BI_Ch03.ppt

Introduction to Business Analytics
Chapter 3:
Business Analytics and Data Visualization

 Business Analytics
The use of analytical methods, either
manually or automatically, to derive
relationships from data
 Remember that we defined business
analytics (BA) to include the access,
reporting, and analysis of data supported
by software to drive business performance
and decision making
The Business Analytics (BA) Field:
An Overview

The Business Analytics (BA) Field: An
Overview

 MicroStrategy’s classification of BA
tools: The five styles of BI
1. Enterprise reporting
2. Cube analysis
3. Ad hoc querying and analysis
4. Statistical analysis and data mining
5. Report delivery and alerting
An Overview

 SAP’s classification of strategic
enterprise management
 Three levels of support
1. Operational
2. Managerial
3. Strategic
An Overview

 Executive information and support
systems
 Executive information systems (EIS)
Provides rapid access to timely and relevant
information aiding in monitoring an
organization’s performance
 Executive support systems (ESS)
Also provides analysis support,
communications, office automation, and
intelligence support
An Overview

 Drill-down
The investigation of information in detail
(e.g., finding not only total sales but also
sales by region, by product, or by
salesperson). Finding the detailed
sources
An Overview

 Online analytical processing (OLAP)
An information system that enables the
user, while at a PC, to query the system,
conduct an analysis, and so on. The
result is generated in seconds
Online Analytical Processing (OLAP)

 OLAP versus OLTP
 OLTP concentrates on processing repetitive
transactions in large quantities and
conducting simple manipulations
 OLAP involves examining many data items
complex relationships
 OLAP may analyze relationships and look
for patterns, trends, and exceptions
 OLAP is a direct decision support method
Online Analytical Processing (OLAP)

Reports and Queries
 Reports
 Routine reports
 Ad hoc (or on-demand) reports
 Multilingual support
 Scorecards and dashboards
 Report delivery and alerting

Reports and Queries
 Ad hoc query
A query that cannot be determined prior to
the moment the query is issued
 Structured Query Language (SQL)
A data definition and management
language for relational databases. SQL
front ends most relational DBMS

Multidimensionality
 Multidimensionality
The ability to organize, present, and
analyze data by several dimensions, such
as sales by region, by product, by
salesperson, and by time (four dimensions)
 Multidimensional presentation
 Dimensions
 Measures
 Time

Multidimensionality
 Multidimensional database
A database in which the data are
organized specifically to support easy and
quick multidimensional analysis
 Data cube
A two-dimensional, three-dimensional, or
higher-dimensional object in which each
dimension of the data represents a
measure of interest

Multidimensionality
 Cube
A subset of highly interrelated data that is
organized to allow users to combine any
attributes in a cube (e.g., stores, products,
customers, suppliers) with any metrics in
the cube (e.g., sales, profit, units, age) to
create various two-dimensional views, or
slices, that can be displayed on a
computer screen

Advanced Business Analytics
 Data mining and predictive analysis
 Data mining
 Predictive analysis
Use of tools that help determine the probable
future outcome for an event or the likelihood of
a situation occurring. These tools also identify
relationships and patterns
 Several data mining tools will be
discussed later

Data Visualization
 Data visualization
A graphical, animation, or video
presentation of data and the results of data
analysis
 The ability to quickly identify important trends
in corporate and market data can provide
competitive advantage

Geographic
Information Systems (GIS)
 Geographical information system (GIS)
An information system that uses spatial
data, such as digitized maps. A GIS is a
combination of text, graphics, icons, and
symbols on maps

Geographic
 As GIS tools become increasingly
sophisticated and affordable, they help
more companies and governments
understand:
 Precisely where their trucks, workers, and
resources are located
 Where they need to go to service a customer
 The best way to get from here to there

Geographic
 GIS and decision making
 GIS applications are used to improve decision making
in the public and private sectors including:
• Dispatch of emergency vehicles
• Transit management
• Facility site selection
• Drought risk management
• Wildlife management
 Local governments use GIS applications for used
mapping and other decision-making applications

Geographic
 GIS combined with GPS
 Global positioning systems (GPS)
Wireless devices that use satellites to enable
users to detect the position on earth of items
(e.g., cars or people) the devices are attached
to, with reasonable precision

Geographic
 GIS and the Internet/intranets
 Most major GIS software vendors provide Web
access that hooks directly to their software
 GIS can help the manager of a retail operation
determine where to locate retail outlets
 Some firms are deploying GIS on the Internet for
internal use or for use by their customers (locate the
closest store location)

Real-Time BI
 The trend toward BI software producing
real-time data updates for real-time
analysis and real-time decision making is
growing rapidly
 Part of this push involves getting the right
information to operational and tactical
personnel so that they can use new BA
tools and up-to-the-minute results to make
decisions

Real-Time BI
 Concerns about real-time systems
 An important issue in real-time computing is
that not all data should be updated
continuously
 when reports are generated in real-time
because one person’s results may not match
another person’s causing confusion
 Real-time data are necessary in many cases
for the creation of ADS systems

BA and the Web: Web
Intelligence and Web Analytics
 Using the Web in BA
 Web analytics
The application of business analytics
activities to Web-based processes,
including e-commerce

BA and the Web: Web
Intelligence and Web Analytics

Usage, Benefits,
and Success of BA
 Usage of BA
 Almost all managers and executives can use
some BA systems, but some find the tools too
complicated to use or they are not trained
properly.
 Most businesses want a greater percentage of
the enterprise to leverage analytics; most of
the challenges related to technology adoption
involve culture, people, and processes

Usage, Benefits,
and Success of BA
 Success and usability of BA
 Performance management systems (PMS) are
BI tools that provide scorecards and other
relevant information that decision makers use
to determine their level of success in reaching
their goals

Usage, Benefits,
and Success of BA
 System development and the need for
integration
 Developing an effective BI decision support
application can be fairly complex
 Integration, whether of applications, data
sources, or even development environment, is
a major CSF for BI

BI_Ch03.ppt

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