Business intelligence tools and the profile of analytical users have evolved over the years, in addition to the level of awareness the need and evolution of the market have led companies to deeply consider the importance of intelligence in businesses since they take it as a priority before management and for decision making.
intelligence-in-business-diana-lozadaIntroduction
Currently, in the business world, it is essential for making strategic decisions to have adequate and timely information which supports all the management of the company's operations.
The use of data in organizations works as an element that facilitates decision-making, since it involves the knowledge of the current operation and the anticipation of future events.
There are different strategies for data analysis which can generate knowledge that supports business decisions. It is important to include that information technologies play a very important role in the collection, storage and processing of data generated by the operation of the company. This facilitates access to information and significantly reduces the margin of error that may exist when performing the same information capture on different occasions.
Business intelligence focuses precisely on the large volumes of information from different areas of an organization, this information is applied certain methodologies and tools so that it is possible to effectively analyze the organizational environment, thus determining strengths and weaknesses of the organization to establish strategies and discover new opportunities that may arise.
1. Evolution of the concept: Business intelligence
The Business Intelligence, BI concept is the use of data in a company to facilitate decision making. This has evolved rapidly since the 50's, the most important points in the history of "Business Intelligence" will be highlighted below:
1958: Hans Peter Luhn (IBM researcher) introduced the term
Business Intelligence (Business Intelligence or BI), in the article “A Business Intelligence System”, in which the following definition could be found in a very subtle way: “the ability to learn the relationships of facts presented in a way that guides actions towards a desired goal ”.
1969: Edgar Codd, information scientist worked on the concept of a database, since he realized that they existed and that they were not normalized, then he published 12 rules that a true relational system should have.
1970's: Development of the first databases and the first business applications in history:
- SAPJD EdwardsSiebelPeopleSoft
These applications allowed to perform "data entry" on the systems, increasing the information available on them, but they were not able to offer quick access, greatly complicating access to it.
1980s: The Datawarehouse concept is created by Ralph Kimball and Bill Inmon. Subsequently, the first reporting systems were introduced. Despite all efforts, it was still complicated and functionally poor.
1989: Howard Dresner popularized the term Business Intelligence.
1990s: Business Intelligence 1.0. Proliferation of multiple BI applications.
2000s: Business Intelligence 2.0. Consolidation of BI applications on a few Business Intelligence platforms. In addition to structured information, other types of information and unstructured documents are beginning to be considered in organizations.
2. Business intelligence
Parr (2000) defines business intelligence or Business Intelligence (BI) as: “Business intelligence is defined as a corporation's ability to make decisions. This activity is achieved through the use of methodologies, applications and technologies that allow gathering, debugging, transforming data and applying analytical techniques of knowledge extraction ”
In other words, business intelligence can be defined as the corporate ability that an organization has for its decision making. It is a set of technological processes and applications that facilitate the quick and easy obtaining of different data, which come from business management systems to later analyze and interpret them so that they can be used to make a decision.
This type of technology acts as a key and strategic factor within an organization since, it provides people in charge of making a decision with timely and reliable information to respond to situations that may arise for the company, this type of problem can go from market analysis to profitability of the production process.
Scopes of business intelligence
The information provided by this tool can have different scopes such as:
- Operational level: It is mainly used for making daily decisions about the transactions that are carried out when carrying out the operations of the company. Tactical level: Information is provided for the middle managers according to the monthly analysis and decisions. These are useful for follow-up reviews and action taking. Strategic level: At this level the decisions have the greatest impact on the company, and this information is used by senior management in situations that require it.
Business intelligence tools generally show the information in the form of scorecards and in turn by means of specific reports that can be created from the data obtained for their management, in such a way that the information is presented to the user in a dynamic and accessible way so that the analysis and later its interpretation can be carried out.
On the other hand, these tools are very useful in the different areas of the organization such as:
- Marketing: In this area, BI can be used for the study and segmentation of markets, as well as the analysis of trends and customers. Sales: It can be used for the analysis of customers and their profitability, analysis by product, by segment, projections. and sales forecasts. Finances The analysis can be done from detailed reports of expenses, costs and income. Logistics: Tracking shipments and monitoring orders to quantify losses. Production: Productivity report on production lines and inventory turnover.
Benefits of business intelligence
The advantages that an organization can have when using business intelligence are evident and highly effective, they can be classified into the following:
- Increased efficiency: By having access to data in an accessible and agile way, information of value itself can be generated, which can be viewed on a single platform to optimally take advantage of it when carrying out analysis and making decisions with information and with time. Quick responses to business situations: In order to make decisions in a timely manner, it is important to have information in a simple way and not waste time searching for it and thus consolidate data. Thanks to BI you can have the answers in minutes in a clear and concise way through indicator reports and data tables. Control of the functional areas of the company:In all areas of the organization valuable information is generated every day, it can be used in the best way to know trends, project data and analyze scenarios. Improve your customer service: By having the most important information and in real time, you can offer customers a service with more that can range from the order to the after-sales service, since by knowing more about them and their needs, They can analyze purchasing habits, recognize the best-selling products, etc. Present information through dashboards: to be able to consolidate a simpler and more direct communication of the company's situation, since by having the possibility of creating different dashboards you can focus on the most relevant data without the need to review large amounts of information.
Proper use of the tools offered by business intelligence can make a big difference between a company that achieves growth and one that does not do it at all, between excellent customer service and a decadent one between efficient inventory management. and the loss of money and resources, between the success or failure of a firm.
3. Business intelligence architecture
3.1 Operational level
It is of utmost importance to visualize and understand how you understand a business intelligence architecture. This analytical process is usually structured. This will be explained in phases below:
1.- Data sources : different data sources (essbase cubes, database, operational systems, ERP, legacy, flat files, xml files, Excel sheets) that could be used to extract data from multiple sources simultaneously.
2.- Extraction, transformation and loading process (ETL): This process is where the fields to be used are defined from the heterogeneous sources, if they need any type of modification and / or transformation and where they want to locate said data. This process is known as "mapping".
3.- Data repository : In this repository are the transformed data visually represented in multidimensional models, dimensions and data tables. There is a process between the data repository and the user access interface, this is the BI engine that allows me to enable components, manage queries, monitor processes, calculations, metrics.
4.- Access: The user access interface allows you to interact with the data, graphically represent the data, transforming it into results and management indicators that were built for subsequent consultations.
4. Data Intelligence Tools
4.1 Balanced Scorecard
The Balanced Scorecard also known as Balanced Scorecard is a business control tool which, clearly allows to establish and monitor the objectives of a company in its different areas. On the other hand, it can also be considered as an application that helps a company express the objectives and initiatives they need to fulfill their strategy, continuously displaying detailed information when the company and employees achieve the results defined in the strategic plan..
Unlike other Business Intelligence strategies, the Balanced Scorecard differs from the others, since it is more oriented to monitoring indicators than to a detailed analysis of the information, it is very common for a Balanced Scorecard to be controlled by the general direction of an organization compared to other tools. In this case it is complementary since it is required by senior managers who can use it to analyze the market and for strategies to build a business model that is related to the interrelationships of the different components of the company, once you have built the Organizational leaders use this model with a map to select the indicators of the WCC.
4.2 Decision Support System
A Decision Support System is a BI tool focused on data analysis, for an organization, data analysis may initially seem like a simple and easy process to carry out through a custom-made application requested, however, it is not absolute. These types of applications usually have a series of predefined reports in which the information is presented statistically and statically since it is not allowed to drill down into the data, navigate between them and manage them. From different perspectives, this type of tool is emblematic in business intelligence, since in other units it allows solving many of the limitations of management programs.
4.3 Executive Information System
The Information Systems for Executives or SIE is a software tool based on an SSD (Decision Support System) This system provides managers with easy access to internal and external information about their company, which is relevant and key to success. The main purpose is for the executive to have available all the information that can complement his or her outlook and status.
On the other hand, the business indicators that affect it can be seen instantly, also maintaining the possibility of analyzing in detail the expectations established to determine the most appropriate action plan. In a simpler way it can be said that a computer application that shows reports and lists of the different areas of a business and that in a consolidated way facilitates the monitoring of the companies of a unit or the same. This type of system is characterized by offering the executive quick and effective access to shared information using intuitive and visual graphical interfaces.
4.4 Datamart
Datamart is a departmental database that specializes in data storage in a specific business area, it is characterized by having an optimal data structure to subsequently analyze the information in detail from all perspectives that affect the processes of said department. A Datamart can be fed from the data of a Datawarehouse or it can integrate itself a compendium of different sources of information for its use, therefore to create a Datamart of a functional area of the company it is necessary to find the optimal structure of the same. For the analysis of your information structure that can be mounted on a database.
Datamarts that are equipped with these highly effective structures for analysis and have the following advantages:
- Low data volume Increased query speed Simple SQL and / or MDX queries Direct validation of information Ease of historical data access
4.5 Datawarehouse
Datawarehouse is a database for which it is characterized by integrating and debugging the information from one or more different sources of information to later process it allowing its analysis, this can be generated from infinity of perspectives with high response speeds. The creation of a Datawarehouse the first step from the technical point of view to implement a complete solution in the decision of an organization on a specific topic, the main advantage of this type of database lies in the structures in which it relates the information, since this type of information persistence is homogeneous and reliable, allowing the consultation and treatment of the hierarchy of the same the much more effective and reliable.
4.5.1 Datawarehouse Features
A datawarehouse is characterized by being:
Integrated: The data stored in the datawarehouse must be integrated into a consistent structure, so existing inconsistencies must be completely eliminated. The information is also usually structured at different levels of detail to suit the different needs of the organization.
Thematic: only the data necessary for the process of generating business knowledge is integrated from the operational environment. The data is organized by topic to facilitate access and understanding by end users.
Historical: time is an implicit part of the information contained in a datawarehouse. In operational systems, the data always reflects the current state of business activity. On the contrary, the information stored in the datawarehouse serves to establish a trend analysis and thus allow comparisons.
Non-volatile: The information store of a datawarehouse exists to be read, but not modified. The information is therefore permanent and impossible to change.
Another feature of the datawarehouse is that it contains metadata, that is, data about the data. Metadata allows us to know the origin of the information, its reliability and the way it was calculated.
conclusion
Business intelligence tools and the profile of analytical users have evolved over the years, in addition to the level of awareness the need and evolution of the market have led companies to deeply consider the importance of intelligence in businesses since they take it as a priority before management and for decision making.
The use of data in organizations works as an element that facilitates decision-making, since it involves the knowledge of the current operation and the anticipation of future events that an organization may experience. Business intelligence focuses on managing large volumes of information, applying tools and methodologies to decipher it and thus make optimal decisions.
Thesis topic
Implementation of datawarehouse in the marketing department of the company XXXX SA de CV
Thesis objective
Use the intelligence tool in business datawarehouse for market research of the XY product in the marketing department of the company XXXX SA de CV
References
Gomez, AA (2010). Business intelligence: State of the art. Scientia et Technica Year XVI, 321-326.
Hitt, MI (2000). Strategic management. Mexico: Thomson, Editors.
ORACLE. (2015). What is business intelligence? 1-6.
Reyes, A. (2000). Business Administration: Theory and Practice. Mexico:
LM Editores.
Sánchez, MM (2012). Factors that intervene in the development of SMEs in the manufacturing sector in five municipalities in the Monterrey metropolitan area, affiliated to CAINTRA. Monterrey, NL: UNM.
SIGN. (2009). Fundamentals of Business Intelligence. SIGN:
National Apprenticeship Service, 1-18.
Thanks
To God, for all his blessings.
To my parents, they have been a fundamental support in every step I take. My pillar, my livelihood. Infinite thanks!
My sisters, Marilyn, Vicky and Jessy since the responsibility came with you.
To CONACYT and PNPCC for accepting me in their program and allowing me to realize the dream of studying a postgraduate degree.
To the Orizaba Technological Institute for allowing me to face a new challenge, for professionalizing me and obtaining new knowledge.
To Dr. Aguirre y-Hernández, for his interest in training quality professionals, for the motivation, for his classes at 7 in the morning, for his punctuality.
To each and every one of my teachers who taught me so much. Example of teaching and life.
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