ISQS 3358 Business Intelligence 1

ISQS 3358, Business Intelligence

Introduction

Zhangxi Lin

Texas Tech University

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ISQS 3358 Business Intelligence 2

Outline

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Definitions of BI Categorizations of BI BI Trend BI tools

ISQS 3358 Business Intelligence 3

What is Business Intelligence

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A Simple Definition: The applications and technologies transforming Business Data into Action

Business intelligence (BI) is a business management term refers to applications and technologies which are

used to gather, provide access to, and analyze data and information about their company operations.

Business intelligence systems can help companies gain more comprehensive knowledge of the factors affecting their business, and help companies to make better business decisions.

ISQS 3358 Business Intelligence 4

Data, information, and knowledge

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Data – a collection of raw value elements or facts used for calculating, reasoning, or measuring.

Information – the result of collecting and organizing data in a way that establishes relationship between data items, which thereby provides context and meaning

Knowledge – the concept of understanding information based on recognized patterns in a way that provides insight to information.

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The process of BI

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Data -> information -> knowledge -> actionable plans Data -> information: the process of determining what data

is to be collected and managed and in what context Information -> knowledge: The process involving the

analytical components, such as data warehousing, online analytical processing, data quality, data profiling, business rule analysis, and data mining

Knowledge -> actionable plans: The most important aspect in a BI process

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Actionable Knowledge

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An information asset retains its value on if the converted knowledge is actionable. Need some methods for extracting value from

knowledge This is not a technical issue but an organizational

one – need empowered individuals in the organization to take the action

There is an issue of Return on Investment (ROI)

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BI Problems

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Structured Detecting Credit card fraud Setting Loan parameters Market segmentation/Mass customization Deciding Marketing mix Customer Churn Reducing employee turnover Improving Quality/Efficiency …

Unstructured Data exploration Utilization of resources (stored knowledge) to maximum

effectiveness …

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BI Applications

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Customer Analytics Customer profiling Targeted marketing Personalization Collaborative filtering Customer satisfaction Customer lifetime value Customer loyalty

Sales Channel Analytics Marketing Sales performance and pipeline

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BI Applications (2)

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Supply Chain Analytics Supplier and vendor management Shipping Inventory control Distribution analysis

Behavior Analysis Purchasing trends Web activity Fraud and abuse detection Customer attrition Social network analysis

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Why is BI getting hot?

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Demands from processing explosive information MIS/ERP Internet

Gartner Says Business Intelligence Software Market to Reach $3 Billion in 2009 Gartner's CIO Survey ranked BI as number one technology priority for 2006

London, UK, 7 February 2006 - New license revenue in the worldwide business intelligence (BI) software market is poised for constant growth through 2009, when the market is projected to reach $3 billion in 2009, according to the latest forecasts by Gartner Inc. In 2006, the market is estimated to reach 2.5 billion, a six percent increase from 2005.

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Explosion of digitally born Explosion of digitally born data data

Sources: • http://www2.sims.berkeley.edu/research/projects/how-much-info-2003/execsum.htm, • The Expanding Digital Universe, IDC white paper, March 2007

55% in personal PCs16% in corporate data warehousesInternet only 21 TBEmail 500x more than Internet / year

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BI Job Description - BI Analyst (1)

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Description: Looking for professionals in Microsoft Business Intelligence and Data Warehousing who have a proven track record of success within industry. The position requires a broad range of skills and the ability to step in to different roles depending on the size and scope of an engagement both internally and at client sites. The qualified candidate would have proven experience developing successful Microsoft-based Business Intelligence and Data Warehouse solutions.

Requirements: * 10+ years of experience developing Business Intelligence solutions with Microsoft database, ETL and OLAP technologies (SQL Server, SSIS, Analysis Services)* Demonstrated understanding of multi-dimensional database design and architecture.* Ability to develop business requirements and translate them into a data warehouse dimensional model.* Demonstrated ability to develop front-end reporting and analytical solutions that meet the business needs.* Microsoft SQL Server data modeling and development (10 years)* Microsoft SQL Server Analysis Services design and development (5 years)* Microsoft SQL Server Integration Services (2 years)* Microsoft SQL Server Reporting Services design and development* Understanding of Data Warehouse Methodologies, preferably using Kimball Methodology* Demonstrated leadership aptitude and ability to work effectively within a team environment

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BI Analyst (2)

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Microsoft SQL Server (BI) Business Intelligence

SetFocus is seeking professionals with Analyst and/or Data Warehousing backgrounds for Business Intelligence consulting positions across the country. Apply Today: www.setfocus.com/Apply/defaultbi.aspx

Successful candidates have had backgrounds as:

Business Intelligence Analyst, Database Developer, SQL Programmer, Financial Analyst, Business Analyst, System Analyst, Software Developer, Dir. of IT, VP of IT and / or experience with Cognos, Siebel, SAP, Business Objects, SAS, PeopleSoft, Oracle, Microstrategy, Information Builders, ProClarity, CA, or Actuate.

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The Evolution of Business Intelligence

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1st Generation – Traditional analytics (query and reporting)

2nd Generation – Traditional generation (OLAP, data warehousing)

2.5nd Generation – New traditional generation 3rd Generation - Advanced analytics

Rules, predictive analytics and realtime data mining Stream analytics

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Software Used in this Class

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Microsoft SQL Server 2005 SAS Enterprise Guide v4.1

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CAABI

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Center for Advanced Analytics and Business Intelligence initially started in 2004 by Dr. Peter Westfall, ISQS, Rawls College of Business.

Looking to offer support to companies in developing BI capabilities.

Lots of technical expertise.