Lesson 3 Flashcards
is a system of computing hardware, high-speed data processing, and analytical algorithms that are combined to make data-based recommendations.
Watson
Steps in Decision Making
- Identify and define the problem
- Determine the criteria that will be used to evaluate alternative solutions
- Determine the set of alternative solutions
- Evaluate the alternatives
- Choose an alternative
involve higher-level issues concerned with the overall direction of the organization; these decisions define the organization’s overall goals and aspirations for the future.
Strategic decisions
are usually the domain of higher-level executives and have a time horizon of three to five years.
Strategic decisions
concern how the organization should achieve the goals and objectives set by its strategy, and they are usually the responsibility of mid level management.
Tactical decisions
usually span a year and thus are revisited annually or even every six months.
Tactical decisions
affect how the firm is run from day to day; they are the domain of operations managers, who are the closest to the customer.
Operational decisions
is the scientific process of transforming data into insight for making better decisions.
Business analytics
is a request for information with certain characteristics from a database.
Data Query
are collections of tables, charts, maps, and summary statistics that are updated as new data become available.
Data Dashboards
techniques used to find patterns or relationships among elements of the data in a large database.
Data Mining
involves the use of probability and statistics to construct a computer model to study the impact of uncertainty on a decision.
Simulation
Types of Modelling in Prescriptive Analytics
- Optimization Model
- Simulation Optimization Model
models that give the best decision subject to constraints of the situation.
Optimization Models
use historical investment return data to determine the mix of investments that yield the highest expected return while controlling or limiting exposure to risk.
Portfolio Models in Finance
provide the cost-minimizing plant and distribution center locations subject to meeting the customer service requirements.
Supply Network Design Models in Operation
Given historical data, yield revenue-maximizing discount levels and the timing of discount offers when goods have not sold as planned.
Price Markdown Models in Retailing
Models under Optimization Model
- Portfolio Models in Finance
- Supply Network Design Models in Operation
- Price Markdown Models in Retailing
combines the use of probability and statistics to model uncertainty with optimization techniques to find good decisions in highly complex and highly uncertain settings.
Simulation Optimization Model
this technique can be used to develop an optimal strategy when a decision maker is faced with several decision alternatives and an uncertain set of future events.
Decision Analysis
is simply a set of data that cannot be managed, processed, or analyzed with commonly available software in a reasonable amount of time.
Big data
Business Analytics in Practice
A. Financial Analytics
B. Human Resource Analytics
C. Marketing Analytics
D. Health Care Analytics
E. Supply Chain Analytics
F. Analytics for Government and Non-profits
G. Sports Analytics
H. Web Analytics
