Chapter_12

Analytics

The process of acquiring, analyzing, and publishing data to discover patterns that inform business decisions.

Descriptive Analytics

Involves sorting, categorizing, and summarizing data to understand what happened in the past.

Diagnostic Analytics

Analyzes past performances to determine why a current event has occurred.

Predictive Analytics

Uses historical data to make predictions about possible future outcomes.

Prescriptive Analytics

Offers recommendations for multiple courses of action based on data analysis.

Objectives of the Analytics Process

Effectiveness and efficiency in data analysis and reporting.

Key Components of an Analytics Information System (IS)

Includes hardware, software, data, procedures, and people.

Scalability

The ability of an information system to handle a growing amount of work or to be enlarged to accommodate that growth.

Data Warehouse

A central repository of integrated data from one or more disparate sources, used for reporting and data analysis.

Data Mining

The practice of examining large datasets to uncover patterns and extract useful information.

Market Basket Analysis (MBA)

A data mining technique used to predict cross-selling opportunities by analyzing co-occurrence of products in transactions.

RFM Analysis

A marketing analysis tool used to identify a firm's best customers by measuring Recency, Frequency, and Monetary value.

Big Data

Data characterized by high volume, velocity, and variety that traditional data processing software cannot manage effectively.

NoSQL Databases

Non-relational databases that provide flexibility in data storage and retrieval to handle big data.

Hadoop

An open-source software framework used for the distributed storage and processing of big data.

SAP HANA

An in-memory computing platform that allows for real-time data processing and analytics.

Risks of Business Intelligence

Includes data problems and people problems that can affect the integrity and accuracy of analytics.

Visualization

The representation of data in graphical format to make the information easier to analyze and understand.

OLAP

Online Analytical Processing, a category of software technology that enables analysts, managers, and executives to gain insight into data through fast, consistent, interactive access.