Experiencing MIS 9th 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?
• Got data and Excel to start.
• Serious data mining needs a data mart.
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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: 2026?
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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?
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Identifying changes in purchasing patterns
– Important life events change what customers buy.
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Entertainment
– Netflix has data on watching, listening, and rental habits.
– Classify customers by viewing patterns.
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Predictive policing
– Analyze data on past crimes - location, date, time, day of week, type of crime, and related data.
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Just-in-Time Medical Reporting
• Example of real time data mining and reporting.
• Injection notification services
– Software analyzes patient’s records, if injections needed, recommends as exam progresses.
• Blurry edge of medical ethics.
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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 Falcon Security
• Identify parts that might qualify.
– Provided by vendors who make part design files available for sale.
– Purchased by larger customers.
– Frequently ordered parts.
– Ordered in small quantities.
• Used part weight and price surrogates for simplicity.
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Acquire Data: Extracted Order Data
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Query
Sales (CustomerName, Contact, Title, Bill Year, Number Orders, Units, Revenue, Source, PartNumber)
Part (PartNumber, Shipping Weight, Vendor)
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Sample Extracted Data: Part Data Table
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Analyze Data
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Sample Orders and Parts View Data
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Creating 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
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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.
– Data for business intelligence to sell to companies and governments.
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Ethics Guide: Unseen Cyberazzi (cont'd)
• Cheap cloud processing of consumer data easier, less expensive.
• Processing happens in secret.
• Data brokers enable you to view data stored about you, but ...
– Difficult to learn how to request your data,
– Torturous process to file for it,
– Limited data usefulness.
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Ethics Guide: Unseen Cyberazzi (cont'd)
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Do you know what data is gathered about you? What is done with it?
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Have you thought about conclusions data aggregators, or their clients, could make based on your use of frequent buyer
cards?
•
Concerned about what federal government might do with data it gets 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?
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Functions of a data warehouse
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–
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Obtain data from operational, internal and external databases.
Cleanse data.
Organize and relate data.
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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