The Data Modelling Techniques for BI

The Data Modelling Techniques for BI

Business applications, data integration, data management, data warehousing and machine learning – they all have one common and essential component: a data model. Almost every critical business solution is based on a data model. May it be in the areas of online trading and point-of-sale, finance, product and customer management, business intelligence or IoT, without a suitable data model, business data simply has ZERO value!

 

Data models and methods for data modelling have been around since the beginning of the computer age. A data model will remain the basis for business applications for the foreseeable future. In the area of ​​data modelling, the basics of mapping complex business models are developed. In order to model data successfully, it is particularly important to understand the fundamentals and relationships between the individual topics and to reproduce them using examples. Data needs a structure, without it, it makes no sense and computers cannot process it as bits and bytes.

 

What is the business intelligence and why is it important?

 

The concept of business intelligence first appeared in the 1960s. Business intelligence, also known as BI, is a collective or generic term for the various sub-areas of business analytics, data mining, data infrastructure, data visualization and also data tools. In summary, BI analyses all the data generated by a business and makes reports, performance measures, and trends that helps management in decision making.

 

BI is essential when it comes to optimizing business processes and positioning yourself successfully for the future. As the goal of BI is to provide you with company data from all of your company areas, so can use it for the company’s efficiency & increase productivity and react to changes in the market. With business intelligence, you are able to identify and evaluate data and ultimately react to achieve goals.

 

Data modelling techniques – an overview

 

The following is an overview of the various data modelling techniques:

    • Flat data model: in this very simplest database model, all data is in a single two-dimensional table, consisting of columns and rows. Columns are assumed to have a similar types of values and in the row, elements are supposed to have relational value to one another.

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    • Hierarchical model: data is stored in a tree-like structure. Data is store in a root or top-level, directory that contains various other directories and files.

 

    • Network model: This model is very similar to the hierarchical model but the hierarchical tree is replaced by a graph. In this model, the records are connected to each other and their allocation takes place via a link table. In this manner, the hierarchy is maintained among the records.

 

    • Relational model: This model represents the database as a collection of relations. A relation is nothing but a table of values. A predicate collection over a fixed set of predicate variables, the possible values ​​or combinations of which are subject to restrictions.

 

    • Star schema model: A star schema is a database architecture model where one fact table references multiple dimension tables, optimized for use in a data warehouse or business intelligence.

 

    • Data Vault Model: Entries with long-term stored historical data from various data sources, which are arranged in and are related to the hub, satellite and link tables. At the core, it is a modern, agile way of designing and building efficient, effective Data Warehouses.

 

The role of Data Modelling & Prediction for Business Transformation

The role of Data Modelling & Prediction for Business Transformation

IT teams in small and medium-sized companies struggle with budget constraints and a shortage of skilled workers. When the demand for IT services increases, they are heavily overloaded and look for ways to increase efficiency. Additionally, organizations are reaching a point where their data storage and computing are unable to keep up with the growth of data and technological advancements.

 

As data, a critical asset for organizations continues to rise exponentially, business executives around the world are heavily investing in IT automation. Also, the digital transformation is pushing the boundaries, enticing businesses entities to invest in technologies that can predict possible outcomes, and to gain a competitive advantage. One of the emerging and appealing technology that businesses can benefit from in many ways is Predictive analytics. By definition, predictive analytics is a mathematical principle that uses algorithms and artificial intelligence (AI) to derive probabilities from historical and current data. It is currently one of the most important big data trends. The predictive analysis leverages statistical techniques such as predictive data modeling, machine learning, and even artificial intelligence to uncover patterns in big data.  It helps organizations to make data-driven decisions and get useful, business insights that can help them increase company profit.

 

It is a process that uses data mining and probability calculations to predict results. It includes the collection, analysis, and interpretation of data from various operational sources. The method uses structured and unstructured data, for example from internal and external IT systems (big data/data mining). Predictive Analytics collects this information using text mining, among other things, and combines it with elements of simulation processes. Thanks to machine learning, the algorithms automatically draw findings from their own data processing and use this as a basis to automatically develop predictions. The aim is to predict complex economic relationships and future developments based on the analysis of the existing data in order to make better decisions and gain a competitive advantage. Each model consists of a number of predictors, which are variables that can influence future results.

 
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The underlying software has become more accessible and user-friendly over time thanks to user interfaces that are suitable for specific departments. The goal is to identify trends, announce disruptive industry changes, and enable more data-driven decision-making. Such predictions serve to optimize the use of resources, save time and reduce costs. Optimized timelines for the introduction of new products or services can also be created. The models developed in the process are intended to help achieve or support the goals set.

 

Any area in which data is being collected is suitable for predictive analysis as there are many uses for it. These include detecting data misuse, improving cybersecurity, optimizing marketing programs, and improving business processes. Predictive analysis can use adaptive algorithms to examine systems, applications, and network performance by allowing companies to take a more proactive approach to IT operations management. With this technology, IT security experts can identify potential vulnerabilities, determine the likelihood of cyber-attacks and work on improving the company’s security structure.

 

Adapting to advanced analytics will allow your organization to stay on top. Just as technology is constantly innovating, so should companies adapt. Predictive analytics focuses on improving profitability, productivity and reducing costs through process optimization.

Do you have areas of the company in which you want to improve prediction/reporting?  If you answered yes, please contact us directly, our experts will gladly support you.

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