CENTRE FOR MANAGEMENT STUDIES

Online Submission of Assignment- 02

MBA-Full Time

Semester-II (2020)

Subject: INFORMATION SYSTEMS FOR MANAGEMENT

Paper Code : MBA (FT) CP- 207

Roll No: 26

Submitted by: Submitted to:

Imran Alam Dr. Aleem Ali
Your Roll No...26....... Name: Imran Alam
Centre for Management Studies
MBA-Full Time
Semester-II (2020)
Online Submission of End-Term Assignment
Subject: Information Systems for Management
Paper Code : MBA (FT) CP- 207

Attempt any two Questions from each assignment. Each question carries equal marks.
Max. Marks: 25 for each assignment

Assignment 2

Q1. What is the scope of data mining in industry? Discuss some advantages
of data mining?
Ans1. Data mining is a process used by companies to turn raw data into useful information.
By using software to look for patterns in large batches of data, businesses can learn more about
their customers to develop more effective marketing strategies, increase sales and decrease
costs. Data mining depends on effective data collection, warehousing, and computer
processing.
Example : Grocery stores are well-known users of data mining techniques. Many supermarkets
offer free loyalty cards to customers that give them access to reduced prices not available to
non-members. The cards make it easy for stores to track who is buying what, when they are
buying it and at what price. After analyzing the data, stores can then use this data
to offer customers coupons targeted to their buying habits and decide when to put items on sale
or when to sell them at full price.

The Scope of Data Mining:

Data mining derives its name from the similarities between searching for valuable business
information in a large database, for example, finding linked products in gigabytes of store
scanner data and mining a mountain for a vein of valuable ore. Both processes require either
sifting through an immense amount of material, or intelligently probing it to find exactly where
the value resides.

Given databases of sufficient size and quality, data mining technology can generate new
business opportunities by providing these capabilities:

i. Automated prediction of trends and behaviors: Data mining automates the

process of finding predictive information in large databases. Questions that
traditionally required extensive hands-on analysis can now be answered directly
from the data — quickly. A typical example of a predictive problem is targeted
marketing. Data mining uses data on past promotional mailings to identify the
targets most likely to maximize return on investment in future mailings. Other
predictive problems include forecasting bankruptcy and other forms of default, and
identifying segments of a population likely to respond similarly to given events.

ii. Automated discovery of previously unknown patterns: Data mining tools

sweep through databases and identify previously hidden patterns in one step. An
example of pattern discovery is the analysis of retail sales data to identify seemingly
unrelated products that are often purchased together. Other pattern discovery
problems include detecting fraudulent credit card transactions and identifying
anomalous data that could represent data entry keying errors.

Data mining techniques can yield the benefits of automation on existing software and hardware
platforms, and can be implemented on new systems as existing platforms are upgraded and
new products developed. When data mining tools are implemented on high performance
parallel processing systems, they can analyze massive databases in minutes. Faster processing
means that users can automatically experiment with more models to understand complex data.
High speed makes it practical for users to analyze huge quantities of data. Larger databases, in
turn, yield improved predictions.

Advantages of data mining are as follows:

1. Marketing/Retails
In order to create models, marketing companies use data mining. This was based on history to
forecast who’s going to respond to new marketing campaigns such as direct mail, online
marketing, etc. This means that marketers can sell profitable products to targeted customers.

2. Finance/Banking
Since data extraction provides information to financial institutions on loans and credit
reports, data can determine good or bad credits by creating a model for historic customers. It
also helps banks to detect fraudulent transactions by credit cards that protect the owner of a
credit card.
3. Researchers
Data mining can motivate researchers to accelerate when the method analysis the data.
Therefore, they can work more time on other projects. Shopping behaviors can be detected.
Most of the time, you may experience new problems while designing certain shopping
patterns. Therefore data mining is used to solve these problems. All the information on these
shopping patterns can be found by mining methods. This process also creates an area where
all the unexpected shopping patterns are calculated. This data extraction can be beneficial
when shopping patterns are identified.

4. Determining Customer Groups

We are using data mining to respond from marketing campaigns to customers. It also
provides information during the identification of customer groups. Some surveys can be used
to begin these new customer groups. And these investigations are one of the forms of data
mining.

5. Increases Brand Loyalty

In marketing campaigns, mining techniques are used. This is to understand their own
customers ‘ needs and habits. And from that customers can also choose their brand’s clothes.
Thus, you can definitely be self-reliant with the help of this technique. However, it provides
possible information when it comes to decisions.

6. Helps in Decision Making

These data mining techniques are used by people to help them in making some sort of
decisions in marketing or in business. Today, with the use of this technology, all information
can be determined. Also, using such technology, one can decide precisely what is unknown
and unexpected.

7. Increase Company Revenue

Data mining is a process in which some kind of technology is involved. One must collect
information on goods sold online, this eventually reduces product costs and services, which is
one of the benefits of data mining.

8. To Predict Future Trends

All information factors are part of the working nature of the system. The data mining systems
can also be obtained from these. They can help you predict future trends and with the help of
this technology, this is quite possible. And people also adopt behavioral changes.
9. Increases Website Optimization
We use data mining to find all kinds of unseen element information. And adding data mining
helps you to optimize your website. Similarly, this data mining provides information that may
use the technology of data mining.

Q2. List out the OLAP operations and explain the same with an example?
Ans2. Online analytical processing, or OLAP, is an approach to answer multi-dimensional
analytical (MDA) queries swiftly in computing. OLAP is part of the broader category
of business intelligence, which also encompasses relational databases, report writing and data
mining.
Typical applications of OLAP include business reporting for sales, marketing, management
reporting, business process management (BPM),budgeting and forecasting, financial
reporting and similar areas, with new applications emerging, such as agriculture. The
term OLAP was created as a slight modification of the traditional database term online
transaction processing (OLTP).
OLAP tools enable users to analyze multidimensional data interactively from multiple
perspectives. OLAP consists of three basic analytical operations: consolidation (roll-up), drill-
down, and slicing and dicing. Consolidation involves the aggregation of data that can be
accumulated and computed in one or more dimensions. For example, all sales offices are rolled
up to the sales department or sales division to anticipate sales trends. By contrast, the drill-
down is a technique that allows users to navigate through the details. For instance, users can
view the sales by individual products that make up a region's sales. Slicing and dicing is a
feature whereby users can take out (slicing) a specific set of data of the OLAP cube and view
(dicing) the slices from different viewpoints. These viewpoints are sometimes called
dimensions (such as looking at the same sales by salesperson, or by date, or by customer, or by
product, or by region, etc.)
Databases configured for OLAP use a multidimensional data model, allowing for complex
analytical and ad hoc queries with a rapid execution time. They borrow aspects of navigational
databases, hierarchical databases and relational databases.
OLAP is typically contrasted to OLTP (online transaction processing), which is generally
characterized by much less complex queries, in a larger volume, to process transactions rather
than for the purpose of business intelligence or reporting. Whereas OLAP systems are mostly
optimized for read, OLTP has to process all kinds of queries (read, insert, update and delete).

Basic analytical operations of OLAP

Four types of analytical operations in OLAP are:
 1. Roll-up
2. Drill-down
3. Slice and dice
4. Pivot (rotate)

1) Roll-up:

Roll-up is also known as "consolidation" or "aggregation." The Roll-up operation can be

performed in 2 ways

1. Reducing dimensions
2. Climbing up concept hierarchy. Concept hierarchy is a system of grouping things
based on their order or level.

Roll-up is performed by climbing up a concept hierarchy for the dimension location.

Initially the concept hierarchy was "street < city < province < country".
On rolling up, the data is aggregated by ascending the location hierarchy from the level of
city to the level of country.
The data is grouped into cities rather than countries.
When roll-up is performed, one or more dimensions from the data cube are removed.

Consider the following diagram:

 • In this example, cities New jersey and Lost Angles and rolled up into country USA
• The sales figure of New Jersey and Los Angeles are 440 and 1560 respectively. They
become 2000 after roll-up
• In this aggregation process, data is location hierarchy moves up from city to the country.
• In the roll-up process at least one or more dimensions need to be removed. In this
example, Quater dimension is removed.

2) Drill-down

In drill-down data is fragmented into smaller parts. It is the opposite of the rollup process. It
can be done via

• Moving down the concept hierarchy

• Increasing a dimension

Drill-down is performed by stepping down a concept hierarchy for the dimension time.
Initially the concept hierarchy was "day < month < quarter < year."
On drilling down, the time dimension is descended from the level of quarter to the level of
month.
When drill-down is performed, one or more dimensions from the data cube are added.
It navigates the data from less detailed data to highly detailed data.
Consider the diagram above:

• Quater Q1 is drilled down to months January, February, and March. Corresponding

sales are also registers.
• In this example, dimension months are added.

3) Slice:

Here, one dimension is selected, and a new sub-cube is created. Following diagram explain
how slice operation performed:

• Here Slice is performed for the dimension "time" using the criterion time = "Q1".
• It will form a new sub-cube by selecting one or more dimensions.

A Slice represents two-dimensional view of an OLAP Cube that arranges data in a grid,
similar to a spreadsheet; a Slice functions much like a report or a query in an RDBMS in that
it returns data based on a request for what to see. In an Cube, a Slice can, optimally, be created
through drag-and-drop of Dimensions and their Members; optimally, the Slice view will
refresh instantaneously.

4)Dice:

This operation is similar to a slice. The difference in dice is you select 2 or more dimensions
that result in the creation of a sub-cube.
The dice operation on the cube based on the following selection criteria involves three
dimensions.

• (location = "Toronto" or "Vancouver")

• (time = "Q1" or "Q2")
• (item =" Mobile" or "Modem")

5) Pivot

The pivot operation is also known as rotation. It rotates the data axes in view in order to provide
an alternative presentation of data. Consider the following diagram that shows the pivot
operation.

Pivot table is a data summarization tool that is used in the context of data
processing. Pivot tables are used to summarize, sort, reorganize, group, count, total or average
data stored in a database. It allows its users to transform columns into rows and rows into
columns. It allows grouping by any data field.

In Pivot, you rotate the data axes to provide a substitute presentation of data.

In the following example, the pivot is based on item types.