Using MIS 3e Chapter 9Chapter PreviewStudy QuestionsWhy Do Organizations Need Business Intelligence?How Big Is an Exabyte? (See video)Slide 6Business Intelligence (BI) ToolsBusiness Intelligence ToolsTools vs. Applications vs. SystemsSlide 10Basic Reporting OperationsList of Sales DataData Sorted by Customer NameSales Data, Sorted by Customer Name and Grouped by Orders and Purchase AmountSales Data Filtered to Show Repeat Customers and Formatted for Easier UnderstandingRFM AnalysisRFM Tools Classify Customers?Example of RFM Score DataInterpreting RFM Score ResultsSlide 20Online Analytical Processing (OLAP)How Are OLAP Reports Dynamic?OLAP Product Family and Store TypeOLAP ReportsOLAP Product Family and Store Location by Store TypeOLAP Product Family and Store Location by Store Type, Drilled Down to Show Stores in CaliforniaOLAP ServersRole of OLAP Server and OLAP DatabaseSlide 29Convergence of Disciplines and Information TechnologyUnsupervised Data MiningSupervised Data MiningRegression AnalysisNeural NetworksMarket-Basket AnalysisHypothetical Sales Data of 1,000 Items at a Dive ShopMarket-Basket TerminologySlide 38Slide 39Decision TreesDecision TreeDecision Tree for Loan EvaluationDecision Tree Analysis of MIS Class GradesCreate Set of If/Then Decision RulesA Decision Tree for a Loan EvaluationSlide 46Credit Score Decision TreeSlide 48What Is the Purpose of Data Warehouses and Data Marts?Components of a Data WarehouseData Warehouse Data SourcesExample Typical of Customer Credit DataProblems with Operational DataExamples of Dirty DataSlide 55Data Warehouses vs. Data MartsComponents of a Data MartSlide 58Knowledge Management (KM)Primary Benefits of KMSharing of Document Content and Employee KnowledgeTwo Typical Knowledge-Management ApplicationsSlide 63Interface of a Typical RSS ReaderBlog Posts of SharePoint Team MemberExpert SystemsProblems of Expert SystemsExpert Systems for PharmaciesPharmacy AlertSlide 70How Are Business Intelligence Applications Delivered?What Are the Management Functions of a BI Server?BI Servers Vary in Complexity and FunctionalitySlide 74BI PortalsReport ServerWhat Are the Delivery Functions of a BI Server?Slide 782020?Ethics Guide: The Ethics of ClassificationGuide: Semantic SecuritySlide 82Guide: Data Mining in the Real WorldActive ReviewCase Study 9: Business Intelligence for Decision Making at Home DepotSlide 86Slide 87Slide 88Business Intelligence SystemsDavid KroenkeUsing MIS 3e Chapter 9Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall9-2This chapter surveys the most common business intelligence and knowledge-management applications, discusses the need and purpose for data warehouses, and explains how business intelligence applications are delivered to users as business intelligence systems. Along the way, you’ll learn tools and techniques that MRV can use to identify the guides that contribute the most (and least) to its competitive strategy. We’ll wrap up by discussing some of the potential benefits and risks of mining credit card data.Chapter PreviewCopyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall9-3Study QuestionsQ1 Why do organizations need business intelligence?Q2 What business intelligence systems are available?Q3 What are typical reporting applications?Q4 What are typical data-mining applications?Q5 What is the purpose of data warehouses and data marts?Q6 What are typical knowledge-management applications?Q7 How are business intelligence applications delivered?Q8 2020?Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall9-4Why Do Organizations Need Business Intelligence?•Information systems generate enormous amounts of operational data that contain patterns, relationships, clusters, and other information that can facilitate management, especially planning and forecasting. Business intelligence systems produce such information from operational data.•Data communications and data storage are essentially free, enormous amounts of data are created and stored every day.12,000 gigabytes per person of data, worldwide in 2009Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall9-5How Big Is an Exabyte? (See video)Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall9-6Study QuestionsQ1 Why do organizations need business intelligence?Q2 What business intelligence systems are available?Q3 What are typical reporting applications?Q4 What are typical data-mining applications?Q5 What is the purpose of data warehouses and data marts?Q6 What are typical knowledge-management applications?Q7 How are business intelligence applications delivered?Q8 2020?Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall9-7Business Intelligence (BI) Tools•BI systems provide valuable information for decision making. (BI video)•Three primary BI systems:1. Reporting Tools •Integrate data from multiple systems•Sorting, grouping, summing, averaging, comparing data2. Data-mining Tools •Use sophisticated statistical techniques, regression analysis, and decision tree analysis•Used to discover hidden patterns and relationships•Market-basket analysisCopyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall9-8Business Intelligence Tools3. Knowledge-management tool•Create value by collecting and sharing human knowledge about products, product uses, best practices, other critical knowledge•Used by employees, managers, customers, suppliers, others who need access to company knowledgeCopyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall9-9Tools vs. Applications vs. Systems•BI tool is one or more computer programs. BI tools implement the logic of a particular procedure or process. •BI application is the use of a tool on a particular type of data for a particular purpose. •BI system is an information system having all five components that delivers results of a BI application to users who need those results.Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall9-10Study QuestionsQ1 Why do organizations need business intelligence?Q2 What business intelligence systems are available?Q3 What are typical reporting applications?Q4 What are typical data-mining applications?Q5 What is the purpose of data warehouses and data marts?Q6 What are typical knowledge-management applications?Q7 How are business intelligence applications delivered?Q8 2020?Copyright © 2011 Pearson Education, Inc. Publishing as Prentice