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MCDA	5560	– Business	
Intelligence
Business	Intelligence
Presenter:	Gang	Liu
.
Learning	Objectives
• In	this	course,	you	will	learn:
• How	business	intelligence	provides	a	comprehensive	
business	decision	support	framework
• About	business	intelligence	architecture,	its	evolution,	
and	reporting	styles
• About	the	relationship	and	differences	between	
operational	data	and	decision	support	data
• What	a	data	warehouse	is	and	how	to	prepare	data	for	
one
2
.
Learning	Objectives
• In	this	course,	you	will	learn:
• What	star	schemas	are	and	how	they	are	constructed
• About	data	analytics
• About	online	analytical	processing	(OLAP)
• How	SQL	extensions	are	used	to	support	OLAP-type	data	
manipulations
3
.
Things	we	learn	today
• The	nature	of	data
• The	taxonomy	of	data
4
.
Ubiquitous	Data
.
Data	vs	Information
.
The	Nature	of	Data
• Data:	a	collection	of	facts	
• usually	obtained	as	the	result	of	experiences,	observations,	
or	experiments
• Data	may	consist	of	numbers,	words,	images,	…
• Data	is	the	lowest	level	of	abstraction	(from	which	
information	and	knowledge	are	derived)
• Data	is	the	source	for	information	and	knowledge
• Data	quality	and	data	integrity	à critical	to	analytics
.
The	Nature	of	Data
Slide 2-8
.
Types	of	Databases
• Single-user	database: Supports	one	user	at	a	time
• Desktop	database:	Runs	on	PC
• Multiuser	database: Supports	multiple	users	at	the	
same	time
• Workgroup	databases: Supports	a	small	number	of	
users	or	a	specific	department
• Enterprise	database: Supports	many	users	across	
many	departments
9
.
Types	of	Databases
• Centralized	database:	Data	is	located	at	a	single	
site
• Distributed	database:	Data	is	distributed	across	
different	sites	
• Cloud	database:	Created	and	maintained	using	
cloud	data	services	that	provide	defined	
performance	measures	for	the	database
10
.
Types	of	Databases
• General-purpose	databases: Contains	a	wide	
variety	of	data	used	in	multiple	disciplines
• Discipline-specific	databases:	Contains	data	
focused	on	specific	subject	areas
• Operational	database:	Designed	to	support	a	
company’s	day-to-day	operations
11
.
Types	of	Databases
• Analytical	database:	Stores	historical	data	and	
business	metrics	used	exclusively	for	tactical	or	
strategic	decision	making	
• Data	warehouse:	Stores	data	in	a	format	optimized	for	
decision	support	
• Online	analytical	processing	(OLAP)
• Tools	for	retrieving,	processing,	and	modeling	data	from	the	data	
warehouse
• Business	intelligence:	Captures	and	processes	
business	data	to	generate	information	that	support	
decision	making	
12
.
Types	of	Databases
• Unstructured	data: It	exists	in	their	original	state
• Structured	data: It results	from	formatting	
• Structure	is	applied	based	on	type	of	processing	to	
be	performed
• Semistructured data: Processed	to	some	extent
• Extensible	Markup	Language	(XML)
• Represents	data	elements	in	textual	format
13
.
Metrics	for	Analytics	Ready	Data
• Data	source	reliability
• Data	content	accuracy
• Data	accessibility	
• Data	security	and	data	privacy
• Data	richness
• Data	consistency
• Data	currency/data	timeliness
• Data	granularity
• Data	validity	and	data	relevancy
.
A	Simple	Taxonomy	of	Data
• Data	(datum—singular	form	of	data):	facts
• Structured	data
• Targeted	for	computers	to	process
• Numeric	versus	nominal
• Unstructured/textual	data
• Targeted	for	humans	to	process/digest
• Semi-structured	data?
• XML,	HTML,	Log	files,	etc.
• Data	taxonomy…
.
A	Simple	Taxonomy	of	Data
Slide 2-16
.
Review	Questions
• 1.	What	is	data?	How	does	data	differ	from	information	and	knowledge?	
• 2.	What	are	the	main	categories	of	data?	What	types	of	data	can	we	use	for	BI	and
• analytics?	
• 3.	Can	we	use	the	same	data	representation	for	all	analytics	models?	Why,	or	why	not?
17
.
Evolution	of	File	System	Data	
Processing
File	System	Redux:	Modern	End-User	Productivity	Tools	
Includes	spreadsheet	programs	such	as	Microsoft	Excel
Computerized	File	Systems
Data	processing	(DP)	specialist:	Created	a	computer-based	system	that	would	track	data	and	
produce	required	reports
Manual	File	Systems
Accomplished	through	a	system	of	file	folders	and	filing	cabinets
18
.
A	Simple	File	System
19
.
Computerized	File	Systems
.
.
Problems	with	File	System	Data	
Processing
22
Lengthy	development	times
Difficulty	of	getting	quick	answers
Complex	system	administration
Lack	of	security	and	limited	data	sharing
Extensive	programming
.
Structural	and	Data	Dependence
• Structural	dependence:	Access	to	a	file	is	dependent	
on	its	own	structure
• All	file	system	programs	are	modified	to	conform	to	a	
new	file	structure
• Structural	independence: File	structure	is	changed	
without	affecting	the	application’s	ability	to	access	
the	data
23
.
Structural	and	Data	Dependence
• Data	dependence
• Data	access	changes	when	data	storage	
characteristics	change
• Data	independence
• Data	storage	characteristics	is	changed	without	
affecting	the	program’s	ability	to	access	the	data
• Practical	significance	of	data	dependence	is	
difference	between	logical	and	physical	format
24
.
Data	Redundancy
• Unnecessarily	storing	same	data	at	different	places
• Islands	of	information:	Scattered	data	locations
• Increases	the	probability	of	having	different	versions	of	
the	same	data	
25
.
Data	Redundancy	Implications
• Poor	data	security	
• Data	inconsistency	
• Increased	likelihood	of	data-entry	errors	when	
complex	entries	are	made	in	different	files
• Data	anomaly:	Develops	when	not	all	of	the	required	
changes	in	the	redundant	data	are	made	successfully	
26
.
Types	of	Data	Anomaly
Update	Anomalies	
Insertion	Anomalies
Deletion	Anomalies		
27
.
Case	study	of	abnormal	data
.
Case	Study
.
Questions
Q1: Is this table normalized?
Q2: If not, what anomalies can you discover on this table?
Q3: How can you normalize this table?
.
Things	we	learn	today
• Needs	of	data	analysis
• BI	concept	and	framework
• BI	components	and	tools
• BI	in	practices
• BI	benefits
31
.
The	Need	for	Data	Analysis	
• Managers	track	daily	transactions	to	evaluate	how	
the	business	is	performing
• Strategies	should	be	developed	to	meet	
organizational	goals	using	operational	databases
• Data	analysis	provides	information	about	short-
term	tactical	evaluations	and	strategies
32
.
Business	Intelligence	(BI)
• Comprehensive,	cohesive,	integrated	set	of	tools	
and	processes
• Captures,	collects,	integrates,	stores,	and	analyzes	data
• Generates	and	presents	information	to	support	
business	decision	making
• Allows	a	business	to	transform:
• Data	into	information
• Information	into	knowledge
• Knowledge	into	wisdom
33
.
User	cases
34
.
Business	Intelligence	Benefits
Improved	decision	making
Integrating	architecture
Common	user	interface	for	data	reporting	and	analysis
Common	data	repository	fosters	single	version	of	company	data
Improved	organizational	performance
35
.
Evolution	of	BI	Information	
Dissemination	Formats
36
.
Business	Intelligence	Evolution
37
.
Business	Intelligence	Evolution	(cont’d)
38
.
Business	Intelligence	(BI)
• Concepts,	practices,	tools	and	techniques	to	help	
business	
• Understand	its	core	capabilities
• Provide	snapshots	of	the	company	situation
• Identify	key	opportunities	to	create	a	competitive	
advantage
• Provides	a	framework	for
• Collecting	and	storing	operational	data	and	aggregating	it	
into	decision	support	data
• Analyzing	decision	support	data	and	presenting	generated	
information	to	end	users	to	support	business	decisions
• Making	business	decision	which	generates	more	data
• Monitoring	results	to	evaluate	outcomes	and	predicting	
future	outcomes	with	a	high	degree	of	accuracy
39
.
Business	Intelligence	Framework
40
. 41
.
A	Multimedia	Exercise	in	Business	
Intelligence
Slide 1-42
• TUN	(TeradataUniversityNetwork.com)
• BSI	Videos	(Business	Scenario	Investigations)
• Analogues	to	CSI	(Crime	Scene	Investigation)
• Go	To
• www.youtube.com/watch?v=NXEL5F4_aKA
• See	the	
• www.slideshare.net/teradata/bsi-how-we-did-it-the-case-of-the-
misconnecting-passengers.slides
• Discuss	the	case	presented	in	the	video	and	in	the	slides
.
Sample	of	
Business	
Intelligence	
Tools
43
.
Sample	of	
Business	
Intelligence	
Tools
(cont’d)
44
.
Business	Intelligence	Technology	
Trends
Data	storage	improvements
Business	intelligence	appliances
Business	intelligence	as	a	service
Big	Data	analytics
Personal	analytics
45
.
Questions	of	class	today
• What	is	business	intelligence?		Give	some	recent	
examples	of	BI	usage,	using	the	Internet	for	
assistance.		What	BI	benefits	have	companies	
found?
• What	components	included	in	BI	framework?	Give	
some	example	of	tools	provided	for	BI	framework	
by	vendors.
• Describe	the	BI	framework.	Illustrate	the	
evolution	of	BI.
46
.
Resource	#2
Online	Tutorial: http://www.studytonight.com/dbms/overview-of-dbms
Reading Material
.

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slide 1 bi introduction