Plug In18 BI

Flashcard maker : Lily Taylor
What is a technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible?
Cluster analysis
What reveals the degree to which variables are related and the nature and frequency of these relationships in the information?
Association detection
. Which of the following represents market basket analysis?
. Analyzes website information
B. Analyzes checkout scanner information
C. Detects customers’ buying behavior
D. All of the above*
What is time-series information?
Time-stamped information collected at a particular frequency
Which of the following is a form of statistical analysis?
Forecasting
What are forecasts?
Predictions made on the basis of time-series information
Which company uses statistical analysis to automatically detect potential issues, provide quick and easy access to reports, and perform multidimensional analysis on all warranty information?
Whirlpool
Which of the following is not one of the parallels between challenges in business and those of war?
Using tactical business intelligence
What is the primary problem most organizations face today concerning information?
Data rich, information poor
What types of BI decisions include predicting sales, determining correct inventory levels and distribution schedules among outlets, and loss prevention?
Retail and sales BI decisions
What types of BI decisions include forecasting levels of bad loans and fraudulent credit card use, credit card spending by new customers, and which kinds of customers will best respond to new loan offers?
Banking BI decisions
What types of BI decisions include predicting machinery failures and finding key factors that control optimization of manufacturing capacity?
Operations management BI decisions
What types of BI decisions include forecasting claim amounts and medical coverage costs, classifying the most important elements that affect medical coverage; predicting which customers will buy new insurance policies?
Insurance BI decisions
Which of the following can use BI to make informed decisions?
A. Law enforcement industry
B. Airline industry
C. Broadcasting industry
D. All of the above*
Which of the following is a result of implementing business intelligence systems and tools allowing business users to receive data for analysis?
A. Reliable
B. Understandable
C. Easily Manipulated
D. All of the above*
Which of the following is the result of BI that implies that the data have been documented as the certified or approved data for the enterprise?
Reliable
Which of the following is the result of BI that the processes that deliver the data to the business community are well documents and there are no surprises such as missing or inaccurate data?
Consistent
Which of the following is the result of BI that the data have been defined in business terms and calculations and algorithms are easily accessed for comprehension?
Understandable
Which of the following is the result of BI that it is no longer required to have a PhD in statistics to get sophisticated analytics delivered to users’ fingertips?
Easily manipulated
What do organizations using BI ask to find the root causes to problems and provide solutions?
Why
Which type of BI manages daily operations and integrates BI with operational systems?
Operational BI
Which type of BI conducts short-term analysis to achieve strategic goals?
Tactical BI
Which type of BI achieves long-term organizational goals?
Strategic BI
Which form of BI has managers and analysts as its primary users?
Operational BI
Which form of BI uses the time frame of days to weeks to months?
Tactical BI
Which form of BI uses real-time metrics for its data?
Operational BI
Which form of BI uses months to years as its time frame?
Strategic BI
What is data latency?
The time duration to make data ready for analysis and loading the data into the database
What is analysis latency?
The time from which data are made available to the time when analysis is complete
What is decision latency?
he time it takes a human to comprehend the analytic results and determine an appropriate action
Which of the following is a business benefit of BI?
Up-to-the minute information for everyone
Which of the following is one of the four main categories of BI benefits?
Quantifiable benefits
Which type of BI benefits includes working time saved in producing reports and selling information to suppliers?
Quantifiable benefits
Which type of BI benefits are the results of discoveries made by creative users?
Unpredictable benefits
Which type of BI benefits includes improved communication throughout the enterprise, improved job satisfaction of empowered users, and improved knowledge sharing?
Intangible benefits
Improving the quality of business decisions has a direct impact on costs and revenue.
TRUE
Improving the quality of business decisions has a direct impact on costs and revenue.
antifiable benefits, indirectly quantifiable benefits, unpredictable benefits, and intangible benefits are the four primary categories of BI benefits.
TRUE
Quantifiable benefits, indirectly quantifiable benefits, unpredictable benefits, and intangible benefits are the four primary categories of BI benefits.
Data latency is the time from which data are made available to the time when analysis is complete.
FALSE
Analysis latency is the time from which data are made available to the time when analysis is complete.
The three forms of BI include operational, tactical, and value-added.
FALSE
The three forms of BI include operational, tactical, and strategic.
Data is a strategic asset for a business and if the asset is not used the business is wasting resources.
TRUE
Data is a strategic asset for a business and if the asset is not used the business is wasting resources.
Market __________ analysis analyzes such items as websites and checkout scanner information to detect customers’ buying behavior and predicts future behavior by identifying affinities among customers’ choices of products and services.
Basket
__________ analysis performs such functions as information correlations, distributions, calculations, and variance analysis.
Statistical
_______ are predictions made on the basis of time-series information.
Forecasts
Describe three types of data-mining analysis capabilities.
(1) Cluster analysis is a technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible. (2) Association detection reveals the degree to which variables are related and the nature and frequency of these relationships in the information. (3) Statistical analysis performs such functions as information correlations, distributions, calculations, and variance analysis.
Explain the problem associated with business intelligence. Describe the solution to this business problem
The issue most organizations are facing today is that it is next to impossible to understand their own strengths and weaknesses, let alone their enemies, because the enormous amount of organizational data is inaccessible to all but the IT department. Please note that organization data includes far more than simple fields in a database, it also includes voice mails, customer phone calls, text messages, video clips, along with the numerous new forms of data organizations are storing. The Problem: Data Rich: Information Poor. The Solution: Business Intelligence. In every organization, employees make hundreds of decisions each day. They can range from whether to give customer X a discount, whether to start producing part Y, whether to launch another direct mail campaign, whether to order additional materials, etc. These decisions are sometimes based on facts, but mostly based on experience, accumulated knowledge, and rule of thumb. That poses a problem because experience, knowledge, and rule of thumb can take years to develop. Some employees never acquire them. Those who do may still fall prey to decision traps or biases in judgment. Improving the quality of business decisions has a direct impact on costs and revenue. For instance, giving a customer a discount may or may not help the bottom line, depending on the profitability of the client over the duration of the relationship. To improve the quality of business decisions, managers can provide existing staff with BI systems and tools that can assist them in making better, more informed decisions. The result creates an agile intelligent enterprise.
Describe the three common forms of data-mining analysis?
The more common forms of data-mining analysis capabilities include Cluster analysis a technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible. Cluster analysis is frequently used to segment customer information for customer relationship management systems to help organizations identify customers with similar behavioral traits, such as clusters of best customers or one-time customers. Association detection reveals the degree to which variables are related and the nature and frequency of these relationships in the information. Maytag’s warranty analysis tool, for instance, uses statistical analysis to automatically detect potential issues, provide quick and easy access to reports, and perform multidimensional analysis on all warranty information. This association detection data-mining tool enables Maytag’s managers to take proactive measures to control product defects even before most of its customers are aware of the defect. The tool also allows Maytag personnel to devote more time to value-added tasks such as ensuring high quality on all products rather than waiting for or manually analyzing monthly reports. Statistical analysis performs such functions as information correlations, distributions, calculations, and variance analysis, just to name a few. Data-mining tools offer knowledge workers a wide range of powerful statistical capabilities so they can quickly build a variety of statistical models, examine the models’ assumptions and validity, and compare and contrast the various models to determine the best one for a particular business issue.
Explain the organization-wide benefits of BI.
Richard Hackathorn of Bolder Technologies developed an interesting graph to demonstrate the value of operational BI. Figure B18.5 shows the three latencies that impact the speed of decision making. These are data, analysis, and decision latencies. Data latency is the time duration to make data ready for analysis, i.e., the time for extracting, transforming, and cleansing the data, and loading it into the database. All this can take time depending on the state of the operational data to begin with. Analysis latency is the time from which data is made available to the time when analysis is complete. Its length depends on the time it takes a business to do analysis. Usually, we think of this as the time it takes a human to do the analysis, but this can be decreased by the use of automated analytics that have thresholds. When the thresholds are exceeded, alerts or alarms can be issued to appropriate personnel, or they can cause exception processes to be initiated with no human intervention needed. Decision latency is the time it takes a human to comprehend the analytic result and determine an appropriate action. This form of latency is very difficult to reduce. The ability to remove the decision making process from the human and automate it will greatly reduce the overall decision latency. Many forward thinking companies are doing just that. For example, rather than send a high value customer a letter informing them of a bounced check (which takes days to get to the customer), an automated system can simply send them an immediate email or voice message informing them of the problem.
Describe the four categories of BI business benefits.
A practical way of breaking down these numerous benefits is to separate them into four main categories:
Quantifiable benefits: Quantifiable benefits include working time saved in producing reports, selling information to suppliers, etc. Indirectly quantifiable benefits: Indirectly quantifiable benefits can be evaluated through indirect evidence— improved customer service means new business from the same customer, and differentiated service brings new customers. Unpredictable benefits: Unpredictable benefits are the result of discoveries made by creative users and a few Intangible benefits: Intangible benefits include improved communication throughout the enterprise,

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