BUSINESS INTELLIGENCE AND DATA ANALYTICS presentation

AMITY BUSINESS SCHOOL
BUSINESS INTELLIGENCE
AND DATAANALYTICS
MODULE III

PRESENTED BY
MOHIT NEGI A38
ISHANT KHANNA A40
MIR ARSALAN QAZI A58

INTRODUCTION
By
MOHIT NEGI

Business reporting is an essential part of any planning process in the workplace as
it consists of providing data and information to specific audiences. Examples of
business reports include financial plans, customer service reviews, and marketing
research results.
There are two types of business reports:
• Informational Report
• Analytic Report
BUSINESS REPORTING

• Data visualization is the presentation of data in a pictorial or
graphical format. It enables decision makers to see analytics
presented visually, so they can grasp difficult concepts or identify
new patterns.
• A primary goal of data visualization is to communicate information
clearly and efficiently via statistical graphics, plots and information.
DATA VISUALISATION

DATA VISUALISATION

• With the help of Data Visualisation we can easily understand the
concept of large amount of data.
• Identify areas that need attention or improvement.
• Clarify which factors influence customer behaviour.
• Help you understand which products to place where.
IMPORTANCE OF DATA VISUALISATION

• Understand Information Quickly
• Identify Relationships and Patterns
• Pinpoint Emerging Trends
• Predict sales volumes.
USES OF DATA VISUALISATION

Infographics are visual representation of facts, events or numbers. The
visual patterns and trends are used in such a way that human
cognition is enhanced. The infographics therefore can convey a lot of
information at once to the human mind. They should therefore be
designed ensuring the maximum appeal in viewer's mind. Infographics
are information graphs in short.
INFORMATION VISUALISATION

1. Heat Map
2. Hyperbolic Tree
3. Data Map
4. Tree Map
5. Radar Chart
6. Parallel Coordinates
7. Data-Flow Diagram
INFORMATION VISUALISATION METHODS

INFORMATION VISUALISATION

• Infographics are generally created for the purpose of telling or
explaining a specific story for a specific audience, thus Infographics
are subjective. The method of presentation that is used for one
Infographic cannot usually be used for another. They can take a more
holistic approach to a subject.
• Data Visualisation can be both an item, and a discipline. The
information will be quantifiable, and therefore in the form of
numbers. Data Visualisations should be objective and the entire data
set may very well be presented without editing.
DATA VISUALISATION VS INFORMATION VISUALISATION

Infographics can contain Data Visualisations, but Data Visualisations
cannot contain Infographics. Like the difference between a ship and a
boat, a boat can go on a ship but not the reverse. Information is
refined data, just as an Infographic could be thought of as a refined
Data Visualisation.
DATA VISUALISATION VS INFORMATION VISUALISATION

• A chart, also called a graph, is a graphical representation of data, in
which the data is represented by symbols, such as bars in a bar chart,
lines in a line chart, or slices in a pie chart. A chart can
represent tabular numeric data, functions or some kinds of qualitative
structure and provides different information.
• Charts are often used to ease understanding of large quantities of
data and the relationships between parts of the data. Charts can
usually be read more quickly than the raw data that they are
produced from. They are used in a wide variety of fields, and can be
created by hand (often on graph paper) or by computer using
a charting application.
CHARTS AND GRAPHS

Bar Charts
• Bar graphs are used to present and compare data. There are two main types of bar
graphs: horizontal and vertical. They are easy to understand, because they consist of
rectangular bars that differ in height or length according to their value or frequency.
These types of graphs serve the same purpose as line graphs that is they represent time
series data. However, bar graphs display a change in magnitude, and not in direction
like line graphs.
• A horizontal bar graph consists of an x-axis, and a vertical bar graph consists of a y-axis.
The numbers on the axes are known as the scales. Each bar is represents a numeric or
categorical variable. Vertical bar graphs are best used for the comparison of time series
data and frequency distribution. Horizontal bar graphs are particularly useful when
category labels are long; vertical bar graphs do not provide much space for text labels.
TYPES OF CHARTS AND GRAPHS

Bar Charts

Line Charts
• Data that is arranged in columns or rows on a worksheet can be plotted in a line chart.
Line charts can display continuous data over time, set against a common scale, and are
therefore ideal for showing trends in data at equal intervals. In a line chart, category
data is distributed evenly along the horizontal axis, and all value data is distributed
evenly along the vertical axis.
• You should use a line chart if your category labels are text, and are representing evenly
spaced values such as months, quarters, or fiscal years. This is especially true if there are
multiple series—for one series, you should consider using a category chart. You should
also use a line chart if you have several evenly spaced numeric labels, especially years. If
you have more than ten numeric labels, use a scatter chart instead.

Line Charts

Pie Charts
• Data that is arranged in one column or row only on a worksheet can be plotted
in a pie chart. Pie charts show the size of items in one data series, proportional
to the sum of the items. The data points in a pie chart are displayed as a
percentage of the whole pie
• Consider using a pie chart when:
• You only have one data series that you want to plot.
• None of the values that you want to plot are negative.
• Almost none of the values that you want to plot are zero values.
• You do not have more than seven categories.
• The categories represent parts of the whole pie.

Pie Charts

Area Charts
• Data that is arranged in columns or rows on a worksheet can be
plotted in an area chart. Area charts emphasize the magnitude of
change over time, and can be used to draw attention to the total
value across a trend. For example, data that represents profit over
time can be plotted in an area chart to emphasize the total profit.
• By displaying the sum of the plotted values, an area chart also shows
the relationship of parts to a whole.

Area Charts

XY (Scatter) Charts
• Data that is arranged in columns and rows on a worksheet can be plotted in an
XY (scatter) chart. Scatter charts show the relationships among the numeric
values in several data series, or plots two groups of numbers as one series of XY
coordinates.
• A scatter chart has two value axes, showing one set of numeric data along the
horizontal axis (X-axis) and another along the vertical axis (Y-axis). It combines
these values into single data points and displays them in irregular intervals, or
clusters. Scatter charts are typically used for displaying and comparing numeric
values, such as scientific, statistical, and engineering data.

XY (Scatter) Charts

Pictographs
• Pictographs, also called pictograms, are diagrams that show and compare data by using picture
symbols. Each of these symbols corresponds to a specific quantity and is repeated a number of
times. The media often uses pictographs to compare trends; in a magazine.
• We may see a pictograph comparing the number of nurses in the different countries. In this case,
tiny human figures may represent the nurses, with each figure symbolizing 50 nurses, for
instance.
• While pictographs are easy to understand, they can be misleading because they provide a
general representation. Therefore, they are not commonly used by statisticians and scientists
who work with very precise measurements. For example, it is virtually impossible to accurately
display the difference between $0.56, $0.61, $11.99 and $12.32 through picture symbols on the
same pictograph.

Pictographs

Organisational Chart
• Organizational charts, also called organization charts or org charts, are diagrams
that reveal the overall structure of the workforce of a company. Through an
organizational chart, the formal indirect or direct relationships between the
positions in a company are presented. The chart also shows how different
departments are connected.
• Organizational charts are types of graphs that depict four types of relationships:
line, lateral, staff, and functional. Line relationships exist between superiors and
subordinates. Lateral relationships exist between different departments of similar
rank. Staff relationships exist between a managerial assistant and a line manager.
Functional relationships exist between a specialist and a line manager.

Organisational Chart

Flowcharts
• Flowcharts are types of graphs that display a schematic process. Businesses often use
them to visually depict all the stages of a project. Therefore, individuals working on a
project refer to a flow chart to see the breakdown of the process and understand the
whole picture. A flowchart can effectively be used as a training tool for employees who
are being introduced to a new project. It also helps in locating and correcting errors in a
project.
• Even though flow chart use is usually linked to the field of business, a flowchart can be
used for any purpose that involves a cross-functional process. It can even be used to
show driving directions from one location to another.
• A flowchart consists of start points, end points, inputs, outputs, and routes which are
commonly represented by basic symbols that are labelled.

Flowcharts

Bubble Charts
• A bubble chart is a type of chart that displays three dimensions of
data. Each entity with its triplet (v1, v2, v3) of associated data is
plotted as a disk that expresses two of the vi values through the
disk's x y location and the third through its size. Bubble charts can
facilitate the understanding of social, economical, medical, and other
scientific relationships.

Bubble Charts

PERFORMANCE DASHBOARDS
By
ISHANT KHANNA

• In management information systems, a dashboard is "an easy to
read, often single page, real-time user interface, showing a graphical
presentation of the current status (snapshot) and historical trends of
an organization’s key performance indicators to enable instantaneous
and informed decisions to be made at a glance.
• Dashboards often provide at-a-glance views of KPIs (key
performance indicators) relevant to a particular objective or business
process (e.g. sales, marketing, human resources, or production). In
real-world terms, dashboard is another name for progress report.

• Often, the dashboard is displayed on a web page that is linked to a
database which allows the report to be constantly updated. For
example, a manufacturing dashboard may show numbers related to
productivity such as number of parts manufactured, or number of
failed quality inspections per hour.
• Similarly, a human resources dashboard may show numbers related
to staff recruitment, retention and composition, for example number
of open positions, or average days or cost per recruitment.

SAMPLE PERFORMANCE DASHBOARD

Digital dashboards allow managers to monitor the contribution of the
various departments in their organization. To gauge exactly how well
an organization is performing overall, digital dashboards allow you to
capture and report specific data points from each department within
the organization, thus providing a "snapshot" of performance.
BENEFITS OF PERFORMANCE DASHBOARDS

• Visual presentation of performance measures
• Ability to identify and correct negative trends
• Measure efficiencies/inefficiencies
• Ability to generate detailed reports showing new trends
• Ability to make more informed decisions based on collected business intelligence
• Align strategies and organizational goals
• Saves time compared to running multiple reports
• Gain total visibility of all systems instantly
• Quick identification of data outliers and correlations
BENEFITS OF PERFORMANCE DASHBOARDS

• Dashboards can be broken down according to role and are either strategic, analytical,
operational, or informational.
• Strategic dashboards support managers at any level in an organization, and provide the quick
overview that decision makers need to monitor the health and opportunities of the business.
Dashboards of this type focus on high level measures of performance, and forecasts.
• Dashboards for analytical purposes often include more context, comparisons, and history, along
with subtler performance evaluators. Analytical dashboards typically support interactions with
the data, such as drilling down into the underlying details.
• Dashboards for monitoring operations are often designed differently from those that support
strategic decision making or data analysis and often require monitoring of activities and events
that are constantly changing and might require attention and response at a moment's notice.
CLASSIFICATION

• Big data is set to offer companies tremendous insight. But with terabytes and petabytes of data
pouring in to organizations today, traditional architectures and infrastructures are not up to the
challenge.
• IT teams are burdened with ever-growing requests for data, ad hoc analyses and one-off reports.
Decision makers become frustrated because it takes hours or days to get answers to questions, if at
all.
• This begs the question: How do you present big data in a way that business leaders can quickly
understand and use?
• Organizations often approach the problem in one of two ways: Build “samples” so that it is easier to
both analyse and present the data, or create template charts and graphs that can accept certain types
of information.
• To fully take advantage of visual analytics, organizations will need to address several challenges
related to visualization and big data.
OVERCOMING BIG DATA CHALLENGES WITH VISUAL
ANALYTICS

1. Meeting the Need for Speed
In today’s hypercompetitive business environment, companies not only have to find and analyse the
relevant data they need, they must find it quickly. Visualization helps organizations perform analyses
and make decisions much more rapidly.
2. Addressing Data Quality
Even if you can find and analyse data quickly and put it in the proper context for the audience that
will be consuming the information, the value of data for decision-making purposes will be reduced
if the data is not accurate or timely. This is a challenge with any data analysis, but when considering
the volumes of information involved in big data projects, it becomes even more pronounced.
Again, data visualization will only prove to be a valuable tool if the data quality is assured. To
address this issue, companies need to have a data governance or information management process
in place to ensure the data is clean.
ANALYTICS

3. Understanding the Data
It takes a lot of understanding to get data in the right shape so that you can use visualization
as part of data analysis. For example, if the data comes from social media content, you need to
know who the user is in a general sense – such as a customer using a particular set of products
– and understand what it is you’re trying to visualize out of the data.
Without some sort of context, visualization tools are likely to be of less value to the user. One
solution to this challenge is to have the proper domain expertise in place. Make sure the
people analysing the data have a deep understanding of where the data comes from, what
audience will be consuming the data and how that audience will interpret the information.
ANALYTICS

4. Displaying Meaningful Results
Plotting points on a graph for analysis becomes difficult when dealing with extremely large
amounts of information or a variety of categories of information. For example, imagine you
have 10 billion rows of retail stock keeping units data that you’re trying to compare.
The user trying to view 10 billion plots on the screen will have a hard time seeing so many data
points. One way to resolve this is to cluster data into a higher-level view where smaller groups
of data become visible. By grouping the data together, or “binning,” you can more effectively
visualize the data.
ANALYTICS

5. Dealing With Outliers
The graphical representations of data made possible by visualization can communicate trends
and outliers much faster than tables containing numbers and text. Users can easily spot issues
that need attention simply by glancing at a chart. Outliers typically represent about 1 to 5
percent of data, but when you’re working with massive amounts of data, viewing 1 to 5 percent
of the data is rather difficult.
How do you represent those points without getting into plotting issues? Possible solutions are
to remove the outliers from the data (and therefore from the chart) or to create a separate
chart for the outliers. You can also bin the results to both view the distribution of data and see
the outliers. While outliers may not be representative of the data, they may also reveal
previously unseen and potentially valuable insights.
ANALYTICS

BUSINESS PERFORMANCE MANAGEMENT

• Business performance management is a set of performance management and analytic processes
that enables the management of an organization's performance to achieve one or more pre-
selected goals.
• A business management approach which looks at the business as a whole instead of on a
division level. Business performance management entails reviewing the overall business
performance and determining how the business can better reach its goals.
• This requires the alignment of strategic and operational objectives and the business' set of
activities in order to manage performance. Because BPM seeks to aggregate available
information, managers are more informed about the company's position and are able to make
better decisions.
WHAT IS BUSINESS PERFORMANCE MANAGEMENT?

• The business world is constantly evaluating its methods to find business processes that are more
efficient in terms of cost and the achievement of goals.
• The practice of creating metrics to measure performance is just one of the ways that business
owners and managers attempt to get a better return on investment for their business processes.
Business performance management is a way of monitoring the methods a company uses to
reach its goals and then using data to find better methods.
• The idea of monitoring management procedures to develop effective methods for reaching
goals has been around since business first began.
• Business performance management was developed as a way to streamline this monitoring
process and develop a more efficient way of achieving corporate goals.
UNDERSTANDING BUSINESS PERFORMANCE MANAGEMENT

Each business performance management monitoring program utilizes three
primary activities:
• Selection of goals
• Information Monitoring
• Managerial Adjustments
Each activity works with the other to help create a more efficient process. This is
an extremely dynamic system where each activity affects the other and they are all
working together to help develop better business processes.
THREE MAIN ACTIVITIES OF BPM

• The selection of goals is actually an ongoing process that can be altered by the results
that are achieved through intervention.
• The best place to start with any business performance management program is to set
corporate goals and then determine the policies and methods that will be used to
achieve those goals.
• Once the program is underway, the effects that changes have on the process will start
to alter the goals.
• If a managerial decision helped to increase productivity, then it may be necessary to
enhance the goal.
• The point of the goal is to give management a measuring stick to use when it comes to
determining success.
SELECTION OF GOALS

• The second activity involved in business performance management is
information monitoring, also known as information consolidation.
• This is the part of the process where the data is gathered and the data is
analysed and used to develop a better way to do business.
• The list of metrics used to create the data varies by company and by project, but
the data becomes a critical part of the performance
INFORMATION MONITORING

• Once the data has been reviewed, the management staff decides which
measures to take to increase efficiency and profitability.
• These changes are charted and the effects they have go back into the
information monitoring activity.
• It is critical that the adjustments made reflect the goals of the company.
• This can be tricky because the goals are not always financial.
• For example, if the goal is to improve employee job satisfaction by 20 percent,
then the actions taken by management would not necessarily require a financial
consideration.
MANAGERIAL ADJUSTMENTS

PERFORMANCE MEASUREMENT TOOLS
By
MIR ARSALAN QAZI

A balanced scorecard (BSC) is a performance measurement and
management approach that recognizes that financial measures by
themselves are not sufficient and that an enterprise needs a more
holistic, balanced set of measures which reflects the different drivers
that contribute to superior performance and the achievement of the
enterprise’s strategic goals. The balanced scorecard is driven by the
premise that there is a cause-and-effect link between learning, internal
efficiencies and business processes, customers, and financial results.
-Gartner
BALANCED SCORECARD

• It is a strategic planning and management system used to align
business activities to the vision and strategy of the organization by
monitoring performance against strategic goals.
• It was first published in 1992 by Robert S. Kaplan and David P.
Norton, a book followed in 1996.
• Traditional performance measurements that only focus on external
accounting data are obsolete.
• The approach is to provide 'balance' to the financial perspective.
• Gartner Group suggests that over 50% of large US firms have
adopted the BSC.1
BALANCED SCORECARD

• The Balanced Scorecard
model suggests that we view
the organization from 4
perspectives:
1. Financial
2. Internal Business Processes
3. Learning and Growth
4. Customer
• Develop metrics, collect data
and analyse it relative to each
of these perspectives
BUSINESS PERSPECTIVE

Financial
• What must we do to create sustainable economic value?
Internal Business Process
• To satisfy our stakeholders, what must our levels of productivity, efficiency,
and quality be?
Learning and Growth
• How does our employee performance management system, including
feedback to employees, support high performance?
Customer
• What do our customers require from us and how are we doing according
to those requirements?
BUSINESS PERSPECTIVE QUESTIONS

• Helps improve organizational performance by measuring what
matters
• Increases focus on strategy and results
• Aligns organization strategy with workers on a day-to-day basis
• Helps focus on the drivers key to future performance
• Improves communication of the organization’s Vision and Strategy
• Prioritises Projects / Initiatives
SIGNIFICANCE

MEASUREMENTS

• Six Sigma simply means a measure of quality that strives for near
perfection
• Six Sigma is a disciplined, data-driven approach and methodology for
eliminating defects (driving toward six standard deviations between the
mean and the nearest specification limit) in any process – from
manufacturing to transactional and from product to service
• The statistical representation of Six Sigma describes quantitatively how a
process is performing. To achieve Six Sigma, a process must not produce
more than 3.4 defects per million opportunities
WHAT IS SIX SIGMA?

• Lean management is an approach to running an organization that
supports the concept of continuous improvement, a long-term approach
to work that systematically seeks to achieve small, incremental changes in
processes in order to improve efficiency and quality.
• Lean management seeks to eliminate any waste of time, effort or money
by identifying each step in a business process and then revising or cutting
out steps that do not create value. The philosophy has its roots in
manufacturing.
LEAN MANAGEMENT

Guiding principles for lean management include:
• Defining value from the standpoint of the end customer.
• Identifying each step in a business process and eliminating those steps
that do not create value.
• Making the value-creating steps occur in tight sequence.
• Repeating the first three steps on a continuous basis until all waste has
been eliminated.
GUIDING PRINCIPLES

Waste is anything that doesn't add value to the end product. There are eight categories of
waste that should be monitored:
1. Overproduction – Are you producing more than consumers demand?
2. Waiting – How much lag time is there between production steps?
3. Inventory (work in progress) – Are your supply levels and work in progress inventories
too high?
4. Transportation – Do you move materials efficiently?
5. Over-processing – Do you work on the product too many times, or otherwise work
inefficiently?
6. Motion – Do people and equipment move between tasks efficiently?
7. Defects – How much time do you spend finding and fixing production mistakes?
8. Workforce – Do you use workers efficiently?
WASTE

• Lean management and Six Sigma are two concepts which share similar
methodologies and tools. Both programs are of Japanese origin, but they
are two different programs.
• Lean management is focused on eliminating waste and ensuring efficiency
while Six Sigma's focus is on eliminating defects and reducing variability.
• Lean Six Sigma first emphasizes the use of Lean methodologies and tools
to identify and remove waste and increase process velocity, then follows
that with the use of Six Sigma methodologies and tools to identify and
reduce or remove process variation.
LEAN SIX SIGMA

Six Sigma projects follow two project methodologies inspired by Deming's
Plan-Do-Check-Act Cycle:
• DMAIC (for existing processes)
• DMADV (for creating new processes)
METHODOLOGIES

DMAIC
The DMAIC project methodology has five phases:

1. Define: Document all that we know: define the target customer; map the
process flow, the parameters of this particular improvement project, the
project goals and targets, etc.
2. Measure: During this step, decisions are taken as to what metrics are going to
be used, and the measurement tools and criteria are also defined. In essence,
the current performance of the business process in question is measured. Data
is collected according to the measurement criteria.
3. Analyse: During this step, all the data gathered in the previous step is analysed
to ascertain the difference between the current process performance and the
targeted performance. Any variations in the process will also be scrutinised
and documented during this step. Various potential improvement
opportunities will present themselves, so these can also be scrutinised and
prioritised.
PHASES OF DMAIC

4. Improve: Improvement opportunities are further brainstormed. An
improvement plan is documented and implemented.
5. Control: This step ensures that new processes are adhered to in order to
sustain the improved process. Monitoring procedures should be
documented and become common-place. The process should be
reviewed from time to time to ensure the new methods are working
well. If further improvements are necessary, the DMAIC process can be
repeated.
PHASES OF DMAIC

DMADV
The DMADV project methodology has the following five phases:

1. Define: State the problem, specify the customer set, identify the goals,
and outline the target process.
2. Measure: Decide what parameters need to be quantified, work out the
best way to measure them, collect the necessary data, and carry out the
measurements by experiment.
3. Analyse: Identify performance goals and determine how process inputs
are likely to affect process outputs.
4. Design: Work out details, optimize the methods, run simulations if
necessary, and plan for design verification.
5. Verify: Check the design to be sure it was set up according to plan,
conduct trials of the processes to make sure that they work, and begin
production or sales.
PHASES OF DMADV

• Measurement during the application of Six Sigma involves recording the
quantifiable aspects of the process for further analysis.
• The activity of taking measurements must include all factors that could
bias the outcome.
• These factors are also assessed at this stage and are treated as variables of
an equation.
• In fact, measurement at the primary stages of Six Sigma application forms
a starting point that makes performance measurement at a later stage far
more meaningful.
PERFORMANCE MEASUREMENT USING SIX SIGMA

Improvement in Quality – In a Six Sigma environment, this particular category fits in
perfectly, as it simply is to calculate the number of defects. The defects are defined during
the initial application stages; therefore, the numbers can be compared without a problem.
Process Variability – One of the key components of the Six Sigma methodology is to
ensure that the process is as constant as possible, for the minimum number of defects.
Finances – Possibly the easiest quantifier, finances always are the most popular
performance measurement metric. After the application of Six Sigma, a company could
assess the cost factor of a process as compared to the unwieldy process previously in
place.
Acceleration of Process Time – Time is also a valuable resource, and streamlining
processes could potentially lead to a significant reduction in time. This is also an easily
quantifiable metric.
Assessment of Productivity – This performance metric essentially determines whether an
improved process utilizes available resources more efficiently, thereby generating more
product for less raw material.
PERFORMANCE MEASUREMENT METRICS

WHO IS THIS MAN?
Jack Welch
Former Chairman and CEO of General Electric
(From 1981 to 2001)
During his tenure, the company's value rose
4,000%
Jack Welch made Six Sigma central to his
business strategy at General Electric in 1995

THANK YOU

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