Chapter 9 Business Intelligence Systems

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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


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