I have implemted steps in BI to create the cube but when i click on process button i got the following error.
The project could not be deployed to the 'localhost' server because of the following connectivity problems : A connection cannot be made. Ensure that the server is running. To verify or update the name of the target server, right-click on the project in Solution Explorer, select Project Properties, click on the Deployment tab, and then enter the name of the server.
I have checked my configuration tools under Microsoft SQL Server 2008 R2 but i dont get sql server analysis service i guess the problem occurs because this service is not installed in my system.
Yes. By default, BIDS (or whatever it is called in SQL 2012) will try to deploy Analysis Services packages to the local machine. This can be changed in the deployment properties (not entirely sure where that is offhand). The short of it is, before you can use Analysis Services, it needs to be installed somewhere. The good news is it does not need to be installed on your laptop.