Experiencing MIS 8th by m kronenke chapter 09
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Chapter 9
Business Intelligence Systems
“Data analysis, where you don’t know the second question to ask
until you see the answer to the first one.”
• Tracking race competitors from each of event, and
having unbelievable success selling products to them.
• Want to match competitors to personal trainers in
same locale.
• Earn referral fee.
• How to track them? Mailing address? IP address?
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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: 2025?
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Q1: How Do Organizations Use Business
Intelligence (BI) Systems?
Components of Business
Intelligence System
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How Do Organizations Use BI?
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What Are Typical Uses for BI?
• Identifying changes in purchasing patterns
– Important life events cause customers to change what they buy.
• BI for entertainment
– Netflix has data on watching, listening, and rental habits, however,
determines what people actually want, not what they say.
• Predictive policing
– Analyze data on past crimes, including location, date, time, day of
week, type of crime, and related data, to predict where crimes are
likely to occur.
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Q2: What Are the Three Primary Activities in the BI
Process?
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Using Business Intelligence to Find Candidate
Parts at AllRoad
• Identified criteria for parts customers might want to print
– Provided by vendors who already agree to make
part design files available for sale
– Purchased by larger customers
– Frequently ordered parts
– Ordered in small quantities
• Simple in design (part weight and price as surrogates)
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Acquire Data: Extracted Order Data
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Sample Extracted Data: Part Data Table
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Joining Order Extract and Filtered Parts Tables
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Sample Orders and Parts View Data
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Creating the Customer Summary Query
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Customer Summary
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Qualifying Parts Query Design
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Publish Results: Qualifying Parts Query Results
Figure
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Publish Results: Sales History for Selected
Parts
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Ethics Guide: Unseen Cyberazzi
• Data broker or Data aggregator
– Acquires and purchases consumer and other data
from public records, retailers, Internet cookie
vendors, social media trackers, and other sources
– Uses it to create business intelligence to sell to
companies and the government
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Ethics Guide: Unseen Cyberazzi (cont'd)
• Cheap cloud processing makes processing consumer
data easier and less expensive every day
• Processing happens in secret, behind closed doors
• Data brokers enable you to view data stored about you
– Difficult to learn how to request your data and
torturous to file for it, data usefulness limited
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Ethics Guide: Unseen Cyberazzi (cont'd)
• Do you know what data is gathered about you and what is done
with it?
• Have you thought about conclusions data aggregators, or their
clients, could make based on your use of frequent buyer cards?
• Concerned about actions federal government may be taking with
regard to data it gathers or buys from data aggregators?
• Where does all of this end? What will life be like for your children
or grandchildren?
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Q3: How Do Organizations Use Data Warehouses
and Data Marts to Acquire Data?
• Functions of a Data Warehouse
– Extract data from operational, internal
and external databases
– Cleanse data
– Organize, relate data warehouse
– Catalog data using metadata
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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
Curse of
dimensionality
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Data Mart Examples
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