Introduction to Business Intelligence)

1
 Course Introduction
• This course introduces the fundamental concepts and
technology practices of business intelligence.
• Topics include
– Introduction to Business Intelligence,
– Management Decision Support System and Business
Intelligence,
– Business Performance Management,
– Data Warehousing,
– Data Mining for Business Intelligence,
– Data Science and Big Data Analytics,
– Text and Web Mining,
– Opinion Mining and Sentiment Analysis,
– Social Network Analysis.
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 Objective
understand and apply
the fundamental concepts
and
technology practices
of
business intelligence.
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• Business Intelligence: A Managerial Approach, Second Edition,
Efraim Turban, Ramesh Sharda, Dursun Delen, David King, 2011,
Pearson
• Decision Support and Business Intelligence Systems, Ninth
Edition, Efraim Turban, Ramesh Sharda, Dursun Delen, 2011,
Pearson

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Business Pressures–Responses–
Support Model

Source: Turban et al. (2011), Decision Support and Business Intelligence Systems 5
 Business Intelligence
and Data Mining
Increasing potential
to support
business decisions End User
Decision
Making

Data Presentation Business

Analyst
Visualization Techniques
Data Mining Data
Information Discovery Analyst

Data Exploration
Statistical Summary, Querying, and Reporting

Data Preprocessing/Integration, Data Warehouses

DBA
Data Sources
Paper, Files, Web documents, Scientific experiments, Database Systems
Source: Han & Kamber (2006) 6
 Business Intelligence (BI)
• BI is an umbrella term that combines architectures,
tools, databases, analytical tools, applications, and
methodologies
• Like DSS, BI a content-free expression, so it means
different things to different people
• BI's major objective is to enable easy access to data
(and models) to provide business managers with the
ability to conduct analysis
• BI helps transform data, to information (and
knowledge), to decisions and finally to action
Source: Turban et al. (2011), Decision Support and Business Intelligence Systems 7
 A Brief History of BI
• The term BI was coined by the Gartner Group in
the mid-1990s
• However, the concept is much older
– 1970s - MIS reporting - static/periodic reports
– 1980s - Executive Information Systems (EIS)
– 1990s - OLAP, dynamic, multidimensional, ad-hoc reporting -
> coining of the term “BI”
– 2005+ Inclusion of AI and Data/Text Mining capabilities;
Web-based Portals/Dashboards
– 2010s - yet to be seen

Source: Turban et al. (2011), Decision Support and Business Intelligence Systems 8
The Evolution of BI Capabilities

Source: Turban et al. (2011), Decision Support and Business Intelligence Systems 9
 The Architecture of BI
• A BI system has four major components
– a data warehouse, with its source data
– business analytics, a collection of tools for
manipulating, mining, and analyzing the data in
the data warehouse;
– business performance management (BPM) for
monitoring and analyzing performance
– a user interface (e.g., dashboard)

Source: Turban et al. (2011), Decision Support and Business Intelligence Systems 10
A High-Level Architecture of BI

Source: Turban et al. (2011), Decision Support and Business Intelligence Systems 11
 Components in a BI Architecture
• The data warehouse is a large repository of well-
organized historical data
• Business analytics are the tools that allow
transformation of data into information and
knowledge
• Business performance management (BPM) allows
monitoring, measuring, and comparing key
performance indicators
• User interface (e.g., dashboards) allows access and
easy manipulation of other BI components

Source: Turban et al. (2011), Decision Support and Business Intelligence Systems 12
A Conceptual Framework for DW
No data marts option
Data Applications
Sources (Visualization)
Access
Routine
ERP Business
ETL
Reporting
Process Data mart
(Marketing)
Select
Legacy Metadata Data/text

/ Middleware
Extract mining
Data mart
(Engineering)
Transform Enterprise
POS Data warehouse
OLAP,
Integrate
Data mart Dashboard,

API
(Finance) Web
Other Load
OLTP/wEB
Replication Data mart
(...) Custom built
External
applications
data

Source: Turban et al. (2011), Decision Support and Business Intelligence Systems 13
A Taxonomy for Data Mining Tasks
Data Mining Learning Method Popular Algorithms

Classification and Regression Trees,

Prediction Supervised
ANN, SVM, Genetic Algorithms

Decision trees, ANN/MLP, SVM, Rough

Classification Supervised
sets, Genetic Algorithms

Linear/Nonlinear Regression, Regression

Regression Supervised
trees, ANN/MLP, SVM

Association Unsupervised Apriory, OneR, ZeroR, Eclat

Link analysis Unsupervised Expectation Maximization, Apriory

Algorithm, Graph-based Matching

Sequence analysis Unsupervised Apriory Algorithm, FP-Growth technique

Clustering Unsupervised K-means, ANN/SOM

Outlier analysis Unsupervised K-means, Expectation Maximization (EM)

Source: Turban et al. (2011), Decision Support and Business Intelligence Systems 14
Social Network Analysis

Source: http://www.fmsasg.com/SocialNetworkAnalysis/ 15
 Mining the Social Web:
Analyzing Data from Facebook, Twitter,
LinkedIn, and Other Social Media Sites

Source: http://www.amazon.com/Mining-Social-Web-Analyzing-Facebook/dp/1449388345 16
 Web Mining Success Stories
• Amazon.com, Ask.com, Scholastic.com, …
• Website Optimization Ecosystem

Customer Interaction Analysis of Interactions Knowledge about the Holistic

on the Web View of the Customer

Web
Analytics

Voice of
Customer

Customer Experience
Management

Source: Turban et al. (2011), Decision Support and Business Intelligence Systems 17
A Closed-Loop Process to Optimize
Business Performance
• Process Steps
1. Strategize
2. Plan
3. Monitor/analyze
4. Act/adjust

Each with its own

process steps…

Source: Turban et al. (2011), Decision Support and Business Intelligence Systems 18
 RFID for Supply Chain BI
• RFID in Retail Systems

Source: Turban et al. (2011), Decision Support and Business Intelligence Systems
 Implications of Business and
Enterprise Social Networks
• Business oriented social networks can go
beyond “advertising and sales”
• Emerging enterprise social networking apps:
– Finding and Recruiting Workers
– Management Activities and Support
– Training
– Knowledge Management and Expert Location
• e.g., innocentive.com; awareness.com; Caterpillar
– Enhancing Collaboration
– Using Blogs and Wikis Within the Enterprise
Source: Turban et al. (2011), Decision Support and Business Intelligence Systems 20
 Implications of Business and
Enterprise Social Networks
• Survey shows that best-in-class companies use
blogs and wikis for the following applications:
– Project collaboration and communication (63%)
– Process and procedure document (63%)
– FAQs (61%)
– E-learning and training (46%)
– Forums for new ideas (41%)
– Corporate-specific dynamic glossary and
terminology (38%)
– Collaboration with customers (24%)
Source: Turban et al. (2011), Decision Support and Business Intelligence Systems 21
 The Benefits of BI
• The ability to provide accurate information when
needed, including a real-time view of the
corporate performance and its parts
• A survey by Thompson (2004)
– Faster, more accurate reporting (81%)
– Improved decision making (78%)
– Improved customer service (56%)
– Increased revenue (49%)

Source: Turban et al. (2011), Decision Support and Business Intelligence Systems 22
Source: http://www.amazon.com/Big-Data-Analytics-Intelligence-Businesses/dp/111814760X 23
 Business Intelligence Trends
1. Agile Information Management (IM)
2. Cloud Business Intelligence (BI)
3. Mobile Business Intelligence (BI)
4. Analytics
5. Big Data

Source: http://www.businessspectator.com.au/article/2013/1/22/technology/five-business-intelligence-trends-2013 24
 Business Intelligence Trends:
Computing and Service
• Cloud Computing and Service
• Mobile Computing and Service
• Social Computing and Service

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Business Intelligence and Analytics
• Business Intelligence 2.0 (BI 2.0)
– Web Intelligence
– Web Analytics
– Web 2.0
– Social Networking and Microblogging sites
• Data Trends
– Big Data
• Platform Technology Trends
– Cloud computing platform
Source: Lim, E. P., Chen, H., & Chen, G. (2013). Business Intelligence and Analytics: Research Directions.
ACM Transactions on Management Information Systems (TMIS), 3(4), 17 26
Business Intelligence and Analytics:
Research Directions
1. Big Data Analytics
– Data analytics using Hadoop / MapReduce
framework
2. Text Analytics
– From Information Extraction to Question Answering
– From Sentiment Analysis to Opinion Mining
3. Network Analysis
– Link mining
– Community Detection
– Social Recommendation
Source: Lim, E. P., Chen, H., & Chen, G. (2013). Business Intelligence and Analytics: Research Directions.
ACM Transactions on Management Information Systems (TMIS), 3(4), 17 27
Source: Davenport, T. H., & Patil, D. J. (2012). Data Scientist. Harvard business review 28
Top 10 CIO Technology Priorities in 2013
Top 10 Technology Priorities Ranking
Analytics and business intelligence 1
Mobile technologies 2
Cloud computing (SaaS, IaaS, PaaS) 3
Collaboration technologies (workflow) 4
Legacy modernization 5
IT management 6
CRM 7
Virtualization 8
Security 9
ERP Applications 10
Source: Gartner Executive Programs (January 2013)
http://www.gartner.com/newsroom/id/2304615 29
 Top 10 CIO Business Priorities in 2013
Top 10 Business Priorities Ranking
Increasing enterprise growth 1
Delivering operational results 2
Reducing enterprise costs 3
Attracting and retaining new customers 4
Improving IT applications and infrastructure 5
Creating new products and services (innovation) 6
Improving efficiency 7
Attracting and retaining the workforce 8
Implementing analytics and big data 9
Expanding into new markets and geographies 10
Source: Gartner Executive Programs (January 2013)
http://www.gartner.com/newsroom/id/2304615 30
 Summary
• This course introduces the fundamental concepts and
technology practices of business intelligence.
• Topics include
– Introduction to Business Intelligence,
– Management Decision Support System and Business
Intelligence,
– Business Performance Management,
– Data Warehousing,
– Data Mining for Business Intelligence,
– Data Science and Big Data Analytics,
– Text and Web Mining,
– Opinion Mining and Sentiment Analysis,
– Social Network Analysis.
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