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Chapter 7: Business Intelligence and Decision Support Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 1 Learning objectives 1. 2. 3. 4. 5. Decision making Business intelligence Data mining Web analytics Dashboards and portals Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 2 Police department • • • • Data mining to deploy officers 47% decline in complaints 246% increase in recovered weapons $15,000 HR savings during shift Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 3 Business intelligence • Information for data-driven decision making • Includes software applications, technologies, and practices Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 4 Levels of decision making • Strategic • Tactical • Operational Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 5 BI sources Internal External • Transactional databases • Cloud • External databases • Data warehouses • Web sites, social networks, and text messages Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 6 Analyzing patterns • Online analytical processing • Statistics and modeling techniques • Text mining Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 7 Simulating and forecasting • What-if analysis • Goal seeking and optimization • Forecasting Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 8 Artificial intelligence Examples • Amazon.com • ALADDIN Challenge • Scammers • CAPTCHA • Jeopardy! Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 9 Artificial intelligence applications • Robotics • Expert systems • Neural nets Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 10 Web analytics • Website • Social media • E-commerce Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 11 Analyzing traffic • Analyzing software • Reaching goals • Ad effectiveness Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 12 Dashboards • Graphical user interface • Key performance indicators Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 13 Portals • Variety of information on one screen • Enterprise portal Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 14 Mashups • Aggregate data from multiple sources • Customizable web pages Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 15 Human element • Although humans choose intelligence, tools and interpretation, they have weaknesses • Must consider human motives in design and implementation of information systems Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 16 Summary 1. 2. 3. 4. 5. Decision making Business intelligence Data mining Web analytics Dashboards and portals Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 17 Insurance Fraud case • $68 billion lost in fraud each year • Fraud detection systems rely on rules and patterns detected by analytic engines • Analysts work closely with investigators to apply human judgment as they create new rules and follow data leads Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 18 New York Jets case • Command Center—four-panel touch screen • Real-time aggregated data • Fan dashboard Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 19 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 20