ISYS6605
Business Intelligence
Week 1 – Business Intelligence Overview
Learning Outcome
At the end of this semester, the student should be able to:
• Sketch business intelligence as a new force in facing business
competition
Sub Topics
• Definition of Business Intelligence
• Why Business Intelligence
• Business Intelligence as a Competitive Differentiator
• Business Intelligence Competency Center
DEFINITION OF BUSINESS INTELLIGENCE
4 Definition of Business Intelligence
Business intelligence (BI) is an
umbrella term that combines
architectures, tools, databases,
analytical tools, applications, and
methodologies.
Business Intelligence is defined as
getting the right information to the
right people at the right time.
BI can be defined as a set of
mathematical models and analysis
methodologies that systematically
exploit available data to retrieve
information and knowledge that is
useful in supporting complex decisionmaking processes.
The processes, technologies, and tools
needed to turn data into information,
information into knowledge, and
knowledge into plans that drive
profitable business action. Business
intelligence encompasses data
warehousing, business analytic tools,
and content/knowledge management.
BI Major Objective
• To enable interactive access (sometimes in real time) to data, to
enable manipulation of data, and to give business managers and
analysts the ability to conduct appropriate analyses.
Process of BI
• Transformation of :
Data
Information
Decision
Action
Benefits of a business intelligence
system
Traditional desicion
Decision with BI
Resources : Carlo Vercellis (2009)
WHY BUSINESS INTELLIGENCE
Why BI
• Increased profitability
• Decreased costs
• Improved customer relationship management (CRM)
• Decreased risk
BUSINESS INTELLIGENCE AS A COMPETITIVE
DIFFERENTIATOR
Business Intelligence as a
Competitive Differentiator
Business Intelligence is the one true source of
sustainable competitive advantage.
It allows your organization to drive revenues,
manage costs, and realize consistent levels of
profitability
BI vs Gut Feel
BI
Gut Feel
Business Intelligence uncovers
innumerable competitive
advantages by transforming
that raw data into actionable
intelligence and by creating
knowledge to implement
winning strategies and deliver
information that can be
leveraged by your entire
organization.
So many decisions have been made based on
what someone feels versus what the data say.
These decisions cannot be
measured.
They cannot be repeated.
They cannot be easily understood or shared.
Hindsight vs Insight
Many organizations have adopted BI applications, in the
hopes of extracting greater insights from all the data
generated by their operational and transactional systems.
Unfortunately, even after acquiring traditional BI, true
competitive differentiation often remains elusive.
Hindsight query and reporting cannot deliver the predictive
insight and deep understanding that is required to
outperform the pack.
Past trends tend to be poor predictors of future
possibilities.
Organizations need a way to distill predictive insights from a
multitude of interrelated factors, far beyond simple trend
analysis.
Criteria for True Business Intelligence
Breadth. It integrates functions and technologies from across the organization.
Depth. It reaches all who need it, in a way that is relevant to them.
Completeness. It is a comprehensive, end-to-end platform.
Advanced analytics. It delivers predictive insights, not just hindsight.
Data quality. It gives applications one validated, verified version of the facts.
Intelligence storage. It meets the information needs of intelligence applications.
BUSINESS INTELLIGENCE COMPETENCY CENTER (BICC)
Six Challenges in Exploiting Business
Intelligence
Data
challenges
Technology
challenges
Process
challenges
Strategy
challenges
Users
challenges
Cultural
challenges
What Is a BICC?
BICC is a cross-functional team with a permanent,
formal organizational structure.
It has defined tasks, roles, responsibilities, and
processes for supporting and promoting the effective
use of BI across an organization.
It is staffed with employees from the organization
itself, although some roles or functions might be
outsourced.
Five Reasons to Establish a BICC
Preserve and exploit the full value of technology investments.
Integrate and consolidate business and analytical intelligence
processes and initiatives.
Reduce overall risk of implementation projects and project
realization.
Support business users in fully understanding data and acting
properly on analyses.
Ensure that BI knowledge (BI value, concepts, and technology)
is shared throughout the organization.
References
• Ramesh Sharda, Dursun Delen, and Efraim Turban. 2019. Business Intelligence, Analytics, And Data
Science: A Managerial Perspective. Pearson Education Limited KAO Two, KAO Par, Harlow, CM17 9NA,
United Kingdom. ISBN 13: 978-1-292-22054-3
• Carlo Vercellis. 2009. Business intelligence: data mining and optimization for decision. John Wiley &
Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom. ISBN: 9780-470-51139-8.
• Gloria J. Miller, Dagmar Brautigam, Stefanie V. Gerlach. 2006. Business intelligence competency center:
a team approach to maximizing competitive. John Wiley & Sons, Inc. Hoboken, New Jersey. ISBN-13:
978-0-470-04447-6
• David Loshin. 2003. Business Intelligence, The Savvy Manager's Guides, Getting Onboard Emerging IT,
Morgan Kaufmann Publishers, An Imprint of Elsevier, 500 Sansome St., Suite 400, San Francisco, CA
94111. ISBN-13:978-1-55860-916-7
Thank You