chapter 11 business intelligence copyright © 2013 pearson education, inc. publishing as prentice...

Chapter 11

Business Intelligence

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-1

Why Do Organizations Need Business Intelligence (BI)?

• Business Intelligence System– An information system that supports business

processes by consolidating and analyzing data in a large database to help users create information

– Business analytics– Analytics


Why Do Organizations Need Business Intelligence (BI)?

• Business Intelligence System

Figure 11-1Examples of BI


How Does BI Support the Informing Process?

• The Informing Process

Figure 11-3 Main Activities and Rolesin the Informing Process



• The Informing Process– Informing process in the Sales process• Operational and Dynamic processes

– Standardizing the informing process– Versions of the informing process• Reporting and Data Mining



• The Informing Process

Figure 11-7 Two Types of Informing Processes:Reporting and Data Mining



• The Informing Process– A process in which an actor, typically a person,

seeks to become informed– Integrated with other processes– Provides insight to users and improves the quality

of their information


What Are Examples of the Reporting Process?

• The Reporting Process– Noninteractive– Interactive– Five basic operations• Sorting; Grouping; Calculating; Filtering; and

Formatting



• The Reporting Process– Noninteractive• Use a predetermined structure for output• RFM analysis (recently, frequency, money)

Figure 11-13Example of RFM Data



• The Reporting Process– Interactive• Users allowed to change both the analysis and

structure of the report• OLAP –online analytical processing–OLAP measure; OLAP dimension; OLAP cube



• The Reporting Process– Noninteractive v. Interactive

Figure 11-14Main Activities inNoninteractive andInteractive ReportingProcess


What Are Examples of the Data Mining Process?

• The Data Mining Process

– Cluster Analysis– Regression Analysis – Market Basket Analysis– Decision Trees– Supervised and Unsupervised Data Analysis


8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 13

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Evaluating Backup Approaches for a Data Center(Using Satisficing oriented decision theory)

Feasibility Study Interviewing for Requirements

Decision approaches using Non-Optimization Methods


• The Data Mining Process– Cluster Analysis• Identify groups of entities with similar

characteristics– Regression Analysis • The impact of a set of variables on another

variable



• The Data Mining Process– Market Basket Analysis (MBA)• Determines sales patterns

– Decision Trees• Hierarchical arrangement of criteria that predict

a classification or a value– Supervised and Unsupervised Data Analysis• Models and hypothesis



• The Data Mining Process– Decision Trees

Figure 11-20 Grades ofStudents from Past MISClass



• The Data Mining Process– Advanced statistical analysis to find patterns and

relationships among data for classification and prediction


What Are the Components of a BI System?

• Components of a BI System– Hardware– Software – BI Data– Procedures– People



• Components of a BI System– Decision Support System (DSS)

– Hardware• BI Server

– Software



• Components of a BI System– BI Data• Operational databases and data warehouses

–Procedures–People• End users and analysts



• Components of a BI System– Hardware– Software – BI Data– Procedures– People


What Are the Potential Problems with BI Systems?

• Potential Problems with BI Systems

– Data Problems– People Problems



• Potential Problems with BI Systems– Data Problems

Figure 11-22 CommonData Problems in BI



• Potential Problems with BI Systems– People Problems

Figure 11-23 BI People Problems:User, Analysts, and Leaders


What Future Technological Advances will Affect BI Use?

• Technology– Visualization and Augmented Reality– Mobile devices, RFID tags, and Web 2.0

• Technology Backlash– Privacy



• Technology– Visualization • Creation of images or diagrams that

communicate a message– Augmented Reality• Live or indirect view of the real world

augmented by computer-based data



• Technology– Mobile devices– RFID tags– Web 2.0



• Technology Backlash– Privacy– Personal Data Privacy and Security Act


Who Are the Key BI Vendors and How Does SAP Accomplish BI?

Figure 11-24Major BI Vendors


Who Are the Key BI Vendors and How Does SAP Accomplish BI?

Figure 11-26SAP Business ObjectsReport Example


Ethics Guide

• The Ethics of Profiling Customers


Conclusion

Q1. Why do organizations need business intelligence (BI)?Q2. How does BI support the Informing process?Q3. What are examples of the Reporting process?Q4. What are examples of the Data Mining process?


Conclusion

Q5. What are the components of a BI system?Q6. What are the potential problems with BI systems?Q7. What future technological advances will affect BI use?Q8. Who are the key BI vendors and how does SAP accomplish BI?


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