Chapter 7:

Business Intelligence and

Decision Support

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 Learning objectives
1. Decision making
2. Business intelligence
3. Data mining
4. Web analytics
5. Dashboards and portals

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 Police department
• Data mining to deploy officers
• 47% decline in complaints
• 246% increase in recovered weapons
• $15,000 HR savings during shift

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 Business intelligence
• Information for data-driven decision making
• Includes software applications, technologies,
and practices

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 Levels of decision making

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 Sources of BI
Internal External
• Transactional • Cloud
databases • External databases
• Data warehouses • Websites, social
networks, and text
messages

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 Analyzing patterns
• Online analytical
processing
• Statistics and
modeling
techniques
• Text mining

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 Simulating and forecasting
• What-if analysis
• Goal seeking and optimization
• Forecasting

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 Artificial intelligence
Examples Challenge
• Amazon.com • Scammers
• ALADDIN • CAPTCHA
• Jeopardy!

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 Artificial intelligence
applications
• Robotics
• Expert systems
• Neural nets

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 Web analytics
• Website
• Social media
• E-commerce

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 Analyzing traffic
• Analyzing software
• Reaching goals
• Ad effectiveness

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 Dashboards

• Graphical user interface

• Key performance indicators

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 Portals
• Variety of information on one screen
• Enterprise portal

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 Mashups

• Aggregate data from multiple sources

• Customizable web pages

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 Human element
• Although humans choose intelligence, tools,
and interpretation, they have weaknesses
• Must consider human motives in design and
implementation of information systems

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 Summary
1. Decision making
2. Business intelligence
3. Data mining
4. Web analytics
5. Dashboards and portals

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 Insurance Fraud case
• $68 billion lost in fraud each year
• Fraud detection systems rely on rules and
patterns detected by analytic engines
• Analysts work closely with investigators to
apply human judgment as they create new
rules and follow data leads

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 New York Jets case
• Command Center—four-panel touchscreen
• Real-time aggregated data
• Fan dashboard

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Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 7 - 20