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Agenda
• Business Analytics (BA): Overview
• Online Analytical Processing (OLAP)
• Reports and Queries
• Multidimensionality
• Advanced Business Analytics
• Data Visualization
• Geographic Information Systems (GIS)
• Real-time Business Intelligence, Automated Decision
Support (ADS), and Competitive Intelligence
• Business Analytics and the Web: Web Intelligence and
Web Analytics
• Usage, Benefits, and Success of Business Analytics
Business Analytics (BA): Overview
• Business analytics (BA) is a broad category of applications and techniques for
gathering, storing, analyzing, and providing access to data to help enterprise users
make better business and strategic decisions.
• BA is also known as analytical processing, BI tools, BI applications, and just BI.
• BI is becoming a major tool for most medium and large corporations. Pizza Hut
knows what kind of pizzas customers order, what kind of coupons they usually use,
and how much customers spend in a given time period.
• Marketing managers can run this information through a BI analysis that forecasts, for
example, the probability of a customer’s next order.
• The company then uses this information to determine marketing strategies to
influence the customer to buy more pizzas without spending more on that marketing
strategy than it has to.
• Example: An analytic application used for a loan application might:
– Calculate a credit-worthiness score
– Automatically accept or deny the loan application
– Select the loan limit
– Select which credit card product (interest rate, payment terms, etc.) to issue to this
application or which other type of loan to approve.
Tools and Techniques of BA
MicroStrategy’s classification of BA tools:
• Enterprise reporting: highly formatted static reports destined for
broad distribution. They are pixel-perfect report formats for
operational reporting and dashboards.
• Cube analysis: provide simple OLAP multidimensional slice-and-
dice analytical capabilities to business managers in a limited-range
environment.
• Ad hoc querying and analysis: power users can query a database
for any answer, slice-and-dice the entire database, and drill down to
the lowest level of transactional information.
• Statistical analysis and data mining: perform predictive analysis or
to discover the cause-and-effect correlation between two metrics.
• Report delivery and alerting: proactively send full reports or alerts to
large user populations (internal and external), based on
subscription, schedules, or threshold events in the database.
Tools and Techniques of BA
SAP’s classification of strategic enterprise
management: operational, managerial, and
strategic. SAP offers three levels of support:
• Operational: SAP ERP mainly supports
transaction processing on the operational level.
• Managerial: middle managers can use SAP R/3
to access all reports, arranged by functional
areas. Managers can make queries and drill
down.
• Strategic: SAP offers products under the title
SAP SEM (Strategic Enterprise Management),
which includes BA.
Tools and Techniques of BA
Executive information and support systems. Many BI activities evolved
from two tools:
• An executive information system (EIS) is a computer based system
that serves the information needs of top executives. It provides rapid
access to timely and relevant information, to aid in monitoring an
organization’s performance by directly accessing management
reports and to improve managerial growth and learning.
• An EIS is very user friendly, is supported by graphics, and provides
the capabilities of exception reporting (i.e., reporting only the results
that deviate from a set standard) and drill down (i.e., investigating
information in increasing details).
• Executive support systems (ESS) is a comprehensive support
system that goes beyond EIS to include analysis support,
communications, office automation, and intelligence support.
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