Chapter 12: Business Intelligence Flashcards
Process + Phases in Making a Decisions (check notes, this may be inaccurate)
i.e a rainy day outside, what do you take to cover yourself
- You examine the reality/problem, this examination leads to the
Intelligence Phase, where you see “What is the problem”
In this case, it’s trying to cover yourself from the rain
- Next you see/list the options for the decisions in
the Design Phase “What are My Options”
i.e.: You could use a Hoodie Jacket, an Umbrella, or your Backpack to cover yourself from the rain
You can validate the model (???) when you apply it to the reality of the Situations
- The Choice phase is where you” Pick an Option + Decide how to Implement it”
The Verification + Testing of the proposed solution can be applied to the problem in reality
i.e. you pick the Umbrella
- The implementation of the solution:
See if the option proposed worked
If it did = Success
If it didn’t = Failure, go back to the decision It’s process
Not every option works all the time, sometimes you can wear a Hoodie on lighter rains than carrying around an umbrella
3 Basic Roles of a Manager
Interpersonal
Informational
Decisional
Decision making is difficult due to following reasons
- # of alt’s is constantly increasing
- Most decisions must be made under time pressure
- Increased Uncertainty in the dec environment
- Often necessary to Rapidly Access Remote Info, Consult with Experts, or conduct a Group dec - making session
A Framework for Computerized Dec Analysis
Includes:
- Problem Structure (Structured (seen before_, Semi - Struct (somewhat seen before?), Unstruc decs (unique?))
- Nature of Decisions:
3 broad categories of Managerial Dec’s/of managerial control in dec - making:
Operational Control (1st Line Mang/Emps?)
Management Control (Higher up Mang’s)
Strategic Planning (Top Mang/CEO?)
- The Decision Matrix (links prob Strcut + Decision Nature together + IS used to support solution/dec?)
Computer Support for Structured Dec’s
Dec - Making + Problem - Solving occur
At each level in an org
Operational Dec - Making
Employees Develop, Control, _ Maintain core Bu activities required to run the day - 2 - day operations
Structured Decisions
Situations where established processes offer potential solutions (i.e. Problem in Factory machine, Struc Dec = Push button to call engineer)
Managerial Dec - Making
Emp’s/Mang’s? evaluate Company operations to Identify, Adapt to, + Leverage Change
Semistructured Dec’s
Occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to definite recommended decisions
(i.e. Mang wants to fire emp based on claims of workplace shenanigans, knows criteria for firing, but how to decide on seeing if allegations true???)
Strategic Dec Making
Mang’s Develop overall Strats, Goals + Objectives
Unstruct Dec’s
Occurs in situations in which No procedures or rules exist to guide dec - making toward the correct choice
Scope of Bu Intelligence
The Development of 1 or a Few Related BI Applications
The Development of Infrastructure to Support Enterprise-wide BI
Support for organizational Transformation
Problem: Data Rich, Info Poor
Bu’s face a Data Explosion with Digital Images, Email in-boxes + broadband connections
The amount of data generated is doubling/2x ing every yr
Some believe it will son double monthly
BI Can Answer Tough Q’s
It starts from answering broader to answering specific questions
(i.e. Q: Why are Sales below Target —> A: Because we sold less in Western Region
…….
Q: Why did Cu Complaints inc? —-> A: Because late Deliveries went up 60%
Bu Analytics Process
- Starts with bU Problem/Org Pain points
- Moves that into Data Management Ware house (with things like External, Internat, Big Data being ETL(clean) to be put? in Data Warehouse)
- It then goes through Descriptive Analytics (i.e. Descriptive Statistics, Data Mining, Dec Support Systems) which shows:
“What has happened?”
- The through Predictive Analytics (i.e. Linear Regression, Logistic Regression, Multiple Regression) to see:
“What could happen?”
This uses Presentation tools like: Dashboards, Figures, Graphs + Reports
- Then it goes through Prescriptive Analytics (i.e. Optimization, Simulation + Dec Trees) to see:
“What should we do?”
- This all helps lead to Actionable Bu Dec’s/Recommended Actions
- After that you ask new Q’s
Underlying Technologies for the Previous Process
Increasingly Powerful Chips (GPUs)
Cheaper, Higher - Volume Storage
Increasingly Faster Broadband Internet
Neural networks
Machine learning
Deep Learning
