Intoduction to Business Intelligent Technology

.. Worapoj Kreesuradej, Ph.D. Associate Professor

Data Mining & Data Exploration Laboratory (DME Lab), Faculty of Information Technology, King Mongkut's Institute of Technology Ladkrabang, Web: www.it.kmitl.ac.th/dme Email: worapoj@it.kimitl.ac.th, dme@it.kmitl.ac.th.

Course outline

1 2 3 4 5 6 7

introduction to business intelligent technology Introduction to Data Mining Process and Applications Data Preparation Database segmentation 1 Database segmentation 2 Predictive Modeling 1 Predictive Modeling 2

Course outline

8 9 10 11 12 13 14 15

Grading

Link Analysis Introduction to Data Warehouse Process and Applications Defining Business Requirements and Planning Dimensional Modeling 1 Dimensional Modeling 2 Data Extraction, Transformation, and Loading Business Intelligent Applications Term Project Presentation

assignment midterm exam final exam

40 % 30 % 30 %

Text Book
Jaiwei han and Micheline Kamber, Data Mining: concepts and techniques, Morgan Kaufmann, Second Edition. Paulraj Ponniah, Data Warehousing Fundamentals, John Wiley & Sons, 2001

References
Joy Mundy and Warren Thornthwaite with Ralph Kimbal, The Microsoft Data Warehouse Toolkit, John Wiley and Sons, 2006. Ralph Kimbal and Margy Ross, The Data Warehouse Toolkit, John Wiley and Sons, 2002.

Recognizing the Need

CEOs:
How can I target the right customers to maximize profits?

Recognizing the Need

Business perspective

Lack information to make decisions

We are drowning in data, but starving for knowledge!

Managers:
Which customers are likely to be interested in which offers and why?

Competitors with better information are winning

Call Reps can

Suggest the right offer for the customer

Business Intelligence
Business Intelligence: A category of applications, databases and techniques for gathering, storing, analyzing , and providing access to data to help enterprise users make better business and strategic decisions.

How Does BI Help?

Business Intelligence provides a holistic overview of a business:
It monitors and provides visibility into the financial and operational health of an organization It regulates the operations of the organization It allows the company to quickly identify trends to be proactive and agile, outpacing the competition

A Short History of BI
The 70s :Decision Support systems (developing Theory and Model Driven DSS) The 80s: EIS The 90s: Data Warehouse (Data Driven DSS) 2000 Present : Business Intelligence

A Short History of BI
Business Intelligence is a popularized umbrella term introduced by Howard Dresner of the Garner Group in 1989. BI describes a set of concepts and methods to improve business decision making by using fact-based support systems.

A Short History of BI
Today, the evolving definition for BI can be best described as a framework that encompasses both solutions and enabling technology components designed to enhance the decisionmaking processes.

How Business Intelligence works?

Technology view

How Business Intelligence works? The BI Cycle

INSIGHT Business Intelligence

Major BI tools
Data warehouse Query and Reporting tools On line Analytical Processing (OLAP) Data Mining

Building value every cycle using business intelligence

ANALYSIS

ACTION

MEASUREMENT

Business Process View

Business Impact
Data Mining Client Data Increasing business Impact

Custom Application

Data Warehouse

Query & Reporting tool

Data Mining Information Discovery Data Exploration

ERP

OLAP Statistical Analysis, Querying and Reporting Data Warehouses / Data Marts

Packaged Application Custom Application

Intelligence Enterprise

OLAP

Data Sources Paper, Files, Information Providers, Database Systems, OLTP

What is Data Warehouse?

A Data Warehouse Is a Database That Contains:
Enterprise data Integrated sets of historical data Subject-oriented, consolidated, consistent data Data structured for distribution and querying

Data Warehouse

What is OLAP?
OLAP is the application that use of a set of graphical tools that provides users with multidimensional views of their data and allows them to analyze the data

Three different view of fruit sales (1)

Time Qtr1 Qtr2 Total Amount 16,000 16,000 32,000 Market Bangkok Saraburi Phuket Rayong Total Amount 8,000 8,000 8,000 8,000 32,000

Three different view of fruit sales (2)

Product Apples Cherries Grapes Melons Total Amount 8,000 8,000 8,000 8,000 32,000

Multidimensional View of Fruit Sales (1)

bangkok Saraburi Phuket rayong total

Qtr1

Apples Cherries Grapes Melons Total

1,000 2,000 3,000

3,000 2,000 5,000

2,500 2,000 4,500

1,500 2,000 3,500

4,000 4,000 4,000 4,000 16,000

Multidimensional View of Fruit Sales (2)

bangkok Saraburi Phuket rayong total

What is Data Mining?

Definition: Data Mining is the process of extracting previously unknown, valid and actionable information from large database and then using the information to make crucial business decisions. Alternative names: Knowledge Discovery in Databases (KDD)

Qtr2

Apples Cherries Grapes Melons Total

4,000 1,000 5,000

3,000 3,000

1,500 2,000 3,500

2500 2000 4,500

4,000 4,000 4,000 4,000 16,000

Data mining process

Pattern Evaluation Data Mining

BI Output Segmentation by Business Impact

2% or Less Significant Business Impact Decision Influencing Informative

Data Preparation
Preprocessed Data

5-10%+

Selection Business Objective

Target Data

80%+

Databases

End User Segmentation by Technical Skills

2% or Less Heavy Analysts Casual and Ad-Hoc Usage Consumers

End User Segmentation by Product Type

2% or Less Data Mining

5-10%+

5-10%+

OLAP

80%+

80%+

Query and Reporting tools

Thank you !!!