Business intelligence


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Business Intelligence an Overview

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Business intelligence

  1. 1. Business Intelligence O.A.Balasubramaniam
  2. 2. Data Growth• Corporate data is undoubtedly one of the most critical assets of any company• Data is growing by 100% Every year• Data generated in the 3 years is equivalent to previous 30 years..
  3. 3. How we are going to Manage with this?
  4. 4. What isInformation?
  5. 5. Information isan Organisational Asset InformationInformationshould be usedas a toolfor strategic advantage
  6. 6. DatavsInformation
  7. 7. Data is not information
  8. 8. Data vs InformationData • A “given,” or fact; a number, a statement, or a picture • Represents something in the real world • The raw materials in the productionInformation • Data that have meaning within a context • Data in relationships • Data after manipulation
  9. 9. CURRENT STATUS OF DATA What do I do??? How do I increase sales???? How do I make my product better???Mountains of Data Business Users
  10. 10. DATA – WHAT DO WE DO ??????Organizations have LOTS of DataData is not in a form that is useful to Decision-Makers Not easy to Review Not Informative nor Insightful
  11. 11. THE PROBLEM How do I retain customers? How do I increase GAP sales???? How do I make my product better???Mountains of Data Business People The Problem
  12. 12. WHERE DO THESE DATA COME FROM ? Sales Procure- Operations Finance ment Reporting LayerTransaction Layer CRM SCM MRP Finance SILOS OF DATA BY FUNCTIONAL AREA
  13. 13. WHERE DO THESE DATA COME FROM ? Sales Sales Sales SalesReporting LayerTransaction Layer Div 2 Region: B Region: A Div 1 SILOS OF DATA WITHIN ORGANIZATIONS
  14. 14. Common Pain Points ...• Data everywhere, information no where• Different users have different needs • Excel versus PDF • Pull versus push • On demand – on schedule • Your format – my format• Takes too long – wasted resources/efforts• Security• “Why I just can’t get it to you when you want it” 14
  15. 15. Data Manipulation Example: customer survey• Reading through data collected from a customer survey with questions in various categories would be time-consuming and not very helpful.• When manipulated, the surveys may provide useful information.
  16. 16. The existing Reporting system..• You’re battling to answer basic questions about your business• You spend more time collecting data than analyzing it• You’re drowning in reports• You have problems with the quality of the information you use• You’re forced to make decisions with insufficient facts and information• You are having problems to combine data across different systems and platforms• You’re frustrated with the complexities of OLAP and one dimensional view in Excel
  17. 17. Information & Management levels
  18. 18. Information & Management levels High level reports Executive Information Decision Support Queries and Report Transaction Data
  19. 19. Types of Information Systems• Transaction Processing Systems (TPS)• Management Information Systems (MIS)• Decision Support Systems (DSS)• Executive Information System (EIS)• Business Intelligence (BI)
  20. 20. Transaction Processing Systems (TPS)• Designed to Staff and day-to-day transactions• Automate handling of data about business activities (transactions)• Mostly transactions Eg. • Entering Purchase orders • Making sales invoices • Entering production data
  21. 21. Management Information Systems (MIS)..• Designed for the Managers• Converts raw data from transaction processing system into meaningful form• Mostly reports and charts Eg. • Value of Pending orders till date • Sales made for the month of June • Profit for the quarter
  22. 22. Decision Support Systems (DSS)• Designed to help decision makers• Provides interactive environment for decision making• What if Analysis and Extrapolations Eg. • Value of sales in the month of March 2007 compared to March 2006 • Reduction in sales value due to Price reduction
  23. 23. Executive Information System (EIS)• Designed to the Top Management – Directors, CEOs• Graphs and High level Drill down Data• Key business and Industry area Eg. • Profit on Cleaning machines for Second Quarter compared to First Quarter • Sales forecast for the next 5 years • Achieving 50% sales through exports
  24. 24. BusinessIntelligence
  25. 25. Business IntelligenceIt will Lead Business into the Future
  26. 26. The general categories of BI tools• Spreadsheets• Reporting and querying software • tools that extract, sort, summarize, and present selected data• OLAP• Digital Dashboards• Data mining• Decision engineering• Process mining• Business performance management• Local information systems
  27. 27. Evolution from Static Report to BI… High 2002 Action – Business Intelligence 1996 Advice – Data Mining UserInteraction Analysis – Online Analytical Processing 1992 Investigation – Executive Information Systems 1985 Aggregation – Management Information Systems Low Reporting – General Reports Low Analytical Features High
  28. 28. Evolution from Static Report to BI… BI Tools Digital Dashboards Visual Charts Plain Text Reports
  29. 29. WHAT IS BUSINESS INTELLIGENCE (BI) !Business Intelligence Is The Processes,Technologies, And Tools That Help Us ChangeData Into Information, Information IntoKnowledge And Knowledge Into Plans ThatGuide OrganizationTechnologies For Gathering, Storing,Analyzing And Providing Access To Data ToHelp Enterprise Users Make Better BusinessDecisions
  30. 30. What is Business Intelligence?• Business Intelligence (BI) is about getting • the right information, • to the right decision makers, • at the right time.• BI is an enterprise Software• BI leads to: • Fact-based decision making • “single version of the truth”• BI includes reporting, analysis and decision making.
  31. 31. WHAT IS BUSINESS INTELLIGENCE IN SUMMARYData Analytics & Business Intelligence provide the RightInformation at the Right Time in the Right Way for moreprofitable decision-making.Data Analytics with BI forms an Enterprise-wide platformfor querying, analysis and Reporting to make betterdecisions. Advanced BI solutions provide interactive analysis byintegrating departments and Functions into one holistic view.
  32. 32. Technologies Supporting BI• Database systems and database integration• Data warehousing, data stores and data marts• Enterprise resource planning (ERP) systems• Query and report writing technologies• Data mining and analytics tools• Decision support systems• Customer Relation Management software• Product Lifecycle Management (PLM) systems
  33. 33. Business IntelligenceImproving organizations byproviding business insightsto all employees leading to• Better• Faster• More relevant decisions Advanced Analytics Self Service Reporting End-User Analysis Business Performance Management
  34. 34. Why BI? The Five Questions • What happened? Past • What is happening? • Why did it happen? Present • What will happen? • What do I want to happen? Future MiscData ERP CRM SCM 3Pty Data
  35. 35. Why BI?Make more informed business decisions• Competitive and location analysis• Customer behavior analysis• Targeted marketing and sales strategies• Business scenarios and forecasting• Business service management• Business planning and operation optimization• Financial management and compliance
  36. 36. WHO USES BIThere are many different users who canbenefit from business intelligence Executives Business Decision Makers Information Workers Line Workers Analysts
  37. 37. Business Intelligence thro Excel
  38. 38. Business Intelligence thro Excel
  39. 39. Digital DashboardA dashboard is a tool used forcollecting and reporting keyperformance indicators in a quicksummary format.
  40. 40. Digital Dashboard… A digital dashboard provides aconsolidated view of informationfrom multiple sources in a singleweb browser screen.
  41. 41. Dashboard of Marketing Campaign
  42. 42. Winter Olympic Games
  43. 43. BUSINESS PERFORMANCE MANAGEMENT Source: Abeerdeen Research –Best in Class Trends for Business Planning
  44. 44. Key Performance Indicator (KPI) Key Performance Indicator (KPI) is a measure of performance of - an Organisation - a Department - an IndividualSuch measures are commonly usedto help an organization define and evaluate how successful it is, typically in terms of making progress towards its long-term organizational goals
  45. 45. KPI’s As Dash Board ElementsManufacturing KPIs• Production Capacity Trends• Projected Inventory Surplus• Days on Hand• Production Shortage as percentage (%) of Demand• Inventory Turns• Production Cycle• Equipment Utilization percentage (%)
  46. 46. KPI’s As Dash Board Elements… Financial KPIs• Inventory level at a given time• Collections made during the day• Days in Accounts Receivable• Net Collection Percentage• Percent of A/R over 90 days• Profit before Tax
  47. 47. BI as a Balance Score Card
  48. 48. BI’ Help in a Manufacturing IndustryIncrease the value of customer relationshipsRespond quickly to changing markets and company sensitivitiesAccelerate new product time-to-marketReduce inventory investmentImprove planning, scheduling, and the procurement scheduleMaintain and develop quality assuranceSelect and apply world-class technologies
  49. 49. Data for BI LAN/WAN Branches Server Internet/ Intranet Data Acquisition ProgramsOperational Systems(Systems of Record)
  50. 50. General purpose of BI• Single Source of the Truth• Increased Reporting Accuracy• Spots Opportunity and Risks business-wide• Conduct “what-if” analysis• Tracks Past, Present and Future Business Scenarios• Faster Deployment Time, Easy to use and meant for executives for decision-making
  51. 51. Depth of Business Intelligence Normal Reports BI Reports
  52. 52. BI Vendors in The MarketNo. Business Intelligence Tool Vendor1. Oracle Enterprise BI Server Oracle2. SAP Business Objects Enterprise SAP3. SAP NetWeaver BI SAP4. SAS Enterprise BI Server SAS Institute5. Microsoft BI platform* Microsoft6. IBM Cognos Series 8 IBM7. Board Mgt Intelligence Toolkit Board International 8. BizzScore Suite EFM Software 9. WebFocus Information Builders10. QlikView QlikTech11. Microstrategy Microstrategy12. Oracle Hyperion System Oracle13. Actuate Actuate
  53. 53. Thank You…
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