Bi Intro

DefinitionMotivationsGoals

Business IntelligencePart I: Introduction

Business IntelligencePart I: Introduction

Welcome to the “Data-driven World”

Any organizations that deal with budget, projects, and targetsAny businesses that uses this

equation: Revenue – Cost = Profit

BI: DefinitionWho is it for?

Using your data to help your business growA means to discover loss

profit and hidden costReducing stress and

increasing confidence in decisions… The smart thing to do!

BI: DefinitionBusiness Intelligence is ...

Just as medical labs analyze our blood

Just as oil-analysis labs analyze oil samples inside of an engine

When we measure key indicators, we can be in a preventive mode

BI: DefinitionHow does BI do it?

You cannot improve what you don't measureYou cannot fix problems you

don't know about

BI: DefintionSo what?

How much is the cost of

increasing your revenues?

How much is the cost of solving your business problems?

BI: DefintionHow Much?

Data is the lifeblood of all organizations especially businesses

The quality of data is an indicator of the quality of the decisions made based on it

In one sense:

● Business = Business Data + Business Rules

BI: MotivationsWhat is the big deal with Data?

BI: MotivationsWhy is BI crucial for businesses?

vs

Name Jane Doe

Address 123 Main St.

Profession Attorney

Last purchase

5/5/2013

Purchase frequency

2-3 times a month

Most frequently purchased product

Acme Black Shoes

Most expensive product purchased

Acme Red Shoes

Birthday 7/4

BI: MotivationsBI is Marketing

“What good does your data do for you, sitting inside the database?”

Data is everywhere

Data is used by everyone

Data does not maintain itself

Data “Goes Bad” over time

Only accurate and reliable data is useful and valuable

BI: MotivationsSome Facts about Data

Data is Everywhere

Payroll andEmployment

History OrdersAnd

Invoices

WarehousesAnd

DistributionCenters

OrganizationChart

ManufacturingAnd

Inventory

Legal and FinancialContracts

ProductsAnd

Catalogs

Point of SaleOr

E-commerce

GeneralLedger

MarketingAnd

Promotions

Data is used by Everyone

BusinessData

IRS andState

Tax Authority

Investors andBanks

Accountants and

Lawyers

BusinessOwner

Vendors

Customers

Invalid data entry – will happen no matter what

Data is regulated by Business Rules● There are External and Internal Rules● What must happen when they change? ● Rule changes introduce problems due to

non-uniform understanding, human or system errors

Data accuracy and reliability degrade over time – invisibly. We can't see it unless we do something about it.

BI: MotivationsHow does Data go bad?

Customer delivery address: 1 expected, 3 found ← Ambiguity

Missing digits in accounting cumulative figures ← Inaccuracy (Lost Profits)

Airline ticket type column: Sometimes missing ← Unreliable

Discount being applied beyond expiry time ← Rule Error (Hidden Expenses)

Incomplete transaction data ← 'Epic' Missing Data

BI: MotivationsWhat does bad data look like?

BI: MotivationsExample: Parts List Condition vs Quantity–

Data Management: Strategic plans to regulate data flow using business rules

Data Maintenance: Day-to-day job of making sure that data quality is high. Especially after any rule changes

Data Analytics: Using high-quality data to answer questions or to come up with new insights

BI: MotivationsHow does BI deal with Bad Data?

Seventy percent of Data Mgmt., Maintenance, and Analysis is performed by data personnels.

Not a lot of companies have in-house data personnels.

Twenty percent depends on the BI suite choice.

Ten percent depends on hardware setup.

BI: MotivationsWhy are Data Personnels Useful?

Business and IT care about the same thing: Data

But they understand data differently

BI should be in-between IT and Executives (business)

BI: GoalsIsn't BI part of IT Dept.?

Data Warehouse: Implementation

To automate existing manual processes● To reduce human errors● To reduce the time spent

To monitor the application of business rules on data

To simplify information from multiple sources

BI: GoalsObjectives

How's business? Profit up, cost down?

What do you do with online marketing?

Do you tell your customers that you're doing a good job?

What is your plan to service more customers? Expand to adjacent markets?

Do you generate reports manually? Do you maintain the numbers manually?

BI: GoalsHow to talk BI without saying 'data'?

97,859 Businesses with 1 to 9 employees and 37,940 Businesses with 10 to 99 employees in DFW alone (US Census Bureau, 2009)

High volume transactions: Transaction Processing, Warehouses, Suppliers, Distributors, Manufacturing, etc.

Low volume transactions: Grocery Stores, Multi-store franchises (restaurants, salons, fitness clubs, etc.)

BI: GoalsHow big is the market for BI?

For more info on using

BI for your business:

Will Gunadi

will@nextcoder.com

214.436.3232

@nextcoderwill