Business Intelligence
COURTMCLARKE777
bdt6e_businessplugin_b10_instructor.pdf
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Business Plug-In B10
Business Intelligence
10-2
LEARNING OUTCOMES
1. Compare tactical, operational, and strategic BI
2. Describe the three common forms of data-mining analysis?
3. Describe the four categories of BI business benefits
10-3
BUSINESS INTELLIGENCE
O Business intelligence (BI) – applications and technologies used to gather, provide access to, and analyze data and information to support decision-making efforts
O Parallels between the challenges in business and challenges of war
O Collecting information
O Discerning patterns and meaning in the information
O Responding to the resultant information
10-4
OPERATIONAL, TACTICAL, AND STRATEGIC BI
O Claudia Imhoff, president of Intelligent
Solutions, divides the Spectrum of data
mining analysis and business intelligence
into three categories:
O Operational
O Tactical
O Strategic
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OPERATIONAL, TACTICAL, AND STRATEGIC BI
10-6
OPERATIONAL, TACTICAL, AND STRATEGIC BI
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BI’s Operational Value O Richard Hackathorn’s graph demonstrating the
value of operational BI
10-8
BI’s Operational Value
O The key is to shorten the latencies so that
the time frame for opportunistic influences
on customers, suppliers, and others is
faster, more interactive, and better
positioned
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DATA MINING
O Data mining – process of analyzing data to extract information
O Data-mining tools – use a variety of techniques to find patterns and relationships in large volumes of information O Classification
O Estimation
O Affinity grouping
O Clustering
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DATA MINING
O Common forms of data-mining analysis
capabilities include:
O Cluster analysis
O Association detection
O Statistical analysis
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Cluster Analysis
O Cluster analysis – a technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible
O CRM systems depend on cluster analysis to segment customer information and identify behavioral traits
10-12
Association Detection
O Association detection – reveals the degree to which variables are related and the nature and frequency of these relationships in the information
O Market basket analysis
10-13
Statistical Analysis
O Statistical analysis – performs such functions
as information correlations, distributions,
calculations, and variance analysis
O Forecast – predictions made on the basis of
time-series information
O Time-series information – time-stamped
information collected at a particular frequency
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BUSINESS BENEFITS OF BI
O Benefits of BI include:
O Single Point of Access to Information for All
Users
O BI across Organizational Departments
O Up-to-the-Minute Information for Everyone
10-15
Four Primary Categories of BI Benefits
O Four main categories:
O Quantifiable benefits
O Indirectly quantifiable benefits
O Unpredictable benefits
O Intangible benefits
