Document 15063067

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Course Name: Business Intelligence
Year: 2009
Alternate Information Contexts
17th Meeting
Source of this Material
(2).
Loshin, David (2003). Business Intelligence:
The Savvy Manager’s Guide. Chapter 12
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The Business Case
A lot of the bits of knowledge we can uncover through a BI application are not
actionable unless we have some idea of what to do once we have discovered
them. Making use of other data to tell us what to do with our knowledge not
only provides insight into how to convert knowledge into dollars-it also
continues to leverage our use of data in the first place. The kind of data uses
describe in t his chapter focus on the processes that can result in improving a
business.
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Psychographics and Demographics
By analyzing the demographics and psychographics of those people who
populate each market segment, the business analyst can try to formulate a
profile of characteristics that model or represent each segment. In this section
we look at those characteristic details that can help describe people as a
prelude to segmentation.
• Demographics
Demographic represent a quantitative statistical representation of the nonqualitative
aspects characteristics of a human population. Demographics include a person’s age,
marital status, gender, race, religion, ethnicity, income level, etc. Typically,
demographics are used to demonstrate the similarity between people.
•
Psychographics
Psychographics refer to the quantitative representation of the lifestyle characteristics
of a segmented population. Psychographics measure chosen attributes related to
lifestyle, such as what television programs one watches and where one likes to
vacation. Psychographics are often used to differentiate people within a population.
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Psychographics and Demographics (cont…)
•
Representational Profiles
The value of demographics and psychographics lies in the ability to combine the two
to form profiles. Demographic and psychographic data frequently are presented in a
summarized, comparative form.
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Geographic Data
Geographical data is largely available, and geographical information system
(GIS) tools will provide creative visualization methods for extracting actionable
knowledge from your data when it is enhanced with geographical data.
• Geographical Information Systems
A geographic information system is capable of assembling, storing, manipulating,
and displaying geographically referenced data. At the lowest level, a GIS presents
geographical information as a map, but the power of a GIS lies in the ability to
analyze data based on specific location information.
•
Using Geographic Data
Other application might require demographic or psychographic attribution. Certainly, a
large source of geographic attribution data is the U.S. Census Bureau, which
publishes the results of each ten-year census. This data details all sorts of
demographic information about geographic regions as small as a census tract.
•
Geographical Clusters
Enhancing the census data itself with data from other sources can provide significant
information about the kinds of people that live within a specific area.
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Web Behavior Intelligence
Web statistics, page visit logs, time stamps, etc., are all examples of data
created and collected at Web sites. This information can be used in the
creation of rich customer profiles, and the mining of these profiles for useful
behavioral patterns and the application of the knowledge inherent in those
pattern can help solve numerous business problems.
• User Actions
Whereas customer profiles describe what kind of people your users are, customer
behavior describes what those users do. Behavior is defined as a recognizable
pattern of actions, exhibited either by an individual user or by a set of users
interacting within the system. Actions are those activities that a user can perform
while navigating a Web site.
•
Customer Behavior Patterns
After having captured customer actions for a period of time, the information in the
user activity table will represent a collection of times series of the ways that all the ecommerce business visitors browse the site. We can analyze this time series data to
look for particular user behavior patterns.
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Management Issues
•
Privacy
The most significant issues associated with the use of personal demographics and
psychographics revolve around the privacy question.
•
Application Expertise and Training
If there is a belief that something like a GIS is going to be an ongoing component of
your BI strategy, it is a good idea either to hire someone who already has expertise
un the area or, even better, to provide significant training in the use of GIS Software.
•
The Suitable of Web Data
To best make use of Web log data, it may be necessary either to transform the data
after it has been captured or, better yet, to devise a more creative logging scheme.
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End of Slide
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