Chapters 4 5 6 7 8 9 learning module k Chapter 4 Analytics Decision support and artificial intelligence Decisions and Decision Support Decisions 1 Intelligence find what to fix find or recognize a problem need or opportunity Detecting and interpreting signs that indicate a situation which needs your attn o Threat of competition declining sales rising costs etc 2 Design find fixes consider possible ways of solving the problem 3 Choice pick a fix examine and weigh the merits of each solution estimate the consequences of each and choose the best one The best solution may depend on cost ease of implementation staffing requirements and timing This is the prescriptive phase of decision making course of action is prescribed 4 Implementation apply the fix carry out the chosen solution monitor the results and make adjustments as necessary Satisficing by Simon is making a choice that meets your needs and is satisfactory w o necessarily being the best possible choice available High growth is satisficing Structured Decision which involves processing a certain kind of info in a specified way so that you will always get the right answer No feel or intuition is necessary like calculating gross pay for hourly workers Nonstructured decision is one for which there may be several Right answers and there is no precise way to get a right answer No rules or criteria will guarantee you a good solution Usually decisions fall in between structured and non structured o Introducing a new product line Recurring Decision one that happens repeatedly and often periodically whether weakly monthly etc o How much inventory to carry and deciding at what price Nonreccuring or Ad Hoc decision is one that you make infrequently perhaps once and may have different criteria for determining best solution each time Decision Support Systems Decision support system is a highly flexible and interactive IT system that is designed to support decision making when the situation includes non structured elements o Simple and easy to use graphical user interface o Access to large amounts of info o Models and tools statistical and analytical User Interface Management Component allows you to communicate with DSS Enter info commands and models Easy to use Data Management Component performs the functions of storing and maintaining info and also that of giving you access to info you want your DSS to use again Info you use comes from one of three places o Organizational Info access info directly from comp databases warehouses etc o External Info like the gov dow jones and internet o Personal Info own insight and personal info Model Management Component a wide variety of statistical and analytical tools techniques and models Geographic information systems is decision support system designed specifically to analyze spatial info Spatial info is any info that can be shown in map form used to find where to put a new store and to locate customers Data Mining Tools and Models similar applied to new data histograms are used 1 Databases and DBMS heart of every organization and any analytics initiative help gather store and organize a wealth of info from which BI can be derived 2 Query and reporting tools similar to QBE tools report generators in typical database 3 Multidimensional analysis slice and dice techniques that let you view multidimensional info from 4 Digital Dashboards display key information gathered from several sources on a comp screen in a tailored to the needs and wants of individual knowledge workers 5 Statistical Tools apply various mathematical models to info to discover new info 6 Geographic information systems decision support systems designed to specifically analyze environment diff perspectives spatial info 7 Specialized analytics like predictive analytics and text analytics have broad application to all industries in a variety of biz domains 8 Artificial Intelligence the science of making machines imitate human thinking and behavior These tools are designed to help you with tasks such as 1 Association or dependency modeling peanut butter and jelly are usually bought together so think of coupon opportunities and cross selling opportunities 2 Clustering discovering groups of entities like customers that are in some way or another 3 Classification evaluate historical known data to derive structures and inferences that can be 4 Regression find corollary and casual relationships between sets of data 5 Summarization most basic yet most powerful tool in data mining Sums averages SD Endless Analytics Predicative Analytics high computational data mining tech that uses info and BI to build a predicative model for a given biz application Using old data to predict future outcomes o Prediction goal the question you want addressed by the predictive analytics model o Prediction indicator specific measurable value based on an attribute of the entity under consideration What customers are most likely to respond to a social media campaign and buy at least two products within 30 days Text Analytics process of using statistical artificial intelligence and linguistic techniques to convert info content into textual sources like surveys emails blogs and social media o Hotel sends out survey to find out complaints they get it back find noisy rooms aren t the biggest problem but rather customers wont come back Much more complicated and technical than predictive Web Analytics analysis of data related to the internet often focusing on optimizing web page usage Search Engine Optimization improving the visibility of a web site through the use of tags and key terms found by search engines HR analytics analysis of HR or talent management data for such purposes like work force capacity training and development and performance appraisal Marketing Analytics analysis of marketing related data to improve the efficiency and effectiveness of marketing efforts including product placement market mix customer id and classification CRM analytics analysis of CRM data to improve functions such as sales force automation and customer service report Social media analytics analysis of data related to social media use used by customers or competitors Mobile analytics the analysis of data related to the use of mobile devices by customers and employees Artificial Intelligence the science of making machines imitate human thinking and behavior EX hospitals use it to schedule employees assign beds to patients diagnosing illness 1 Expert System or knowledge based system is