kroenke_umis3e_ch09edi

8/10/2019 kroenke_umis3e_ch09edi

1/40

Business Intelligence

SystemsDavid Kroenke

Using MIS 3e

Chapter 9


2/40

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 9-2

Study Questions

Q1 Why do organizations need business

intelligence?

Q2 What business intelligence systems are available?

Q3 What are typical reporting applications?

Q4 What are typical data-mining applications?

Q5 What is the purpose of data warehouses and data marts?

Q6 What are typical knowledge-management applications?

Q7 How are business intelligence applications delivered?

Q8 2020?


3/40


Why Do Organizations Need

Business Intelligence?

Information systems generate enormous amountsof operational data that contain patterns,

relationships, clusters, and other information that

can facilitate management, especially planning and

forecasting. Business intelligence systems producesuch information from operational data.

Data communications and data storage are

essentially free, enormous amounts of data are

created and stored every day. 12,000 gigabytes per person of data, worldwide

in 2009


4/40


How Big Is an Exabyte?
http://en.wikipedia.org/wiki/Exabytehttp://en.wikipedia.org/wiki/Exabyte


5/40


Study Questions

Q1 Why do organizations need business intelligence?

Q2 What business intelligence systems are

available?






Q8 2020?


6/40


Business Intelligence (BI) Tools

BI systems provide valuable information for decision making.(BI video)

Three primary BI systems:

1. Reporting Tools

Integrate data from multiple systems

Sorting, grouping, summing, averaging, comparing data

2. Data-mining Tools

Use sophisticated statistical techniques, regression analysis,

and decision tree analysis

Used to discover hidden patterns and relationships

Market-basket analysis
http://www.webopedia.com/TERM/B/Business_Intelligence.htmlhttp://www.webopedia.com/TERM/B/Business_Intelligence.htmlhttp://media.pearsoncmg.com/ph/bp/bp_akamai/mymislab/DMK2_9-1.htmlhttp://en.wikipedia.org/wiki/Data_mininghttp://en.wikipedia.org/wiki/Data_mininghttp://en.wikipedia.org/wiki/Data_mininghttp://en.wikipedia.org/wiki/Data_mininghttp://media.pearsoncmg.com/ph/bp/bp_akamai/mymislab/DMK2_9-1.htmlhttp://www.webopedia.com/TERM/B/Business_Intelligence.htmlhttp://www.webopedia.com/TERM/B/Business_Intelligence.html


7/40


Business Intelligence Tools

3. Knowledge-management tool Create value by collecting and sharing human

knowledge about products, product uses,

best practices, other critical knowledge

Used by employees, managers, customers,

suppliers, others who need access to

company knowledge
http://www.webopedia.com/TERM/B/Business_Intelligence.htmlhttp://en.wikipedia.org/wiki/Knowledge_management_systemhttp://en.wikipedia.org/wiki/Knowledge_management_systemhttp://en.wikipedia.org/wiki/Knowledge_management_systemhttp://en.wikipedia.org/wiki/Knowledge_management_systemhttp://www.webopedia.com/TERM/B/Business_Intelligence.html


8/40


Study Questions








Q8 2020?


9/40


Basic Reporting Operations

Reporting tools produce information fromdata using five basic operations:

Sorting

Grouping

Calculating

Filtering

Formatting


10/40


List of Sales Data


11/40


Sales Data,

Sorted by

Customer Name

and Groupedby Orders and

Purchase

Amount


12/40


Sales Data Filtered to Show

Repeat Customers and Formatted

for Easier Understanding


13/40


RFM Analysis

RFM analysisallows you to analyze and rankcustomers according to purchasing patterns as this

figure shows.

R = how recently a customer purchased your

products F = how frequently a customer purchases your

products

M = how much money a customer typically

spends on your products
http://www.dbmarketing.com/articles/Art149.htmhttp://www.dbmarketing.com/articles/Art149.htm


14/40


Online Analytical Processing

(OLAP)

OLAP, a second type of reporting tool, ismore generic than RFM.

OLAP provides the ability to sum, count,

average, and perform other simplearithmetic operations on groups of data.

Remarkable characteristic of OLAP reports

is that they are dynamic. The viewer of the

report can change reports format, hencethe term online.
http://www.olapcouncil.org/http://www.olapcouncil.org/


15/40


How Are OLAP Reports Dynamic?

OLAPreports Simple arithmetic operations on data

Sum, average, count, and so on

Dynamic User can change report structure

View online

Measure Data item to be manipulatedtotal sales, average cost

Dimension Characteristic of measurepurchase date, customer

type, location, sales region
http://en.wikipedia.org/wiki/OLAPhttp://en.wikipedia.org/wiki/OLAP


16/40


OLAP Product Family

and Store Type


17/40


OLAP Product Family and

Store Location by Store Type


18/40


Role of OLAP Server

and OLAP Database


19/40


Study Questions





Q5 What is the purpose of data warehouses and data marts?Q6 What are typical knowledge-management applications?


Q8 2020?


20/40


Convergence of Disciplines and

Information Technology


21/40


Study Questions





Q5 What is the purpose of data warehouses anddata marts?



Q8 2020?


22/40


What Is the Purpose of Data

Warehouses and Data Marts?

Purpose: (video) To extract and clean data from various

operational systems and other sources

To store and catalog data for BIprocessing

Extract, clean, prepare data

Stored in data-warehouse DBMS
http://media.pearsoncmg.com/ph/bp/bp_akamai/mymislab/DMK2_9-2.htmlhttp://media.pearsoncmg.com/ph/bp/bp_akamai/mymislab/DMK2_9-2.html


23/40


Components of a Data Warehouse


24/40


Example Typical of Customer

Credit Data


25/40


Problems with Operational Data

Dirty datamistakes in spelling or punctuation,incorrect data associated with a field, incomplete oroutdated data or even data that is duplicated in thedatabase.
http://www.webopedia.com/TERM/d/dirty_data.htmlhttp://www.webopedia.com/TERM/d/dirty_data.html


26/40


Data Warehouses vs. Data Marts

Data mart is a collection of data (video) Created to address particular needs

Business function

Problem

Opportunity Smaller than data warehouse

Users may not have data management expertise

Need knowledgeable analysts for specific function

Data extracted from data warehouse for afunctional area
http://media.pearsoncmg.com/ph/bp/bp_akamai/mymislab/DMK2_9-3.htmlhttp://media.pearsoncmg.com/ph/bp/bp_akamai/mymislab/DMK2_9-3.html


27/40


Components of a Data Mart


28/40


Study Questions





Q5 What is the purpose of data warehouses and data marts?Q6 What are typical knowledge management

applications?


Q8 2020?


29/40


Knowledge Management (KM)

The process of creating value from

intellectual capital and sharing that

knowledge with employees, managers,

suppliers, customers, and others who need it. Reporting and data mining are used to create

new information from data, knowledge-

management systems concern the sharing of

knowledge that is known to exist.


30/40


Primary Benefits of KM

1. KM fosters innovation by encouraging the free flow of ideas.2. KM improves customer service by streamlining response time.

3. KM boosts revenues by getting products and services to

market faster.

4. KM enhances employee retention rates by recognizing the

value of employees knowledge and rewarding them for it.

5. KM streamlines operations and reduces costs by eliminating

redundant or unnecessary processes.

6. KM preserves organizational memory by capturing and storing

the lessons learned and best practices of key employees.


31/40


Sharing of Document Content and

Employee Knowledge

Sharing Document Content

Collaboration systems are concerned with

document creation and change

management, KM applications areconcerned with maximizing content use.


32/40


33/40


Two Typical Knowledge-

Management Applications

RSS(Real Simple Syndication)a standard for subscribing tocontent sources on Web sites. An RSS Reader program helps

users to:

Subscribe to content sources.

Periodically check sources for new or updated content through RSS

feeds. Place content summaries in an RSS inbox with link to the full

content.

Think of RSS as an email system for content

Data source must provide what is termed an RSS feed, which

simply means that the site posts changes according to one of theRSS standards.
http://www.whatisrss.com/http://www.whatisrss.com/


34/40


Study Questions






Q7 How are business intelligence applications

delivered?

Q8 2020?


35/40


How Are Business Intelligence

Applications Delivered?


36/40


BI Portals

Portals might provide common data such as localweather, and links to company news, and to BI

application results such as reports on daily sales,

operations, new employees, and results of data-

mining applications. Authorized users are allowed to place reports,

data-mining results, or other BI application results

on their customized pages.

BI application server pushesthe subscribedresults to the user.
http://www.biportal.org/Default.aspx?pageId=90410&mode=PostView&bmi=116408http://www.biportal.org/Default.aspx?pageId=90410&mode=PostView&bmi=116408


37/40


What Are the Delivery Functions

of a BI Server?

Track authorized users

Track the schedule for providing results to users

Issue exception alerts that notify users of an exceptional event

Procedures used depends on the nature of the BI system

Procedures tend to be more flexible than those in anoperational system because users of a BI system tend to be

engaged in work that is neither structured nor routine

Procedures are determined by unique requirements of users

BI results can be delivered to any device, such as computers,PDAs, phones, other applications such as Microsoft Office, and

as a SOA service


38/40


Study Questions







Q8 2020?


39/40


2020?

Through data mining, companies, known as data aggregators,will know more about your purchasing psyche than you, your

mother, or your analyst.

If you use your card to purchase secondhand clothing, retread

tires, bail bond services, massages, casino gambling or betting

you alert the credit card company of potential financialproblems and, as a result, it may cancel your card or reduce

your credit limit.

Absent laws to the contrary, by 2020 your credit card data will

be fully integrated with personal and family data maintained by

the data aggregators (like Acxiom and ChoicePoint). By 2020, some online retailers will know a lot more about you,

data aggregators, and most consumers purchases than well

know ourselves.


40/40

C i ht 2011 P Ed ti I P bli hi P ti H ll 9 40

All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted, in any form or by any means, electronic,

mechanical, photocopying, recording, or otherwise, without the prior written

permission of the publisher. Printed in the United States of America.Copyright 2011 Pearson Education, Inc.

Publishing as Prentice Hall

Documents

kroenke_umis3e_ch09edi