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We are using SQL Server 2008 R2. We need to provide the business users an interactive data exploration facility which they can drag and drop the attributes(columns) they want to create their own ad-hoc report.

I know in SQL Server 2012 it can be done using Power View and Sharepoint, but what about SQL Server 2008 R2?

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You mean both setting up the query and rendering the data? This is multi-tier application and it's implemented with Silverlight, LightSwitch and .NET WPF as in Server 2012 but not 2008 R2. There are however different tools to do either query construction and presentation rendering, and as for facility there are OLAP cubes. – Andrew Smith Aug 20 '12 at 7:17
Yes Andrew, they want to select the attributes and run the report to see the results. Is it possible through SQL server reporting services? How? – Sky Aug 20 '12 at 8:59
up vote 2 down vote accepted

You're probably looking for Report Builder 3.0 and/or Power Pivot.

Microsoft SQL Server 2008 R2 Report Builder 3.0 provides an intuitive report authoring environment for business and power users. It supports the full capabilities of SQL Server 2008 R2 Reporting Services.

Your Excel ninja users will likely prefer Power Pivot, your more typical tabular report folk will feel right at home with Report Builder. There's a useful summary of the differences between Report Builder and the BIDS Report Designer at Designing Reports in Report Designer and Report Builder 3.0 (SSRS).

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