Week No. 8-Topic11-Chapter6-RefBook.pptx

Chapter 6: Enhancing Business Intelligence Using Information Systems A key to effective management is high-quality and timely information to support decision making Copyright © 2016 Pearson Education, Ltd. 6-1 Chapter 6 Learning Objectives Business Intelligence • Describe the concept of business...

Chapter 6: Enhancing Business Intelligence Using Information Systems A key to effective management is high-quality and timely information to support decision making Copyright © 2016 Pearson Education, Ltd. 6-1 Chapter 6 Learning Objectives Business Intelligence • Describe the concept of business intelligence and how databases serve as a foundation for gaining business intelligence. Business Intelligence Components • Explain tools for enhancing decision making: business intelligence, advance analytics, and geographical information system. Copyright © 2016 Pearson Education, Ltd. 6-2 Business Intelligence • Business intelligence (BI) comprises the strategies and technologies used by enterprises for the data analysis of business information. • Business intelligence (BI) refers to tools and techniques for analyzing and visualizing past data. Copyright © 2016 Pearson Education, Ltd. 6-3 Why Organizations Need Business Intelligence: • Responding to threats and opportunities. • Understanding big data. • Continuous planning. Copyright © 2016 Pearson Education, Ltd. 6-4 Why Organizations Need Business Intelligence: Threats and Opportunities External factors in the business environment, such as • Changes in consumer demand • Competitive pressures • Changing regulations Can create both threats and opportunities that businesses need to respond to. Copyright © 2016 Pearson Education, Ltd. 6-5 Why Organizations Need Business Intelligence: Threats and Opportunities Copyright © 2016 Pearson Education, Ltd. 6-6 Why Organizations Need Business Intelligence: Understanding Big Data • Businesses are dealing with the challenge of “Big Data”. • Big Data is typically characterized as being of high volume, variety, and velocity. – High Volume • Extraordinary amounts of data • for example, – Enables organizations to make business decisions based on more factors; yet at the same time, – Storing, analyzing, and managing increasing amounts of data pose tremendous challenges. Copyright © 2016 Pearson Education, Ltd. 6-7 Why Organizations Need Business Intelligence: Understanding Big Data – High Variety • Useful data can come in the form of – Structured data such as transaction data – Semi structured data  such as coming from click stream. – Unstructured data such as text, audio and video data, comments on social networks, and so on. • Semi structured and unstructured data tend to be messy and are often incomplete; further analysis of these data tends to be expensive – High Velocity • Rapid processing to maximize value • On the one hand, data flow into organizations at increasingly higher rates; on the other hand, data-driven organizations have to process and use the data ever more quickly Copyright © 2016 Pearson Education, Ltd. 6-8 Why Organizations Need Business Intelligence: Continuous Planning • This requires continuous monitoring to ensure organizations have the information to make ongoing, forwardlooking adjustments and updates to business plans. Copyright © 2016 Pearson Education, Ltd. 6-9 Why Organizations Need Business Intelligence: Continuous Planning • In a continuous planning process, organizations continuously monitor and analyze data and business processes. Copyright © 2016 Pearson Education, Ltd. 6-10 Business Intelligence and Advanced Analytics • Vendors offer a wide variety of tools for decision support that can be classified as : – Business intelligence tools: provide decision support by enabling business users to understand what has happened. – Advanced analytics tools: provide decision support by enabling business users to gain a deeper understanding of why things happened. Copyright © 2016 Pearson Education, Ltd. 6-11 Business Intelligence and Advanced Analytics (Cont.) • Given vast amounts of data, business intelligence tools help users perform analyses and interpret data. • Business intelligence applications: – Decision Support Systems (DSS). – Online Analytical Processing (OLAP). – Information Visualization. Copyright © 2016 Pearson Education, Ltd. 6-12 Business Intelligence: Information Visualization • An important aspect of BI applications is information visualization. • Visualization refers to the display of complex data relationships using a variety of graphical methods, enabling managers to quickly grasp the results of the analyses. Copyright © 2016 Pearson Education, Ltd. 6-13 Business Intelligence: Information Visualization (Cont.) Digital Dashboards – Comprised of key performance indicators (KPIs) – Visual display of summary information – Aid in situational awareness and decision making • Visual Analytics – Interactive graphics for complex analysis Copyright © 2016 Pearson Education, Ltd. 6-14 Information Visualization: Digital Dashboards • Digital dashboards are commonly used to visually present key performance indicators and other summary information used by managers and executives to make decisions. • Typically support three usage models: – Push reporting – Exception reporting and alerts – Pull reporting Copyright © 2016 Pearson Education, Ltd. 6-15 Information Visualization: Digital Dashboards (Cont.) • Push reporting: provide the decision makers with a quick, visual overview of key performance indicators and other key operational statistics and trends. • Exception reporting and alerts: alert the user of any items that require immediate attention • Pull reporting: if the user wants to analyze the root causes of an exception or perform other analyses, he or she can drill down or perform self-service ad hoc queries Copyright © 2016 Pearson Education, Ltd. 6-16 Information Visualization: Digital Dashboards (Cont.) • Digital dashboards (sometimes called executive dashboards) provide top-level managers with the needed information to support business processes, such as cash and investment management, resource allocation, and contract negotiation. Copyright © 2016 Pearson Education, Ltd. 6-17 Information Visualization: Digital Dashboards (Cont.) Copyright © 2016 Pearson Education, Ltd. 6-18 Information Visualization: Digital Dashboards (Cont.) • Mobile Business Intelligence: – Dashboard vendors are offering solutions for multiple devices and screen sizes so that each user can get the most current information regardless of location and device used. Copyright © 2016 Pearson Education, Ltd. 6-19 Information Visualization: Digital Dashboards (Cont.) Copyright © 2016 Pearson Education, Ltd. 6-20 Information Visualization: Visual Analytics • Visual analytics (sometimes called visual data discovery) is the combination of various analysis techniques and interactive visualization to solve complex problems. Copyright © 2016 Pearson Education, Ltd. 6-21 Information Visualization: Visual Analytics (Cont.) • For example, making sense of tabular data about the strength of a hurricane (including information about location of clouds, etc.) is nearly impossible. • Using visual analytics can help visualizing a hurricane as it is gaining strength. • Once the hurricane is represented visually, analysts can view changes over time to better understand its behavior. Copyright © 2016 Pearson Education, Ltd. 6-22 Business Intelligence and Advanced Analytics (Cont.) • Given vast amounts of data, Advanced Analytics tools help users gain a deeper understanding of why things happened and build predictive models to support human and automated decision making. • Advanced Analytics applications: – Data mining. – Text mining and web content mining. – Intelligent systems (AI). – Machine learning. Copyright © 2016 Pearson Education, Ltd. 6-23 Advanced Analytics: Machine learning • Machine learning: a branch of artificial intelligence that allows systems to learn by identifying meaningful patterns when processing massive amounts of data. • One frequently used approach to machine learning is the use of neural networks. Copyright © 2016 Pearson Education, Ltd. 6-24 Geographic Information System ( GIS ) • Another tool that organizations can use to enhance their decision making is Geographic Information Systems(GIS). • A GIS: is a system for creating, storing, analyzing, and managing geographically referenced data. • GISs extend other business analytics tools by adding a spatial dimension to data. Copyright © 2016 Pearson Education, Ltd. 6-25 Geographic Information System(Cont.) • For example, when you’re accessing Google Maps to search for a restaurant in your town, you can view geographic data (such as the map or the satellite image) as well as attribute data about restaurants, including name, address, opening hours, and customer reviews. Copyright © 2016 Pearson Education, Ltd. 6-26 Geographic Information System (Cont.) • With the increase in mobile devices, geospatial data is increasingly becoming part of many applications and often serves as the foundation for many business models. • For example, companies such as the car hailing app Uber could not provide services without being able to match the locations of riders and drivers. Copyright © 2016 Pearson Education, Ltd. 6-27