ABC Analysis with MDX
Posted by thomasivarssonmalmo on October 14, 2008
Recently there was a discussion about doing ABC analysis with MDX in the SSAS forum here.
I have been in the BI business for ten years now but the ABC-combination did not hit any immediate ideas about what this kind of analytics was about.
I had to ask a stupid question about what ABC analysis was about but the answeres did not wake up any known insights.
After visiting a new third party client tool website, that connects this analysis approach with a visualization approach, I recognized the almost ten year old ProClarity decomposition tree.
It can also sometimes be called a Dupont Chart, the 20- and 80 percent rule or Pareto analysis. The decomposition tree and the Dupont Chart are visualization tools of these analytical techniques with different names but the same approach.
The 20-80 percent rule says that 20 percent of your customers or products will generate 80 percent of your revenues.
My conclusion is that you have the option of buying a tool that will create this type of analysis, with strong visualization techniques, or work hard with MDX, for hours, and present the same information in a grid.