Module-3
BI Implementation:
Key Drivers :
For executives and decision-makers, the need to digitize their processes becomes more
pronounced as the competitive advantages that can be accrued from implementing
solutions like business intelligence.
Tech Drivers
When it comes to technology needs driving the adoption of business intelligence, there
are some clear commonalities between organizations as a whole that appear to be pushing
the growth of the market.
Firstly, there is a frequent desire among businesses to adopt business intelligence for its
technology capabilities and what it can provide in terms of analytics capacity.
significant is the fact that these trends have persisted over a long period of time as key drivers
as reported by decision-makers and executives, suggesting their long-term significance with
regard to driving BI adoption.
Business Drivers
Business drivers for business intelligence adoption among organizations have long been
the biggest forces pushing the growth of the industry and show no sign of letting up.
In the simplest terms, rather than specific tech use cases being the primary drivers of
adoption, the desire to modernize organizations in terms of how they are structured from
a data and analytics standpoint is more often than not the guiding influence in driving BI
strategies.
Financial Drivers
Technology is often implemented in an organization for better efficiency and to improve
a company’s bottom line, and business intelligence is no different.
In this regard, the adoption of business intelligence and a primary driver of BI in companies
is the return on investment they hope to see from the better utilization of data.
Business intelligence is a significant and disruptive part of the business tech landscape
today.
By leveraging data and information effectively, companies can substantially improve their
operational capabilities, and become more data-driven, and more competitive as a result.
Adoption of business intelligence is typically driven by the three key factors we’ve looked
at today—the desire to be more advanced from a tech standpoint, the need to make
better use of data for operational purposes, and the improved productivity that can be reaped
from BI implementation.
Key Performance Indicators and Performance Metrics :
Key performance indicators are data that show and just how good and are at attaining and business
goals. Meanwhile, metrics track the status of and business processes. With KPIs, and will know if and're
hitting and overall business targets, while metrics focus on the performance of specific business
processes.
KPI stands for key performance indicator, a quantifiable measure of performance over time for a
specific objective. KPIs provide targets for teams to shoot for, milestones to gauge progress, and
insights that help people across the organization make better decisions.
The best performing businesses work their way through numbers, and there’s no reason why and
shouldn’t give more flesh to and business decisions as they do. Business intelligence key performance
indicators or KPIs allow and to glean the overall health of company, any one of departments or even
how and customers perceive and company. And nowadays, don’t have to tread the business
intelligence game manually. And just have to invest in an excellent business intelligence tool to weave
the magic numbers for and, a feat that is severely limited or altogether forbidding in the past. If and
are resourceful enough, should know which business intelligence tools is best for and unique needs.
1. Financial Metrics :
From a tool like and accounting software, and should be looking at and cash flow, and balance sheet
and income statement to derive and financial metrics. One look at any of these metrics should tell and
if and business is healthy moneywise, which means and are generating revenue and astutely handling
and finances. If and are planning to steer and company into new growth direction or to spark interest
from potential investors, and will be presenting these financial KPIs to them for proof of investment
value.
2. Marketing Metrics :
Business-wise, next only to financial metrics in the ladder of importance. Marketing metrics reveal the
numbers to inform whether your latest marketing campaigns are delivering the rates have set to reach.
Capable marketing software tools should give the values, for example, on new content approach riding
latest marketing campaigns across multiple channels.
3. Project Management Metrics :
Productivity
Productivity is a straightforward computation of how much you are getting from all those that you put
into a project. By dividing all the input units with the output units, you get a good picture of how efficient
you are using the resources available to you for each project.
Return on Investment (ROI)
Return on investment tells you how much you get in return for each dollar you invested in a project. It’s
a simple equation that involves the project net benefits divided by the costs, then multiplying the result
by 100.
4. Customer Service Metrics
Net Promoter Score (NPS)
Sourced from a single-question survey, this gold standard customer experience metric gives you a singular
picture of customer loyalty. Customers respond with values ranging from 0 to 100, where you will be
aiming for the higher end of the range. get promoters from those who score 9 or 10, passive from those
who score 8 or 9 and detractors from those who give a score of 0 to 6.
BI Architecture :
Business intelligence architecture consists of a collection of principles and guidelines that empower
business organizations to leverage computer-based methods and technologies for generating
meaningful insights. These methodologies are significantly for business intelligence design systems that
streamline online data visualization, reporting, and analysis.
The fundamental purpose of business architecture is to close the gap that exists between an
organization’s strategic objectives and its operational realities. It entails comprehending the purpose,
vision, and goals of the company and converting them into real-world systems and procedures that
facilitate efficient execution. Business architecture strives to improve operations, boost efficiency, and
spur innovation by coordinating the many parts of an organization.
Components of BI Architecture :
Data management
As the name implies, it is concerned with how you gather, keep, and access data. In order to support BI
activities, a solid data management system must be in place. This system should be tailored to the
organization’s unique requirements.
Data management happens at all levels of the company, from sensor and device data to personnel data,
everything is recorded into databases. External sources of data including social media, market research
organizations, and government authorities are also stored.
Data Analytics
The process of transforming data into insights is known as data analytics. Businesses may acquire a better
knowledge of their consumers, operations, and industry trends by utilizing data analytics.
There are several sorts of data analytics, but they all have the same goal: to assist organizations in making
decision processes to get better results.
Data analytics may be classified into three types: descriptive analytics, predictive analytics, and prescriptive
analytics.
• Descriptive analytics provides a solution to the inquiry, “What happened?”
Its objective is to comprehend historical events and patterns.
• Predictive analytics: Predictive analytics provides a solution to the query, “What will happen?”
It’s useful to predict future events and trends.
• Prescriptive analytics: Prescriptive analytics provides a solution to the query, “What should we do?”
Business Decision Making :
A business decision, called an operational decision, is any choice made by a business professional that
determines short-term or long-term company activities. Professionals make business decisions in
response to a variety of different situations, including determining which job candidate to hire, how to
distribute department budgets, when to expand into a new product market, if they should merge
branches and other situations that require well-thought out actions.
A cyclic process of Intelligence Creation :
Phase 1: Analyze Business Requirements
The first step in the Business Intelligence life cycle is to analyze the business requirements. The user
identifies the business requirements in order to determine the type of analysis that the user then needs
to perform. Identifying the requirements, let the user decides the further action to be performed.
For example, any retail company can analyze the sales data to figure out the products that are top-
selling and the products that least sell.
Phase 2: Design Data Model
Once the requirements are identified the user needs to design the logical model according to the
requirements. This logical model helps the user to analyze the relationships that exist within the data
entities.
For example, For any retail company, the data model consists of products, their customers, and the sales
data
Phase 3: Design the Physical Schema
Once the logical model is prepared the next step is to design the physical schema using the data model.
The physical schema describes the structure and the content of the data warehouse.
For example, in any retail company, physical schema consists of sales-related facts, product-
customer relationships, and the sales transactions
Phase 4: Build the Data Warehouse
Once the logical and physical schema is designed, the next step is to build the data warehouse. The
design of a data warehouse depends on the physical and logical schema. After the design of the data
warehouse, the data and the content from the source system are loaded into the data warehouse for
further steps.
For example, for the retail system, designing the data warehouse consists of developing a database that
would store the details of customers, products, and other requirements for the business.
Phase 5: Create the Project Structure (Metadata)
The next step after designing the data warehouse is to create a project structure also known as
metadata. With the help of this created project structure, the mapping of the tables and data in the data
warehouse is easier. Creating the project structure describes the further steps and types that need to
be implemented.
For example, The project structure of the retail company consists of the attributes of the data, the
design, and the working flow of the system. This project structure or metadata gives a brief idea
about the working of the system.
Phase 6: Develop The BI Objects
The next step is to develop the BI objects such as metrics, attributes, dashboards, reports, and facts. This
step consists of developing the reports and dashboards that can be used to analyze the data in the
data warehouse.
For example, the retail company can develop reports and statistics charts that can describe the profit
and loss margins.
Phase 7: Administer and Maintain the Project
The last step is to administer and maintain the project continuously as it undergoes changes. The project
needs to be monitored to maintain the changes, security, and performance of the system.
For example, the retail company needs to monitor the reports and statistics accordingly to increase the
profit of the sales.
The value of Business Intelligence :
Business Intelligence (BI) brings together a variety of tools, technologies, applications, and practices to
analyse your business data. The end result will be decipherable data that can clearly guide future actions for
the business. Decision-makers of the business, including executives, managers and owners can use BI to
their advantage.
Decision-making
The key purpose of any BI implementation is to convert company data into well-structured, analysable insights
or real business intelligence that informs strategic decision-making.
At the heart of intelligent decision-making is having a single, centralised depository that pulls together data from
all your business activities and customer interactions.
Great BI is having access to all your business data in a single unified place with a dashboard that includes data
from different areas such as sales, finance and inventory control to provide a holistic view of the business, its
customers and their interactions with the business.
This means that business decisions are based on facts rather than assumptions or conjecture.
Sales and marketing
BI technology delivers in-depth data to boost sales and support the performance of marketing activities. It
provides sales staff with tools to measure sales activity and identify consumer trends and behaviour through
improved visibility of sales information.
Specialised features also track, and measure marketing campaigns and promotions and this information can
then be used to ensure future marketing initiatives are effective and profitable.
Value driven and Information use :
1. Data sourcing
The first step in the BI process is accessing the data. This stage deals with the storage, management, and
accessing of raw data. Thus, data warehousing becomes an essential aspect of business intelligence.
Sourcing data is of utmost importance as the quality and relevancy of data directly impact the quality of
insights gained and the consequent decision taken by the leadership. Another aspect of data sourcing
deals with identifying and exploring various data resources. It’s crucial for the following reasons-
• Data can be related to each other
• It can be unstructured (in the form of text, images, or other forms of unstructured data)
• Data can have peculiar features (such as different data types etc.)
It is vital for a business intelligence analyst to know what kind of data is available and where and how they
can access it.
2. Data engineering and analysis
After data sourcing, the next logical step is information engineering and analysis. To perform analysis on
the data and to gain even the fundamental insights from the data, a BI analyst needs to have the data in
a structure that is conducive for analysis. This requires data engineering that includes-
• Converting data into a structured (tabular) format
• Removing or imputing missing values
• Capping outliers
• Removing multicollinearity
Once the data is structured and ready, Exploratory Data Analysis (EDA) is performed through which
useful information can be synthesized, such as-
• Summarizing data using descriptive statistics
• Finding associations in data
After EDA, Structured Data Analysis (SDA) is performed, which includes three types of
analysis-
1. Trend Analysis: It’s used for identifying patterns in the data. This includes,
for example, assessing sales based on different geographical regions, the
volume of product sales over a stipulated period, etc.
2. Mathematical Analysis: It’s used for calculating performance and growth
using mathematics. This includes, for example, assessing the margin of sales
and growth in absolute and in percentage.
3. Statistical Analysis: Inferential statistics is used to assess the statistical
significance of the patterns and peculiarities being identified in the data.
Statistics is also used to perform predictions, analytics, and forecasting
using regression and other methods. The statistical coefficients can also be
used to perform prescriptive analytics, identifying reasons for certain
business phenomena. Therefore, the model building can take place at this
stage of Business Intelligence.
3. Situation awareness
The core of business intelligence is to provide concerned individuals in an
organization with knowledge helping in situational awareness. This stage in
Business Intelligence deals with report creation and presentations that provide
the decision-makers with essential and relevant information to help them be
aware of the events in and around the organization. This information can make
them aware of, for example, government policies, upcoming market trends,
market forces, etc.
4. Decision-making
Once the decision-makers know the ‘what and why’ of the events in and around
the business, the next stage is proactive decision-making and its evaluation. The
insights, knowledge, and intelligence gained from analytics enable decision-
makers to make data-driven decisions. This can be, for example, coming up with
strategic decisions such as management change, management of products and
categories, opening or shutting of offices, launching of new products, or can be
operational, such as promotional campaigns, upsell and cross-sell campaigns,
etc.
5. Decision support
This stage deals with supporting the proposed decision by evaluating it.
Evaluation includes identifying the risks, opportunities, benefits, profit,
pitfalls, cost-to-benefit ratio, return on investment, and
estimating the business value of the proposed decisions. All of this helps in
making efficient and effective decision-making.