BUSINESS INTELLIGENCE

By :- Surabhi

Overview
What is Business Intelligence? Why BI? The characteristics of a Business intelligence Benefits Limitation Example

What is Business Intelligence?

Business Intelligence is the processes, technologies, and tools that help us change data into information, information into knowledge and knowledge into plans that guide organization Technologies for gathering, storing, analyzing and providing access to data to help enterprise users make better business Decisions

 It provide to access data for professionals and help them make better business decisions. The ability of depth analysis and data mining of detailed business data to provide real and significant information to users. The software allows users to access and review large amounts of complex data

 Business intelligence is complicated yet helpful applications. It include the ability to effectively act the exploitation of information and human resources. In this Business Intelligence environment one also needs to analyze and present right information, which enables them to take right action, or make right decisions.

Why BI?

What happened? What is happening? Why did it happen? What will happen? What do I want to happen?

Past Present Future

Why do we need BI?

Business Intelligent implementation, businesses can make decisions and feel comfortable that they are provided with the proper tools and data needed to believe in their decisions.

Without correct BI solution even well planned and executed data warehouse architectures can fail. BI is decision support system and database that can provide professional with the information they need to make the most effective decisions for their organization.

Contd.
It also provides data about the organizations details, such as customers , product, and services. When one action rapidly it take appropriate action or make the right decision business success is realized.

Who uses Business Intelligence?

BI having wide scope of data. Data can be demographic trends( info like personal details), product line profitability, fine tuning of pricing options, identifying of top customer and tracking product trends. Most organizations could benefit from Business intelligence software. It include restaurant chains, retails, or even professional sports teams.

 BI tool is not easily affordable therefore they are most commonly used in large corporations, rather then small business.
Business Intelligence tools provide significant value of considering benefit they will have to organization.

The characteristics of a Business intelligence solution

Single point of access to information Timely answers to Business questions Using BI in all Departments of an organization

Early days system

BI system

Key Stages

Benefits
Improve Operational efficiency Eliminate report backlog and delays Find root causes and take action Negotiate better contracts with suppliers and customers Identify wasted resources and reduce inventory costs Sell information to customers, partners, and suppliers Leverage your investment in your ERP or data warehouse Improve strategies with better marketing analysis Give users the means to make better decisions Challenge assumptions with factual information

Limitation
Very high software cost. Expensive and time consuming training. A wide Variety of technology experts. Extensive system upgrade and maintenance. Movement of data between disparate data source. Queries done out of BI systems can be cumbersome and time-consuming to run for end users

Search Effectiveness

Customers that search are worth two times as much as customers that do not search Failed searches hurt sales

Visit
10%

90%

Search
(64% successful) Avg sale per visit: 2.2X 70% 30%

No Search
Avg sale per visit: $X

Last Search Failed

Avg sale per visit: 0.9X

Last Search Succeeded

Avg sale per visit: 2.8X

Top Searches

Top searched keywords (percent of searches)

Empty search string (3.9%) returns over 160 results GPS (1.2%)

Recommendation: - Do not allow empty search - Create custom pages for often searched keywords

sunglasses (0.8%)
watches (0.6%) nalgene (0.5%) ecological footprint (0.5%)

Top failed keywords in the product category (percent of failed searches)

gift certificate(s) (0.98%)
(already implemented since study)

arcteryx (0.44%) bear spray (0.44%) pedometer (0.37%) stroller(s) (0.36%) north face (0.33%) (gift) registry (0.21%)

Recommendation: - Parse search string to remove special characters - Build extensive thesaurus - Consider carrying products

Referrers

Top Referrers
Google

5.8% of all visits are referred by google

Visit to purchase conversion 1.6%

Average purchase per visit = 1.8X

MSN (including search and shopping)

11% of all visits are referred by MSN Visit to purchase conversion 0.7% Average purchase per visit = X

Recommendation
Define an ad strategy based on ROI Emphasize AOL

AOL search

0.62% of all visits are referred by AOL Search Visit to purchase conversion 2.6% Average purchase per visit = 4.8X

Campaign Analysis

Analyze the effectiveness of campaigns

Recommendation: Send targeted emails

Campaign

Emails Sent

Opens

Clickthroughs
9.3%
(52p/email)

Orders

Campaign 1

100%
(4.8p/email)

22%
(22.3p/email)

0.07%

Campaign 2

100%
(0.5p/email)

11%
(4.8p/email)

3%
(17.9p/email)

0.01%

Campaign 3

100%
(0.8p/email)

22%
(3.6p/email)

5.3%
(15.3p/email)

0.01%

Click-through rates are high - good

Page Effectiveness Report

Percentage of visits clicking on different links
14% 3% 2% 8% 2% 13% 9% 0.6% Top Menu 6%

3% 2% 2% 0.3% 2%

18% of visits exit at the welcome page

Any product link 7%