Lecture 01: Introduction Business Intelligence (IT-429)

Business Intelligence
(IT429)
Mr. Kashif Mughal

1 Sir Syed University of Engineering & Technology Prepared By: Kashif Mughal
Lecture 01: Introduction Business Intelligence (IT-429)

Learning Objectives

 What is BI
 Why BI is important
 Trends in BI
 How BI Works
 BI Methods
 BI vs Big Data
Advantages / Disadvantages of BI
 Examples

2 Sir Syed University of Engineering & Technology Prepared By: Kashif Mughal
Lecture 01: Introduction Business Intelligence (IT-429)

What is Business Intelligence

BI(Business Intelligence) is a set of processes,

architectures, and technologies that convert raw
data into meaningful information that drives
profitable business actions. It is a suite of software
and services to transform data into actionable
intelligence and knowledge.

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Why BI is important

• Measurement: creating KPI (Key Performance Indicators)

based on historic data
• Identify and set benchmarks for varied processes.
• With BI systems organizations can identify market trends
and spot business problems that need to be addressed.
• BI helps on data visualization that enhances the data quality
and thereby the quality of decision making.
• BI systems can be used not just by enterprises but SME
(Small and Medium Enterprises)

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Trends in Business Intelligence

Artificial Intelligence: Gartner’ report indicates that AI and

machine learning now take on complex tasks done by human
intelligence. This capability is being leveraged to come up with
real-time data analysis and dashboard reporting.

Collaborative BI: BI software combined with collaboration tools,

including social media, and other latest technologies enhance the
working and sharing by teams for collaborative decision making.

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Lecture 01: Introduction Business Intelligence (IT-429)

Trends in Business Intelligence

Embedded BI: Embedded BI allows the integration of BI

software or some of its features into another business application
for enhancing and extending it’s reporting functionality.

Cloud Analytics: BI applications will be soon offered in the

cloud, and more businesses will be shifting to this technology. As
per their predictions within a couple of years, the spending on
cloud-based analytics will grow 4.5 times faster.

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Lecture 01: Introduction Business Intelligence (IT-429)

How Business Intelligence Works

Businesses and organizations

have questions and goals. To
answer these questions and track
performance against these goals,
they gather the necessary data,
analyze it, and determine which
actions to take to reach their goals.

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Lecture 01: Introduction Business Intelligence (IT-429)

How Business Intelligence Works

On the technical side, raw data is

collected from business systems.
Data is processed and then stored
in data warehouses, the cloud,
applications, and files. Once it’s
stored, users can access the data,
starting the analysis process to
answer business questions.

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Lecture 01: Introduction Business Intelligence (IT-429)

How Business Intelligence Works

BI platforms also offer data

visualization tools, which
convert data into charts or
graphs, as well as presenting
to any key stakeholders or
decision-makers.

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Lecture 01: Introduction Business Intelligence (IT-429)

Business Intelligence Methods

Much more than a specific “thing,” business intelligence is an

umbrella term that covers the processes and methods of
collecting, storing, and analyzing data from business operations
or activities to optimize performance. All of these things come
together to create a comprehensive view of a business to help
people make better, actionable decisions.

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Lecture 01: Introduction Business Intelligence (IT-429)

Business Intelligence Methods

These processes include:

• Data mining • Statistical analysis

• Reporting • Data visualization
• Performance metrics • Visual analysis
• Descriptive analytics • Data preparation
• Querying
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Lecture 01: Introduction Business Intelligence (IT-429)

Business Intelligence & Big Data

Big data
data experts
define it by “the Volume Velocity
four Vs.

These four define

big data and set it
apart.
Value Variety
12 Sir Syed University of Engineering & Technology Prepared By: Kashif Mughal
Lecture 01: Introduction Business Intelligence (IT-429)

Business Intelligence & Big Data

As you can imagine, this is important for BI as businesses

create more and more data by the year, and BI platforms
have to keep up with the increasing demands made on them.
A good platform will grow with increasing demands. But if not
maintained, dashboards and data sources may fall behind as
big data evolves.

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Lecture 01: Introduction Business Intelligence (IT-429)

Advantages of Business Intelligence

1. Boost productivity

With a BI program, It is possible for businesses to create reports

with a single click thus saves lots of time and resources. It also
allows employees to be more productive on their tasks.

2. To improve visibility

BI also helps to improve the visibility of these processes and make

it possible to identify any areas which need attention.

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Advantages of Business Intelligence

3. Fix Accountability

BI system assigns accountability in the organization as there must be

someone who should own accountability and ownership for the
organization’s performance against its set goals.

4. It gives a bird’s eye view:

BI system also helps organizations as decision makers get an overall

bird’s eye view through typical BI features like dashboards and
scorecards.
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Advantages of Business Intelligence

5. It streamlines business processes:

BI takes out all complexity associated with business processes. It also

automates analytics by offering predictive analysis, computer
modeling, benchmarking and other methodologies.

6. It allows for easy analytics.

BI software has democratized its usage, allowing even nontechnical or

non-analysts users to collect and process data quickly. This also allows
putting the power of analytics from the hand’s many people.

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Disadvantages of Business Intelligence

1. Cost:

Business intelligence can prove costly for small as well as for

medium-sized enterprises. The use of such type of system may be
expensive for routine business transactions.

2. Complexity:

Another drawback of BI is its complexity in implementation of

datawarehouse. It can be so complex that it can make business
techniques rigid to deal with.
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Disadvantages of Business Intelligence

3. Limited use

Like all improved technologies, BI was first established keeping in

consideration the buying competence of rich firms. Therefore, BI
system is yet not affordable for many small and medium size
companies.

4. Time Consuming Implementation

It takes almost one and half year for data warehousing system to be
completely implemented. Therefore, it is a time-consuming process.
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Lecture 01: Introduction Business Intelligence (IT-429)

Examples of BI System

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Lecture 01: Introduction Business Intelligence (IT-429)

Examples of BI System

Example 2:

A hotel owner uses BI analytical applications to gather statistical

information regarding average occupancy and room rate. It helps
to find aggregate revenue generated per room.
It also collects statistics on market share and data from customer
surveys from each hotel to decides its competitive position in
various markets.

By analyzing these trends year by year, month by month and day

by day helps management to offer discounts on room rentals.

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Examples of BI System

Example 3:

A bank gives branch managers access to BI applications. It

helps branch manager to determine who are the most profitable
customers and which customers they should work on.

The use of BI tools frees information technology staff from the

task of generating analytical reports for the departments. It also
gives department personnel access to a richer data source.

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