DSS Lection 6-7 Business Intelligence, Data Warehousing

Practice flashcards covering Business Intelligence, Data Warehousing characteristics and implementation, and Business Performance Management (BPM) including S.M.A.R.T goals and financial/operational KPIs.

Business Intelligence (BI)

An umbrella term that combines architectures, tools, databases, analytical tools, applications, and methodologies to enable easy access to data and models for business analysis.

Data Warehouse

A physical repository where relational data are specially organized to provide enterprise-wide, cleansed data in a standardized format to support DSS functions.

Subject-oriented (DW)

A characteristic of a data warehouse meaning it is organized around major subjects of the enterprise rather than specific business processes.

Non-volatile (DW)

A characteristic of a data warehouse meaning that data does not change once entered; it is relevant to a specific moment in time and is preserved for historical analysis.

Data Mart

A sub-database of a data warehouse that is kept as a copy for a specific purpose, allowing a department or business unit to store, manage, and analyze data.

Dependent Data Mart

A subset of data that is created directly from a data warehouse.

Independent Data Mart

A small data warehouse designed for a specific strategic business unit or a department.

Metadata

A characteristic of data warehousing that provides data about the data contained within the repository.

Business Performance Management (BPM)

A framework organizations use to monitor, measure, and improve business performance against strategic goals, combining reporting on the past with planning for the future.

Develop Strategy

The initial stage of the BPM cycle consisting of identifying overall goals, vision, values, strategic objectives, and profitability targets.

S.M.A.R.T Methodology

A goal-setting framework used in BPM to create clear and achievable objectives, standing for Specific, Measurable, Achievable, Relevant, and Time-bound.

Specific (SMART)

A criterion where the goal should be clear and well-defined, answering what needs to be accomplished and who is involved.

Measurable (SMART)

A criterion where the goal should include criteria to track progress and answer questions like 'How much?' or 'How many?'

Achievable (SMART)

A criterion where the goal should be realistic and possible with available resources and capabilities.

Relevant (SMART)

A criterion where the goal should align with broader business or personal objectives, answering why the goal matters.

Time-bound (SMART)

A criterion where the goal should have a clear deadline or timeframe for accomplishment.

Key Performance Indicators (KPIs)

Metrics used by business leaders to determine whether an organization's performance is on track to meet its goals.

Gross Profit Margin

A profitability KPI measured as $\text{Gross Profit} \times 100 \times \frac{1}{\text{Revenue}}$. It measures profit after production costs.

Return on Investment (ROI)

A profitability KPI measured as $\text{Net Gain from Investment} \times 100 \times \frac{1}{\text{Cost of Investment}}$. It evaluates investment returns.

Current Ratio

A liquidity KPI measured as $\frac{\text{Current Assets}}{\text{Current Liabilities}}$, assessing the ability to pay short-term liabilities.

Inventory Turnover

A manufacturing and efficiency KPI measured as $\frac{\text{Cost of Goods Sold}}{\text{Average Inventory}}$, indicating how quickly inventory is sold.

Net Promoter Score (NPS)

A customer loyalty KPI measured as $\text{\% Promoters} - \text{\% Detractors}$, measuring customer willingness to recommend the company.

Customer Retention Rate

A customer KPI measured as $((\text{Customers at End} - \text{New Customers}) \times 100) \times \frac{1}{\text{Customers at Start}}$.

Customer Acquisition Cost (CAC)

A KPI measured as $\frac{\text{Total Marketing \& Sales Costs}}{\text{Number of New Customers}}$.

Return on Marketing Investment (ROMI)

A marketing KPI measured as $((\text{Revenue from Marketing} - \text{Marketing Cost}) \times 100) \times \frac{1}{\text{Marketing Cost}}$.

Sales Forecast Accuracy

A sales KPI measured as $(\text{Actual Sales} \times 100) \times \frac{1}{\text{Forecasted Sales}}$, measuring the accuracy of sales predictions.

Overall Equipment Effectiveness (OEE)

A manufacturing efficiency KPI measured as $\text{Availability} \times \text{Performance} \times \text{Quality}$.

First Pass Yield (FPY)

A quality control KPI measured as $(\text{Good Units Produced} \times 100) \times \frac{1}{\text{Total Units Produced}}$, measuring products made correctly without rework.

Mean Time Between Failures (MTBF)

A maintenance KPI measured as $\frac{\text{Total Operating Time}}{\text{Number of Failures}}$, measuring average operating time before equipment failure.

Lost Time Injury Frequency Rate (LTIFR)

A workplace safety KPI measured as $(\text{Number of Lost Time Injuries} \times 1000000) \times \frac{1}{\text{Total Hours Worked}}$.