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Business Intelligence Overview and Applications

BI (Business Intelligence) converts raw data into meaningful information to drive business decisions. BI tools perform data analysis to create reports, dashboards, and visualizations that provide intelligence about business performance. The document then provides examples of how various companies use BI for hotel management, banking, supply chain management, automotive sales and service, social media moderation, and connecting smart vehicles to gather operational data. It outlines the three layers of a BI framework - the business layer which defines requirements and value, the administration/operations layer which manages the program, and the implementation layer which develops databases, data integration, analytics, architecture, and applications.
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0% found this document useful (0 votes)
95 views10 pages

Business Intelligence Overview and Applications

BI (Business Intelligence) converts raw data into meaningful information to drive business decisions. BI tools perform data analysis to create reports, dashboards, and visualizations that provide intelligence about business performance. The document then provides examples of how various companies use BI for hotel management, banking, supply chain management, automotive sales and service, social media moderation, and connecting smart vehicles to gather operational data. It outlines the three layers of a BI framework - the business layer which defines requirements and value, the administration/operations layer which manages the program, and the implementation layer which develops databases, data integration, analytics, architecture, and applications.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

BA MODULE - 1

BI Definition
BI (Business Intelligence) is a set of processes, architectures, and technologies
that convert raw data into meaningful information that drives profitable
business actions.
BI tools perform data analysis and create reports, summaries, dashboards,
maps, graphs, and charts to provide users with detailed intelligence about the
nature of the business.

BI Examples
 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.
 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.
 A company that wants to better manage its supply chain needs BI
capabilities to determine where delays are happening and where
variabilities exist within the shipping process.
 Another example is India’s biggest automobile company – Maruti Suzuki,
which is leveraging Qlik to analyse and provide business insights and
improve operational efficiency across the enterprise. With Qlik’s
solution, Maruti Suzuki has been successful in streamlining its sales and
distribution management.
 Tesla the innovative automotive company uses BI to connect their cars
wirelessly to their corporate offices to collect data for analysis. This
approach links the carmaker to the customer and anticipates and corrects
problems such as component damage, traffic or road hazard data. The
result is a high customer satisfaction score and better-informed decisions
on future upgrades and products
 Twitter the social media company deploys BI with AI to fight inappropriate
and potentially dangerous content on its platform. Algorithms rather than
human users identify 95% of suspended terrorism-related accounts.
 TESLA: BUSINESS INTELLIGENCE AS BRAND DEFENSE

How it uses business intelligence:


Tesla’s remarkably autonomous cars are all Internet of Things devices that are
digitally linked to Tesla HQ. The setup allows Tesla to push software updates and
new digital features to old cars, free of charge. It also lets the company collect
business intelligence on how Tesla owners drive their vehicles. That data comes
in handy, and not just for patching glitches in real time.
BI Component Framework

Divided into 3 Parts:


1. BUSINESS LAYER
2. ADMINISTRATION & OPERATION LAYER
3. IMPLEMENTATION LAYER

1). Business Requirements: it is a product of 3 steps of a business process


• Business Drivers: The impulses that initiate the need to act. E.g.,
Changing workforce, changing labour laws, changing technology.
• Business Goals: Targets to be achieved in response to Business
Drivers. E.g., Increased productivity, Improved market shares,
Improved Profit Margins, Improved Customer Satisfaction.
• Business Strategies: Planned course of action that will help achieve
the set goals. E.g., Outsourcing, Global Delivery model,
Partnerships, Competitive Pricing.
2). Business Value: When a strategy is implemented against certain business
goals, then certain costs (monetary, time, effort, information produced by data
integration and analysis, application of knowledge from past experience, etc.)
are involved. However, the final output of the process should create such value
for the business whose ratio to the costs involved should be a feasible ratio.
• Return on Investment (ROI): Return on Investment.

• Return on Asset (ROA): Return on Asset.

• Total Cost of Ownership (TCO): E.g., Cost from Purchase, Operations,


Maintenance to the time it leaves the possession of the owner.

• Total Value of Ownership (TVO): Assets = Liabilities + Owners’ Equity.


3). Program Management: ensures that people, projects & priorities work in
manner for seamless integration & smooth functioning of entire program. It
attends – Business Priorities, Mission & Goals, Strategies & Risks, Multiple
Projects, Dependencies, Cost & Value, Business Rules, Infrastructure.
4). Development:
The process of development consists of
• Database/Data-Warehouse Development (consisting of ETL, data profiling,
data cleansing and database tools),
• Data Integration System Development (consists of data integration tools and
data quality tools)
• Business Analytics Development (about processes and various technologies
used)
1). BI Architecture:
2). BI & DW Operations:

3). Data Resource Administrations:


It involves Data Governance and Metadata Management.
4). Business Applications:
1). Data Warehousing
2). Information Services

Common questions

Powered by AI

The key components of Business Intelligence architecture include the Business Layer, Administration & Operation Layer, and Implementation Layer . The Business Layer involves business requirements such as goals and strategies that align with drivers like market changes . The Administration Layer attends to program management, ensuring alignment with business priorities and seamless integration across projects . The Implementation Layer involves development processes such as database and data-warehouse development, data integration systems, and business analytics development . These components work together to collect, cleanse, integrate, and analyze data, ultimately producing insights that guide strategic business actions.

BI tools provide significant advantages over traditional IT staff-led reporting by empowering department personnel with direct access to richer data sources, thereby reducing dependence on IT departments for analytical report generation . This democratization of data enables quicker, data-driven decision-making and fosters a more agile business environment . Additionally, BI tools can offer real-time updates and interactive dashboards that allow users to explore data insights dynamically, leading to more informed and timely business decisions compared to periodic written reports.

Twitter's integration of Business Intelligence tools with AI significantly enhances its content management operations by enabling the automated identification and removal of inappropriate content . AI algorithms, empowered by BI data analysis, identify and suspend accounts associated with terrorism-related activities, achieving a remarkable 95% accuracy in proactive identification before human intervention . This capability not only streamlines operational efficiency by reducing manual review burdens but also aligns with Twitter's operational goals of maintaining a safe and user-friendly platform, thereby enhancing user trust and platform integrity.

Business Intelligence plays a pivotal role in supply chain management by identifying bottlenecks and variabilities in the shipping processes . It allows companies to visualize and analyze complex data sets to understand delays and inefficiencies, enhancing management's ability to streamline operations . By these means, BI fosters informed decision-making, helping businesses to optimize inventory levels, reduce transit times, and improve supplier and distributor coordination. This increased visibility leads to enhanced operational efficiency, cost reduction, and improved service levels, illustrating BI's essential role in modern supply chain processes.

Within a Business Intelligence framework, Business Drivers, Goals, and Strategies are interconnected elements that collectively influence organizational decisions. Business Drivers, such as changes in technology or market conditions, create a need to act . This necessity is addressed by defining Business Goals, which set specific targets for improvement, such as increased productivity or market share . Strategies are then developed as the planned actions to achieve these goals, encompassing tactics like outsourcing or competitive pricing . The BI framework utilizes these interconnections to guide data analysis and reporting, ensuring that decisions align with strategic objectives and adapt to environmental changes.

Business Intelligence differentiates itself by providing platforms that transform raw data into actionable business insights. For instance, a hotel owner uses BI to analyze trends and thereby decide on room rate adjustments . Similarly, banks empower branch managers with BI tools to identify profitable customers, enhancing customer relationship management and decision-making efficiency . Additionally, Maruti Suzuki leverages BI to improve its sales and distribution processes, exemplifying improved operational efficiency and competitive edge . Tesla's use of BI illustrates how it connects vehicles to headquarters to preemptively address issues, thereby enhancing customer satisfaction and product reliability . These examples underscore BI's critical role in facilitating strategic decision-making and operational improvements across different sectors.

Tesla utilizes Business Intelligence by digitally linking its vehicles to corporate headquarters, creating an Internet of Things (IoT) ecosystem that enables the company to collect and analyze data effectively . This setup allows Tesla to offer over-the-air software updates and introduce new digital features, thereby maintaining a modern product fleet without the need for physical retrofitting . Additionally, the data collected from vehicles provides insights into driving habits and potential issues, permitting preemptive solutions that enhance the user experience and satisfaction . Consequently, this responsiveness helps Tesla sustain its brand reputation and competitive edge in the automotive industry.

Business Analytics Development within Business Intelligence complements Database/Data-Warehouse Development and Data Integration System Development . It involves leveraging various processes and technologies to analyze data, which coordinates closely with the data warehousing infrastructure where data is processed through ETL, profiling, and cleansing . Similarly, data integration systems incorporate these outputs using integration and quality tools that ensure data consistency and reliability across the organization . Together, these components enhance an organization's data capabilities by ensuring accurate, comprehensive insights are generated to assist strategic decision-making.

"Total Value of Ownership" (TVO) and "Return on Investment" (ROI) measure the success of Business Intelligence initiatives but differ in focus and scope. ROI evaluates the monetary gain relative to the investment cost, providing a percentage that signifies the efficiency of the investment . In contrast, TVO includes broader considerations such as liabilities and equity in addition to immediate financial gains, capturing the comprehensive benefit of assets throughout their lifecycle . This holistic measure considers long-term value creation and strategic alignment, whereas ROI primarily assesses financial performance over a specific period.

Maruti Suzuki's implementation of Qlik for Business Intelligence has significantly enhanced its operational efficiency by providing comprehensive business insights and improving decision-making across sales and distribution . This integration has enabled the company to streamline its operations, reducing bottlenecks and inefficiencies in its distribution channels. Additionally, by leveraging BI tools, Maruti Suzuki can better analyze market dynamics and customer behavior, allowing for more informed strategic positioning and responsiveness to market changes, thus strengthening its competitive position within the industry .

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