Chapter 9 Business Intelligence Systems
RFM Analysis
A technique readily implemented with basic reporting operations, is used to analyze and rank customers according to their purchasing patterns. RFM considers (R) recently, (F) frequency, and (M) money associated to customer orders.
Three Primary Activities in the BI Process (List)
Acquire Data, perform analysis, and publish results.
Process of BI
Acquire, Analyze, Report, Publish.
Components of a D.W. subnote
An organization might use Oracle for its operational processing, but use SQL Server for its data warehouse. Other organizations use SQL Server for operational processing, but use DBMSs from statistical package vendors such as SAS or SPSS in the data warehouse.
Regression analysis
Analysis which measures the effect of a set of variables on another variable. Is an example of Supervised Data mining
Business Intelligence (BI) System
Are Information Systems that process operational, social, and other data to identify patterns, relationships, trends for use by business professionals.
Neural Networks
Are another popular supervised data mining application used to predict values and make classifications such as "good or poor prospect" customers.
Data Warehouses
Are central repositories of integrated data from one or more disparate sources. Current and historical data is stored in one single place. This data is used for creating analytical reports for the knowledge workers throughout the enterprise.
Components of Reporting Applications
Create meaningful information from disparate data sources. Deliver information to user on time. 5 basic operations
Project Management
Create partnerships between ARES users and health clubs. Expand Geographically.
Supervised Data Mining
Data miners develop a model prior to the analysis and apply statistical techniques to data to estimate parameters of the model. Prediction such as regression analysis.
Push Publishing
Delivers BI to users without any request from the users
Informing
Examples: In what ways are client using the system? How do sales compare to sales forecast?
Problem solving
How can revenue be increased from health clubs? How can we save money by rerouting drone flights?
Typical BI Applications
Identifying changes in Purchasing Patterns-how life events change customer spending, BI for entertainment-Netflix data on watching, listening, etc., Just-In-time medical reporting-Analyze data on past crimes
How do organizations use BI?
Informing, Deciding, Problem solving, and project management.
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.
Online Analytical Processing (OLAP)
Is a more generic reporting application that provides ability to sum, count, average and do other mathematical operations on groups of data. Helps to answer multi dimensional analytical(MDA) queries swiftly.
Data Mart
Is a subset of a data warehouse. A _________ address a particular component or functional area of the business.
Data Mining
Is the application of statistical techniques to find patterns and relationships among data for classification and prediction.
Functions of a data Warehouse
Obtain data, Cleanse data, Organize and relate data, Catalog data.
Publish results
Process of delivering business intelligence to the knowledge workers who need it
Granularity
Refers to the level of detail represented by the data.
Pull Publishing
Requires the user to request BI results.
Basic Reporting Operations
Sorting, Filtering, Grouping, Calculating, and Formatting.
Cluster Analysis
Statistical technique to identify groups of entities with similar characteristics; used to find groups of similar customers from customer order and demographic data. Example of unsupervised data mining.
Source disciplines of data mining
Statistics/Math, Huge Database, Computer processing and storage, Sophisticated marketing, finance, and other business professionals, data management technology, artificial intelligence learning machine.
How Business intelligence application works
Take data from operational DB's, social and purchased data, and employee knowledge. Analyzes data through reporting, data mining, knowledge management. What comes out is Business Intelligence
Machine Learing
The extraction of knowledge from data based on algorithms created from training data.
BI Analysis
The process of creating business intelligence. The four fundamental categories of ___________ are reporting, data mining, Big Data, and knowledge management.
Data acquisition
The process of obtaining, cleaning, organizing, relating, and cataloging source data.
BI Application
The software component of a BI system.
Business Intelligence
These Patterns, relationships, trends, and predictions are referred to as ___________
Drill down
This term means to further divide the data into more detail.
Market-Basket analysis
Unsupervised data mining technique. Identifies sales patterns in large volumes of data, Identifies what products customers tend to buy together, Computers probabilities or purchases, Identify cross-selling opportunities.
How does a Data Mart relate to a Data Warehouse
Users in the data mart obtain data that pertain to a particular business function from the data warehouse
Deciding
Which health club is closest to users? What drones and equipment need maintenance?
Unsupervised data mining
analysts do not create a model of hypothesis before running the analysis. (no priori hypothesis or model). Finding obtained solely by data analysis. Hypothesized model created to explain patterns found. Example, Cluster analysis
Data analysts who work with a data warehouse
are experts at data management, data cleaning, data transformation, data relationships etc. However, they are not usually experts in a given business function.
Dimension
is a characteristic of a measure.
Artificial Intelligence (AI)
is the ability of a machine to simulate human abilities such as vision, communication, recognition, learning, and decision making.
Measure
is the data item of interest
