MODULE -3

BUSINESS INTELLIGENCE:
Definitions and Examples in
Business Intelligence
► Definition:
► Business Intelligence involves the use of data
analysis tools and techniques to analyze data from
various sources, transforming it into actionable
insights that help organizations make strategic
decisions.
Examples:

► Sales Analysis: Using BI tools to analyze sales data to identify

trends, customer preferences, and sales performance across
different regions.

► Customer Segmentation: Analyzing customer data to segment

the customer base for targeted marketing campaigns, improving
customer retention and acquisition.
► Financial Reporting: Generating real-time financial reports
to monitor company performance, track expenses, and
forecast revenue.

► Operational Analytics: Assessing operational data to

optimize supply chain processes, reduce costs, and
improve efficiency.

► Market Research: Utilizing BI to analyze market trends

and competitive landscapes, helping organizations adapt
their strategies accordingly.
 Aspect Decision Support Systems (DSS) Business Intelligence (BI)

A system that supports A broader framework for

decision-making for specific collecting, analyzing, and
Definition problems or scenarios by providing visualizing data to gain insights
interactive tools for analysis. and improve decision-making.

Focused on delivering insights

Primarily designed to assist in
through data trends, patterns,
Purpose solving semi-structured or
and analytics for strategic
unstructured problems.
decision-making.

Broader in scope, covering the

Narrower in scope, tailored to
Scope specific problems or decisions.
entire organization's data and
analytics needs.
 Aspect Decision Support Systems (DSS) Business Intelligence (BI)

Often uses both internal and Primarily uses historical and

Data Use external data, may involve ad hoc real-time internal
or real-time data. organizational data.

Used by managers, analysts, and

Used by executives, analysts,
decision-makers for
Audience problem-solving in specific
and managers for strategic
and operational insights.
domains.
Includes tools like data
May include tools like optimization warehouses, OLAP (Online
Technology models, simulation software, and Analytical Processing), and
expert systems. ETL (Extract, Transform,
Load) processes.

Provides actionable Delivers insights, trends, and

Output recommendations or alternatives performance metrics for
for decision-making. informed decisions.
 Need, Features, and Use of Business
Intelligence (BI)
Need for Business Intelligence :-

► Data Overload

► Competitive Advantage

► Improved Decision-Making

► Efficiency and Productivity

Features of Business Intelligence :

► Data Visualization

► Reporting and Analysis

► Real-time Data Access:

► Predictive Analytics
Use of Business Intelligence :

► Strategic Planning

► Operational Optimization

► Customer Insights

► Risk Management
 Components of Business Intelligence

► Data Warehouse:

A data warehouse is a centralized repository that

stores large volumes of structured and unstructured
data from various sources. It is designed for query and
analysis rather than transaction processing. The data
warehouse consolidates data from different
operational systems, providing a single source of truth
for reporting and analytics.
► Business Analytics:

o Business analytics encompasses the tools and techniques

used to analyse data and generate insights. This includes
descriptive analytics (what happened), diagnostic analytics
(why it happened), predictive analytics (what is likely to
happen), and prescriptive analytics (what should be done).
Features of business analytics include:
▪ Statistical Analysis: Applying statistical methods
to identify patterns, correlations, and trends in
data.

▪ Data Mining: Extracting valuable information from

large datasets to uncover hidden patterns or
relationships.

▪ Predictive Modelling: Utilizing historical data to

create models that forecast future outcomes and
trends.
► Business Performance Management
(BPM) :
► BPM refers to the processes and tools used to monitor

and manage an organization’s performance against its

goals and objectives. BPM integrates BI capabilities to

help organizations assess their performance and align

strategies accordingly.
► User Interface :

o The user interface (UI) is the point of interaction between

users and BI tools. A well-designed UI is crucial for user
adoption and effective data exploration. Key features of a
user-friendly BI interface include :-
▪ Intuitive Navigation: Easy-to-use navigation menus
and layouts that allow users to access information
quickly.

▪ Interactive Dashboards: Dynamic dashboards that

enable users to explore data visually and drill down
into specifics.

▪ Self-Service Capabilities: Providing users with tools

to create their own reports and visualizations
without needing IT support.
 Business Analytics (BA)
► Business Analytics encompasses a wide range of techniques
and methodologies used to analyze data and extract valuable
insights that support strategic decision-making. With the

increasing availability of big data, organizations have

recognized the importance of leveraging analytics to stay

competitive, enhance operational efficiency, and deliver better
customer experiences. The primary objectives of BA include:
 Big Data
► 5 Vs
► Volume (Hospital Data)
► Velocity (in form of Patient records , test result)
► Variety (Structured, Semi-Structured,
UnStructured)
► Veracity (Accuracy , Trustworthiness)
► Value (Disease Detection , Better Treatment ,
Reduced Costs)
 Big Data Type
► Hadoop

► Breaking File In to different folders

► Making Copy of each file
► Dividing the Long Process in to Different
Small Process(Done in Games Like
BGMI,Call of Duty)
► Improving Decision-Making

► Enhancing Operational Efficiency

► Predicting Future Outcomes

► Driving Business Strategy

Components of Business
Analytics
► Business Context:

► Defining clear business goals and metrics for

success.
► Aligning analytics initiatives with overall business
strategy.
► Identifying key stakeholders and decision-makers
who will utilize the insights generated from
analytics.
► Technology:

► Technology plays a crucial role in enabling

effective analytics. This component includes:

► Analytics Tools: Software and platforms that

facilitate data analysis, such as BI tools,
statistical software, and programming languages
(e.g., R, Python).
► Data Infrastructure: The underlying systems
and architecture that support data storage,
retrieval, and processing (e.g., databases,
data warehouses, cloud computing).

► Visualization Tools: Applications that help

present data visually, making it easier for
stakeholders to interpret insights.
 Types of Business Analytics
► Descriptive Analytics:
► "What were our sales last quarter?" or "How many
customers visited our website last month?".

► Key techniques include:

► Data aggregation and reporting.
► Data visualization (charts, graphs).
► Historical trend analysis.
► Predictive Analytics

► "What will our sales be next quarter?" or

"What are the chances of a customer
churning?".

► Key techniques include:

► Regression analysis.
► Time series analysis.
► Classification and clustering algorithms.
► Prescriptive Analytics:

► "What should we do to improve sales?" or

"How can we optimize our supply chain?".

► Key techniques include:

► Optimization models.
► Simulation techniques.
► Decision analysis.
 Business Intelligence
► Business Intelligence (BI) refers to the technologies and
tools used to collect, analyse, and present business data for
reporting and decision-making. BI typically focuses on
descriptive analytics and involves historical data analysis to
generate reports and dashboards.
 Business Analytics (BA)

► Business Analytics (BA) extends beyond BI by

incorporating predictive and prescriptive analytics.
BA is more focused on data-driven insights that
inform strategic decisions and future planning.
 Key Differences :
∙ Focus: BI focuses on historical data and reporting, while BA
emphasizes predictive modelling and recommendations.

∙ Techniques: BI uses data visualization and reporting tools, while

BA employs statistical analysis and machine learning
algorithms.

∙ Goal: BI aims to provide a comprehensive view of business

performance, whereas BA seeks to enhance decision-making
through data-driven predictions and insights.
 Transaction Processing
► Transaction Processing (OLTP):
o Online Transaction Processing (OLTP) systems are
designed for managing transactional data and processing
day-to-day business operations. Key characteristics
include:-
 ▪ Real-time Processing: OLTP systems handle a
high volume of transactions in real time.

▪ Data Integrity: Ensures data accuracy and

consistency through transaction controls.

▪ Speed: Focuses on fast query processing and

efficient transaction management.

Example: Point of sale (POS) systems, online

banking applications.
Analytic Processing (OLAP) :

o Online Analytical Processing (OLAP) systems are

designed for complex queries and data analysis,
allowing users to analyze large volumes of data for
decision-making. Key characteristics include:
Multidimensional Analysis: OLAP systems allow
users to view data from multiple perspectives
(dimensions) such as time, geography, and product
categories.

Aggregated Data: OLAP systems often store

summarized data for faster querying and analysis.
▪ Complex Queries: Supports complex
calculations, trend analysis, and advanced
data exploration.

▪ Example: Business intelligence tools used

for financial reporting and performance
analysis.
 OLAP Operations
► OLAP systems support various operations that enable users to
analyze data from different angles. Common OLAP operations
include:

► Roll-up: Aggregating data by reducing the level of detail (e.g.,

summarizing sales data from daily to monthly).

► Drill-down: Increasing the level of detail by breaking down

aggregated data (e.g., viewing monthly sales data at a daily level).
► Slice: Extracting a specific subset of data by selecting a
single dimension (e.g., viewing sales data for a specific
region).

► Dice: Creating a sub cube by selecting multiple dimensions

(e.g., analyzing sales data for a specific product category
across selected regions and time periods).

► Pivot: Reorienting data to provide an alternative

presentation (e.g., switching rows and columns in a report).
Business Reporting

o Business Reporting refers to the systematic process of

collecting, analyzing, and presenting business data to
support decision-making. It includes the generation of
regular reports, dashboards, and ad-hoc analysis.
Visual Analytics

Visual Analytics combines data visualization and data

analysis to enable users to explore data visually and derive
insights intuitively. It leverages interactive visual
representations to communicate complex information
effectively.
Different Types of Charts and
Graphs :
o Bar Charts

o Line Graphs

o Pie Charts

o Scatter Plots

o Heat Maps

o Histograms
Emergence of Data
Visualization and Visual
Analytics :
o Data visualization has gained prominence as organizations
seek to make data more accessible and understandable. The
rise of big data and complex datasets has led to the
development of advanced visual analytics tools that allow
users to interact with data dynamically, uncovering insights
that may not be apparent in traditional reports.
► The emergence of tools like Tableau, Power BI,
and QlikView has made it easier for
non-technical users to create visualizations and
derive insights without relying on IT or data
analysts.