BUSINESS INTELLIGENCE VS. BUSINESS ANALYTICS

AND BUILDING STRATEGY AROUND

Suvradeep RudraBusiness Systems Analyst - Analytics

Agenda

• Definition BI vs. BA• Deep Dive – BI Vs. BA• Intelligence Vs. Analytics• Building Strategies

BI Vs. BADifference between ‘Business Intelligence’ and ‘Business Analytics’ and

not many in the industry understand that.

Monitoring and tracking metrics/KPIs in the form of reports/dashboards is ‘Business Intelligence’, but making meaningful sense of these metrics,

co-relating them with other factors that influence them, understanding the trends and using statistical algorithms to predict outcomes is where

the bang for the buck is…and that is ‘Business Analytics’

By - smartdatacollective.com

Intelligence vs. AnalyticsTraditional BI

• Standard reports and dashboards• Ad hoc reports – Current performance• Query Drill down • Cube analysis – Slice and dice• Alerts

Vs.

Business Analytics• Statistical Analysis• Forecasting• Predictive modeling• Optimization

Building Strategies - Explore Identify the pain point and define problem scope

• Performing an analytics readiness assessment of the current state of your organization--including technology, business, and data

• Identification and optimization of the true drivers of financial performance and cost efficiencies

Building Strategies - Currents systems

Understand currents systems in place and various data points.• Data collection• Data overlap• Type of problems with data• Any transformation needed• Typical data volume

• Limitation due to data problem

Building Strategies - Roadmap Create implementation roadmap and develop analytics.

 

• Architecture diagrams – Current, Future and intermediate phases• Logical • Heat Maps – Coverage of data in Red/Yellow/Green• Data flow diagrams – facts, masters, volumes• Metadata Management• ETL frame work• Security Architecture• Data Quality and Governance• Test Strategy• Developing the Reporting Strategy /Global Reporting Design• Reporting Implementation

Building Strategies - Categorization

Categorized the problem identified in to Operational ,Tactical or Strategic

• Operational - This analytics type tends to assist in “business as usual” situations where basic corporate metrics are reported and visualized.

» Reporting of the “here and now” metrics• Tactical - This analytics view is usually longer term and focuses more on analytics

to assist management in tackling problems, often including fairly simple predictive models based on past historical performance.

» Even driven Analytics» Monitoring / Web analytics» Ad Hoc Analytics

• Strategic - This type business analytics can play a vital role in helping a company make dramatic decisions affecting the strategic direction of the organization

» Comparative analytic» Predictive analytics

Building Strategies - Prioritize Metrics

Identify and prioritize metrics to be developed in each category.

• Identify optimization opportunities

• Categories and types of business analytics

Building Strategies - ReadinessDevelop a plan for IT readiness, Business readiness, Technology readiness Data readiness

• Rough timeline• Cost estimates• Data services needed• Software needed• Training needed• Resources

– Statistician – Database programmer– Programmer/application developer– Business Analyst– Project manager– Product manager– Trainer

Building Strategies - Benchmark Establish a benchmark and quantify benefits.

• Return on Investment • Revenue • Profitability • Cash Flow • Productivity • Long-term Planning • Other metrics specific to your organization

Building Strategies - Monitor• Monitor and improve performance.

Resources and Bibliography• SAS

– http://www.sas.com• Smartdatacollective

– http://smartdatacollective.com• Data Informed

– http://data-informed.com/management• Marketstrategies.com

– http://www.marketstrategies.com/en/methods/quantitative.aspx

• Cogentdataanalytics

– http://www.cogentdataanalytics.com/glossary/data-mining.php

QUESTIONS?