Appendix F business intelligence and data mining

data latency

The time duration to make data ready for analysis, including extracting, transforming, and cleansing data, and loading it into the database.

analysis latency

The time from which data are made available to the time when analysis is complete.

decision latency

The time it takes a human to comprehend the analytic result and determine an appropriate action.

data mining

The process of analyzing data to extract information not offered by the raw data alone.

data profiling

The process of collecting statistics and information about data in an existing source.

data replication

The process of sharing information to ensure consistency between multiple data sources.

recommendation engine

A data mining algorithm that analyzes a customer's purchases and actions on a website, recommending complementary products.

estimation analysis

Determines values for an unknown continuous variable behavior or estimated future value.

affinity grouping analysis

Reveals the relationship between variables, including the nature and frequency of those relationships.

market basket analysis

Evaluates items such as websites and checkout scanner information to detect customers’ buying behavior and predict future behavior.

cluster analysis

A technique used to divide an information set into mutually exclusive groups, maximizing similarity within groups and minimizing similarity between groups.

classification analysis

The process of organizing data into categories or groups for its most effective and efficient use.

data mining tool

Uses a variety of techniques to find patterns and relationships in large volumes of information that predict future behavior and guide decision making.

prediction

A statement about what will happen or might happen in the future, such as predicting future sales or employee turnover.

optimization model

A statistical process that finds the way to make a design, system, or decision as effective as possible, maximizing productivity or minimizing waste.

forecasting model

Predictions based on time-series information allowing users to manipulate the time series for forecasting activities.

time-series information

Time-stamped information collected at a particular frequency.

regression model

A statistical process for estimating the relationships among variables.

agile BI

An approach to business intelligence that incorporates agile software development methodologies to improve the outcomes of BI initiatives.

strategic BI

helps with planning, results in marketing campaigns

operational BI

helps with immediate actions, results in sales revenue

tactical BI

helps with daily analysis, results in refined campaign

estimation analysis

determines values for an unknown continuous variable behavior or estimated future value

affinity grouping analysis

reveals the relationship between variables along with the nature and frequency of the relationships

cluster analysis

a technique used to divide an information set into mutually exclusive groups such that the members o reach group are as close together as possible to one another and the different groups are as far apart as possible

classification analysis

the process of organizing data into categories or groups for its most effective and efficient use

 

Benefits of BI include:

• Single point access to information for all users

• BI across organizational departments

• Up-to-the-minute information for everyone