Chapter 1- Introduction to Business Intelligence
Terms in this set (47)
Simple Syndication (RSS) Feed Capabilitites
Business pressures - Responses- support model
1. business pressures from today's climate
2. Responses or actions taken by companies to counter the pressures or to take advantage of the opportunities
3. Computerized support that facilitates monitoring of the environment and enhances responses actions taken by the organizations.
Business environmental Factors that create pressure in the organization
1. Markets: strong competition, expanding global market, booming electronic markets online.
2. Consumer demands: Desire for customization, quality, diversity, speed of delivery, customers more powerful and less loyal
3. Technology: More innovations, new products and new services
4. Societal:Growing government regulations and deregulation, workforce more diversified, greater emphasis on sustainability
be reactive, anticipative, adaptive and proactive
Actions to counter pressures:
- Employ strategic planning
- Use new and innovative models
- Restructure business processes
- Participate in business alliances
- improve corporate information systems
- Improve partnership relations
Process of BI
Transformation of data to information, then to decisions and then finally to actions
Gartner used it in the 90's but roots 70's.
70's Reporting systems where static and two dimensional with no analytical capabilities.
1980 - Executive information systems concept emerged: capabilities introduced, dynamic multidimensional, reporting forecasting and prediction, trend analysis, drill down to details, status access and critical success factors.
1990- These capabilities appeared under the name of BI
Architecture of BI
Four major Components:
1. Data warehouse: with its source data. - Technical staff
2. Business Analytics: Collections of tools for manipulating, mining and analyzing the data in the warehouse. - business Users
3. Business Performance Management: (BPM): Monitoring and Analyzing performance.
4. User Interface: Browser - how you connect to the system.
1. Data warehouse
originally it only included historical data, now some data warehouses include current data as well for real time decision support.
2. Business Analytics:
Tools and techniques: Two major categories:
1. Reports and queries:
-Static and dynamic reporting
- all type of queries
- discovery of information
- multidimensional view
- Drill down to details
2. Data, text, and web mining and other sophisticated mathematical and statistical tools:
1. Data mining: Process of searching for unknown relationships or information in large databases or data warehouses, using intelligent tools such as neural computing, predictive analytics techniques, advanced statistical methods.
3. Business Performance Management(BPM) or CPM
Emerging portfolio of applications
Extends KPI by introducing the concept of management and feedback.
Embraces processes such as planning and forecasting as components of business strategy.
4. The User Interface: Dashboards and other information broadcasting tools
Dashboards: Comprehensive visual view of corporate performance measures(KPI), trends and exceptions. - They integrate information from different business areas
- they present graphs that show aerial performance compared to desired metrics. - glance view of the health of the organization.
Geographical information systems: Increasing role in decision support.
Styles of BI
Five styles are report delivery and alerting:
1. Enterprise reporting (dashboards and scorecards)
2. Cube analysis( Slice and dice Analysis)
3. Hoc Queries
5. Data Mining
Benefits of BI
Major benefit: the ability to provide accurate information when needed, including real time view of the corporate performance and its parts. - Important for decisions and strategic planning.
Cycle times are more compressed, faster and more informed then managers need the right info at the right time and at the right place.
Most common application areas of BI
- General reporting
- Marketing analyzing
- Planning and forecasting
- Financial consolidation
- Statutory reporting
- Profitability analysis
Automated decision making(ADS) or decision automation Systems(DAS)
Rule based system that provides solution, usually in one functional area.
- automate highly repetitive decisions.
-suitable for frontline employees who can see the customer information online and must make quicker decisions.
Ex: yield management : revenue optimization systems.
Management Science approaches
Model based solution to generic structured problems - Resource allocation, inventory level.
Event driven alerts (ADS example)
Warning or action that is activated when a predefined or unusual event occurs.
Ex: credit card companies, predictive analysis models to identify cases of possible fraud and alert predict card customers for verification.
BI and data warehouses follow a Cyclical process of intelligence creation and use
cyclical with a series of interrelated steps.
Analysis: Main step for converting raw data to decision supporting information.
once data warehouse is in place - general process of intelligence creation starts by identifying and prioritizing specific BI projects.
For each BI project in the portfolio - ROI and total cost of ownership as measures to estimate the cost benefit ratio.
Cost of the general project phases and as well as the cost of maintaining the application for the business user.
Benefit estimations - involve end user examinations of decision making impact. including measure reflecting benefits like cashflow acceleration.
Project prioritization process.
- Who should serve as decision makers involved in prioritizing BI projects.
Two critical partnerships for BI governance
1) partnership between functional area heads and or product/service area leaders
2) partnership between potential customers and providers.
Typical set of issues for BI governance team
Transaction processing Vs analytical processing
Constantly involved in handling updates to what we might call operational databases.
ex: ATM withdrawal transaction - Reduce our bank balance accordingly.
Online Transaction Processing: (OLTP): handle a company's routine ongoing business.
Online analytical processing (OLAP):
Successful BI implementation:
one characteristic of a company that excels in its approach to BI is proper appreciation or different classes of potential users.
Appropriate planning and alignment with the business strategy:
The fundamental reason for investing in BI must be aligned with the company's strategy. It can not be a simple technical exercise for the information systems department. It has to serve as a way to change the manner the company conducts business by improving its business processes and transforming decision making processes to be more data driven.
Planning and execution into
business, organization, functionality and l infrastructure components.
Critical implementation success is the integration of diverse BI projects.
BICC (BI competency center)
- Can serve some or all of the following functions:
Demonstrate how BI is clearly linked to strategy and execution of strategy.
- Can serve to encourage interaction between the potential business user communities and the IS organization.
- It can help stakeholders see how BI can play an important role.
Traditional BI systems
used a large volume of static data that has been extracted, cleansed, and loaded into a data warehouse to produce reports and analysis. - However the need its not just reporting as users need business monitoring, performance analysis and an understanding on why things are happening.
Approaches to Real-time Bi:
1. Uses the traditional DW. in whichproducts from innnovative BI platform providers provide a service oriented near teal time solution that populates the the DW much faster than the typical nightly extract/transfer/load(ETL) batch update does.
2. Business Activity management (BAM): adopted by pureplay BAM and or hybrid BAM-Middleware providers. it bypasses the DW entirely and uses web sevices or other monitoring means to discover key business
completely pre programmed tools
Justification and cost benefits analysis
The direct and intangible benefits need to be identified
Major tools and techniques of business intelligence
1. Data Management
2. Reporting and status tracking
4. Strategy and performance Management
5. Business Analytics
6. Social Networking
7. New tools for massive data mining
Automated Decision support
Geographical information system (GIS)
Geographical Positioning System (GPS)
online analytical processing (OLAP)
YOU MIGHT ALSO LIKE...
Test Preparation TOEIC, SAT, TOEFL
Lsu ISDS 2001 TEST 1
ch 1 Overview of business intelligence, analytics, and decision support
MIS 874 - Info Technology Mgmt - Chapter 12
OTHER SETS BY THIS CREATOR
Group Dynamic and team Management
TEST BANK - CHAPTER 15 - MONETARY POLICY
TESTBANK - CHAPTER 13
THIS SET IS OFTEN IN FOLDERS WITH...
MIS 390 exam 3
Business Intel Questions