Business Analytics Overview
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Questions and Answers

What is the primary focus of business analytics?

  • Collecting data for business intelligence
  • Developing actionable recommendations from historical data (correct)
  • Implementing organizational policies
  • Training managers in decision-making skills

Which of the following best describes business intelligence?

  • The process of conducting employee training sessions
  • A method for financial forecasting
  • A broad category for data gathering and analysis (correct)
  • A specific tool for data storage

Which phase comes first in the decision-making process?

  • Implementation phase
  • Choice phase
  • Intelligence phase (correct)
  • Design phase

What role involves the manager acting as a mentor or team leader?

<p>Interpersonal role (B)</p> Signup and view all the answers

What is a key aspect of the design phase in decision-making?

<p>Validating a model using test data (D)</p> Signup and view all the answers

How is a manager's success typically measured?

<p>Ratio of inputs to outputs for which they are responsible (C)</p> Signup and view all the answers

Which of the following is NOT considered one of the basic roles performed by managers?

<p>Advisory roles (C)</p> Signup and view all the answers

What does the choice phase of decision-making involve?

<p>Selecting a solution to resolve the problem (D)</p> Signup and view all the answers

What is the primary function of prescriptive analytics?

<p>To optimize production and scheduling (C)</p> Signup and view all the answers

In prescriptive analytics, which two additional components are necessary alongside predictive analytics?

<p>Actionable data and a feedback system (D)</p> Signup and view all the answers

How does Fandango utilize prescriptive analytics?

<p>To change ticket prices every hour (C)</p> Signup and view all the answers

What tool allows organizations to display analytical results in visual formats?

<p>Dashboards (A)</p> Signup and view all the answers

What key feature distinguishes a Geographic Information System (GIS)?

<p>It includes a geocoding process (A)</p> Signup and view all the answers

What is the primary purpose of descriptive analytics?

<p>To summarize and understand past behaviors (C)</p> Signup and view all the answers

Which of the following best describes decision support systems (DSSs)?

<p>Interactive systems combining models and data for problem analysis (B)</p> Signup and view all the answers

What does predictive analytics primarily focus on?

<p>Detecting patterns to forecast future outcomes (B)</p> Signup and view all the answers

What defines prescriptive analytics in comparison to descriptive and predictive analytics?

<p>It recommends actions and assesses their outcomes (B)</p> Signup and view all the answers

Which analysis method examines how sensitive an output is to changes in an input?

<p>Sensitivity analysis (A)</p> Signup and view all the answers

Which tool is commonly used in descriptive analytics applications?

<p>Decision support systems (C)</p> Signup and view all the answers

What is the first operation that data mining can perform?

<p>Identifying unknown patterns (A)</p> Signup and view all the answers

What unintended consequence did Target face from its predictive analytics?

<p>Public relations issues due to targeted marketing for pregnant women (D)</p> Signup and view all the answers

What analysis method seeks to calculate necessary inputs to achieve a specific output?

<p>Goal-seeking analysis (D)</p> Signup and view all the answers

Which of the following is NOT a tool used in predictive analytics?

<p>Multidimensional analysis (D)</p> Signup and view all the answers

What is the primary reason decision making has become more complex in organizations?

<p>Increased number of alternatives due to technology and e-business (B)</p> Signup and view all the answers

Which type of decision involves the most standard solutions and structured processes?

<p>Structured decisions (B)</p> Signup and view all the answers

What is a common approach to deal with the issue of data inconsistency in business analytics?

<p>Creating a data mart to store necessary data (A)</p> Signup and view all the answers

What do operational control decisions primarily focus on?

<p>Executing specific tasks efficiently and effectively (D)</p> Signup and view all the answers

Which phase is the first step in the business analytics process?

<p>Defining the business problem (D)</p> Signup and view all the answers

Which type of decision-making is particularly notable for relying on human intuition and judgment?

<p>Unstructured decisions (A)</p> Signup and view all the answers

What should organizations focus on to successfully implement enterprise-wide analytics?

<p>Developing infrastructure to support analytics needs (A)</p> Signup and view all the answers

What is a common outcome organizations seek from business analytics?

<p>Actionable decisions based on historical data (C)</p> Signup and view all the answers

Which managerial decision category is associated with long-range goals and resource allocation?

<p>Strategic planning (C)</p> Signup and view all the answers

What type of data is gathered through individuals' activities on social media websites?

<p>Social media data (C)</p> Signup and view all the answers

Flashcards

Business Analytics (BA)

Using data insights to make actionable decisions or recommendations.

Business Intelligence (BI)

A set of applications, technologies, and processes for gathering, analyzing, and utilizing data for better business decisions.

Management Process

Using resources to achieve organizational goals.

Manager's Role

Interpersonal, informational, and decisional roles in an organization.

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Decision Making Process

Systematic steps in choosing from alternatives.

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Intelligence Phase

Identifying and defining a problem or opportunity in decision making.

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Design Phase

Developing a model to address a situation using simplified assumptions.

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Choice Phase

Selecting the best solution amongst various options.

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Structured Decisions

Routine and repetitive problems with existing standard solutions, like inventory control.

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Unstructured Decisions

Complex, "fuzzy" problems without readily available solutions, often relying on intuition and judgment. Examples: new service offerings, hiring executives.

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Semi-structured Decisions

Problems requiring a mix of standard procedures and individual judgment.

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Operational Control

Efficient execution of specific tasks. (example: managing employees)

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Management Control

Efficient use of resources to achieve organizational goals.

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Strategic Planning

Long-term goals and policies for growth and resource allocation

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Data Warehousing

A centralized repository of data for enterprise-wide analytics

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Data Mart

Smaller data repositories focused on specific departments or functions.

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ETL (Extract, Transform, Load)

Process of integrating and cleaning data from various sources into a data warehouse.

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Prescriptive Analytics

A type of analytics that suggests multiple possible future outcomes based on actions and provides recommendations for optimal decisions.

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Prescriptive Analytics Components

Prescriptive analytics utilizes two key components: actionable data and a feedback system to track the outcomes of actions taken.

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Data Visualization

The process of presenting data in visual formats like charts and graphs to make it easier to understand and analyze.

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Dashboard

A user-friendly interface that provides quick access to timely information, management reports, and detailed data.

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Geographic Information System (GIS)

A system that uses digitized maps to capture, integrate, manipulate, and display data with specific geographic locations.

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OLAP (Online Analytical Processing)

Analyzes data in a multi-dimensional format, allowing users to slice, dice, and drill down.

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Data Mining

Finding valuable patterns and predicting future trends within datasets.

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Predictive Analytics

Uses past data to predict future outcomes and trends.

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Sensitivity Analysis

Examines how an output changes when one input is modified.

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What-if Analysis

Predicts the impact of changing assumptions.

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Goal-seeking Analysis

Calculates inputs needed to reach a desired output.

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Business Analytics Tools

Software and techniques used to analyze business data.

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Decision-support System

Combines data with models to analyze business problems.

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Study Notes

Business Analytics and Decision Making

  • Business analytics (BA) uses historical data to create actionable decisions. It employs various tools to develop descriptive, predictive, and prescriptive models, then communicates these results to managers.
  • Business intelligence (BI) is a broader category of applications, technologies, and processes for data analysis to aid decision-making.
  • Management is a process using resources to achieve organizational goals. Managerial success is measured by the ratio of inputs to outputs.
  • Managers perform interpersonal (figurehead, leader, liaison), informational (monitor, disseminator, spokesperson, analyzer), and decisional (entrepreneur, disturbance handler, resource allocator, negotiator) roles.

Decision-Making Process

  • Decision-making involves choosing from alternatives. The process starts with intelligence (defining the problem), design (building a model), validation (testing the model), and criteria setting (evaluating potential solutions).
  • Decision choices are then implemented. Managers struggle with increased alternatives, time constraints, uncertainty, and accessing information efficiently.
  • Decisions can be structured (routine problems with standard solutions), unstructured (complex problems with no clear solutions), or semi-structured (a mix of structured and unstructured elements).

Decision Support and Business Analytics Framework

  • A decision support matrix combines problem structure (structured, unstructured, semi-structured) with decision nature (operational control, management control, strategic planning) to categorize decisions by responsibility level.
  • Business analytics (BA) applies data analysis techniques to support organizational needs. This varies from smaller organizations using Excel to larger organizations with enterprise-wide BAs.
  • BA targets include individual applications, enterprise-wide infrastructure, and organizational transformation.

Business Analytics Process

  • The business analytics process starts with defining a business problem. This involves understanding organizational goals and objectives, as well as processes to be improved.
  • Data management involves processing data from various sources (POS, clickstream, social media, sensors) into data marts/warehouses. The ETL (extract, transform, load) process is crucial.

Types of Analytics

  • Descriptive analytics summarizes past events. Examples include inventory levels, customer spending, and sales trends. Tools include OLAP (online analytical processing), data mining, decision support systems (DSS), and statistical processes. DSSs use models and data to analyze data interactively to address semi-structured problems.
  • Predictive analytics forecasts future outcomes based on past data. Statistical procedures like regression are used to forecast.
  • Prescriptive analytics recommends courses of action. It uses predictive analysis with actionable data and feedback to optimize outcomes.

Presentation Tools

  • Presentation tools (charts, graphs, dashboards) visually communicate analytical results. Dashboards provide access to timely information and management reports, and support exception reporting and data drilling.
  • Geographic information systems (GIS) are used for capturing, integrating, manipulating, and displaying data using maps. It utilizes geocoding to represent geographic locations.

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Description

This quiz explores fundamental concepts in business analytics and decision-making. Test your knowledge on business intelligence, the phases of decision-making, and managerial roles. Ideal for students and professionals looking to sharpen their understanding of these crucial business elements.

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