© 2010 All Rights Reserved. SAP UA
Introduction to Business Intelligence
SAP University Alliances
Version 2.0
Authors Klaus Freyburger
Peter Lehmann
SAP UA
Page 2© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Agenda
What is Business Intelligence?
What is a „Data Warehouse“?
What are the benefits and challenges?
What does „multi-dimensional“ mean?
What is „OLAP“?
OLTP versus OLAP
Business Intelligence tool box
Agenda
SAP UA
Page 3© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
What is Business Intelligence?
SAP UA
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
What is Intelligence?
Definition:
1.The ability to learn or understand or deal with new and trying situations
2.The ability to apply knowledge to manipulate one’s environment
Source: Merriam-Webster’s Online Dictionary
SAP UA
Page 5© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Intelligence in Business
• What is the current status of the business?– What’s going well?– What needs improvement?
• What are the business’ strengths and weaknesses?
• Are there opportunities for innovation or competitive advantage?
• How do we improve our decision making?
Yesterday – Now - Tomorrow
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Main Objective of Business Intelligence
Support intelligence (e.g., knowledge of status)
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
A Brief History of Information Systems
ERP Systems
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Information Systems in a Company!?
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Definition: „Business Intelligence“
„Business Intelligence“ covers strategies, processes and technologies in order to achieve knowledge about status, potentials and perspectives of a company out of heterogeneous and distributed data.
?
Definition Source: Institut für Business Intelligence (IBI), http://www.i-bi.de/home/index.html
SAP UA
Page 10© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Business Intelligence Turns Data into Knowledge
Data
Information
Knowledge
Decision
Product AProduct BCustomer Smith
Customer Smithbuys product A
Product A & B havea 80% sales correlation
Offer product B to customer Smith
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Page 11© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Business Intelligence Stages
Source: Brobst, S. and J. Rarey, "Five Stages of Data Warehouse Decision Support Evolution", DSSResources.COM, 01/06/2003
SAP UA
Page 12© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Agenda
What is Business Intelligence?
What is a „Data Warehouse“?
What are the benefits and challenges?
What does „multi-dimensional“ mean?
What is „OLAP“?
OLTP versus OLAP
Business Intelligence tool box
Agenda
SAP UA
Page 13© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
What is a Data Warehouse?
A data warehouse is the most commondata architecture for business intelligence.
A data warehouse is a specificcompany-wide data pool in order to support decision makers.- Top management- Mid and lower management- Planners, controllers, …- …
Data Warehouse
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Page 14© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Data Warehouse Characteristics
"A Data Warehouse is a subject-oriented, integrated, time-variant and nonvolatile collection of data in order to support management decisions,“ Bill Inmon (1996).
- Subject-oriented• The organization of data is guided by the view of decision makers on specific areas of
business.
- Integrated• The Data Warehouse contains data from different internal and external sources. Important
is the high quality of data, i.e., its correctness and consistency.
- Time-oriented• Data in a Data Warehouse has a time dimension, i.e. all data values and their changes in
time can be compared and analyzed along the time axis.
- Nonvolatile• As opposed to operational databases, data are stored persistently in a Data Warehouse.
Access is by reading the data; analysis does not change the data.
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Data Integration Process
Source systems- External data sources- Internal data sources
Multi-dimensional data- Information models- Aggregation
Extraction, trans-formation, loading
- Selection, extraction, - Modification, loading
Data warehouse- Data storage- Administration
Data analysis and analytical applications
- OLAP, MIS, cockpits, …- Planning, scorecard, …
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Business Intelligence Platforms – 2008
Source: Gartner 2008
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Business Intelligence Platforms – 2009
Source: Gartner 2009
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Business Intelligence Platforms – 2010
Source: Gartner 2010
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Page 19© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Agenda
What is Business Intelligence?
What is a „Data Warehouse“?
What are the benefits and challenges?
What does „multi-dimensional“ mean?
What is „OLAP“?
OLTP versus OLAP
Business Intelligence tool box
Agenda
SAP UA
Page 20© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Benefit: Reduce Action Time
AddedValue
Time
OperationalTransaction
Data Available
Analysis ResultsAvailable
DecisionMade
Action ImplementedData
accesstime
Analysistime Decision
timeImplementation
time
Action time
Ad
ded
V
alu
e lo
ss
Source: Hackathorn, R.: Minimizing Action Distance (2003), http://www.tdan.com/view-articles/5132/
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Benefit: Reduce Action Time to Nearly Real Time
AddedValue
Time
OperationalTransaction
Data Available
Analysis ResultsAvailable
Decision Made
Action Implemented
Saved Time
Sav
ed
Val
ue
Action Implemented
SAP UA
Page 22© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Other Benefits
Increased- Information quality by a „single version of the truth“
- Competitive ability
- Customer satisfaction
- Inter-company and inter-department collaboration
- Alignment with business strategy
Compliance with financial reporting regulations- Risk management
- Financial consolidation
- Corporate planning and forecasting
- SOX (US), BASEL II (European Community), etc.
- …
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Challenges (1)
Data Quality- Precise
- Subject-oriented
- Complete
- Accessable
- Flexibility
- Security and authorisation
- Time dependencies
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Challenges (2)
Business Terms – What do you mean?- „What is our revenue“?
- „95% of our trains arrive just in time!“
- “How many students will certainly finish?”
- …I have a
stock here that
could really excel !
This isMadness!
I can‘t take anymore
Good Bye
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Challenges (3)
Tools – easy to use?
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Challenges (4)
Others- No clear project scope
- No management project support
- No appropriated IT infrastructure
- Inadequate staff qualification
- Lack of end user acceptance
- …
SAP UA
Page 27© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Agenda
What is Business Intelligence?
What is a „Data Warehouse“?
What are the benefits and challenges?
What does „multi-dimensional“ mean?
What is „OLAP“?
OLTP versus OLAP
Business Intelligence tool box
Agenda
SAP UA
Page 28© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Multi-dimensional (1)
A key figure without a relationship to any object makes no sense!
1388486
A telephone number?
A material number?
Revenue in September 2007?
My boss‘ salary?
SAP UA
Page 29© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Multi-dimensional (2)
San Francisco had 1,388,486 USD revenue in May 2007 by selling Mountain Bikes
Revenue in USD:1,388,486
Month: May
Sales Organisation:
San Francisco
Group: Mountain Bike
Year: 2007
SAP UA
Page 30© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Multi-dimensional (3)
Key figure: Revenue
Object: Values- Month May
- Year 2007
- Sales Organisation San Francisco
- Material Group Mountain Bike
Multi-dimensional means a key figure always relates to one or more objects.
SAP UA
Page 31© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Agenda
What is Business Intelligence?
What is a „Data Warehouse“?
What are the benefits and challenges?
What does „multi-dimensional“ mean?
What is „OLAP“?
OLTP versus OLAP
Business Intelligence tool box
Agenda
SAP UA
Page 32© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
OLAP
On-line Analytical Processing is a software technology which allows end-user driven, fast and interactive data analysis.
On-line Analytical Processing is a software technology which allows end-user driven, fast and interactive data analysis.
Revenue1,388,486 USD
SAP UA
Page 33© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Excel PivotTable
„What is the revenue in each country in 2007?“
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Excel PivotTable (1)
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Excel Pivot Table (2)
„What is the revenue in each country per month?“
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Pivot Table (3)
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
From Table View to a 3-Dimensional Cube
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Hierachies Allow Subcubes in a Cube
Product group products
Year quarter months
Country sales organisation
Example
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Page 39© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
From Cube to Report: MS Excel
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
From Cube to Report: SAP Business Explorer (1)
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
From Cube to Report: SAP Business Explorer (2)
click
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
From Cube to Report: SAP Business Explorer (3)
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Cube Navigation (1)
Slice
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Cube Navigation (2)
Rotation
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Page 45© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Cube Navigation (3)
Rotation, ExampleMaterial Group
and Country visible, Year
restricted to 2007
Material Group and Year visible,
all Countries aggregated
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Cube Navigation (4)
Dice
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Cube Navigation (5)
Drill-Down / Roll-Up
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Page 48© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Cube Navigation (Summary)
Rotation
Slice
Dice
Drilldown
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Page 49© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Is a Excel an OLAP Tool?
CFOs & controllers love it
Cheap
MS Office component
Easy to use
Nice graphics
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Page 50© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Is Excel an OLAP tool? What about…
Concurrent users?
Data volume?
Processing performance?
Aggregation behavior (fat client)?
Authorizations?
Metadata?
Many data sources?
Cell references?
…
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Page 51© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Requirement for OLAP Systems
Many concurrent users (1000+)
Sophisticated authorizations and security
Fast response time (< 5 sec)
High data volumes (>100+ GB or TB)
Multiple data sources
Easy to use (slice, dice, drill-down, roll-up)
Enhanced reporting functions
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Page 52© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Exercises
OLAP navigation using Excel PivotTables
OLAP navigation in SAP - Business Explorer Analyzer (Excel)- Business Explorer Web (Browser)
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Page 53© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
BI Architecture
Source systems- External data sources- Internal data sources
Multi-dimensional data- Information models- Aggregation
Extraction, trans-formation, loading
- Selection, extraction, - Modification, loading
Data warehouse- Data storage- Administration
Data analysis and analytical applications
- OLAP, MIS, cockpits, …- Planning, scorecard, …
SAP UA
Page 55© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Agenda
What is Business Intelligence?
What is a „Data Warehouse“?
What are the benefits and challenges?
What does „multi-dimensional“ mean?
What is „OLAP“?
OLTP versus OLAP
Business Intelligence tool box
Agenda
SAP UA
Page 56© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Information SystemsVe
rtic
al In
tegr
atio
n
CorporatePlanning
Accounting
Supplier Management,Production Planning,Cost Planning, …
Su
pp
lie
rA
cc
ou
nti
ng
Purchasing Stocks Sales Personnel
Wa
reh
ou
se
Ac
co
un
tin
g
Cu
sto
me
rIn
vo
ice
s
Em
plo
ye
eS
ala
ryAdministration II:Amount-OrientedProcessing
Administration I: Value-OrientedProcessing
Disposition andPlanning
Analysis and Controlling
StrategicEnterpriseManagement
Horizontal Integration
Source: Mertens, P., Meier, M.: Integrierte Informationsverarbeitung (2009), 1.
SAP UA
Page 57© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
OLTP versus OLAP
On-line Transactional
Processing
On-line Analytical
Processing
CorporatePlanning
Accounting
Supplier Management,Production Planning,Cost Planning, …
Su
pp
lie
rA
cc
ou
nti
ng
Purchasing Stocks Sales Personnel
Wa
reh
ou
se
Ac
co
un
tin
g
Cu
sto
me
rIn
vo
ice
s
Em
plo
ye
eS
ala
ry
Administration II:Amount-OrientedProcessing
Administration I: Value-OrientedProcessing
Disposition andPlanning
Analysis and Controlling
StrategicEnterpriseManagement
Horizontal Integration
SAP UA
Page 58© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
OLTP Versus OLAP (1)
OLTP OLAP
- Optimized to get data in - Optimized to get data out
- For management and daily business
- For administration and daily decisions
- Processes a small amount of data per transaction
- Processes a large amount of data per transaction
- Business-critical availability - Less critical availability
- Data updates online - Data updates regularly
- Data overwritten - Data are time-dependent
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Page 59© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
OLTP Versus OLAP (2)
It is very hard to get all-in-one!
SAP UA
Page 60© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Agenda
What is Business Intelligence?
What is a „Data Warehouse“?
What are the benefits and challenges?
What does „multi-dimensional“ mean?
What is „OLAP“?
OLTP versus OLAP
Business Intelligence tool box
Agenda
SAP UA
Page 61© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
CorporatePlanning
Accounting
Supplier Management,Production Planning,Cost Planning, …
Su
pp
lie
rA
cc
ou
nti
ng
Purchasing Stocks Sales Personnel
Wa
reh
ou
se
Ac
co
un
tin
g
Cu
sto
me
rIn
vo
ice
s
Em
plo
ye
eS
ala
ryAdministration II:Amount-OrientedProcessing
Administration I: Value-OrientedProcessing
Disposition andPlanning
Analysis and Controlling
StrategicEnterpriseManagement
Horizontal Integration
Where Are the End Users?
Top Management
Middle Management
Lower Management
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Page 62© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
What Do They Do?
Specialists (Authors)
Analysts
Consumers
10%
20%
70%
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SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Consumers
Get reports on a regular base
Look over huge amount of data
Occasionally stumble on something that provesto be useful
Sporadic usage of data
Sometimes find areas for further exploration
Heavy reliance on tools for displaying data
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Page 64© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Analysts
Regular access to data
Know what they are looking for
Requirements known before search for data starts
Find small flakes of gold regularly
Make use of tools for analysis and presentation
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Page 65© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Specialists (Authors)
Requirements are known
Irregular access to data
Look over massive amounts of data
Sometimes find huge nuggets of gold
Unpredictable pattern of access
Access detailed data regularly
Look at relationships of data
Make use of tools of discovery, analysis and presentation
Make results available to others (consumers,analysts)
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Page 66© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Business Intelligence Tool Box
Source: Eckerson, W. (May 2006). Business intelligence 2006 - only the beginning. What Works, 21.
SAP UA
Page 67© 2010 SAP AG
SAP BI Curriculum BI1-M1 Introduction to Business Intelligence
Summary
What is Business Intelligence?
What is a „Data Warehouse“?
What are the benefits and challenges?
What does „multi-dimensional“ mean?
What is „OLAP“?
OLTP versus OLAP
Business Intelligence tool box
Agenda