Data Warehousing, Business Intelligence &

Analytics Artificial Intelligence

Managing Big Data
Data warehouse
• A decision support database that is maintained separately from the organization’s operational database
• Supports information processing by providing a solid platform of consolidated, historical data for analysis.

Data warehousing: constructing and using data warehouses

• ETL - Extraction Transform Load

Characteristics of Data Warehouse

• Subject-oriented: Organized around business entities (e.g., customers, products, and employees) rather than business
processes
• Integrated: many transformations to unify source data from independent, heterogenous data sources (units of
measure, data formats, naming conventions)
• Time-variant: historical data (time stamped); snapshots of business processes captured at different points in time
• Nonvolatile: new data are appended periodically; existing data is not changed; warehouse data may be archived after
its usefulness declines
• Also: multidimensional; uses OLAP

OLAP vs OLTP
• High performance for both systems
• DBMS—tuned for online transaction processing (OLTP): access methods, indexing, concurrency control, recovery
• Data Warehouse—tuned for online analytical processing (OLAP): complex OLAP queries, multidimensional view,
consolidation
Operational Database vs Data Warehouse

Data Marts
Data marts store data for a single or a few applications
• A low-cost, scaled-down version of a data warehouse designed for end-user needs in a strategic business unit (SBU) or
individual department
• Hub and spoke stores data in a central data warehouse while simultaneously maintaining dependent data marts that
obtain their data from the central repository.
The most common architecture is one central enterprise data warehouse, without data marts, called “a single version of
the truth.”

Data Lakes
• Data warehouse - for complex queries on structured data
• Data Lake - a central repository that stores all data of an organization regardless of source and structure
- No data transformation process
- No uniform structure
- No data model
- Apache Hadoop (open-source)

Decision Making
A Decision is a choice among two or more alternatives that individuals and groups
make.
Decision making is a systematic process.
Economist Herbert Simon (1977) described decision making as composed of three major phases:
intelligence, design, and choice, followed by implementation and evaluation.
Managers and Decision Making
Why do managers need IT support?
• The number of alternatives is constantly increasing.
• Most decisions must be made under time pressure.
• Decisions are becoming more complex.
• Decision makers, as well as the information, can be situated in different locations.
• Decision continuum

Business Intelligence
Broad category of applications, technologies and processes to help business users make
better decisions
• enables decision makers to quickly ascertain the status of a business enterprise by examining key information

Both business analytics and data analytics involve working with and manipulating data, extracting insights from data,
and using that information to enhance business performance.
• Data analysts tend to work more closely with the data itself, while business analysts tend to be more involved
in addressing business needs and recommending solutions.

Smaller Organizations –(Excel) Spreadsheets

Larger Organizations - Sophisticated/commercial applications for data mining, data visualization, predictive/prescriptive
analytics, etc.
A requirement for competing in the marketplace?!

In the past, data was analyzed to make future decisions. Today, data can be analyzed to make real-time decisions, spot
emerging trends and uncover insights that would not be evident using legacy data processes.

Business Analytics
The process of developing actionable decisions or recommendations for actions based on insights from historical data
using applications, technologies, and processes.
• A subset of BI: practice of using your company’s data to anticipate trends and outcomes

Includes data mining, statistical analysis, and predictive modeling that help make more informed decisions.

Three specific analytics targets that represent different levels of enterprise-side change:
• The development of one or a few related analytics applications.
• The development of infrastructure to support enterprise-wide analytics.
• Support for organizational transformation.
Business Analytics Tools
OLAP/Multidimensional data analysis
• Slicing and dicing data stored in multidimensional format
• drills down in the data to greater detail, and
• aggregates the data.

Decision Support Systems

• Sensitivity analysis
• what-if analysis
• goal-seeking analysis

Statistical procedures
• Descriptive statistics; affinity analysis; linear, multiple and logistic regression; and others

Data mining
Identifying associations, sequences or patterns, clustering, forecasting etc.
• predicting trends and behaviours e.g. for targeted marketing and predicting bankruptcy
• identifying previously unknown patterns e.g. for detecting fraudulent credit card transactions

Descriptive Analytics
Summarizes what has happened in the past and enables decision makers to learn from past behaviours
BA tools in descriptive analytics:
• Online analytical processing (OLAP) (i.e., multidimensional analysis)
• Data mining
• Decision-support systems
• Sensitivity analysis
• What-if analysis

Predictive Analytics
examines recent and historical data to detect patterns and predict future outcomes and trends
Applications of predictive analytics:
• Retailing and sales, banking
• Manufacturing and production
• Insurance, police work

Prescriptive Analytics Contd.

Goes beyond descriptive and predictive models by recommending one or more courses of action and identifying the
likely outcome of each decision
• Requires predictive analytics plus actionable data and a feedback system to track the outcome produced by
the action taken
Statistical procedures include:
• Optimization
• Simulation
• Decision trees
Artificial Intelligence
Artificial Intelligence
• behavior by a machine that, if performed by a human being, would be considered intelligent
Intelligent Behavior
• learning or understanding from experience
• making sense of ambiguous or contradictory messages
• responding quickly and successfully to new situations

AI Applications
• Robotics
• Intelligent Agents/AI-powered Assistants
• Personalized Shopping
• Fraud Prevention

AI Technologies
• Expert Systems
• Machine Learning
• Deep Learning
• Neural Networks
• Natural Language Processing
• Computer Vision
• Speech Recognition