Business Intelligence – Chapter 1

question

What information is provided by the descriptive analytics employed at Magpie Sensing?
answer

Set point of the storage system’s thermostat, the typical range of temperature values in the storage system, and the duty cycle of the system’s compressor, are monitored and reported in real time (Pg. 4)
question

What type of support is provided by the predictive analytics employed at Magpie Sensing?
answer

Determine the set point of the storage unit’s thermostat and alert the systems users if the system is incorrectly configures, depending on the various types of products stored. Sends alerts about possible temperature violations based on the storage unit’s average temperature and subsequent compressor cycle runs. Reports possible human errors, such as failing to shut the storage unit doors or having an incomplete seal, by analyzing the temperature trend and alerting the users via Web interface, text message, or audible alert before the temperature bounds are actually violated. Compressor or a power failure can be detected. The estimated time before the storage unit reaches an unsafe temperature can be determined, which allows users to look for back. up solutions to prevent spoilage. Provide prescriptive recommendations for improving the cold storage processes and business decision making (pg. 5)
question

Define Business Intelligence (BI)
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is an umbrella term that combines architectures, tools, databases, analytical tools, applications, and methodologies. (pg. 8)
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List and describe the major components of BI.
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Data warehouse – source data Business Analytics – a collection of tools for manipulating, mining, and analyzing the data in the data warehouse -help users to transform data into knowledge Business performance management (BPM) – for monitoring and analyzing performance – also referred to as corporate performance management (CPM) – is an emerging portfolio of applications within the BI framework that provides enterprises tools they need to better manage their operations User interface – a dashboard, provide comprehensive graphical/pictorial view of corporate performance measures, trends and exceptions. (Pg. 10, PowerPoint Slide 1-17, 18)
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What is BI governance?
answer

BI governance – the general process of intelligence creation by identifying and prioritizing BI projects A typical set of issues for the BI governance team is to address (1) creating categories of projects (2) defining criteria for project selection (3) determining and setting a framework for managing project risk (4) managing and leveraging project interdependencies and (5) continually monitoring and adjusting the composition of the portfolio (Pg. 13-14)
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What is intelligence gathering?
answer

Intelligence gathering – the collection of reputable sources of intelligence, the processing of that intelligence for purity and reliability – the analysis of raw intelligence to produce usable and actionable information – and the mechanisms for the appropriate dissemination of that information to the right users. (pg. 15)
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Define OLTP.
answer

Online transaction processing (OLTP) – handles a company’s routine ongoing business – are constantly involves in handling updates (add/edit/delete) to what we might call operational databases (pg. 15 – PowerPoint Slide 1-23)
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Define Online Analysis Processing (OLAP)
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systems are involved in extracting information from data stored by OLTP systems – often built on top of a data warehouse where the data is not transactional (Pg. 15 – PowerPoint Slide 1-24)
question

Describe the major types of BI users
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Host of users in the enterprise – many of whom should be involved from the outset of a data warehouse investment decision Users who focus at the strategic level and those who are more oriented to the tactical level Not just the top executives – but all levels of management which will provide what is needed to whom he/she needs it (Pg. 16 – PowerPoint Slide 1-25)
question

List some of the implementation topics addressed by Gartner’s report.
answer

-One of the first steps is to assess the IS organization – the skill set of the potential classes of users – and whether the culture is amenable to change. -A company can prepare a detailed action plan following the assessment of the IS organization -Another critical issue for BI implementation success is the integration of several BI projects among themselves and with the other IT systems in the organization and its business partners. (Pg. 16-17)
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Why is it difficult to justify BI applications?
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There is a large number of intangible benefits – both direct and intangible benefits need to be identifies -as the number of potential Bi applications increases. (pg. 18)
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Define analytics.
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Analytics – the process of developing actionable decisions or recommendations for actions based upon insights generated from historical data According to INFORMS, analytics represents the combination of computer technology – management science techniques – and statistics to solve real problems. (pg. 19)
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What is descriptive analytics? What are the various tools that are employed in descriptive analytics?
answer

Descriptive or reporting analytics refers to knowing what is happening in the organization and understanding some underlying trends and causes of such occurrences. Tools employed in descriptive analytics: – Visualization – ad hoc – Reporting Trend Analysis – Business Reporting -Dashboards – Scorecards – Data warehousing (PowerPoint Slide 1-31 – Pg. 20)
question

What is a data warehouse? How can data warehousing technology help to enable analytics?
answer

Development of data warehouses is made up of consolidated data sources and available relevant data in a form that enables appropriate reporting and analysis – such as reports – queries – alerts – and trends using various reporting tools and techniques. Visualization tools have become a key player in this area. Using the latest visualization tools in the marketplace – powerful insights in the operations of the organization can be seen. (pg. 20)
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What is predictive analytics? How can organizations employ predictive analytics?
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Predictive analytics aims to determine what is likely to happen in the future. This analysis is based on statistical techniques as well as other more recently developed techniques that fall under the general category of data mining. – The goal of these techniques is to be able to predict what the customer is likely to do next. – A number of techniques are used in developing predictive analytical applications, including various classification algorithms. – Classification techniques such as the decision tree models and neural networks to predict how well a product is selling – Clustering algorithms for segmenting customers into different segments to be able to target specific groups of people (Pg. 20-21)
question

What is prescriptive analytics? What kind of problems can be solved by prescriptive analytics?
answer

Prescriptive analytics – The goal is to recognize what is going on as well as the likely forecast and make decisions to achieve the best performance possible. – Optimizing the performance of a system – Simulation – Decision modeling – Expert systems (pg. 23-24 – PowerPoint Slide 1-31)
question

How can analytics aid in objective decision making?
answer

Many organizations in the world are now embracing analytical techniques to stay competitive and achieve growth. Many organizations provide consulting solutions to the businesses in employing perspective analytical solutions. It is equally important to have proactive decision makers in the organizations who are aware of the changing economic environment as well as the advancements in the field of analytics to ensure that appropriate models are employed. (pg. 25-26)
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What is Big Data analytics?
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Big Data analytics is a technique in storing and processes Big Data. (pg. 27) Big Data analytics is now enabled by the advancements in technologies that aid in storing and processing of vast amounts of rapidly growing data. (pg. 28)
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What are the sources of Big Data?
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Major sources of big data are clicksteams from websites – postings on social media sites – and data from traffic -sensors – or weather. (pg. 27)
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What are the characteristics of Big Data?
answer

Big data is data that cannot be stored in a single storage unit – refers to data that is coming in many different forms – structured – unstructured – in a stream – and so forth. (Pg. 27)

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