1. What is Business Intelligence
By : Khawar Nehal
8 April 2013
Dubai-computer-services.com
Applied Technology Research Center
ATRC.net.pk
2. What is Business Intelligence
Business intelligence (BI) describes processes,
and technologies that transform data into
meaningful and useful information for business
purposes.
3. What can BI do.
BI can handle large amounts of information to
help understand what is going on and to identify
and develop new opportunities.
4. Advantage of BI
The use of BI to assist in the development of
new opportunities and implementing an effective
strategy can provide a competitive market
advantage and long-term stability.
5. What is different ?
Ok BI provides information. So did data
processing, then Information Technology.
So how is BI different from DP and IT ?
6. How BI different
Data processing was the term used in the 1950s
to 1970s for converting data to meaningful
reports. These were generally summary reports.
7. Information Technology
Information Technology was the term to describe
data processing in the 1980s to the 2010s.
These were also summary reports but allowed
some flexibility to the user to generate reports
without needing a programmer.
8. Business Intelligence
BI also provides reports.
However, now the reports are not those which
the users ask for but those which are connected
to strategy.
The BI Department has to understand the
business and generate formulas called KPIs.
KPIs are Key Performance Indicators.
9. KPI
Key performance indicators are variables which
are based on actual research on the business in
the market to determine which variables are the
most important and effective.
Knowing KPIs and deciding based on them
allows strategic decisions and tasks to deliver
results better in the real world situations.
10. Example
Now I shall explain by an example.
Data processing : Prints cheques and makes
sure the payroll is done.
11. Example
Information Technology : Does the payroll and all
counting functions. Summarizes what is going on
in history. Delivers summary reports based on
whims of the other departments.
Marketing wants to track their addressbook, IT
supports them in that.
12. BI Example
Investors want to know what the company is
doing right or wrong.
If the sales are going up or down and the
marketing department does not know why, it is
the job of BI to find out and inform them what is
going on and what factors it is based on.
13. Yeah BI. Now what ?
Ok I like your idea. How do I buy it ?
14. BI is results.
Ok now there shall be people who understand BI
and those who take DP and IT and slap the term
BI onto it and the try to sell it off as BI to those
who have some extra profits to use or serious
investors looking to improve their business.
15. How to buy BI
If anyone claims to know BI, ask them what the
term KPI means.
If they do not give the correct answer :
Key performance indicator. You have your FIRST
BI indicator in effect.
Use it. Decide to show them the door and
blacklist them as suppliers until they
demonstrate excellent measurable results with
other clients.
16. How to buy BI
Next step. If they pass the KPI test.
Ask the BI supplier to explain the research they
have done to determine the KPIs for your
business.
If none, request them to quote you a research to
get them. Do this for all suppliers.
17. How to buy BI
If you have less than 5 suppliers for BI quoting
your for research. Get more.
If you cannot get more, then wait for the industry
to mature.
If you cannot wait, then hire consultants into your
company to do the research and evaluate your
own capabilities.
18. How NOT to buy BI
If you do not have the infrastructure to implement
BI correctly, then do not bother until you have
discussed the long term idea with the investors.
If they say no, then forget about BI.
If they say yes, then think of it as a long term
project where corners should not be cut.
Evaluate all risks and ROIs carefully.
19. ROI in BI
The objective of implementing BI is to get
results. Not spend money on an idea.
If you cannot calculate the ROI of a BI project,
then you have not evaluated the project in depth
enough.
The only time you can go forward at a higher
speed is when the investors are ready to leap
forward without considering the costs.
20. Investors and BI
Investors may be able to fast track a BI project
without consideration to ROI easily when :
1. The BI is started in a small company of theirs
to learn from experience in an immature market.
2. The ROI shall be realized when they use their
fast gained experience in larger companies of
theirs.
21. Thanks for watching
Thank you for investing time in watching this
presentation.
I hope you were able to understand my
understanding of BI so far.
If you would like to return the favor please call or
email us to discuss how we can help your
company grow.
Regards,
Khawar Nehal (khawar@atrc.net.pk)
22. Contact information
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