This is the scaled-down version from the presentation that I did in front of some local business people about the usefulness of existing business data when harnessed with Business Intelligence (BI) techniques and processes.
Business IntelligencePart I: IntroductionWelcome to the “Data-driven World”
Any organizations that dealwith budget, projects, andtargetsAny businesses that uses thisequation:Revenue – Cost = ProfitBI: DefinitionWho is it for?
Using your data to helpyour business growA means to discover lossprofit and hidden costReducing stress andincreasing confidence indecisions… The smart thing to do!BI: DefinitionBusiness Intelligence is ...
Just as medical labs analyze our bloodJust as oil-analysis labs analyze oil samplesinside of an engineWhen we measure key indicators, we can bein a preventive modeBI: DefinitionHow does BI do it?
You cannot improve what youdont measureYou cannot fix problems youdont know aboutBI: DefintionSo what?
How much is the cost ofincreasing your revenues?How much is the cost of solvingyour business problems?BI: DefintionHow Much?
Data is the lifeblood of all organizationsespecially businessesThe quality of data is an indicator of thequality of the decisions made based on itIn one sense:●Business = Business Data+ Business RulesBI: MotivationsWhat is the big deal with Data?
BI: MotivationsWhy is BI crucial for businesses?vsName Jane DoeAddress 123 Main St.Profession AttorneyLastpurchase5/5/2013Purchasefrequency2-3 times amonthMostfrequentlypurchasedproductAcme BlackShoesMostexpensiveproductpurchasedAcme RedShoesBirthday 7/4
BI: MotivationsBI is Marketing“What gooddoes yourdata do foryou, sittinginside thedatabase?”
Data is everywhereData is used by everyoneData does not maintain itselfData “Goes Bad” over timeOnly accurate and reliable data isuseful and valuableBI: MotivationsSome Facts about Data
Data is EverywherePayroll andEmploymentHistory OrdersAndInvoicesWarehousesAndDistributionCentersOrganizationChartManufacturingAndInventoryLegal andFinancialContractsProductsAndCatalogsPoint of SaleOrE-commerceGeneralLedgerMarketingAndPromotions
Data is used by EveryoneBusinessDataIRS andStateTax AuthorityInvestors andBanksAccountantsandLawyersBusinessOwnerVendorsCustomers
Invalid data entry – will happen no matter whatData is regulated by Business Rules●There are External and Internal Rules●What must happen when they change?●Rule changes introduce problems due to non-uniform understanding, human or system errorsData accuracy and reliability degrade over time –invisibly. We cant see it unless we dosomething about it.BI: MotivationsHow does Data go bad?
Customer delivery address: 1 expected, 3found ← AmbiguityMissing digits in accounting cumulativefigures ← Lost ProfitsAirline ticket type column: Sometimes missing← Unreliable DataDiscount being applied beyond expiry time ←Hidden ExpensesIncomplete transaction data ← Epic MissingDataBI: MotivationsWhat does bad data look like?
BI: MotivationsExample: Parts List Condition vs Quantity–
Data Management: Strategic plans toregulate data flow using business rulesData Maintenance: Day-to-day job of makingsure that data quality is high. Especially afterany rule changesData Analytics: Using high-quality data toanswer questions or to come up with newinsightsBI: MotivationsHow does BI deal with Bad Data?
Seventy percent of DataMgmt., Maintenance, andAnalysis is performed by datapersonnels.Not a lot of companies havein-house data personnels.Twenty percent depends onthe BI suite choice.nextCoder use zerolicense tools.Ten percent depends onhardware setup.BI: MotivationsWhy are Data Consultants Useful?
Business and IT care aboutthe same thing: DataBut they understand datadifferentlyBI should be in-between ITand Executives (business)BI: GoalsIsnt BI part of IT Dept.?
To automate existing manual processes●To reduce human errors●To reduce the time spentTo monitor the application of business ruleson dataTo simplify information from multiplesourcesBI: GoalsObjectives
Hows business? Profit up, cost down?What do you do with online marketing?Do you tell your customers that youredoing a good job?What is your plan to service morecustomers? Expand to adjacentmarkets?Do you generate reports manually? Doyou maintain the numbers manually?BI: GoalsHow to talk BI without saying data?
97,859 Businesses with 1 to 9 employeesand 37,940 Businesses with 10 to 99employees in DFW alone (US Census Bureau,2009)High volume transactions: TransactionProcessing, Warehouses, Suppliers,Distributors, Manufacturing, etc.Low volume transactions: Grocery Stores,Multi-store franchises (restaurants, salons,fitness clubs, etc.)BI: GoalsHow big is the market for BI?
For more info on usingBI for your business:Will Gunadiwill@nextcoder.com214.436.3232@nextcoderwill