chapter 7: business intelligence and decision support copyright © 2013 pearson education, inc....

Chapter 7:Business Intelligence and

Decision Support

Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 1

Learning objectives

1. Decision making

2. Business intelligence

3. Data mining

4. Web analytics

5. Dashboards and portals

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Police department

• Data mining to deploy officers

• 47% decline in complaints

• 246% increase in recovered weapons

• $15,000 HR savings during shift

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Business intelligence

• Information for data-driven decision making

• Includes software applications, technologies,

and practices

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Levels of decision making

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Internal External

• Transactional

databases• Data warehouses

• Cloud• External databases• Websites, social

networks, and text

messages

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Sources of BI

• Online analytical

processing

• Statistics and

modeling

techniques

• Text mining

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Analyzing patterns

• What-if analysis• Goal seeking and optimization• Forecasting

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Simulating and forecasting

Examples Challenge

• Amazon.com• ALADDIN• Jeopardy!

• Scammers• CAPTCHA

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Artificial intelligence

Artificial intelligenceapplications

• Robotics

• Expert systems

• Neural nets

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Web analytics

• Website

• Social media

• E-commerce

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• Analyzing software

• Reaching goals

• Ad effectiveness

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Analyzing traffic

• Graphical user interface• Key performance indicators

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Dashboards

• Variety of information on one screen• Enterprise portal

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Portals

• Aggregate data from multiple sources• Customizable web pages

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Mashups

Human element

• Although humans choose intelligence, tools,

and interpretation, they have weaknesses

• Must consider human motives in design and

implementation of information systems

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Summary

1. Decision making

2. Business intelligence

3. Data mining

4. Web analytics

5. Dashboards and portals

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Insurance Fraud case

• $68 billion lost in fraud each year

• Fraud detection systems rely on rules and

patterns detected by analytic engines

• Analysts work closely with investigators to

apply human judgment as they create new

rules and follow data leads

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• Command Center—four-panel touchscreen• Real-time aggregated data• Fan dashboard

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New York Jets case

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