Transcript Chapter 9

Chapter 9
Business Intelligence
Systems
“We Can Produce Any Report You Want,
But You’ve Got to Pay for It.”
• Different expectations about what is a report
• Great use for exception reporting
• Feature PRIDE prototype and supporting
data are stored in profile, profileworkout, and
equipment tables
• Need legal advice on system
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Study Questions
Q1: How do organizations use business intelligence (BI)
systems?
Q2: What are the three primary activities in the BI
process?
Q3: How do organizations use data warehouses and data
marts to acquire data?
Q4: How do organizations use reporting applications?
Q5: How do organizations use data mining applications?
Q6: How do organizations use BigData applications?
Q7: What is the role of knowledge management systems?
Q8: What are the alternatives for publishing BI?
Q9: 2023?
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Q1: How Do Organizations Use
Business Intelligence (BI) Systems?
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Example Uses of Business Intelligence
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Q2: What Are the Three Primary
Activities in the BI Process?
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Using BI for Problem-solving at GearUp:
Process and Potential Problems
1.
2.
3.
4.
5.
6.
Obtain commitment from vendor
Run sales event
Sell as many items as it can
Order amount actually sold
Receive partial order and damaged items
If receive less than ordered, ship partial order
to customers
7. Some customers cancel orders
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Tables Used for BI Analysis at GearUp
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Extract of ITEM_SUMMARY_DATA
Table
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Lost Sales Summary Report
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Lost Sales Details Report
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Event Data Spreadsheet
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Short and Damaged Shipments
Summary
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Short and Damaged Shipments Details
Report
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Publish Results
• Options
• Print and distribute via email or
collaboration tool
• Publish on web server or SharePoint
• Publish on a BI server
• Automate results via web service
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Q3: How Do Organizations Use Data
Warehouses and Data Marts to Acquire
Data?
• Why extract operational data for BI
processing?
 Security and control
 Operational not structured for BI analysis
 BI analysis degrades operational server
performance
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Functions of a Data Warehouse
• Obtain or extract data
• Cleanse data
• Organize and relate data
• Create and maintain catalog
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Components of a Data Warehouse
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Examples of Consumer Data that Can
Be Purchased
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Possible Problems with Source Data
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Data Marts Examples
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Q4: How Do Organizations Use
Reporting Applications?
• Create meaningful information from disparate data
sources
• Deliver information to user on time
• Basic operations:
1. Sorting
2. Filtering
3. Grouping
4. Calculating
5. Formatting
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How Does RFM Analysis Classify
Customers?
• Recently
• Frequently
• Money
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RFM Analysis Classifies Customers
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Typical OLAP Report
OLAP Product Family by Store Type
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OLAP Product Family and Store
Location by Store Type
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OLAP Product Family and Store Location by
Store Type, Showing Sales Data for Four
Cities
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Q5: How Do Organizations Use Data
Mining Applications?
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Unsupervised Data Mining
• Analyst does not create a priori hypothesis
or model
• Hypotheses created afterward to explain
patterns found
• Example: Cluster analysis
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Supervised Data Mining
• Develop a priori model to compute estimated
parameters of model
• Used for prediction, such as regression
analysis
• Ex: CellPhoneWeekendMinutes =
(12 + (17.5 X CustomerAge) +
(23.7 X NumberMonthsOfAccount)
=12 + 17.5*21 + 23.7*6 = 521.7
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Market-Basket Analysis
• Market-basket analysis – a data-mining
technique for determining sales patterns
– Statistical methods to identify sales patterns in
large volumes of data
– Products customers tend to buy together
– Probabilities of customer purchases
– Identify cross-selling opportunities
Customers who bought fins also bought a
mask.
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Market-Basket Example: Dive Shop
Transactions = 400
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Decision Trees
• Hierarchical arrangement of criteria to
predict a classification or value
• Unsupervised data mining technique
• Basic idea of a decision tree
 Select attributes most useful for
classifying something on some criteria to
create “pure groups”
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Credit Score Decision Tree
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Ethics Guide: The Ethics of Classification
• Classifying applicants for college admission
• Collects demographics and performance
data of all its students
• Uses decision tree program
• Statistically valid measures to obtain
statistically valid results
• No human judgment involved
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The Ethics of Classification: Resulting
Decision Tree
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Q6: How Do Organizations Use BigData
Applications?
• Huge volume – petabyte and larger
• Rapid velocity – generated rapidly
• Great variety
– Structured data, free-form text, log files,
possibly graphics, audio, and video
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MapReduce Processing Summary
Google search logs broken into pieces
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Google Trends on the Term Web 2.0
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Hadoop
• Open-source program supported by Apache
Foundation2
• Manages thousands of computers
• Implements MapReduce
• Written in Java
• Amazon.com supports Hadoop as part of EC3
cloud offering
• Query language entitled Pig
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Using MIS InClass 9: What Wonder
Have We Wrought?
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Q7: What Is the Role of Knowledge
Management Systems?
• Creating value from intellectual capital and
sharing that knowledge with those who need
that capital
• Preserving organizational memory by
capturing and storing lessons learned and
best practices of key employees
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Benefits of Knowledge Management
• Improve process quality
• Increase team strength
• Goal: Enable employees to use
organization’s collective knowledge
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What Are Expert Systems?
Expert systems
Rule-based
IF/THEN
Encode human
knowledge
Expert systems shells
Process IF side
of rules
Report values of
all variables
Knowledge gathered
from human experts
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Example of IF/THEN Rules
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Drawbacks of Expert Systems
1. Difficult and expensive to develop
– Labor intensive
– Ties up domain experts
2. Difficult to maintain
– Changes cause unpredictable outcomes
– Constantly need expensive changes
3. Don’t live up to expectations
– Can’t duplicate diagnostic abilities of humans
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What Are Content Management
Systems (CMS)?
• Support management and delivery of documents,
other expressions of employee knowledge
• Challenges
– Databases are huge
– Content dynamic
– Documents do not exist in isolation
– Contents are perishable
– In many languages
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What are CMS Application Alternatives?
• In-house custom
 Customer support department develops in-house
database applications to track customer problems
• Off-the-shelf
 Horizontal market products (SharePoint)
 Vertical market applications
• Public search engine
 Google
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How Do Hyper-Social Organizations
Manage Knowledge?
HyperSocial
KM
Media
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Resistance to Hyper-Social KnowledgeSharing
• Reluctance to exhibit ignorance
• Employee competition
• Solution
– Strong management endorsement
– Strong positive feedback and rewards
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Q8: What Are the Alternatives for
Publishing BI?
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What Are the Two Functions of a BI
Server?
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Q9: 2023?
• Companies will know more about your
purchasing habits and psyche.
• Social singularity – Machines will build their
own information systems.
• Will machines possess and create
information for themselves?
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Guide: Semantic Security
1. Unauthorized access to protected data and
information
• Physical security
 Passwords and permissions
 Delivery system must be secure
2. Unintended release of protected information
through reports & documents
3. What, if anything, can be done to prevent what
Megan did?
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Guide: Data Mining in the Real World
• Problems:
– Dirty data
– Missing values
– Lack of knowledge at start of project
– Over fitting
– Probabilistic
– Seasonality
– High risk – unknown outcome
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Active Review
Q1: How do organizations use business intelligence (BI)
systems?
Q2: What are the three primary activities in the BI
process?
Q3: How do organizations use data warehouses and data
marts to acquire data?
Q4: How do organizations use reporting applications?
Q5: How do organizations use data mining applications?
Q6: How do organizations use BigData applications?
Q7: What is the role of knowledge management systems?
Q8: What are the alternatives for publishing BI?
Q9: 2023?
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Case Study 9: Hadoop the Cookie
Cutter
• Third-party cookie created by site other than
one you visited
• Generated in several ways, mostly occurs when
a Web page includes content from multiple
sources
• DoubleClick
– IP address where content was delivered
– Records data in a log
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Case Study 9: Hadoop the Cookie
Cutter (cont'd)
• Third-party cookie owner has history of what
was shown, what ads clicked, and intervals
between interactions
• Cookie log contains data to show how you
respond to ads and your pattern of visiting
various web sites where ads placed
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FireFox Collusion
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Ghostery in Use (ghostery.com)
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