Business Intelligence Systems Chapter 9. 9-2 “We Can Produce Any Report You Want, But You’ve Got to Pay for It.” Different expectations about what is.

Business Intelligence

Systems

Chapter 9

9-2

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

• Different expectations about what is a report

• Great use for exception reporting

• Feature PRIDE prototype and supporting data are stored in profile, profileworkout, and equipment tables

• Need legal advice on system

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

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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: 2023?

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


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Example Uses of Business Intelligence


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


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Using BI for Problem-solving at GearUp: Process and Potential Problems


1. Obtain commitment from vendor 2. Run sales event3. Sell as many items as it can 4. Order amount actually sold5. Receive partial order and damaged items6. If receive less than ordered, ship partial order

to customers7. Some customers cancel orders

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Tables Used for BI Analysis at GearUp


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Extract of ITEM_SUMMARY_DATA Table


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Lost Sales Summary Report


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Lost Sales Details Report


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Event Data Spreadsheet


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Short and Damaged Shipments Summary


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Short and Damaged Shipments Details Report


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Publish Results

• Options

• Print and distribute via email or collaboration tool

• Publish on web server or SharePoint

• Publish on a BI server

• Automate results via web service


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

• Why extract operational data for BI processing? Security and control Operational not structured for BI analysis BI analysis degrades operational server

performance


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Functions of a Data Warehouse

• Obtain or extract data

• Cleanse data

• Organize and relate data

• Create and maintain catalog


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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


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Data Marts Examples


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Q4: How Do Organizations Use Reporting Applications?

• Create meaningful information from disparate data sources

• Deliver information to user on time

• Basic operations:

1. Sorting

2. Filtering

3. Grouping

4. Calculating

5. Formatting


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How Does RFM Analysis Classify Customers?


• Recently

• Frequently

• Money

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RFM Analysis Classifies Customers


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Typical OLAP Report


OLAP Product Family by Store Type

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OLAP Product Family and Store Location by Store Type


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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 create a priori hypothesis or model

• Hypotheses created afterward to explain patterns found

• Example: Cluster analysis


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Supervised Data Mining

• Develop a priori model to compute estimated parameters of model

• Used for prediction, such as regression analysis

• Ex: CellPhoneWeekendMinutes = (12 + (17.5 X CustomerAge) + (23.7 X 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.


http://en.wikipedia.org/wiki/Market_basket_analysis

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Market-Basket Example: Dive ShopTransactions = 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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Ethics Guide: The Ethics of Classification


• Classifying applicants for college admission• Collects demographics and performance

data of all its students• Uses decision tree program • Statistically valid measures to obtain

statistically valid results• No human judgment involved

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The Ethics of Classification: Resulting Decision Tree


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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 logs 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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Using MIS InClass 9: What Wonder Have We Wrought?


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Q7: What Is the Role of Knowledge Management Systems?

• 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 ManagementSystems (CMS)?

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

• Challenges– Databases are huge– Content dynamic– Documents do not exist in isolation– Contents are perishable– In many languages


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What are CMS Application Alternatives?

• In-house custom Customer support department develops in-house

database applications to track customer problems

• Off-the-shelf Horizontal market products (SharePoint) Vertical market applications

• Public search engine Google


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How Do Hyper-Social Organizations Manage Knowledge?

Hyper-Social KM Media


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Resistance to Hyper-Social Knowledge-Sharing

• Reluctance to exhibit ignorance

• Employee competition

• Solution– Strong management endorsement – Strong positive feedback and rewards


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Q8: What Are the Alternatives for Publishing BI?


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What Are the Two Functions of a BI Server?


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Q9: 2023?

• 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 & documents

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


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Guide: Data Mining in the Real World

• Problems:– Dirty data– Missing values– Lack of knowledge at start of project– Over fitting– Probabilistic– Seasonality– High risk – unknown outcome


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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: 2023?

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Case Study 9: Hadoop the Cookie Cutter

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

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

• DoubleClick– IP address where content was delivered– Records data in a 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)


9-61Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Business Intelligence Systems Chapter 9. 9-2 “We Can Produce Any Report You Want, But You’ve Got to Pay for It.” Different expectations about what is.

Documents

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operational data