Professional Documents
Culture Documents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Chapter 1 An Introduction to Business Intelligence . . . . . . . . . . . . 5
Chapter 2 The Data Warehouse . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Chapter 3 The Basics of Business Analysis . . . . . . . . . . . . . . . . . . 35
Chapter 4 Advanced Business Analysis . . . . . . . . . . . . . . . . . . . . . 67
Chapter 5 Customer Intelligence . . . . . . . . . . . . . . . . . . . . . . . . . 91
Chapter 6 Business Intelligence and Value-Based Management . . . 103
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Introduction
Quid est Veritas?
—John 18:38
to particularly thank my wife, Ewa, and my son, Grześ, for the warmth
that is always there regardless of the weather. Many thanks for your
understanding when I annexed our kitchen table for a few months while
engrossed in my work on this book.
Enjoy the book and feel free to send your comments to jerzy.surma
@gmail.com.
Warsaw-Cambridge-Tyniec, summer 2010
CHAPTER 1
An Introduction to
Business Intelligence
1.1. The Origins of Business Intelligence
During the 1970s Herbert Simon, a Nobel Prize winner in econom-
ics, was developing his world-famous concept of bounded rationality.
He was certainly inspired by an interest in examining the cognitive
boundaries of a man following the disappointing results of his own tri-
als concerning the computer stimulation of human decision-making
processes.1 However, the intensive development of computer tech-
nologies gave him great hope for building systems to support human
activities related to thinking and rational behavior. Those hopes were at
least partly fulfilled thanks to the development of business intelligence
(BI)—that is, a system that supports managerial decision making in
enterprise management in the broadest sense of this word. A distinctive
feature of BI is its powerful pragmatism: Out of the broad spectrum of
technologies, only those that can be applied to business are selected.
The four fundamental sources of information for BI and its tools are
as follows:
It should be stressed that at the moment BI is only applied to the first and
the second category. The third category is definitely the most interest-
ing one. At present, trials are being conducted in the application of BI
methods as solutions for this type of problem. In order to understand the
complexity of this issue, let us look at Table 1.1, which describes well-
and ill-structured problems.
In formal terms, managerial tasks are decision processes, by which
a decision means the selection of one possibility from a set of possible
solutions. A BI system can generally support managerial decisions in the
following ways (see Figure 1.1):
Source: author.
AN INTRODUCTION TO BUSINESS INTELLIGENCE 11
Recommended Literature
Statistics
Aczel, A. (2005). Complete business statistics (6th ed.). New York, NY: McGraw-Hill.
Operations Research
Taha, A. H. (2010). Operations research: An introduction (9th ed.). New York,
NY: Prentice Hall.
Artificial Intelligence
Nilsson, N. (1998). Artificial intelligence: A new synthesis. San Francisco, CA:
Morgan Kaufmann.
Russel, J., & Norvig, P. (2002). Artificial intelligence (2nd ed.). Upper Saddle
River, NJ: Prentice Hall.
Database Systems
Connolly, T. M., & Begg, C. E. (2004). Database systems: A practical approach to
design, implementation and management. (4th ed.). Reading, MA: Addison Wesley.
Ullman, J. D., & Widom, J. (2007). First course in database systems. (3rd ed.).
Upper Saddle River, NJ: Prentice Hall.
Internet Resources
“Business Intelligence” on Wikipedia. http://en.wikipedia.org/wiki/Business
_intelligence
The Data Warehousing Institute. http://tdwi.org/
BeyeNETWORK. http://b-eye-network.com/