1S ELS - Business INTEMICENCE * CHANGING Business ENVIKonMENT Womplex , Urtating 2 compureRizep DECISION SUPPORT — amponits are moving aggressively to computerized Support of +neir OPEYathms > business (NTELLIGENCE pusiness Pressures — Responses — SMpport mode] + Business Precsuves — result of trays tomperhve business cimate > RESPesES. “= fy awnier the frescurtc » support — t better facilitate he Process * THE Business — Tne environment ia wrich organizations operate frday is becoming more and more Envi onment — ofportunities , and — problems ~ &X. glovalizatim A business Environment factors — markets, Lonsumey demands, teohnology , aA soviet... * ORCRNIZATIMAL Responses, — be reachve , anticipative , Adaptive , ana Practve — Managevs may take actions, such as 4 empuy shatepfe planning # use new 2 innovatine business models. H restrcmre business process A parherrate in wnsiness aliances h improve uvperate’ infeimation systems ao.© CLosime te sTRATERY ar? — one of the major objectives of uemputerized decision support is + facivitate crocing the g°p between the current performance of an exgenizatien & its degired perfrrmanee , a expressed in its mission, ebyectrres , s greats, 2 the ShAter te achiewe “fem. “ MANECERIAL DEuUSION MAKING — The nature of managers’ work A mterpersenal + infermational # decisional o THE neTURE OF mANACEKS WORK MINTZBEKG'S MENACE Kin. ROLES. » nterversonal 1. Figure Wend 2. leader 8. Liason > ihgormationnL 4. Monitor £ Disseminator ©. SpoKe person » Deusionat 1. Entrepreneur @. pisturvance navdier 9. Revource allocator ©. Negotiate + MANAGERIAL DEUSION MAKING — Management is process bY wnich organizational goalc are achieved by using vesmvees. — weurs : resewrces = CUTPUT + attainment of genls — MEASURES OF Guccess : cutets /inpurs — management = dedsion making — decision making + S€leching the best ceiution from -twe or More alternatives | MANAGERIAL PETISIOM maKING — We process of decision making 3 4. Defining the proviem (a decision sitmation that maydeal with come aitfioulty or engines, and giobaiization resurs with an opportunity) in move and more alternatives 2. Constyucting a model that — Covernment requiations , changing, descrives the real-world consumer demand , political Probiem instabiVity = move certainty 3. identifying possivie solutions — TWial and error learning j¢ +o ane modeled prowiem and OStlY and Aiffi cult evaluating the sotutions — environments ave growing 4. aMParing , choosing, ana mote complex fecommending a potential solution 40 me Proviem. # swe weed toe computer support js vit ! “HOW HARD IT IS To fOLLOW THE PRESS 7 Decision surrort system — To Foow 4ne process = (vss) — susticient altevnatives — a concepmatl frameniork soiutions ave weing wonsidered for a process of Supporting — 4nese alternatives should be managerial deuision —making | feasemabiy predicted Usuaiy vy MODELING PeoBLems Comparisons shrula be and employing BUANTITaTivE Aone property MOnELS for solution analysis “DIFFICULTIES IM fOLLowMme THE Decision PRoLESS © COMPUTERIZED SUPPORT FOK — tennoteqy , information PEUISIoM =mMaKine systems , advanced searen = why use computerized decisionSupport systems — improved Ummunication syeedy computations and Aliabwatin increased woductivity of grup members — imprnved darn management — managing giant data Warencuses = auatity support — agiviy suppord — over eornin 4 wagnitve Nimits in processing & stoving informations — vsing the web — anywhere» anytime Support SAN EPRI OFUSION suPPERT FRAMEWORK (GORRY 2 cwTT- Moxtin jaH) Degree of Structuredness (simon 143) — Decisions * tignty as classified as structured (A.A) programmed + ceMml- cructured k ttighhy unstuctured (i.e, Programmed ) — Tres of Contre! (Antony, 1465) — Strategic planning (top - level, tong range ) — Management Control (tactical Planning) — operational contro! + PM ERRLY FRAMEWORK FoR COMPUTERIZED PEUSION SUPPERT — pearee of struchureaness — Four phase decision making Process — intenigence — design — choice —_ imprementeition — Computerized suppers for = Management science (MS) or Operations Research (0k) «ThE OPPlication of a Scientific approach andmodels fo the + Decision support susiems courie Mathematical anarsis ana sotution of tne intellectual resources of Managerial aecision situations indiviauals with tne capavilities C€9., provrems , opportunities) Of tne computer 4o improve tne = Since 19u0's quality of decisions. — futomated atcision susiems (ms) * DS as an Umbrella Term + A pusiness rules-vasea system * Evolution of DS into Business nat uses intettigence to intewigence recommend solutions 40 repetitive * DSS as an umobrenta term: decisions (such as pricing) Describes any computerized sustems — Tne aevision support matrix that supports aecision making in * for semistructured dedsions an organization and unstructured decisions , — OSS as a specific application conventional Mis and — The architecture of DSS management science (MS) feols — pata are insufficient , — Modtis manipuiate data os * supportive information systems Felatea to a specific citation = they caued: pecision support — Khewleage component sustems (ss) = users — user interface * Tht CONCEPT oF pss — THES oF oss - 055 — interactive computer - * model oriented pss: quantitative based sustems, which helpc models used to generate a decision makers utilize data Fecommend solution to a ana models to solve Probiem unshuctured proviems + data-~ oriented DSS: support i CGoKRy 2 svoTT-MoKton , 1441)Od- hoe reporting ana queries “ h FrRMEWORK FOR INTELLIGENCE (8!) — Business intenigence (Bt) ‘pn umbrelia term that combines architterres, fools, datobares, applications , and methodologies * BI is an evowution of decision Support concepts over time * Then: Executive Information sustem * Now: Evenybedy's Informortion system (81) "BI sustem are ennancea with additional wisuatizations, alerts, and performance measurement capavitities + Term Bl emerged fiom industry A BRIEF HISTORY OF BI “The ferm Bl was Wwined by the Gartner Group in mid - 1990s, * However, Me concept is much older — 1970s — Mis reporting — static /Pevioaic reports - 1980s — Executive information sustems (FIs) — 1990s — LAP, aynamic, multidimensional , ad-hoc reporting > coining of -the term *B\’ — 2010 — Incision of Al and Data /Text Mining capavilities ; web-based Portals / Dashboards, Big Pata, social Meaia, Anattics ~ 20205 - “et 40 be seen + DEFINITION oF BI * BI is a content-free expression, so i means different tnings +0 alfferent people. * BI’s major objective is 40 enavie easy access aata (an models) to Provide business managers with he avility 40 conauct analysis transform data +0 + Bl neips inormation (and Knowledge)+0 decisions and finany to action THE ARCHITECTURE OF Bl * A BL Susie was four Major Components — f DATA WAKEMDUSE , with its source data — Business aneritics, a aallection of tole fo mani- Plating , mining and analyzing the data im the data warenense Business PERFORMANCE MANAGEMENT (BRM) , Fer Monitvving and analyzing performance — WG INTERFACE (¢.g. dasibentd) FRAMEWORK FOK Business INTELLIGENCE (BI) DATE WAREHOUSE * oviginaily , included historical data that were organized and summarize, So end Users quid easily view ~ Business oy maniguiake data and information +Toaay , some data warencuses include current data as weil, go ney can previae veal time decision sup port ~epusiness anatutics — Reporting and auevits — havanced anaytics — pata text and Wey wining and other cophisticatca mathematical 2 ctatishzal tool, —oATR muniNe — A process of Seavcning for unknown relationshi¢s or information in large datavases oY data wartheuses | using intelligent ‘vos smon as neural compuning , predictive analytics techniques , or advanced statistical method PERFOKMAVICE MANAvEMETT (Bem) — 4#N advanced performance Measurement and analysic Approach that embraces Planning and chatqu,BPM exknds the monitoring, * Propensity to buy measurtc, and womparing of * Customer profitability gales , profit, Wst, profitavi- * Fraud detection \iry | and other performance * Customer attrition indicators wy intveaucing * channel optimization tne Uonceprs of “management — Styles of B) and fteavack” | Report delivems and alerting — BPM provides a top-down 2. Enterprise Reporting (dachboard , enforcement of Lorpovatt score card ) wide stvaitay 3, Cube Amaiysis (Cce S Dice © pusiness performance management tmaiysis) — user interface + td- hoe Query — dasnyoard &. Statistics 2 Data mining — + A visual presentation of critical data for exe- fh FRAMEWORK TOK BUSINESS curves to view. #atlows — WITELLICENCE (BI) CXEUHVES $0 SE Hot spots * The DSS — 8) connection in S€conds and explore tne 4) The architecture is very simi lay situation since pi evolved srom pss — Dashboards integrate informahen — 2 pss are struchired to airechy from multine business areas Supper specitic decision making # visualization tools Bl sustems are geareq to provide accurate ana timery BUSINESS VALUE OF BI ANALYTICAL information (indirect cupport) APPLICATIONS. 2) Bl has an executive and # customer segmentation strategy orientation whileDSS has been oriented toward analysts 4.) Bl systems are constructed with, COMMEN Cally available +ools ona components tnet are fitted to the necds of organizations ; DSS move Programming is used to ANstuct Custom solutions to very unstvucmred Proviems s Dss weve developed mosty in the academic world ; Bl weve developed mostty by Softwave (omeanies ©) Many tools used by BI ave also wnsidcved DSS tools (¢g.,daia mining 2 Predictive analysis) A MULTIMEDIA EXEKCISE IN BUSINESS MTELLICENCE TAKEWATS 7 * JOU can use data to make decisions * The dedsions may be complex with tradectes vecause of Cayacity - Which is why you may need To automate the Atcisions "The rules yeu use will evolve over time , be vetined. * ou can measure ane Consequences vf dtuisions — good vs. baa * ou can tie deusions +0 wusiness goals ANALTTICS ovERVIEW — Analytics ? — something new or just A ntw name for. = SAS Institute Inc. proposed eignt levels oF amatytics. — The Institute of operations Research and Management Suiences (INFoRM<). Has Weated major initiative 4p aanize and promott analutics.ANALTTICS OVERVIEW A Simple Taxonomy of Analytics (proposed by INFORMS) = Descriptive Analytics — Predictive nalytics ~ Prescriptive -knatytics e AnalyHes or Data Sc-ence ? ova frakytics + Descriptive ~ Questions #* What Wappened ? What is happening? - Enavies A” Business reporting # Dashboards A Sure 4 Data warenousing — Outcomes # Well Attined business Problems 2 oppartunities * Predictive ~ Questions % What with happen? + Why will it happen? — Fravies # Data mining & Text mining % Wer / media mining k Fore casting — outiomes a ReCUVaHE projections 6 ane future states 2 Lonaitions * Prescriptive — Questions A what sneuld | do? 4a Wh ~ Enavies stud 1 Ao? 4 Optimization # Simulation A Deusion modeling A txvert systems — Qutvomts HH PEST possible business atusions 2 transactions. INTRODUCTION Te pie OATH ANALATICS * BIg Data? — not just vig? = volume = velodrty, ~ varidiny