MIS Notes Sec 401
Weds 11th
Today is all about Business Intelligence
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Why does an Org need Business Intel.?
o Respond to threats and Opportunities
 How do we know something is a threat unless we track it
o Exploit the Big Data movement
 Any data of sufficient size that you need to rethink about the way
data is processed/exploited
 Info is freely available
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Big Data
 High Volume
o Unprecedented
 High Variety
o Structured and unstructured
 High Velocity
o Data changes and moves quickly
o Effective Planning is continuous
 Strategy is a multi-period game
 Competitive environment is constantly evolving, need to
analysis and react
Speculation with the future of the firm is the hallmark of a bankrupt business
intelligence when data is available and free
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Databases
o Provide efficient, stable and secure manner to store and retrieve
information
o Foundation
o Traditional database is an RDBMS
 Relational Database Management System
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Three levels
o Entities or Tables
 What we are storing the info about. Customers, sales,
populations
o Attributes, or Columns
 Any appropriate descriptive of an entity. Name, Rank, Number
o Row, or Records, or Tuples
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 The actual data that you are storing. “Greenwood” “MIS” “tuID”
o We do it this way because things were originally done with Giant Lists
 Flat files
 Hard to update
NORMALIZATION
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How do we manage these data
o Data resides in the database
 The “myfirm” database
o A database is on the server
 Server is a power machine with lots of memort\y/storage
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The data manipulation is done through database engine
o SQL server, Oracle
o The language we use to speak to the to the database is SQL
 Structured Query Language
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SQL
o SQL is simplest language
Four Commands
 Select –--- Retrieve data
 Alter—----Change the data
 Update- -- Change the data itself
 Drop ----- Get rid of data
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Benefits?
o Enable interactive websites
LOOOK AT SLIDES FOR THIS Databases and Data Warehouse And DATA MARTS
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Databases and Data Models and Data warehouses
Data Warehousing and Data Marts
Hypercube
Create multidimensional cube of info that summarize transactional data
across a verity of dimensions. A HYPERCube is is small one
OLAP vs OLTP
Online analytical Process --- Online transactional processing
~~~~Extended Scenario
~~~~~~~$200 Million tied up in inventory
~~~~Spend $1 million on new system to safely reduce inventory levels 10%\
~~~ New System would actually be a better job at reducing “stock outs”
~~~~~~~~Use that $20 million to put more salespeople out in the field
~~~~What could your organization do with that $20 million??
o Business Intelligence Components
o Three types of tools
 Information and knowledge discovery
 Business Analytics
o Info visualization
o Info and Knowledge Discovery
o Search for hidden relationships
o Hypotheses are tested against other models
OLAP
This is where the HYPER CUBES go to
o Regression
o OLAP Server- Main OLAP Component- Stores/holds HYPERCUBES
o Measures and dimensions
o Cubes slicing dicing
o Data managing
o Cube
o An OLAP data structure organizing data via multiple dimensions
o Cubes can have any number of dimensions
 Be careful most people cant comprehend after 3 dimensions
o Data Mining
o Uncovering hidden relationship. Used for discovering ‘hidden”
predictive relationships in the data
 Patterns, trends, rules
o Example identification of profitable customer segments or
fraud detection
o Any predictive models should be tested against “fresh” data
o Data mining algorithms are run against large data warehouses
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Data reduction helps to reduce the complexity of data and speed up
analysis
Textual Analysis Benefits
o Marketing- Learn about customers thoughts feelings and emotions.
o Operations- you can learn about product performance by analyzing
service records or customer calls
o Strategy- Gather competitive analyses
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Web Usage Mining
o Used by organizations such as Amazon.com
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See slide for WEB USAGE INFO
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Business Analytics
o BI apps to support human and automated decision-making.
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DSS
o Decision making support for recurring problems
o Used by managers
o Interactive decision aid
What if analysis
o Analyze results hypothetical changes
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