Week 9: Big Data and Business Intelligence Systems Flashcards
What is a Business Intelligence System (BI)?
An IS that processes operational, social and other data to identify patterns, relationships and trends for use by business and other knowledge professionals
What is business intelligence?
The patterns , relationships, trends and predictions identified in data
Why is business intelligence useful?
It can identify future directions of the market
What is big data?
A collection of data sets so large and complex that it is difficult to process using on hand database tools
What is the purpose of a data warehouse?
To prepare, store and manage data specifically for data mining and other analyses
What is dirty data?
Data containing mistakes in spelling/punctuation, incorrect, outdated or duplicated data.
What does too much data cause?
Dimensionality
What is the problem with have data with too many rows/data points/attributes/dimensions?
The data becomes worthless for prediction (because data is so unique, it is harder to spot patterns)
What does a data broker/aggregator do?
Acquires consumer data from various sources, and then sells this data to different companies.
What are two business intelligence applications?
Reporting applications and Data-mining applications
What do reporting applications do?
Integrate data from multiple systems, the sort/group/compare data
What do data-mining applications do?
Discover hidden patterns and relationships in order to classify and predict
What is RFM analysis do?
allows you to analyse and rank customers according to their purchasing patterns.
Whats does RFM analysis stand for?
R = How recently a customer purchased your products
F = How frequently a customer purchases your products
M = How much money a customer typically spends
What does OLAP stand for?
Online analytical processing
What does OLAP do?
App with the ability to sum, count, average and perform other simple operations on data. (Similar tool to RFM)
What is supervised data mining?
Where a model is developed before analysis. It is used for making predictions
What is unsupervised data mining?
Where a model is not created before running analysis. Analysts create hypotheses after analysis to explain patterns found
What is market-basket-analysis?
A data-mining technique for determining sales patterns. It identifies products that customers tend to buy together. (Customers who brought X also brought Y)
What is a decision tree?
A hierarchical arrangement of criteria that predicts a classification or value
