Business Intelligence concepts

1. CRM (Customer Relationship Management) Customer Relationship Management

CRM is used by enterprises to manage relationships with customers. In different scenarios, CRM may be a management term, a software system, and usually referred to as CRM, it is a software system that uses computers to analyze sales, marketing, customer service, application support, and other processes. It aims to reduce sales cycles and costs, increase revenue, find new markets and channels needed to expand the business, and increase the value, satisfaction, profitability and loyalty of customers. CRM is a business strategy for choosing and managing valuable customers and their relationships. CRM requires a customer-centric corporate culture to support effective marketing, sales, and service processes.

Its analysis indicators include:

Customer Profile Analysis (Profiling), including customer levels, risks, hobbies, and habits;

Customer Loyalty analysis (Persistency) refers to the customer's loyalty to a product or business organization, persistence, changes, and so on;

Customer profit analysis (Profitability) refers to the marginal profit, total profit, and net profit of products consumed by different customers;

Customer Performance Analysis (Performance) refers to the sales of products consumed by different customers by type, channel, sales location, and other indicators; customer future analysis (Prospecting) including the future development trend of the number and category of customers and the means to win customers;

Customer Product analysis, including Product design, relevance, and supply chain;

Customer Promotion analysis (Promotion), including the management of advertising, publicity and other promotional activities.

Three steps to implement the CRM project

① Application business integration. Integrate independent market management, sales management, and after-sales services to provide a unified operating platform. Integrate and share data from multiple channels. The implementation of this step allows system users to obtain loyal records of various types of data in the system, representing the current real business situation.

② Business data analysis. The process, processing and analysis of data in the CRM system will greatly benefit the Enterprise. Data analysis can be performed using OLAP to generate various types of reports. You can also use the Business Information Warehouse processing method to further process and mine data, analyzes the associations between various data indicators and establishes a correlated data model for simulation and prediction. The results obtained in this step will be very important. It not only reflects the current business situation, but also provides guidance for future business plan adjustment.

③ Decision execution. Based on the predictable Analysis Report provided by data analysis, enterprises can summarize and use the knowledge they have learned in the business process, and make adjustments to the business process and business plan. Through adjustment, we can enhance contact with customers and make business operations more suitable for market requirements.

2. ERP (Enterprise Resource Planning) Enterprise Resource Planning
An enterprise information management system that integrates material resources, capital resources, and information resources for the manufacturing industry. Through ERP, enterprises can use computers to automate management of their capital, goods, personnel and information resources, including manufacturing, office operations, supply chain management, human resource management, and project management, financial and management, customer service, sales and marketing, and other commercial functions. Enterprise resource planning is of great significance for enterprises to popularize computer-aided Management, realize enterprise management informationization and automation, improve work efficiency and enhance quick response capability.

3. SCM (Supply Chain Management) Supply Chain Management

It plans, schedules, allocates, controls, and uses various materials, funds, information, and other resources in each supply link based on core enterprises through information means, the entire function of the entire supply process of users, retailers, distributors, manufacturers, and procurement suppliers is formed. It is the management of the enterprise's supply chain. It is the management of supply, demand, raw material procurement, market, production, inventory, orders, distribution and delivery, etc, it includes every step from production to delivery, from suppliers to customers.

4. OLAP (On-Line Analytical Processing) Online Analytical Processing

It is a technology used to organize large business databases and support business intelligence. OLAP databases are divided into one or more cubes. Each cube is organized and designed by the cube administrator to meet users' needs for data retrieval and analysis, this makes it easier to create and use the required pivot tables and data perspectives.

5. OLTP (on-line transaction processing) online transaction processing

It is also known as a transaction-oriented processing system. Its basic feature is that the customer's raw data can be immediately transmitted to the Computing Center for processing and the processing results can be provided in a short time. The biggest advantage of this is that it can process the input data in real time and respond in a timely manner.

OLTP databases generally have the following features:

Supports regular addition and modification of data by a large number of concurrent users;

Reflects the changing unit status at any time, but does not save its historical records;

Contains a large amount of data, including a large amount of data used to verify transactions;

Complex structure;

Can be optimized to respond to transaction activities;

Provides technical infrastructure to support the daily operations of the Organization;

Individual transactions can be completed quickly and only need to access a relatively small amount of data. The OLTP system is designed to process hundreds of transactions simultaneously.

The following table lists the comparison between OLTP and OLAP.

OLTP OLAP User Operator and lower-level management personnel Decision makers and senior management personnel Function Routine operations Analysis and decision-making DB Design Application-oriented Subject-oriented Data Current, latest, and two-dimensional discrete Historical, aggregated, multi-dimensional, and unified Access Read/write dozens of records Read millions of records Work Unit Simple transactions Complex Query Number of users Thousands Hundreds DB size 100MB-GB 100GB-TB