MIS: Chapter 3: Quiz

Dimension

A characteristic of an OLAP measure. Purchase date, customer type, customer location, and sales region are examples of dimensions.

data warehouse

A facility for managing an organization's BI data.

Supervised data mining

A form of data mining in which data miners develop a model prior to the analysis and apply statistical techniques to determine the validity of that model and to estimate values of the parameters of the model.

unsupervised data mining

A form of data mining whereby the analysts do not create a model or hypothesis before running the analysis. Instead, they apply the data mining technique to the data and observe the results. With this method, analysts create hypotheses after the analysis to explain the patterns found.

Algorithm

A set of procedures used to solve a mathematical problem.

RFM Score

Abbreviation of Recency, Frequency, and Monetary Volume; a means to quantify the value of a customer relationship; useful as a basis for segmentation.

unsupervised data mining

Analysts do not create a model or hypothesis before running the analysis.

The software component of a BI system is called

BI application

Productivity Gains from Automation

Can work 24 hours, 365 days Immediately trained, no "onboarding" No breaks during work hours No impaired workers No time-wasting activities No accidents or injuries No arguments with other employees or managers No scheduling issues All holiday shifts covered More accurate, precise, and consistent

Data mining

Classify and predict. Use sophisticated statistical techniques to find patterns and relationships.

What Are the Three Primary Activities in the BI Process?

Data sources, Acquire data, perform analysis, publish results.

Big Data

Find patterns and relationships in Big Data. Volume, velocity, and variety force use of MapReduce techniques. Some applications use reporting and data mining as well.

shows sample RFM results for Big 7 Sports (R=5, F=5, and M=3). Big 7 sports has ordered recently and orders frequently. But its M score of 3 indicates that it does not order the most expensive goods

From these scores, the sales team can conclude that Big 7 Sports is a good, regular customer and that it should attempt to up-sell more expensive goods to Big 7 Sports. No one on the sales team should even think about the third customer, Miami Municipal.

Project Management

Grocery Store Example Build in-store cafés. Expand to other locations.

problem solving

Grocery Store Example How can we increase sales? How can we reduce food waste?

Deciding

Grocery Store Example Which customers shop at each location? Create custom marketing plans per store.

Informing

Grocery Store Example Which products are selling quickly? Which products are most profitable?

Data Warehouse (DW)

In large organizations, a group of people manage and run a(n) ________, which is a facility for managing an organization's BI data.

Business intelligence

Information systems that produce business intelligence.

How Do Organizations Use BI?

Informing Deciding Problem Solving Project Management

Types of Business Intelligence Systems

Informing,Deciding,Problem Solving,Project Management

Consumer data that can be purchased

Name, address, phone Age Gender Ethnicity Religion Income Education Voter registration Homeownership Vehicles

The functions of a data warehouse are to:

Obtain data Cleanse data Organize and relate data Catalog data

Exception reports

Reports produced when something out of predefined bounds occurs.

Granularity

The level of detail in the data to the decision-making process

Publish results

The process of delivering business intelligence to the knowledge workers who need it

Automation

The process of making systems operate without human intervention.

BI application

The software component of a BI system is called

Metadata

_______ refers to the source, format, assumptions and constraints, and other facts about the data.

data acquisition

________ is the process of obtaining, cleaning, organizing, relating, and cataloging source data.

reporting application

a BI application that inputs data from one or more sources and applies reporting operations to that data to produce business intelligence

Focused differentiation occurs when ________.

a better product is provided within an industry segment

According to Porter's five forces model, which of the following firms would be least affected by the threat of substitutes?

a firm that sells the only drug for a disease

Online analytical processing (OLAP)

a second type of reporting application, is more generic than RFM. OLAP provides the ability to sum, count, average, and perform other simple arithmetic operations on groups of data.

MapReduce

a technique for harnessing the power of thousands of computers working in parallel

RFM analysis (recency, frequency, monetary)

a technique readily implemented with basic reporting operations, is used to analyze and rank customers according to their purchasing patterns.

What Are the Three Primary Activities in the BI Process?

acquire data, perform analysis, and publish results.

Hadoop

an open source program supported by the Apache Foundation that manages thousands of computers and that implements MapReduce

Static reports

are BI documents that are fixed at the time of creation and do not change.

Dynamic reports

are BI documents that are updated at the time they are requested.

Content management systems (CMS)

are information systems that support the management and delivery of documents including reports, Web pages, and other expressions of employee knowledge

A(n) ________ is a network of activities that generate value by transforming inputs into outputs.

business process

Superintelligence

capable of intelligence more advanced than human intelligence

Forces Driving AI Innovation

computing power, availability of large, cloud computing, device connectivity, AI techniques, AI applications

Reporting

create information about past performance; process structured data by sorting, grouping, summing, filtering, and formatting

Supervised Data Mining

data miners develop a model prior to the analysis and apply statistical techniques to data to estimate parameters of the model.

Push publishing

delivers business intelligence to users without any request from the users; the BI results are delivered according to a schedule or as a result of an event or particular data condition

Which of the following principles of competitive advantage is associated with product implementations?

differentiating service offerings

Possible Problems with Source Data

dirty data, missing values, inconsistent data, data not integrated, wrong granularity, too much data

The goal of Big Data analysis is to

find patterns and relationships in the enormous amounts of data generated from sources like social media sites or Web server logs

BI systems have the five standard components:

hardware, software, data, procedures, people

The automobile industry is characterized by many manufacturers and intense competition among them. According to Porter's five forces model, this statement illustrates ________.

high levels of rivalry

Porter's five forces model is used to assess ________.

industry structure

reporting application

is a BI application that inputs data from one or more sources and applies reporting operations to that data to produce business intelligence

BI server

is a Web server application that is purpose-built for the publishing of business intelligence.

data mart

is a data collection, smaller than the data warehouse, that addresses the needs of a particular department or functional area of the business.

data mart

is a subset of a data warehouse. A date mart addresses a particular component or functional area of the business.

Big Data

is a term used to describe data collections that are characterized by huge volume, rapid velocity, and great variety.

Structured data

is data in the form of rows and columns

Structured data

is data in the form of rows and columns. Most of the time structured data means tables in a relational database, but it can refer to spreadsheet data as well.

Business Intelligence

is defined as information containing patterns, relationships, and trends of various forms of data.

Artificial intelligence (AI)

is the ability of a machine to simulate human abilities such as vision, communication, recognition, learning, and decision making in order to achieve a goal.

Data mining

is the application of statistical techniques to find patterns and relationships among data for classification and prediction.

A measure

is the data item of interest.

BI analysis

is the process of creating business intelligence. The three fundamental categories of BI analysis are reporting, data mining, and Big Data.

Knowledge management (KM)

is the process of creating value from intellectual capital and sharing that knowledge with employees, managers, suppliers, customers, and others who need that capital

Data acquisition

is the process of obtaining, cleaning, organizing, relating, and cataloging source data

Reporting

is the process of sorting, grouping, summing, filtering, and formatting structured data.

Reporting analysis

is the process of sorting, grouping, summing, filtering, and formatting structured data.

BI servers provide two major functions:

management and delivery

Functions of a Data Warehouse

obtain data, cleanse data, organize and relate data, catalog data

Which of the following is a primary activity in the value chain?

receiving and distributing inputs to the product

Which of the following principles of competitive advantage is related to process implementations?

reducing costs

The BI application processes the data with

reporting applications, data mining applications, and Big Data applications

Three types of BI analysis

reporting, data mining, Big Data

The three fundamental categories of BI analysis are

reporting, data mining, and Big Data.

pull publishing

requires the user to request BI results

Which of the following is a support activity in the value chain of a firm?

setting up contractual arrangements for procurement

cluster analysis

statistical techniques identify groups of entities that have similar characteristics

Locking in customers by making it difficult or expensive for customers to move to another product is called establishing high ________.

switching costs

Strong AI

that can complete all of the same tasks a human can

Data mining

the application of statistical techniques to find patterns and relationships among data for classification and prediction

Big Data

to describe data collections that are characterized by huge volume, rapid velocity, and great variety. Considering volume, Big Data refers to data sets that are at least a petabyte in size, and usually larger.

Weak AI

which is focused on completing a single specific task

The data analysts

who work with a data warehouse are experts at data management, data cleaning, data transformation, data relationships, and the like. However, they are not usually experts in a given business function.