Transforming Data to Information to Business Technology?
Relational databases are well suited for?
Intelligence tools are better suited for?
data analysis to create business intelligence
Three main functions of the accounting system?
1) store accounting data
2) analyse accounting data to use in decision making
3) safeguard the accounting data
uses mathematical algorithms to find patterns, trends, & relationships among data, such as customer purchasing patterns
uses mathematcal algorithms to predict future trends, such as future customer purchases
Accounting system functions: store, analyse & safeguard data
Three types of business decisions
1) routine operational decision (structured decisions)
2) tactical decisions (semi-structured decisions)
3) strategic decisions (unstructured decisions)
Routine operational decisions?
are recurring & typically relate to ongoing business operations
typically short term, impacting one year or less
usually long term in nature & structure with a high degree of ambiguity
Integrative decision model (IDM)
provides a framework to structure & organise the decision making process
Integrative decision model (IDM) template
IDM consists of seven steps as a framework for the decision-making & evaluating process
1) define the opportunity or issue
2) identify options to address the opportunity or issue
3) analyse quantitative (financial) factors
4) analyse qualitative (nonfinancial) factors
5) make recommendation and/or decision
6) implement decision
7) evaluate performance
Integrative Decision Model (IDM)
used when data is stored in spreadsheets & other tools that shadow the formal accounting system
Business intelligence (BI) technologies
include analytics, data mining, & predictive modeling; typically under the control of the enterprise's IT professionals
Four components in an intelligence enterprise system are
1) data storage
2) data extraction
3) data analysis
4) data visualisation
Intelligence System Components
data is stored using operational databases, data warehouses, & other data storage