Business Intelligence: A company

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Business IntelligenceA companys CIA?
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Business Intelligence

• Get more knowledge about your business
• Why?

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Why?

• to make better decisions
• ? Need for BIA

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Definition

• BI refers to skills, knowledge, technologies,
  applications, quality, risks, security issues and
  practices used to help a business to acquire a
  better understanding of market behaviour and
  commercial context.
• For this purpose it undertakes the collection,
  integration, analysis, interpretion and
  presentation of business information

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Corporate Performance Management CPM

• All of the processes, methodologies, metrics and
  systems needed to measure and manage the
  performance of a company.

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Flexibility innovation

• Companies need accurate knowledge to make the
  right decision fast

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Speed of decision making
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Not enough information?
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Information easy accessible?
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Amount of information managers receive that has
no value

• 0 30
• 30 50
• Over 50

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Amount of information managers receive that has
no value

• 0 30
• 30 50
• Over 50

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How much time do managers waste each day,
searching for information?

• 0 30 min
• 1 3 hr
• gt 3 hr

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How much time do managers waste each day,
searching for information?

• 0 30 min
• 1 3 hr
• gt 3 hr

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What of managers accidently use the wrong
information, at least once a week?

• 0 30
• 30 50
• Over 50

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What of managers accidently use the wrong
information, at least once a week?

• 0 30
• 30 50
• Over 50

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And some more facts

• 7 to 20 of an employees time is spent
  replicating answers for others
• 6 to 12 of an employees time is spent locating
  information resources
• lt 20 of the knowledge available to the company
  is actually utilised
• 50 of files and e-mails are stored in the wrong
  folders

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Cost of inproductivity?

• Direct cost is 39 to 100 per day per employee
• Indirect cost much higher!

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What Are Key Performance Indicators (KPI)?

• Key Performance Indicators are quantifiable
  measurements, agreed to beforehand, that reflect
  the critical success factors of an organization.

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Information? To know what? KPIs

• Key Performance Indicators
• Only Key when it is of fundamental importance in
  gaining competitive advantage and is a make or
  break component in the success or failure of the
  enterprise.
• Only relating to Performance when it can be
  clearly measured, quantified and easily
  influenced by the organisation. For example,
  weather influences many tourist related
  operations but the organisation cannot
  influence the weather. Sales growth may be an
  important performance criteria but targets must
  be set that can be measured.
• Only an Indicator if it provides leading
  information on future performance.
• Example
• Load factor gt 80 per month
• Time to market for new products lt 2 months

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CSF critical success factor

• something that needs to be in place to achieve
  the KPI objective
• Critical factors/activities for success in your
  business
• Example
• install a help desk for handling complaints
• Short time to market for new products

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KPI in your dashboard

• Which KPIs for your airline/hotel?

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BI gap
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Better and faster decisions
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Business Intelligence

• Offers clear and relevant information and
  powerful analysis tools
• To whom?

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Used by whom?

• By all managers to make the right decisions in a
  timely manner

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Business Intelligence

• is a system that uses application software and
  other technologies to
• gather
• store
• analyze
• and provide access to data.
• the process of enhancing data into information
  and then into knowledge.

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Business Intelligence

• allows people to
• use corporate data to support decision-making
• explore and analyze data to reveal trends within
  a business.

q
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About the importance of BI .
ICT managers consider Business Intelligence as
their 1st priority of 2011 !
75 of the services sector have BI-software.
This will increase. Even the public sector,
education and the health care follow.
Evolution from transaction driven to knowledge
driven steering of companies.
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BI technical overview

Business Intelligence Intensive Program
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ETL definition

• Extract, Transform, and Load (ETL) is a process
  in data warehousing that involves
• extracting data from outside sources
• transforming it to fit business needs (which can
  include quality levels)
• loading it into the end target, i.e. the data
  warehouse

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OLAP

• Enables managers to interrogate consolidated data
  interactively
• Analytical operations include
• Consolidation (aggregation of data)
• Drill-down (and display detail data)
• Slicing and dicing (look at database from
  different viewpoints)

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Product Chocolate
Concept of a Cube or Pivot Table
Date May 2008
Region South East
Measure Sales

Date
Region
Product
How much Chocolate did we sell in the South East
in May 2008?
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Sales example BI Questions

• What happened?
• What were our total sales this month?
• Whats happening?
• Are our sales going up or down, trend analysis
• Why?
• Why have sales gone down?
• What will happen?
• Forecasting What If Analysis
• What do I want to happen?
• Planning Targets

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Related to
CRM
DM
KM
CPM
BSC
ManagementCockpit
DWH
ERP
EIS
DSS
OLAP,MDDB
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How Data Analysis has Affected Enterprise
Performance Over Time
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Tool categories BI

• OLAP (Online Analytical Processing) sometimes
  simply called "Analytics"
• Data warehouses
• Data marts
• Data mining (DM)
• Business Performance Management (BPM)
• Scorecarding, Dashboarding and Information
  visualization
• Text mining
• Executive Information Systems (EIS)
• Decision Support Systems (DSS)

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Manager as a pilot
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Management Cockpit
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Dashboards - A High-Level View for Executives and
Managers
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Dashboard (1)
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Dashboard (2)
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• Reporting WHAT is
• Olap (On Line Analytical Processing) WHY is
• Visualisation HOW is
• Data Mining /Textmining WHERE is

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What-if and forecasting

• Actions pre calculations to gain insight in
  consequences
• what-if company specific correlations in
  scenarios
• forecasting predict future results based on
  historical data

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The BI vendors since 2008 Strategic Partnerships
PerformancePoint Server
SAS Activity-Based Management  SAS Financial
Management  SAS Profitability Management  SAS
Strategic Performance Management 
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Gartner Reference Business Intelligence
Platforms, 2009
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Gartners magic quadrant 2011

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What does Gartner say?

• BI-platforms allow organisations to build
  applications that allow them to better understand
  their business.
• Gartner describes leaders as suppliers who are
  strong concerning coverage and depth of the
  functionality of their BI platform and who
  realise company-wide implementations, supporting
  a wide BI-strategy.
• They offer a clear proposal for woldwide
  implementation

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Evolution of BI

• In the 1990s BI was tactical
• In the 2000s it has become strategic
• Next stage will be ubiquity
• BI _at_

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BI _at_

• Infrastructure provided centrally by IT
• Standard across the organisation
• All users make use of it
• Access outside and inside the organisation
• Unthinkable not to have it
• Business Intelligence just like e-mail

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Criminal network activity
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Gang network
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Drill down / Roll up
Drill down Zoom into the Information Use
hierarchies -gt Go from Europe to Netherlands to
Eindhoven Roll Up Zoom out Opposite direction
-gt Go from Eindhoven to Netherlands to Europe

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Drill down / Roll up
Drill down example

• Problem There is a sudden drop in sales last
  month
• Look at the sales numbers for an explanation
• Drill down to the different product types
• The ice cream products sold significantly lower
  on some days then on others
• Drop in some days due to bad weather

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OLAP database size

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OLAP database size

Average number of Products 15
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OLAP database size
Albert Heijn
Average number of Products 15
Average time to checkout 1 min
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OLAP database size
Albert Heijn
Average number of Products 15
Average time to checkout 1 min
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OLAP database size
Albert Heijn
Average number of Products 15
Average time to checkout 1 min
Average amount of checkouts 5 (open all day)
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OLAP database size
Albert Heijn
Average number of Products 15
Average time to checkout 1 min
Average amount of checkouts 5 (open all day)
15 (1 60 12) 5 ?
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OLAP database size
Albert Heijn
Average number of Products 15
Average time to checkout 1 min
Average amount of checkouts 5 (open all day)
15 (1 60 12) 5 54.000
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OLAP database size
Albert Heijn
Average number of Products 15
Average time to checkout 1 min
Average amount of checkouts 5 (open all day)
15 (1 60 12) 5 54.000
54.000 800 ?
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OLAP database size
Albert Heijn
Average number of Products 15
Average time to checkout 1 min
Average amount of checkouts 5 (open all day)
15 (1 60 12) 5 54.000
54.000 800 43.200.000
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OLAP database size
Albert Heijn
Average number of Products 15
Average time to checkout 1 min
Average amount of checkouts 5 (open all day)
15 (1 60 12) 5 54.000
54.000 800 43.200.000
43.200.000 356 ?
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OLAP database size
Albert Heijn
Average number of Products 15
Average time to checkout 1 min
Average amount of checkouts 5 (open all day)
15 (1 60 12) 5 54.000
54.000 800 43.200.000
43.200.000 356 ?
15.379.200.000
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Reports
Routine / Ad Hoc

• Routine
• Weekly sales figures
• Daily production numbers
• Hours worked each month
• Ad Hoc
• Why do our sales drop in September?
• Which products sells the best?
• ?

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Slicing Dicing
Slicing
All sales numbers only for NL / Europe / Eindhoven
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Slicing Dicing
Dicing
All sales numbers only for NL BE AND Only for
Internet and mail order sales
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