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This is the scaled-down version from the presentation that I did in front of some local business people about the usefulness of existing business data when harnessed with Business Intelligence (BI) techniques and processes.
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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
214.436.3232
@nextcoderwill
