Chapter 3: Databases and Data Warehouses: Supporting the Analytics-DrivenOrganizationBusiness intelligence (BI) – collective information that gives you the ability to make effective, important, and strategic business decisionsAnalytics – the science of fact-based decision makingOLTP (Online Transaction Processing) – OLAP (Online Analytical Processing) –Database – collection of information that you organize and access according to the logical structure of the informationRelational database – series of logically related two-dimensional tables or files for storing information- Relation = table = filePrimary key – field (or group of fields) that uniquely describes each recordForeign key – primary key of one file that appears in another fileDatabase management system (DBMS) – helps you specify the logical requirements for a database and access and use the information in a database5 Components of a DBMS1. DBMS engine -2. Data definition subsystem -3. Data manipulation subsystem -4. Application generation subsystem -5. Data administration subsystem –Data warehouse – collection of information (from many places) that supports business analysis activitiesand decision makingThe Tool Set of the Analytics ProfessionalThe Analytics Life CycleData Marts- subset of a data warehouse in which only a focused portion of the data warehouse information is keptInformation is a resource you must manage and organize to help the organization meet its goals and objectivesYou need to consider- Strategic management support- Sharing information with responsibility- Information cleanlinessChapter 4: Analytics, Decision Support, and Artificial Intelligence: Brainpower forYour BusinessDECISIONS AND DECISION SUPPORT- Find or recognize the problem, need, or opportunity- Consider ways of solving the problem- Examine the merits of each solution and choose the best one- Carry out the chosen solution and monitor the resultsDecision support system (DSS) – a highly flexible and interactive system that is designed to support decision making when the problem is not structured - Decision support systems help you analyze, but you must know how to solve the problem, and how to use the results of the analysisGeographic information system (GIS) – DSS designed specifically to analyze spatial information- Spatial information is any information in map form- Businesses use GIS software to analyze information, generate business intelligence, and make decisionsPredictive analytics – highly computational data-mining technology that uses information and business intelligence to build a predictive model for a given business application- Insurance, retail, healthcare, travel, financial services, CRM, SCM, credit scoring, etc.Text analytics – uses statistical, AI, and linguistic technologies to convert textual information into structured information- Gaylord Hotels uses text analytics to make sense of customer satisfaction surveysTypes of Analytics:- Web analytics- HR analytics- Marketing analytics- CRM analytics- Social media analytics- Mobile analyticsArtificial intelligence, the science of making machines imitate human thinking and behavior, can replace human decision making in some instances- Expert systems- Neural networks (and fuzzy logic)- Genetic algorithms- Agent-based technologiesExpert (knowledge-based) system – an artificial intelligence system that applies reasoning capabilities toreach a conclusionUsed for: - Diagnostic problems (what’s wrong?)- Prescriptive problems (what to do?)Neural network (artificial neural network or ANN) – an artificial intelligence system that is capable of finding and differentiating patternsFuzzy logic – a mathematical method of handling imprecise or subjective information, like “short” or “tall”Genetic algorithm – an artificial intelligence system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem- Take millions of solutions and determines the optimal oneAgent-based technology (software agent) - piece of software that acts on your behalf (or on behalf of another piece of software) performing tasks assigned to itBiomimicry & Swarm Intelligence:- Biomimicry – learning from ecosystems and adapting their characteristics to human and organizational situations- Swarm (collective) intelligence – the collective behavior of groups of simple agents that are capable of devising solutions to problems as they arise, eventually learning to coherent global patternsChapter 5: Electronic Commerce Strategies for the New EconomyE-commerce is changing everythingElectronic commerce (e-commerce) – commerce, but it is commerce accelerated and enhanced by IT- Build powerful relationships with customers- Build powerful relationships with suppliers- Build powerful relationships with partnersE-COMMERCE BUSINESS MODELS:B2B e-commerce – business sells products and services to customers who are primarily other businesses- Where all the e-commerce money isB2C)e-commerce – business sells products and services to customers who are primarily individuals- B2C is the glitzy e-commerce like iTunes, eBay, etc.UNDERSTAND YOUR BUSINESS, PRODUCTS, SERVICES, & CUSTOMERSTo be successful, you must…- Define your products and services- Define your target customerso B2B (other businesses)o B2C (individuals)- Define your customers perception of the value of your products and servicesB2C: Convenience Versus Specialty- Convenience vs. specialtyo Lower vs. high pricedo Frequency of purchaseo Food items vs. stereos and computers- Commodity like and digitalo Same no matter where you purchase ito Delivered over the Interneto Best product types for B2C e-commerceB2B: Horizontal Versus Vertical E-Marketplaces- Electronic marketplace (e-marketplace) – interactive business providing a central market where multiple buyers and sellers can engage in e-commerceFIND CUSTOMERS AND ESTABLISH RELATIONSHIPS- You must first find customers- Then establish relationships- Otherwise, you can’t make a sale- B2C and B2B techniques are very differentBusiness to Consumer- Determine your marketing mix - set of marketing tools your organization will use to pursue its marketing objectives in reaching and attracting potential customerso Search engineso Online adso Viral marketingo Affiliate programsBusiness to Business Marketing- Much more personal- Not usually done with generic ads designed for mass distribution- Often take place in