BI definition and how it adds value to business
Business intelligence is a set of theories, methodologies, processes, architectures and technologies that transform row data into meaningful information for business processes. The most important functions of BI are reporting, online analytical processing, analytics, data mining, process mining, complex event processing, business performance management, benchmarking, text mining, predictive analytics and prescriptive analytics.
BI can be applied in the following business processes, in order to add business value:
* Measurement - create hierarchy of performance metrics in order to inform managers about the progress toward the goals ...view middle of the document...
Below are explained shortly the basic components of BI.
OLAP: provides multidimensional, summarized views of business data. It is used for reporting, analysis, planning and modeling with the purpose of optimizing business. OLAP tools are combined with data warehouses, data marts, DSS, EIS, data mining etc.
Advanced analytics: refers to data mining, forecasting etc. It is based on statistical analysis techniques to provide certain measures.
Corporate performance management: may include portals, scorecards and dashboards. Several pieces of information are placed in one document or view in order to provide a complete view of a specific product, client etc…
Real time BI: allows real time distribution of data through email, messaging systems etc.
Data warehouse and data marts: data warehouse is the most important component of business intelligence. It stores physically the company data by allowing integration, cleansing, aggregation, and query tasks. It contains live data and retains minimal history. Data mart is a collection of subject areas organized for decision support based on the needs of a given department. Every department has its own data mart, since they make different interpretations of the same data.
Implementations of BI
Implementation of business intelligence can be done with a variety of approaches. Some of them are:
Non-industry specific analytical reporting tools: This includes traditional business intelligence vendors such as Cognos, Hyperion, SAS etc.
Analytic and Data Visualization Tools: This category is represented by vendors such as Salient, Tableau etc. They have powerful desktop development and deployment environment, and can publish web interfaces and dashboards. Moreover they can have data visualization and exploration.
ERP Vendor BI Solutions: This category consists of leading providers of administrative systems for higher education such as SunGard Higher Education, Campus Management, Datatel, and Oracle/PeopleSoft. The solutions are often based on a partnership with a toolset provider or an analytical application provider and include a data warehouse.
Custom-Developed BI/Analytics Solutions: This category consists of consulting and systems integration firms, such as Accenture and Sapient, which work with your team to build a custom solution.
Industry Specific Packaged Analytic Applications: This category consists of vendors such as eThority and iStrategy Solutions who have developed solutions that include interfaces to many of the leading higher education administrative systems. The solutions are targeted to accelerate business intelligence implementations and adoption.
Process-Oriented Consultants: This category consists of consultants who specialize in one or more of the following processes: strategic planning, change management, process management, project management, RFP development, and vendor selection.
In order to implement BI, a BI system is needed. A BI system is defined as a system that...