chapter 12 business analytics. chapter outline 12.1 managers and decision making 12.2 what is...
TRANSCRIPT
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CHAPTER 12
Business Analytics
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CHAPTER OUTLINE
12.1 Managers and Decision Making
12.2 What Is Business Intelligence?
12.3 Business Intelligence Applications for Data Analysis
12.4 Business Intelligence Applications for Presenting Results
12.5 Business Intelligence in Action: Corporate Performance Management
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LEARNING OBJECTIVES
1. Explain different ways in which IT supports managerial decision making.
2. Provide examples of different ways that organizations make use of business intelligence.
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LEARNING OBJECTIVES (continued)
3. Explain the value that different BI applications provide to large and small businesses.
4. Offer examples of how businesses and government agencies can use different BI applications to analyze data.
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LEARNING OBJECTIVES (continued)
5. Explain how your university could use CPM to effect solutions to two campus problems at your university.
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Chapter Opening Case
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12.1 Managers and Decision Making
Management
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The Manager’s Job and Decision Making
Managers have three basic roles
(Mintzberg 1973)
Interpersonal roles
Informational roles
Decisional roles
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The Manager’s Job & Decision Making (continued)
Decisions and Decision making
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Decision Making Process
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Why Managers Need IT Support
The number of alternatives to be considered constantly increases.
Decisions must be made under time pressure.
Decisions are more complex.
Decision makers can be in different locations and so is the information.
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A Framework for Computerized Decision Analysis
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Problem Structure
The first dimension deals with the problem structure, where the decision making processes fall along the continuum ranging from highly structured to highly unstructured decisions.
Highly structured
Semistructured Higly unstructured
Order entryLoan approval Building new plant
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The Nature of Decisions
The second dimension of decision support deals with the nature of decisions
Operational control
Management control
Strategic planning
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12.2 What Is Business Intelligence?
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Can We Predict the Weather? (IT’s About Business 12.2)
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The Scope of Business Intelligence
Smaller organizations:Excel spreadsheets
Larger organizations:Data mining, predictive analytics, dashboards
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How Organizations Use BI
Develop few, related BI applications
Data mart
Develop infrastructure to support enterprisewide BI
Enterprise data warehouse
Support organizational transformation
Enterprise data warehouse
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12.3 Business Intelligence Applications for Data Analysis
Multidimensional Analysis or Online Analytical Processing (OLAP)
Data Mining
Decision Support Systems
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Multidimensional Analysis or Online Analytical Processing (OLAP)
Example of Data Cube
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Data Mining
Data
Trends, behaviors, unknown patterns
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Data Mining (continued)
Data Mining Used in Targeted Marketing
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How Business Intelligence Works
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Decision Support Systems (DSS)
DSS capabilitiesSensitivity analysis
What-if analysis
Goal-seeking analysis
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DSS Example
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12.4 Business Intelligence Applications for Presenting Results
Dashboards
Data Visualization TechnologiesGeographic Information Systems
Real-Time BI
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Digital Dashboard (example)
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Digital Dashboard (example)
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Digital Dashboard Demo
http://www.informationbuilders.com/rfr/qtdemo/AdvVis_ExecDash/AdvVis_ExecDash.html
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A Bloomberg Terminal
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Management Cockpit
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Data Visualization Systems
The Power of Visualization
Even though a picture is “worth a thousand words,” we have to be very careful about just what we are seeing.
Remember, on the Internet, it is
“user beware!”
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New York City Police Department Command Center
Data visualization in action
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Example of data visualization
Hans Rosling at the TED Talks
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Geographic Information System
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GIS for existing land use
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GISMO
GISMO is a geographic information system developed for the city of Corvallis, Oregon.
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Real-Time BI (IT’s About Business 12.4)
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Reality Mining
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12.5 Business Intelligence in Action: Corporate Performance Management
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Chapter Closing Case