ISYS104 Lecture Notes - Lecture 9: Olap Cube, Artificial Neural Network, Clickstream
31 May 2018
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Chapter 9- Business Intelligence and Info Systems for Decision-Making
Q1: Why do Organisations Need Business Intelligence?
- Businesses collect massive amounts of data
- Millions of emails and messages are sent each second
- Storage capacity is becoming unlimited, so businesses collect more data at little extra
cost
- Need to provide the right info to the right person at the right time
- The data can show patterns, relationships and trends
- Which can yield valuable info that can help businesses make better decisions
- Can help forecast changes or with areas such as customer relationships management
Q2: How Do Business Intelligence (BI) Application Systems Provide Competitive Advantage
- Provide info for improving decision-making
- Vary in characteristics and capabilities and in the way they foster competitive advantage
- Four categories of business intelligence systems:
- Reporting systems
- Data-mining systems
- Knowledge management (KM) systems
- Expert systems
Business Intelligence Application Systems
o Reporting systems
- Integrate process data by sorting, grouping, summing and formatting.
- Produce, administer and deliver reports
- Improve decisions by providing relevant, accurate and timely info to the right person
o Data-mining systems
- Use sophisticated statistical techniques to find patterns and relationships
- Improve decisions by discovering patterns and relationships in data to predict future
outcomes
Business Intelligence Tools
o Knowledge-management systems
- Share knowledge of products, product uses, best practices etc. among employees,
managers, customers and others
- Iproe deisios y pulishig eployee ad others koledge
- Create value from existing intellectual capital
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- Foster innovation, improve customer service, increase organisational responsiveness and
reduce costs
o Expert systems
- Encode human knowledge in the form of If/Then rules and process those rules to make a
diagnosis or recommendation
- Improve decision-making by non-experts by encoding, saving and processing expert
knowledge
Q3: How Do Reporting Systems Create Info that BI Systems Use?
- A reporting application uses a reporting tool to compile data from multiple sources into a
form that is info for the user
- Reporting BI systems deliver reports to authorised users at appropriate times using four
operations:
- Filtering data
- Sorting data
- Grouping data
- Making simple calculations on the data
- Two such applications are:
- RFM analysis
- OLAP
Q5: How Are Reports Authored, Managed and Delivered?
o Report authoring
- Connecting to data sources, creating the report structure and formatting the report
o Report management
- Define who receives what reports, when, and by what means
- Uses report metadata
o Report delivery
- Pushed at appropriate times
- Pulled
Q6: How Are Online Analytical Processing Reports Dynamic?
- An OLAP report shows simple arithmetic operations on data
- Sum, average, count etc.
- Has a dynamic format
- User can change report structure and view online
- Contains measures
- Data items to be manipulated, e.g. total sales, average cost
- Contains dimensions
- Characteristics of measures, e.g. purchase date, customer type, location, sales region
OLAP Reports
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Document Summary
Chapter 9- business intelligence and info systems for decision-making. Millions of emails and messages are sent each second. Storage capacity is becoming unlimited, so businesses collect more data at little extra cost. Need to provide the right info to the right person at the right time. The data can show patterns, relationships and trends. Which can yield valuable info that can help businesses make better decisions. Can help forecast changes or with areas such as customer relationships management. Q2: how do business intelligence (bi) application systems provide competitive advantage. Vary in characteristics and capabilities and in the way they foster competitive advantage. Integrate process data by sorting, grouping, summing and formatting. Improve decisions by providing relevant, accurate and timely info to the right person: data-mining systems. Use sophisticated statistical techniques to find patterns and relationships. Improve decisions by discovering patterns and relationships in data to predict future outcomes.
