Post on 28-Dec-2015
Business IntelligenceCIS 9002
Kannan Mohan
Department of CIS
Zicklin School of Business, Baruch College
Learning Objectives
• Articulate the role of business intelligence in organizations
• Explain the use of Data warehouses, Data mining, and Artificial Intelligence in helping business decision making
Examples• Predicting Flu outbreaks
• What drives the price of Bitcoins?
• Target’s foray into analytics
• Watson and Jeopardy
Big Data
• Unstructured
• Massive amounts
• Not amenable for easy processing using conventional databases
Business Intelligence
• Reporting, data exploration, ad-hoc queries, sophisticated data modeling and analysis
• Analytics
• Extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions
Skills for Data Mining
Information
technology
Statistics
Business knowledg
e
Process for Business Intelligence
• Collection: What kind of data? How much data?
• Storage: Structure, access, security
• Analysis: Structure or not? Algorithms, Assumptions
• Interpretation: Correlation vs. Causation, Type I/II errors, Outliers
Data, Information, and Knowledge
• Data: Raw facts and figures
• Information: Data presented in a context so that it can answer a question or support decision making
• Knowledge: Insight derived from experience, expertise, and ability to interpret
Organizing Data• Database: A single table or a collection of related
tables
• Database management systems (DBMS): Software for creating, maintaining, and manipulating data (Eg. MS Access, MS SQL Server, MySQL)
• Structured query language (SQL): A language used to create and manipulate databases
Relational Databases
• How do you organize data?
• How do you connect different pieces of data?
• How do you answer questions that are important for you?
• Tables and relationships
• Avoiding data integrity problems
Data-driven Decision Making
• Data warehouses
• Data marts
• Data mining
• Artificial Intelligence
Components of a Data Warehouse
(Laudon and Laudon, 2009)
Business Intelligence Toolkit
• Provide regular summaries of information in a predetermined format
Canned reports
• Create custom reports on an as-needed basis by selecting fields, ranges, summary conditions, and other parameters
Ad hoc reporting tools
• Display of critical indicators that allow managers to get a graphical glance at key performance metrics
Dashboards
• Takes data from standard relational databases, calculates and summarizes the data, and then stores the data in a special database called a data cube•Data cube: Stores data in OLAP report
Online analytical processing (OLAP)
Data Mining• Identifying hidden patterns in large datasets
• Areas of application:
• Customer churn
• Fraud detection
• Financial modeling
• Hiring and promotion
• Customer segmentation
• Marketing and promotion targeting
• Market basket analysis
• Collaborative filtering
Artificial Intelligence
• Neural network: Examines data and hunts down and exposes patterns, in order to build models to exploit findings
• Expert systems: Leverages rules or examples to perform a task in a way that mimics applied human expertise
• Genetic algorithms: Model building techniques;
• Where computers examine many potential solutions to a problem, iteratively modifying various mathematical models, and comparing the mutated models to search for a best alternative
Business Intelligence
(Laudon and Laudon, 2009)
Challenges of Big Data
• How do you arrive at interpretations?• Role of theory
• Large enough data set to find anything?
• Security and privacy issues - Who has control over the data?
• Analyzing Big Data• Size and speed of analytics
• Distributing over commodity hardware
Relevant Areas• Information Retrieval
• Natural Language Processing
• Machine Learning
• Cognitive Technologies
• Deep Learning
• Data Science
Summary
• What is business intelligence?
• How do we organize data in databases?
• What is the role of data warehousing, data mining, and artificial intelligence in business decision making?