Business Intelligence Reporting. KSE 521 Topic 12 Mun Yi
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1 Business Intelligence Reporting KSE 521 Topic 12 Mun Yi
2 Agenda Business intelligence systems Relationship of operational and BI applications Reporting applications RFM analysis OLAP 2
3 BI Definition Revisited Business Intelligence (BI) refers to technologies, applications, and practices used to help a business acquire a clear understanding of its commercial context. It may also refer to the collected information itself. 3
4 Business Intelligence (BI) Systems Business Intelligence systems are information systems that provide historical, current, and predictive views of business operations, most often using data that has been gathered into a data warehouse or a data mart and occasionally working from operational data. Unlike transaction processing systems, BI systems do not support operational activities. Instead, BI systems are used to support management by producing information for assessment, analysis, planning, and control. Two broad categories: Data mining Reporting 4
5 The Relationship of Operational and BI Applications 5
6 Characteristics of BI Applications 6
7 Reporting Applications Reporting system applications: Filter Sort Group Make simple calculations Classify entities (customers, products, employees, etc.) RFM Analysis Can be performed using standard SQL Extensions to SQL are sometimes used OnLine Analytical Processing (OLAP). Summarize current business status Compare current business status to past or future Deal with critical report delivery 7
8 RFM Analysis RFM Analysis analyzes and ranks customers according to purchasing patterns: R = Recency (how recently an order was made) F = Frequency (how often an order was made) M = Money (how much money spent per order) Customers are sorted into five groups, each containing 20% of the customers. Each group is given a numerical value: 1 = Top 20% 2, 3, 4 = Each 20% in between top and bottom 20% 5 = Bottom 20% 8
9 RFM Analysis: An Example Ajax ordered recently (1), orders often (1) but does not order the most expensive items (3) Try to sell Ajax more expensive goods! Bloominghams has not ordered recently (5), but has ordered often (1) and purchased the most expensive items (1). This customer may be looking for a different vendor better call! 9
10 Producing the RFM Analysis 10
11 Producing the RFM Analysis 11
12 Market Basket Analysis Determines patterns of associated buying behavior. Support The probability that two items will be purchased together. Confidence The probability that an item will be purchased given the fact that the customer has already purchased another particular item. Lift the ratio of confidence to the basic probability that a particular item will be purchased.
13 Market Basket Analysis Example
14 SQL Statements for Market Basket Analysis CREATE VIEW SELECT FROM WHERE TwoItemBasket AS L1.p_code as FirstItem, L2.p_code as SecondIem Line L1, Line L2 L1.Inv_number = L2.Inv_number and L1.p_code <> L2.p_code; CREATE VIEW SELECT FROM GROUP BY ItemSupport AS FirstItem, SecondItem, Count(*) AS SupportCount TwoItemBasket FirstItem, SecondItem;
15 Online Analytical Processing [OLAP] OLAP is an approach to quickly provide answers to analytical queries that are multi-dimensional in nature. OLAP products provide modeling, analysis, and visualization capabilities to large data sets, and also provide a multidimensional view of the data. An OLAP report has measures and dimensions: Measure A data item of interest. Dimension A characteristic of a measure. OLAP cube A presentation of a measure with associated dimensions. An OLAP cube can have any number of axes. The terms OLAP cube and OLAP report are synonymous. OLAP allows drill-down a further division of the data into more detail. Excel supports drill-down analysis and multidimensional analysis with its pivot table feature. 15
16 OLAP Drill Down: Product Family by Store Type 16
17 OLAP Drill Down: Product Family and Store Location by Store Type 17
18 OLAP Drill Down: Store Location and Product Family by Store Type 18
19 OLAP Servers and OLAP Databases 19
20 Reporting Systems: Components of a Reporting System 20
21 Reporting Systems: Report Characteristics 21
22 Reporting Systems: Report System Functions Report Authoring: Connect to data sources. Create the report structure. Format the report. Report Management: Defines who receives what reports when and by what means. Report Delivery: Push reports or allow them to be pulled. 22
23 Major BI Players Actuate IBM Information Builders Microsoft MicroStrategy Oracle SAP Teradata 23
24 MicroStrategy BI Platform 24
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