CH03_2206 - Introduction to Business Analytics Introduction...

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Unformatted text preview: Introduction to Business Analytics Introduction Chapter 3: Business Analytics and Data Chapter Visualization Visualization Matthew J. Liberatore Thomas Coghlan Fall 2008 Learning Objectives Learning List and briefly describe the major BA List methods and tools methods Describe how online analytical processing Describe (OLAP), data visualization, and multidimensionality can improve decision making making Describe geographical information Describe systems (GIS) and their support to decision making decision Learning Objectives Learning Describe real-time BA Explain how the Web relates to BA Describe Web intelligence and Web Describe analytics and their importance to organizations organizations Describe implementation issues related to Describe BA and success factors for BA BA Lexmark Improves Operations Lexmark with BI 1. 2. 3. 4. 5. Identify the challenges Lexmark faced regarding Identify information flow information How were the information flows provided before and How after implementation of the system? after Identify the decisions supported by the new system. How can the new system improve customer service? Go to Go and take the interactive tour of the SAS Retail Intelligence product. Compare it to Oracle Retail (see and Oracle Active Retail Intelligence in particular Oracle The Business Analytics (BA) Field: The An Overview An Business Analytics The use of analytical methods, either The manually or automatically, to derive relationships from data Remember that we defined business analytics (BA) to include the access, analytics reporting, and analysis of data supported by software to drive business performance and decision making and The Business Analytics (BA) Field: An Overview Overview The Business Analytics (BA) Field: The An Overview An MicroStrategy’s classification of BA MicroStrategy’s tools: The five styles of BI tools: 1. 1. 2. 3. 4. 5. Enterprise reporting Cube analysis Ad hoc querying and analysis Statistical analysis and data mining Report delivery and alerting The Business Analytics (BA) Field: An Overview Overview The Business Analytics (BA) Field: An Overview An SAP’s classification of strategic SAP’s enterprise management enterprise Three levels of support 1. 2. 3. 3. Operational Managerial Managerial Strategic The Business Analytics (BA) Field: An Overview An Executive information and support Executive systems systems Executive information systems (EIS) Provides rapid access to timely and Provides relevant information aiding in monitoring an organization’s performance Executive support systems (ESS) Also provides analysis support, Also communications, office automation, and intelligence support The Business Analytics (BA) Field: The An Overview An Drill-down The investigation of information in detail The (e.g., finding not only total sales but also sales by region, by product, or by salesperson). Finding the detailed sources sources Online Analytical Processing (OLAP) Online analytical processing (OLAP) An information system that enables the An user, while at a PC, to query the system, conduct an analysis, and so on. The result is generated in seconds Some applications can be found at: Online Analytical Processing (OLAP) Online OLAP versus OLTP OLTP concentrates on processing repetitive OLTP transactions in large quantities and conducting simple manipulations conducting OLAP involves examining many data items OLAP complex relationships complex OLAP may analyze relationships and look OLAP for patterns, trends, and exceptions for OLAP is a direct decision support method OLAP Reports and Queries Reports Reports Routine reports Routine Ad hoc (or on-demand) reports Ad Multilingual support Multilingual Scorecards and dashboards Scorecards Report delivery and alerting • • Report distribution through any touchpoint Report Self-subscription as well as administrator-based Self-subscription distribution • Delivery on-demand, on-schedule, or on-event Delivery • Automatic content personalization Automatic Reports and Queries Reports Ad hoc query A query that cannot be determined prior to query the moment the query is issued Structured Query Language (SQL) A data definition and management data language for relational databases. SQL front ends most relational DBMS Multidimensionality Multidimensionality Multidimensionality The ability to organize, present, and The analyze data by several dimensions, such as sales by region, by product, by salesperson, and by time (four dimensions) dimensions) Multidimensional presentation Dimensions Dimensions Measures Measures Time Time Multidimensionality Multidimensionality Multidimensional database A database in which the data are database organized specifically to support easy and quick multidimensional analysis Data cube A two-dimensional, three-dimensional, or higher-dimensional object in which each dimension of the data represents a measure of interest measure Multidimensionality Multidimensionality Cube A subset of highly interrelated data that is subset organized to allow users to combine any attributes in a cube (e.g., stores, products, customers, suppliers) with any metrics in the cube (e.g., sales, profit, units, age) to create various two-dimensional views, or slices, that can be displayed on a slices that computer screen Multidimensionality Multidimensionality Multidimensionality Multidimensionality Multidimensional tools and vendors Tools with multidimensional capabilities often Tools work in conjunction with database query systems and other OLAP tools Temtec Executive Viewer Multidimensionality Multidimensionality Multidimensionality Multidimensionality Limitations of dimensionality The multidimensional database can take up The significantly more computer storage room than a summarized relational database summarized Multidimensional products cost significantly more than Multidimensional standard relational products standard Database loading consumes significant system Database resources and time, depending on data volume and the number of dimensions the Interfaces and maintenance are more complex in Interfaces multidimensional databases than in relational databases Advanced Business Analytics Advanced Data mining and predictive analysis Data mining Predictive analysis Use of tools that help determine the probable future outcome for an event or the likelihood of a situation occurring. These tools also identify relationships and patterns and Several data mining tools will be discussed later discussed Data Visualization Data Data visualization A graphical, animation, or video presentation of data and the results of data analysis The ability to quickly identify important trends The in corporate and market data can provide competitive advantage competitive Check their magnitude of trends by using Check predictive models that provide significant business advantages in applications that drive content, transactions, or processes Data Visualization Data New directions in data visualization In the 1990s data visualization has moved In into: into: Mainstream computing, where it is integrated Mainstream with decision support tools and applications with Intelligent visualization, which includes data Intelligent (information) interpretation Data Visualization Data Data Visualization Data Data Visualization Data New directions in data visualization Dashboards and scorecards Visual analysis influence diagrams Financial data visualization Tree map examples: Geographic Information Systems (GIS) Information Geographical information system (GIS) An information system that uses spatial An data, such as digitized maps. A GIS is a combination of text, graphics, icons, and symbols on maps Geographic Information Systems (GIS) Information As GIS tools become increasingly As sophisticated and affordable, they help more companies and governments understand: understand: Precisely where their trucks, workers, and Precisely resources are located resources Where they need to go to service a customer The best way to get from here to there The Geographic Information Systems (GIS) Information GIS and decision making GIS applications are used to improve decision making GIS in the public and private sectors including: in • • • • • Dispatch of emergency vehicles Transit management Facility site selection Drought risk management Wildlife management Wildlife Local governments use GIS applications for used Local mapping and other decision-making applications Geographic Information Systems (GIS) Information GIS combined with GPS Global positioning systems (GPS) Wireless devices that use satellites to Wireless enable users to detect the position on earth of items (e.g., cars or people) the devices are attached to, with reasonable precision Geographic Information Systems (GIS) Information GIS and the Internet/intranets Most major GIS software vendors provide Web Most access that hooks directly to their software GIS can help the manager of a retail operation GIS determine where to locate retail outlets determine Some firms are deploying GIS on the Internet for Some internal use or for use by their customers (locate the closest store location) Real-Time BI Real-Time The trend toward BI software producing The real-time data updates for real-time analysis and real-time decision making is growing rapidly growing Part of this push involves getting the right Part information to operational and tactical personnel so that they can use new BA tools and up-to-the-minute results to make decisions Real-Time BI Real-Time Concerns about real-time systems An important issue in real-time computing is An that not all data should be updated continuously when reports are generated in real-time when because one person’s results may not match another person’s causing confusion another Real-time data are necessary in many cases Real-time for the creation of ADS systems BA and the Web: Web Intelligence and Web Analytics Intelligence Using the Web in BA Web analytics The application of business analytics activities to Web-based processes, including e-commerce BA and the Web: Web Intelligence and Web Analytics Intelligence Clickstream analysis The analysis of data that occur in the Web environment. environment. Clickstream data Data that provide a trail of the user’s Data activities and show the user’s browsing patterns (e.g., which sites are visited, which pages, how long) BA and the Web: Web Intelligence and Web Analytics Intelligence Usage, Benefits, and Success of BA and Usage of BA Almost all managers and executives can use Almost some BA systems, but some find the tools too complicated to use or they are not trained properly. Most businesses want a greater percentage of Most the enterprise to leverage analytics; most of the challenges related to technology adoption involve culture, people, and processes Usage, Benefits, and Success of BA and Success and usability of BA Performance management systems (PMS) are Performance BI tools that provide scorecards and other relevant information that decision makers use to determine their level of success in reaching their goals Usage, Benefits, and Success of BA and Why BI/BA projects fail 1. 1. 2. 3. Failure to recognize BI projects as crossorganizational business initiatives and to organizational understand that, as such, they differ from typical standalone solutions typical Unengaged or weak business sponsors Unavailable or unwilling business Unavailable representatives from the functional areas representatives Usage, Benefits, and Success of BA and Why BI/BA projects fail 1. 1. Lack of skilled (or available) staff, or Lack suboptimal staff utilization suboptimal 2. 3. No software release concept (i.e., no No iterative development method) iterative No work breakdown structure (i.e., no No methodology) methodology) Usage, Benefits, and Success of BA and Why BI/BA projects fail 1. 1. 2. 3. 4. No business analysis or standardization No activities activities No appreciation of the negative impact No of “dirty data” on business profitability of No understanding of the necessity for No and the use of metadata and Too much reliance on disparate Too methods and tools methods Usage, Benefits, and Success of BA and System development and the need for System integration integration Developing an effective BI decision support Developing application can be fairly complex Integration, whether of applications, data Integration, sources, or even development environment, is a major CSF for BI ...
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This note was uploaded on 07/22/2010 for the course MGMT 100 taught by Professor A during the Spring '10 term at Aarhus Universitet.

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