Experiencing MIS 7th by m kronenke chapter 09

• Eliminating silos enables everyone to gain more information from PRIDE data... • Predictive policing – Analyze data on past crimes, including location, date, time, day of week, type of

Business Intelligence Systems

Chapter 9

“We Can Make the Bits Produce Any Report You Want, But You’ve Got to Pay for It.”

• Need to monitor patient workout data.

• Spending too many hours each day looking at patient workout data.

• Great use for exception reporting.

• Animation & new types of reporting creates innovative and motivating reports.

• Eliminating silos enables everyone to gain more information from PRIDE data.

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Study Questions

Q1: How do organizations use business intelligence (BI) systems?

Q2: What are the three primary activities in the BI process?

Q3: How do organizations use data warehouses and data marts to acquire data?

Q4: How do organizations use reporting applications?

Q5: How do organizations use data mining applications?

Q6: How do organizations use BigData applications?

Q7: What is the role of knowledge management systems?

Q8: What are the alternatives for publishing BI?

Q9: 2024?

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Q1: How Do Organizations Use Business Intelligence (BI) Systems?

Components of Business Intelligence System

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Example Uses of Business Intelligence

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What Are Typical Uses for BI?

• Identifying changes in purchasing patterns

– Important life events cause customers to change what they buy.

• BI for entertainment

– Netflix has data on watching, listening, and rental habits, however, determines what people actually want, not what

they say

• Predictive policing

– Analyze data on past crimes, including location, date, time, day of week, type of crime, and related data, to predict

where crimes are likely to occur.

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Q2: What Are the Three Primary Activities in the BI Process?

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Using Business Intelligence to Find Candidate Parts at AllRoad

• Identified criteria for parts customers might want to print themselves.

– Provided by vendors who already agree to make part design files available for sale.

– Purchased by larger customers.

– Frequently ordered parts.

– Ordered in small quantities

– Simple in design.

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Acquire Data: Extracted Order Data

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Extracted Part Data

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Analyze Data: Access Query

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Query Result

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Joining Order Extract and Filtered Parts Tables

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Sample Orders and Parts View Data

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Customer Summary

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Qualifying Parts Query Design

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Qualifying Parts Query Results Figure

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Publish Results: Sales History for Selected Parts

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Q3: How Do Organizations Use Data Warehouses and Data Marts to Acquire Data?

Functions of a Data Warehouse

• Extract data from operational, internal and external databases.

• Cleanse data.

• Organize, relate data warehouse.

• Catalog data using metadata.

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Components of a Data Warehouse

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Examples of Consumer Data That Can Be Purchased

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Possible Problems with Source Data

Curse of dimensionality

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Data Warehouses Versus Data Marts

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Q4: How Do Organizations Use Reporting Applications?

• Create meaningful information from disparate data sources.

• Deliver information to user on time.

RFM Analysis Classifies Customers

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Typical OLAP Report

OLAP Product Family by Store Type

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Example of Expanded Grocery Sales OLAP Report

Drill down into

the data

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OLAP Product Family and Store Location by Store Type, Showing Sales Data for Four Cities

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Q5: How Do Organizations Use Data Mining Applications?

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Unsupervised Data Mining

• Analyst does not start with a priori hypothesis or model.

• Hypothesized model created based on analytical results to explain patterns found.

• Example: Cluster analysis.

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Supervised Data Mining

• Uses a priori model to compute outcome of model

• Prediction, such as regression analysis

• Ex: CellPhoneWeekendMinutes

= (12 + (17.5*CustomerAge)+(23.7*NumberMonthsOfAccount)

= 12 + 17.5*21 + 23.7*6 = 521.7

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Market-Basket Analysis

• Market-basket analysis – a data-mining technique for determining sales patterns.

– Statistical methods to identify sales patterns in large volumes of data.

– Products customers tend to buy together.

– Probabilities of customer purchases.

– Identify cross-selling opportunities.

 Customers who bought fins also bought a mask.

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Market-Basket Example: Dive Shop

Transactions = 400

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Decision Trees

• Hierarchical arrangement of criteria to predict a classification or value.

• Unsupervised data mining technique.

• Basic idea of a decision tree

– Select attributes most useful for classifying something on some criteria to create “pure groups”.

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Credit Score Decision Tree

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Decision Rules for Accepting or Rejecting Offer to Purchase Loans

If percent past due is less than 50 percent, then accept loan.

• If percent past due is greater than 50 percent and

• If CreditScore is greater than 572.6 and

• If CurrentLTV is less than 94, then accept loan.

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Using MIS InClass Exercise 9: What Singularity Have We Wrought?

Trends in the Computing Industry

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Q6: How Do Organizations Use BigData Applications?

• Huge volume – petabyte and larger

• Rapid velocity – generated rapidly.

• Great variety

– Structured data, free-form text, log files, possibly graphics, audio, and video.

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MapReduce Processing Summary

Google search log broken

into pieces

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Google Trends on the Term Web 2.0

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Hadoop

• Open-source program supported by Apache Foundation2

• Manages thousands of computers.

• Implements MapReduce

– Written in Java

• Amazon.com supports Hadoop as part of EC3 cloud offering

• Query language entitled Pig.

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Q7: What Is the Role of Knowledge Management Systems?

• Knowledge Management

– Creating value from intellectual capital and sharing that knowledge with those who need that capital.

– Preserving organizational memory by capturing and storing lessons learned and best practices of key employees.

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Benefits of Knowledge Management

• Improve process quality.

• Increase team strength.

• Goal:

– Enable employees to use organization’s collective knowledge.

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What Are Expert Systems?

Expert systems

Rule-based IF/THEN

Encode human knowledge

Process IF side of rules

Report values of all variables

Knowledge gathered from human

experts Expert systems shells

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Example of IF/THEN Rules

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Drawbacks of Expert Systems

1 Difficult and expensive to develop

– Labor intensive

– Ties up domain experts

2 Difficult to maintain

– Changes cause unpredictable outcomes

– Constantly need expensive changes

3 Don’t live up to expectations

– Can’t duplicate diagnostic abilities of humans

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What Are Content Management Systems (CMS)?

• Support management and delivery of documents, other expressions of employee knowledge

• Challenges of Content Management

– Databases are huge

– Content dynamic

– Documents do not exist in isolation

– Contents are perishable

– In many languages

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– Horizontal market products (SharePoint)

– Vertical market applications

• Public search engine

– Google

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How Do Hyper-Social Organizations Manage Knowledge?

• Hyper-social knowledge management

– Application of social media and related applications for management and delivery of organizational knowledge resources.

• Hyper-organization theory

– Framework for understanding this new direction in KM.

– Focus moves from knowledge and content per se to fostering authentic relationships among creators and

users of knowledge.

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Hyper-Social KM Alternative

Media

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Q8: What Are the Alternatives for Publishing BI?

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Elements of a BI System

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Q9: 2024?

• World generating and storing exponentially more information.

• Information about customers, and data mining techniques going to get better.

• Companies will know more about your purchasing habits and psyche.

• Social singularity – Machines will build their own information systems.

• Will machines possess and create information for themselves?

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Guide: Semantic Security

1 Unauthorized access to protected data and information

– Physical security

 Passwords and permissions

 Delivery system must be secure

2 Unintended release of protected information through reports and documents.

3 What, if anything, can be done to prevent what Megan did?

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Active Review

Q1: How do organizations use business intelligence (BI) systems?

Q2: What are the three primary activities in the BI process?

Q3: How do organizations use data warehouses and data marts to acquire data?

Q4: How do organizations use reporting applications?

Q5: How do organizations use data mining applications?

Q6: How do organizations use BigData applications?

Q7: What is the role of knowledge management systems?

Q8: What are the alternatives for publishing BI?

Q9: 2024?

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Case Study 9: Hadoop the Cookie Cutter

• Third-party cookie created by a site other than one you visited.

• Generated in several ways, most common occurs when a Web page includes content from multiple sources.

• DoubleClick

– IP address where content was delivered.

– Records data in cookie log

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Case Study 9: Hadoop the Cookie Cutter (cont'd)

• Third-party cookie owner has history of what was shown, what ads clicked, and intervals between

interactions.

• Cookie log contains data to show how you respond to ads and your pattern of visiting various Web sites where ads placed.

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FireFox Collusion

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Ghostery in Use (ghostery.com)

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