Support of Decision Making by Business Intelligence Tools

Milena Tvrdkov Department of Applied Informatics, VB-Technical University Ostrava Sokolsk tda 33. Ostrava 1, 701 21 Czech Republic E-mail: milena.tvrdikova@vsb.cz Abstract
Issues of business intelligence applications are
discussed. Main parts of business intelligence tools are briefly described. The attention is paid to the data warehouses and to a new tool in this field, to the operational data stores. These technologies enable to get the data of first-rate quality. Some new features of operational data stores applications are proposed. The role of users in the design of metadata is explained and its influence on the efficiency of information systems is emphasized. Business intelligence tools are the necessary conditions for applications of data mining, an efficient tool for getting new information from large datasets.

2. BI applications
Executive Information Systems (EIS), Customer relationship management (CRM) and Corporate Performance Management (CPM) belong among most important BI applications [15]. The applications use the multidimensional data store enabling to change quickly and flexibly individual dimensions, see Figure 1. Thus, user's view of economic reality is modified. The multidimensional data store is carried out on metadata superstructure based on the relational tables. Metadata assign lines and columns of relational databases to individual dimensions and cells in n-dimensional table. Metadata also include rules of data aggregation on individual levels of defined dimensions. This is the principle of on-line analytic data processing (OLAP) technology, see Figure 2 [13]. The OLAP technology makes the response to changes in view definitions almost immediate in most cases. The delay due to the necessary expansion of multidimensional data appears in rare situations only, e.g. in the case extensive hierarchical complexity of dimensions or in the case of increasing number of dimensions resulting in sparse data.

1. Introduction
Having sufficient amount of information has become a key factor of success in all fields of human activity. The information integrated from various sources and adjusted to certain level of detail is required for the support of decision making process [3]. Amount and structure of sources can change in time and the level of detail is various as well. It is necessary to ensure firstrate information correspondence with reality, completeness and to deliver it to the end user in proper time. In order to fulfill such demands, Business Intelligence (BI) solutions have been implemented in companies and institutions recently [4]. Application of BI tools was connected with data warehouse as a necessary prerequisite for the data mining. Nowadays, new technology called the operational data store is available [10]. Both the technologies enable to get the data of first-rate quality. Some new features of operational data stores applications are proposed. The role of users in the design of metadata is explained and its influence on the efficiency of information systems is emphasized.

2.1. EIS characteristics

Executive Information Systems are capable to transform considerable volumes of primary data, generated by basic company processes, into logic structures which represent the managing and decision-making processes in company [15]. Basic EIS application characteristics: multidimensional concept and data handling, obtaining of relevant data from heterogeneous data sources, tool of databases selection for OLAP and direct access to external data, advanced analytical methods, transparent organization of inner data and capability of integration with other tools, client/server architecture, support of multi-user operations (parallel access, integration and operation safety).

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SUPERSPACE DIMENSIONS (goods, customers, regions, analyses)

TIME

Dimension 1 = period, horizontal axis Dimension 2 = variable, vertical axis Dimension 3 and more = viewpoints

ECONOMIC INDICATORS
Fig.1. Multidimensional matrix Data cube

Special features of EIS application consists of: effective processing of sparse matrices, (OLAP analysis ignores missing values regardless their source), processing of non-standardized data and distinguishing missing and zero value, dimension management generic dimensionality, (functions supplied additionally must work for any dimension), cross-dimensional operations for all defined dimensions, survey features flexible reporting. EIS multidimensionality enables to create new views of data placed in new relations quickly and simply to search for trend characteristics to find key indicators of deviations from planned values, to work with history and to anticipate future development.

2.2. CRM and CPM characteristics

Briefly, CRM can be considered as a way of companys manners towards its customers, it is a strategy aimed to satisfaction of customer needs [9]. CRM exploits the information contained in company information systems and processes it with the respect to customer characteristics. CRM effectiveness depends on the ability to gather data from different customer channels, evaluate these data and modify them into new business processes influencing interaction with customer [18].

CRM systems are usually structured into operational and analytic parts. Analytic part of CRM represents the analytical processing including the data from data warehouses. According to the result, business operations are optimized and a new strategy of the company is proposed. Operational part of CRM executes predefined business operations. It includes the interaction with customers through various channels: Call Centre, electronic channels, e-mail exchange and traditional management of sales points [7]. Corporate Performance Management (CPM) is based on the idea of BI tools integration into the support of company planning. All the methodologies, methods and information tools needed to monitoring and managing the performance of company or an institution are parts of CPM. Process activities of CPM usually involve [11]: modeling creates a model of a company, describes all connections and causal relations of company processes, planning gives a new vision, strategic plans and goals of a new model, budgeting transforms plans into individual parts of business in operational form, monitoring focuses on Key Factors of Success (Balance Scorecard), analysis reveals unknown trends and relations, hidden potentials and reserves,

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Personal data

Accounting data

Orders data

SQL(OLTP) Transaction process

SQL(OLTP) Transaction process

SQL(OLTP) Transaction process

Data Warehouse (SQL)

Multidimensional (OLAP)

External data

Standard outputs Store balance History of supplier Customers listing

Application of BI Fiscal sheets and scheduling Sale and marketing analysis Analysis of profit of company

Fig.2. OLAP technology, complex solution - support of decision making, called also Business Intelligence

reporting provides systematic outputs for further decision making, adjusting of plans based on monitoring and analyses.

3. Data warehouse
A successful company needs to have an overview of basic information related to customer, product and performance. The simplest solution is to place information in one location and use it from this location for further analyses and reporting. Such solutions are known as the data warehouse (DW). Metadata layer
Source data layer Data transformation layer Data Reporting warehouse layer layer

Operations layer
Fig.3. Components of a data warehouse

Data warehouse forms an infrastructure for BI applications. Data warehouse is long-term store, where data gathered through classic information systems are cumulated in individual loads. Data from DW are never erased, but some data may be aggregated or deposit on external media. DW sources can be diversified data can be stored in different structures or formats, they can have a different recording philosophy or can be stored on various media [5]. Data warehouses operate on the principle of three steps: Extracting (capability of gathering data from different sources), transforming (sequence of operations giving data ready to load into data warehouse), loading (data are put into the physical space of data warehouse, where they are ready for data mining). This principle of three steps is often denoted as ETL. There are two leading concepts of Data Warehousing architecture, namely independent data marts (virtual DW) and integrated DW. Independent data marts are autonomous data stores for individual applications or their parts. Their disadvantages are possible inconsistency of individual stores and complicated loading processes. Integrated data warehouse is centralized data storage, where consistency is guaranteed by the transformation [6], see ETL.

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Data Warehouse features integration of data from different sources into single system, recording the history of several years, data are stored at different levels of summarization, data are periodically loaded from operative information systems, users only read data, data are clustered according to individual needs.

of operational decisions or day to day company or institution routine, such solution is insufficient. Therefore, central store concept processing key data in real time was created and it is finding its way to commercial use.

4.1. Data quality

Data quality is one of basic ODS characteristics. Data quality can be defined in several ways, for our purposes we will use simple intuitive definition data of a good quality (first-rate data) correspond with reality, they are complete and consistent. To work with first-rate data, we must ensure four basic features of data: completeness missing or useless data must be, identified compatibility (standardization) all data correspond to required format, consistency no data items contain values that represent conflicting situations, integrity all data items have fully defined relations to other data items. Importance of data quality grew in connection with data warehouses application, when the occurrence of inconsistent, conflicting and non-compatible data from different sources is more frequent [2].

4. Operational data store

Operational data store (ODS) was proposed to integrate selected data in real time [10]. Real-time data processing is not the only goal that data stores are able to provide. ODS also performs other operations in order to secure data quality and integrates relevant data from other systems at the same time. Current applications have a lack of some features that are useful and relatively easily to implement. The following recommendations can be proposed: To store only a selected set of data derived from - significance to process data of the main importance, - necessity for data quality to integrate data from various company information systems, To choose the proper frequency of ODS updating ODS is located in system transactional layer and the frequency should be a compromise between time demand of updating and permanent changes in systems, To prepare complete and detailed metadata Individual data elements should be clearly and specifically described on operational data store level. To focus on the application of efficient tools for data transfer The application of EII tools (Enterprise Information Integration) instead of mostly used EAI (Enterprise Application Integration) technology and seldom used ETL technology is promising in future. It is obvious from the architecture and the principles described above that ODS applications find their use wherever exist fragmented sources of key data which need centralized administration in order to ensure synchronizations, accessibility and accuracy. Centrally stored key data ensure: quality support of decision-making processes, quicker data acquisition, increased productivity of executive company/institution units, fulfilling of regulatory demands. Data warehouse, as a basic BI construction unit, integrates data from information systems, however, data are integrated in time periods, typically days, less frequently weeks or months. This is adequate for support of tactical or strategic decision making. In cases
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4.2. Metadata
First-rate data represent essential part of any modern information system (IS). Another indispensable part of IS is a description of its content, way in which the content was created and the way how the content of IS is used. This description is called metadata (data about data). Metadata make information meaningful. Importance of metadata as a necessary description of IS content has grown considerably in recent time. Primary reason for metadata is that they provide context to accumulation of information fragments, because without this context the accumulation becomes non-systematic. Metadata can be divided to two main groups: technical metadata that is information about setup of individual information systems and corresponding technical processes, attributive metadata information about attributes of a solution, that is addition of context and meaning to data items (the way of understanding in organization, calculating the values). Users of information systems suppose that design of metadata is the matter of supplier. However, providing the good description of data (attributive metadata) is great task for the users. User knows the meaning and structure of data in best way. The shift of responsibility for data quality and their description to the users makes the information systems more effective.

5. Conclusion
BI tools support acquiring, administering, sharing and providing first-rate data. By incorporating BI solution to integrated information systems we achieve benefit [8]: simpler and more quality work of all units involved in decision-making process at all organizational levels, greater believe of user into reliability of data, higher effectiveness of supportive units resulting in development of new solutions. Data warehouse or operational data store are Business Intelligence tools necessary for data mining. Data mining makes possible the search for relationships among the data in large datasets. The fact that data mining is capable to reveal relations previously unknown distinguish the data mining from most methods of computer data analysis. Information technologies described above increase the data quality and integrate data sources. BI tools bring the desired effect transformation of data into information and information into knowledge [5].
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