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Business Intelligence Overview

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The purpose of business intelligence is to support better business decision making. BI systems provide historical, current, and predictive views of business operations, most often using data that has …

The purpose of business intelligence is to support better business decision making. BI systems provide historical, current, and predictive views of business operations, most often using data that has been gathered into a data warehouse or a data mart and occasionally working from operational data.

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  • 1. www.netpeach.com Business Intelligence Overview By: Netpeach BI Team
  • 2. www.netpeach.com Business Intelligence Overview - Definition - Architecture - Source systems /OLTP - ETL process - Data Warehouses /OLAP - OLTP vs. OLAP - ODS and Data Marts - Data Warehouse Design Approaches - Dimensional Modeling - From Enterprise models to Dimensional models - Schema Types: Star, Snowflake, Fact Constellation - Conclusion
  • 3. www.netpeach.com Definition The term business intelligence (BI) refers to technologies, applications and practices for the collection, integration, analysis, and presentation of business information. The purpose of business intelligence is to support better business decision making. BI systems provide historical, current, and predictive views of business operations, most often using data that has been gathered into a data warehouse or a data mart and occasionally working from operational data.
  • 4. www.netpeach.com BI enables enterprises - Measure performance and trends - to use analytic information strategically - unlock the value of its information - identify opportunities - improve efficiency - do competitive analysis.. - to find the Cause - data Mining - Etc.
  • 5. www.netpeach.com Examples • Cause & predictive analysis: Credit cart annual fee • Performance and trends: Region total sales / our sales • Competitive: Our sales / competitor sales in a particular region or a location, etc, • Right timing: Bank customer accounts (pattern changes) • Data mining: market basket analysis
  • 6. www.netpeach.com Architecture ETL Extract Clean Transform Integrate Loading Analysis Services Reporting Services OLAP Services Dashboards / Scorecards Alerts / Notifications EDW DM ODS ODS DM Etc. Staging /ETL Source Systems Target Systems BI Data Presentation
  • 7. www.netpeach.com Architecture cont… Typical BI architecture has the following components: • A source system, also called Operational system—typically an online transaction processing (OLTP) system, but other systems or files that capture or hold data of interest are also possible. • An extraction, transformation, and loading (ETL) process. • A data warehouse—typically an online analytical processing (OLAP) system. • A business intelligence platform such as Microstrategy.
  • 8. www.netpeach.com Source Systems (OLTP) An operational system is a term used in data warehousing to refer to a system that is used to process the day-to-day transactions of an organization. These systems are designed so processing of day-to-day transactions is performed efficiently and the integrity of the transactional data is preserved. Sometimes operational systems are referred to as operational databases, transaction processing systems, or on-line transaction processing systems (OLTP). In OLTP — online transaction processing systems relational database design use the discipline of data modeling and generally follow the Codd rules of data normalization in order to ensure absolute data integrity
  • 9. www.netpeach.com Source Systems examples - Account transactions in a Bank - Sales transactions in a Retail outlet. - Inventory management transactions in a warehouse - Workforce management transactions such as attendance, vacations, overtime tracking, etc. - Operational expenditure systems - External sources such as industry information like elasticity or demand of a product from a third part sources in Retail domain. - Etc.
  • 10. www.netpeach.com ETL – Extraction, Transformation and Loading The Extraction, Transformation, and Loading (ETL) process represents all the steps necessary to move data from different source systems to an integrated data warehouse. The ETL process involves the following steps: - Data is gathered from various source systems. - The data is transformed and prepared to be loaded into the data warehouse. Transformation procedures can include converting data types and names, eliminating unwanted data, correcting typographical errors, aggregating data, filling in incomplete data, and similar processes to standardize the format and structure of data. - The data is loaded into the data warehouse.
  • 11. www.netpeach.com Data Warehouse (OLAP) A Data Warehouse, in its simplest perception, is no more than a collection of the key pieces of information used to manage and direct the business for the most profitable outcome. - According to Bill Inmon, “a data warehouse is a  subject-oriented,  integrated,  nonvolatile,  time-variant collection of data in support of management decisions”. - Ralph Kimball states that a data warehouse is “ a copy of transaction data specifically structured for Query and Analysis”.
  • 12. www.netpeach.com OLAP OLAP: a category of software tools that provides analysis of data stored in a database. OLAP tools enable users to analyze different dimensions of multidimensional data. For example, it provides time series and trend analysis views. OLAP often is used in data mining.
  • 13. www.netpeach.com OLAP Analysis Imagine an organization that manufactures and sells goods in several states of USA During the OLAP analysis, the top executives may seek answers for the following: - Number of products manufactured. - Number of products manufactured in a location - Number of products manufactured on time basis within a location. - Number of products manufactured in the current year when compared to the previous year. - Sales Dollar value for a particular product. - Sales Dollar value for a product in a location. - Sales Dollar value for a product in a year within a location. - Sales Dollar value for a product in a year within a location sold or serviced by an employee.
  • 14. www.netpeach.com OLTP / OLAP OLTP FEATURE OLAP Transactional applications using a Front-end, - data capture, modify, delete - No direct DB access PURPOSE Analysis purpose - Analyse Data - Read only - Some times direct access to DB Operational administrative staff, Data Entry operator, database professional, etc. TYPE OF USERS Manager, analyst, executive, executive management Relational Data Structures DATA STRUCTURES Multidimensional Data Structures Normalized DBMS DUPLICATED DATA De-Normalized & Normalized DBMS Many NUMBER OF USERS Few Predefined operations WORKLOAD AD-HOC queries , Predefined reports Volatile DATA MODIFICATIONS Update on a regular basis Small volume (Current Data) DATA Volume Large Volume (Historical Data) Availability Must be high Response time must be good
  • 15. www.netpeach.com DW related: ODS and Data Marts ODS (Operational Data Store) - This has a broad enterprise wide scope, but unlike the real enterprise data warehouse, data is refreshed in near real time and used for routine business activity. Data Mart – is a subset of data warehouse and it supports a particular region, business unit or business function
  • 16. www.netpeach.com Typical positioning of an ODS Application 1 Application 2 Application n ETL Source Applications ODS EDW Data Mart Data Mart Data Mart
  • 17. www.netpeach.com ODS vs DW ODS DW It is designed to support operational monitoring. It is designed to support Decision Making Process. Data is volatile Non-Volatile Current Data Historical Data Designed for running the business Designed for Analyzing the business Follows Normalization Follows de-normalization Designed using E/R Modeling Using Dimensional Modeling
  • 18. www.netpeach.com ODS and DW use case In a pharmaceutical company Customer ODS is used for: - sending new product details, - promotional activities, - and scheduling appointments. DW is used to answer: - In a month, what is the total value of medicines prescribed by a Doctor? - What is our company share - Is he missing any info from us.
  • 19. www.netpeach.com Data Warehouse design approaches Kimball - Let everybody build what they want when they want it, we'll integrate it all when and if we need to. (BOTTOM-UP APPROACH) Pros: fast to build, quick ROI, nimble Cons: harder to maintain as an enterprise resource, often redundant, often difficult to integrate data marts Inmon - Don't do anything until you've designed everything. (TOP-DOWN APPROACH) Pros: easy to maintain, tightly integrated Cons: takes way too long to deliver first projects, rigid
  • 20. www.netpeach.com Dimensional data modeling • Dimensional data modeling is – A logical design technique that seeks to – present the data in a standard frame work that is – intuitive and allows high-performance access. • A data model specifically for designing data warehouses • The method was developed based on observations of practice, and in particular, providing data in “user- friendly” form.
  • 21. www.netpeach.com From ER Models to Dimensional Models A typical process in an enterprise
  • 22. www.netpeach.com Sample OLTP data model
  • 23. www.netpeach.com Step 1. Classify Entities Transaction Entities - An event happened at a point of time - contains measurements or quantities Component Entities : - directly related to a transaction entity - Component entities answer questions like “who”, “what”, “when”, “where”, “how” and “why” of a business event. In a sales application transaction entities are: Customer: who made the purchase Product: what was sold Location: where it was sold Period: when it was sold Classification Entities: - related to component entities by a chain of one-to-many relationships - represent hierarchies embedded in the data model
  • 24. www.netpeach.com Step 2. Identify Hierarchies • A hierarchy in an Entity Relationship model is any sequence of entities joined together by one-to-many relationships, all aligned in the same direction.
  • 25. www.netpeach.com Step 3. Produce Dimensional Models Operators For Producing Dimensional Models Operator 1: Collapse Hierarchy Operator 2: Aggregation There is a wide range of options for producing dimensional models from an Entity Relationship model. These include: Star Schema Snowflake Schema Constellation / Integrated Schema
  • 26. www.netpeach.com Star Schema • A fact table is formed for each transaction entity. The key of the table is the combination of the keys of its associated component entities. • A dimension table is formed for each component entity, by collapsing hierarchically related classification entities into it. A star schema consists of one large central table called the fact table, and a number of smaller tables called dimension tables which radiate out from the central table
  • 27. www.netpeach.com Sample Star Schema
  • 28. www.netpeach.com Snowflake Schema A snowflake schema is a star schema with all hierarchies explicitly shown.
  • 29. www.netpeach.com Star vs. Snowflake Star Schema Snowflake Ease of maintenance/change: Has redundant data and hence less easy to maintain/change No redundancy and hence more easy to maintain and change Ease of Use: Less complex queries and easy to understand More complex queries and hence less easy to understand Query Performance: Less no. of foreign keys and hence lesser query execution time More foreign keys-and hence more query execution time Space: Has de-normalized tables hence takes more space. Has normalized tables hence takes less space. Good for: Good for data marts with simple relationships (1:1 or 1:many) Good to use for data warehouse core to simplify complex relationships (many : many) When to use: When a dimension hierarchy contains more levels it is a good practice to use Star schema as it requires few joins and improves performance. When a dimension hierarchy contains fewer levels and is data volume is relatively big in size, snowflake is better as it reduces space and joins. Star schema does not support many to many relationship between attributes in a dimension as each dimension is de-normalized into a single table.
  • 30. www.netpeach.com Fact constellation schema The fact constellation architecture contains multiple fact tables that share many dimension tables
  • 31. www.netpeach.com Constellation /Integrated Schema A constellation schema consists of a set of star schemas with hierarchically linked fact tables.
  • 32. www.netpeach.com Step 4. Evolution and Refinement • Check if we can Combine any Fact Tables • Check if we can Combine any Dimension Tables • Handling Subtypes
  • 33. www.netpeach.com Conclusion ETL tools - Informatica - Data junction - Data stage - Ab initio - SSIS - Oracle Warehouse Builder. - Pentaho - Talend OLAP tools - Business Objects - Cognos Powerplay - MicroStrategy - Hyperion Essbase - SSAS - SSRS - Oracle Express - Oracle OLAP option Databases - Teradata - Netezza Below are few most popular tools:
  • 34. www.netpeach.com Questions & Answers