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Business Intelligence Systems

Chapter 9

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Study Questions

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Q1: How do organizations use business intelligence (BI) systems?

Q2: What are the three primary activities in the BI process?

Q3: How do organizations use data warehouses and data marts to acquire data?

Q4: What are three techniques for processing BI Data?

Q5: What are the alternatives for publishing BI?

 How does the knowledge in this chapter help you?

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Q1: How Do Organizations Use Business Intelligence (BI) Systems?

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Structure of Business Intelligence System

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Sample of Uses of Business Intelligence

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What Are Typical Uses for BI?

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• Identifying changes in purchasing patterns – Important life events change what customers buy

• BI for Entertainment – Netflix has data on watching, listening, and rental habits – Classify customers by viewing patterns

• Just-in-Time Medical Reporting – Real-time injection notification services to doctors during

exams

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Q2: What Are the Three Primary Activities in the BI Process?

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

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Using Business Intelligence to Find Candidate Parts at Falcon Security

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• Candidate parts – Provided by vendors who agree to make part design files

available for sale – Purchased by larger customers – Frequently ordered parts – Ordered in small quantities – Simple in design (easier to 3D print)

• Part weight and price surrogates for simplicity

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Acquire Data: Extracted Order Data

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• Query Sales (CustomerName, Contact, Title, Bill Year, Number Orders, Units, Revenue, Source, PartNumber) Part (PartNumber, Shipping Weight, Vendor)

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Sample Extracted Data: Part Table

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Joining Order Extract and Filtered Parts Tables

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Sample Orders and Parts View Data

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Creating Customer Summary Query

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Customer Summary

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Qualifying Parts Query Design

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Publish Results: Qualifying Parts Query Results

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Publish Results: Sales History for Selected Parts

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Q3: How Do Organizations Use Data Warehouses and Data Marts to Acquire Data?

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• Data Warehouse Functions – Obtain data from operational, internal and external databases – Cleanse data – Organize and relate data – Catalog data using metadata

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Components of a Data Warehouse

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Examples of Consumer Data That Can Be Purchased

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Possible Problems with Source Data

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Curse of dimensionality

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Data Warehouses Versus Data Marts

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

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Q4: What are Three Techniques for Processing BI Data?

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

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Reporting Analysis

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• Process of sorting, grouping, summing, filtering, and formatting structured data

• Structured data – Data in rows and columns like tables

• Exception reports – Produced when something out of predefined bounds occurs

• Printed and dynamic reports

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Data Mining

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• Application of statistical techniques to find patterns and relationships among data for classification and prediction

• Combined discipline of statistics, mathematics, artificial intelligence, and machine-learning

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Two Broad Categories of Data Mining

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1. Unsupervised procedures – Does not start with a priori hypothesis or model – Hypothesized model created afterward based on analytical

results to explain patterns found  Example: Cluster analysis

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Supervised Data Mining

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• Uses a priori model to compute outcome of model

• Prediction, such as multiple linear regression • Ex: CellPhoneWeekendMinutes

= (12 + (17.5*CustomerAge)+(23.7*NumberMonthsOfAccount) = 12 + 17.5*21 + 23.7*6 = 521.7

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BigData

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• Huge volume – Petabyte and larger

• Rapid velocity – Generated rapidly

• Great variety – Structured data, free-form text, log files, graphics, audio, and

video

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MapReduce Processing Summary

Google search log broken into pieces

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Google Trends on the Term Web 2.0

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Hadoop

• Open-source program supported by Apache Foundation • Manages thousands of computers • Implements MapReduce

– Written in Java • Amazon.com supports Hadoop as part of EC3 cloud offering • Pig query language platform for large dataset analysis

– Easy to master – Extensible – Automatically optimizes queries on map-reduce level

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Q5: What Are the Alternatives for Publishing BI?

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What Are the Two Functions of a BI Server?

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How Does the Knowledge in This Chapter Help You?

• Business intelligence a critical skill

• Enables imagining innovative uses for data your employer generates and know some of constraints of such use

• Digital marketing #1 priority for technology investment

• At PRIDE, knowledge of this chapter helps understand possible uses for exercise data

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Ethics Guide: Unseen Cyberazzi

• Data broker or Data aggregator – Acquires and purchases consumer and other data from

public records, retailers, Internet cookie vendors, social media trackers, and other sources

– Used to create business intelligence to sell to companies and governments

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Ethics Guide: Unseen Cyberazzi (cont'd)

• Cheap cloud processing makes processing consumer data easier, less expensive

• Processing happens in secret

• Data brokers enable you to view data stored about you, but: – Difficult to learn how to request your data – Torturous process to file for it – Limited data usefulness

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Ethics Guide: Unseen Cyberazzi (cont'd)

• Do you know what data is gathered about you? What is done with it?

• Have you thought about conclusions data aggregators, or their clients, could make based on your use of frequent buyer cards?

• Concerned about what federal government might do with data it gets from data aggregators?

• Where does all of this end?

• What will life be like for your children or grandchildren?

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Guide: Semantic Security

1. Unauthorized access to protected data and information • Physical security Passwords and permissions Delivery system must be secure

2. Unintended release of protected information through reports and documents

3. What, if anything, can be done to prevent what Megan did?