adjusting flow of merchandise to the stores.stores.

BI has also helped Shoppers Stop to grow its online retail and BI has also helped Shoppers Stop to grow its online retail and improve the flow of referrals. improve the flow of referrals.