BUSINESSS INTELLIGENCE

Business intelligence (BI) is a technology-driven process for analyzing data

and delivering actionable information that helps executives, managers and workers
make informed business decisions.

Business intelligence is used to make the analytics results available to business

users for operational decision-making and strategic planning.

The ultimate goal of BI is to drive better business decisions that enable

organizations to increase revenue, improve operational efficiency and gain competitive
advantages over business rivals.

To achieve that goal, BI incorporates a combination of analytics, data

management and reporting tools, plus various methodologies for managing and
analyzing data.

BUSINESS INTELLIGENCE PROCESS

DATA MINING: Using databases, statistics and machine learning to uncover trends in
large datasets.

REPORTING: Sharing data analysis to stakeholders so they can draw conclusions and
make decisions.

PERFORMANCE METRICS AND BENCHMARKING: Comparing current performance

data to historical data to track performance against goals, typically using customized
dashboards.

DESCRIPTIVE ANALYTICS: Using preliminary data analysis to find out what

happened.

QUERYING: Asking the data specific questions, BI pulling the answers from the

datasets.

STATISTICAL ANALYSIS: Taking the results from descriptive analytics and further
exploring the data using statistics such as how this trend happened and why.
DATA VISUALIZATION: Turning data analysis into visual representations such as
charts, graphs, and histograms to more easily consume data.

VISUAL ANALYSIS: Exploring data through visual storytelling to communicate insights

on the fly and stay in the flow of analysis.

DATA PREPARATION: Compiling multiple data sources, identifying the dimensions

and measurements, preparing it for data analysis.

IMPORTANCE OF BUSINESS INTELLIGENCE

 Can help companies make better decisions by showing present and historical
data within their business context.
 Provide performance and competitor benchmarks to make the organization run
smoother and more efficiently
 Easily spot market trends to increase sales or revenue.
 Can help with anything from compliance to hiring efforts.

WAYS ON HOW BUSINESS INTELLIGENCE MAKE SMARTER, DATA-DRIVEN

DECISIONS

 Identify ways to increase profit

 Analyze customer behavior
 Compare data with competitors
 Track performance
 Optimize operations
 Predict success
 Spot market trends
 Discover issues or problems

HOW BUSINESS INTELLIGENCE WORKS

 LESSON 1: BUSINESS INTELLIGENCE, ANALYTICS AND DATA SCIENCE

BUSINESS INTELLIGENCE (BI) is a technology-driven process for analyzing

data and delivering actionable information that helps executives, managers and workers
make informed business decisions.

Business intelligence is used to make the analytics results available to business

users for operational decision-making and strategic planning.

The concept of business intelligence is brought up by Garner group since 1996. It

is defined as the application of a set of methodologies and technologies to improve
enterprise operation effectiveness, support management decision to achieve
competitive advantages.

Business intelligence is the method of gathering and analyzing business data to

gain insights and make profitable business decisions. It’s also caught all word for
business intelligence apps as well as other tools, applications and best practices for
gathering intelligent business insights, analyzing data and improving overall business
performance.

BUSINESS INTELLIGENCE GOAL

The goal of business intelligence is to gather and evaluate data in order for a
forward-thinking company make better business decisions. Business intelligence
provides executives with the data they need to make informed strategic, tactical and
operational decisions and this is what a business need to stay afloat in a very
challenging market world.

TRENDS RELATED TO BUSINESS INTELLIGENCE

One of the most significant parameters for success in today’s dynamic business
environment is the ability to leverage data and technology in real time. It doesn’t matter
what industry you’re in, what matters is having easy access to information.
Organizations can make more productive analytical and impactful decisions when they
have access to intelligent insights.
  Increased investment in AI technology
 Big data
 The increasing importance of data governance
 Increase in self-service business intelligence software and tools
 Data interpretation through story telling
 Collaborative business intelligence
 Embedded business intelligence
 Cloud analytics

BUSINESS INTELLIGENCE TOOLS

The basic characteristic for business intelligence tools is that its ability to collect
data from heterogeneous source to process advanced analytical methods and the
ability to support multi-users demands.

1. SAP Business Objects

2. Datapine
3. MicroStrategy
4. SAS Business Intelligence
5. Yellowfin BI
6. QlikSense

CONCEPT OF BUSINESS INTELLIGENCE

Garner Group has been promoting the concept of Business Intelligence (BI)
since 1996. It’s characterized as the use of a collection of methodologies and
technologies to enhance business activity effectiveness and support
management/decision making in order to gain competitive advantages.

METHODOLOGIES OF BUSINESS INTELLIGENCE

A company must have a clear understanding of market dynamics, customer

needs and customer opinions to make a strategic business decision and achieve a
competitive advantage.
 To make strategic business decisions and gain competitive advantage, and
organization must have a clear idea of market trends, customer needs, and consumer
opinions.

There are a variety of online business intelligence tools using which you can
access numerous ways to collect business insights, here are some of the widely
recommended methodologies widely used to gather business intelligence.

STEP 1: Data Collection

First step in obtaining business intelligence. There are a variety of data collection
techniques that can provide accurate data for statistical analysis and to assist an
organization in making data-driven decisions

 Surveys
Web/Online Surveys - the most accurate, most effective and commonly
used way of reaching a wider audience for data collection which is by
conducting an online survey.
In-Person Surveys - are surveys conducted by face-to-face interview. It
has become the most powerful way of gathering the most reliable data for
years since this method of gathering business intelligence relies on direct
communication, observing the respondent’s body language, attitude and
reactions is crucial.
Mail Surveys - this is the time-honored way of gathering knowledge from a
wide group of people. Factors such as the time consuming, cost error, pro-
ness and low response rate contributed to the methods low adoption.
Telephone Surveys - this approach has a few disadvantages such as the
respondent’s ability or even forming a friendly equation with the
respondents.
 Questionnaires
Is a collection of questions that can be both qualitative and quantitative in
nature and are used for research purposes. A questionnaire may be in a
form of a survey or not but a survey must always have a questionnaire.
 Polls
 It varies from survey that they normally only ask one question. Poll have a
very high response rate since they are simple to complete and take very
little time.
 Forms
Type of survey in and of themselves but unlike the surveys which are used
to gather abstract data such as views, perceptions, beliefs, and so on.
Forms are commonly used to collect detailed information from a
respondent in each field such as age, income, gender, and so on.

STEP 2: Analysis

This is the step is where all the data comes under a single platform. A business
intelligence software will enable you to collect as well as analyze data with advanced
analytical tools embedded in the same software. Analyzing the data collected through
various methods helps an organization to understand their customer’s opinions and find
out areas needing improvement.

You may use business intelligence software to perform advanced data analysis
such as conjoint analysis, mass diff analysis, trend analysis, text and sentiment analysis
and many others. Now, by using this software, you will get a clear picture of where your
company stands with your consumers at any given time or day.

STEP 3: Reporting and Presentation

The next step is to understand what the metrics mean. This step is the most
important, as the wrong interpretation of the data can send your organization down a
cliff. Conversion into visual infographics can sometimes make it easier for a person to
understand. Such understanding will enable the organization to find answers to most
pressing business, operational and marketing questions.

DATA ANALYTICS
 Data analytics is a discipline concerned with extracting knowledge from data,
including data processing, compilation, organizing, and storage, as well as the methods
and techniques employed.

Data analytics is a field of a study that deals with extracting information from data
including data processing, collection, organization and storage as well as the methods
and techniques used.

The main goal of data analytics is to identify patterns and solve problems by
using statistical analysis and technologies on data.

FOUR FUNDAMENTAL TYPES OF DATA ANALYTICS

1. Descriptive Analytics - describes how many things or how things have changed
over time.
2. Diagnostic Analytics - focuses on the explanation for an events occurrence it
necessitates hypothesizing and utilizes a large and diverse data set.
3. Predictive Analytics - focuses on incidents that are likely to happen in the near
future. It is used for forecasting.
4. Prescriptive Analytics - indicates that there is a strategy in place or you have
plans that are already in place.

DATA ANALYTICS METHODS AND TECHNIQUES

1. Regression Analysis - is a collection of statistical procedures for estimating

their relationships between variable/s in order to determine how changes in one
or more variables can affect the others. Example; how might social media
spending affects sales.
2. Factor Analysis - is a statistical approach for reducing a large data set to a
smaller. More manageable one is a factor analysis; this has the added
advantages of often revealing secret patterns. In corporate world, it is often used
to investigate topics such as consumer loyalty.
3. Cohort/Coherent Analysis - used to divide data set into groups with similar
characteristics known as cohorts. This is a population technique for determining
consumer segments.
 4. Cluster Analysis - used to discover patterns in data. For example, insurance
companies may use it to figure out why certain areas are linked to a certain
insurance claim.
5. Time Series Analysis - can be used to identify trends and cycles over time such
as weekly sales figures. It is a common tool for economic and sales forecasting.
6. Sentiment Analysis - used to understand the things expressed in the data
research in the data. Researchers use techniques such as natural language
processing, text analysis, computational linguistics and so on.

CAREERS IN DATA ANALYTICS

Here are some of the most popular job titles related to data analytics and the
average salary for each position, according to data from PayScale (as of 2021).

 Analysis Manager
 Business Analyst
 Business Analyst, IT
 Business Intelligence Analyst
 Data Analyst
 Market Research Analyst
 Operations Research Analyst
 Quantitative Analyst
 Senior Business Analyst
 Statistician

DATA SCIENCE
 Data science is a multidisciplinary approach to extracting actionable insights from
the large and ever-increasing volumes of data collected and created by today’s
organizations.

Data science encompasses preparing data for analysis and processing,

performing advanced data analysis, and presenting the results to reveal patterns and
enable stakeholders to draw informed conclusions.

DATA SCIENTIST

Data scientists investigate which questions need to be answered and where the
relevant data can be found. They have analytical and business acumen, as well as the
ability to mine, clean, and present data.

Skills needed: programming skills (SAS, R, Python), statistical and mathematical

skills, storytelling and data visualization, Hadoop, SQL, machine learning.

DATA SCIENCE LIFE CYCLE

1. Capture - gathering of raw structured and unstructured data for all relevant
sources via about any method from manual entry and web scrapping to capturing
data from system and devices in real time.
2. Prepare and Maintain - this involves transforming raw data into a standard
format that can be used for analytics, machine learning or deep learning models.
3. Preprocess or Process - assesses data suitability for use with predictive
analytics, machine learning or deep learning algorithms. Data scientists look for
biases, trends, ranges and distributions of values in the data.
4. Analyze - this is where data scientist uses statistical analysis, predictive
analytics, regression, machine learning, deep learning algorithms and other
techniques to derive information from the prepared data.
5. Communicate - the findings are delivered as reports, maps and other data
visualization to help decision makers understand the insights and their effect on
the company
 DATA SCIENCE LIFE CYCLE PROCESSES

USES OF
DATA SCIENCE

 Anomaly detection (fraud, disease, crime, etc.)

 Automation and decision-making (background checks, credit worthiness, etc.)
 Classifications (in an email server, this could mean classifying emails as
“important” or “junk”)
 Forecasting (sales, revenue and customer retention)
 Pattern detection (weather patterns, financial market patterns, etc.)
 Recognition (facial, voice, text, etc.)
 Recommendations (based on learned preferences, recommendation engines can
refer you to movies, restaurants and books you may like)
 LESSON 2: NATURE OF DATA, STATISTICAL MODELING AND VISUALIZATION

WHAT IS ANALYTICS?

 Analytics is the scientific process of discovering and communicating the

meaningful patterns which can be found in data.
 It is concerned with turning raw data into insight for making better decisions.
 Analytics relies on the application of statistics, computer programming, and
operations research in order to quantify and gain insight to the meanings of data.
 Is it especially useful in areas which record a lot of data or information.

Analytics provides us with useful knowledge that would otherwise be concealed

within vast amount of data. In today’s data-driven world, it’s something that any leader,
manager or just about anyone will benefit from. Analytics is the forge that creates
information which has long been regarded as a powerful weapon. Analytics is
revolutionizing not just the business world but also science, sports, healthcare and just
about every other area where large volumes of data are collected.

We can use analytics to uncover hidden trends in the world around us. This has the
potential to alter our perspective of the universe generally for the better. We may
believe that a process is already performing at its best but data may prove us wrong.
So, analytics can help us better our world.

AREAS WHERE ANALYTICS CAN BE APPLIED

1. Web Analytics
2. Fraud Analysis
3. Risk Analysis
4. Advertisement and Marketing
5. Enterprise Decision Management
6. Market Optimization
7. Market Modeling
 DESCRIPTIVE, PREDICTIVE AND PRESCRIPTIVE ANALYTICS

STAGES IN DATA ANALYSIS

1. Descriptive Analytics (What happened?)

2. Diagnostic Analytics (Why did it happened?)
3. Predictive Analytics (What could happen in the future?)
4. Prescriptive Analytics (How should we respond to those potential future events?)

There are different styles, types and stages of data processing that have emerged
as a result of the data revolution. Now, gaining the right information which provides
insights give business the ability to gain a competitive advantage. This analytics are the
secret of the company success using big data. The primary aim of big data analytics is
to assist companies in making informed business decision

DESCRIPTIVE ANALYTICS

 Descriptive analytics or reporting analytics is a preliminary stage of data

processing that creates a summary of historical data to yield useful information
and possibly prepare the data for further analysis.
 Descriptive analytics is sometimes said to provide information about what
happened.
 Descriptive analytics defined as providing information about what occurred.
 Diagnostic analytics entails a more in-depth examination of data in order to
determine the cost of events and habits.
 Descriptive analytics does not seek to go beyond the surface data and analysis.
Further research is beyond the scope of descriptive analytics.
 Descriptive analytics observation are not used to make interference or inferences
or predictions.
HOW DOES DESCRIPTIVE ANALYTICS WORKS?

To discover historical data which employ two main methods:

1. Data Aggregation and Data Mining

 the process of gathering and arranging data to create manageable data
sets is known as data aggregation.
 data mining, where in patterns, trends in meanings are identified
2. Collect and Organize Data
3. Patterns, Trends, and Meaning are identified

WHAT INFORMATION IS DERIVED FROM DESCRIPTIVE ANALYTICS?

Reports

 Inventory
 Workflow
 Sales
 Revenue

Social Analytics

 Average number of replies per post

 Number of page views
 Average response time
 Attitudes

PREDICTIVE ANALYTICS

 Predictive analytics is used to identify future probabilities and trends, is said

provide information about what might happen in the future.
 Predictive analytics can be used for variety of use cases. For example, an
insurance company is likely to take into account potential driving safety variables,
such as age, gender, location, type of vehicle and driving record, when pricing
and issuing auto insurance policies.
 Predictive analytics requires a high level of expertise with statistical methods and
the ability to build predictive data models. As a result, it’s typically in the domain
 of data scientists, statisticians and other skilled data analysts. They’re supported
by data engineers, who help to gather relevant data and prepare it for analysis,
and by software developers and business analysts, who help with data
visualization, dashboards and reports.

HOW DOES PREDICTIVE ANALYTICS WORKS?

1. Data mining, Statistical modelling and Machine learning algorithms

2. Attempts to forecast possible future outcomes
3. Take existing data and attempt to fill in the missing data with the best possible
guesses.

WHAT INFORMATION IS DERIVED FROM PREDICTIVE ANALYTICS?

1. Tell a business what could happen in the future

2. Forecast customer behavior and purchasing patterns to identifying sales trends.
3. Forecast supply chain, operations and inventory demands.

PRESCRIPTIVE ANALYTICS

 Prescriptive analytics is applied to try to identify the best outcome to events,

given the parameters, and suggest decision options to best take advantage of a
future opportunity or mitigate a future risk.
 This methodology is the third, final and most advanced stage in the business
analysis process and the one that calls businesses to action, helping executives,
managers and operational employees make the best possible decisions based
on the data available to them.

HOW DOES PRESCRIPTIVE ANALYTICS WORKS?

1. Prescriptive analytics takes what has been learned through descriptive and
predictive analysis and goes a step further by recommending the best possible
courses of action for a business.
2. Rules, statistics and machine learning algorithms are applied to available data,
including both internal data and external data.

WHAT INFORMATION IS DERIVED FROM PRESCRIPTIVE ANALYTICS?

 1. Make recommendations in regard to which decisions will best take advantage of
future opportunities or mitigate future risks.
2. Makes it possible to consider the possible outcomes for each before any
decisions are made.
3. Can have a real impact on business strategy and decision making to improve
things such as production, customer experience and business growth.

ADVANTAGES AND DISADVANTAGES

Descriptive Analytics

 Businesses can relatively quickly and easily report on performance and gain
insights that can be used to make improvements.
 It doesn’t look beyond the surface of the data.

Predictive Analytics

 Predictive analysis is based on probabilities, it can never be completely accurate.

 Can act as vital tool to forecast possible future events and inform effective
business strategy for the future.
 Can improve areas of business including efficiency, customer service, and
detection and prevention, and risk reduction.

Prescriptive Analytics

 Provides invaluable insights in order to make the best possible, data-based

decisions to optimize business performance.
 Requires large amounts of data to produce useful results, which isn’t always
available.
 Cannot always account for all external variables.
 The use of machine learning dramatically reduces the possibility of human error

ASSESSMENT EXAM 1

Data Preparation - compiling multiple data sources, identifying the dimensions and
measurements, preparing it for data analysis.
Querying - asking the data specific questions. BI pulling the answers from the datasets.

Data Mining - using databases, statistics and machine learning to uncover trends in
large datasets.

Business Intelligence - is a technology-driven process for analyzing data and

delivering actionable information that helps executives, managers and workers make
informed business decisions.

Statistical Analysis -taking the results from descriptive analytics and further exploring
the data using statistics such a s how this trend happened and why.

Reporting - sharing data analysis to stakeholders so they can draw conclusions and
make decisions.

Visual Analysis - exploring data through visual storytelling to communicate insights on

the fly and stay in the flow of analysis.

Performance metrics and benchmarking - comparing current performance data to

historical data to track performance against goals, typically using customized
dashboards.

False - can help companies make better decisions by showing future and historical data
within their business context.

True - provide performance and competitor benchmarks to make the organization run
smoother and more efficiently.

True - easily spot market trends to increase sales or profit.

True - can help with anything from compliance to hiring efforts.

ASSESSMENT EXAM 2

Predictive Analytics - is a form of advanced analytics that uses both new and historical
data to forecast behavior, behaviors, and trends.
Prescriptive Analytics - is used to determine the best outcome events given the
parameters and to propose decision strategies for taking advantage of potential
opportunities or mitigating future risks.

Analytics - provides us with useful knowledge that would otherwise be concealed within
vast amount of data.

Data Aggregation - the process of gathering and arranging data to create manageable
data sets.

Data Mining & Data Aggregation - 2 methods used in descriptive analytics to

discover historical data.

Data Mining - identifies patterns, trends, and context before being presented in a
comprehensible manner.

Descriptive Analytics - defined as providing information about what occurred.