businessintelligence in banking

Business Intelligence - BI

What? Why? How?

Tychon Solutions, Chennai

What is BI?

Intelligence - the ability to apprehend the interrelationships of presented facts in such a way as to guide action towards a desired goal.

Business intelligence refers to the use of company data to facilitate decision-making by decision-makers, which means understanding current functioning and anticipating actions for well-informed steering of the enterprise.

Data Information


Why BI?

Without BI, companies are likely to …

• exceed budgets• miss expectations• improper usage of funds among various

depts • miss sales opportunity• ignore profitable markets• focus on less performing products and

services• neglect measurable metrics


Why BI?

Companies often find themselves in precarious position due to many factors such as…

Lacking insight to operational inefficiencies • take longer to identify

and address issues

Lacking visibility across the enterprise• difficult to coordinate

activities across departments, divisions, partners, and customers

Lacking depth of analysis• miss seeing abnormal

variances and understanding root causes that have material impact on earnings


Why BI?

Without BI, Companies end up with ….

•multiple versions of the truth•misaligned action across the organization•difficulty in prioritizing•inability to perform in-depth analysis•not knowing where to concentrate efforts•inability to measure departmental performance•unable to locate important information


BI for Banking Institutions

• Identify Objectives– Increase Customer Base– Increase Operational Efficiency– Increase Customer Satisfaction– Customer Behaviour Analysis– Adherence to guidelines– Staff Performance Analysis– Increase Profitability



• Objectives – Increase Customer Base– Analysis by • Geographical Area• Industry

– By Category– By Revenue– By Profitability

• Demography



• Objective - Increase Operational Efficiency– Productivity Analysis• No of transactions – Target Vs Actual• Inter-departmental delay analysis• Time Spent Vs Profitability Analysis


BI for Banking Inistitutions

• Objective – Increase Customer Satisfaction– Suggest alternate investment plans based on past

allocation and performance



• Objective - Adherence to Guidelines– Locating Deviations– Tracking money trails



• Example – Loan Performance Analysis by– geographical area– demographic segments – industry type, company turnover, profitability, age of

company– amount of loan, period of loan, interest rate– occupation, duration of occupation, designation– salary range– educational qualifications, marital status– loan product features


How?Create Data warehouse -> DATAMART

OLTP DB

(Online Transaction

Processing)

ETL – Extract

ion, Transla

tion, Loadin

g

DATAMART (Histor

ical Data – Cubes)


Why not just OLTP?OLTP Database Data warehouse Database

Designed for real-time business

operations

Designed for analysis of business

measures by categories and attributes

Optimized for a common set of

transactions, usually adding or retrieving

a single row at a time per table

Optimized for bulk loads and large,

complex, unpredictable queries that

access many rows per table

Optimized for validation of incoming

data during transactions; uses validation

data tables

Loaded with consistent, valid data;

requires no real time validation

Supports thousands of concurrent users Supports few concurrent users relative

to OLTP


How?

DATAMART

Canned Reports, Charts

OLAP Adhoc Reports,

Charts

PDA/Mobile Devices

Excel


How ?

• Dashboards– Define KPIs, dimensions, measures– Metrics, charts, trends – Data visualizations– Reports– OLAP – Online Analytical Processing


Tychons’ Methodology

Understand your

Business

Study your

Database

Understand your

Reporting needs

Define KPIs (Key Perform

ance Indicator

s)

Design DATAMA

RT

Recommend

appropriate

Reporting tool


Tychons’ Deliverables

•ETL Process, SecurityDatamart•Measures, DimensionsOLAP•PDF, Excel, DevicesCanned Reports

•Setup, TrainingAdhoc Reporting

•Views, Auto Refresh Dashboards•Performance Monitoring, AssuranceSupport


Tychons’ Success Story

• Implemented BI – Sales for Larson-Juhl, the largest photo frame manufacturer– Designed the Data-model – to handle 50 million

sales records, 7 years data– Designed and Developed ETL process– Designed and Developed Various Sales Reports

and OLAP tool.– Used Webfocus BI Tool on their DB2 (AS/400) JD-

Edwards Database.


Tychons’ Success Story• How did Larson-Juhl get benefited?

– Able to see historical product activity reports on the fly. Earlier they were depending on printed copies and saved xls for referring back to past

– Able to identify the product performance, do trend analysis, salesman performance analysis, gross margin analysis region wise, product wise, customer wise, time period wise

– Identify best and worst performers (product/customer/salesman/regions/locations)

– Access to latest sales information instantaneously instead of waiting for month-end reports

– Reclassify product groupings to perform “What if? Analysis”– Empower sales force and management with DATA. Business Analysts can

create their own easy adhoc drag and drop reports


Your Gain

Empowered Users

Accurate Reporting

Increased Sales

Efficient Operations

More Customer Satisfaction

Better Returns

Better Forecasting


Thank You


businessintelligence in banking

Documents

performance tychon solutions

oltptychon solutions

chennaiwhy bi

product performance

salesman performance

customer wise

valid data

analysis of business