| What is Business Intelligence (BI) ? | - The use of computer technology (IT) to enhance
decision making, drawing information from within
the company and from outside the company
Definition of BI - An umbrella term that combines databases,
analytical tools, applications, and methodologies |
| What does business Intelligence (BI) do? | - Uses various tools and techniques to structure
data so that it can be used for decision making |
| what are some Drivers of BI? | 1. Increasing need to improve business operations
2. Increased computing power and connectivity
3. Vast amount of data that is now available
4. Legal requirements to report accurately and quickly |
| what is the Evolution of BI? | DSS → EIS → BI
Data -> Information -> Decisions |
| What is the Objective of BI? | – Give ready access to information in a form that is
easily understood
– Graphs, charts, tables, etc.
– Transform data to information to decisions to
actions |
| what are the 4 major components of BI? | 1. Data Warehouse – data collected and stored
2. Business Analytics – a collection of tools for
manipulating, mining, and analyzing the data in
the DW (e.g., Power BI)
3. Business Performance Management – for
monitoring and analyzing performance
4. User Interface – e.g. a dashboard for accessing
the information |
| what is Transaction Processing (OLTP)? | – Computer systems (IT) that automate the operations
of the company. E.g., ATM, payment terminals at
grocery stores, changes in bank balances
– Supported by operational databases
– Called online transaction processing (OLTP)
– ERP systems (SAP) |
| What is Analytic processing (OLAP) ? | – Computer systems (IT) that support decision making
– Data is copied from the operational databases into a
separate database called a data warehouse
– Data Warehouses – organize the data to make it easy
to create reports for decision-making
– Stored company data from OLTP used to analyze
what is happening in the business |
| Transaction Processing (OLTP) vs Analytic Processing (OLAP) | • Transaction Processing (OLTP)
– Used to automate operations
– Efficient for transaction processing
– Inefficient for ad-hoc report generation
– Requests for reports created by IT staff
• Analytical Processing (OLAP)
– Used for analysis
– Data is a snapshot of company data at a point in time
– Data stored in data warehouses
– Data reorganized and structured in such a way that it was
fast and efficient for querying, analysis, and decision
support. |
| 4 best practices for implementing BI | 1. Decide IF BI can meet needs of the business
2. Standardize IT infrastructures
- standardize transaction processing systems across compony
3, Focus on usability of the user interface
4. Ensure high data quality
- consistent handling of data
-accurate and complete records |
| ALL three business analytics ( Descriptive, Predictive, Prescriptive) | Descriptive = past and present
Predictive = future and why it is happening
Prescriptive = what should we do and why |
| What does Descriptive analytics enable? | - Business reporting
- dashboards
-scorecards
-data warehousing |
| what is the outcome of Descriptive analytics? | well-defined business problems and opportunities |
| What does Predictive analytics enable? | - data mining
- text mining
- web/ media mining
-forecasting |
| what is the outcome of Predictive analytics? | accurate projections of future events and outcomes |
| What does Prescriptive analytics enable? | -optimization
-simulation
-decision modeling
-expert systems |
| what is the outcome of Prescriptive analytics? | best possible business decisions and actions |
| What is big data ? | - Big Data is data that cannot be stored or processed
easily using traditional tools/means |
