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Lecture 1 (BI)

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MIRPUR UNIVERSITY OF SCIENCE AND TECHNOLOGY

DEPARTMENT OF SOFTWARE ENGINEERING


Business Intelligence
(Lecture # 1)
Introduction to Business Intelligence

Saba Zafar
(Lecturer)

Date: 4th-5-2023
Course Objectives
• To impart knowledge of data warehousing to students
• To give practical knowledge to students regarding data cleaning/ETL (Extract ,transform,Load)and
EDA(Electronic design automation) techniques
• To teach the standard BI methodology to the students, i.e., how to solve business problems using
BI techniques and tools
• To impart the skill of data-driven decision making through interactive dashboards with hands-on
activities on a BI tool of the instructor’s choice
• To convey knowledge about the BI practices and trends being followed in the global industry

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Course Learning Outcomes
1. Skills to execute Data-driven decision making through BI, through the use of specific charts
and designing interactive dashboards and stories
2. Skills to execute Data cleaning/ETL and EDA activities for a BI project
3. Knowledge of core BI methodology and its strong relationship with data warehousing
4. Knowledge of current BI practices and trends in the global industry

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LECTURE CONTENTS

1. What is Business Intelligence

2. What is warehouse

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What is Business Intelligence

1. Business intelligence refers to skills,processes,technologies,applications and practices used to support


decision making.

2. System that provide directed background data and reporting tools to support and improve the decision
making process.

3. A popularized, umbrella term used to describe a set of concepts and methods to improve business
decision making by using fact based support systems. The term is sometimes used interchangeably with
briefing books and executive information systems.

4. Business intelligence is a broad category of applications and technologies for


gathering ,storing ,analyzing and providing access to data to help clients make better business decisions.

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Business Intelligence

• Business intelligence comprises the strategies and technologies used by


organization for the data analysis of business information.
• Business intelligence is a set of processes, architecture and technologies
that convert raw data into meaningful information that drives profitable
business actions.
• Business intelligence has a direct impact on organizations strategic,
tactical and operational business decisions.

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Business Intelligence
• Business Intelligence refers to the technology that enables businesses to
organize,analyze and contextualize business data from around the
company.
• BI includes multiple tools and techniques to transform raw data into
meaningful and actionable information.
• Combines business analytics, data mining, data visualization, data tools
and infrastructure, and best practices to help organizations make more
data driven decisions.

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Business Intelligence
• BI Sales,marketing,finance and operations departments use business intelligence.
• Includes quantitative analysis, measuring performance against business goals,
gaining customer insights and sharing data to identify new opportunities.
• For example: sales data analysts and operation managers often use BI dashboards
and key performance indicators for quick access to complex information like
discount analysis,customer profitability and customer lifetime value.

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Business Intelligence

• Sales managers monitor revenue targets, sales performance along with the status of the sales
pipeline using dashboards with reports and data visualizations.
• BI systems have four main parts:
• A data warehouse stores company information from a variety of sources in a centralized and
accessible location.
• Business analytics or data management tools mine and analyze data in the data warehouse.
( qlickview).
• Business performance management tools monitor and analyze progress towards business goals.

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Business Intelligence

• A user interface provides quick access the information.


Advantages of Business intelligence
• Faster analysis, intuitive dashboards.
• Increased organizational efficiency.
• Data driven business decisions.
• Improved customer experience.
• Improved employee satisfaction.

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Data warehouse

• Bill inmon ,considered to be the father of data warehousing ,provides the following definition
• A data ware house is a subject oriented, integrated ,nonvolatile and time variant collection of data
in support of management’s decisions.
• Sean Kelly defines the data warehouse in the following way
• The data in the data warehouse is separate,available,integrated,time stamped,subject
oriented,nonvolatile and accessible.

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Subject Oriented data

• In operational systems,we store data by individual applications.


• In the data sets for an order processing applications,we keep the data for that particular
application.
• These data sets provide the data for all the functions for entering orders ,checking stocks,verifying
customers credit and assigning the order for shipment.
• Therefore the data sets for each application need to be organized around that specific applications.

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What is OLAP?

• Online analytical processing(OLAP)  is a system for performing multi-dimensional analysis at high
speeds on large volumes of data.
• Typically, this data is from a data warehouse, data mart or some other centralized data store.
• OLAP is ideal for data mining, business intelligence and complex analytical calculations, as well as
business reporting functions like financial analysis, budgeting and sales forecasting.

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What is OLTP?
• Online transactional processing (OLTP) enables the real-time execution of large numbers of
database transactions by large numbers of people, typically over the Internet.
• OLTP systems are behind many of our everyday transactions, from ATMs to in-store purchases to
hotel reservations.
• OLTP can also drive non-financial transactions, including password changes and text messages.
OLTP vs OLAP
• Online analytical processing (OLAP) and online transaction processing (OLTP) are two different
data processing systems designed for different purposes. OLAP is optimized for complex data
analysis and reporting, while OLTP is optimized for transactional processing and real-time
updates.

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References

• Business Analytics -Taking Business Intelligence Beyond Reporting by Gert Laursen and Jesper
Thorlund, Wiley 2010
• Business Analytics for Managers by Wolfgang Jank (Published by Springer)
• Business Analytics by James R. Evans (Published by Pearson)

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THANKS

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