Transcript Basic Marketing, 16e - McGraw Hill Higher Education

Chapter 4
Analytics, Decision
Support, and
Artificial
Intelligence:
Brainpower for Your
Business
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
DECISIONS AND DECISION
SUPPORT
Find or recognize the problem, need,
or opportunity
Consider ways of solving the
problem
Examine the merits of each solution
and choose the best one
Carry out the chosen solution and
monitor the results
4-2
Decision Support Systems
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
Decision support system (DSS) –
a highly flexible and interactive
system that is designed to support
decision making when the problem is
not structured
Decision support systems help you
analyze, but you must know how to
solve the problem, and how to use
the results of the analysis
4-3
GEOGRAPHIC INFORMATION
SYSTEMS

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Geographic information system
(GIS) – DSS designed specifically to
analyze spatial information
Spatial information is any
information in map form
Businesses use GIS software to
analyze information, generate
business intelligence, and make
decisions
4-4
Google Earth as a GIS
4-5
Predictive Analytics

Predictive analytics – highly
computational data-mining
technology that uses information and
business intelligence to build a
predictive model for a given business
application

Insurance, retail, healthcare, travel,
financial services, CRM, SCM, credit
scoring, etc
4-6
Predictive Analytics
4-7
Text Analytics


Text analytics – uses statistical, AI,
and linguistic technologies to convert
textual information into structured
information
Gaylord Hotels uses text analytics to
make sense of customer satisfaction
surveys
4-8
Lots of Analytics

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Web analytics
HR analytics
Marketing analytics
CRM analytics
Social media analytics
Mobile analytics
4-9
ARTIFICIAL INTELLIGENCE

Artificial intelligence, the science
of making machines imitate human
thinking and behavior, can replace
human decision making in some
instances




Expert systems
Neural networks (and fuzzy logic)
Genetic algorithms
Agent-based technologies
4-10
Expert Systems


Expert (knowledge-based)
system – an artificial intelligence
system that applies reasoning
capabilities to reach a conclusion
Used for


Diagnostic problems (what’s wrong?)
Prescriptive problems (what to do?)
4-11
Neural Networks and Fuzzy
Logic

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Neural network (artificial neural
network or ANN) – an artificial
intelligence system that is capable of
finding and differentiating patterns
Fuzzy logic – a mathematical
method of handling imprecise or
subjective information, like “short” or
“tall”
4-12
Genetic Algorithms


Genetic algorithm – an artificial
intelligence system that mimics the
evolutionary, survival-of-the-fittest
process to generate increasingly
better solutions to a problem
Take millions of solutions and
determines the optimal one
4-13
AGENT-BASED TECHNOLOGIES
Agent-based technology (software agent) - piece of software that acts
on your behalf (or on behalf of another piece of software) performing
tasks assigned to it
4-14
Biomimicry & Swarm
Intelligence

Biomimicry – learning from
ecosystems and adapting their
characteristics to human and
organizational situations

Swarm (collective) intelligence –
the collective behavior of groups of
simple agents that are capable of
devising solutions to problems as they
arise, eventually learning to coherent
global patterns
4-15