DTEL (Department for Technology Enhanced Learning)

The Centre for Technology enabled Teaching & Learning , N Y S S, India

Teaching Innovation - Entrepreneurial - 1Global

 DEPARTMENT OF Computer TECHNOLOGY

VII-semester
Business intelligence and its
applications

CHAPTER NO.1
Introduction to Business Intelligence

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 CHAPTER 1:- SYLLABUS

1 Introduction to digital data and its types

2 Introduction to OLTP and OLAP

3 BI Definitions & Concepts

4 BI Framework

5 Data Warehousing concepts and its role in BI

6 BI Infrastructure Components

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 CHAPTER-1 SPECIFIC Objective / course outcome

The student will be able to:

1 Understand the Business Intelligence Concepts.

2 Understand the OLAP and OLTP concepts.

3 Understand the BI framework and its infrastructure

components

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 • Scenario

*
 LECTURE 1: BI Concepts BI

Improving organizations by
providing business insights
to all employees leading to
better, faster, more
relevant decisions

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 LECTURE 1: BI Concepts BI

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 LECTURE 1: BI Concepts BI

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 LECTURE 1: BI Concepts BI

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 LECTURE 1: Digital Data Digital Data

•Basic Terminology
•Data
•Model
•Process
•Reports
•Data sources
•Transactional systems

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 LECTURE 1: Digital Data Digital Data

•Digital data can be

–Unstructured
–Semi-structured
–Structured

•According to Merrill Lynch 80–90% of business data is

either unstructured or semi-structured

•Data is usually in a format which makes it difficult to

extract information from it

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 LECTURE 1: Digital Data Formats of data

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 LECTURE 1: Digital Data Unstructured data

What is Unstructured data?

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 LECTURE 1: Digital Data Unstructured data

Where does Unstructured data come from?

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 LECTURE 1: Digital Data Unstructured data

How to store unstructured data?

•Sheer volume of unstructured data and its unprecedented growth

makes it difficult to store. Audios, videos, images, etc. acquire
huge amount of storage space.

•Scalability becomes an issue with increase in unstructured data.

•Retrieving and recovering unstructured data are cumbersome.

•Ensuring security is difficult due to varied sources of data (e.g.

e-mail, web pages)

•Updating, deleting, etc. are not easy due to the unstructured

form
•Indexing becomes difficult with increase in data. Searching is
difficult for non-text data
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 LECTURE 1: Digital Data Unstructured data

How to extract information from unstructured data?

•Unstructured data is not easily interpreted by conventional search

algorithms.

•As the data grows it is not possible to put tags manually.

•Designing algorithms to understand the meaning of the document and

then tag or index them accordingly is difficult.

•Computer programs cannot automatically derive meaning/structure

from unstructured data.

•Increasing number of file formats make it difficult to interpret data.

•Different naming conventions followed across the organization make it

difficult to classify data.

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 LECTURE 1: Digital Data Semi - structured data

What is Semi – Structured Data?

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 LECTURE 1: Digital Data Semi - structured data

Where does semi – structured data come from?

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 LECTURE 1: Digital Data Semi - structured data

How to store semi - structured data?

•Storing data with their schemas increases cost.

•Semi-structured data cannot be stored in existing RDBMS as

data cannot be mapped into tables directly.

•Some data elements may have extra information while others

none at all.

•In many cases the structure is implicit. Interpreting relationships

and correlations is very difficult.

•Schemas keep changing with requirements making it difficult to

capture it in a database.

•Vague distinction between schema and data exists at times

making it difficult to capture data
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 LECTURE 1: Digital Data Semi - structured data

How to extract information from semi - structured

data?

•Semi-structured is usually stored in flat files which are

difficult to index and search.

•Data comes from varied sources which is difficult to tag and

search.

•Extracting structure when there is none and interpreting the

relations existing in the structure which is present is a
difficult task.

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 LECTURE 1: Digital Data Structured data

What is Structured data?

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 LECTURE 1: Digital Data Structured data

Where does Structured data come from?

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 LECTURE 1: Digital Data Structured data

Ease with Structured data storage

•Data types – both defined and user defined help

with the storage of structured data.

•Scalability is not generally an issue with increase

in data.

•Updating, deleting, etc. is easy due to structured

form.

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 LECTURE 1: Digital Data Structured data

Ease with Structured data retrieval

•A well-defined structure helps in easy retrieval of data.

•Data can be indexed based not only on a text string but

other attributes as well. This enables streamlined search.

•Structured data can be easily mined and knowledge can be

extracted from it.

•BI works extremely well with structured data. Hence data

mining, warehousing, etc. can be easily undertaken.

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 LECTURE 1: Digital Data

THANK YOU

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 LECTURE 1: Digital Data Structured data

OLTP Applications and their Characteristics

Transaction = a business deal (e.g. a sale)
Transaction Processing = book-keeping about transactions
•$60B industry [G. Held of Tandem, 93]
•Airlines: reservation system
•Banking: ATM , electronic fund transfer, Home banking
•Telecommunications: call billing, operator services
•Point-of-sale and Retail: credit cards/checks, sales
•Manufacturing: Just-In-Tim e inventory control
•Student Access System , SAS, (500,000 calls/week),…

Characteristics:
• Consistent on-line database
- Despite failures, interleaving etc.
•Small work units - e.g. transfer, deposit, withdraw
•High throughput = #transactions per second (TPS)
•High Concurrency = #units overlapping a given unit
•Mainly concerned with entry, storage and retrieval

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 LECTURE
LECTURE 1:-2:NUMBER
OLTP & OLAP
SYSTEM OLTP & OLAP

Queries that an OLTP System can Process:

• Search for a particular customer’s record.
• Retrieve the product description and unit price of a particular
product.
• Filter all products with a unit price equal to or above Rs. 25
• Filter all products supplied by a particular supplier.
• Search and display the record of a particular supplier

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 LECTURE
LECTURE 1:-2:NUMBER
OLTP & OLAP
SYSTEM OLTP & OLAP

Advantages of OLTP System:

• Simplicity
• Efficiency
• Fast query processing
Challenges
• Security
• OLTP system data content not suitable for decision
making

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 LECTURE
LECTURE 1:-2:NUMBER
OLTP & OLAP
SYSTEM OLTP & OLAP

OLAP

•OLAP differs from traditional databases in the way data is

conceptualized and stored.
•In OLAP data is held in the dimensional form rather than the
relational form.
•OLAP’s life blood is multi-dimensional data.
•OLAP tools are based on the multi-dimensional data model.
•The multi-dimensional data model views data in the form of a data
cube

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 LECTURE 2: OLTP & OLAP OLAP & OLTP

Advantages of an OLAP System

•Multi-dimensional data representation.
•Consistency of information.
•“What if ” analysis.
•Provides a single platform for all information and
business needs – planning, budgeting, forecasting,
reporting and analysis.
•Fast and interactive ad hoc exploration
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 LECTURE
LECTURE 2:-2:NUMBER
OLTP & OLAP
SYSTEM OLAP & OLTP

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 LECTURE 2: OLTP & OLAP OLAP & OLTP

Fig of data showing dimensions

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 LECTURE
LECTURE 2:-2:NUMBER
OLTP & OLAP
SYSTEM OLAP & OLTP

OLAP Operations on Multi-dimensional Data

•Slice
•Dice
•Roll-up
•Drill down
•Drill through
•Drill across
•Pivot/Rotate

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 LECTURE
LECTURE 2:-2:NUMBER
OLTP & OLAP
SYSTEM OLAP & OLTP

OLAP Operations on Multi-dimensional Data

•Slice
•selecting the data using one dimension of cube.
Eg. Criterion Section = “infant” or Section = “kid”
•Dice
– Filtering a data using two or more dimensions
– Eg. Filter data along Section, ProductCategoryName, and YearQuater

•Roll-up

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 LECTURE
LECTURE 2:-2:NUMBER
OLTP & OLAP
SYSTEM OLAP & OLTP

Different OLAP architectures

•MOLAP (Multidimensional On-Line Analytical Processing)

•ROLAP (Relational On-Line Analytical Processing)
•HOLAP (Hybrid On-Line Analytical Processing)

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 LECTURE
LECTURE 2:-2:NUMBER
OLTP & OLAP
SYSTEM OLAP & OLTP

Exercise on OLAP and OLTP characteristics

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 LECTURE
LECTURE 2:-2:NUMBER
OLTP & OLAP
SYSTEM

THANK YOU

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LECURE 3: BI Definitions & Concepts BI Definitions & Concepts

What is BI?
Business Intelligence (BI) is
about getting the right
information, to the right decision
makers, at the right time.
BI is an enterprise-wide platform
that supports reporting, analysis
and decision making.
BI leads to:
fact-based decision making
“single version of the truth”
BI includes reporting and
analytics.

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LECURE 3: BI Definitions & Concepts BI Definitions & Concepts

BI is…

• Fact-based decision making

• Single version of truth
• 360 degrees perspective on your business
• Virtual team members on the same page
• Visibility into enterprise performance

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LECURE 3: BI Definitions & Concepts BI Definitions & Concepts

Before BI
Decision makers are taking help of:
• Marketing research
• Statistical data
• Management reporting
• Market survey

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LECURE 3: BI Definitions & Concepts BI Definitions & Concepts

BI Definition
A set of concepts and methodologies to improve
decision making in business through use of facts and
fact-based systems.

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LECURE 3: BI Definitions & Concepts

ERP vs. BI

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LECURE 3: BI Definitions & Concepts

Differences between Business Intelligence and Business

Analytics

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LECURE 3: BI Definitions & Concepts BI Definitions & Concepts

BI supports decision making at all levels in the enterprise

•Strategic level
•Tactical level
•Operational level

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LECURE 3: BI Definitions & Concepts

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LECURE 3: BI Definitions & Concepts BI Definitions & Concepts

BI exercise from page 98

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 LECTURE 4: BI Framework BI Framework

BI Framework

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 LECTURE 4: BI Framework Business Layer

Business Layer

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 LECTURE 4: BI Framework Business Layer

Business Layer
Business requirements: The requirements are a product of three
steps of a process that includes:
Business drivers (the impulses that initiate the need to act).
Examples: changing workforce, changing labor laws, changing economy,
changing technology, etc.

Business goals (the targets to be achieved in response to the business

drivers).
Examples: increased productivity, improved market share, improved profit
margins, improved customer satisfaction, cost reduction, etc.

Business strategies (the planned course of action that will help achieve
the set goals).
Examples: outsourcing, global delivery model, partnerships, customer
retention programs, employee retention programs, competitive pricing,
etc.

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 LECTURE 4: BI Framework Business Layer

Business Layer
Business Value: Business value can be measured in terms of ROI
(Return on Investment), ROA (Return on Assets), TCO (Total Cost of
Ownership), TVO (Total Value of Ownership), etc.

Program management: It is the component that ensures people, projects

and priorities work in a manner in which individual processes are
compatible with each other; so as to ensure seamless integration and
smooth functioning of the entire program.

Development: The process of development consists of

database/data-warehouse development (consisting of ETL, data profiling,
data cleansing and database tools), data integration system development
(consists of data integration tools and data quality tools) and business
analytics development (about processes and various technologies used).

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 LECTURE 4: BI Framework

Administration and Operation Layer

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 LECTURE 4: BI Framework

Administration and Operation Layer: components of BI Architecture

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 LECTURE 4: BI Framework

Administration and Operation Layer

BI and DW operations: Data warehouse administration requires the
usage of various tools to monitor the performance and usage of the
warehouse, and perform administrative tasks on it. Some of these tools
would be:
•Backup and restore
•Security
•Configuration management
•Database management

Data resource administration: Involves data governance and metadata

management.
Data governance is a technique for controlling data quality, which is used
to assess, improve, manage and maintain information. It helps to define
standards that are required to maintain data quality. The distribution of
roles for governance of data is as follows:
•Data ownership
•Data stewardship
•Data custodianship
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 LECTURE 4: BI Framework

Administration and Operation Layer

Metadata management: Metadata is data about data.

Metadata can be divided into four groups:
–Business metadata
–Process metadata
–Technical metadata
–Application metadata

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 LECTURE 4: BI Framework

Administration and Operation Layer

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 LECTURE 4: BI Framework

Implementation Layer

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 LECTURE 4: BI Framework

Information services:
•It is not only the process of producing information; rather, it
involves ensuring that the information produced is aligned
with business requirements and can be acted upon to
produce value for the company.
•Information is delivered in the form of KPI’s, reports,
charts, dashboards or scorecards, etc., or in the form of
analytics.
•Data mining is a practice used to increase the body of
knowledge.
•Applied analytics is generally used to drive action and
produce outcomes.

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 LECTURE 4: BI Framework

THANK YOU

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 LECTURE 5:Data Warehousing concepts and its role in BI

BI and DW operations: Data warehouse

administration requires the usage of various tools
to monitor the performance and usage of the
warehouse, and perform administrative tasks on
it. Some of these tools would be:

•Backup and restore

•Security
•Configuration management
•Database management

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LECTURE 6: BI Infrastructure Components
Metadata

Who is BI for?

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 LECTURE 5:Data Warehousing concepts and its role in BI

BI for Management
– How sales are in the various region
– Whether the project is on budget or is overshooting?
– What is it that your company is best at?
Operational BI
– Operational BI will have to interact either directly with a transaction system or be
sourced by a data warehouse that is updated in near real time
BI for process improvements
– Contribute in the improvement of process
BI for performance improvement
– To understand the customer demographics before deciding to launch a product in
particular region
BI to improve customer experience
– BI will help companies serve the customers better and win customers satisfaction,
loyalty, and advocacy

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LECTURE 6: BI Infrastructure Components
Metadata

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LECTURE 6: BI Infrastructure Components
Package

BI Applications
BI applications can be divided into:
• Technology solutions
–DSS
–EIS
–OLAP
–Managed Query and Reporting
–Data Mining
•Business Solutions
–Performance Analysis
–Customer Analysis
–Market Place Analysis
–Productivity Analysis
–Sales Channel Analysis
–Behavioral Analysis
–Supply Chain Analysis

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LECTURE LECTURE
6: BI Infrastructure
7 Components

BI Roles and Responsibilities

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LECTURE 6: BI Infrastructure Components

BI DW Best Practices

The list of best practices is adapted from an article

TDWI’s FlashPoint e-newsletter of April 10, 2003.

•Practice “User First” Design

•Create New Value
•Attend to Human Impacts
•Focus on Information and Analytics
•Practice Active Data Stewardship
•Manage BI as a long term investment
•Reach out with BI/DW solutions
•Make BI a business Initiative
•Measure Results
•Attend to strategic Positioning

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LECTURE LECTURE
6: BI Infrastructure
7 Components

Open Source BI Tools

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LECTURE 6: BI Infrastructure Components

Popular BI Tools

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LECTURE 6: BI Infrastructure Components

Popular BI Tools

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LECTURE 6: BI Infrastructure Components

THANK YOU

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 Text Book:
Fundamentals of Business Analytics
✔R N Prasad and Seema Acharya

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