Business Intelligence Chapter 1

Business intelligence (BI) can be characterized as a transformation of A) data to information to decisions to actions. B) Big Data to data to information to decisions. C) actions to decisions to feedback to information. D) data to processing to information to actions.

A) data to information to decisions to actions

The very design that makes an OLTP system efficient for transaction processing makes it *inefficient* for what? A) end-user ad hoc reports, queries, and analysis B) transaction processing systems that constantly update operational databases C) the collection of reputable sources of intelligence D) transactions such as ATM withdrawals, where we need to reduce a bank balance accordingly

A) end-user ad hoc reports, queries, and analysis

Today, many vendors offer diversified tools, some of which are completely *preprogrammed* (called shells). How are these shells utilized? A) They are used for customization of BI solutions. B) All a user needs to do is insert the numbers. C) The shell provides a secure environment for the organization's BI data. D) They host an enterprise data warehouse that can assist in decision making.

B) All a user needs to do is insert the numbers

How are descriptive analytics methods different from the other two types? A) They answer "what-if?" queries, not "how many?" queries. B) They answer "what-is?" queries, not "what will be?" queries. C) They answer "what to do?" queries, not "what-if?" queries. D) They answer "what will be?" queries, not "what to do?" queries.

B) They answer "what-is?" queries, not "what will be?" queries

What can the BI users in an organization help guide and direct? A) how to implement and deploy a BI initiative that can be lengthy, expensive, and failure prone B) how the DW is structured and the types of BI tools and other supporting software that are needed C) how to decompose the planning and execution into business, organization, functionality, and infrastructure components D) how the DW is structured and the costs and the appreciation for different classes of potential

B) how the DW is structured and the types of BI tools and other supporting software that are needed

Once a data warehouse is in place, the general process of intelligence creation begins with A) end-user examinations of decision-making impacts. B) identifying and prioritizing specific BI projects. C) estimating the cost-benefit ratio of the ROI. D) establishing the critical partnerships required for BI governance.

B) identifying and prioritizing specific BI projects

If a company's strategy is properly aligned with DW and BI initiatives, and if the company's IS organization can be made capable of playing its role in such a project, and if the requisite user community is in place and has the proper motivation, then A) it is no longer necessary to start BI within the company. B) it is wise to start BI and establish a BI Competency Center (BICC) within the company. C) the organization is ready for the introduction of new data-generating technologies, such as radio-frequency identification (RFID). D) business leaders are required to document their business processes and to sign off on the legitimacy of the information they rely on.

B) it is wise to start BI and establish a BI Competency Center (BICC) within the company

In answering the question "Which customers are most likely to click on my online ads and *purchase my goods*?" you are most likely to use which of the following analytic applications? A) customer profitability B) propensity to buy C) customer attrition D) channel optimization

B) propensity to buy

In the Magpie Sensing case study, the automated collection of temperature and humidity data on shipped goods helped with various types of analytics. Which of the following is an example of *predictive* analytics? A) real time reports of the shipment's temperature B) warning of an open shipment seal C) location of the shipment D) optimal temperature setting

B) warning of an open shipment seal

________ cycle times are now extremely compressed, faster, and more informed across industries.

Business

________ is an umbrella term that combines architectures, tools, databases, analytical tools, applications, and methodologies.

Business intelligence (BI)

Online transaction processing (OLTP) systems handle a company's routine ongoing business. In contrast, a data warehouse is typically A) the end result of BI processes and operations. B) a repository of actionable intelligence obtained from a data mart. C) a distinct system that provides storage for data that will be made use of in analysis. D) an integral subsystem of an online analytical processing (OLAP) system.

C) a distinct system that provides storage for data that will be made use of in analysis

Which of the following is *NOT* an example that falls within the four major categories of business environment factors for today's organizations? A) globalization B) increased pool of customers C) fewer government regulations D) increased competition

C) fewer government regulations

In answering the question "Which customers are likely to be using *fake credit cards*?" you are most likely to use which of the following analytic applications? A) channel optimization B) customer segmentation C) fraud detection D) customer profitability

C) fraud detection

Prescriptive BI capabilities are viewed as more powerful than predictive ones for all the following reasons *EXCEPT* A) prescriptive BI gives actual guidance as to actions. B) understanding the likelihood of certain events often leaves unclear remedies. C) only prescriptive BI capabilities have monetary value to top-level managers. D) prescriptive models generally build on (with some overlap) predictive ones.

C) only prescriptive BI capabilities have monetary value to top-level managers

When middles look across an organization to ensure that project priorities reflect the needs of the entire business, what is their main concern? A) that their proprietary BI methods are protected from industrial espionage B) that additional information available through an enterprise data warehouse should assist in decision making C) that a project does not just serve to sub-optimize one area over others D) that return on investment (ROI) and total cost of ownership justify the cost—benefit ratio

C) that a project does not just serve to sub-optimize one area over others

What has caused the growth of the demand for instant, on-demand access to *dispersed* information? A) the increasing divide between users who focus on the strategic level and those who are more oriented to the tactical level B) the need to create a database infrastructure that is always online and contains all the information from the OLTP systems C) the more pressing need to close the gap between the operational data and strategic objectives D) the fact that BI cannot simply be a technical exercise for the information systems department

C) the more pressing need to close the gap between the operational data and strategic objectives

Big Data often involves a form of distributed storage and processing using Hadoop and MapReduce. One reason for this is A) centralized storage creates too many vulnerabilities. B) the "Big" in Big Data necessitates over 10,000 processing nodes. C) the processing power needed for the centralized model would overload a single computer. D) Big Data systems have to match the geographical spread of social media.

C) the processing power needed for the centralized model would overload a single computer

Which of the following statements about *Big Data* is true? A) Data chunks are stored in different locations on one computer. B) Hadoop is a type of processor used to process Big Data applications. C) MapReduce is a storage filing system. D) Pure Big Data systems do not involve fault tolerance.

D) Pure Big Data systems do not involve fault tolerance

In the Magpie Sensing case study, the automated collection of temperature and humidity data on shipped goods helped with various types of analytics. Which of the following is an example of *prescriptive* analytics? A) real time reports of the shipment's temperature B) warning of an open shipment seal C) location of the shipment D) optimal temperature setting

D) optimal temperature setting

Organizations counter the pressures they experience in their business environments in multiple ways. Which of the following is *NOT* an effective way to counter these pressures? A) reactive actions B) anticipative actions C) adaptive actions D) retroactive actions

D) retroactive actions

When Sabre developed their Enterprise Data Warehouse, they chose to use *near-real time* updating of their database. The main reason they did so was A) to provide a 360 degree view of the organization. B) to aggregate performance metrics in an understandable way. C) to be able to assess internal operations. D) to provide up-to-date executive insights.

D) to provide up-to-date executive insights

________ analytics help managers understand current events in the organization including causes, trends, and patterns.

Descriptive

The filing system developed by Google to handle Big Data storage challenges is known as the ________ Distributed File System.

Hadoop

The programing algorithm developed by Google to handle Big Data computational challenges is known as ________.

MapReduce

________ analytics help managers understand probable future outcomes.

Predictive

________ analytics help managers make decisions to achieve the best performance in the future.

Prescriptive

Data warehouses are intended to work with informational data used for online ________ processing systems.

analytical

Organizations using BI systems are typically seeking to ________ the gap between the organization's current and desired performance.

close

The desire by a customer to customize a product falls under the ________ category of business environment factors.

consumer demand

Sabre used executive ________ to present performance metrics in a concise way to its executives.

dashboards

A(n) ________ is a major component of a Business Intelligence (BI) system that holds source data.

data warehouse

The fraud ________ analytic application helps determine fraudulent events and take action.

detection

Some organizations refer to the project prioritization process as a form of BI ________.

governance

As the number of potential BI applications increases, the need to justify and prioritize them arises. This is not an easy task due to the large number of ________ benefits.

intangible

Many BI consultants and practitioners involved in successful BI initiatives advise that a framework for ________ is a necessary precondition.

planning

Applications based upon sensor and location data that contribute to the exponential growth of collected raw data is called ________ identification.

radio-frequency

An older and more diverse workforce falls under the ________ category of business environment factors.

societal

A(n) ________ is a major component of a Business Intelligence (BI) system that is usually browser based and often presents a portal or dashboard.

user interface

The Google search engine is an example of Big Data in that it has to search and index billions of ________ in fractions of a second for each search.

web pages