Presentation on theme: "Business Intelligence"— Presentation transcript:
1 Business Intelligence BUSINESS PLUG-IN B18Business Intelligence
2 LEARNING OUTCOMESExplain the problem associated with business intelligence. Describe the solution to this business problemDescribe the three common forms of data-mining analysis?Compare tactical, operational, and strategic BI
3 LEARNING OUTCOMES Explain the organization-wide benefits of BI Describe the four categories of BI business benefits
4 BUSINESS INTELLIGENCE Business intelligence (BI) – applications and technologies used to gather, provide access to, and analyze data and information to support decision-making effortsParallels between the challenges in business and challenges of warCollecting informationDiscerning patterns and meaning in the informationResponding to the resultant information
5 The Problem: Data Rich, Information Poor Businesses face a data explosion as digital images, in-boxes, and broadband connections doubles by 2010The amount of data generated is doubling every yearSome believe it will soon double monthly
6 The Solution: Business Intelligence Improving the quality of business decisions has a direct impact on costs and revenueBI systems and tools results in creating an agile intelligent enterprise
7 The Solution: Business Intelligence BI enables business users to receive data for analysis that is:ReliableConsistentUnderstandableEasily manipulated
8 The Solution: Business Intelligence BI can answer tough customer questions
9 OPERATIONAL, TACTICAL, AND STRATEGIC BI Claudia Imhoff, president of Intelligent Solutions, divides the Spectrum of data mining analysis and business intelligence into three categories:OperationalTacticalStrategic
12 BI’s Operational Value Richard Hackathorn’s graph demonstrating the value of operational BI
13 BI’s Operational Value The key is to shorten the latencies so that the time frame for opportunistic influences on customers, suppliers, and others is faster, more interactive, and better positioned
14 DATA MININGData mining – process of analyzing data to extract informationData-mining tools – use a variety of techniques to find patterns and relationships in large volumes of informationClassificationEstimationAffinity groupingClustering
15 DATA MINING Common forms of data-mining analysis capabilities include: Cluster analysisAssociation detectionStatistical analysis
16 Cluster AnalysisCluster analysis – a technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possibleCRM systems depend on cluster analysis to segment customer information and identify behavioral traits
17 Association Detection Association detection – reveals the degree to which variables are related and the nature and frequency of these relationships in the informationMarket basket analysis
18 Statistical AnalysisStatistical analysis – performs such functions as information correlations, distributions, calculations, and variance analysisForecast – predictions made on the basis of time-series informationTime-series information – time-stamped information collected at a particular frequency
19 BUSINESS BENEFITS OF BI Benefits of BI include:Single Point of Access to Information for All UsersBI across Organizational DepartmentsUp-to-the-Minute Information for Everyone
20 Four Primary Categories of BI Benefits Four main categories:Quantifiable benefitsIndirectly quantifiable benefitsUnpredictable benefitsIntangible benefits
21 CLOSING CASE ONE Intelligent Business What is the problem of gathering business intelligence from a traditional company? How can BI solve this problem?Choose one of the three common forms of data-mining analysis and explain how Travelocity could use it to gain BIHow will tactical, operational, and strategic BI be different when applied to personal Google?How is IBM’s search and analysis software an example of BI?
22 CLOSING CASE ONE Intelligent Business What does the term “pervasive business intelligence” mean?How could any business benefit from technology such as Personal Google?How could a company use BI to improve its supply chain?Highlight any security and ethical issues associated with Biggle
23 CLOSING CASE TWO Big Bad Burger What does business intelligence really mean to a business? How did CPR save millions for CKE?What are the negative impacts of CKE’s business intelligence?
24 CLOSING CASE TWO Big Bad Burger Explain the three forms of data-mining analysis and explain how CKE can use it to gain BI?How can CKE use tactical, operational, and strategic BI?What types of ethical and security issues could CKE face from CPR?