Lecture 01 - Introduction to Business Intelligence

Matt Reindorp BUSAN-160

Business Analytics

The process of developing actionable decisions or recommendations from insights generated from historical data.

Data Visualization

A tool used with business analytics to facilitate the generation and presentation of insights to support decisions.

Decision Support System (DSS)

A system that combines human expertise with computer capabilities, using data and models to solve problems.

Online Transaction Processing (OLTP)

Systems that handle routine ongoing business operations, utilizing operational databases to accurately capture data and store it reliably.

Online Analytical Processing (OLAP)

Systems that allow management to analyze data about the business for information to support decisions. They make relevant data quickly and conveniently for analysis.

Descriptive Analytics

Analyzes past data to provide knowledge of what is currently happening within an organization. Can enable identification of underlying patterns, causes, and effects.

Predictive Analytics

Uses statistical techniques and data mining to predict future outcomes based on current and past data.

Prescriptive Analytics

Aims to not only predict what is going to happen but compare different actions/decisions and select best decisions based on certain performance criteria

Data Warehouse

A centralized repository that stores data copied from operational databases for analysis.

Business Intelligence (BI)

Involves using complex data management to support business decisions and improve performance.

4 Components of BI

• Data Warehouse

• Business Analytics

• Business Performance Management

• User Interface

Data

Collections of observations, transactions or experiences, as measurements of a set of variables.

-Only becomes ___ after processinhg

-can be interpreted from different perspectives

-consists of numbers, words, images, etc.

Raw Data

Typically includes errors, uncertainty, nuances, and biases.

Predictive/Prescriptive Model (PM)

A set of techniques applied to address a specific problem.

Practicalities of Implementing BI

• Business and organizational alignment

• Develop or acquire BI systems

• Justification and cost–benefit analysis

• Security and protection of privacy

• Integration of systems and application