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Experiencing M I S

Ninth Edition

Chapter 3

Business Intelligence Systems

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What is a Business Intelligence System?

3-1 How do organizations use business intelligence (B I) systems?

Business Intelligence Systems (BI) are information systems that process operational, social, and other data to identify patterns, relationships, and trends for use by business professionals and other knowledge workers

Decision Support Systems is a synonym for decision-making BI systems.

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Components of Business Intelligence (B I) Systems

3-1 How do organizations use business intelligence (B I) systems?

Figure 3-1 Structure of a Business Intelligence System

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What are Typical Uses for B I?

3-1 How do organizations use business intelligence (B I) systems?

Typical Uses of BI Systems Include:

    • Changes in Purchasing Patterns (for marketing purposes)
    • BI for Entertainment – Ex: Spotify processes data on customers’ listening habits to determine locations where popular songs are heard most
    • Just-in-time Medical Reporting – Analyze records as they are entered

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Three Primary Activities in the B I Process

Figure 3-3 Three Primary Activities in the B I Process

Push Publishing – Delivers BI to users without request

Pull Publishing – Requires user to request BI results

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Using Data Warehouses and Data Marts to Acquire Data

3-3 How do organizations use data warehouses and data marts to acquire data?

  • Data Warehouse is a facility for managing an organizations BI data
  • Functions of a data warehouse include:
    • Obtain data from operational, internal, and external databases.
    • Cleanse data.
    • Organize and relate data.
    • Catalog data using metadata.
  • Data Mart is a smaller data collection for a department or functional area

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Components of a Data Warehouse

3-3 How do organizations use data warehouses and data marts to acquire data?

Figure 3-8 Components of a Data Warehouse

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Data Warehouses Versus Data Marts

3-3 How do organizations use data warehouses and data marts to acquire data?

Figure 3-11 Data Mart Examples

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Types of B I Analysis

3-4 What are three techniques for processing B I data?

Figure 3-12 Three Types of B I Analysis

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Reporting Analysis

3-4 What are three techniques for processing B I data?

  • Process of sorting, grouping, summing, filtering, and formatting structured data
  • Structured data – Data in rows and columns like tables
  • Exception reports – Produced when something out of predefined bounds occurs
  • Dynamic reports – BI documents that are updated at the time they are requested

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Data Mining

3-4 What are three techniques for processing B I data?

  • Application of statistical techniques to find patterns and relationships among data for classification and prediction
  • Combined discipline of statistics, mathematics, artificial intelligence, and machine learning

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Two Broad Categories of Data Mining

3-4 What are three techniques for processing B I data?

  1. Unsupervised procedures
    • Does not start with a priori hypothesis or model
    • Hypothesized model created afterward based on analytical results to explain patterns found
      • Example: Cluster analysis

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Supervised Data Mining

3-4 What are three techniques for processing B I data?

  1. Supervised data mining uses a priori model to compute outcome of model
  • Prediction, such as multiple linear regression
  • Ex: CellPhoneWeekendMinutes

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Big Data

3-4 What are three techniques for processing B I data?

  • Huge volume
    • Petabyte and larger
  • Rapid velocity
    • Generated rapidly
  • Great variety
    • Structured data, free-form text, log files, graphics, audio, and video

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