Rakhmetulaeva S.B.

PhD student

Kazakh Economic University named after T.Ryskulov

 

The use of OLAP technology as a tool

Business Intelligence

 

The main difference between the facts and information lies is that the data we receive and take note, while information can be used with advantage. In general the information is data which was analyzed and systematized. Depending on the time information receive many businesses can survive in conditions of financial crisis, and tough competition. It is not enough to gather the facts and to have all the necessary data. The most important is to analyze it. To facilitate the work of the people, who have to make important business decisions, there was invented various systems of supporting. With this purpose, there was developed various complex systems to analyze large amounts of disparate data and transform them into information useful for business users. New area of ​​business intelligence aimed at improving management processes of business systems, through using database and technology.

Market of information systems for business now offers a diverse selection of solutions that help an enterprise to organize managerial accounting, to ensure the operational management of production and marketing and to effectively interact with customers and suppliers [1].

Separate niche on market of business systems occupy analytical software products designed to support decision making at the strategic level of management. The main difference between such instruments and systems of operational control is that the latter provides management of company “in the mode of functioning”  that is run entirely certain of the production program, while the analysis of the strategic level to help guide the company to develop solutions “in the mode of development.”

The magnitude of the changes may be different from a deep restructuring to partial upgrade technologies at individual production sites, but in any case, decision makers consider alternatives to development, on which depends the fate of the enterprise in the long term.

It does not matter how powerful and well-developed nor was the information system of the enterprise, because it may not help in addressing these issues, firstly, the configured for fixed, established business processes, and secondly, there are not any information for decision-making regarding new areas of business, new technologies and new organizational solutions.

By data processing and analysis OLAP (On-Line Analytical Processing), any organization can almost instantly (within five seconds) obtain necessary data to work. OLAP can be defined briefly five key words.

FAST (Fast) - it means that the search and the issuance of the necessary information take less than five seconds. The most common requests are processed per second, and only a few complex requests are processing time more than twenty seconds. To achieve such result, people use various methods, from specific forms of data storage to extensive preliminary calculations. Thus, you can get a report in one minute which previously took days.

ANALYSIS (Analytical) means that the system can generate any analysis, both statistical and logical, and then stores it in an accessible form.

SHARED (Shared) means that the system provides the required confidentiality, even the level of the cell.

MULTIDIMENSIONAL (Multidimensional) is the main characteristic of OLAP. The system must fully support the hierarchy and multiple hierarchies, because it is most logical way to conduct an analysis of both business and organizational performance.

INFORMATION  (Information). The required information must be delivered to place where it is needed.

In  organization is always accumulate data related to the scope of its activities, which are sometimes stored in different places and work with them by bringing them together and not easy, and take a lot of time. Precisely in order to expedite the receipt of data for testing hypotheses emerging business and technology has been developed online analytical processing, or OLAP. The main purpose of OLAP - systems - quickly responds to arbitrary user queries. Such a need often arises in the development of an important business project when the developer needs arisen working hypothesis. Most often, the required user information should be presented in the form of some kind of addiction - for example, depends on sales of product category, sales by region, from the time of year and so on. Thanks OLAP he has the ability to immediately obtain the necessary data in the correct configuration for the selected period.

Interactive OLAP technology enables to transform the huge piles of reports and the mass of data into useful and accurate information, which is at the right time to help the employee to make an informed business or financial decision[2].

Also, thanks to increased efficiency of processing OLAP, and large amounts of sorted (aggregated) information, the user can get almost instantly. Thanks to the OLAP user can clearly see how effective his organization, which has the ability to react quickly and flexibly to external changes, has the ability to minimize the financial losses their organizations. OLAP provides accurate information that improves the quality of decisions.

The only drawback of business intelligence systems is their high cost. Creating a personal repository of information requires time and a lot of money.

The use of OLAP - technology in the business can quickly obtain the necessary information, which is defined by the user, can be represented in the usual form - reports, graphs or tables.

Procedures for the system integration business structures based on the use of joint solutions ERP, CRM and SCM. In many cases, systems are supplied by different manufacturers, and imported data must go through the harmonization of data and presentation in the form of heterogeneous data. The business environment is expected to-one requirement - a full analysis of the data, implying view consolidated reports from different points of view.
Different manufacturers have different reporting mechanisms. The procedure involves the extraction of heterogeneous representation, transformation and loading (ETL). For example, in Microsoft SQL Server 2005 Analysis Services, the problem of data consolidation is implemented using Data Source Views - types of data sources that describe the analytical model of representation[3].

Business applications based on OLAP technologies, examples of the products. The most frequently encountered following the application of OLAP technology:

Data Analysis.

Problem for which were originally used and still remain the most popular OLAP tools. Multidimensional data model, the ability to analyze large amounts of data and quick response to inquiries made such systems essential for the analysis of sales and marketing activities, distribution and other tasks with large amounts of raw data.

Examples of products: Microsoft Excel Pivot Tables, Microsoft Analysis Services, SAP BW, Oracle Essbase, Oracle OLAP, Cognos Power Play, Micro Strategy, Business Objects.

Financial planning, budgeting.

The multidimensional model can simultaneously enter data and easily analyze them (for example, the plan fact analysis). Therefore, a number of modern products of class CPM (Corporate Performance Management) using OLAP% of the model. An important task - multi-dimensional inverse calculation (back solve, break back, write back), allows you to calculate the required changes to the detailed cell when the aggregate value. It is a tool for analyzing "what-if» (what-if), ie to play various versions of events in planning.

Examples of products: Microsoft Performance Pint, Oracle EPB, Oracle OFA, Oracle Hyperion Planning, SAP SEM, Cognos Enterprise Planning, Geac.

Fiscal consolidation.

Consolidating data in accordance with international accounting standards, taking into account the share of ownership, different currencies, and internal circulation - an urgent task due to tighten the requirements of inspection bodies (SOX, Basel II) and the exit of companies in the IPO. OLAP technology can speed up the calculation of consolidated reporting and improve transparency of the process.

Examples of products: Oracle FCH, Oracle Hyperion FM, Cognos Controller.

Data Warehousing and On-Line Analytical Processing (OLAP) technology
are important elements in support of business decisions, which are increasingly becoming an integral part of any industry.
The use of OLAP technology as a tool for business intelligence gives you more control and timely access to strategic
information that facilitates effective decision-making.


This provides an opportunity to simulate real-world forecasts and more effective use of resources. OLAP enables the organization to respond more quickly to market demands.

 

References:

1.                  Erik Thomsen. OLAP Solutions: Building Multidimensional Information Systems Second Edition. Wiley Computer Publishing John Wiley & Sons, Inc., 2002.

2.                  OLAP council white paper, http://www.olapcouncil.org/research/whtpaply.htm

3.                  Gerd Stumme and Bernhard Ganter. Formal Concept Analysis _ Mathematical Foundations.