Showing posts with label analytics. Show all posts
Showing posts with label analytics. Show all posts

15 March 2025

💫🗒️ERP Systems: Microsoft Dynamics 365's Business Performance Analytics (BPA) [notes]

Disclaimer: This is work in progress intended to consolidate information from the various sources and not to provide a complete overview of all the features. Please refer to the documentation for a complete overview!

Last updated: 15-Mar-2025

[Dynamics 365] Business Performance Analytics (BPA)

  • {def} centralized reporting hub within D365 F&O designed to streamline insights and help organizations make faster, data driven decisions [3]
    • solution designed to transform organization's data into actionable insights [1]
    • provides an intuitive out-of-box data model along with familiar tools like Microsoft Excel and Power BI for self-service analytics [4]
      • data extracted from D365 is classified in BPA in the form of value chains
        • ⇐ a group of business processes on top of the value chain [4]
  • {benefit} allows to simplify data insights by providing a unified view of business data across entities in near real time [4]
  • {benefit} allows to streamline financial and operations reporting to reduce the cycle times [4]
  • {benefit} allows users of all technical abilities to quickly access and analyze data to facilitate data driven decisions [4]
  • {benefit} provides auditors with direct access to financial data, making the audit process more efficient
  • {benefit} enables ease of use through familiar apps like Excel and Power BI, in addition to AI driven insights and automation in this platform that can be scalable and extendable [4]
  • {feature} extends into Microsoft Fabric
    • {benefit} provide a scalable, secure environment for handling large data sets and ensuring insights are always powered by the latest technology [3]
  • {feature} ETL process 
    • involves extracting data from finance and operations database, transforming and loading it into Dataverse [4]
      • each of the entities required for the generation of the dimensional model for the value chains that were mentioned earlier, they are backed by the underlying tables in finance and operations database [4]
    • installed in Dataverse, virtual  entities that are created will then pull in the data into the managed data lake [4]
    • the data is then transformed to generate the dimensional  model which is then pushed into the embedded Power BI workspace in the form of analytical tables [4]
    • BPA consumes this data from Power BI workspace to render the power BI reports [4]
    • this data can also be extended to Fabric if there is a need to consolidate data from multiple sources [4]
  • {feature} reports 
    • designed to provide a detailed overview of an organization's financial health [8]
    • further reports will be added to expand the coverage for the value chains [8]
    • out-of-box reports can't be modified
      • ⇐ users cannot rename, delete or edit these type of reports [8]
      • there’s the option to duplicate the base report and edit the version thus created [8]
    • can be shared with other users who have access to BPA 
      • ⇐ they can receive an in-app notification [8]
      • can be shared over email with another user by entering user’s email address [8] 
      • one can configure whether the recipient can edit or view the report [8]
    •   {feature} allows to create a new Power BI or Excel report from scratch [8]
      • {option} start with a blank report or duplicate an existing report [8]
  • {feature} data refresh
    • automatic data refreshes run currently two times a day [4]
      • at 12:00 AM and 12:00 PM UTC
      • the volume of data is also constrained by the storage capacity of the A3 SKU for Power BI Embedded [1]
        • future release, may support additional data reporting capacity [1]
          • ⇐ so that larger data sets can be reported and analyzed [1]
      • the target is to have refreshes every hour or less [3]
    • data volume will be initially for about eight quarters of data [4]
    • extensibility will be supported with bring your own Fabric [4]
  • architecture
    • SaaS solution
      • {capability} immediate deployment 
        • businesses can start to analyze data and generate insights with minimal setup [1]
      • {capability} comprehensive reporting and dashboards
        • provides access to a wide range of preconfigured reports that cover multiple business functions [1]
      • {capability} near-real-time analytics 
        • future releases will offer more frequent data refreshes to enable near-real-time data analysis and reporting
      • {capability} predictive insights 
        • future releases will introduce predictive analytics capabilities that enable businesses to 
          • forecast trends
          • identify risks
          • seize opportunities [1]
      • {capability} user-friendly interface 
        • intuitive design ⇒ minimal training
          • fosters broader adoption 
          • enables a data-driven culture across the organization [1]
      • {capability} cost-effectiveness
        • available as part of D365 license
          • ⇒ provides advanced analytics without requiring significant investments in IT infrastructure [1]
    • DaaS solution
      • {capability} organizations can integrate its data models with their existing data warehousing infrastructure in Microsoft Fabric [1]
        • maximizes the value of existing data solutions [1]
        • positions businesses for future enhancements [1]
      • {capability} unified and scalable data models
        • customers can build custom models on top of a unified framework
          • ensures consistency and scalability across data sets [1]
      • {capability} future-proofing with automatic upgrades
        • data models integrate seamlessly with future D365 updates
          • reduces manual maintenance and ensures access to the latest features [1]
      • {capability} consistency and standardization
        • data models provide consistency and standardization across data sources
          • ensure high data quality and integrity [1]
      • {capability} advanced analytics and AI 
        • by customizing the data models, organizations can take advantage of advanced analytics and AI capabilities [1]
          • deeper insights without having to develop them from scratch [1]
      • {capability} enhanced data governance
        • unified data models support better data governance by providing standardized data definitions, relationships, and hierarchies [1]
          • ensure consistency and quality across the organization [1]
    • requires an integrated Power Platform environment [5]
      • must be integrated with the Microsoft Entra tenant [5]
    • uses shared Dataverse entitlements [1]
      • includes access to the data lake [1]
  • setup
    • dimensions
      • the selection of dimensions might affect the dimension groups that are created using these dimensions and the users who are assigned there [7]
        • e.g. legal entity, business unit
    • dimension groups
      • users can select specific values for the legal entity, or add a range of values [7]
        • selecting an invalid combination of dimension values, the dimension group will filter out all the records on the report [7]
      • {warning} assigning too many dimension groups to a user, slows the load for that user [7]
    • roles
      • determine which reports the user can access [7]
  • security
    • secure data through role-based access control on top of the value chains [7]
    • the first user who signs into the app is assigned the BPA admin role [7]
      • allows a user to access the administrator section of the BPA [7]
        • where the security can be set up [7]
      • has automatically assigned 
        • Microsoft report viewer role 
        • the All Access Dimension group [7]
          • allow the admin to see the data  in all the reports across all the dimensions [7]
    • {feature} dimension-based role-level security
      • ensures that users only see the data relevant to them based on their role
        •  confidently share reports without duplicating them
          • ⇐ data is automatically filtered by organization's security policies [3]
      • simple but powerful way to maintain control while providing access for teams that love working in Excel [3]
  • accessibility
    • can be accessed through either 
      • Power Platform
        • admins can access BPA app through PowerApps' makeup portal [6]
      • Dynamics 365
        • through the BPA preview shortcut in the homepage or the default dashboard [6]
        • for end users, the BPA preview shortcut is provided when they have certain duties associated to their role(s) [6]
  • licensing
    • included in D365 F&O license [4]
  • requirements
    • requires a tier two environment and Dynamics 365 finance version 1.0.38 or later [5]
  • {project} timeline
    • [2025 wave 1] backup and restore custom reports and analytics
      • {benefit} support better lifecycle management and empower customers to develop on sandbox instances before publishing to production [3]
    • 2025: available in all regions where F&O is available [3]
    • Oct-2024: GA

References:
[1] Microsoft Learn (2024) Dynamics 365 Finance: What is Business performance analytics? [link]
[2] Microsoft Learn (2025) Business performance analytics (BPA) with Dynamics 365 Finance [link]
[3] Dynamics 365 Finance - Business Performance Analytics 2025 Release Wave 1 Release Highlights [link]
[4] Dynamics 365 Community (2024) Dynamics 365 Bites: Business Performance Analytics Part 1 [link]
[5] Dynamics 365 Community (2024) Dynamics 365 Bites: Business Performance Analytics Part 2 [link]
[6] Dynamics 365 Community (2024) Dynamics 365 Bites: Business Performance Analytics Part 3 [link]
[7] Dynamics 365 Community (2024) Dynamics 365 Bites: Business Performance Analytics Part 4 [link]   
[8] Dynamics 365 Community (2024) Dynamics 365 Bites: Business Performance Analytics Part 5 [link]
[9] Microsoft Learn (2024) Dynamics 365: Business performance analytics introduction [link

Acronyms:
AI - Artificial Intelligence
BPA - Business Performance Analytics
D365 F&O - Dynamics 365 for Finance and Operations
DaaS - Data-as-a-Service
ETL - Extract, Transfer, Load
GA - General Availability
MF - Microsoft Fabric
PP - Public Preview
SaaS - Software-as-a-Service
SKU - Stock Keeping Unit
UTC - Coordinated Universal Time

13 February 2025

🏭💠🗒️Microsoft Fabric: SQL Analytics Endpoint [Notes]

Disclaimer: This is work in progress intended to consolidate information from various sources for learning purposes. For the latest information please consult the documentation (see the links below)! 

Last updated: 12-Feb-2024

[Microsoft Fabric] SQL Analytics Endpoint

  • {def} a service that listens actively for requests providing a SQL-based experience for lakehouse Delta tables [1]
    • enables to query data in the lakehouse using T-SQL language and TDS protocol [1]
    • created by default for each lakehouses and mirrored databases provisioned in a workspace
      • every lakehouse has one SQL analytics endpoint [1]
    • manages the automatically generated tables so the workspace users can't modify them [1]
  • {feature} a background process is responsible for 
    • scanning lakehouse for changes [1]
      • automatically generates a table in the appropriate schema for every Delta table in the Lakehouse
        • tables are created with a minor delay [1]
        • data is refreshed automatically
          • the amount of time it takes to refresh the table is related to how optimized the Delta tables are [1]
        • {alternative} one can manually force a refresh of the automatic metadata scanning in the Fabric portal [1]
    • keeping SQL analytics endpoint up-to-date for all the changes committed to lakehouses in a workspace [1]
      • {characteristic} transparently managed
        • ⇐ the sync process is transparently managed by Microsoft Fabric platform [1]
        • when a change is detected in the lakehouse
          • a background process updates metadata [1]
          • the SQL analytics endpoint reflects the changes committed to lakehouse tables [1]
      • {characteristic} low latency
        • under normal operating conditions, the lag between a lakehouse and SQL analytics endpoint is less than one minute [1]
        • the actual length of time can vary from a few seconds to minutes [1]
      • the metadata synchronization is automatically triggered when the SQL Endpoint is opened [3]
        • ensures the SQL Analytics Endpoint remains up to date without the need for manual syncs [3]
          •  ⇐ provides a seamless experience [3]
  • {feature} can be enriched by adding database objects
    • schemas
    • views
    • procedures
    • other database objects
  • {feature} automatic metadata discovery
    • tracks changes committed to lakehouses [1]
      • is a single instance per Fabric workspace [1]
      • {issue} increased latency for changes to sync between lakehouses and SQL analytics endpoint, it could be due to large number of lakehouses in one workspace [1]
        • {resolution} migrate each lakehouse to a separate workspace [1]
          • allows automatic metadata discovery to scale [1]
      • {issue} changes committed to a lakehouse are not visible in the associated SQL analytics endpoint
        • create a new table in the  [1]
        • many committed rows may not be visible in the endpoint [1]
        • ⇐ may be impacted by ETL processing that generate large volumes of changes
        • {recommendation} initiate an on-demand metadata sync, triggered from the SQL query editor Refresh ribbon option [1]
          • forces an on-demand metadata sync, rather than waiting on the background metadata sync to finish [1]
      • {issue} if there's no maintenance scheduled for the parquet files, this can result in read overhead and this impacts time it takes to sync changes to SQL analytics endpoint [1]
        • {recommendation}schedule regular lakehouse table maintenance operations [1]
      • {limitation} not all Delta features are understood by the automatic sync process [1]
  • {feature} endpoint reprovisioning
    • if the initial provisioning attempt fails, users have the option to try again [2]
      • ⇐ without the need to create an entirely new lakehouse [2]
      • {benefit} empowers users to self-mitigate provisioning issues in convenient way in the UI avoiding the need for complete lakehouse re-creation [2]

References:
[1] Microsoft Learn (2024) Microsoft Fabric: SQL analytics endpoint performance considerations [link]
[2] Microsoft Learn (2024) Microsoft Fabric: What is the SQL analytics endpoint for a lakehouse? [link]
[3] Microsoft Learn (2024) Microsoft Fabric: What’s new in the Fabric SQL Analytics Endpoint? [link]

Resources:
[R1] Microsoft Learn (2025) Fabric: What's new in Microsoft Fabric? [link]

18 April 2023

📊Graphical Representation: Graphics We Live By I (The Analytics Marathon)

Graphical Representation
Graphical Representation Series

In a diagram adapted from an older article [1], Brent Dykes, the author of "Effective Data Storytelling" [2], makes a parallel between Data Analytics and marathon running, considering that an organization must pass through the depicted milestones, the percentages representing how many organizations reach the respective milestones:



It's a nice visualization and the metaphor makes sense given that running a marathon requires a long-term strategy to address the gaps between the current and targeted physical/mental form and skillset required to run a marathon, respectively for approaching a set of marathons and each course individually. Similarly, implementing a Data Analytics initiative requires a Data Strategy supposed to address the gaps existing between current and targeted state of art, respectively the many projects run to reach organization's goals. 

It makes sense, isn't it? On the other side the devil lies in details and frankly the diagram raises several questions when is compared with practices and processes existing in organizations. This doesn't mean that the diagram is wrong, just that it doesn't seem to reflect entirely the reality. 

The percentages represent author's perception of how many organizations reach the respective milestones, probably in an repeatable manner (as there are several projects). Thus, only 10% have a data strategy, 100% collect data, 80% of them prepare the data, while at the opposite side only 15% communicate insight, respectively 5% act on information.

Considering only the milestones the diagram looks like a funnel and a capability maturity model (CMM). Typically, the CMMs are more complex than this, evolving with technologies' capabilities. All the mentioned milestones have a set of capabilities that increase in complexity and that usually help differentiated organization's maturity. Therefore, the model seems too simple for an actual categorization.  

Typically, data collection has a specific scope resuming to surveys, interviews and/or research. However, the definition can be extended to the storage of data within organizations. Thus, data collection as the gathering of raw data is mainly done as part of their value supporting processes, and given the degree of digitization of data, one can suppose that most organizations gather data for the different purposes, even if only a small part are maybe digitized.

Even if many organizations build data warehouses, marts, lakehouses, mashes or whatever architecture might be en-vogue these days, an important percentage of the reporting needs are covered by standard reports or reporting tools that access directly the source systems without data preparation or even data visualization. The first important question is what is understood by data analytics? Is it only the use of machine learning and statistical analysis? Does it resume only to pattern and insight finding or does it includes also what is typically considered under the Business Intelligence umbrella? 

Pragmatically thinking, Data Analytics should consider BI capabilities as well as its an extension of the current infrastructure to consider analytic capabilities. On the other side Data Warehousing and BI are considered together by DAMA as part of their Data Management methodology. Moreover, organizations may have a Data Strategy and a BI strategy, respectively a Data Analytics strategy as they might have different goals, challenges and bodies to support them. To make it even more complicated, an organization might even consider all these important topics as part of the Data or even Information Governance, or consider BI or Analytics without Data Management. 

So, a Data Strategy might or might not address Data Analytics at all. It's a matter of management philosophy, organizational structure, politics and other factors. Probably, having a strayegy related to data should count. Even if a written and communicated data-related strategy is recommended for all medium to big organizations, only a small percentage of them have one, while small organizations might ignore the topic completely.

At least in the past, data analysis and its various subcomponents was performed before preparing and visualizing the data, or at least in parallel with data visualization. Frankly, it's a strange succession of steps. Or does it refers to exploratory data analysis (EDA) from a statistical perspective, which requires statistical experience to model and interpret the facts? Moreover, data exploration and discovery happen usually in the early stages.

The most puzzling step is the last one - what does the author intended with it? Ideally, data should be actionable, at least that's what one says about KPIs, OKRs and other metrics. Does it make sense to extend Data Analytics into the decision-making process? Where does a data professional's responsibilities end and which are those boundaries? Or does it refer to the actions that need to be performed by data professionals? 

The natural step after communicating insight is for the management to take action and provide feedback. Furthermore, the decisions taken have impact on the artifacts built and a reevaluation of the business problem, assumptions and further components is needed. The many steps of analytics projects are iterative, some iterations affecting the Data Strategy as well. The diagram shows the process as linear, which is not the case.

For sure there's an interface between Data Analytics and Decision-Making and the processes associated with them, however there should be clear boundaries. E.g., it's a data professional's responsibility to make sure that the data/information is actionable and eventually advise upon it, though whether the entitled people act on it is a management topic. Not acting upon an information is also a decision. Overstepping boundaries can put the data professional into a strange situation in which he becomes responsible and eventually accountable for an action not taken, which is utopic.

The final question - is the last mile representative for the analytical process? The challenge is not the analysis and communication of data but of making sure that the feedback processes work and the changes are addressed correspondingly, that value is created continuously from the data analytics infrastructure, that data-related risks and opportunities are addressed as soon they are recognized. 

As any model, a diagram doesn't need to be correct to be useful and might not be even wrong in the right context and argumentation. A data analytics CMM might allow better estimates and comparison between organizations, though it can easily become more complex to use. Between the two models lies probably a better solution for modeling the data analytics process.

Resources:
[1] Brent Dykes (2022) "Data Analytics Marathon: Why Your Organization Must Focus On The Finish", Forbes (link)
[2] Brent Dykes (2019) Effective Data Storytelling: How to Drive Change with Data, Narrative and Visuals (link)

20 March 2021

🧭Business Intelligence: New Technologies, Old Challenges (Part II - ETL vs. ELT)

 

Business Intelligence

Data lakes and similar cloud-based repositories drove the requirement of loading the raw data before performing any transformations on the data. At least that’s the approach the new wave of ELT (Extract, Load, Transform) technologies use to handle analytical and data integration workloads, which is probably recommendable for the mentioned cloud-based contexts. However, ELT technologies are especially relevant when is needed to handle data with high velocity, variance, validity or different value of truth (aka big data). This because they allow processing the workloads over architectures that can be scaled with workloads’ demands.

This is probably the most important aspect, even if there can be further advantages, like using built-in connectors to a wide range of sources or implementing complex data flow controls. The ETL (Extract, Transform, Load) tools have the same capabilities, maybe reduced to certain data sources, though their newer versions seem to bridge the gap.

One of the most stressed advantages of ELT is the possibility of having all the (business) data in the repository, though these are not technological advantages. The same can be obtained via ETL tools, even if this might involve upon case a bigger effort, effort depending on the functionality existing in each tool. It’s true that ETL solutions have a narrower scope by loading a subset of the available data, or that transformations are made before loading the data, though this depends on the scope considered while building the data warehouse or data mart, respectively the design of ETL packages, and both are a matter of choice, choices that can be traced back to business requirements or technical best practices.

Some of the advantages seen are context-dependent – the context in which the technologies are put, respectively the problems are solved. It is often imputed to ETL solutions that the available data are already prepared (aggregated, converted) and new requirements will drive additional effort. On the other side, in ELT-based solutions all the data are made available and eventually further transformed, but also here the level of transformations made depends on specific requirements. Independently of the approach used, the data are still available if needed, respectively involve certain effort for further processing.

Building usable and reliable data models is dependent on good design, and in the design process reside the most important challenges. In theory, some think that in ETL scenarios the design is done beforehand though that’s not necessarily true. One can pull the raw data from the source and build the data models in the target repositories.

Data conversion and cleaning is needed under both approaches. In some scenarios is ideal to do this upfront, minimizing the effect these processes have on data’s usage, while in other scenarios it’s helpful to address them later in the process, with the risk that each project will address them differently. This can become an issue and should be ideally addressed by design (e.g. by building an intermediate layer) or at least organizationally (e.g. enforcing best practices).

Advancing that ELT is better just because the data are true (being in raw form) can be taken only as a marketing slogan. The degree of truth data has depends on the way data reflects business’ processes and the way data are maintained, while their quality is judged entirely on their intended use. Even if raw data allow more flexibility in handling the various requests, the challenges involved in processing can be neglected only under the consequences that follow from this.

Looking at the analytics and data integration cloud-based technologies, they seem to allow both approaches, thus building optimal solutions relying on professionals’ wisdom of making appropriate choices.

Previous Post <<||>>Next Post

11 March 2021

💠🗒️Microsoft Azure: Azure Data Factory [Notes]

Azure Data Factory - Concept Map

Acronyms:
Azure Data Factory (ADF)
Continuous Integration/Continuous Deployment (CI/CD)
Extract Load Transform (ELT)
Extract Transform Load (ETL)
Independent Software Vendors (ISVs)
Operations Management Suite (OMS)
pay-as-you-go (PAYG)
SQL Server Integration Services (SSIS)

Resources:
[1] Microsoft (2020) "Microsoft Business Intelligence and Information Management: Design Guidance", by Rod College
[2] Microsoft (2021) Azure Data Factory [source]
[3] Microsoft (2018) Azure Data Factory: Data Integration in the Cloud [source]
[4] Microsoft (2021) Integrate data with Azure Data Factory or Azure Synapse Pipeline [source]
[10] Coursera (2021) Data Processing with Azure [source]
[11] Sudhir Rawat & Abhishek Narain (2019) "Understanding Azure Data Factory: Operationalizing Big Data and Advanced Analytics Solutions"

03 January 2020

🗄️Data Management: Data Literacy (Part I: A Second Language)

Data Management

At the Gartner Data & Analytics Summit that took place in 2018 in Grapevine, Texas, it was reiterated the importance of data literacy for taking advantage of the emergence of data analytics, artificial intelligence (AI) and machine learning (ML) technologies. Gartner expected then that by 2020, 80% of organizations will initiate deliberate competency development in the field of data literacy [1] – or how they put it – learning to ‘speak data’ as a ‘second language’.

Data literacy is typically defined as the ability to read, work with, analyze, and argue with data. Sure, these form the blocks of data literacy, though what I’m missing from this definition is the ability to understand the data, even if understanding should be the outcome of reading, and the ability to put data into the context of business problems, even if the analyzes of data could involve this later aspect too.

Understanding has several aspects: understanding the data structures available within an organization, understanding the problems with data (including quality, governance, privacy and security), respectively understanding how the data are linked to the business processes. These aspects go beyond the simple ability included in the above definition, which from my perspective doesn’t include the particularities of an organization (data structure, data quality and processes) – the business component. This is reflected in one of the problems often met in the BI/data analytics industry – the solutions developed by the various service providers don’t reflect organizations’ needs, one of the causes being the inability to understand the business on segments or holistically.  

Putting data into context means being able to use the respective data in answering stringent business problems. A business problem needs to be first correctly defined and this requires a deep understanding of the business. Then one needs to identify the data that could help finding the answers to the problem, respectively of building one or more models that would allow elaborating further theories and performing further simulations. This is an ongoing process in which the models built are further enhanced, when possible, or replaced by better ones.

Probably the comparison with a second language is only partially true. One can learn a second language and argue in the respective language, though it doesn’t mean that the argumentations will be correct or constructive as long the person can’t do the same in the native language. Moreover, one can have such abilities in the native or a secondary language, but not be able do the same in what concerns the data, as different skillsets are involved. This aspect can make quite a difference in a business scenario. One must be able also to philosophize, think critically, as well to understand the forms of communication and their rules in respect to data.

To philosophize means being able to understand the causality and further relations existing within the business and think critically about them. Being able to communicate means more than being able to argue – it means being able to use effectively the communication tools – communication channels, as well the methods of representing data, information and knowledge. In extremis one might even go beyond the basic statistical tools, stepping thus in what statistical literacy is about. In fact, the difference between the two types of literacy became thinner, the difference residing in the accent put on their specific aspects.

These are the areas which probably many professionals lack. Data literacy should be the aim, however this takes time and is a continuous iterative process that can take years to reach maturity. It’s important for organizations to start addressing these aspects, progress in small increments and learn from the experience accumulated.

Previous Post <<||>> Next Post

References:
[1] Gartner (2018) How data and analytics leaders learn to master information as a second language, by Christy Pettey (link

29 November 2019

🧭Business Intelligence: Perspectives (Part V: Data Soup - From BI to Analytics)

Business Intelligence Series
Business Intelligence Series

The days when everything was reduced to simple terminology like reports or queries are gone. One can see it in the market trends related to reporting or data, as well in the jargon soup the IT people use on the daily basis – Business Intelligence (BI), Data Mining (DM), Analytics, Data Science, Data Warehousing (DW), Machine Learning (ML), Artificial Intelligence (AI) and so on. What’s more confusing for the users and other spectators is the easiness with which all these concepts are used, sometimes interchangeably, and often it feels like nothing makes sense.

BI is used nowadays to refer to the technologies, architectures, methodologies, processes and practices used to transform data into what is desired as meaningful and useful information.  From its early beginnings in the 60s, the intelligence from Business Intelligence (BI) refers to the ability to apprehend the interrelationships of the facts to be processed (aka data) in such a way as to guide action towards a desired goal.

The main purpose of BI was and is to guide actions and provide a solid basis for decision making, aspect not necessarily reflected in the way organizations use their BI infrastructure. Except basic operational/tactical/strategic reports and metrics that reflect to a higher or lower degree organizations’ goals, BI often fails to provide the expected value. The causes are multiple ranging from an organizations maturity in devising a strategy and dividing it into SMART goals and objectives, to the misuse of technologies for the wrong purposes.

Despite the basic data analysis techniques, the rich visualizations and navigation functionality, BI fails often to deliver by itself more than ordinary and already known information. Information becomes valuable when it brings novelty, when it can be easily transformed into knowledge, or even better, when knowledge is extracted directly. To address the limitations of the BI a series of techniques appeared in parallel and coined in the 90s as Data Mining.

Mining is the process of obtaining something valuable from a resource. What DM tries to achieve as process is the extraction of knowledge in form patterns from the data by categorizing, clustering, identifying dependencies or anomalies. When compared with data analysis, the main characteristics of DM is the fact that is used to test models and hypotheses, and that it uses a set of semiautomatic and automatic out-of-the-box statistics packages, AI or predictive algorithms with applicability in different areas – Web,  text, speech, business processes, etc.

DM proved to be useful by allowing to build models rooted in historical data, models which allowed predicting outcome or behavior, however the models are pretty basic and there’s always a threshold beyond which they can’t go. Furthermore, the costs of preparing the data and of the needed infrastructure seem to be high compared with the benefits data mining provides. There are scenarios in which DM proves to bring benefit, while in others it raises more challenges than can solve. Privacy, security, misuse of information and the blind use of techniques without understanding the data or the models behind, are just some of such challenges.  

Information seems too common, while knowledge can become expensive to obtain. The middle way between the two found its future into another buzzword – analyticsthe systematic analysis of data or statistics using specific mathematical methods. Analytics combine the agility of data analysis techniques with the power of predictive and prescriptive techniques used in DM in discovering patterns into the data. Analytics attempts to identify why it happens by using a chain of inferences resulted from data’s analyzing and understanding. From another perspective analytics seems to be a rebranded and slightly enhanced version of BI.

31 December 2018

🔭Data Science: Big Data (Just the Quotes)

"If we gather more and more data and establish more and more associations, however, we will not finally find that we know something. We will simply end up having more and more data and larger sets of correlations." (Kenneth N Waltz, "Theory of International Politics Source: Theory of International Politics", 1979)

“There are those who try to generalize, synthesize, and build models, and there are those who believe nothing and constantly call for more data. The tension between these two groups is a healthy one; science develops mainly because of the model builders, yet they need the second group to keep them honest.” (Andrew Miall, “Principles of Sedimentary Basin Analysis”, 1984)

"Big data can change the way social science is performed, but will not replace statistical common sense." (Thomas Landsall-Welfare, "Nowcasting the mood of the nation", Significance 9(4), 2012)

"Big Data is data that exceeds the processing capacity of conventional database systems. The data is too big, moves too fast, or doesn’t fit the strictures of your database architectures. To gain value from this data, you must choose an alternative way to process it." (Edd Wilder-James, "What is big data?", 2012) [source]

"The secret to getting the most from Big Data isn’t found in huge server farms or massive parallel computing or in-memory algorithms. Instead, it’s in the almighty pencil." (Matt Ariker, "The One Tool You Need To Make Big Data Work: The Pencil", 2012)

"Big data is the most disruptive force this industry has seen since the introduction of the relational database." (Jeffrey Needham, "Disruptive Possibilities: How Big Data Changes Everything", 2013)

"No subjective metric can escape strategic gaming [...] The possibility of mischief is bottomless. Fighting ratings is fruitless, as they satisfy a very human need. If one scheme is beaten down, another will take its place and wear its flaws. Big Data just deepens the danger. The more complex the rating formulas, the more numerous the opportunities there are to dress up the numbers. The larger the data sets, the harder it is to audit them." (Kaiser Fung, "Numbersense: How To Use Big Data To Your Advantage", 2013)

"There is convincing evidence that data-driven decision-making and big data technologies substantially improve business performance. Data science supports data-driven decision-making - and sometimes conducts such decision-making automatically - and depends upon technologies for 'big data' storage and engineering, but its principles are separate." (Foster Provost & Tom Fawcett, "Data Science for Business", 2013)

"Our needs going forward will be best served by how we make use of not just this data but all data. We live in an era of Big Data. The world has seen an explosion of information in the past decades, so much so that people and institutions now struggle to keep pace. In fact, one of the reasons for the attachment to the simplicity of our indicators may be an inverse reaction to the sheer and bewildering volume of information most of us are bombarded by on a daily basis. […] The lesson for a world of Big Data is that in an environment with excessive information, people may gravitate toward answers that simplify reality rather than embrace the sheer complexity of it." (Zachary Karabell, "The Leading Indicators: A short history of the numbers that rule our world", 2014)

"The other buzzword that epitomizes a bias toward substitution is 'big data'. Today’s companies have an insatiable appetite for data, mistakenly believing that more data always creates more value. But big data is usually dumb data. Computers can find patterns that elude humans, but they don’t know how to compare patterns from different sources or how to interpret complex behaviors. Actionable insights can only come from a human analyst (or the kind of generalized artificial intelligence that exists only in science fiction)." (Peter Thiel & Blake Masters, "Zero to One: Notes on Startups, or How to Build the Future", 2014)

"We have let ourselves become enchanted by big data only because we exoticize technology. We’re impressed with small feats accomplished by computers alone, but we ignore big achievements from complementarity because the human contribution makes them less uncanny. Watson, Deep Blue, and ever-better machine learning algorithms are cool. But the most valuable companies in the future won’t ask what problems can be solved with computers alone. Instead, they’ll ask: how can computers help humans solve hard problems?" (Peter Thiel & Blake Masters, "Zero to One: Notes on Startups, or How to Build the Future", 2014)

"As business leaders we need to understand that lack of data is not the issue. Most businesses have more than enough data to use constructively; we just don't know how to use it. The reality is that most businesses are already data rich, but insight poor." (Bernard Marr, Big Data: Using SMART Big Data, Analytics and Metrics To Make Better Decisions and Improve Performance, 2015)

"Big data is based on the feedback economy where the Internet of Things places sensors on more and more equipment. More and more data is being generated as medical records are digitized, more stores have loyalty cards to track consumer purchases, and people are wearing health-tracking devices. Generally, big data is more about looking at behavior, rather than monitoring transactions, which is the domain of traditional relational databases. As the cost of storage is dropping, companies track more and more data to look for patterns and build predictive models." (Neil Dunlop, "Big Data", 2015)

"Big Data often seems like a meaningless buzz phrase to older database professionals who have been experiencing exponential growth in database volumes since time immemorial. There has never been a moment in the history of database management systems when the increasing volume of data has not been remarkable." (Guy Harrison, "Next Generation Databases: NoSQL, NewSQL, and Big Data", 2015)

"Dimensionality reduction is essential for coping with big data - like the data coming in through your senses every second. A picture may be worth a thousand words, but it’s also a million times more costly to process and remember. [...] A common complaint about big data is that the more data you have, the easier it is to find spurious patterns in it. This may be true if the data is just a huge set of disconnected entities, but if they’re interrelated, the picture changes." (Pedro Domingos, "The Master Algorithm", 2015)

"Science’s predictions are more trustworthy, but they are limited to what we can systematically observe and tractably model. Big data and machine learning greatly expand that scope. Some everyday things can be predicted by the unaided mind, from catching a ball to carrying on a conversation. Some things, try as we might, are just unpredictable. For the vast middle ground between the two, there’s machine learning." (Pedro Domingos, "The Master Algorithm", 2015)

"The human side of analytics is the biggest challenge to implementing big data." (Paul Gibbons, "The Science of Successful Organizational Change", 2015)

"To make progress, every field of science needs to have data commensurate with the complexity of the phenomena it studies. [...] With big data and machine learning, you can understand much more complex phenomena than before. In most fields, scientists have traditionally used only very limited kinds of models, like linear regression, where the curve you fit to the data is always a straight line. Unfortunately, most phenomena in the world are nonlinear. [...] Machine learning opens up a vast new world of nonlinear models." (Pedro Domingos, "The Master Algorithm", 2015)

"Underfitting is when a model doesn’t take into account enough information to accurately model real life. For example, if we observed only two points on an exponential curve, we would probably assert that there is a linear relationship there. But there may not be a pattern, because there are only two points to reference. [...] It seems that the best way to mitigate underfitting a model is to give it more information, but this actually can be a problem as well. More data can mean more noise and more problems. Using too much data and too complex of a model will yield something that works for that particular data set and nothing else." (Matthew Kirk, "Thoughtful Machine Learning", 2015)

"We are moving slowly into an era where Big Data is the starting point, not the end." (Pearl Zhu, "Digital Master: Debunk the Myths of Enterprise Digital Maturity", 2015)

"A popular misconception holds that the era of Big Data means the end of a need for sampling. In fact, the proliferation of data of varying quality and relevance reinforces the need for sampling as a tool to work efficiently with a variety of data, and minimize bias. Even in a Big Data project, predictive models are typically developed and piloted with samples." (Peter C Bruce & Andrew G Bruce, "Statistics for Data Scientists: 50 Essential Concepts", 2016)

"Big data is, in a nutshell, large amounts of data that can be gathered up and analyzed to determine whether any patterns emerge and to make better decisions." (Daniel Covington, Analytics: Data Science, Data Analysis and Predictive Analytics for Business, 2016)

"Big Data processes codify the past. They do not invent the future. Doing that requires moral imagination, and that’s something only humans can provide. We have to explicitly embed better values into our algorithms, creating Big Data models that follow our ethical lead. Sometimes that will mean putting fairness ahead of profit." (Cathy O'Neil, "Weapons of Math Destruction: How Big Data Increases Inequality and Threatens Democracy", 2016)

"While Big Data, when managed wisely, can provide important insights, many of them will be disruptive. After all, it aims to find patterns that are invisible to human eyes. The challenge for data scientists is to understand the ecosystems they are wading into and to present not just the problems but also their possible solutions." (Cathy O'Neil, "Weapons of Math Destruction: How Big Data Increases Inequality and Threatens Democracy", 2016)

"Big Data allows us to meaningfully zoom in on small segments of a dataset to gain new insights on who we are." (Seth Stephens-Davidowitz, "Everybody Lies: What the Internet Can Tell Us About Who We Really Are", 2017)

"Effects without an understanding of the causes behind them, on the other hand, are just bunches of data points floating in the ether, offering nothing useful by themselves. Big Data is information, equivalent to the patterns of light that fall onto the eye. Big Data is like the history of stimuli that our eyes have responded to. And as we discussed earlier, stimuli are themselves meaningless because they could mean anything. The same is true for Big Data, unless something transformative is brought to all those data sets… understanding." (Beau Lotto, "Deviate: The Science of Seeing Differently", 2017)

"The term [Big Data] simply refers to sets of data so immense that they require new methods of mathematical analysis, and numerous servers. Big Data - and, more accurately, the capacity to collect it - has changed the way companies conduct business and governments look at problems, since the belief wildly trumpeted in the media is that this vast repository of information will yield deep insights that were previously out of reach." (Beau Lotto, "Deviate: The Science of Seeing Differently", 2017)

"There are other problems with Big Data. In any large data set, there are bound to be inconsistencies, misclassifications, missing data - in other words, errors, blunders, and possibly lies. These problems with individual items occur in any data set, but they are often hidden in a large mass of numbers even when these numbers are generated out of computer interactions." (David S Salsburg, "Errors, Blunders, and Lies: How to Tell the Difference", 2017)

"Just as they did thirty years ago, machine learning programs (including those with deep neural networks) operate almost entirely in an associational mode. They are driven by a stream of observations to which they attempt to fit a function, in much the same way that a statistician tries to fit a line to a collection of points. Deep neural networks have added many more layers to the complexity of the fitted function, but raw data still drives the fitting process. They continue to improve in accuracy as more data are fitted, but they do not benefit from the 'super-evolutionary speedup'."  (Judea Pearl & Dana Mackenzie, "The Book of Why: The new science of cause and effect", 2018)

"One of the biggest myths is the belief that data science is an autonomous process that we can let loose on our data to find the answers to our problems. In reality, data science requires skilled human oversight throughout the different stages of the process. [...] The second big myth of data science is that every data science project needs big data and needs to use deep learning. In general, having more data helps, but having the right data is the more important requirement. [...] A third data science myth is that modern data science software is easy to use, and so data science is easy to do. [...] The last myth about data science [...] is the belief that data science pays for itself quickly. The truth of this belief depends on the context of the organization. Adopting data science can require significant investment in terms of developing data infrastructure and hiring staff with data science expertise. Furthermore, data science will not give positive results on every project." (John D Kelleher & Brendan Tierney, "Data Science", 2018)

"Apart from the technical challenge of working with the data itself, visualization in big data is different because showing the individual observations is just not an option. But visualization is essential here: for analysis to work well, we have to be assured that patterns and errors in the data have been spotted and understood. That is only possible by visualization with big data, because nobody can look over the data in a table or spreadsheet." (Robert Grant, "Data Visualization: Charts, Maps and Interactive Graphics", 2019)

"With the growing availability of massive data sets and user-friendly analysis software, it might be thought that there is less need for training in statistical methods. This would be naïve in the extreme. Far from freeing us from the need for statistical skills, bigger data and the rise in the number and complexity of scientific studies makes it even more difficult to draw appropriate conclusions. More data means that we need to be even more aware of what the evidence is actually worth." (David Spiegelhalter, "The Art of Statistics: Learning from Data", 2019)

"Big data is revolutionizing the world around us, and it is easy to feel alienated by tales of computers handing down decisions made in ways we don’t understand. I think we’re right to be concerned. Modern data analytics can produce some miraculous results, but big data is often less trustworthy than small data. Small data can typically be scrutinized; big data tends to be locked away in the vaults of Silicon Valley. The simple statistical tools used to analyze small datasets are usually easy to check; pattern-recognizing algorithms can all too easily be mysterious and commercially sensitive black boxes." (Tim Harford, "The Data Detective: Ten easy rules to make sense of statistics", 2020)

"Making big data work is harder than it seems. Statisticians have spent the past two hundred years figuring out what traps lie in wait when we try to understand the world through data. The data are bigger, faster, and cheaper these days, but we must not pretend that the traps have all been made safe. They have not." (Tim Harford, "The Data Detective: Ten easy rules to make sense of statistics", 2020)

"Many people have strong intuitions about whether they would rather have a vital decision about them made by algorithms or humans. Some people are touchingly impressed by the capabilities of the algorithms; others have far too much faith in human judgment. The truth is that sometimes the algorithms will do better than the humans, and sometimes they won’t. If we want to avoid the problems and unlock the promise of big data, we’re going to need to assess the performance of the algorithms on a case-by-case basis. All too often, this is much harder than it should be. […] So the problem is not the algorithms, or the big datasets. The problem is a lack of scrutiny, transparency, and debate." (Tim Harford, "The Data Detective: Ten easy rules to make sense of statistics", 2020)

"The problem is the hype, the notion that something magical will emerge if only we can accumulate data on a large enough scale. We just need to be reminded: Big data is not better; it’s just bigger. And it certainly doesn’t speak for itself." (Carl T Bergstrom & Jevin D West, "Calling Bullshit: The Art of Skepticism in a Data-Driven World", 2020)

"[...] the focus on Big Data AI seems to be an excuse to put forth a number of vague and hand-waving theories, where the actual details and the ultimate success of neuroscience is handed over to quasi- mythological claims about the powers of large datasets and inductive computation. Where humans fail to illuminate a complicated domain with testable theory, machine learning and big data supposedly can step in and render traditional concerns about finding robust theories. This seems to be the logic of Data Brain efforts today. (Erik J Larson, "The Myth of Artificial Intelligence: Why Computers Can’t Think the Way We Do", 2021)

"We live on islands surrounded by seas of data. Some call it 'big data'. In these seas live various species of observable phenomena. Ideas, hypotheses, explanations, and graphics also roam in the seas of data and can clarify the waters or allow unsupported species to die. These creatures thrive on visual explanation and scientific proof. Over time new varieties of graphical species arise, prompted by new problems and inner visions of the fishers in the seas of data." (Michael Friendly & Howard Wainer, "A History of Data Visualization and Graphic Communication", 2021)

"Visualizations can remove the background noise from enormous sets of data so that only the most important points stand out to the intended audience. This is particularly important in the era of big data. The more data there is, the more chance for noise and outliers to interfere with the core concepts of the data set." (Kate Strachnyi, "ColorWise: A Data Storyteller’s Guide to the Intentional Use of Color", 2023)

"Visualisation is fundamentally limited by the number of pixels you can pump to a screen. If you have big data, you have way more data than pixels, so you have to summarise your data. Statistics gives you lots of really good tools for this." (Hadley Wickham)

Related Posts Plugin for WordPress, Blogger...

About Me

My photo
Koeln, NRW, Germany
IT Professional with more than 25 years experience in IT in the area of full life-cycle of Web/Desktop/Database Applications Development, Software Engineering, Consultancy, Data Management, Data Quality, Data Migrations, Reporting, ERP implementations & support, Team/Project/IT Management, etc.