chapter 11 business intelligence copyright © 2013 pearson education, inc. publishing as prentice...
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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
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-2
Why Do Organizations Need Business Intelligence (BI)?
• Business Intelligence System
Figure 11-1Examples of BI
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-3
How Does BI Support the Informing Process?
• The Informing Process
Figure 11-3 Main Activities and Rolesin the Informing Process
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-4
How Does BI Support 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
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-5
How Does BI Support the Informing Process?
• The Informing Process
Figure 11-7 Two Types of Informing Processes:Reporting and Data Mining
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-6
How Does BI Support the Informing Process?
• 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
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-7
What Are Examples of the Reporting Process?
• The Reporting Process– Noninteractive– Interactive– Five basic operations• Sorting; Grouping; Calculating; Filtering; and
Formatting
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-8
What Are Examples of the Reporting Process?
• The Reporting Process– Noninteractive• Use a predetermined structure for output• RFM analysis (recently, frequency, money)
Figure 11-13Example of RFM Data
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-9
What Are Examples of the Reporting Process?
• 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
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-10
What Are Examples of the Reporting Process?
• The Reporting Process– Noninteractive v. Interactive
Figure 11-14Main Activities inNoninteractive andInteractive ReportingProcess
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-11
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
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-12
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
What Are Examples of the Data Mining Process?
• 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
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-14
What Are Examples of the Data Mining Process?
• 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
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-15
What Are Examples of the Data Mining Process?
• The Data Mining Process– Decision Trees
Figure 11-20 Grades ofStudents from Past MISClass
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-16
What Are Examples of the Data Mining Process?
• The Data Mining Process– Advanced statistical analysis to find patterns and
relationships among data for classification and prediction
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-17
What Are the Components of a BI System?
• Components of a BI System– Hardware– Software – BI Data– Procedures– People
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-18
What Are the Components of a BI System?
• Components of a BI System– Decision Support System (DSS)
– Hardware• BI Server
– Software
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-19
What Are the Components of a BI System?
• Components of a BI System– BI Data• Operational databases and data warehouses
–Procedures–People• End users and analysts
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-20
What Are the Components of a BI System?
• Components of a BI System– Hardware– Software – BI Data– Procedures– People
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-21
What Are the Potential Problems with BI Systems?
• Potential Problems with BI Systems
– Data Problems– People Problems
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-22
What Are the Potential Problems with BI Systems?
• Potential Problems with BI Systems– Data Problems
Figure 11-22 CommonData Problems in BI
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-23
What Are the Potential Problems with BI Systems?
• Potential Problems with BI Systems– People Problems
Figure 11-23 BI People Problems:User, Analysts, and Leaders
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-24
What Future Technological Advances will Affect BI Use?
• Technology– Visualization and Augmented Reality– Mobile devices, RFID tags, and Web 2.0
• Technology Backlash– Privacy
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-25
What Future Technological Advances will Affect BI Use?
• 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
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-26
What Future Technological Advances will Affect BI Use?
• Technology– Mobile devices– RFID tags– Web 2.0
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-27
What Future Technological Advances will Affect BI Use?
• Technology Backlash– Privacy– Personal Data Privacy and Security Act
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-28
Who Are the Key BI Vendors and How Does SAP Accomplish BI?
Figure 11-24Major BI Vendors
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-29
Who Are the Key BI Vendors and How Does SAP Accomplish BI?
Figure 11-26SAP Business ObjectsReport Example
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-30
Ethics Guide
• The Ethics of Profiling Customers
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-31
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?
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-32
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?
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-33
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11-34
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