Ch. 12 Business Analytics Flashcards
What is Business Analytics
Business analytics (BA)
* Developing actionable decisions or recommendations
* Examines data, formulates analytical models, communicates to decision makers
What is Business Intelligence
Applications, technologies, and processes for gathering, storing, accessing, and
analyzing data
* Help business users make better decisions
What are the inputs and output in mgt.
resources- people, money, materials, and information are inputs
the org. goals - output
The ratio bet. inputs and output is?
Productivity
3 Basic roles for Managers
- Interpersonal
- Informational
- Decisional
Decsion Making is a what process?
Systematic Process
Why do managers need IT
-Number of alternatives is constantly increasing
* Most decisions must be made under time pressure
* Increased uncertainty in the decision environment, making decisions more
complex
* Often necessary to rapidly access remote information, consult with experts, or
conduct a group decision-making session
Framework for computerised Decsion making
- Problem Structure; ranging from highly structured(repetitive problems) , semi, to highly unstructured.
- The Nature of Decisions; operational ,magt.
and strategic planning
Which of the decisions doesn’t use the 3 phases of decision process(intelligence, design and choice)?
Unstructured
What is a Decision Matrix
where all types of problem structures with the categories of nature of decision is combined consisting of NINE CELLS.
The cells and their users
Lower level managers use 1,2,4
Middle managers &prof. staff use 3,5,7
Senior Executive use 6,8,9
Three specific analytics targets that represent different levels of enterprise-side change
-The development of one or a few related analytics applications
* The development of infrastructure to support enterprise-wide analytics
* Support for organizational transformation
What are the BA Process
- Define the business problem
- Consider the data(Streams i.e POS, Clickstream, social media, sensor) then these streams together with org. databases comprise big data- tranform to ETL
- Types of analytical applications
- Presentation tools
What is the heart of the Analytics process
Big data
BA Tools
- Excel
- Multidimensional analysis (also called OLAP)
- Data mining
- Decision-support systems
- Statistical procedures: descriptive statistics; affinity analysis; liner,
multiple and logistic regression; and others
Which business analytics tool incorporates the functionality of many other tools and is most commonly used?
Excel
Steps in Data Reduction
-Descriptive Analysis; what happened in the past
BA tools in descriptive analytics:
* Online analytical processing (OLAP) (i.e., multidimensional analysis)-slicing and dicing
* Data mining
* Decision-support systems
* Sensitivity analysis
* What-if analysis
* Goal-Seeking analysis
Predictive Analysis; examine recent and past data to predict the future outcomes.
-Examples of fields where data mining (predictive analytics) applications are used:
* Retailing and sales, banking
* Manufacturing and production
* Insurance, police work
* Health care
* Marketing, politics
* Weather, social good
Prescriptive Analysis; attempts to quantify the effect of future decisions in order to advise on possible outcomes before the decisions are actually made.
- BA tools in prescriptive analytics:
* Statistical procedures include:
* optimization
* simulation
* decision trees
Data Reduction
conversion of raw data into smaller amt. of useful info.
What is a backward solution approach
Goal seeking analysis
The purpose of Predictive Analytics is to tell decision makers what will happen in the future
No, it can only forecast what MIGHT happen in the future based on probability.
2 basic operations data mining can perform,
Identify previous patterns
predicting trends and behaviors
Augmented Analytics
is a rapidly emerging type of analytics that integrates artificial intelligence (AI) and machine learning (ML) into the traditional analytics process
Presentation Tools
- Dashboard; provides easy access and timely info. Capabilities; drill down, critical success factors, key performance indicators, status access, trend analysis, exception reporting.
- Geographic Information Systems; computer-based system, capturing, integrating, manipulating, and displaying data using digitized maps
Prescriptive data requires just predictive analytics
No, also with actionable data and a feedback system that tracks the outcome produced by the action taken
