cisb594 – business intelligence business analytics and data visualization part i

CISB594 – Business IntelligenceCISB594 – Business Intelligence

Business Analytics Business Analytics and Data Visualization and Data Visualization

Part IPart I


ReferenceReference• Materials used in this presentation are extracted mainly from

the following texts, unless stated otherwise.


ObjectivesObjectivesAt the end of this lecture, you should be able to:• Describe business analytics (BA) and its importance to

organizations• List and briefly describe the major BA methods and

tools• Describe how online analytical processing (OLAP), data

visualization, and multidimensionality can improve decision making

• Describe advanced analysis methods



IntroductionIntroduction

• Many organizations have amassed vast amounts of data that employers can use to unlock valuable relationship to enable organization to compete and perform successfully

• Using analytical tools, organizations enable decision analysis through access to all relevant data and information


The Essentials of BA – Analytics : The science of analysis.

Business analytics (BA) • Provides the analysis procedures to BI, tracking data

and analyzing them for competitive advantage.• Broad category of applications and techniques for

gathering, storing and analyzing to help users make better business and strategic decisions

• Allows for automating the thinking for decision making

The Business Analytics (BA) : An The Business Analytics (BA) : An Overview Overview



Business analytics (BA) • Many tools can be used – the results will be presented in a

form of reports, predictions, alerts or graphical presentations• More advanced applications of BA includes financial

modeling, budgeting, resource allocation and competitive intelligence


Example :• An analytic application used for credit card scoring for a loan

application1. Calculate a credit worthiness score2. Automatically accept or deny the loan application3. Select the loan limit4. Select which credit card product/deal to suit the

applicant



The tools and techniques of BAThe tools and techniques of BA

Three major categories of BA analytic tools and techniques

1. Information and knowledge discovery2. Decision Support and Intelligent System3. Visualization

Illustrated in the following diagram

The Business Analytics (BA) Field: An The Business Analytics (BA) Field: An OverviewOverview


Vendors classify BA tools in several different ways.MicroStrategy’s classification of BA tools:

1. Enterprise reporting - used to generate highly formatted static reports meant for broad distribution to many people

2. Cube analysis – used to provide simple OLAP multidimensional slice and dice analytical capabilities to business managers

3. Ad hoc querying and analysis – used to allow power users to query a database for answers

4. Statistical analysis and data mining - statistical, mathematical and data mining tools are used to perform predictive analysis and to determine cause-and-effect correlations

5. Report delivery and alerting – report distribution engines to send full reports/alerts to internal/external users, based on subscriptions and schedules or threshold events

The Business Analytics (BA) Field: An Overview The Business Analytics (BA) Field: An Overview


Vendors classify BA tools in several different ways.SAP’s classification of strategic enterprise management

– Three levels of support1. Operational – SAP R/3 mainly supports transaction

processing on the operational level2. Managerial – middle managers can use SAP/R3 to

access all reports, arranged by functional areas3. Strategic - SAP SEM (Strategic Enterprise

Management)

The Business Analytics (BA) Field: An The Business Analytics (BA) Field: An Overview Overview


Major Capabilities of BA Tools• Drill-down

The investigation of information in detail (e.g., finding not only total sales but also sales by region, by product, or by salesperson).

• Ad Hoc AnalysisAnalysis made at any time, and with any desired factors and relationships

• Slicing and dicingRearranging data so that they can be viewed from different perspectives

• Exception ReportUsing reports to highlight deviation larger than threshold

The Business Analytics (BA) Field: An Overview The Business Analytics (BA) Field: An Overview


Online analytical processing (OLAP)• Variety of activities usually performed by users in online

system – usually involving generating and answering queries, requesting ad-hoc reports, conducting statistical analysis and building visual presentation

• An information system that enables the user, while at a PC, to query the system, conduct an analysis, and so on. The result is generated in seconds

Online Analytical Processing (OLAP) Online Analytical Processing (OLAP)


• OLAP versus OLTP – OLTP concentrates on processing repetitive transactions

in large quantities and conducting simple manipulations– OLAP involves examining many data items complex

relationships– OLAP may analyze relationships and look for patterns,

trends, and exceptions– OLAP is a direct decision support method

Online Analytical Processing (OLAPOnline Analytical Processing (OLAP))


• Types of OLAP – Multidimensional OLAP (MOLAP)

•OLAP implemented via a specialized multidimensional database (or data store). •It summarizes transactions into multidimensional views ahead of time•Data are organized into cube structure that users can rotate; particularly suitable for financial summaries



• Types of OLAP – Relational OLAP (ROLAP)– The implementation of an OLAP on top of an existing

relational database – Extracts data from relational database– Tends to be used on data that has a large number of attributes,

where it cannot be easily placed into a cube structure. Example, customer data as oppose to financial data.

– Web OLAP – accessible from Web Browser– Desktop OLAP – low priced, simple OLAP, performs local

analysis from database




Four types of processing that are performed by analysts in an organization:

1. Categorical analysis – static analysis based on historical data2. Exegetical analysis – also based on historical data, and it adds

the capability of drill-down analysis (ability to query further down into data to determine the detail data that were used to obtain the derived value)

3. Contemplative analysis – allows user to change a single value to determine its impact

4. Formulaic analysis - allows changes to multiple variables

•OLAP tools are designed to support all of the above activities


1. Multidimensional conceptual view for formulating queries

2. Transparency to the user3. Easy accessibility: batch and

online access4. Consistent reporting

performance5. Client/server architecture:

the use of distributed resources

6. Generic dimensionality

7. Dynamic sparse matrix handling

7. 8. Multiuser support rather than support for only a single user

8. 9. Unrestricted cross- dimensional operations

9. 10. Intuitive data manipulation

10. 11. Flexible reporting11. 12. Unlimited

dimensions and aggregation level

OLAP Products Evaluation Rules: Codd’s 12 Rules for OLAP


Reports and Queries Reports and Queries The oldest activities of OLAP and BI are using reports and queries.•ReportsReports

– Routine reports – Ad hoc (or on-demand) reports – Multilingual support – Scorecards and dashboards – Report delivery and alerting

• Report distribution through any touch point • Self-subscription as well as administrator-based

distribution • Delivery on-demand, on-schedule, or on-event • Automatic content personalization


Reports and Queries Reports and Queries • Ad hoc query

A query that cannot be determined prior to the moment the query is issued . User might need to place such a query after seeing a report


Multidimensionality Multidimensionality • MultidimensionalityMultidimensionality

– Raw and summary data can be organized in different ways for analysis and presentation

– The ability to organize, present, and analyze data by several dimensions, such as sales by region, by product, by salesperson, and by time (four dimensions)

• Three factors are considered in multidimensional Three factors are considered in multidimensional presentationpresentation – Dimensions – products, salespeople, business units– Measures - money, sales, sales volumes, head count– Time – daily, weekly, monthly, quarterly


How multidimensionality worksHow multidimensionality works

A manager wants to know the sales of a product (by unit or dollar) in a certain geographic area, by a specific salesperson, during a specific month. The answer to such question can be provided fast if the data is organized in multidimensional database or if query or related software products are designed for multidimensionality. This will allow users to navigate through the many dimensions and levels of data via tables or graphs and are able to make quick interpretations, such as uncovering significant deviations or important trends.


Multidimensionality Multidimensionality • Multidimensional database

A database in which the data are organized specifically to support easy and quick multidimensional analysis

• Data cube – A two-dimensional, three-dimensional, or higher-

dimensional object in which each dimension of the data represents a measure of interest

– Provides an opportunity to retrieve decision support information in an efficient way.


Multidimensionality Multidimensionality Cube

The term cube refers to a subset of highly interrelated data that is organized to allow users to combine any attributes (e.g., stores, products, customers, suppliers) with any metrics (e.g., sales, profit, units, age) to create various two-dimensional views, or slices, that can be displayed on a computer screen


Multidimensionality Multidimensionality

More on cube• Example : A database contains transaction information

relating company sales of products (p) to a customer (c ) at different store (s) locations. The data cube formed from this database is a three dimensional representation, with each cell ( p, c, s). The cube can be used to retrieve information within the database about, for example which store should be given a certain product to sell in order to make greater profit.

MultidimensionalityMultidimensionality


Multidimensionality Multidimensionality

Limitations of dimensionality – The multidimensional database can take up significantly

more computer storage room than a summarized relational database

– Multidimensional products cost significantly more than standard relational products

– Database loading consumes significant system resources and time, depending on data volume and the number of dimensions

– Interfaces and maintenance are more complex in multidimensional databases than in relational databases


Advanced Business Analytics Advanced Business Analytics • While OLAP concentrates on reporting and queries, a more

sophisticated way of analyzing data and information is needed

• Users today will want to perform statistical and mathematical analysis such as hypothesis testing, multiple regression, churn prediction and customer scoring models. Such investigation cannot be done with basic OLAP and will require special tools, including data mining and predictive analysis – hence, advanced business analytics


Advanced Business Analytics Advanced Business Analytics • A major step in managerial decision making is forecasting or

estimating the results of different alternative courses of actions

• Two methods that can be used for advanced business analytics are

• Data mining and predictive analysis – Data mining– Predictive analysis


Advanced Business Analytics Advanced Business Analytics • Data mining

– Tools that would automatically extract hidden, predictive information from databases, search for pattern in large transaction database. OLAP can only answer questions you are certain to ask, whereas data mining answers questions you don’t necessarily know you should ask (to be discussed further in the next chapter)

• Predictive analysis Use of tools that help determine the probable future outcome for an event or the likelihood of a situation occurring. These tools also identify relationships and patterns


Data Visualization Data Visualization Data visualization

A graphical, animation, or video presentation of data and the results of data analysis – Visual technologies can condense 1000 numbers in one

picture and make decision support applications more attractive and understandable

– The ability to quickly identify important trends in corporate and market data can provide competitive advantage

– Check their magnitude of trends by using predictive models that provide significant business advantages in applications that drive content, transactions, or processes


Data Visualization Data Visualization • New directions in data visualization

– Dashboards and scorecards – Visual analysis – Financial data visualization

Data VisualizationData Visualization


Now ask if …Now ask if …You are now be able to:• Describe business analytics (BA) and its importance to

organizations• List and briefly describe the major BA methods and

tools• Describe how online analytical processing (OLAP), data

visualization, and multidimensionality can improve decision making

• Describe advanced analysis methods


cisb594 – business intelligence business analytics and data visualization part i

Documents

overview business analytics

business analytics ba

business managers

better business

techniques of ba

essentials of ba analytics

competitive intelligence

overview slide