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Business Intelligence and Data Mining

Business Intelligence and Data Mining (BI &DM)

Text Book:
Business Intelligence A Managerial Approach by Efraim Turban, Ramesh Sharda, Dursun Delen and Devid King, 2/e, Pearson, 2012

Reference Material:
Decision Support and Business Intelligence Systems by Efraim Turban, Ramesh Sharda and Dursun Delen, 9/e, Pearson, 2012

Business Intelligence and Data Mining (BI &DM)

Reference Material:
Business Intelligence Strategy A Practical Guide for Achieving BI Excellence by John Boyer, Bill Frank, Brian Green and Tracy Harris, MC Press, 2010 Business Analytics for Manager by Gert H. N. Laursen and Jesper Thorlund, Wiley, 2010

Business Intelligence and Data Mining (BI &DM) Sessions Plan

Introduction to Business Intelligence Decision Support Systems Concepts, Methodologies and Technologies Data Warehousing Business Performance Management Data Mining for Business Intelligence Text and Web Mining Business Intelligence: Implementation and Emerging Trends

Business Intelligence and Data Mining (BI &DM)

BI Implementation: Integration and Emerging Trends

Learning Objectives
Describe the major business intelligence (BI) implementation issues List some critical success factors of BI implementation Describe the importance and issues in integrating BI technologies and applications Understand the needs for connecting BI systems with other information systems Define on-demand BI and its advantages/limitations List and describe representative privacy, major legal and ethical issues of BI implementation

Learning Objectives
Understand Web 2.0 and its characteristics as related to BI and decision support Understand social networking concepts, selected applications, and their relationship to BI Describe how virtual world technologies can change the use of BI applications Describe the integration of social software in BI Know how Radio Frequency Identification (RFID) data analysis can help improve supply chain management (SCM) and other operations Describe how massive data acquisition techniques can enable reality mining

Opening Vignette
BI Eastern Mountain Sports Increases Collaboration and Productivity Company background Problem description Proposed solution Results Answer & discuss the case questions

Opening Vignette
Collaborative Decision Making at Eastern Mountain Sports

Implementing BI An Overview
Decisional Factors in BI Implementation
Reporting and analysis tools
Features, functionality, flexibility, scalability

Scalability, performance, security

ETL Tools
Accessibility, efficiency, usability

Hardware/software, development/training

Tangibles/intangibles - time saving, improved decisions/operations/customer satisfaction/

Implementing BI An Overview
Critical Success Factors for BI Implementation
Business driven methodology and project management b. Clear vision and planning c. Committed management support and sponsorship d. Data management and quality issues e. Mapping the solutions to the user requirements f. Performance considerations of the BI system g. Robust and extensible framework

Managerial Issues Related to BI Implementation

2. 3.

5. 6.


System development and the need for integration Costbenefit issues and justification Legal issues and privacy BI and BPM today and tomorrow Cost justification; intangible benefits Documenting and securing support systems Ethical issues BI Project failures

BI and Integration Implementation

Types of Integration
Functional integration
different [physically separate] applications are provided/used as if it is a single system

Physical integration
packaging the hardware, software, and communication features required to accomplish functional integration

Primary focus in BI (and in this book) is functionalapplication integration

BI and Integration Implementation

Why integrate?
To better implement a complete BI system To increase the capabilities of the BI applications To enable real-time decision support To enable more powerful applications To facilitate faster system development To enhance support activities such as blogs, wikis, RSS feeds, etc.

BI and Integration Implementation

Levels of BI Integration
Functional integration can be within the same BI or across different BI systems
Integration across different BI systems can be accomplished in a loosely coupled fashion input output passing, messaging (SOA) Integration within a BI system is more cohesive with several sub-systems constituting the whole

Embedded Intelligent Systems

Serving as the intelligent agents within BI

Connecting BI Systems to Databases and Other Enterprise Systems

Virtually every BI application requires database or data warehouse access

Multi-tiered Application Architecture

Connecting BI Systems to Databases and Other Enterprise Systems

Integrating BI applications and back-end systems
Web scripting languages (e.g., PHP, JSP, ASP) Application integration servers (e.g., WebLogic) Enterprise application integration integration of large systems (BI to ERP, SCM, CRM, KM, etc.)

Integrating BI and ERP for DSS

ERP captures and stores data BI converts data into information/knowledge Middleware?

On-Demand BI
The limitations of Traditional BI
Complex, time-consuming, expensive

The On-Demand Alternative

On-demand computing = Utility computing SaaS (Software as a service) Allows SMEs to utilize affordable BI On-demand function alternatives
Internally sharing licenses within a firm Sharing licenses with many firms via an ASP

Benefits of On-Demand BI
Ability to handle fluctuating demand
Flexible use of the BI technology pool

Reduced investment/cost
Hardware (servers and peripherals) Software (more features for less) Maintenance (centralized timely updates)

Embodiment of recognized best practices Better flexibility and connectivity with other systems via SaaS infrastructure Better RIO

The Limitations of On-Demand BI

Integration of vendors software with companys software may be difficult The vendor can go out of business, leaving the company without a service It is difficult or even impossible to modify hosted software for better fit with the users needs Upgrading may become a problem You may relinquish strategic data to strangers (lack of privacy/security of corporate data)

Issues of Legality, Privacy and Ethics

Legal issues
Liability for the actions of advice provided by BI Who is liable, if the software advice fails?

Right to be left alone and the right to be free from unreasonable personal intrusions Collecting information about individuals The Web and information collection Mobile user privacy Homeland security and individual privacy

Issues of Legality, Privacy and Ethics

Ethics in Decision Making and Support
Electronic surveillance Software piracy Use of proprietary databases Use of intellectual property such as knowledge Computer accessibility for workers with disabilities Accuracy of data, information, and knowledge Protection of the rights of users

Use of corporate computers for non-work-related purposes (personal use of Internet while working)

Issues of Legality, Privacy and Ethics

A Model of Ethical Problem Formulation
Unfolding to control expansion

Typical problem formulation (T.O.P perspective) Stakeholder expansion

Typical problem formulation (T.O.P perspective)

Problem formulation expansion Integration of moral intensity components Problem definition


= Stakeholder

Emerging Topics in BI An Overview

Web 2.0 revolution as it relates to BI in (Section 6.7) Online social networks (Section 6.8) Virtual worlds as related to BI (Section 6.9) Integration social networking and BI (Section 6.10) RFID and BI (Section 6.11) Reality Mining (Section 6.12)

Emerging Topics in BI An Overview The Future of BI

Web 2.0 revolution as it related to BI (Section 6.7) Online social networks (Section 6.8) Virtual worlds as related to BI (Section 6.9) Integration social networking and BI (Section 6.10) RFID and BI (Section 6.11) Reality Mining (Section 6.12)

In 2009, collaborative decision making emerged as a new product category that combines social software with business intelligence platform capabilities. In 2010, 20 percent of organizations will have an industry-specific analytic application delivered via software as a service as a standard component of their business intelligence portfolio. By 2012, business units will control at least 40 percent of the total budget for BI. By 2012, one-third of analytic applications applied to business processes will be delivered through coarse-grained application mashups. Because of lack of information, processes, and tools, through 2012, more than 35 percent of the top 5,000 global companies will regularly fail to make insightful decisions about significant changes in their business and markets.

Emerging Topics in BI An Overview

The Web 2.0 Revolution

Web 2.0: a popular term for describing advanced Web technologies and applications, including blogs, wikis, RSS, mashups, user-generated content, and social networks Objective: enhance creativity, information sharing, and collaboration Difference between Web 2.0 and Web 1.x Use of Web for collaboration among Internet users and other users, content providers, and enterprises

The Web 2.0 Revolution

Web 2.0: an umbrella term for new technologies for both content as well as how the Web works Web 2.0 has led to the evolution of Web-based virtual communities and their hosting services, such as social networking sites, video-sharing sites Companies that understand these new applications and technologiesand apply the capabilities early onstand to greatly improve internal business processes and marketing

The Web 2.0 Revolution Characteristics of the Web 2.0

The ability to tap into the collective intelligence of users. The more users contribute, the better. Data is made available in new or never-intended ways. Web 2.0 data can be remixed or mashed up. Web 2.0 relies on user-generated and user-controlled content and data (enhanced collaboration). Lightweight programming techniques and tools let nearly anyone act as a Web site developer. The virtual elimination of software-upgrade cycles makes everything a perpetual beta or work-in-progress and allows rapid prototyping, using the Web as an application development platform.

The Web 2.0 Revolution Characteristics of the Web 2.0

Users can access and manage applications entirely through a browser. An architecture of participation and digital democracy encourages users to add value to the application as they use it. There is a major emphasis on social networks and computing. Information sharing and collaboration is greatly supported. This allows for rapid and continuous creation of new business models. dynamic content, rich user experience, metadata, scalability, open source, and freedom (net neutrality)

The Web 2.0 Revolution

Ajax (Asynchronous JavaScript and XML)
An enabling technology for Web 2.0, resulting in rich, interactive, fast-response, user-friendly GUIs Makes Web pages feel more responsive by exchanging small amounts of data with the server behind the scenes (eliminated the need for reloading the complete Web page) Leads to improved Web page interactivity, loading speed, and usability

Many companies and new business models have emerged based on Web 2.0

Online Social Networking Basics and Examples

A social network is a place where people create their own space, or homepage, on which they write blogs; post pictures, videos, or music; share ideas; and link to other Web locations they find interesting.
The mass adoption of social networking Web sites points to an evolution in human social interaction

The size of social network sites are growing rapidly, with some having over 100 million members growth
for successful ones 40 to 50 % in the first few years and 15 to 25 % thereafter

Online Social Networking Social Network Analysis Software

It is used to identify, represent, analyze, visualize, or simulate networks with
Nodes agents, organizations, or knowledge Edges relationships identified from various types of input data (relational and non-relational)

Various input and output file formats exist SNA software tools include
Business-oriented social network tools such as InFlow and NetMiner Social Networks Visualizer, or SocNetV, which is a Linuxbased open source package

Mobile Social Networking

Social networking where members converse and connect with one another using cell phones or other mobile devices MySpace and Facebook offer mobile services Mobile only services: Brightkite, and Fon11 Basic types of mobile social networks
1. 2.

Partnership with mobile carriers (use of MySpace over AT&T network) Without a partnership (off deck) (e.g., MocoSpace and Mobikade)

Mobile Enterprise Networks Mobile Community Activities (e.g., Sonopia)

Major Social Network Services

Facebook: The Network Effect
Launched in 2004 by Mark Zuckerberg (former Harvard student) It is the largest social network service in the world with over 500 million active users worldwide Initially intended for college and high school students to connected to other students at the same school In 2006 opened its doors to anyone over 13; enabling Facebook to compete directly with MySpace.

Major Social Network Services

Orkut: Exploring the Very Nature of Social Networking Sites
The brainchild of a Turkish Google programmer It was to be Google's homegrown answer to MySpace and Facebook Format is similar to others: a homepage where users can display every facet of their personal life they desire using various multimedia applications A major highlight of Orkut ability to create and control communities Also supports many languages

Implications of Business and Enterprise Social Networks

Business oriented social networks can go beyond advertising and sales Emerging enterprise social networking apps:
Finding and Recruiting Workers
See Application Case 14.2 for a representative example

Management Activities and Support Training Knowledge Management and Expert Location
e.g.,;; Caterpillar

Enhancing Collaboration Using Blogs and Wikis Within the Enterprise >

Implications of Business and Enterprise Social Networks

Survey shows that best-in-class companies use blogs and wikis for the following applications:
Project collaboration and communication (63%) Process and procedure document (63%) FAQs (61%) E-learning and training (46%) Forums for new ideas (41%) Corporate-specific dynamic glossary and terminology (38%) Collaboration with customers (24%)

Virtual Worlds
Virtual worlds have existed for a long time in various forms stereoscopes, Cinerama, simulators, computer games, They are artificial worlds created by computer systems in which the user has the impression of being immersed Examples:
Second Life ( Google Lively ( EverQuest (
Avatars ?

Second Life as a DSS

Easy access and low cost Experienced and dedicated designer/builders Tools and venues for communications-driven decision support ( A large, dedicated user base Impression management / creativity enhancement Time compression Easy data integration from real life using RSS feeds Encourages active participation and experiential learning

Second Life as a DSS

Learning time and training costs Distractions are numerous Pranksters and spam are common Technology problems persist Chat is a very slow communication tool Resistance to use Addiction Participation in most of these virtual environments requires downloading of a "plug-in"

Virtual Tradeshows


Social Networks and BI: Collaborative Decision Making

Collaborative decision making (CDM) combines social software and BI
CDM is a category of decision-support system for nonroutine, complex decisions that require iterative human interactions. Ad hoc tagging regarding value, relevance, credibility, and decision context can substantially enrich both the decision process and the content that contributes to the decisions. Tying BI to decisions and outcomes that can be measured will enable organizations to better demonstrate the business value of BI.

How CDM Works

Wal-Mart's RFID mandate in June 2003 DoD, Target, Albertson's, Best Buy, RFID is a generic technology that refers to the use of radio frequency waves to identify objects. RFID is a new member of the automatic identification technologies family, which also includes the ubiquitous barcodes and magnetic strips.

How does RFID work?

RFID system
a tag (an electronic chip attached to the product to be identified) an interrogator (i.e., reader) with one or more antennae attached a computer (to manage the reader and store the data captured by the reader)

Active tag versus Passive tags

Data Representation for RFID

RFID tags contain 96 bits of data in the form of serialized global trade identification numbers (SGTIN) [see]

RFID for Supply Chain BI

RFID in Retail Systems
Functions in a distribution center
receiving, put-away, picking, and shipping

Sequence of operations at a receiving dock

1. 2. 3. 4. 5.

unloading the contents of the trailer verification of the receipt of goods against expected delivery (purchase order) documentation of the discrepancy application of labels to the pallets, cases, items sorting of goods for put-away or cross-dock

RFID for Supply Chain BI

RFID in Retail Systems

RFID Data Sample

RFID in Retail Systems

RFID for BI in Supply Chain

Better SC visibility with RFID systems
Timing/duration of movements between different locations especially important for products with limited shelf life Better management of out-of-stock items (optimal restocking of store shelves) Help streamline the backroom operations: eliminate unnecessary case cycles, reorders Better analysis of movement timings for more effective and efficient logistics

RFID + Sensors for Better BI

Knowing the location and health of goods (i.e., exception) during transportation

Reality Mining
Identifying aggregate patterns of human activity trends (see by MIT & Columbia University) Many devices send location information
Cars, buses, taxis, mobile phones, cameras, and personal navigation devices Using technologies such as GPS, WiFi, and cell tower triangulation

Enables tracking of assets, finding nearby services, locating friends/family members,

Reality Mining
Citisense: finding people with similar interests
A map of an area of San Francisco with density designation at place of interests

See nse.php for real-time animation of the content.