Transcript Business Intelligence

Business Intelligence
Introduction & Overview
What is Business Intelligence
“A broad category of applications and technologies for gathering, storing,
analyzing, sharing and providing access to data to help enterprise users
make better business decisions” - Gartner
Analyzing
Reporting
Drill down, exception reports, rootcause analysis, multidimensional
analysis
Detailed operational data
Sharing standardized reports
Monitoring
Dashboards, scorecards and alerts
Planning
Create plans, models and scenarios, which are then fed back into the monitoring
layer and encoded as targets and thresholds.
“No matter where you start, you should be able to move up and down layers
seamlessly without awkward context shifts to gather insights, take action and
optimize performance” - TDWI
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BI Defined: Information Driving
Organizational Performance
Business intelligence
is an umbrella term for
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Applications
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Infrastructure,
platforms, tools
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Best practices
which enable the analysis of
information in order to
optimize decisions and
manage performance.
Performance
Decisions
Analysis
Information
What Questions can BI answer?
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Where are we?
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Where are we going?
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Why are sales going down?
What is going to happen in the future?
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Are our sales trending up or down?
Why is this happening?
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What were our sales this month?
Forecasting / What If analysis
How can I plan for the future?
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Planning / Goal Setting
Where is BI utilized?
Operations
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ERP Reporting/Analysis
KPI tracking
Maximizing profits
Risk Management
Activity Based Costing
Logistics
Customer Relationships
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Sales forecasting
Segmentation
Cross-selling
CRM analysis
Campaign planning
Customer profitability
The Simple Business Intelligence
Model
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Collect data using a wide variety of sources and
formats
Organize information (and resources) for multiple
uses and users
Judge the value (of information and resources)
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Assist in the analysis process by determining the
pertinence, reliability, and validity of information
gathered
Disseminate information, but communicate
intelligence that leads to ACTION
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Weigh the options; consider the alternatives
Business Intelligence (BI)
The
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Benefits of BI
Time savings
Single version of truth
Improved strategies
and plans
Improved tactical
decisions
More efficient
processes
Cost savings
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Faster, more accurate
reporting
Improved decision
making
Improved customer
service
Increased revenue
Main BI Topics
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Data warehousing – Making historical data available for
analytics
Data preparation – Extraction, transformation and loading
Query - a collection of specifications that enables you to
focus on a particular set of data.
Online Analytical Processing (OLAP) - a capability of
information systems that supports interactive examination
of large amounts of data from many perspectives.
Reporting - generates aggregated views of data to keep
the management informed about the state of their
business.
Data mining - extraction of knowledge by utilizing software
that can isolate and identify previously unknown patterns
or trends in large amounts of data.
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Business Intelligence
BI Applications:
- Data warehousing
-Data mining
- BPM
- OLAP
- etc.
Data
Business
Analytics
Executives
Managers
Operators
BI Users
Data
Business
Environment
Decisions
BI Product Providers
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Microsoft
SAS
IBM / SPSS
Oracle
SyBase
Business Objects
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The Different Users of Business
Intelligence
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There are many different users who can benefit from
business intelligence
 Executives – Those who focus on the overall business
 Business Decision Makers – Usually focused on single
areas of the business (finance, HR, manufacturing, and
so forth)
 Information Workers – Typically managers or staff
working in the back office
 Line Workers – Employees who might use BI without
knowing it
 Analysts – Employees who will perform extensive data
analysis
Business Scorecards
• This screenshot shows a couple of simple scorecards.
• Scorecards can contain KPIs that can be expanded or collapsed, and
they can contain different indicators to show the strength or health of a
KPI.
• These scorecards can also be filtered to narrow down products, regions
of the world, and so forth.
The Purpose of a Scorecard
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A scorecard should give an executive a visual
representation of the health of an organization in a
single glance
The scorecard is of sufficiently high level to
represent major business operations and their
goals
The data in a scorecard should be as recent as
possible to make them more actionable
What is a Balanced Scorecard?
A method of measuring
activities and outcomes
for effective
performance management
Activity & Outcome Measures
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Activity Measures
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Internal Business Process Perspective
Learning and Growth Perspective
Outcome Measures
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Customer Perspective
Financial Perspective
Balanced Scorecard Performance Measures
HR Headcount per 100 FTE
Unscheduled Overtime %
Deficient Punch %
Lost-time injuries per 100 FTE
Self-Service Participation %
Scheduling Effectiveness %
Learning & Growth Perspective
Training Hours/FTE
Productivity Gain per Training Hour
OSHA Events/FTE
Career Path Ratio
Improving Performer Ratio
Position Tenure
Skill Match Ratio
Customer Perspective
OUTCOME MEASURES
ACTIVITY MEASURES
Internal Business
Process Perspective
New Hire Termination %
Quality of Hire
Cycle Time to Hire
Voluntary Turnover %
Employee Satisfaction Score
Financial Perspective
Non-productive Labor Cost %
Average Cost per Claim
Cost per Hire
HR Expenses per 100 FTE
Accrual Liability per FTE
Overtime Pay Ratio
Bonus Ratio %
What are the Challenges?
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Identifying which performance measures are
relevant for each scorecard recipient
Balancing the weight applied to each measure in
proportion to overall performance
Compiling and staging the source data
Designing a dynamic architecture to minimize
maintenance efforts and maximize flexibility and
performance
Securely deploying the scorecards in a large
enterprise environment
Balanced Scorecard Data Model
Balanced
Scorecard
DataData
Model
Balanced
Scorecard
Model
CRM
SCM
HRMS
Other
BSC_DATE
PK
ERP
GL
Extract, Transform & Load
Base Measure Sourcing and Aggregation
INFORMATICA POWERCENTER (ETL)
Base Measure Sourcing and Aggregation
Extract, Transform & Load
Scorecard Data
Capture Apps
Performance Measure Calculation at all Levels of Aggregation
INFORMATICA POWERCENTER (ETL)
Performance Measure Calculation at all Levels of Aggregation
ORG_UNIT_ID
ORG_UNIT_NAME
Scorecard
Controls
POSITION
PK
POSITION_ID
USER
POSITION_NAME
MEASURE_ID
MEASURE_NAME
MEASURE_GROUP_ID
MEASURE_GROUP
CHILD_ORG_UNIT
PK
CHILD_ORG_UNIT_ID
CHILD_ORG_UNIT_NAME
CHILD_POSITION
PK
CHILD_USER_NAME
Note: This model is a simplified conceptual model only.
Performance Measure Allocation and Distribution
Business Intelligence Software
POWER ANALYZER
Balanced Scorecard Model
- Pre-calculated and aggregated
for all scorecard recipients
USER_NAME
PK
CHILD_USER
PK USER_ID
PK CHILD_USER_ID
Note: This model is a simplified conceptual model only.
Staging Model
- Current Fully Aggregated
Data
StoreTransform & Load
Extract,
INFORMATICA POWERCENTER (ETL)
Performance Measure Allocation and Distribution
POSITION_ID
EOM_DATE
MEASURE_ID
USER_ID
CHILD_USER_ID
ORG_UNIT_ID
CHILD_ORG_UNIT_ID
CHILD_RELATIVE_LEVEL
CHILD_ABSOLUTE_LEVEL
ORG_UNIT_RELATION_TYPE
ACTUAL_VALUE
TARGET_VALUE
LOW_THRESHOLD
HIGH_THRESHOLD
WEIGHT
RESULT_SCORE
ORG_UNIT
PK
Pre-Staging Model
- Historical Partially Aggregated
Data Store
PK,FK5
PK,FK1
PK,FK2
PK,FK3
PK,FK4
PK,FK6
PK,FK7
MONTH_NUM
MONTH_NAME
QUARTER_NUM
QUARTER_NAME
YEAR_NUM
Budget
MEASURE
BSC_REPORTING
EOM_DATE
CHILD_POSITION_ID
CHILD_POSITION_NAME
Deployment Considerations
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Easy to navigate web-based interface
Drill down, through or across the data
Restrict data access by user
Facilitate minimal report maintenance (data
driven)
Alerting – when thresholds are crossed
Indicators – performance ‘at a glance’
Must be able to explore subordinate’s
performance level
The Contents of a Scorecard
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Scorecards usually contain some or all of the
following elements:
 Key Performance Indicators (KPIs)
 KPI actual values compared to historical values
(for trend analysis)
 KPI actual values compared to a forecast or
budget amount
 Rankings of different departments, locations,
products, and so forth
BI Successes
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Continental Airlines consolidated several customer
databases into a single, strategic data warehouse and BI
initiative that helped it become first in its industry for
customer service. Its example demonstrates how
companies can achieve competitive advantage.
UniCredit took a leading role in a new credit portfolio
management market, thanks to a BI solution. This included
an integrated data warehouse, risk modeling, rule-based
warnings and an interactive reporting portal.
The Richmond Police Department in Virginia deployed a
variety of analytical and predictive tools to determine likely
areas of criminal activity so that officers could be
proactively deployed to deter crime, rather than reactively
respond to criminal activity.
Other BI applications: To Store & Analyze Data
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Data Mining, Framing & Warehousing
(DSS) and Forecasting
Document Warehouse & Management
Knowledge Management
Mapping,
Information Visualisation and Dashboarding;
Management Information System (MIS);
Geographic Information System (GIS);
Trend Analysis;
Software As A Service (SaaS)
Business Intelligence offerings (On Demand)
Online Analytical Processing (OLAP) and
Multidimensional analysis
sometimes called "Analytics“ (based on the "hypercube" or "cube");
Real Time Business Intelligence
Statistics and Technical Data Analysis
Web Mining, Text Mining and
Systems Intelligence
Other BI applications are used
to analyze or manage the
"human" side of businesses,
Customer Relationship
Management (CRM)
Marketing Tools
Human Resources
applications.
Web Personalisatiuon
Conclusion:
Business Intelligence Today and
Tomorrow
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Today’s organizations are deriving more value from BI
by extending actionable information to many types of
employees, maximizing the use of existing data assets
Visualization tools including dashboards are used by
producers, retailers, governments, and special agencies
More and more industry-specific analytical tools will flood
the market to perform almost any kind of analysis and to
facilitate informed decision making from the top level to
the user level
A potential trend involving BI is its possible merger with
artificial intelligence (AI)
BI Applications
Fraud detection
 Clickstream Mining
 Market Segmentation
 Retail
 Telecommunication
 Banking& Finance
 CRM
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BI system at Hero MotoCorp
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Analytics
Dashboards
Decision support
systems
Online analytical
processing
Querying and
reporting
What-if analysis
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Top management
Finance and accounts
Human resources
Manufacturing /
production
Customer support
Marketing
Sales
Information technology
Benefits
Aligned analysis with business
objectives:
 Centralized information generation
 Real time data analysis: BI has facilitated
real time updates about critical business
factors like sales for two wheelers,
production, inventory analysis, etc.
 One version of the truth:
 What-if analysis:
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M&M Product Mix
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Analytics, Dashboards, Decision support systems, Querying
and reporting
With BI, accurate and timely information has become
available to Mahindra & Mahindra helping it reduce
reconciliations and better manage the billing process. This
has led to quicker payments and a reduction in account
receivables.
Analysis of data from sales, production and inventory data
using BO Explorer has helped it improve its product mix.
BI has also enabled Mahindra & Mahindra to fulfill orders on
time, thus increase its sales.
Improved visibility across locations has led to reduction in
inventory and inventory carrying cost.
Shoppers Stop
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With BI, Shoppers Stop is able to target micro-segments to ensure
incremental business through promotions and messages sent to
its customers. This has also helped the retailer to reduce inventory
and still offer the customer what he wants by optimizing the
merchandise mix.
The company analyzes the profiles of its stores located in the
cities with similar demographic spread to create new stores at new
locations. This analysis ensures that stories opened in the new
cities have a higher probability of success.
Monitoring sales patterns across stores helps the operations
teams to tactically change store layouts or of the displayed
merchandise to attract customers. The same feedback helps the
back office planners in adjusting flow of merchandise to the
stores.
BI has also helped Shoppers Stop to grow its online retail and
improve the flow of referrals.