Course

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Learning Module

Fundamentals of
Business Analytics
Course Packet 04

BUSINESS INTELLIGENCE
(BI)

Knowledge Area Code : BSBA

Course Code : BABA0113
Learning Module Code : LM01- BABA0113
Course Packet Code : LM01- BABA0113

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Course Packet 04

Business Intelligence (BI)

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Introduction
These topics will provide an integrated understanding of Business Intelligence (BI) is
about getting the right information, to the right decision makers, at the right time.

Objectives
At the end of the lesson the students would be able to
1. Learn the value of BI is easy and fast access of data and information at all levels.
2. Understand Data analysis using google spreadsheet.

Learning Management System

Google Classroom BSBA 4 Fundamentals of Prescriptive Analytics
Class Code:
Facebook Account:

Duration
 Topic 04: Business Intelligence (BI) = 4 hours Lecture 6 hours laboratory
(10 hours self-directed learning with practical exercises & assessment)
Delivery Mode
Synchronous

Assessment with Rubrics

An essay type of assessment will be given

Requirement with Rubrics

No other requirement will be provided aside from the given Activities, Assignment and post
assessment. Numerical rating will be used.

Readings
Refer to your Google classroom for the copy of Instructional Materials – Course Packet 04 and
readings applicable to this topic.

Introduction
The term Business Intelligence (BI) refers to technologies, applications and
practices for the collection, integration, analysis, and presentation of business
information. The purpose of Business Intelligence is to support better business
decision making.
Business Intelligence helps business leaders use data in ways that are
meaningful and powerful. Utilizing the tools derived from BI components,
organizations can better leverage data for competitive advantages. Used properly,
the data can drive business decisions that can proactively respond to market
trends and other external factors. While businesses today collect and store copious

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amounts of raw data, few are harnessing the power of that data to drive business
insights and transformations. The only true constant in business is that it’s always
changing. Business Intelligence provides methodologies and tools for today’s
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business leaders to change effectively and lead their organizations with fact-based
decisions and a more holistic view of growth potential.

Pre-Assessment

1. What are the BI question that designed to answer in Sales and

Marketing, Operational and Financial of the business?

2. What is the Business Intelligence Vision.

Lesson Proper
Lesson 04: Business Intelligence
Topic Outline:
1. Business Intelligence
1.1 Key Elements of Successful Business Intelligence
1.2 BI: A General Process
1.3 BI Questions that designed to answer in operational and financial
1.4 Business Intelligence Users
1.5 Business Intelligence Vision
1.6 Stages of Business Intelligence
1.7 BI Tools
1.7.1 Analyze data in Google Spreadsheet
1.7.1.1 Statistical formula

 Review
Essentially, Business Intelligence systems are data-driven Decision
Support Systems (DSS). Business Intelligence is sometimes used interchangeably
with briefing books, report and query tools and executive information systems.
People quickly recognized that computer systems could support
additional decision-making activities. A decision support system (DSS) is an
organized collection of people, procedures, software, databases, and devices that
support problem-specific decision making. The focus of a DSS is on making
effective decisions. DSS helps a manager “do the right thing.” A DSS can include
a collection of models used to support a decision maker or user (model
base), a collection of facts and information to assist in decision making (database),

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and systems and procedures (user interface or dialogue manager) that help
decision makers and other users interact with the DSS
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 Activity.
Let us start on how much you remembered
What are the types of Business Information System? Explain each types.

 Processing of the Activity.

Review the Course Packet 3.
 Brief Lesson

1. Business Intelligence

Business intelligence (BI) is a set of theories, methodologies, processes,

architectures, and technologies that transform raw data into meaningful and
useful information for business purposes. BI can handle large amounts of
information to help identify and develop new opportunities. Making use of new
opportunities and implementing an effective strategy can provide a competitive
market advantage and long-term stability.
Business Intelligence (BI) is about getting the right information, to the
right decision makers, at the right time.
BI is an enterprise-wide platform that supports reporting, analysis and
decision making that leads to fact-based decision making “single version of the
truth”. The act of using historical data to gain new information and allows
effective business decisions to be made.

Business Intelligence Done Right it turns data into information,

information into knowledge, knowledge into decisions and decision into profits.

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Techniques include:
multidimensional analyses
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mathematical projection(statistics)
ad-hoc queries (ad-hoc- particular purpose) Key Points:
canned' reporting
Dashboards In this part, you may
provide the key points of
the topics being presented
1.1 Key Elements of Successful Business Intelligence in this particular Course
Packet.
1.1.1 Leadership
Active, committed leadership from the top is a vitally important The key points may be
element. Repeated studies have shown that a lack of commitment at the bulleted like this:
top is a major reason BI projects fail.
 Key point 01
This means more than passive approval. Top leadership has to  Key point 02
be actively committed to the BI initiative. Also, it not only sets strategy  Key point 03
and defines goals, but it also serves to sparkplug the initiative.

1.1.2. Strategy
Strategy is another important factor. You have to have a clear Definition of Terms:
vision of what you’re trying to accomplish and how you intend to get
You may provide
there. Further, this vision has to be aligned with your business goals. definition of terms to
The fundamental question your strategy has to answer is: “How facilitate better
can we use BI to best support our business goals.” This implies that you understanding of the
have clearly thought out goals for the business. A clear vision of what concepts being presented.
you’re trying to accomplish is vital to setting strategy.
You may adopt this
As much as possible, strategy focuses on the higher-level format:
questions, many of them “what” questions rather than “how” questions.
Strategy is a high-level exercise designed to squeeze as much value out Term. Its definition,
of BI as possible, by closely aligning the use of BI with the business mostly technical.
overall goals. Term. Its definition,
mostly technical.
Strategy is usually developed in the beginning of a BI effort and
Term. Its definition,
remains fairly constant through the life of the effort. It is generally best mostly technical.
developed by top managers in conjunction with line managers. Term. Its definition,
mostly technical.
1.1.3. People
Dedicated people are also central to making BI succeed.
This includes not just the people who use BI, but also the Hazard Alerts:
supporting players. Quality staff becomes more important as BI works to
wring value out of the operation. This may be in a form of
Training is an important part of having good people. The most notice, caution, or
talented employees aren’t much good if they don’t understand their roles warning.
and how the system is supposed to work.
Include appropriate
hazard alert where and
1.1.4. Process when needed.
It’s important to integrate BI into the regular business processes.
BI isn’t much good if you don’t use it, and one of the common problems This should appear
with BI effort is the BI tool simply isn’t used enough. before the conduct of an
activity.
BI should be part of every applicable, whether in the form of

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reports showing the state of the business or as a hands-on tool to extract
new and unique insights from the data.
This isn’t as easy as it should be because employees often don’t
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use BI on a day to day basis. The cure for this is partially a matter of
training to make sure the employees are comfortable with BI and
partially a matter of the quality of the people, especially how accepting
they are to change.

1.1.5. Technology
This one comes far down the list for a reason. While technology
is an important enabler for BI, it is not the dominant factor. A great many
companies have gotten into trouble by treating BI as a technology project
only.
Even the best people need to be backed up by the best
technology. The best technology for your business is the one that best
supports your business effort. It should be powerful enough to answer
the questions you are asking, and easy to use in order to encourage ad
hoc queries. As much as possible, BI technology should be adapted to
self-service so line employees can get their answers without needing help
from the IT department.

6. Organizational Dynamics
Finally, the organizational dynamics have to be in place to make
BI central to your business’ efforts. This means change in your business
processes and the organization has to accept change. This is another place
where top level support is vital.
Ideally, you want to create a business culture that embraces
change and understands and values what BI can do for the organization.
This takes constant effort from the top to encourage and support
organizational change.

Taken together these elements make for a successful BI effort. They aren’t the only
things BI needs to succeed, for example enough resources and training for your
people, but these are the main ones.

1.2 BI: A General Process

The general process of business intelligence is as follows: Gathering data and

organizing it through reporting. Turning it into meaningful information through
analysis. Making actionable decisions aimed at fulfilling a strategic goal.

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1.3 BI Questions that designed to answer

Asking very specific questions that lead to actionable insights is a great best
practice to follow for effective business intelligence. You want your insights to be
as nitty gritty as possible, so that your BI questions can translate into actions which
have a tangible effect on your KPIs. (Key performance indicators)

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A BI solution, with the right data and features, should be able to take operational
data and enable users to answer specific questions such as:
Sales and marketing
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Which customers should I target?
What has caused the change in my pipeline?
Which are my most profitable campaigns per region?
Did store sales spike when we advertised in the local paper or launched
an email campaign?
What is the most profitable source of sales leads and how has that changed
over time?

Operational
Which vendors are best at delivering on time and on budget? – How many
additional personnel do we need to add per store during the holidays?
Which order processing processes are most inefficient?
Financial
What is the fully loaded cost of new products?
What is the expected annual profit/loss based on current marketing and
sales forecasts?
How are forecasts trending against the annual plan?
What are the current trends in cash flow, accounts payable and accounts
receivable and how do they compare with plan?
Overall business performance
What are the most important risk factors impacting the company’s ability
to meet annual profit goals?
Should we expand internationally and, if so, which geographic areas
should we first target?

1.4 Business Intelligence Vision

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BI is focused on creating operational efficiency through access to real time
data enabling individuals to most effectively perform their job functions.
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Embedded analytics is the integration of analytic content and capabilities
within business process applications. It provides relevant information and
analytical tools designed for the task at hand so users can work smarter and more
efficiently in the applications they use every day.

Examples of Business Intelligence Report Scenario

Hotel franchise uses BI analytical applications to compile statistics on
average occupancy and average room rate to determine revenue generated per
room. It also gathers statistics on market share and data from customer surveys
from each hotel to determine its competitive position in various markets. Such
trends can be analyzed year by year, month by month and day by day, giving the
corporation a picture of how each individual hotel is faring.
Bank bridges a legacy database with departmental databases, giving branch
managers and other users access to BI applications to determine who the most
profitable customers are or which customers they should try to cross-sell new
products to. The use of these tools frees information technology staff from the task
of generating analytical reports for the departments and it gives department
personnel autonomous access to a richer data source.

1.5 Business Intelligence Users

4 Types of Business Intelligence User

1. The Data Analyst

The data analyst, as the name suggests, lives and breathes data. A
statistician by nature, they will drill deep down into data, looking for fresh
insights that will be used to underscore business strategy. The role includes
documenting all your business data, identifying patterns and creating reports
and dashboards that will support the decision-making process.

2. The Executive
The CEO, of course, is at the helm of the business, driving the
company’s success by improving operational analytics efficiency and
constantly looking for ways to reduce costs.
Business intelligence gives an organizational overview that allows the
CEO to spot trends across the entire structure of the business – insights that
can support: Business growth, Innovation and Operational efficiency

3. The Business User

Business intelligence users can come from across the organization. We
often talk about two types of business users, the casual business intelligence
user and the power user. The difference is that a power user has the capability
of working with complex data sets, while the casual user will make use of
dashboards to analyze predefined sets of data.
Generally, the business user is often a manager, who is looking for ways
to help a department operate more efficiently and more effectively. This type
of business user is often untrained in using BI tools but can pick up the basics

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of reporting and can use business intelligence successfully to report on
business activities. Often, they’ll undergo further training and become fully Key Points:
equipped to perform more in-depth analysis.
The main focus of OLTP
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system is to record the
4. The IT Team
current Update, Insertion
IT is another key player in the BI process. The IT user still plays a central and Deletion while
role – maintaining the infrastructure and giving departments the tools that transaction. OLTP
allow them to fulfill their own data requests – however, the role has become administers day to day
more rounded. transaction of an
These days, IT will cooperate much more closely with departments and organization.
the business. It’s their job to ensure that business users are getting the most
OLAP database stores
from data analytics, and they’re also a key part of data governance and historical data that has
security. They’ll also bridge the gap between IT and business, helping increase been inputted by OLTP. It
BI adoption across the board. allows a user to view
different summaries of
multi-dimensional data.
1.6 The 5 Stages of Business Intelligence
Using OLAP, you can
extract information from a
Stage 1. The Data: defining which data will be loaded into the system and large database and
analyzed. Description: analyze it for decision
Where all information is stored making.
Technology dependent
Definition of Terms:
(RDMS Example)
MSSQL, MYSQL, Oracle, Red Brick, DB2 MS SQL Server is a
Often an OLAP type data source relational database
Many rows of often summarized data management system
Utilize database queries to retrieve data from the source. (RDBMS) developed by
(RDMS Example) Microsoft.
SQL – MSSQL and MYSQL
MySQL Database
PL/SQL – Oracle Service is a fully managed
OLTP database service to
Online Transaction processing deploy cloud-native
Typically, not your reporting database. applications using the
world's most popular open
Processes transactions fast for application
source database.
Example
Retail POS system A database query is a
Web Site request for data from a
Online Transaction Processing has two key benefits: database. Usually the
Simplicity request is to retrieve data;
however, data can also be
efficiency
manipulated using
OLAP queries.
Online Analytical Processing
Used for reporting A software system used to
May form base of data warehouse or BI tools maintain relational
Not used for transaction processing. databases is a relational
database management
Databases configured for OLAP use a multidimensional data
system (RDBMS)
model, allowing for complex analytical and ad-hoc queries
with a rapid execution time

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Difference between OLTP and OLAP
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Stage 2. The ETL (Extract, Transform, and Load) Engine: extracts data from
multiple sources, transforms it into a format satisfying the operational and
analytical requirements of the business, and loads it to a target destination, such
as a database or data warehouse..
This can be a complex step involving modifications and
calculations on the data itself.
If this step doesn’t work properly, the BI solution simply cannot
be effective.
To provide a one-stop solution, many ETL tools offer data cleansing capabilities
along with the data transformation functionality to address complex data
management scenarios.
The screenshot below illustrates a scenario in which data is cleansed before it is
written into an Excel destination.

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Stage 3. Data Warehousing:

Connects electronic data from different operational systems so
that the data can be queried and analyzed over time for business
decision making.
A data warehouse is an analytically oriented, integrated, time-
variant, and nonvolatile collection of data that supports decision
making processes
Large databases that aggregate data collected from multiple
sources

A data warehouse is a data store for implementation of decision-making activities.

It stores historical data which is used by enterprises for making strategies in their
business processes.

Stage 4. Analytic Engine:

Analyzes multidimensional data sets found in a data warehouse to
identify trends, outliers, and patterns.

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Data Mining
It is the process of extracting patterns from data. Data mining is
becoming an increasingly important tool to transform this data
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into information. It is commonly used in a wide range of profiling
practices, such as marketing, surveillance, fraud detection and
scientific discovery.
Data mining can be used to uncover patterns in data but is often
carried out only on samples of data. The mining process will be
ineffective if the samples are not a good representation of the
larger body of data.
Data mining cannot discover patterns that may be present in the
larger body of data if those patterns are not present in the sample
being "mined".

R programming language is one that allows statistical computing that is used

widely by the data miners and statisticians for data analysis

Stage 5. Presentation Layer:

The dashboards, reports and alerts that present findings from the analysis.
Typically, Technology Agnostic
Technology agnostic is a term that we use in the business
that simply means, we are unbiased towards the use of different
technology tools to solve different problems.
The presentation layer is for the user. It does not care
How?
When?
Where?
Why?
the user accesses the Information just that it is available.

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Interactive Dashboards:
A dashboard is a set of high-level reports on key metrics, typically
for managers.
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There may be multiple reports on a single dashboard, much the
same way that a car’s dashboard has multiple gauges and
displays on it.
With a dashboard, users can gain an at-a-glance understanding of
key trends and metrics. Dashboards can be customizable to work
for anyone in an organization, from a sales rep or frontline
operations manager to a middle manager or senior executive.
An “interactive” dashboard allows users to take those dashboard
reports and filter information to more deeply analyze trends and
results, or to “drill down” into deeper and more detailed analysis
of the data.
That is, by clicking on the particular reports or results, they can
explore more detailed information to find root causes of results.
Customizable Reports:
It can present high-level findings as well as enable a user to drill
down to find specific details. Most BI systems either come with
report templates and/or provide the capability to create and
customize reports.
Alerts:
notifying users to changes selected as key to meeting user goals.
Alerts can be set to warn users on an imminent event, changes to
data, or that new data needs to be entered into the system.

Dashboard

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Business Intelligence Framework
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1.7 BI Tools

Statistical Functions in Goggle Sheet

Google Sheet and MS Excel is an excellent tool for learning and executing
statistical functions.
Basic Statistical Functions in Google Sheet

1. Count Function
We use the count function when we need to count the number of
cells containing a number. Remember ONLY NUMBERS! Let’s see the
function:

COUNT(value1, [value2], …)

2. Counta Function
While the count function only counts the numeric values, the COUNTA
function counts all the cells in a range that are not empty. The function is
useful for counting cells containing any type of information, including error
values and empty text.

COUNTA(value1, [value2], …)

3. Countblank
The COUNTBLANK function counts the number of empty cells in a range
of cells. Cells with formulas that return empty text are also counted here but
cells with zero values are not counted. This is a great function for summarizing
empty cells while analyzing any data.

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COUNTBLANK(range)
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4. Countifs Function
Countifs are one of the most used statistical functions in Excel. The
COUNTIFS function applies one or more conditions to the cells in the given
range and returns only those cells that fulfill all of the conditions.

COUNTIFS(criteria_range1, criteria1, [criteria_range2, criteria2]…)

Note: Every new range must have the same number of rows and columns
as the criteria_range1 argument. The ranges do not have to be adjacent to each
other.

5. Average Function
The most common function we usually use in our daily lives is the average
(or mean). The AVERAGE function simply returns the arithmetic mean of all
the cells in a given range:

AVERAGE(number1, [number2], …)

But there’s one simple drawback to using averages – they are prone to
outliers.

6. Median Function
The problem of outliers can be solved by using another function for the
central tendency – median. The median function returns the middle value of
the given range of cells. The syntax is quite simple:

MEDIAN(number1, [number2], …)

8. Standard Deviation Function

Standard Deviation is one of the ways to quantify dispersion. It is a
measure of how widely values are dispersed from the average value.

Here, we will be using the STDEV.P function which is used to calculate

standard deviation based on the entire population given as arguments:

STDEV.P(number1,[number2],…)

Note: STDEV.P function assumes that its arguments are the entire
population

9. Correlation Function
The CORREL() function is my personal favorite. It provides really
powerful insights that are not obvious to the naked eye. The CORREL
function returns the correlation coefficient of two cell ranges. But what is
that? It basically tells us how strong the relationship is between the two
variables.

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Note: It does not portray any cause and effect relationship.

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CORREL(array1, array2)

The range of correlation value is between -1 and 1.

Understanding the Data and the Problem Statement

We will be solving a few key questions about our dummy sports equipment and
apparel company . These are the columns we have:
Equipment
Number of items sold
Cost of each item
Discount %
Revenue

we will be answering these questions:

There are 11 products on discount.

The total number of items sold by the store is 13.

There are only 2 items not on discount.

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The questions seemed complex, but it was really easy to find the answer in Google
Sheet. Only 1 product i.e., sneakers, cost more than 2000 and sold at a discount
rate greater than 20%.

The average comes out to be ~ 365.2. We will be doing similar calculations for cost
as well.

We see that the median comes out to be ~ 320 which is pretty close to the average
value. It means there is not much fluctuation in our data. Let’s see if this is the case
for the cost of goods:

This discount value is 10%.

As expected, the standard deviation of the quantity sold is less, meaning that the
dispersion is less whereas the standard deviation for the cost of products is high.

Well, the correlation comes out to be ~0.8 which is pretty high. It seems these are
positively related – meaning more the discount, more the quantity sold.

Statistics is one of the most important tools in the kit of an analyst and you can
achieve a lot of your statistical goals simply using Google Sheet.

 Enhancement Activity.
Refer to Activity Sheet No. 04.

Generalization.
You must write a personal synthesis of the topic/lesson, or a
reflection to process what you have learned from the lesson.

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Application.
Refer to your Assessment Sheet 04
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Course Packet Discussion Forum
To be provided in Google class or during scheduled online class.

Post-Assessment
To evaluate your level of mastery in achieving the learning outcomes, validate
the concepts learned and provide more opportunities to deepen your learning.
You have to take an assessment test/quiz for the topic which will be in Google
form and shall be available only for a considerable period of time. The link shall
be posted in the LMS/Google classroom. You have to get 60% out of the total
number of items to pass. Good luck!

 References.

Books

Drew Bentley (2017), Business Intelligence and Analytics

Zapier Inc. (2016), The Ultimate Guide to Google Sheets

Online Resources
1. What is Business Intelligence (BI)? (n.d). Retrieved from
https://olap.com/learn-bi-olap/olap-bi-definitions/business-
intelligence/
2. Key-Elements-Of-Successful-Business-Intelligence (n.d.). Retrieved from
https://www.toolbox.com/tech/erp/blogs/6-key-elements-of-
successful-business-intelligence-012214/

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Activity Sheet
FUNDAMENTALS OF BUSINESS ANALYTICS - Course Packet 4
Activity Sheet
Business Intelligence
NAME:__________________________SECTION:_______________
INTENDED FOR WEEK 1

Download the Varsity Sports Attendance in our google classroom then follow the instruction.

Problem:

1. Entry this dataset in new google sheet, start at A1. Filename is Act3_Packet_4

Question Formula Value

How many Apartment Sold?

How many properties are

sold by the agent?

What is the number of

properties sold without an
agent?

How many Apartment sold

by agent Jenny?

What is the average number

of property sold?

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What is the median of the
number of products sold?
Activity Sheet
What is the most frequent
discount percentage?

What is the standard

deviation of the number of
products sold?

Is there any relationship

between the number of
products sold and the
discount percentage?

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Assessment
FUNDAMENTALS OF BUSINESS ANALYTICS - Course Packet 4
Assessment
BUSINESS INTELLIGENCE
NAME:__________________________SECTION:_______________
INTENDED FOR WEEK 1
IDENTIFICATION
________1. It returns the correlation coefficient of two cell ranges.Predictive analytics
provide you with key metrics about your business and serve as a basis for
which to dive deeper.
________2. It refers to technologies, applications and practices for the collection,
integration, analysis, and presentation of business information.
________3. They will drill deep down into data, looking for fresh insights that will be
used to underscore business strategy.
________4. A user that make use of dashboards to analyze predefined sets of data.
________5. If this step doesn’t work properly, the BI solution simply cannot be effective.

True or False Write true if the statement is true; if it is false underlined the word that make
the statement false and write the correct answer.
________1. Technology agnostic is a term that we use in the business that simply means,
we are biased towards the use of different technology tools to solve different
problems.
________2. To provide a one-stop solution, many ETL tools offer data cleansing
capabilities along with the data processing functionality to address complex
data management scenarios.
________3. MSSQL Database Service is a fully managed database service to deploy
cloud-native applications using the world's most popular open source
database.
________4. MY SQL Server is a relational database management system (RDBMS)
developed by Microsoft.
________5. A database query is a request for data from a database. Usually the request is
to recover data; however, data can also be manipulated using queries.

ESSAY:

Give and explain briefly the key elements of successful business intelligence.

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Assignment
FUNDAMENTALS OF BUSINESS ANALYTICS - Course Packet 4
Assignment
Business Intelligence
NAME:__________________________SECTION:_______________
INTENDED FOR WEEK 1

Internet Research:

Give 5 Different business intelligence tools used in the industry today. Give the features of
each business intelligence tools you give.

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Learner’s Feedback Form

Learner’s Feedback Form

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Course Packet : Code : _________ Title : __________________________________

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Learning Module: Fundamentals of Business Analytics 71

 Course
Course LM01-BABA
Packet
Course
Packet LM01-BMGT
04
05 0113
Packet

04 412

Learning Module

Fundamentals of
Business Analytics
Course Packet 05

Business Analytics (BA)

Knowledge Area Code : BSBA

Course Code : BABA0113
Learning Module Code : LM01- BABA0113
Course Packet Code : LM01- BABA0113

Learning Module: Purposive Communication 3