© 2010 All Rights Reserved. SAP UA Introduction to Business Intelligence SAP University AlliancesVersion 2.0 Authors Klaus FreyburgerPeter Lehmann

© 2010 All Rights Reserved. SAP UA

Introduction to Business Intelligence

SAP University Alliances

Version 2.0

Authors Klaus Freyburger

Peter Lehmann

SAP UA

Page 2© 2010 SAP AG

SAP BI Curriculum BI1-M1 Introduction to Business Intelligence

Agenda

What is Business Intelligence?

What is a „Data Warehouse“?

What are the benefits and challenges?

What does „multi-dimensional“ mean?

What is „OLAP“?

OLTP versus OLAP

Business Intelligence tool box

Agenda

SAP UA




SAP UA



What is Intelligence?

Definition:

1.The ability to learn or understand or deal with new and trying situations

2.The ability to apply knowledge to manipulate one’s environment

Source: Merriam-Webster’s Online Dictionary

SAP UA



Intelligence in Business

• What is the current status of the business?– What’s going well?– What needs improvement?

• What are the business’ strengths and weaknesses?

• Are there opportunities for innovation or competitive advantage?

• How do we improve our decision making?

Yesterday – Now - Tomorrow

SAP UA



Main Objective of Business Intelligence

Support intelligence (e.g., knowledge of status)

SAP UA



A Brief History of Information Systems

ERP Systems

SAP UA



Information Systems in a Company!?

SAP UA



Definition: „Business Intelligence“

„Business Intelligence“ covers strategies, processes and technologies in order to achieve knowledge about status, potentials and perspectives of a company out of heterogeneous and distributed data.

?

Definition Source: Institut für Business Intelligence (IBI), http://www.i-bi.de/home/index.html

SAP UA



Business Intelligence Turns Data into Knowledge

Data

Information

Knowledge

Decision

Product AProduct BCustomer Smith

Customer Smithbuys product A

Product A & B havea 80% sales correlation

Offer product B to customer Smith

SAP UA



Business Intelligence Stages

Source: Brobst, S. and J. Rarey, "Five Stages of Data Warehouse Decision Support Evolution", DSSResources.COM, 01/06/2003

SAP UA



Agenda





What is „OLAP“?

OLTP versus OLAP


Agenda

SAP UA



What is a Data Warehouse?

A data warehouse is the most commondata architecture for business intelligence.

A data warehouse is a specificcompany-wide data pool in order to support decision makers.- Top management- Mid and lower management- Planners, controllers, …- …

Data Warehouse

SAP UA



Data Warehouse Characteristics

"A Data Warehouse is a subject-oriented, integrated, time-variant and nonvolatile collection of data in order to support management decisions,“ Bill Inmon (1996).

- Subject-oriented• The organization of data is guided by the view of decision makers on specific areas of

business.

- Integrated• The Data Warehouse contains data from different internal and external sources. Important

is the high quality of data, i.e., its correctness and consistency.

- Time-oriented• Data in a Data Warehouse has a time dimension, i.e. all data values and their changes in

time can be compared and analyzed along the time axis.

- Nonvolatile• As opposed to operational databases, data are stored persistently in a Data Warehouse.

Access is by reading the data; analysis does not change the data.

SAP UA



Data Integration Process

Source systems- External data sources- Internal data sources

Multi-dimensional data- Information models- Aggregation

Extraction, trans-formation, loading

- Selection, extraction, - Modification, loading

Data warehouse- Data storage- Administration

Data analysis and analytical applications

- OLAP, MIS, cockpits, …- Planning, scorecard, …

SAP UA



Business Intelligence Platforms – 2008

Source: Gartner 2008

SAP UA





SAP UA





SAP UA



Agenda





What is „OLAP“?

OLTP versus OLAP


Agenda

SAP UA



Benefit: Reduce Action Time

AddedValue

Time

OperationalTransaction

Data Available

Analysis ResultsAvailable

DecisionMade

Action ImplementedData

accesstime

Analysistime Decision

timeImplementation

time

Action time

Ad

ded

V

alu

e lo

ss

Source: Hackathorn, R.: Minimizing Action Distance (2003), http://www.tdan.com/view-articles/5132/

SAP UA



Benefit: Reduce Action Time to Nearly Real Time

AddedValue

Time

OperationalTransaction

Data Available

Analysis ResultsAvailable

Decision Made

Action Implemented

Saved Time

Sav

ed

Val

ue

Action Implemented

SAP UA



Other Benefits

Increased- Information quality by a „single version of the truth“

- Competitive ability

- Customer satisfaction

- Inter-company and inter-department collaboration

- Alignment with business strategy

Compliance with financial reporting regulations- Risk management

- Financial consolidation

- Corporate planning and forecasting

- SOX (US), BASEL II (European Community), etc.

- …

SAP UA



Challenges (1)

Data Quality- Precise

- Subject-oriented

- Complete

- Accessable

- Flexibility

- Security and authorisation

- Time dependencies

SAP UA



Challenges (2)

Business Terms – What do you mean?- „What is our revenue“?

- „95% of our trains arrive just in time!“

- “How many students will certainly finish?”

- …I have a

stock here that

could really excel !

This isMadness!

I can‘t take anymore

Good Bye

SAP UA



Challenges (3)

Tools – easy to use?

SAP UA



Challenges (4)

Others- No clear project scope

- No management project support

- No appropriated IT infrastructure

- Inadequate staff qualification

- Lack of end user acceptance

- …

SAP UA



Agenda





What is „OLAP“?

OLTP versus OLAP


Agenda

SAP UA



Multi-dimensional (1)

A key figure without a relationship to any object makes no sense!

1388486

A telephone number?

A material number?

Revenue in September 2007?

My boss‘ salary?

SAP UA




San Francisco had 1,388,486 USD revenue in May 2007 by selling Mountain Bikes

Revenue in USD:1,388,486

Month: May

Sales Organisation:

San Francisco

Group: Mountain Bike

Year: 2007

SAP UA




Key figure: Revenue

Object: Values- Month May

- Year 2007

- Sales Organisation San Francisco

- Material Group Mountain Bike

Multi-dimensional means a key figure always relates to one or more objects.

SAP UA



Agenda





What is „OLAP“?

OLTP versus OLAP


Agenda

SAP UA



OLAP

On-line Analytical Processing is a software technology which allows end-user driven, fast and interactive data analysis.

On-line Analytical Processing is a software technology which allows end-user driven, fast and interactive data analysis.

Revenue1,388,486 USD

SAP UA



Excel PivotTable

„What is the revenue in each country in 2007?“

SAP UA



Excel PivotTable (1)

SAP UA



Excel Pivot Table (2)

„What is the revenue in each country per month?“

SAP UA



Pivot Table (3)

SAP UA



From Table View to a 3-Dimensional Cube

SAP UA



Hierachies Allow Subcubes in a Cube

Product group products

Year quarter months

Country sales organisation

Example

SAP UA



From Cube to Report: MS Excel

SAP UA



From Cube to Report: SAP Business Explorer (1)

SAP UA




click

SAP UA




SAP UA



Cube Navigation (1)

Slice

SAP UA



Cube Navigation (2)

Rotation

SAP UA



Cube Navigation (3)

Rotation, ExampleMaterial Group

and Country visible, Year

restricted to 2007

Material Group and Year visible,

all Countries aggregated

SAP UA



Cube Navigation (4)

Dice

SAP UA



Cube Navigation (5)

Drill-Down / Roll-Up

SAP UA



Cube Navigation (Summary)

Rotation

Slice

Dice

Drilldown

SAP UA



Is a Excel an OLAP Tool?

CFOs & controllers love it

Cheap

MS Office component

Easy to use

Nice graphics

SAP UA



Is Excel an OLAP tool? What about…

Concurrent users?

Data volume?

Processing performance?

Aggregation behavior (fat client)?

Authorizations?

Metadata?

Many data sources?

Cell references?

…

SAP UA



Requirement for OLAP Systems

Many concurrent users (1000+)

Sophisticated authorizations and security

Fast response time (< 5 sec)

High data volumes (>100+ GB or TB)

Multiple data sources

Easy to use (slice, dice, drill-down, roll-up)

Enhanced reporting functions

SAP UA



Exercises

OLAP navigation using Excel PivotTables

OLAP navigation in SAP - Business Explorer Analyzer (Excel)- Business Explorer Web (Browser)

SAP UA



BI Architecture

Source systems- External data sources- Internal data sources

Multi-dimensional data- Information models- Aggregation

Extraction, trans-formation, loading

- Selection, extraction, - Modification, loading

Data warehouse- Data storage- Administration

Data analysis and analytical applications

- OLAP, MIS, cockpits, …- Planning, scorecard, …

SAP UA



Examples

SAP UA



Agenda





What is „OLAP“?

OLTP versus OLAP


Agenda

SAP UA



Information SystemsVe

rtic

al In

tegr

atio

n

CorporatePlanning

Accounting

Supplier Management,Production Planning,Cost Planning, …

Su

pp

lie

rA

cc

ou

nti

ng

Purchasing Stocks Sales Personnel

Wa

reh

ou

se

Ac

co

un

tin

g

Cu

sto

me

rIn

vo

ice

s

Em

plo

ye

eS

ala

ryAdministration II:Amount-OrientedProcessing

Administration I: Value-OrientedProcessing

Disposition andPlanning

Analysis and Controlling

StrategicEnterpriseManagement

Horizontal Integration

Source: Mertens, P., Meier, M.: Integrierte Informationsverarbeitung (2009), 1.

SAP UA



OLTP versus OLAP

On-line Transactional

Processing

On-line Analytical

Processing

CorporatePlanning

Accounting


Su

pp

lie

rA

cc

ou

nti

ng


Wa

reh

ou

se

Ac

co

un

tin

g

Cu

sto

me

rIn

vo

ice

s

Em

plo

ye

eS

ala

ry

Administration II:Amount-OrientedProcessing






SAP UA



OLTP Versus OLAP (1)

OLTP OLAP

- Optimized to get data in - Optimized to get data out

- For management and daily business

- For administration and daily decisions

- Processes a small amount of data per transaction

- Processes a large amount of data per transaction

- Business-critical availability - Less critical availability

- Data updates online - Data updates regularly

- Data overwritten - Data are time-dependent

SAP UA



OLTP Versus OLAP (2)

It is very hard to get all-in-one!

SAP UA



Agenda





What is „OLAP“?

OLTP versus OLAP


Agenda

SAP UA



CorporatePlanning

Accounting


Su

pp

lie

rA

cc

ou

nti

ng


Wa

reh

ou

se

Ac

co

un

tin

g

Cu

sto

me

rIn

vo

ice

s

Em

plo

ye

eS

ala

ryAdministration II:Amount-OrientedProcessing






Where Are the End Users?

Top Management

Middle Management

Lower Management

SAP UA



What Do They Do?

Specialists (Authors)

Analysts

Consumers

10%

20%

70%

SAP UA



Consumers

Get reports on a regular base

Look over huge amount of data

Occasionally stumble on something that provesto be useful

Sporadic usage of data

Sometimes find areas for further exploration

Heavy reliance on tools for displaying data

SAP UA



Analysts

Regular access to data

Know what they are looking for

Requirements known before search for data starts

Find small flakes of gold regularly

Make use of tools for analysis and presentation

SAP UA



Specialists (Authors)

Requirements are known

Irregular access to data

Look over massive amounts of data

Sometimes find huge nuggets of gold

Unpredictable pattern of access

Access detailed data regularly

Look at relationships of data

Make use of tools of discovery, analysis and presentation

Make results available to others (consumers,analysts)

SAP UA



Business Intelligence Tool Box

Source: Eckerson, W. (May 2006). Business intelligence 2006 - only the beginning. What Works, 21.

SAP UA



Summary





What is „OLAP“?

OLTP versus OLAP


Agenda

Documents

© 2010 All Rights Reserved. SAP UA Introduction to Business Intelligence SAP University AlliancesVersion 2.0 Authors Klaus FreyburgerPeter Lehmann