Chapter 12 Information Systems

Data driven

To rely on evidence and data rather than intuition or personal experience when making business decisions

Analytics

the process of acquiring, analyzing, and publishing data with an objective of discovering or revealing patterns in data that will inform an individual

Analytics Information System

an information system that supports analytics

Decision support systems (DSS)

an information system used in support of decision making

Data mart

subset of read-only data in a data warehouse that is packaged for subsequent analysis by a particular client within the firm

Analysis

method of breaking a thing down to examine its details in order to discover or reveal its essential features

Descriptive analysis

to be informed about current conditions

RFM analysis

ranks customers according to the recency, frequency, and monetary value of their purchase

Slicing and Dicing

repeated use of basic analysis operations such as sorting, grouping, filtering, and calculating

Predictive analysis

same as descriptive analytics but in data mining the statistics used are much more sophisticated and comlpex and the objective is better predicted

Regression analysis

supervised data mining alaysis that estimates the values of parameters in a linear equation. Used to determine the relative influence of variables on an outcome and also to predict the future values of that outcome

Market basket analysis

unsupervised data mining analysis that helps determine sales patterns. Shows that the products that customers tends to buy together

Text mining

Analytical technique that extracts insights from unstructured data sources, typically textual documents

Sentiment analysis

classifies opinions about a business, product, or service, typically as either positive or negative

Linear programming (LP)

a mathematical modeling technique to find the best course of action when variables are linear

Visualization

use of images or diagrams for communicating a message. Like bar charts or infographics

Big data

data collections that differ from rational databases by their huge volume, rapid velocity, and great variety D

Data mining

type of informing process that uses sophisticated statistical analyses to uncover patterns in a large database of data in order to improve prediction

MapReduce

a technique used for harnessing the power of thousands of computers working in parallel

Hadoop

open-source program supported by the Apache foundation that implements MapReduce on potentially thousands of computers

Auditing Process

offical, unbiased examination of an organizations financial accounts

Dirty Data

problematic data

Granularity

level of detail in data

Clickstream data

website data that describes a customers clicking behavior

Digital twins (shadow)

digital representation of an object using real time data, a digital counterpart of a real thing

A/B testing

a method that compares two versions of something

Conversion rate

The percentage of users who take a desired action, such as buying a product or signing up.

Cross-selling

Encouraging customers to buy additional, related products (e.g., suggesting fries when someone buys a burger).

Dashboard

A visual display that summarizes key data and metrics in charts and tables for quick understanding.

Data broker

A company that collects, buys, and sells data about individuals or businesses.

Data warehouse

A large, centralized collection of data that is designed for reporting and analysis, not for everyday operations.

Dimension

A category or attribute used to organize and analyze data (e.g., time, product, location).

Drill Down

Moving from a general level of data to more detailed levels to gain deeper insight.

Measure

A numerical value that can be analyzed (e.g., sales, profit, quantity).

NoSQL database

A non-relational database designed to handle large, unstructured, or rapidly changing data.

Online analytical processing (OLAP)

A system used for complex analysis of data, allowing fast querying, slicing, dicing, and drill-downs.

Online transactional processing (OLTP)

A system that supports real-time business transactions, such as order entry or banking.

Operational database

A database used to run day-to-day business processes and store current transaction data.

Prescriptive analytics

Analytics that not only predicts future outcomes but recommends actions to achieve the best results.

SAP HANA

An in-memory database and platform from SAP that allows extremely fast processing of large data sets.

Self-serve analytics

Tools that allow non-technical users to access, explore, and analyze data without needing IT support.