Overview

What is Business Intelligence?

Why BI?
The characteristics of a Business intelligence
Benefits
Limitation
Example

What is Business Intelligence?

Business Intelligence is the processes,
technologies, and tools that help us change
data into information, information into
knowledge and knowledge into plans that
guide organization
Technologies for gathering, storing,
analyzing and providing access to data to
help enterprise users make better business
Decisions

Why BI?

What happened?

What is happening?
Why did it happen?
What will happen?
What do I want to happen?

Past

Present

Future

Data

The characteristics of a Business

intelligence solution

Single point of access to information

Timely answers to Business questions
Using BI in all Departments of an organization

Early days system

BI system

Key Stages

Benefits

Improve Operational efficiency

Eliminate report backlog and delays
Find root causes and take action
Negotiate better contracts with suppliers and customers
Identify wasted resources and reduce inventory costs
Sell information to customers, partners, and suppliers
Leverage your investment in your ERP or data warehouse
Improve strategies with better marketing analysis
Give users the means to make better decisions
Challenge assumptions with factual information

Limitation

Very high software cost.

Expensive and time consuming training.
A wide Variety of technology experts.
Extensive system upgrade and maintenance.
Movement of data between disparate data
source.
Queries done out of BI systems can be
cumbersome and time-consuming to run for end
users

Search Effectiveness

Customers that search are worth two times as much as

customers that do not search

Failed searches hurt sales

Visit
10%

90%

No Search

Search
(64% successful)

Avg sale per visit: $X

Avg sale per visit: 2.2X

70%

30%

Last Search Failed

Last Search Succeeded

Avg sale per visit: 2.8X

Avg sale per visit: 0.9X

Top Searches

Top searched keywords (percent of searches)

Empty search string (3.9%)
returns over 160 results
GPS (1.2%)

sunglasses (0.8%)
watches (0.6%)
nalgene (0.5%)
ecological footprint (0.5%)

Recommendation:
- Do not allow empty search
- Create custom pages for often
searched keywords

Top failed keywords in the product category (percent of failed searches)

gift certificate(s) (0.98%)
(already implemented since study)

arcteryx (0.44%)
bear spray (0.44%)
pedometer (0.37%)
stroller(s) (0.36%)
north face (0.33%)
(gift) registry (0.21%)

Recommendation:
- Parse search string to remove
special characters
- Build extensive thesaurus
- Consider carrying products

Referrers

Top Referrers
Google

5.8% of all visits are referred by google

Visit to purchase conversion 1.6%

Average purchase per visit = 1.8X

MSN (including search and shopping)

11% of all visits are referred by MSN

Recommendation

Visit to purchase conversion 0.7%

Average purchase per visit = X

Define an ad strategy
based on ROI

AOL search

Emphasize AOL

0.62% of all visits are referred by AOL Search

Visit to purchase conversion 2.6%

Average purchase per visit = 4.8X

Campaign Analysis

Analyze the effectiveness of campaigns

Recommendation:
Send targeted emails

Campaign

Campaign 1

Campaign 2

Campaign 3

Emails Sent

Opens

Clickthroughs

100%

22%

9.3%

(4.8p/email)

(22.3p/email)

(52p/email)

100%

11%

3%

(0.5p/email)

(4.8p/email)

(17.9p/email)

100%

22%

5.3%

(0.8p/email)

(3.6p/email)

(15.3p/email)

Orders

0.07%

0.01%

0.01%

Click-through rates are high - good

Page Effectiveness Report

Percentage of visits clicking on different links
14%

3%

2%

8%

2%

13%

9%

0.6%

Top Menu 6%

3%
2%

2%

18% of visits exit at the welcome page

0.3%

2%

Any product link 7%

Reference
www.oracle.com
www.microsoft.com
www.bluemartini.com