Business Analytics Notes

Business Analytics Notes
3 categories:
1. Descriptive
2. Predictive Prescriptive Analytics
3. Discovery
Decision Support System- computer-based systems which help decision makers utilize data (and
models) to solve unstructured problems; improves the quality of decisions.
Business intelligence software are the tools that make it possible to create value from big data.
Some examples of business intelligence technologies include data warehouses, dashboards, ad hoc
reporting, data discovery tools and cloud data services.
- Enables easy access of data to allow managers to analyse data and make decisions
- Helps transform data to information, decisions and finally, action.
Architecture of BI
1. Data warehouse (source data)
2. Business Analytics, a collection of tools for manipulating, mining and analyzing the data in
the data warehouse
3. Business performance management (BPM) for monitoring and analyzing performance
4. User interface (eg dashboard)
Data Warehouse
-central repositories of integrated data from one or more disparate sources
-enterprise-wide, cleansed data in a standardized format
-subject oriented databases
-data stored is non- volatile- memory that can retain stored information even after power is removed.
-time-variant- changes with time
- provides access to real-time data
-includes metadata (data about data- how data are organized and how to effectively use them)
3 types of data warehouse:
1. Data mart
-subset of data warehouse
-smaller and focusses on a particular subject or deparment
2. Operational Data Store (ODS)

-used for short-term decisions involving mission-critical applications
-contents of ODS are updated throughout the course of business operations
-stores only very recent information
3. Enterprise Data warehouse

-large scale data warehouse used across the enterprise for decision support
-used to provide data for applications like CRM, SCM, BPM (Business performance management,
revenue management etc.
1. Data Sources
2. Data Extraction and Transformation- data is extracted and transformed usinh custom-written
or commercial software called ETL.
3. Data Loading- Data is loaded ubti a staging area where data is transformed and cleaned and
then loaded into data warehouse, EDW (comprehensive database)Metadata- so data can be
assessed by IT personnel and end users
4. Middleware tools- enable access to the data warehouse eg. SQL queries, etc
Data Architecture (refer to textbook)
Dimensional Modeling (DM) is a data structure technique optimized for data

storage in a Data warehouse. The purpose of dimensional modeling is to optimize
the database for faster retrieval of data
Dimensions- contain classification and aggregation information about the central fact rows,contain
attributes that describe the data in the fact table; they address how the data will be summarized &
analyzed.
Facts- quantitative info about business process, measurements,metrics etc eg. Sales volume, units
sold, customer retention rates, profit margins etc
Analysis of Data
OLAP- Online analytical processing
Online analytical processing, or OLAP, is an approach to answer multi-dimensional analytical
queries swiftly in computing.
OLTP- Online transaction processing

. It administers the day to day transaction of an organization such as ERP, CRM,
POS,SCM/
PG 140
Data modeling (data modelling) is the process of creating a data model for the
data to be stored in a database. This data model is a conceptual representation
of Data objects, the associations between different data objects, and the rules.
Data modeling helps in the visual representation of data and enforces business
rules, regulatory compliances, and government policies on the data. Data
Models ensure consistency in naming conventions, default values, semantics,
security while ensuring quality of the data.
1. Conceptual Data Model: This Data Model defines WHAT the system

contains. This model is typically created by Business stakeholders and
Data Architects. The purpose is to organize, scope and define business
concepts and rules.
2. Logical Data Model: Defines HOW the system should be implemented
regardless of the DBMS. This model is typically created by Data Architects
and Business Analysts. The purpose is to developed technical map of
rules and data structures.
Conceptual Data Model

A Conceptual Data Model is an organized view of database concepts and their
relationships. The purpose of creating a conceptual data model is to establish
entities, their attributes, and relationships. In this data modeling level, there is
hardly any detail available on the actual database structure. Business
stakeholders and data architects typically create a conceptual data model.
The 3 basic tenants of Conceptual Data Model are

 Entity: A real-world thing
 Attribute: Characteristics or properties of an entity
 Relationship: Dependency or association between two entities
Data model example:
 Customer and Product are two entities. Customer number and name are
attributes of the Customer entity
 Product name and price are attributes of product entity
 Sale is the relationship between the customer and product
Logical Data Model

The Logical Data Model is used to define the structure of data elements and to
set relationships between them. The logical data model adds further
information to the conceptual data model elements. The advantage of using a
Logical data model is to provide a foundation to form the base for the Physical
mode
Database Normalization
First normal form is about getting rid of redundancy
Table must be 2 dimensions
We cant have the same attribute in more than one column.

Same kind of data
2nd normal firm = 1nf + each column depends on the entire primary key
When data is normalized , it

exists in one and only one
source-of-truth location.
(1) There is no redundancy of
data (all data is stored in only
one place), and
(2) data dependencies are
logical (all related data items
are stored together).

Business Analytics Notes

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Business Analytics Notes

3 types of data warehouse:

2. Operational Data Store (ODS)

3. Enterprise Data warehouse

Data Architecture (refer to textbook)

Dimensional Modeling (DM) is a data structure technique optimized for data

OLTP- Online transaction processing

1. Conceptual Data Model: This Data Model defines WHAT the system

Conceptual Data Model

The 3 basic tenants of Conceptual Data Model are

Data model example:

Logical Data Model

First normal form is about getting rid of redundancy

Table must be 2 dimensions

We cant have the same attribute in more than one column.

When data is normalized , it

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