Chapter 6

Question 0

BI is used to interstate data from disconnected, non-integrated sources:

Answer 0

• reports
• databases
• spreadsheets

Question 1

What is business intelligence?

Answer 1

The use of information systems to gather and analyze information from internal and external sources in order to make better business decisions

Question 2

BI can help businesses react better to various threats and opportunities, including:

Answer 2

• unstable markets
• global threats
• fierce competition
• short product life cycles
• stringent regulations
• providing wider choices for consumers
• involves continuous planning at all levels of the business

Question 3

Databases:

Answer 3

• Data and knowledge are among the most important assets for an organization
• Databases are collections of related data organized in a way that facilities data searches, mining, storage & organization

Question 4

OLTP: online transaction processing

Answer 4

• IT systems used to records customer transactions: eg order,deliveries, invoicing, payment etc
• Data from operational systems are useful inputs to BI & analytical applications
• Operational (OLTP) vs. Informational (OLAP) IT systems: One keeps the processes running, the other uses that data to make better decisions, analysis, Bus intelligence

Question 5

Master data:

Answer 5

• is the data that is deemed most important in the operation of a business
• it includes data customers, suppliers, inventory, employees, and so on
• important to have a “single version of the truth”
• BI applications bases analysis on the single version of the truth by accessing multiple databases or using a data warehouse

Question 6

Data warehouse:

Answer 6

Helps eliminate data inaccuracies, redundancy by integrating multiple databases into a single system (repository)

Question 7

Primary purpose of data warehouse

Answer 7

Put key business information into the hands of the decision makers

Question 8

Components of BI ( Business Intelligence) systems

Answer 8

• information and knowledge discovery
• business analytics
• information visualization

Question 9

Knowledge management system

Answer 9

• data>information>knowledge- managing your most important assets
• capturing the skills, routines, practices, principles, formulas, methods, heuristics, and institutions that make your business unique & competitive
• used to improve efficiency, effectiveness, and profitability
• documents storing both facts and procedures

Question 10

Information visualization

Answer 10

Display of complex data relationships using graphical using graphical methods to make it easier to understand complex problems and information

Question 11

Information visualization (how)

Answer 11

• enables managers to quickly grasp results of analyses
• visual analytics
• dashboards
• geographic information systems

Question 12

Hard vs. Soft data in business

Hard data

Answer 12

• facts and numbers

- generated by organizational databases and other systems

Question 13

Hard vs. Soft data in business

Soft data

Answer 13

• non-analytical information. e.g. Latest new stories
• Web-based news portals
• customizable, delivery to different media

Question 14

Visual analytics (complex dashboards)

Answer 14

Interpreting complex output from BI systems is challenging. Visual analytics combines various analysis techniques and interactive visualization

Question 15

Visual analytics are a combination of

Answer 15

• human intelligence and reasoning capabilities
• technology’s retrieval and analysis capabilities
• helps to make sense of “noisy” data or unexpected patterns