CHAPTER 12 Business Analytics

CHAPTER OUTLINE 12.1 Managers and Decision Making 12.2 What Is Business Intelligence? 12.3 Business Intelligence Applications for Data Analysis 12.4 Business Intelligence Applications for Presenting Results 12.5 Business Intelligence in Action: Corporate Performance Management

LEARNING OBJECTIVES  Identify the phases in the decision-making process, and use a decision-support framework to demonstrate how technology supports managerial decision making.  Describe and provide examples of the three different ways in which organizations use business intelligence.

LEARNING OBJECTIVES (continued)  Specify the BI applications available to users for data analysis, and provide examples of how each might be used to solve a business problem at your university.  Describe three BI applications that present the results of data analyses to users, and offer examples of how businesses and government agencies can use each of these technologies.

LEARNING OBJECTIVES (continued) 5. Describe corporate performance management, and provide an example of how your university could use CPM.

12.1 Managers and Decision Making Managers have three basic roles (Mintzberg 1973) – Interpersonal roles – Informational roles – Decisional roles

Why Managers Need IT Support The number of alternatives to be considered constantly increases. Decisions must be made under time pressure. Decisions are more complex. Decision makers can be in different locations and so is the information.

A Framework for Computerized Decision Analysis Two Dimensions First dimensions deals with the problem structure Second dimension deals with the nature of the decision

The Nature of Decisions Operational control Management control Strategic planning

12.2 What is Business Intelligence The Scope of Business Intelligence How Organizations Use BI

12.3 Business Intelligence Applications for Data Analysis Multidimensional Analysis or Online Analytical Processing (OLAP) Data Mining Decision Support Systems

Decision Support Systems (DSS) DSS capabilities Sensitivity analysis What-if analysis Goal-seeking analysis

12.4 Business Intelligence Applications for Presenting Results Dashboards Data Visualization Technologies Geographic Information Systems Real-Time BI

12.5 Business in Action: Corporate Performance Management Key Performance Indicators (KPI) Corporate Performance Management (CPM)

Closing Case The Problem The Solution The Results