Business Intelligence (BI)

What is Business Intelligence (BI)?

•  Business Intelligence is a generalized term applied to a broad category of applications and technologies for gathering, storing, analyzing and providing access to data to help enterprise users make better business decisions
• Business Intelligence applications include the activities of decision support systems, query and reporting, online analytical processing (OLAP), statistical analysis, forecasting, and data mining
• An alternative way of describing BI is: the technology required to turn raw data into information to support decision-making within corporations and business processes

BusinessIntelligence Architecture

Business intelligence has become a critical element of information technology. It’s an old term with general or even ambiguous meaning. It has been used synonymously with decision support, analysis, and data warehousing, but today business intelligence has a more specific definition and a better understood application. Taken literally, business intelligence is just that—intelligence or understanding of your business. You get that understanding by analyzing your business operations.

This business intelligence process can deliver significant, bottom-line results. Implementing its technologies and applying its process can help make your business more effective and more efficient, increasing revenue, decreasing costs, and improving your relationships with customers and suppliers.

   Why BI?

• BI technologies help bring decision-makers the data in a form they can quickly digest and apply to their decision making.
• BI turns data into information for managers and executives and in general, people making decisions in a company.
• Companies want to use technology tactically to make their operations more effective and more efficient - Business intelligence can be the catalyst for that efficiency and effectiveness.

By definition, the moment any given business is operating, it begins generating data. Some obvious examples are sales, bookkeeping, production data, warehouse information, transportation and logistics, personnel, etc.In addition there also exists large volumes of data which are important to the business but not directly generated by business operations. Examples are market data, competitive data, tenders and proposal, legal information, raw material prices, etc.

As such, none of the above described information can be used in its raw form by corporate management to make decisions although the information is critical in helping make those business decisions.Therein lies the necessity for Business Intelligence. BI technologies help bring decision-makers the data in a form they can quickly digest and apply to their decision making. BI turns data into information for managers and executives and in general, people making decisions in a company.

     Benefits:

 The benefits of a well-planned BI implementation are going to be closely tied to the business objectives driving the project.

1. Identify trends and anomalies in business operations more quickly, allowing for more accurate and timelier decisions.
2. Deliver actionable insight and information to the right place with less effort .
3. Identify and operate based on a single version of the truth, allowing all analysis to be completed on a core foundation with confidence.

 

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Datawearhousing OLAP

Defination

OLAP (Online Analytical Processing) is the technology behind many Business Intelligence (BI) applications. OLAP is a powerful technology for data discovery, including capabilities for limitless report viewing, complex analytical calculations, and predictive “what if” scenario (budget, forecast) planning.

How is OLAP Technology Used?

OLAP is an acronym for Online Analytical Processing. OLAP performs multidimensional analysis of business data and provides the capability for complex calculations, trend analysis, and sophisticated data modeling. It is the foundation for may kinds of business applications for Business Performance Management, Planning, Budgeting, Forecasting, Financial Reporting, Analysis, Simulation Models, Knowledge Discovery, and Data Warehouse Reporting. OLAP enables end-users to perform ad hoc analysis of data in multiple dimensions, thereby providing the insight and understanding they need for better decision making.

Types of OLAP Servers

We have four types of OLAP servers:

• Relational OLAP (ROLAP)
• Multidimensional OLAP (MOLAP)
• Hybrid OLAP (HOLAP)
• Specialized SQL Servers

Relational OLAP

ROLAP servers are placed between relational back-end server and client front-end tools. To store and manage warehouse data, ROLAP uses relational or extended-relational DBMS.

ROLAP includes the following:

• Implementation of aggregation navigation logic.
• Optimization for each DBMS back end.
• Additional tools and services.

Multidimensional OLAP

MOLAP uses array-based multidimensional storage engines for multidimensional views of data. With multidimensional data stores, the storage utilization may be low if the data set is sparse. Therefore, many MOLAP server use two levels of data storage representation to handle dense and sparse data sets.

Hybrid OLAP (HOLAP)

Hybrid OLAP is a combination of both ROLAP and MOLAP. It offers higher scalability of ROLAP and faster computation of MOLAP. HOLAP servers allows to store the large data volumes of detailed information. The aggregations are stored separately in MOLAP store.

OLAP Operations

Since OLAP servers are based on multidimensional view of data, we will discuss OLAP operations in multidimensional data.

Here is the list of OLAP operations:

• Roll-up
• Drill-down
• Slice and dice
• Pivot (rotate)

Roll-up

Roll-up performs aggregation on a data cube in any of the following ways:

• By climbing up a concept hierarchy for a dimension
• By dimension reduction

The following diagram illustrates how roll-up works. 

·        Roll-up is performed by climbing up a concept hierarchy for the dimension location.

·        Initially the concept hierarchy was "street < city < province < country".

·        On rolling up, the data is aggregated by ascending the location hierarchy from the level of city to the level of country.

·        The data is grouped into cities rather than countries.

·        When roll-up is performed, one or more dimensions from the data cube are removed.

Drill-down

Drill-down is the reverse operation of roll-up. It is performed by either of the following ways:

• By stepping down a concept hierarchy for a dimension
• By introducing a new dimension.

The following diagram illustrates how drill-down works:

·        Drill-down is performed by stepping down a concept hierarchy for the dimension time.

·        Initially the concept hierarchy was "day < month < quarter < year."

·        On drilling down, the time dimension is descended from the level of quarter to the level of month.

·        When drill-down is performed, one or more dimensions from the data cube are added.

·        It navigates the data from less detailed data to highly detailed data.

Slice

The slice operation selects one particular dimension from a given cube and provides a new sub-cube. Consider the following diagram that shows how slice works.

·        Here Slice is performed for the dimension "time" using the criterion time = "Q1".

·        It will form a new sub-cube by selecting one or more dimensions.

Dice

Dice selects two or more dimensions from a given cube and provides a new sub-cube. Consider the following diagram that shows the dice operation.

The dice operation on the cube based on the following selection criteria involves three dimensions.

• (location = "Toronto" or "Vancouver")
• (time = "Q1" or "Q2")
• (item =" Mobile" or "Modem")

Pivot

The pivot operation is also known as rotation. It rotates the data axes in view in order to provide an alternative presentation of data. Consider the following diagram that shows the pivot operation.

In this the item and location axes in 2-D slice are rotated.

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