Business Intelligence and

Data Warehousing

Dr. Atul Garg

 Data

• Data is the raw building blocks

• Data are raw, individual, and unarguable facts.
• Information, often in the form of facts or figures obtained from
experiments or surveys, used as a basis for making calculations or
drawing conclusions
• Information, for example, numbers, text, images, and sounds, in a
form that is suitable for storage in or processing by a computer
 Information
• Information is the combination of data into a form that can answer an
everyday question.
• Definite knowledge acquired or supplied about something or somebody
• The collected facts and data about a particular subject
• A telephone service that supplies telephone numbers to the public on
request.
• The communication of facts and knowledge
• Computer data that has been organized and presented in a systematic
fashion to clarify the underlying meaning
• A formal accusation of a crime brought by a prosecutor, as opposed to an
indictment brought by a grand jury
 Knowledge
• Familiarity or understanding on a specific topic gained through
experience or study
• Knowledge is used in terms of a persons skills or expertise in a given
area.
• Knowledge typically reflects an empirical.
• General awareness or possession of information, facts, ideas, truths, or
principles
• Clear awareness or explicit information, for example, of a situation or
fact
• All the information, facts, truths, and principles learned throughout time
 Types of Knowledge
• Explicit knowledge is knowledge covering topics that are easy to
systematically document (in writing), and share out at scale: what we
think of as structured information. Explicit knowledge includes things
like FAQs, instructions, raw data and related reports, diagrams, one-
sheets, and strategy slide decks.
• Implicit knowledge is, essentially, learned skills or know-how. It is
gained by taking explicit knowledge and applying it to a specific
situation. Implicit knowledge is what is gained when you learn the best
way to something.
• Tacit knowledge is intangible information that can be difficult to explain
in a straightforward way, such as things that are often “understood”
without necessarily being said, and are often personal or cultural.
 Intelligence
• Intelligence is the combination of information into a form that tells a
story and informs decisions. Examples might include that in the
festival seasons the COVID cases
• Intelligence is decision-support. It’s a tool for making intelligent
predictions about the future—based on solid understanding of the
present—in order to take a course of action that improves outcomes.
may increase.
• Intelligence combines information to form a predictive narrative that
enables better decision-making.
 Wisdom

• The knowledge and experience needed to make sensible decisions

and judgments, or the good sense shown by the decisions and
judgments made
• Accumulated knowledge of life or in a particular sphere of activity
that has been gained through experience
• An opinion that almost everyone seems to share or express
• Ancient teachings or sayings
Interrelationships
 Data Warehousing
• Data warehouse is perfectly named from physical warehouse, it
operates as storage for data that has been extracted from another
source.
• The concept of the data warehouse has existed since the 1980s, when it
was developed to help transition data from merely powering
operations to fueling decision support systems that reveal business
intelligence.
• Many organizations have proprietary data warehouses that store
information on performance metrics, sales quotas, lead generation stats
and a variety of other information.
• A data warehouse is a large collection of business data used to help
an organization make decisions.
 Data Warehousing
• The large amount of data in data warehouses comes from different
places such as internal applications such as marketing, sales,
finance, customers and external partner systems, among others.
• Data warehouses can perform some analytics capabilities: using the
extract, transform, load (ETL) process, data warehouses can
perform the complex queries that transactional databases cannot
handle.
• Once data has entered a warehouse, it cannot be altered. Data
warehouses only perform analysis of historical data.
 Characteristics of Data Warehouse
• Uses large historical data sets
• Allows both planned and ad hoc queries
• Controls data load
• Make an organization's information easily accessible
• Retrieves large volumes of data
• Manage user schema like tables, indexes, etc.
• Generate reports
• Backs up data
 Advantages of Data Warehouse
• Saves times
• Enhances data quality and consistency
• Generates a high Return on Investment (ROI)
• Provides competitive advantage
• Improves the decision-making process
• Enables organizations to forecast with confidence
• Streamlines the flow of information
• Increasing data quality
• Increase searching probability of more information
 Need & evolution of Data Warehouse
• Evolution of Web
• During the 1990s major cultural and technological changes were taking place.
The internet was surging in popularity.
• Competition had increased due to new free trade agreements, computerization,
globalization, and networking.
• During this time, the use of application systems exploded.
• By the year 2000, many businesses discovered with the expansion of
databases and application systems, their systems had been badly integrated
and that their data was inconsistent.
• Data Warehouses were developed by businesses to consolidate the data they
were taking from a variety of databases, and to help support their strategic
decision-making efforts
• Use of NoSQL
 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.
• Business intelligence is defined by Gartner as “an umbrella term that includes
the applications, infrastructure and tools, and best practices that enable access to and
analysis of information to improve and optimize decisions and performance.”
• BI has a direct impact on organization’s strategic, tactical and operational business
decisions. BI supports fact-based decision making using historical data rather than
assumptions and gut feeling.
• BI is a category of intelligence systems that gather proprietary data then organize, analyze
and visualize it to help users draw business insights. It can blend data from a variety of
sources, discover data trends or patterns, and suggest best practices for visualizations and
next actions.
 Importance of BI

• Measurement: creating Key Performance Indicators (KPI) based on historic

data.
• Identify and set benchmarks for varied processes.
• Identify market trends and spot business problems that need to be addressed.
• 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)
 Implementation of BI

• Raw Data from corporate databases is extracted. The data could be

spread across multiple systems heterogeneous systems.
• The data is cleaned and transformed into the data warehouse. The
table can be linked and data cubes are formed.
• Using BI system can handle quires, request, ad-hoc reports or
conduct any other analysis.
 Example of BI

Reference: https://www.guru99.com/business-intelligence-definition-example.html
 Other Examples
• 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.
• 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.
• E-commerce: AMAZON, Flipkart etc.
 Pros and Cons of BI
Pros Cons

Boost productivity Cost

Improve visibility Complexity

Fix Accountability Limited Use

Bird’s eye view Time Consuming Implementation

Streamlines business processes Small Scale Business

Allows for easy analytics Illiteracy

 Business Intelligence & Data Warehousing
Data warehousing and Business Intelligence often go hand in hand, because the
data made available in the data warehouses are central to the Business
Intelligence tools’ use.
• BI tools like Tableau, Sisense, Chartio, Looker etc, used to retrieve or analyse
data from the data warehouses for purposes like query, reporting, analytics, and
data mining.
• In any enterprise, Business Intelligence plays a central role in the smooth and
cost-effective functioning of it. Thus, BI is helpful in operational efficiency
which includes reporting, risk management, product profitability, costing,
logistics etc.
• BI also, helps in customer interaction which includes, sales analysis, sales
forecasting, segmentation, campaign planning, customer profitability etc.
 References
• https://www.guru99.com/business-intelligence-definition-
example.html#:~:text=Step%201)%20Raw%20Data%20from,across%20mu
ltiple%20systems%20heterogeneous%20systems.&text=The%20table%20c
an%20be%20linked,or%20conduct%20any%20other%20analysis.
• https://datawarehouseinfo.com/data-warehouse/benefits-of-a-data-
warehouse/
• https://www.youtube.com/watch?v=7qcdcBfxuH0
• https://www.passionned.com/nine-reasons-to-build-a-data-warehouse/
• https://www.c-sharpcorner.com/blogs/goals-of-a-data-warehouse1
• https://www.talend.com/resources/what-is-data-warehouse/
• https://www.diyotta.com/data-warehouse-definition-history-and-evolution
Thanks