Week 8-10 - Business Intelligence and Decision Support Systems

Business Intelligence (BI) is the process of collecting, analyzing, and visualizing business data to help organizations make data-driven decisions. It combines strategies, technologies, and methodologies to convert raw data into meaningful insights.

What is Business Intelligence?

Extracting data from multiple sources like databases, CRM systems, and external data feeds.

Key Components of BI

Data Collection

Storing large volumes of data in centralized systems for efficient access.

Key Components of BI

Data Warehousing

Using techniques like data mining, predictive analytics, and

statistical analysis to identify trends.

Key Components of BI

Data Analysis

Presenting insights using charts, graphs, and dashboards.

Key Components of BI

Data Visualization

Retail: Amazon uses BI to recommend products based on customer behavior.

Real-World Examples of BI Usage

Healthcare: Hospitals analyze patient data to improve treatment plans.

Real-World Examples of BI Usage

Finance: Banks use BI for fraud detection and customer segmentation.

Real-World Examples of BI Usage

Manufacturing: Companies monitor supply chains to optimize production.

Real-World Examples of BI Usage

Tableau – A powerful data visualization tool that allows businesses to create

interactive dashboards.

BI Tools and Technologies

Popular BI Tools

Power BI (Microsoft) – A business analytics tool used for reporting and sharing

insights

BI Tools and Technologies

Popular BI Tools

Google Data Studio – A free cloud-based BI tool for creating reports and

dashboards.

BI Tools and Technologies

Popular BI Tools

SAP BusinessObjects – Enterprise software for reporting, analytics, and data management.

BI Tools and Technologies

Popular BI Tools

QlikView/Qlik Sense – Tools for data visualization and business analytics.

BI Tools and Technologies

Popular BI Tools

Improves accuracy – Analyzing real-time data reduces errors.

How BI Tools Help in Decision-Making

Enhances efficiency – Automates data processing and reporting

How BI Tools Help in Decision-Making

Facilitates predictive analytics – Helps forecast trends for strategic planning.

How BI Tools Help in Decision-Making

A retail company uses Power BI to track sales performance. The tool generates reports on:

• Best-selling products

• Sales trends over time

• Customer demographics

Example: Using Power BI for Sales Analysis

• Differentiate between static reports and dynamic dashboards.

• Learn how dashboards improve business insights.

Reporting and Dashboards in BI Objectives:

Operational Reports – Daily sales, employee performance reports.

Analytical Reports – Deep data analysis on customer behavior.

Ad-hoc Reports – Custom reports based on user queries.

BI reporting involves generating structured reports to communicate insights. Reports

can be:

A dashboard is a visual interface that provides a real-time overview of key performance indicators (KPIs).

Dashboards in BI

Total revenue – Updated daily.

Regional sales performance – Comparison across different locations.

Customer acquisition trends – Analyzing new vs. returning customers.

Example: Sales Dashboard in Tableau

A company can use a sales dashboard to track:

A DSS is a computerized system that supports decision-making by analyzing data and presenting actionable insights.

What is a Decision Support System (DSS)?

Model-Driven DSS – Uses mathematical models to simulate scenarios (e.g., supply chain optimization).

Types of DSS

Data-Driven DSS – Uses large datasets for insights (e.g., Google Analytics).

Types of DSS

Knowledge-Driven DSS – Provides recommendations based on rules and AI (e.g., medical diagnosis systems).

Types of DSS

Communication-Driven DSS – Facilitates team decision-making (e.g., Microsoft Teams with data integration)

Types of DSS

Assess loan eligibility based on credit scores.

Analyze risk factors before approving loans.

Suggest investment opportunities based on market trends.

Example: DSS in Banking

A bank uses a DSS to: