Professional Documents
Culture Documents
Intelligence - An Introduction
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Learning objectives
Understand the current enterprise system landscape
Understand the need for computerized support of managerial decision
making
Describe the business intelligence (BI) methodology and concepts and
relate them to decision support systems (DSS)
Understand the basic definitions and concepts of data warehouses
Learn different types of data warehousing architectures
Describe the processes used in developing and managing data
warehouses
Explain the role of data warehouses in decision support
Understand the all-encompassing nature of performance management
(BPM) and some of the best practices in planning and management
reporting
Understand the objectives and benefits of business analytics and data
mining, recognize the wide range of applications of data mining
Understand the issues in implementing BI and the relations with other
enterprise systems
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ERP systems
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Hub-and-spoke architecture
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Business Intelligence
Maria Iacob
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Definition of BI
BI is an umbrella term that combines
architectures, databases, analytical tools,
applications, and methodologies.
BI a content-free expression, so it means
different things to different people.
BI's major objective is to enable easy access to
data (and models) to provide business
managers with the ability to conduct data
analysis
BI helps transform data, to information (and
knowledge), to decisions and finally to action.
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BI process
Data
BI
Information
BI
Decision &
Action
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Why is BI necessary?
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Consumer
demand
Technology
Societal
DESCRIPTION
Strong competition
Expanding global markets
Blooming electronic markets on the Internet
Innovative marketing methods
Opportunities for outsourcing with IT support
Need for real-time, on-demand transactions
Desire for customization
Desire for quality, diversity of products, and speed of delivery
Customers getting powerful and less loyal
More innovations, new products, and new services
Increasing obsolescence rate
Increasing information overload
Social networking, Web 2.0 and beyond
Growing government regulations and deregulation
Workforce more diversified, older, and composed of more women
Prime concerns of homeland security and terrorist attacks
Necessity of Sarbanes-Oxley Act and other reporting-related legislation
Increasing social responsibility of companies
Greater emphasis on sustainability
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A High-level Architecture of BI
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The Architecture of BI
A BI system has four major components:
a data warehouse, with its source data
business analytics, a collection of tools for manipulating,
mining, and analyzing the data in the data warehouse;
business performance management (BPM) for monitoring
and analyzing performance
a user interface (e.g., dashboard)
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Components in a BI Architecture
The data warehouse is the backbone of any
medium-to-large BI system.
Originally, the data warehouse included only historical
data that was organized and summarized, so end
users could easily view or manipulate it.
Today, some data warehouses include access to
current data as well, so they can provide real-time
decision support
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Components in a BI Architecture
Business Performance Management (BPM),
which is also referred to as corporate
performance management (CPM), is a portfolio
of applications within the BI framework that
provides enterprises tools they need to better
manage their operations
User Interface (i.e., dashboards) provides a
comprehensive graphical/pictorial view of
corporate performance measures, trends, and
exceptions.
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A Brief History of BI
The term BI was introduced by the Gartner Group in the
mid-1990s
However, the concept is much older
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What is Automated
Decision Making?
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Rol van BI
Mission
Strategic decision
making (macro)
Vision
Strategy
Goals
Actions
Operational decision
making (micro)
Operations
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What is BI governance?
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Corporate governance
Corporate governance is the system by which business
corporations are directed and controlled.
The corporate governance structure specifies the distribution
of rights and responsibilities among different participants in
the corporation, such as the board, managers, shareholders
and other stakeholders, and spells out the rules and
procedures for making decisions on corporate affairs.
It provides the structure through which the company
objectives are set, and the means of attaining those
objectives and monitoring performance.
[OECD, Principles of Corporate Governance, 1999]
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A Cyclical Process of
Intelligence Creation And
Use
BI practitioners
often follow the
national security
model depicted in
this figure.
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Successful BI Implementation
Implementing and deploying a BI initiative is a
lengthy, expensive and risky endeavor!
Success of a BI system is measured by its
widespread usage for better decision making
CSFs:
1. Users
2. BI and Business Strategy
3. (nearly) Real-time BI
4. Integration & Security
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1. BI Users
The typical BI user community includes
All levels of the management hierarchy (not just the
top executives, as was for EIS)
Strategic and operational management
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3.Real-time, On-demand BI
The demand for real-time BI is growing!
Is real-time BI attainable?
Technology is getting there
Automated, faster data collection (RFID, sensors, )
Database and other software technologies (agent,
SOA, ) are advancing
Telecommunication infrastructure is improving
Computational power is increasing while the cost for
these technologies is decreasing
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Major BI Vendors
In recent years, the landscape of BI vendors has
changed
Cognos acquired by IBM in 2008
IBM also acquired SPSS in 2009
Microstrategy
May be the only independent large BI vendor
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Summary
Questions / Comments
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Learning objectives
Understand the current enterprise system landscape
Understand the need for computerized support of managerial decision
making
Describe the business intelligence (BI) methodology and concepts and
relate them to decision support systems (DSS)
Understand the basic definitions and concepts of data warehouses
Learn different types of data warehousing architectures
Describe the processes used in developing and managing data
warehouses
Explain the role of data warehouses in decision support
Understand the all-encompassing nature of performance management
(BPM) and some of the best practices in planning and management
reporting
Understand the objectives and benefits of business analytics and data
mining, recognize the wide range of applications of data mining
Understand the issues in implementing BI and the relations with other
enterprise systems
25/06/16
52