Chapter 12 Flashcards
Business Analytics (BA)
Using past data to make decisions or recommendations for future actions
Business Intelligence (BI)
Tools and methods to collect, store, and analyze data, helping businesses make better decisions
Management
Using resources to achieve organizational goals
Productivity
The ratio of outputs to inputs in a process
Decision
A choice made between two or more options
Herbert Simon Decision Making
Intelligence
Design
Choice
Intelligence Phase
Identify the Problem/Opportunity
Gather Information to Understand the situation
Design Phase
What are my options?
Choice Phase
Select the best solution or course of action.
Implement the decision
Problem Structure
Structured Decisions
Unstructured Decisions
Semi Structured Decisions
Structured Decisions
Routine and Repetitive Problems
Unstructured Decisions
No standardized procedures
Semi-Structured Decisions
Combination of standard solution procedures and individual judgement.
Nature of Decision
Operational Control
Management Control
Strategic Planning
Operational Control
Executing specific tasks efficiently and effectively
Management control
Acquiring and using resources efficiently in accomplishing organizational goals
Strategic planning
The long-range goals and policies for growth and resource allocation
Three Business Analytics Targets
Development of Specific Analytics Application
Enterprise-Wide Analytics Infrastructure
Support for Organizational Transformation
Business Analytics Process
Identify the Problem
Use Advanced Technologies
Analyze Data
Collaborate
Apply Solutions
Business Analytics (BA) Tools
Online Analytical Processing (OLAP)
Data Mining
Decision-Support Systems (DSSs)
Descriptive Analytics
Summarizes past events to help decision-makers learn from past behaviors
Online Analytical Processing (OLAP)
helps analyze data by breaking it into parts (slicing and dicing) to look at different categories (dimensions) and numbers (measures)
Data Mining
The process of searching for valuable business insights in large databases, data warehouses, or data marts
Decision-Support Systems (DSSs)
Business intelligence systems that combine models and data to help solve semi-structured or unstructured problems, with extensive user involvement
Predictive Analytics
Uses recent and historical data to identify patterns and predict future outcomes or trends
Prescriptive Analytics
Recommends one or more actions and shows the likely outcomes of each decision
BA Tools in Prescriptive Analytics
Optimization
Simulation
Augmented Analytics
An analytics platform that integrates artificial intelligence (AI) and machine learning (ML) to automate the processes of data selection, preparation, insight generation, and the communication of those insights
Dashboard
A business analytics tool that provides quick access to real-time information and direct access to management reports.
Geographic Information System (GIS)
A computer-based system used to capture, integrate, manipulate, and display data through digitized maps
