INTRODUCTION

TO
BUSINESS ANALYTICS
IBM 2201

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BA Optimization support for
decision making
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2 Overview

 This unit introduces the concept of Business Analysis and

Optimization and provides an understanding of role of Business
Analysis in Business Optimization. It gives an glimpse of the
reference architecture in Business Analytics
 Optimization further extends the power of analytics by helping
decision makers handle the difficult trade-offs that arise when
limited resources force choices among alternative options.
 Optimization provides better decision-making when there are an
overwhelming number of factors to consider with complex inter-
relationships among them.

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 2 Objectives
 Get an overview of Business Optimization that covers:
 Identify basics of analytics
 Understand the role of analytics in business optimization
 Describe the advantages of optimization
 Understand BAMaturity Model
 Explain reference architecture
 Understand the use of reference architecture in business analytics
4 Introduction to BAO

 Analytics reveals hidden patterns in the data, answering

previously unidentified questions.

 Optimization further extends the power of analytics by helping

decision makers handle the difficult trade-offs that arise when
limited resources force choices among alternative options.

 Optimization provides better decision-making when there are an

overwhelming number of factors to consider with complex inter-
relationships among them.

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5 Challenges - Volume, Variety (Diversity), and speed of Data
Creation

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 6 Enterprise Analytics Capabilities
• The infrastructure is created for enterprise-wide analytics
• Analytics are key to business success
• Transformations is Brought about by opportunity or necessity
• For BI-based organizations, the use of BI/analytics is a
requirement for successfully competing in the marketplace.

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7 IBM Business Analytics Maturity
Model

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8 Optimization

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9 Essential BAO Capabilities:

 Trusted information
 Reporting and analysis
 Business performance management
 Predictive analysis and mining
 Real-time analytics
 Business rules (process) integration

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 BAO Capabilities: Business
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Performance Management

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11 Successful use of analytics to support
decision-making depends on several other
capabilities:

 Decision makers need decision support

 Decision makers need good decisions
 Decision makers need organizational decision
processes
 Decision makers need to respect the people and
processes of the organization

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12 Value of BAO to Organizations
 Identify and analyze meaningful patterns and correlations in
complex, structured, or unstructured data, which is often too complex
for humans to conceptualize.

 Use relationships that link decisions and potential outcomes to each

other, determining the best set of interrelated decisions.

 Conduct business simulations by modifying input parameters in what-if

mode.

 Examine and choose from numerous options to select the best choices
that also satisfy constraints due to resource limits, business policies,
and government regulations.

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13 What can analytics mean to
business?
 By using analytics, following objectives can be achieved:
 Understand your business drivers
 Predict competitors’ responses with accuracy
 Identify latent market demand to develop products to meet it
 Determine the likelihood that a specific event will happen, so that you can
take action accordingly
 Plan or schedule activities that meet your customers’ needs, minimize your
costs, and use your resources effectively

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14 High level architecture of BAO
 By working to plan an information agenda, master information, and apply business
analytics, organizations can take advantage of the following areas:
• Information management
• Enterprise Content Management (ECM)
• Business analytics technology
• Expertise to confidently understand, predict, plan, and act to optimize business outcomes
 BAO uses information to enable enterprise transformation and creates sustainable
differentiation by using the following tools:
• Advanced information management and analytical services
• Deep industry and domain expertise
• World-class solutions required to address complex business
• Societal opportunities across an entity’s entire value chain

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 15 Importance of reference
architecture

A reference architecture defines the

checklist of components that typically make up a BAO
solution.

It provides a common solution

framework for BAO across all
sectors, industries, and solutions areas.

ith multiple reference

architectures, it is critical to develop a
common language and method as a way to collect thought leadership and assets over time.

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16 BAO reference architecture

© Copyright IBM Corporation 2017

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17 BAO reference Architecture
 Information management solutions manage,
store, and deliver trusted information
throughout your information supply chain.
Information management supports the following
key capabilities:
 Content management
 Master data management
 Data integration
 Data repositories

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18 BAO reference Architecture
 Smarter Analytics provides broad analytics capabilities
that consist of the following software:
 Business intelligence and performance monitoring

 Advanced analytics
 Advanced analytics typically consists of various
technological components that are destined to
meet specific needs:
 Predictive analytics
 Prescriptive analytics
 Descriptive analytics
 Simulation
‹#› Text analytics
 Visualization
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BAO reference Architecture
 The Results/Access pillar provides the mechanisms
for the user and the enterprise environment to take
advantage of the results of the analysis
 Enterprise Environment
 BPM
 Service Management
 Information governance
 Collaboration
 Security, privacy and compliance
 Transport and delivery
 Infrastructure
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20 BAO reference architecture to
Architects
 The BAO reference architecture generates a clear,
consistent description of the architectural components that
are needed to leverage data effectively in information
solutions.

 A BAO architect uses a reference architecture to arrive at a

possible architectural solution, similar to the way that ships
use their navigational system to charter through unknown
areas to reach their destination.

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 Summary

 You have been introduced to

 The concept of Optimization
 The Challenges and Enterprise Needs
 The Value and contribution of BAO to enterprises
 BAO reference Architecture and the components