Beruflich Dokumente
Kultur Dokumente
Suman Bhushal
12063572
Table of Contents
1.
Introduction .................................................................................................................................... 1
1.1.
Background ..................................................................................................................................... 4
2.1.
3.
2.2.1.
2.2.2.
2.2.3.
2.2.4.
MicroStrategy.................................................................................................................. 6
2.3.
Uses of BI................................................................................................................................. 6
2.4.
Benefits of BI ........................................................................................................................... 7
2.5.
Drawbacks of BI....................................................................................................................... 7
Analysis ........................................................................................................................................... 8
3.1.
3.2.
3.3.
3.4.
Benefits of BI ......................................................................................................................... 12
3.4.1.
3.4.2.
Centralizes data............................................................................................................. 12
3.4.3.
3.4.4.
Shows where a business has been, where it is now and where it is going ................... 13
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3.4.5.
3.5.
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Drawbacks of BI..................................................................................................................... 13
3.5.1.
3.5.2.
Cost ............................................................................................................................... 13
3.5.3.
Complexity .................................................................................................................... 13
3.5.4.
3.6.
4.
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Conclusion ..................................................................................................................................... 15
4.1. Performance Management ........................................................................................................ 15
4.2. Future of BI ................................................................................................................................ 16
4.2.1. Mobile BI ............................................................................................................................. 16
4.2.2. Cloud BI ............................................................................................................................... 16
4.2.3. Collaborative BI ................................................................................................................... 16
4.2.4. Self service BI ...................................................................................................................... 16
4.2.5. Embedded BI ....................................................................................................................... 16
5.
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1. Introduction
Just as human society and civilization have evolved, business has also evolved over
time. In todays fast-moving and globalised world, businesses have benefited from
the advancement of Business intelligence. Business Intelligence (BI) gives
organizations a more structured way to look at data and helps them make better
business decisions and improve performance. According to surveys, if a decision is
made relying on data rather than pure intuition, the chances of success are 79%
higher (Tiwari, 2013).
Business intelligence (BI) is an umbrella term that refers to a set of theories,
methodologies, processes, architectures, and technologies for gathering, storing,
and transforming raw data into meaningful and useful information and for analyzing,
and providing access to data. Some of the objectives of BI technologies are as
follows:
a. Understanding of a firms internal and external strengths and weaknesses,
b. Understanding of the relationship between different data for better decision
making,
c. Detection of opportunities for innovation
d. Cost reduction
e. Optimal deployment of resources
f. Performance management. (Chow, 2012)
Business Intelligence (BI) offers decision support tools that monitor and analyze
business transaction processes in order to help organizations meet their business
goals. These goals may be operational goals that affect daily business operations,
tactical goals that involve short-term programs such as marketing campaigns, or
strategic goals that entail long-term objectives like increasing revenues and reducing
costs. (Gartner, 2013).
Some of the most common business intelligence tools in use today are:
a. Oracle Hyperion Solutions Corporation
b. Oracle Business Intelligence Suite Enterprise Edition
c. Microsoft Business Intelligence
d. IBM Cognos 10
e. MicroStrategy
1.1.
Basic Definitions
Data Warehouse
According to Bill Inmon A data warehouse is a subject-oriented, integrated, timevariant and non-volatile collection of data in support of managements decision
making process.
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1.2.
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The history of business is in many ways the history of human society and civilization.
The term Business Intelligence was first used in 1958 by IBM researcher Hans
Peter Luhn. The chart below lists several early BI systems, but BI usage didnt
become widespread until the late 90s when computer technologies had become very
advanced.
(Harris, 2012)
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2. Background
Business Intelligence technologies handle large amounts of information and provide
historical, current and predictive views of business operations. Making use of new
opportunities and implementing an effective strategy can provide a competitive
market advantage and long-term stability.
2.1.
(Chris, 2011)
2.1.1. Data Source Tier
Raw data can be acquired from two types of sources: internal and external and may
include structured, unstructured and semi-structured data. Internal data is captured
and maintained by operational systems inside an organization, such as sales,
accounting, purchasing, etc. External data originates outside an organization, such
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as from business partners, syndicate data suppliers, the internet, governments, and
market research organizations.
2.1.2. Enterprise Data Warehouse Tier
This layer focuses on the following four main processes:
2.1.2.1. ETL (Extract-Transform-Load)
ETL focuses on extraction, transformation and loading of data. Extraction is the
process of identifying and collecting relevant data from different sources.
Transformation is the process of converting the data using a set of business rules
into consistent formats for reporting and analysis. Data cleansing refers to the
process of identifying and correcting data errors. Once the data have been
transformed and cleansed, they are loaded into the target repository. This phase is
called the loading phase.
2.1.2.2. Operational Data Store (ODS)
ODS is used to integrate all data from the ETL layer and load them into data
warehouses. ODS is a database that stores subject-oriented, detailed, and current
data from multiple sources. Since the data stored in ODS are updated frequently, it is
useful for reporting require real time or near time information.
2.1.2.3. Data Warehouse
Data warehouse is a central storage that collects and stores data from internal and
external sources. Aside from that, data warehouses can be designed to support
OLAP (Online Analytical Processing) applications by storing and maintaining data in
multi-dimensional structures either by choosing snowflake or star schemas.
2.1.2.4. Data mart
A data mart is a subset of the data warehouse that is used to support analytical
needs of a particular business function or department. It contains historical data that
can help users to access and analyze different data trends of a particular
department.
2.1.3. BI Analytics Tier
BI Analytics Tier describes where data are being used and stored, the source of
data, what changes have been made to the data, and how one piece of data relates
to other information. There are many different types of BI analytics tools such as
OLAP, reports, data mining, etc.
The end user layer consists of tools (such as query and reporting tools, data
visualization tools and analytical application, etc.) that display information in different
formats for different users.
(Lih Ong, 2011)
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Explanation of BI tools
2.3.
Uses of BI
Faced with mounting pressure to enter new channels, changing consumer demands,
and continuing globalization, companies need information management solutions
that allow them to operate more efficiently, increase revenue and maximize the value
of information.
The following application areas use BI:
Retail (Sales) campaign management
Analytical CRM (Customer Relationship Management)
Inventory analysis (Manufacturing)
Distribution analysis (Manufacturing)
National security & crime analysis (Government)
Health & fraud detection (Government)
Call-behavior analysis (Telecom)
Finance (credit risk, liability management, value chain analysis)
These application areas use business intelligence software to report on, analyze,
and monitor the vast amounts of data using business intelligence architecture in
order to help companies reduce costs, increase revenue, and maximize the value of
information.
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2.4.
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Benefits of BI
2.5.
Drawbacks of BI
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3. Analysis
Business Intelligence (BI) is an analytical system that derives insight from the wealth
of data available and delivers information thats conclusive, fact-based and
actionable. Following is an analysis on two different companies:
3.1.
(IBM, 2013)
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2. Management can now drill down through nationwide products sales to see
information such as sales figures for certain regions or vendors with just a few
mouse-clicks.
3. New insights provided by IBM Cognos Express help the company to identify
opportunities to improve their time to market.
4. Cognos Express also makes it possible to perform ad hoc queries and
analyses in real time, providing deeper insights for business users. Therefore,
marketing and sales employees can crate and test their own hypotheses.
5. Self-service capabilities allow employees to create product management
reports themselves, without requiring the support of the IT department.
The solution provides a rapid overview of the market and our corporate
performance. In short, decision-makers have gained greater visibility than ever
before, says Foyer. The IBM solution has helped significantly reduce the amount of
time and labor involved in collecting and analyzing RIEMSERs operational data.
(IBM, 2013)
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Twiddy & Company rents vacations homes to families who visit the Outer Banks of
North Carolina in the summer. Twiddy & Co. has used Google Analytics for a long
time as their web analytics solution, and has always been impressed with its
capabilities.
Google Analytics is a service that generates detailed statistics about a websites
traffic and traffic sources and measure conversions and sales.
After implementing Google Analytics, in the slowest booking period of the season
and also during the slowest demand period of the year their revenue increased by
18.6%.
Not only did revenue increase, but the average order value also increased by 11.9%.
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With the increase in average order value, the conversion rate also increased by
7.9%.
(Google, 2013)
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Worldwide business intelligence (BI) software revenue totalled $13.1 billion in 2012,
a 6.8 percent increase from 2011 revenue of $12.3 billion, according to Gartner, Inc.
BI software revenue will reach $13.8 billion in 2013, and a 7 percent increase from
2012.The market is forecast to reach $17.1 billion by 2016.
The chart below compares the 2011 and 2012 market share of main BI vendors.
(Gartner, 2013)
3.4.
Benefits of BI
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3.4.4. Shows where a business has been, where it is now and where it is going
Business intelligence is very successful at explaining what has happened in a
business over a defined period of time. Business Intelligence can help a company
compare its strengths and weaknesses against its competitors; identify trends and
market conditions and respond quickly to change. It provides a more complete view
of customer buying habits and behavior, which helps executives plan for the future.
3.4.5. Improves data security
Using BI systems, data is accessed through a single password protected portal. This
improves the data security. Data access can be restricted by segmenting users
according to predefined groups.
3.5.
Drawbacks of BI
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3.6.
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(Verma, 2006)
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4. Conclusion
For companies to remain competitive in todays world requires analytically oriented
systems that can revolutionize a companys ability to rediscover and utilize
information they already own. Companies are able to gather more data about their
customers, products, sales channels, operations and suppliers than they can
effectively analyze. Also by having a good BI architecture, companies will be able to
maximize the value from their BI investments, and thereby meet their business
requirements and improve business performance.
As more and more companies adopt BI, it will be imperative for any company that
wants to stay competitive to adopt BI also.
In conclusion, with the help of BI, companies can make well-grounded decisions
based on real time data. Decisions that have a clear purpose and are backed by
strong analysis typically gain stronger organizational support.
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4.2. Future of BI
In this rapidly changing world, business leaders demand real-time BI that is always
accessible from anywhere at any time using any device. They want the right
information placed into the right hands precisely when it is needed.
Some of the BI trends that might have a major impact on the BI landscape are listed
below:
4.2.1. Mobile BI
In the future, BI will not be limited by device or location, it will be cross-platform,
offering instant access from all smart phones and tablets. Mobile BI will allow remote
users to gain access to information wherever they are and make decisions
immediately.
4.2.2. Cloud BI
The cloud is the future, although current adoption is slow. BI on the cloud promises
near 100% uptime and scalability without the time and money required to maintain
in-house hardware (Stangarone, 2013). Some organizations will adopt the Softwareas-a-Service model simply using the providers BI applications running in the cloud.
Other organizations will adopt the Platform-as-a-Service model leveraging the
providers platform to build their own BI applications.
4.2.3. Collaborative BI
Collaboration options will quickly become default features of BI applications as the
internet is the perfect collaboration platform. Collaborative BI allows users to find,
discuss, and rank the data, reports, and analyses that they find the most useful.
4.2.4. Self service BI
Tired on depending on IT for BI and reporting, end users are now bypassing the IT
department altogether to get what they want. To stop users from using outside
services, IT departments will have no choice but to deliver self-service BI options
that let users create the BI applications they require.
4.2.5. Embedded BI
While traditional BI is typically a standalone product, embedded BI integrates
analytics and reporting capabilities directly into users everyday business
applications. Essentially, embedded BI brings BI to the end users, working it into
their daily routine.
Therefore, in the future, the capabilities of BI will increase hand in hand with
consumer expectations.
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5. Works Cited
AberdeenGroup, 2006. The Warehouse Management Benchmark Report, 260 Franklin Street,
Boston, USA: Aberdeen Group, Inc.
Chow, K., 2012. TechRepublic. [Online]
Available at: http://www.techrepublic.com/blog/10-things/10-reasons-to-use-embeddable-bisolutions/
[Accessed 26 September 2013].
Chris, 2011. Dynacron Group. [Online]
Available at: http://www.dynacrongroup.com/blog/2011/04/bi-dw-architecture-fundamentals
[Accessed 4 October 2013].
Cokins, G., 2006. Information management. [Online]
Available at: http://www.information-management.com/news/1051320-1.html
[Accessed 20 October 2013].
Gartner, 2013. Gartner. [Online]
Available at: http://www.gartner.com/it-glossary/business-intelligence-bi/
[Accessed 27 September 2013].
Gartner, 2013. Gartner. [Online]
Available at: http://www.gartner.com/newsroom/id/2507915
[Accessed 10 October 2013].
Google, 2013. Google Analytics. [Online]
Available at:
http://static.googleusercontent.com/external_content/untrusted_dlcp/www.google.com/en//analy
tics/customers/pdfs/twiddy.pdf
[Accessed 9 October 2013].
Harris, C., 2012. Business Computing World. [Online]
Available at: http://www.businesscomputingworld.co.uk/the-history-of-business-intelligenceinfographic/
[Accessed 3 October 2013].
IBM, 2013. IBM. [Online]
Available at: http://www-01.ibm.com/software/success/cssdb.nsf/CS/STRD99XEXN?OpenDocument&Site=default&cty=en_us
[Accessed 8 October 2013].
Jain, S., 2011. Tools Journal. [Online]
Available at: http://www.toolsjournal.com/articles/item/186-top-10-business-intelligence-andanalytics-tools
[Accessed 6 October 2013].
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