2 Business Intelligence (BI) INPUT: Acxiom Corporation collects 300 million individual demographic records.OUTPUT: Who is going to default on a loan.Q: How do you process this input to output?
3 Business Intelligence (BI) System BI Systems use information technology (hardware, software, but even algorithms) to find patterns, relationships, and trends.Data (MIS) InformationInformation (DSS) Good DecisionsInformation (BI systems) Knowledge
4 BI includes Reporting Tools Data Mining Algorithms Examples: Pivot Charts & Online Analytical ProcessingData Mining AlgorithmsExamples: Apriori Algorithm for finding association rulesKnowledge Management ToolsExamples:IBM’s knowledge bank
5 Review TPS – Transaction Processing Systems PCS – Process Control SystemsMIS – Management Information SystemsDSS – Decision Support SystemsEIS – Executive Information SystemsECS – Enterprise Collaboration Systems
6 Background Information (BI systems) Knowledge People/Machines (TPS) DataPeople/Machines (PCS) Data & Routine DecisionsData (MIS) Info. & Routine DecisionsInformation (DSS) Complex DecisionsInformation (BI systems) KnowledgeInformation (EIS) Strategic DecisionsData & Info (ECS) Data & Info.
7 The Big Problem Old problem: Too much data figured out some solutionsNew problem: Too much informationMoving from info. to knowledge is a bigger problemWhere humans are still needed
9 What we will learning soon Pivot Chart Lab & LogicWe will learn how to make accurate predictions (knowledge) given raw data about behaviorExcel will be our toolMarket Basket LabWe will find the strongest product associations (knowledge) given millions of possibilities (raw data)Access with be our toolLarge companies pay $millions for sophisticate tools to do these things
10 What we have done (review part) Intro LabGetting to know the proceduresCMCC LabWord is just a document makerGoogle Docs is more of an Information SystemGIS LabFirst DSS exampleData InformationTables Maps ReportsExcel LabMore than just an accounting calculatorA tool for automation and information processingSearching (vlookup) and logic (if statements)