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Introduction to Business Intelligent Systems

Introduction to Business Intelligent Systems. Week 1 Dr. Jocelyn San Pedro School of Information Management & Systems Monash University. Staff- Dr. Jocelyn San Pedro. T1.28 Level 1, Building T, Caulfield Campus Jocelyn.sanpedro@sims.monash.edu.au www.sims.monash.edu.au/staff/jsanpedro

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Introduction to Business Intelligent Systems

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  1. Introduction to Business Intelligent Systems Week 1 Dr. Jocelyn San PedroSchool of Information Management & Systems Monash University IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004

  2. Staff- Dr. Jocelyn San Pedro • T1.28 Level 1, Building T, Caulfield Campus • Jocelyn.sanpedro@sims.monash.edu.au • www.sims.monash.edu.au/staff/jsanpedro • Email correspondence: • Subject: IMS3001 • Email enquiries anytime, but expect replies by Thursday PM • Consultation Hours: 2-3 PM Tu,Th,Fri (by appointment) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 2

  3. The Unit • 2-Hour lecture per week • 2-Hour tutorial per week • Tutorials begin in Week 2 (i.e. next week) • Please make sure you are assigned to a tutorial in Allocate+ • no student will be admitted to a tutorial unless they are on the class list. IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 3

  4. Synopsis • evolution and current state of the art of the theory and practice of business intelligence systems; • role of these business intelligence systems in providing intelligence information to business decision makers • development process and some key techniques that support it IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 4

  5. Aim • provide students with introductory knowledge of concepts, development and use of business intelligence systems IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 5

  6. Objectives At the completion of this unit the students will: • have knowledge of: • the scope and application of business intelligence systems • the role of business intelligence systems in supporting business decision making • the major approaches to the development of business intelligent systems • evolution of business intelligence systems IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 6

  7. Objectives • have an understanding of: • the process of business intelligence systems development • current state of the art of the theory and practice of business intelligence systems • have the skills to: • organise, analyse and interpret data for the purpose of supporting business decision making • understand managerial problem solving activity as well as problem finding activity for supporting business decision making IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 7

  8. Objectives have developed attitudes which enable them to: • identify and evaluate business intelligence opportunities • plan for business intelligence solution and implementation • work closely with business intelligence team IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 8

  9. Assessment Class Participation Value 10% • in tutorials Assignment Value 30% • due Week 9, during tutorial Exam, Value 60% Overall Assessment 100% IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 9

  10. Lecture 1 - Outline • What is Business Intelligence (BI)? • What is Business Intelligence System (BIS)? • What is the role of BIS in supporting business decision making? • How did BIS evolve? IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 10

  11. Learning Objectives • Define business intelligence (BI) and business intelligence systems (BIS) • Explain the role of BIS in supporting business decision making; • Identify the different BIS that were introduced in the past and explain how such systems supported business decision making IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 11

  12. What is Business Intelligence? IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 12

  13. What is Business Intelligence? According to vendors: • a segment of information technology that comprises software systems that enable finding, storing, organisingandsupplying data; when incorporated into an information system, it enables company to utilise real-time analysis of information Information Technology Toolbox www.ITToolbox.com IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 13

  14. What is Business Intelligence? • software that enables business users toseeanduse large amounts of complex data (e.g. multidimensional analysis, query tools, data mining tools) SDG Computing www.sdgcomputing.com IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 14

  15. What is Business Intelligence? • a category of applications and technologies for gathering, storing, analysing, reporting on and providing access to data to help enterprise users make better business decisions Cognos (www.cognos.com) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 15

  16. What is Business Intelligence? • markets business performance software, comprised of three subcategories that includes adhoc query and analysis, reporting/OLAP, executive information systems and analytical applications Brio (www.brio.com) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 16

  17. What is Business Intelligence? • a set of concepts and methods to improve business decision making by using fact-based support systems(e.g. briefing books and executive information systems in the 1990s) Gartner Group www.gartner.com IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 17

  18. What is Business Intelligence? • BI lets organisations access, analyse,and share informationinternally with employees and externally with customers, suppliers, and partners Business Objects www.businessobjects.com IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 18

  19. What is Business Intelligence? • BI helps corporations transform their operational data into actionable information; helps meet query reporting and advanced analytical needs MicroStrategy www.microstrategy.com IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 19

  20. What is Business Intelligence? • BI is a performance management framework, an ongoing cycle by which companies set their goals, analyzetheir progress, gaininsight, take action, measure their success, and start all over again • It helps decision makers make better decisionsfaster at both strategic and operating levels Vitt, Luckevich and Misner (2002) Microsoft Corporation IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 20

  21. What is Business Intelligence? According to non-vendors: • BI isprocessed information of interest tomanagementabout the present and future environmentin which business is operating Greene (1966) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 21

  22. What is Business Intelligence? • Processed information vs. data • data - raw material that is composed of facts • intelligence information - information digested, analysed, and interpreted for the purpose of decision making • Management has crucial role in BI, determines • what will be in the domain of BI • what information if of interest or relevant to its decision • Company’s environment • Present environment (mostly for tactical intelligence) • Future environment (mostly for strategic intelligence) Greene (1966) (cont) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 22

  23. What is Business Intelligence? • Operational Intelligence • Affects operational levels of organisation on daily, weekly, monthly basis • Tactical Intelligence • Affects a part of organisation for a limited time (i.e., coming year) into the future • Strategic Intelligence • Affects the entire organisation, or a major part of it for a long period of time (i.e., 2 - 5 years and beyond) • PURPOSE OF BI • Shift from reliance on short-term tactical decisions to better use of strategic intelligence in the decision-making process Greene (1966) (cont) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 23

  24. What is Business Intelligence? • BI results from full appraisal of information, past actions, and options; once sown, it tends to propagate itself across an organisation Liautuad and Hammond (2000) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 24

  25. What is Business Intelligence? • BI refers to the ability to understand the interrelationships of presented facts – whether they involve data, information and/or knowledge – in such a way to guide action toward one or more desired goals Thierauf (2001) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 25

  26. What is Business Intelligence? • Relationship of intelligence to various levels of summarisation • Data – unstructured data • Information – structured data useful for analysis • Knowledge - obtained from experts based on actual experience • Intelligence – keen insight into understanding important relationships Thierauf (2001) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 26

  27. What is Business Intelligence? • BI centers on computerised methods and processes to improve strategic, tactical and operational decisions using data, information, and knowledge from multiple sources as well as applying experience and assumptions to develop an accurate understanding of the dynamic surrounding decision making Thierauf (2001)(cont) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 27

  28. For this UNIT – IMS3001 • We shall adopt the definition of BI by non-vendors – process, organisational function, product • Processing of information – collecting, organising, analysing, gaining insight, interpreting, reporting data, taking action, measuring the benefits of such actions for the purpose of supporting decision making • Generally in the context of decision support IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 28

  29. What is a Business Intelligence System? IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 29

  30. What is Business Intelligence System? • BIS is an information system that provides BI to business decision makers at different levels of organisation (operational, tactical, strategic levels) • BIS is an information system that turns selected data, information, and/or knowledge into desired intelligence for business gain (Thierauf, 2001) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 30

  31. What is the role of Business Intelligence System? IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 31

  32. Role of BIS • Provide decision makers with the ability to understand (i.e., the intelligence to gain insights into) the relationships of presented facts in the form of data, information, and knowledge in order to guide action toward a desired actionable goal (Thierauf, 2001) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 32

  33. Role of BIS • Provide decision makers with timely data, information and knowledge for problem solving, and problem finding • Past : Decision making as Problem Solving activity • Reactive approach –use of appropriate management technologies to resolve current problems as they arise • Current: Business intelligence activity as problem solving, as well as problem finding • Proactive, preventive approach – anticipating future company problems; looking for future opportunities IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 33

  34. How did Business Intelligence Systems evolve? IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 34

  35. Evolution of BIS Computer-based Support Systems technologies • 1950s Transaction Processing Systems (TPS) • 1960s Management Information Systems (MIS) • 1970s Office Automation Systems Decision Support Systems (DSS) • 1980s DSS Expanded Commercial applications of Expert Systems Executive Information Systems (EIS) • 1990s Group Support Systems Neural Computing Integrated, hybrid computer systems Turban and Aronson (2001) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 35

  36. Attributes of Computer-based Support Systems(Turban and Aronson, 2001) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 36

  37. Attributes of Computer-based Support Systems(Turban and Aronson, 2001) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 37

  38. Attributes of Computer-based Support Systems(Turban and Aronson, 2001) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 38

  39. Attributes of Computer-based Support Systems(Turban and Aronson, 2001) IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 39

  40. More BIS technologies • 1990s Data warehouses • Enable decision makers to “pull” BI from a large centralised repository • created to support the information requirements of an organisation’s decision makers. • 1990s OLAP (On-Line Analytical Processing) systems • Enable decision makers to build and work with analytical models easily and view the output in multiple dimensions • 1990s Knowledge Management Systems (KMS) • Go beyond relationships found in information allowing decision makers to extract patterns, trends, correlations that underlie the interworkings of a company currently and over time IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 40

  41. Summary • Vendors define BI according to what their products can do for the business enterprise • Limited in scope; mostly refers to data analysis, querying and reporting • Non-vendors refer to BI as a process, an organisational function, and a product • Process – of converting data into actionable information – from unstructured data to keen insight and understanding of interrelationships of presented facts • Organisational function – strategic management function that affects the entire or major part of organisation • Product– processed information for the purpose of supporting business decision making IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 41

  42. Summary • BIS is an information system that provides BI to business decision makers • BIS evolved from the concept of Computer-based Support Systems decision support technologies • New BIS terminologies – data warehousing, OLAP, KMS IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 42

  43. References • Vitt, E., Luckevich, M. and Misner, S. (2002) Business Intelligence, Microsoft Corporation. • Greene, R. (1966) Business Intelligence and espionage. Dow-Jones Irwin, Homewood, Ill. • Lintaud, B. (2000) e-Business Intelligence: Turning Information into Knowledge into Profit, McGraw Hill, New York. • Thierauf, R. (2001) Effective business intelligence systems, Quorum Books. • Turban, E. and Aronson, J. (2001) Decision Support and Intelligent Systems, 6th Ed, Prentice Hall. IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 43

  44. Questions? Jocelyn.sanpedro@sims.monash.edu.au School of Information Management and Systems, Monash University T1.28, T Block, Caulfield Campus 9903 2735 IMS3001 – BUSINESS INTELLIGENCE SYSTEMS – SEM 1 , 2004 44

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