Chapter 17: Data Management, BI, Analytics & Databases

What is data?

Raw facts and figures without context or organization.

How is information defined?

Data presented in a context that answers questions or supports decision-making.

What constitutes knowledge?

Insight derived from experience, expertise, and synthesis of information.

What is the VRIO framework in the context of data?

Data can provide a sustainable competitive advantage if it is Valuable, Rare, Imperfectly imitable, and Non-substitutable.

Define Business Intelligence (BI).

A catchall term combining reporting, data exploration, ad hoc queries, and sophisticated data modeling/analysis.

What does analytics involve?

The extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions.

What is Artificial Intelligence (AI)?

Computer software that seeks to reproduce or mimic human thought, decision-making, or cognitive functions.

What is Generative AI?

AI technology that learns patterns and structure from training data to generate new outputs based on user prompts.

Define Machine Learning (ML).

A category of AI that leverages massive datasets to improve prediction accuracy on its own without explicit programming.

What is dynamic pricing?

Setting prices in real-time or near-real-time based on changing supply and demand conditions.

What does omnichannel refer to?

Providing customers with an integrated shopping experience and unified customer view across multiple channels.

What is a database?

A single table or collection of related tables.

What is a table in a database?

A list of data arranged in structured columns (fields) and rows (records).

What defines a column in a database?

It defines the category of data that a table can hold (e.g., Student ID, First Name).

What is a row in a database?

Represents a single instance of whatever entity the table keeps track of (e.g., a specific student's record).

What is a primary key?

A field that uniquely identifies each record in a database table.

What is a foreign key?

A key that appears multiple times in a table and links back to a primary key in another table to establish relationships.

What is a relational database?

The standard database architecture where tables are logically related based on common keys.

What is Structured Query Language (SQL)?

The standard programming language used to create, query, update, and manipulate relational databases.

Define NoSQL.

Non-relational, schema-less databases designed to process massive volumes of unstructured or semi-structured Big Data.

What is a Data Warehouse?

A massive centralized database designed to aggregate and standardize data across an entire enterprise for decision-making.

What is a Data Mart?

A focused database repository built to address the specific concerns or analytical needs of a single business unit.

What is a Data Lake?

A flexible Big Data repository that stores structured and unstructured raw data in native formats.

What is ETL?

The process of extracting raw data from disparate systems, transforming it into a standardized format, and loading it into a data warehouse.

What does OLAP stand for?

Online Analytical Processing tools that summarize and organize data into multidimensional data cubes for rapid 'slicing and dicing'.

Why should TPS not be used for complex queries?

Running complex queries on a Transaction Processing System (TPS) consumes processing bandwidth, slows down transactions, and creates operational bottlenecks.

What are Ad Hoc Reporting Tools?

Tools that enable business users to build custom, on-the-fly reports without waiting for IT intervention.

What is a dashboard in business intelligence?

A visual display summarizing Key Performance Indicators (KPIs) in real-time for executive monitoring.

Define E-Discovery.

The legal process of identifying, holding, and retrieving electronic information to support litigation and compliance.

What is data mining?

Using statistical algorithms and computing to uncover hidden patterns and build predictive models from large datasets.

What is collaborative filtering?

Personalizing user experiences by comparing trends and preferences across similar customer profiles.

What is Market Basket Analysis?

Examining consumer buying patterns to identify products that are frequently purchased together.

What does GIGO stand for in data mining?

Garbage In, Garbage Out; it means flawed or biased input data destroys model validity.

What are Black Swans in the context of data mining?

Extreme, unpredictable events absent from historical training data that cause predictive models to fail.

What is a spurious correlation?

A statistical fluke caused by over-engineering models with excessive variables.

What are the three critical skills for analytics teams?

Information Technology, Quantitative Statistics, and Deep Business Knowledge.

What core strategy does Walmart use for inventory management?

Retail Link, RFID, AI & Robotics to auto-trigger reorders upon cash register scan.

How does Disney leverage dynamic pricing?

Adjusting ticket prices based on demand, weather, and seat location for revenue growth.

What role does the Starbucks Rewards App play in sales?

It drives ~40% of overall sales through personalized offers and mobile order-ahead.

What machine learning tool does Airbnb use for pricing?

Aerosolve for its Smart Pricing tool to suggest rates based on demand and seasonality.

What system did Dr. John Halamka build at Beth Israel Medical Center?

An event-driven system combining electronic health records with AI for real-time treatment guidance.

What technology shift did L.L. Bean make for customer experience?

Transitioned to Hadoop and Google Data Cloud for a unified omnichannel shopping experience.

How did Richmond PD use predictive analytics?

Combined crime logs with payday schedules and weather data to target patrols, cutting crime by 20%.

What did Tesco discover through data mining about 'milk loaf' bread?

It was a destination product for top-tier shoppers, prompting Tesco to retain it as a loss leader.

What is the definition of business intelligence?

Integrates queries, reporting, and predictive modeling for decision-making.

What does VRIO stand for?

Value, Rarity, Imitability, Non-substitutability; features of strategic assets.

What is the difference between a data mart and a data warehouse?

Data marts are targeted; data warehouses are enterprise-wide.

What is e-discovery?

Identifying and preserving digital evidence for legal defense.

What does omnichannel refer to in retail?

An integrated shopping experience across multiple sales channels like store, web, and mobile app.

What is the impact of analytical queries on transaction processing systems?

They drain bandwidth needed for transactions, bogging down TPS.

What does the term 'field' refer to in a database?

A column in a database table that defines specific categories of data.

What is the role of primary and foreign keys in relational databases?

They link related tables within the database.

What does the term 'record' refer to in a database?

A row in a database table that represents a discrete item or entity.

What is the significance of loyalty cards in retail systems?

They capture customer identity and track purchase history to entice cash buyers.