business intelligence and analytics notes

BUSINESS
INTELLIGENCE
&
ANALYTICS
S

Business Intelligence:
Business intelligence refers to a collection of mathematical
models and analysis methods that utilize data to produce
valuable information and insight for making important
decisions.
Main Components of Business
Intelligence System:
 Data Source
 Data Mart / Data Warehouse
 Data Exploration
 Data Mining
 Optimization
 Decisions

1.Data Source:
To begin, the first step is
gathering and
consolidating data from
an array of primary and
secondary sources. These
sources vary in origin and
format, consisting mainly
of operational system data
but also potentially
containing unstructured
documents like emails and
data from external
providers.

2.Data Mart / Data Warehouse:
Through the utilization of
extraction and
transformation tools, also
known as extract, transform,
load (ETL), data is acquired
from various sources and
saved in databases designed
specifically for business
intelligence analysis. These
databases, commonly known
as data warehouses and data
marts, serve as a centralized
location for the gathered
data.

3.Data Exploration:
The third level of the pyramid offers essential
resources for conducting a passive analysis in
business intelligence. These resources include query
and reporting systems, along with statistical
methods. These techniques are referred to as
passive because decision makers must first develop
ideas or establish criteria for data extraction before
utilizing analysis tools to uncover answers and
confirm their initial theories. For example, a sales
manager might observe a decrease in revenues in a
particular geographic region for a specific
demographic of customers. In response, she could
utilize extraction and visualization tools to confirm
her hypothesis and then use statistical testing to
validate her findings based on the data

4.Data Mining:
The fourth level, known as active
business intelligence methodologies,
focuses on extracting valuable
information and knowledge from data.
Part II of this book will delve into
various techniques such as
mathematical models, pattern
recognition, machine learning, and
data mining. Unlike the tools discussed
in the previous level, active models do
not rely on decision makers to come up
with hypothesis but instead aim to
enhance their understanding.

5.Optimization:
As you ascend the
pyramid, you’ll encounter
optimization models that
empower you to choose
the most optimal course
of action among various
alternatives, which can
often be quite extensive
or even endless. These
models have also been
effectively incorporated in
marketing and logistics

6.Decisions:
At last, the pinnacle of the pyramid
reflects the ultimate decision made and
put into action, serving as the logical end
to the decision-making process. Despite
the availability and effective utilization of
business intelligence methodologies, the
decision still lies in the hands of the
decision makers, who can incorporate
informal and unstructured information
to fine-tune and revise the suggestions
and outcomes generated by
mathematical models.

Role Business
Intelligence:
The characteristics of a business intelligence analysis can be summarized by a
rational and methodical approach.
• Firstly, the objectives are clearly identified and performance indicators are
chosen to evaluate different options.
• Next, mathematical models are created by utilizing the connections between
control variables, parameters, and evaluation metrics.
• Finally, “what-if” scenarios are explored to understand the impact of
changing control variables and parameters on performance.

Process Used in Business Intelligence:
BI(Business Intelligence) uses a set of processes, technologies, and
tools (such as Informatica/IBM) to transform raw data into
meaningful information and then transform information to provide
knowledge. Then afterward some beneficial insights can be extracted
manually and by some software then the decision-makers can make
an impactful decision on the basis of insights.

To sound short and clear – Business Intelligence about provides accurate information in
the right and ethical format to the decision-makers of the organization. Some Important
features of Business Intelligence are:
•Fact-based decision making.
•360 degrees perspective on your business.
•Virtual team members are on the same page.
•Measurement for creating KPI (Key Performance Indicators) on the basis of historic data
fed into the system.
•Identify the benchmark and then set the benchmarks for different processes.
•Business Intelligence systems can use to identify market trends and also to spot business
problems that need to be identified and solved.
•Business Intelligence helps in data visualization will increase the quality of data and then
also increases the quality of decision making.
•Business Intelligence systems can be used by large enterprises, and organizations along
with Small and Medium Enterprises, because it is quite affordable.

Types of Users of Business Intelligence:
•Analyst (Data Analyst or Business Analyst): They are the
statistician of the company, they used BI on the basis of historical
data priorly stored in the system.
•Head or Manager of the Company: Head of the company uses
Business Intelligence used to increase the profitability of their
company by increasing the efficiency in their decisions on the
basis of all the knowledge they discovered.
•IT Engineer: For his company.
•Small Business Owners: Can be used by a small businessman
because it is quite affordable too.
•Government Officials: In the decision-making of the
government.

Types of Decisions Supported by Business Intelligence:
•Strategic Level: The strategic level is the level where the
Heads of the company decide the strategies of any business.
•Tactical Level: Once the strategy is made though for handling
all the details and matters have a tactical level where all the
technologies and methodologies come under one umbrella.
This level is further responsible for continuously updating the
data.
•Operational Level: Operation decisions are made at this level.

Applications of Business Intelligence:
•In Decision Making of the company by decision-makers of the
organizations.
•In Data Mining while extracting knowledge.
•In Operational Analytics and operational management.
•In Predictive Analytics.
•In Prescriptive Analytics.
•Making Structured data from unstructured data.
•In Decision Support System.
•In Executive Information System (EIS).

1.Tableau: A business intelligence and data visualization application that enables users to connect to
different data sources, build interactive dashboards, and share findings with others.
2.Microsoft Power BI: A cloud-based business intelligence program that enables users to connect to a
variety of data sources, produce visualizations, and communicate findings.
3.QlikView is a business intelligence and data visualization platform that enables users to build interactive
dashboards and examine data in novel ways.
4.Data visualization, reporting, and analytics tools are all included in SAP BusinessObjects, a complete
business intelligence suite.
5.IBM Cognos: A tool for performance management and corporate intelligence that enables users to build
reports, scorecards, and dashboards.
6.Data visualization, reporting, and analytics technologies are all part of the full business intelligence suite
known as Oracle Business Intelligence.
7.Create dynamic dashboards and reports with MicroStrategy, a business intelligence and data visualization
tool.
8.Data visualization, reporting, and analytics tools are all part of the full business intelligence suite known
as SAS Business Intelligence.
9.TIBCO Spotfire is a business intelligence and data visualization platform that enables users to build
interactive dashboards and investigate data in novel ways.
10.Looker: A tool for business intelligence and data visualization that enables users to build interactive
dashboards and investigate data in novel ways.
Business Intelligence Tools and Software

Advantages of Business Intelligence
1.Decision-making is improved because users have access to real-time data and insights through business
intelligence tools. This enables users to base their decisions on correct and current information.
2.Efficiency gain: Many manual data analysis operations are automated by business intelligence systems,
freeing up time and resources for other tasks.
3.Better data management: Business intelligence technologies aid in the administration and organization of
data, making it simpler to locate the facts required for decision-making.
4.Greater visibility: Business intelligence solutions give users a comprehensive picture of the functioning of
the firm, enabling them to spot areas that could use improvement.
5.A better understanding of customers: Business intelligence technologies helps firms understand their
customers better, enabling them to customize products and services to suit their needs.
6.Cost savings: Business intelligence technologies assist firms in locating inefficiencies and cost savings,
which boosts revenue.
7.Better forecasting: Organizations may evaluate past data and predict future patterns using business
intelligence technologies, which enables them to plan more successfully for the future.
8.Competitive advantage: By granting access to important data and insights that can guide them in making
better decisions, business intelligence technologies provide firms a leg up on their rivals.
9.Collaboration is improved as a result of using business intelligence technologies to disseminate information
between teams and departments. This promotes better decision-making and collaboration.
10.Better Monitoring: Business intelligence technologies assist firms in tracking important metrics like
revenue, customer happiness, and staff performance and in monitoring performance.

Complexity: The implementation and upkeep of business intelligence systems can be extremely difficult
and complicated. This may be a drawback for companies with constrained IT resources.
High costs: Some businesses find it prohibitively expensive to implement and purchase business
intelligence technologies.
Business intelligence strongly depends on accurate and current data. The insights produced by business
intelligence technologies could not be accurate if the data is inconsistent, erroneous, or incomplete.
Data Security: Business intelligence systems handle and store a lot of sensitive data, which, if not
adequately protected, is susceptible to security breaches.
Dependence on IT: Because business intelligence solutions frequently rely largely on IT assistance, it
may be challenging for enterprises to quickly get the data they require.
Limited scalability: For firms with huge data volumes, business intelligence solutions may not be able
to handle enormous amounts of data.
Disadvantages of Business Intelligence

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