MODULE II

BUSINESS
INTELLIGENCE DISRUPTION

INTRODUCTION

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What is Data Analytics?

The method of examining data sets in order to draw conclusions about information they contain,
with the help of particular systems and software. Data analytics technologies and techniques is
largely used in commercial industries which enable organisations to make more informed about
business decisions.

What is Data Warehousing?

A data warehousing is a technique for collecting and managing data from different sources to pro-
vide important business insights. It is a combination of technologies and components which aids the
strategic use of data.
Data warehousing is electronic storage of a big amount of information by a business which is con-
sidered for query and analysis instead of transaction processing. And is a process of transforming
data into information and making it available to users in a timely manner to make a difference.

FUNCTIONS OF DATA WAREHOUSE TOOL AND UTILITIES

Data Extraction – involves (gather of data from various heterogeneous sources.)
Data Cleaning − involves (correcting and finding the error in a data.)
Data Transformation −involves(converting the data from legacy format into warehouse format.)
Data Loading – involves (this include sorting, summariSing, consolidating, checking, and building
indices).
Refreshing − Involves (updating data sources to warehouse.)
What Is Business Analytics?

Business analytics is mixture of skills, applications, technologies and processes use by the organi-
Sations in order to gain insight in to the business based on statistics and data to drive business
planning. It is used to calculate organisation-wide operations, and can be implement in any depart-
ment from product development to to sales customer service.
Business analytics solutions use statistical data and quantitative analysis and is fact-based data to
quantify the past performance to guide an organisation's business planning.

Business Analytics Process

Business Problem Framing

This process involve understanding the purpose of your analysis ,try to understand what the busi-
ness is and what the business is trying to achieve. formulate the business problem.

Analytics Problem Framing

This involve reformulation of the business problem with respect to analytics.its relationship to out-
put and develop a proposed set of factors. Define a metric of success of the model.

Data

Identify and select the data for analysis and its source. work to clean the data and make analysis
ready. find relationships between data and report them.

Methodology Selection and Model Building

This involve which method to use for analysis. This is decided based on the data and the type of
analysis to perform. make multiple models and compare them based on the metrics that is decided.

Deployment

Validate the model to check if model is giving accurate predictions. Once validated and reported,
deploy the model on company’s system which then will perform analysis on every new incoming
data. When a model is deployed, constantly monitored for accuracy.

FUTURE TRENDS OF BUSINESS INTELLIGENCE AND ANALYTICS

1. Cloud:- In preceding years, the operation of BI into a cloud-first world was approached with
wide caution due to the threat it posed to security. In the upcoming, this threat will be harshly
diminished as IT initiatives have dedicated years to build the support for a successful change. In
adding up to these security solutions, moving away from in-house infrastructures eradicate over-
head and is more cost-effective than traditional platforms.
2. Digitisation – The basic idea behind this BI trend is converting offline processes to a digital for-
mat to be well read by electronic devices. benefits of digitisation are huge, the major advantages
include cutting costs, reporting and obtaining real-time data monitoring and beyond customer satis-
faction rates through modified experience.

3. Self Service – The hot trend of self service in BI enables end users to right to use statistical data,
perform customised queries, then sketch their own conclusions. By empowering users to make their
own insights, this frees up team efforts to center on other company objectives.

4. Data Visualisation – Also called as Data Discovery, this interactive analysis allows more imme-
diate comprehension of major outliers or trends. With our brain’s ability to digest visual infor-
mation earlier than text and tables, highly required after technique enables enterprise decision-
making to become additionally well-organised.

5. Predictive analytics – By analysing complex enterprise data, the inclination of predictive analyt-
ics allows businesses to make sense of current inefficiencies or areas of strengths in order to deter-
mine the most helpful routes for future attention. This will aid to understand customers and im-
measurably improve business performance.

BI IN DIFFERENT INDUSTRY

Oil Industry Uses BI to Reduce Costs

The oil industry has established many superb uses for business intelligence. The cost of gas at the
pump is dictated by the price of a barrel of crude oil. As oil companies can't control the price of
crude oil, the only way to control profits is to control the price paid for distribution, marketing, and
refining the oil. The oil industry has found benefit in using Business Intelligence solutions to reduce
their costs and raise profits.

One way oil companies use BI is with regards to marketing. The price of a barrel of crude oil can
change several times throughout the day. It is important for the marketing department to know the
price, in real time. With this knowledge at hand, the marketing team can push sales when the price
is high, and pull back when the price is low. Another example of how the oil industry can use busi-
ness intelligence is when drilling for oil. Analysts combine data from geological and seismic tests to
determine where to drill and the best means to do it. This information can help the oil company
hedge their bets against loss and keep costs low.

Retail Industry Uses BI to Reduce Theft

Major hardware and garden store chains have also found a place for business intelligence. One issue
stores tend to have is a problem with “shrinkage.” Inventory shrinkage is a term used when a prod-
uct that is ordered gets lost somewhere between the time it is ordered and the point of sale. Theft
tends to be over 75% of the cause of shrinkage. With this in mind, retail stores, including a large
hardware and garden store chain, can take steps to prevent shrinkage. Business Intelligence
tools allow for these stores to not only track how much product is being lost, but which stores see
the most shrinkage, and which specific items tend to wind up lost. When a company knows this,
they can put in place certain policies and procedures in order to help prevent shrinkage. If business
intelligence can cut down on shrinkage for the hardware and garden store chain, profits should
reach their planned potential.

Apparel Industry Uses BI to Track Latest Trends

If there is one thing we all know, it's that the fashion industry is extremely competitive and fast
moving. What is in one minute is out the next, and therefore, it is critical that everything run swiftly
and smoothly within the major clothing companies. They can use business intelligence and data
visualization tools to make sure no time is wasted when they need to make changes. The company
is able to survey competitors and develop key questions to help themselves rise above the competi-
tion. Once the questions are presented, business intelligence software can be developed to gain the
answers to the questions. From there, the company can make the needed changes without wasting
any time.
What industry do you work for and how are you using business intelligence? Let us help you under-
stand the significance of BI. Learn how business intelligence can help your organization become a
better company.

5 Influential Companies that Use Business Intelligence

Some of the most successful companies in the world use business intelligence (BI). It helps them
operate more efficiently, report higher average revenue, and make more informed strategic deci-
sions based on accurate data analysis.
There are five companies in particular that have used BI in innovative ways recently:

1. Amazon
2. Starbucks
3. Netflix
4. YES BANK
5. American Express
By considering what made these companies so successful and analysing the specific BI strategies
they used, you may be able to replicate their successes. Here’s how each used business intelligence
to gain the upper hand in their respective industries.

Companies That Use Business Intelligence

Amazon Uses BI to Optimise the Supply Chain

Amazon is known for using some of the most advanced, innovative technologies in the world. The
same is true for its use of business intelligence technology. Amazon’s own business intelligence and
analytics software (Amazon Web Services) analyses all of the data it gathers across the supply
chain.

What makes Amazon especially noteworthy is that it had to overcome a set of challenges that very
few companies face. Amazon has an incredibly large supply chain that includes more than 3 billion
products sold in 11 different marketplaces. The company also handles online subscription services,
shipping, manufacturing and storage, among many other systems. It’s a lot of moving parts.
To solve this complex challenge, Amazon relies on thorough data collection and analytics and visu-
alisations to generate insights into every aspect of the supply chain.
The company gathers demographic data about customers interested in certain products. From there,
Amazon uses BI and data analytics to determine where to store these products so that they can be
shipped to customers quickly. The company also creates custom shipping routes based around these
predictive analytics and geo-mapping.

What You Can Learn from Amazon

Even if your supply chain isn’t as complex as Amazon’s, you can use BI in the same way to supply
your customers with what they need in a timely manner. Shipping and storage optimisation also
saves on transportation costs and prevents you from buying and storing more inventory than you
can actually sell. By hiring an experienced BI and data analytics firm to perform these calculations
for you, you’ll streamline your entire supply chain from start to finish.

Starbucks Analyses and Predicts Customer Behaviour

While Amazon uses a complex data analytics system to address a wide range of pain points all at
once, other companies that use business intelligence focus on more specific services. One example
of this is Starbucks. When the popular coffee chain launched its rewards program—a loyalty card
that offers customers rewards for every purchase—they used BI and customer relationship man-
agement systems (CRMs) to tailor this program to every customer.

When customers used the card to make purchases, Starbucks kept a log of these transactions. Using
detailed predictive data analytics, the company was then able to offer additional rewards and rec-
ommendations to customers based on their shopping histories.

A customer who usually only buys a tall black coffee every morning will likely appreciate being
given free in-store refills, rather than a free seasonal latte. Not only do these rewards increase the
likelihood that the customer will visit the store again in the near future, but the company can also
use this information to introduce customers to new menu items based on their tastes.

What You Can Learn from Starbucks

Purchase histories are powerful, but only if you have the right BI and CRM tools to analyse this da-
ta. This is especially difficult if you’re a small or mid-sized enterprise, because you may not have
the resources or staff required to perform the analysis on your own. IT staffing firms that specialise
in data visualisation and analysis can help you create a portal similar to the one that Starbucks uses
to help you track customer behaviour.

NETFLIX Uses Business Intelligence to Improve Recommendations

Companies that use business intelligence often identify new ways to improve their services in re-
sponse to the data they gather. A great example of a company that used this method to dramatically
improve its services is Netflix.

The video streaming company gathers massive amounts of data on their customers’ behaviour, in-
cluding which videos they click on or hover over, how long they spend looking for something to
watch, which titles they type into the search bar and whether they make use of experimental ser-
vices that the company introduces for the first time.

For example, in 2018, Netflix began placing advertisements for other titles at the end of the titles
customers just watched. The company carefully tracked how many users actively clicked on these
ads or watched these previews to determine whether this was a feature they would keep. Netflix ba-
ses about 80 percent of its content on customer behaviour and data gathered from its recommenda-
tion algorithm.

What You Can Learn from Netflix

The most successful companies that use business intelligence are those who can identify the metrics
that matter most and measure them accurately. For Netflix, behavioural patterns like clicks, watch
histories, search queries and time spent watching each title are some of the most important data.
Your business might need to gather different types of data in order to be successful. An experienced
business analytics and business intelligence firm will help you identify what the most important da-
ta points are and will help you find a way to track them.

YES BANK Improves Internal Communications

Most companies that use business intelligence do so in order to better understand their customers’
needs. However, you can also use BI to improve your company’s internal operations. One company
that made great use of this method is YES BANK, India’s fourth largest private-sector bank.
Before making use of BI, YES BANK employees weren’t able to communicate effectively with one
another, which hurt their workflows. Each day, management information systems specialists had to
download data from dozens of spreadsheets by hand, create reports, and send these reports to the
company’s decision makers. This led to delays in processing, and increased the risk of data leaks at
every point of the data transfer process.

By implementing a new BI system, YES BANK was able to store all of its data in a warehouse and
automatically generate reports from a user dashboard. Only authorized users had access to certain
pieces of data. The BI tools also made it easier to see which actions needed to be taken to address
problems as they arose.

What you can learn from YES BANK

Using a new BI system, YES BANK made their data more actionable, less vulnerable to leaks and
more efficient. Even if you feel that you understand your customer well, you can still use BI to im-
prove your own internal communication and ensure that your employee’s time is valued.

American Express Detects Fraud with BI Software

BI tools are very effective when they’re used for loss prevention and fraud detection. American Ex-
press in particular has shown the impact that BI can have on these two areas. After implementing a
new BI system, they were not only able to better protect their own finances, but also those of their
customers.

Using advanced algorithms and predictive data analysis, American Express is able to identify
fraudulent uses of their customers’ cards in real time and automatically prevent future charges on
the card until the customer is notified. This helps protect their customers and also reduces financial
risk for the company.

What You Can Learn from American Express

BI tools can be used to track more than just customer behaviour or internal workflows. By harness-
ing the power of predictive analytics, you can respond to fraud quickly and in some cases may even
be able to prevent it before it happens. This is especially important for the banking and insurance
industries.