Scribd
Upload
98 views

Business Intelligence Unit 1

BI U1

Uploaded by

Aditya Pimpale
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
98 views

Business Intelligence Unit 1

BI U1

Uploaded by

Aditya Pimpale
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Business Intelligence Unit 1

 Business intelligence is the business management which refers to applications and


technologies which are used to gather provide access to and information about company
operations.
 Business intelligence may be defined as a set of mathematical models and analysis
methodologies that exploit the available data to generate information and knowledge that is
useful for complex decision-making processes.
 Business intelligence helps users to draw conclusions from data analysis.

Architecture Of Business Intelligence


1. Data Source Layer:
 This is the origin of the data from internal
systems like CRM, ERP, or external sources like
partners and the internet.
2. ETL Layer (Extract, Transform, Load):
 Extract: Identify and retrieve data.
 Transform: Clean, format, and make data
consistent.
 Load: Put transformed data into the data warehouse.
3. Data Warehouse Layer:
 Central repository for historical data from various sources.
4. Data Mining and Analysis Layer:
 Retrieve data from the warehouse.
 Analyze using data mining and analytical tools.
 Extract hidden patterns and trends.
 Tools for querying, reporting, visualizations, and statistical analysis.
5. End User Layer:
 Tools and applications delivering analyzed information.
 Used by analysts, data scientists, executives for data-driven decisions.
Overall, BI helps organizations use data to improve efficiency, identify opportunities, and
make better decisions.

Ethics in BI: -
1. Fairness: Treat everyone equally in data analysis and decision-making.
2. Transparency: Be open about where data comes from and how it's used.
3. Privacy: Keep people's information safe and confidential.
4. Accuracy: Make sure data is right to avoid mistakes.
5. Accountability: Take responsibility for what happens with BI.
6. Integrity: Always be honest and don't manipulate data.
7. Compliance: Follow the rules and laws about data use and privacy.
Data:
1. Definition: Data refers to raw
facts or figures that are
unprocessed and lack context.
2. Example: Sales figures,
customer names.
3. Role in BI: Data serves as the
foundation for business
intelligence, providing the
raw material for analysis and
insights.
Knowledge:
1. Definition: Knowledge is
derived from organizing and interpreting data, adding meaning and understanding.
2. Example: Analyzing sales trends to understand customer preferences.
3. Role in BI: Knowledge transforms raw data into actionable insights, guiding decision-
making and strategic planning.
Information:
1. Definition: Information is the processed data that has context, relevance, and meaning for
decision-making.
2. Example: customer demographics.
3. Role in BI: Information synthesizes knowledge into digestible formats, empowering
stakeholders to make informed decisions and take appropriate actions.

Simon's Decision-Making Process in Business Intelligence:


1. Intelligence Phase:
 Identify the problem or
opportunity.
 Gather relevant data and
information related to the
issue at hand.
2. Design Phase:
 Develop potential solutions or
courses of action based on the
gathered data.
 Evaluate the feasibility and
potential outcomes of each
solution.
3. Choice Phase:
 Select the most suitable solution or decision based on the analysis conducted.
 Consider factors such as risk, resource availability, and organizational goals.

4. Implementation Phase:
 Put the chosen solution into action.
 Monitor and evaluate the results of the implemented decision to ensure effectiveness and
adjust as necessary.

The role of mathematical models in Business Intelligence:

1. Prediction: Forecast future trends using historical data.


2. Optimization: Find the best strategies to maximize efficiency or minimize costs.
3. Pattern Recognition: Identify hidden patterns and correlations within data.
4. Simulation: Anticipate the impact of different scenarios.
5. Decision Support: Provide quantitative insights for informed decision-making.

Benefits of BI: -

1. Better decisions: Make smarter choices based on actual data, not hunches.
2. Save time and money: Find areas to streamline operations and reduce waste.
3. Happier customers: Understand what customers want and give it to them.
4. Beat the competition: Gain insights to stay ahead of the game.
5. Spot trends: BI helps identify patterns and predict future performance, allowing you to
capitalize on opportunities.
6. Improved risk management: By analyzing data, BI can help uncover potential risks and
take steps to mitigate them.

Stages of BI: -

1. Data Collection: This involves gathering relevant data from various sources like databases,
spreadsheets, and external sources.
2. Data Preparation (or Cleaning): The collected data might be messy or inconsistent. This
stage ensures the data is accurate, complete, and formatted for analysis.
3. Data Storage: The cleaned data is then stored in a central location, like a data warehouse,
for easy access and analysis.
4. Data Analysis: Here, data scientists and analysts use various techniques to uncover patterns,
trends, and hidden insights within the data.
5. Data Visualization: Insights are presented visually using tools like charts, graphs, and
dashboards for easier understanding by decision-makers.
6. Decision Making: Armed with clear data and insights, businesses can make informed
decisions to improve performance.

Advantages of DSS: -
1. Increases organisational control.
2. Increases decision makers satisfaction.
3. Improves productivity.
4. DS improves communication and collaboration among decision makers.

Disadvantages of DSS: -

1. A computerised decision-making system may sometimes result in information overload.


2. Overemphasis on decision making.
3. Cost of development.
4. Inaccurate information can lead to bad recommendations by DSS.

DSS: -

1. A decision support system (DSS) is an interactive computer-based tool that supports


decision-making for a specific problem or situation.
2. DSS focuses on semi-structured and unstructured problems, those that are not easily
defined with a set of rules.

WORKING: -

1. Data Gathering: DSS collects


data from various sources, both
internal and external.
2. Data Analysis: It analyzes data
using tools like statistical
analysis and data mining.
3. Information Presentation:
Results are presented in user-
friendly formats like charts or
reports.
4. Decision Support: DSS helps
decision-makers explore options and evaluate outcomes but doesn't make the final decision.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy