Thomas.I Microsoft BI & Analytics

A Site Dedicated to General BI Issues and MS BI Issues: Architecture and Technology

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.
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