Module 7

Question 1

What is Business Analytics?

Answer 1

It is the process of developing actionable decisions or recommendations for actions based on insights generated from historical data. Business analytics examines data with a variety of tools and techniques, formulates descriptive, and prescriptive models, and communicates these results to organizational decision makers

Question 2

What is Business intelligence?

Answer 2

It has been defined as a broad category of applications, technologies, and processes for gathering, storing, accessing, and analyzing data to help business users make better decisions. Many experts argue that the terms should be used interchangeably

Question 3

What is management?

Answer 3

It is a process by which an organization achieves its goals through the use of resources

Question 4

What is productivity?

Answer 4

The ratio between the inputs and outputs is an indication of the organization’s productivity, and is often used to measure a manager’s success

Question 5

What is a decision?

Answer 5

A decision refers to a choice among two or more alternatives that individuals and groups make. Decisions are diverse and are made continuously. Decision making is a systematic process

Question 6

What are the three basic roles of managers?

Answer 6

Interpersonal roles
Informational roles
Decisional roles

Question 7

What are business analytics tools?

Answer 7

Excel : the most popular BA tool by far is Excel. For years, BA vendors “fought” against the use of Excel. Eventually, however, they decided to “join it” by designing their software so that it interfaces with microsoft excel.
Multidimensional analysis or online analytical processing : Involves “slicing and dicing” data stored in a dimensional format, drilling down in the data to greater detail, and aggregating data
Data mining : Refers to the process of searching for valuable business information in a large database, data warehouse, or data mart> Data mining can perform two basic operations 1) predicting trends and behaviours and 2) identifying previously unknown patterns. Business analytics applications typically provide users with a view of what has happened; data mining helps to explain why it is happening, and it predicts what will happen in the future
Decision support systems : combine models and data to analyze semi-structure problems and some unstructured problems that involve extensive user involvement. Decision support systems enable business managers and analysts to access data interactively, to manipulate these data, and to conduct appropriate analyses
Models: simplified representations, or abstractions, or reality

Question 8

What are some presentation tools?

Answer 8

Dashboards : provides easy access to timely information and direct access to management reports. They evolved from executive information systems, which were information systems designed specifically for the information needs of top executives
Geographic information systems: A computer based system for capturing, integrating, manipulating, and displaying data using digitized maps. Its most distinguishing characteristic is that every record or digital object has an identifies geographical location. This process, called geocoding, enables users to generate information for planning, problem solving, and decision making

Question 9

What are the interpersonal roles of managers?

Answer 9

Figurehead
Leader
Liaison

Question 10

What are the informational roles of managers?

Answer 10

Monitor
Disseminator
Spokesperson
Analyzer

Question 11

What are the decisional roles of a manager?

Answer 11

Entrepreneur
Disturbance handler
Resource allocator
Negotiator

Question 12

What is the intelligence phase of decision making?

Answer 12

Managers examine a situation and then identify and define the problem or opportunity

Question 13

What is the design phase of decision making?

Answer 13

Decision makers construct a model for addressing the situation. They perform this task by making assumptions that simplify reality and by expressing the relationships among all of the relevant variables. Managers then validate the model by using test data. Finally, decision makers set criteria for evaluating all of the potential solutions that are proposed

Question 14

What is the choice phase of decision making?

Answer 14

Involves selecting a solution or course of action that seems best suited to resolve the problem. This solution (the decision) is then implemented

Question 15

What is the implementation phase of decision making?

Answer 15

Is successful if the proposed solution solves the problem or seizes the opportunity. If the solution fails, then the process returns to the previous phases. Computer-based decision support assists managers in the decision-making process

Question 16

Why do managers need IT support?

Answer 16

The number of alternatives is constantly increasing
Most decisions are made under time constraints
Increased uncertainty requires sophisticated analyses
Group decision making required without incurring major expenses

Question 17

What is the problem structure?

Answer 17

It is where decision-making processes fall along a continuum ranging from highly structured to highly unstructured

Question 18

What is the nature of decisions?

Answer 18

All managerial decisions fall into one of three broad categories:
Operational control - executing specific tasks efficiently and effectively
Management control - acquiring and using resources efficiently in accomplishing organizational goals
Strategic planning - the long-range goals and policies for growth and resource allocation

Question 19

What are the 2 basic data mining operations?

Answer 19

Predicting trends and behaviours
Identifying previously unknown patterns

Question 20

What is sensitivity analysis?

Answer 20

Sensitivity analysis is the study of the impact that changes in one or more parts of a decision-making model have on other parts

Question 21

What is What-If Analysis?

Answer 21

A model builder must make predictions and assumptions regarding the input data, many of which are based on the assessment of uncertain futures. The results depend on the accuracy of these assumptions, which can be highly subjective

Question 22

What is Goal-Seeking Analysis?

Answer 22

Represents a “backward” solution approach. It attempts to calculate the value of the inputs necessary to achieve a desired level of output

Question 23

What is data reduction?

Answer 23

The conversion of raw data into a smaller amount of more useful information

Question 24

What is descriptive analytics?

Answer 24

It summarizes what has happened in the past and allow decision makers to learn from past behaviours. Common examples of descriptive analytics are reports that provide historical insight regarding an organization’s production, financial, operations, sales, finance, inventory, and customers

Question 25

What is predictive analytics?

Answer 25

Utilize a variety of analytics techniques and tools to examine recent historical data in order to detect patterns and predict future outcomes and trends. Predictive analytics provide estimates about the likelihood of a future outcome

Question 26

What is prescriptive analytics?

Answer 26

It goes beyond descriptive and predictive models by recommending one or more courses of action and showing the likely outcome of each decision. Predictive analytics does not predict one possible future, but rather multiple future outcomes based on the decision maker’s actions

Question 27

What is data visualization?

Answer 27

Data presented to users in visual formats such as text, graphics, and tables following data processing. Data visualization makes IT applications are more attractive and understandable to users

Question 28

What is Real-Time Business Analytics?

Answer 28

Includes the use of real time data for analysis as it is created rather than using historical data for analysis