Beruflich Dokumente
Kultur Dokumente
Bogdan NEDELCU
University of Economic Studies, Bucharest, Romania
bogdannedelcu@hotmail.com
The aim of this article is to show the importance of business intelligence and its growing
influence. It also shows when the concept of business intelligence was used for the first time
and how it evolved over time. The paper discusses the utility of a business intelligence system
in any organization and its contribution to daily activities. Furthermore, we highlight the role
and the objectives of business intelligence systems inside an organization and the needs to
grow the incomes and reduce the costs, to manage the complexity of the business environment
and to cut IT costs so that the organization survives in the current competitive climate. The
article contains information about architectural principles of a business intelligence system
and how such a system can be achieved.
Keywords: Business Intelligence, Data warehouse, OLAP
one and then in started the reversed systems took birth in the late 80s the
process. Unfortunately, all these steps concepts of data warehouse, OLAP (on-
wore only complicating the process of Line Analytical Processing) and business
analyzing and elaborating reports. intelligence. [3]
A solution was necessary in that moment. In 1989, Howard Dresner used the term of
Big companies realized that they can’t business intelligence to group under the
keep up with their competitors. More and same topic all methods and techniques
more complex products wore appearing on used for taking decisions which wore
the market. Exploiting precious resources based on solid facts. Starting with the 90s,
like a company’s historical data needed to the frequency of using the business
be approached with a new technique. It intelligence term has increased even more.
was just a matter of time until the The 1990s represented a formative period
conceptual answer and the technical one for business intelligence applications and
appeared, and that answer was business products [4]. During this period,
intelligence systems. organizations realized that they needed
The business intelligence term was used arrange of business intelligence
for the first time in 1958, when Hans Peter capabilities to satisfy a diverse set of user
Luhn used it in an article. Business needs. Ultimately, this range could be
intelligence, as it is known today, it’s grouped into five distinct categories or
supposed to be developed form decision “Styles of Business Intelligence”
support systems which evolution begun in applications. The 5 styles of Business
the late 60s, reaching a major point in the Intelligence applications include:
middle 80s. Decision support systems had a) Data Mining and Advanced Analysis
their origin within computer assisted b) Visual and OLAP analysis
models which wore created with the c) Enterprise Reporting
purpose of helping company management d) Dashboards and Scorecards
in taking decisions and performance e) Mobile Apps and Alerts
scheduling. From these decision support
Business intelligence comes with a various tools for complex reports and
solution to all these. dashboards. There are various methods for
A business intelligence system is a mix of harvesting data (data mining), and the
technologies and concepts that are OLAP (On-Line Analytical Processing)
specially designed to help managers take technology is, usually, the mainstay of a
decisions. How does an informatic system business intelligence system.
really help? As we said before, the data
owned by an organization is an important 3. The Role and Objectives of Business
and useful source of information. Based on Intelligence Systems inside an
these data you can generate reports, Organization
predictions, sale charts or establish the best Business intelligence solutions bring added
market segment. Unfortunately, a company value inside enterprises, serving as a base
cannot always store its data in transactional for making fundamental changes, new
databases, because their volume would collaborations, acquiring new customers,
significantly slow the data processing time. creating new markets.
Therefore, many companies choose to
implement a business intelligence system.
The business intelligence system’s role
A business intelligence system is based, in
in taking decisions
90% of the cases, on the implementation of
At a strategic level, business intelligence
a different database then the transactional
makes possible the establishing of
one. Usually, the implemented database for
objectives in a precise mode and following
such a system will have huge dimensions,
their achievement, allowing different
being installed on machines with high
comparative reports, also performing
processing capacity and it will be designed
growth simulations or forecasting the next
for massive queries. All data relevant to
result on the base of some assumptions.
the business analyze will be inserted in this
At a tactic level, the business intelligence
database. The basic data on which ideas
system can offer a base for making
can be stated and from which relevant
marketing, sales, finances, income or
information for the organization is
management decisions. The systems allow
extracted, is established in the analyzing
the optimization of future actions and
and designing stage of a business
performance modifiers on an
intelligence system.
organizational aspect, financial or
Certainly, not the entire data of an
technologic on the purpose to help
organization will be relevant for analyze.
enterprises to reach their strategic
A part of the data will be filtered, precisely
objectives in a more efficient way.
to provide the answers that analysts look
Regarding the operational level, business
for. Once the data that needs processing
intelligence solutions are used in
and their transactional system location is
establishing the ad-hoc analyzing and
established, the database design for the
answering questions related to suppliers
business intelligence system can start. This
cooperation, clients and operations already
special database, having the purpose to
in developing inside each department.
store the historical data, is built as a data
The main objectives of the business
warehouse or as a data concentration.
intelligence systems are resumed shortly in
Developing and implementing an historical
the next figure:
database it’s not enough for providing
business intelligence. This data must be
Using business intelligence solutions
exploited so that information is extracted.
Major software companies have developed
16 Business Intelligence Systems
analysis to alerting to mobile apps. This added to the platform in a way that it can
allows customers to initially buy just the be easily available from any user interface.
functionality they need, and to This philosophy enables business users to
incrementally grow their business seamlessly change their interface to access
intelligence solution as their requirements critical business reports without losing any
naturally expand. functionality. These requirements are from
long-time customers who invested in high-
e) Openness and Extensibility scale business intelligence applications.
All design decisions must ensure that the Today, the goal of these same customers is
strategy’s vast functionality continues to to host many diverse business intelligence
be fully accessible through Web services applications on a Cloud instance, or make
APIs. these applications Mobile. The
architectural tenets discussed earlier ensure
f) Centralized Consistency with their long-term success in this process.
Distributed Governance and Self-service
All design decisions must support the goal 5. Achieving a Business Intelligence
of a consistent single version of the truth System
throughout the enterprise using a single When a company decides to implement a
shared metadata and pervasive security system for business intelligence, it’s good
architecture. Yet, the architecture must to consider that the implementation of this
also provide a high degree of autonomy to kind of technology is based on a very long
distributed development teams (managed and laborious process. Usually, just the
by departments and divisions), and to analyzing stage can take a year, of course,
individual users allowing them to create considering the size of the organization
enterprise-consistent solutions at a local and the complexity of the business behind.
level. Another very important aspect to mention
is the one of high costs that the developing
g) Rapid Development and Deployment of such a system involves; according to the
All design decisions must promote rapid statistics, the amortization of developing
development and deployment of new costs of a business intelligence system is
reports and applications. Some developers done in a few years.
have invested significant engineering a) Transactional systems as a data source
energy in creating a vast array of reusable The first stage in any business intelligence
metadata objects, by creating a security system is always the analyzing stage. In
architecture that is applied automatically this first stage, the aims of the business
and pervasively with no effort on the part intelligence system are set. As we
of the report designer, and through design mentioned before, any organization has a
paradigms that allow novices and experts mix of operational systems, also known as
to play a role in accelerating the report OLTP Systems (On Line Transactional
design process. Processing Systems). These systems are
usually used to process the company’s
h) Consistent Experience current transactions and can be used for
Developers continuously work towards managing clients, sales or suppliers. These
providing the same business intelligence can be ERP (Enterprise Resource
experience from any user interface– Planning), CRM (Customer Relationship
desktop, web browsers, or mobile devices. Management), POS (Point Of Sale)
Any feature, however simple it may be, is Systems, etc. Usually, these source
18 Business Intelligence Systems
systems keep the data for a limited time organization, specific to a certain group of
and afterwards the data is being archived. users, being limited to specific subjects.
Studies in business intelligence field The data contained by those data
revealed that exploiting transactional data concentrations, are usually aggregate data.
leads to a useful business analyze. The The virtual warehouse is “a set of visions
transactional data becomes a data source of the operational databases” [7], being
for the data warehouse, another important easy enough to implement, but needing
component of the business intelligence supplementary capacities on the data
system. Depending on the organizations, servers.
business intelligence needs and the A data warehouse usually contains
systems purpose, external data, such as aggregate data, detailed data and metadata.
other organizations data or statistic data, Aggregate data, even they determine a rise
can be selected as reliable data source. At of data redundancies, are necessary in a
the end of the analyzing stage, analysts data warehouse, because they improve the
must have a general point of view over the systems average response time. These
organization targets. assume a point of prior processing, so that
they will be ready for the management’s
b) Data warehouses needs: they can be consolidated, totalized,
The analyzing and implementation phase summarized.
of the data warehouses, it’s for sure the Detailed data is the relative recent data,
most important phase in developing the delivered to the user, usually to execution
business intelligence system and it’s level.
closely correlated with other phases. In this
stage, it will established how the ETL c) Extracting, Transforming and Loading
process is going to be realized, how it will Data
be implemented the OLAP cube or in what The ETL (Extract, Load, Transform) is one
technology will the reports be made in. [5] of the main components of a business
So, a data warehouse is still a database, intelligence system, on which it depends in
mostly relational, which is implemented highly measure, the data accuracy the
differently than the standard databases and organization will analyze. [8]
contains historical data of a certain The data extraction will be a very
interest. Ralph Kimball, known for his laborious process and many times can be a
interest in business intelligence, defined challenge for developers, because this
the data warehouse as “a copy of stage depends on the good functioning of
transactional systems, especially structured the business intelligence system. Data
for querying and analysis”. [6] which will be extracted in this stage is the
Depending on the coverage, the one loaded in the data warehouse and on
warehouses can be divided in Enterprise which the transformations and reports will
Warehouse, Data Marts and Virtual be made in the next stages. For this reason,
Warehouses. The Enterprise Warehouse it is very important that the data is
collects all the information, which regards correctly extracted from the source files.
the whole organization. Usually, this Most of the times, the data is constituted
provides very big volumes of data, from data files (flat files), exported from
containing detailed data, and also relational databases, but there are
aggregates data, and as dimensions, most situations in which external data has to be
of the times it reaches tens of terabytes. loaded in the data warehouse. The big
Data concentrations or data marts contain challenge is the transformation process of
only a subset of the data volume from the all the data resources in one single type,
Database Systems Journal vol. IV, no. 4/2013 19
accepted by the data warehouses. The ETL meaning that data is aggregated and as a
process, during its extraction phase, will multidimensional cube.
take care of this problem. It will “inspect” At present there are different types of
the data files, will check if they are in a OLAP analyzing, and the software
certain format, will load the data in an developers come with multiple
initial database and will reject all the technologies for multidimensional analyze.
incorrect data. A first data filter that is to OLAP analyzing instruments allow the
be loaded is made in this first stage. elaboration of complex reports, but for
The data transformation stage is made viewing the reports special designed
from a set of rules and functions that apply instruments can be used.
to the extracted data in the first step. The
purpose of this process is to prepare the Conclusions
data for the loading stage. Depending on
Business intelligence is, at this time, one of
the business intelligence system
IT fields with continuous improvements.
requirements, this stage can imply very
Starting with basic theoretical notions and
complex transformations of the extracted
ending with the new technologies that are
data, or, on the contrary, they can be very
developing this way, business intelligence
little refined; all depend, of course, on
concepts are in the sight of all IT people.
what the systems has to fulfill.
As we mentioned before, business
The transformation stage is, like the data
intelligence appeared as an answer to the
extraction stage, a very laborious and
economics’ environment needs. Big
challenging process, being one of the key
organizations and multinational companies
stages in implementing a business
have already implemented a solution for
intelligence system. In this stage the data
business intelligence. Though
transforms in relevant information for the
implementing this kind of system is
organizations management.
extremely laborious and expensive, the
The data loading stage represents the last
benefits proved to be many more. As it
of the three ETL subsystem stages and it
was proven in the paper, integrating
consists in loading data in the target tables.
storing and exploiting an organization’s
Of course that during this stage, the
data can bring important advantages.
situation can be different from an
The main advantage in using business
organization to another, depending on the
intelligence is the ability to transform data
business requirements. Some companies
into information. This allows companies to
can request that this loading to be made at
develop an efficient mechanism of making
certain time moments; data can be loaded
decisions, in other words to make better
daily, monthly, annualy etc. For some data
and faster decisions. The benefits can be
warehouses there can be an initial loading,
important for the company’s management
for others they can only make updates or
in making strategic decisions, but it can
complementary data insertions.
also help department leaders, analysts or
d) Multidimensional Data Analyze
any other member of a team faced with
OLAP (On Line Analytical Processing) is
having to take decisions.
a well known technology in business
Analyzing intelligent data has always been
intelligence. This technology has its roots
important because through this analyze
in complex analyzing and processing
intelligence is being generated. Business
methods, they look as a ensemble of
intelligence is like an endless story,
dimensions, hierarchical and interrelated
applicable in fields like audit, risk
measures [9]. The OLAP technology
management, diplomacy or lobby
offers, first of all, system performances,
20 Business Intelligence Systems
activities. And new fields are just shaping Management. Cannes, France: Gartner
up. This would be the case of merge Symposium IT Expo 2006
between business intelligence and artificial [3] Wikipedia.org –
intelligence, merger that would lead to a http://en.wikipedia.org/wiki/Business_
new concept, artificial business Intelligence
intelligence (ABI). [4] Architecture for Enterprise Business
In these conditions we must admit that Intelligence – Microstrategy
these technologies are just at the beginning http://www2.microstrategy.com/downl
of a long journey, in a world where the key oad/files/whitepapers/open/Architectur
of success stands within the capacity of e-for-Enterprise-BI.pdf
making better decisions in a shorter time [5] Data Warehousing -
then the competition. Besides, a http://www.1keydata.com/datawareho
company’s life depends more and more on using/datawarehouse.html
such decisions, which will make [6] Ralph Kimball – The Data Warehouse
impossible not to admit the benefit brought Lifecycle Toolkit (2nd ed.), 2008
by business intelligence. [7] M. Velicanu, I. Lungu, I. Botha, A.
Bara, A. Velicanu, E. Rednic –
References “Sisteme de baze de date evaluate”,
[1] John C. Hancock, Roger Toren – Bucuresti, 2009
Practical Business Intelligence with [8] Wikipedia.org -
SQL Server 2005”, Addison Wesley http://en.wikipedia.org/wiki/Extract,_tr
Professional, 2006 ansform,_load
[2] Gartner – Essential Components and [9] On-Line Analytical Processing –
Success Factors of Business www.olap.com
Intelligence and Performance