Chapter 7 Flashcards
What are raw facts representing events such as business transactions?
Data
Data that is shaped into a form that is meaningful and useful to human beings is:
Information
What is created by analyzing information; and may lead to action?
Knowledge
What converts data into useful info and, through human analysis, into knowledge?
Business intelligence (BI)
“Business decisions are only as good as the quality of the info used to make them” relates to what term?
Gi-go (garbage in garbage out)
High quality information must be:
- Accurate
- Complete
- Consistent
- Unique
- Timely
What are the 4 primary sources of low-quality info?
1) Online customers purposely enter inaccurate info to protect their privacy
2) Data or info from different systems have different entry formats
3) Call centre operators enter abbreviated info by accident or to save time
4) Third party and external info contains inconsistencies, inaccuracies, and errors
Low-quality info can cause these problems:
- Inability to track customers
- Difficulty to identify valuable customers
- Marketing to nonexistent customers
- Inability to build strong customer relationships
A logical collection of information gathered from many different operational databases that supports business analysis activities and decision-making tasks is a:
Data warehouse
True or false: the primary purpose of a data warehouse is to aggregate info throughout an organization into a single system for decision-making purposes.
True
True or false: A DW is an important asset for the organization to maintain efficiency, profitability, and competitive advantage.
True
True or false: databases store the info for DAY to DAY transactions.
True
What is time-variant, non-volatile, and integrated?
A data warehouse
A process that weeds out and fixes or discards inconsistent, incorrect, or incomplete info is called information_____:
Cleansing or scrubbing
A set of processes by which data is extracted from sources, transformed, and loaded into the data warehouse is called:
ETL (extract, transform, load)
What provides summary and historical data for a single department rather than an entire organization?
A data mart
What uses algorithms to analyze data in a DW to find patterns that can be used to guide decision making?
Data mining
A technique used to divide info into mutually exclusive groups such that the members of each group are as close as possible to one another is called:
Cluster analysis
A technique used to determine the likelihood of events occurring together at a particular time or following each other is called:
Association detection
Applications and technologies used to gather, provide access to, and analyze info to support decision making is called:
Business intelligence
True or false: BI takes the volume of data your organization collects and stores, and turns it into meaningful reports and analysis that everyone can use.
True
What is the most challenging aspect of BI?
Getting data in
What are the 4 characteristics of BI?
1) Reliable
2) Consistent
3) Understandable
4) Easily manipulated
