Apex Institute of Engineering

DEPARTMENT OF AIT - CSE

B.E. CSE with Specialization in BDA
21CST290- Business Intelligence
By: Dr. Amit Vajpayee (E14118)

Lecture -5 & 6
Lecture 5 Defining Business Intelligence Value Chain DISCOVER . LEARN . EMPOWER
Lecture 6 Factors of Business Intelligence System 1
Chapter Course Objectives

The course aims to:

Understand the concept of business intelligence.
1. Understand the importance of data visualization.
Design and develop a micro strategy in intelligence.

Chapter Course Outcomes

CO1: Comprehend business intelligence
CO2: Analyse datasets using data visualization tool
CO3: Design strategic approaches in business
CO4: Explain different BI Tools
1. CO5: Apply various BI Tools in Real-Time Problem Solution

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Defining Business Intelligence Value Chain
• IN COMPETITIVE MARKETPLACE, it is vital for every business enterprise whether small or big
to cope with the pace of the market growth.
• Intelligence is the ability to learn and understand new situations by updating yourself with
current information. This is why organizations are becoming more dependent on data or
information for improving development of product and services that can outsell their
competitors.
• So, they are primarily relying on analytical database solutions like data warehouses. However,
in the entire process these information and later applying them in action describes a chain of
methods called value chain.
• Value chain is the process that converts data into information and then applies that
knowledge in taking productive business decision, and the outcome is the ultimate value.

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Data resources
• The first step of the value chain is the collection, management and analysis of data to produce
information that can help in taking different types of business decision.
• Data warehouse generally contains various kinds of data both related and unrelated but here
BI tries to co-relate, analyze and explore valuable information from those data resource.
• However, it becomes essential to first list out similar or related data that can assist in
identifying healthy business opportunities. These can be descriptive, quantitative or
qualitative.

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Information engineering

• Here, information engineering refers to the kind of information

needed and way for its presentation that should meet current and
future demand of business.
• Data is generally available in raw forms and is base for extracting
information that sustains the knowledge environment for developing
business strategies.

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Knowledge Gain

• It’s the process of knowing something through experience

(experiment), instinct, beliefs that make you aware about different
things and help to act intelligently.
• Knowledge is the core aspect to understand what is relevant and
significant to business issues and it can be used for further advantage.
• So interpreting available information can assists in gaining knowledge
that leads to business intelligence.

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Action taken
• Data analysis and information exchange create knowledge that are
used in resolving complex problems, innovating new ideas and taking
various decisions like strategic, tactic for specific business purposes.
• So combining knowledge and information used to take action; it
includes the sharing and accumulating knowledge for gaining
successful business ideas.

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Outcome
• Information and knowledge offer an insight to the kind of action is to
be taken and is essential to integrate knowledge and business ideas to
positive business outcomes.
• A well-planned business strategy with adequate information generally
supports to reduce cost, save time, optimize resources, increase
revenue, satisfy customer, and over all to reach the desired business
goals.

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Factors of Business Intelligence Software

• Any BI solution vendor must meet certain essential criteria. These can
easily be listed as:
• Technology needs (comprehensive platform, analysis capabilities)
• Corporate capability (company strength and stability, global reach and
presence)
• Customer alignment (organizational depth and commitment to
customers)

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Five major factors to consider in BI
software
• Platform. In all probability, your company could be using a number of different hardware / software
combinations. In the future as well, your choice of specialist applications could dictate a different choice of
platform to be used. Therefore, the BI solution you select must be able to support different platforms.
• Applications. You could be running a number of different applications and some of them would be producing
their own output and data. In addition, there could be large and complex applications like ERP or CRM
applications running in your company. Each of these applications will have to be studied on a case by case
basis to determine the ease (or difficulty) of integrating its data with the BI solution you are planning to
shortlist. In some cases, you might even have to change your applications or write bridging code to be able to
integrate the solution with the application. Do remember that the lesser number of ad hoc patches you use,
the more stable your final solution will be.
• Data management. Your organization could have data in several different databases. These could be a mix of
RDBMS as well as OLAP (on-line analytical processing) data. In case you have a number of legacy systems,
these would add to the complexity as well. The solution you select must be able to handle data from all these
sources, combine them after purification and store them in a data mart that it will then access for its queries.
In addition to this, you may have some proprietary database extensions, the solution must cater to these as
well.

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Five major factors to consider in BI
software
• Globalization. In case your organization has offices over several countries, the BI solution you choose must be
capable of being deployed in several different languages and allow users to select from any of the languages
it is capable of. Even if you do not have a presence in different countries today, you could need the solution
tomorrow. Also with supply chains becoming global, it is quite possible that some of your suppliers could be
in, say, China, in which case you may want to share some performance related data with them. At least
consider having some of the major languages supported by your software.
• Scalability. As your business grows, your needs will invariably grow as well. The solution must be able to
handle a large number of users and larger datasets without requiring frequent addition of hardware. An
important issue in today’s environment is a move to cloud computing. Even if you haven’t already done so, I
anticipate that in the next two to three years, some part of your IT infrastructure would be cloud based.
Organizations generally start with storage and then move their applications and operations to the cloud as
they gain more confidence. Since the move is nearly inevitable, you must anticipate this now. Check with your
vendor and clarify issues about portability and what support would be forthcoming. You could even consider
deploying your solution in the Internet Cloud to begin with. Doing this frees you entirely from any kind of
upfront hardware investment and gives you nearly unlimited scalability.

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Text Books:- 
Sherman, Rick.(2015).Business Intelligence Guidebook: From Data Integration to Analytics, Morgan
Kauffman.
Maheshwari, Anish, K. (2015). Business Intelligence and Data Mining, Business Expert Press.

Reference:
Moss, Larissa, T( 2020). Business Intelligence Roadmap: The Complete Project Lifecycle for
Decision-Support Applications, Addison-Wesley Information Technology Series
Howson, Cind, (2020). Successful Business Intelligence, Mc Graw Hill.

Research Papers:-
1) Negash, Solomon, and Paul Gray. "Business intelligence." Handbook on decision support systems
2. Springer, Berlin, Heidelberg, 2008. 175-193.
2) Luhn, Hans Peter. "A business intelligence system." IBM Journal of research and development 2.4
(1958): 314-319. 

Video Link:-
https://www.youtube.com/watch?v=hDJdkcdG1iA
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THANK YOU

For queries
Email: amit.e14118@cumail.in
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