Overview Analitika Bisnis

Arif Imam Suroso

1.1 Understand the need for computerized support of
managerial decision making
1.2 Recognize the evolution of such computerized support
to the current state—analytics/data science
1.3 Describe the business intelligence (BI) methodology
and concepts
1.4 Understand the various types of analytics
1.5 Understand the analytics ecosystem to identify various
key players and career opportunities
 Decision Making and Information Systems

• Business value of improved decision making

– Improving hundreds of thousands of “small” decisions
adds up to large annual value for the business
• Types of decisions:
– Unstructured: Decision maker must provide
judgment, evaluation, and insight to solve problem
– Structured: Repetitive and routine; involve definite
procedure for handling so they do not have to be
treated each time as new
– Semistructured: Only part of problem has clear-cut
answer provided by accepted procedure
INFORMATION REQUIREMENTS OF KEY DECISION-MAKING
GROUPS IN A FIRM
 Decision Making and Information Systems

• Information systems can only assist in some

of the roles played by managers
• Classical model of management: five
functions
– Planning, organizing, coordinating, deciding, and
controlling
• More contemporary behavioral models
– Actual behavior of managers appears to be less
systematic, more informal, less reflective, more reactive,
and less well organized than in classical model
 Decision Making and Information Systems

• Mintzberg’s 10 managerial roles

– Interpersonal roles
1. Figurehead
2. Leader
3. Liaison
– Informational roles
4. Nerve center
5. Disseminator
6. Spokesperson
– Decisional roles
7. Entrepreneur
8. Disturbance handler
9. Resource allocator
10. Negotiator
 Decision Making and Information Systems

• Three main reasons why investments in information

technology do not always produce positive results
1. Information quality
• High-quality decisions require high-quality information
2. Management filters
• Managers have selective attention and have variety of
biases that reject information that does not conform to
prior conceptions
3. Organizational inertia and politics
• Strong forces within organizations resist making decisions
calling for major change
 Decision Making and Information Systems

• High-velocity automated decision making

– Made possible through computer algorithms
precisely defining steps for a highly structured
decision
– Humans taken out of decision
– For example: High-speed computer trading programs
• Trades executed in 30 milliseconds
• Responsible for “Flash Crash” of 2010
– Require safeguards to ensure proper operation and
regulation
 Business Intelligence in the Enterprise

• Business intelligence
– Infrastructure for collecting, storing, analyzing data
produced by business
– Databases, data warehouses, data marts
• Business analytics
– Tools and techniques for analyzing data
– OLAP, statistics, models, data mining
• Business intelligence vendors
– Create business intelligence and analytics purchased
by firms
 BUSINESS INTELLIGENCE AND ANALYTICS FOR DECISION SUPPORT

Business intelligence
and analytics requires a
strong database
foundation, a set of
analytic tools, and an
involved management
team that can ask
intelligent questions
and analyze data.
 Changing Business Environments and Evolving Needs for
Decision Support and Analytics

• Increased hardware, software, and network capabilities

• Group communication and collaboration
• Improved data management
• Managing giant data warehouses and Big Data
• Analytical support
• Overcoming cognitive limits in processing and storing
information
• Knowledge management
• Anywhere, anytime support
 Evolution of Decision Support,
Business Intelligence, and Analytics
 A Framework for Business Intelligence

• DSS → EIS → BI
• Definition of Business Intelligence
– [Broad Definition] An umbrella term that combines
architectures, tools, databases, analytical tools,
applications, and methodologies
– [Narrow Definition] Descriptive analytics tools and
techniques (i.e., reporting tools)
• A Brief History of BI – 1970s → 1980s → 1990s …
• The Origins and Drivers of BI (See Figure 1.9)
• The Architecture of BI (See Figure 1.10)
A Framework for Business Intelligence
A Framework for Business Intelligence: The Architecture of B I
 A Multimedia Exercise in Business Intelligence

• TUN (TeradataUniversityNetwork.com)
– BSI Videos (Business Scenario Investigations)
▪ Analogues to CSI (Crime Scene Investigation)
• Go To
– www.youtube.com/watch?v=NXEL5F4_aKA
• See the
– www.slideshare.net/teradata/bsi-how-we-did-it-the-
case-of-the-misconnecting-passengers.slides
• Discuss the case presented in the video and in the slides
 Transaction Processing Versus Analytic Processing

• Online Transaction Processing (O L T P)

– Operational databases
– E R P, S C M, C R M, …
– Goal: data capture

• Online Analytical Processing (O L A P)

– Data warehouses
– Goal: decision support

• What is the relationship between O L T P

and O L A P?
 Appropriate Planning and Alignment
with the Business Strategy

• Planning and Execution → Business, Organization,

Functionality, and Infrastructure
• Functions served by BI Competency Center
– How BI is linked to strategy and execution of strategy
– Encourage interaction between the potential business
user communities and the IS organization
– Serve as a repository and disseminator of best BI
practices between and among the different lines of
business.
– Standards of excellence in BI practices can be
advocated and encouraged throughout the company
 Real-Time, On-Demand B I is Attainable

• Emergence of real-time BI applications

• Justifying the need
– Is there a need for real-time [is it worth the additional
expense]?
• Leveraging the enablers
– RFID (Radio Frequency Identification)  uses
electromagnetic fields to automatically identify and
track tags attached to objects.
– Web services
– Intelligent agents
 Critical B I System Considerations

• Developing or Acquiring BI Systems

– Make versus buy
– BI shells
• Justification and Cost–Benefit Analysis
– A challenging endeavor, why?
• Security
• Protection of Privacy
• Integration to Other Systems and Applications
 Analytics Overview

• Analytics…a relatively new term/buzz-word

• Analytics…the process of developing actionable
decisions or recommendations for actions based on
insights generated from historical data
• According to the Institute for Operations Research and
Management Science (INFORMS)
– Analytics represents the combination of computer
technology, management science techniques, and
statistics to solve real problems.
Business Analytics Overview
Business Analytics Overview
Business Analytics Overview

BI BA
Business Analytics Overview
(Business) Analytics is the use of:
 data,
 information technology,
 statistical analysis,
 quantitative methods, and
 mathematical or computer-based models
to help managers gain improved insight about
their business operations and make better, fact-
based decisions.
 Pricing
◦ setting prices for consumer and industrial goods, government
contracts, and maintenance contracts
 Customer segmentation
◦ identifying and targeting key customer groups in retail, insurance,
and credit card industries
 Merchandising
◦ determining brands to buy, quantities, and allocations
 Location
◦ finding the best location for bank branches and ATMs, or where to
service industrial equipment
 Social Media
◦ understand trends and customer perceptions; assist marketing
managers and product designers
 Business intelligence (1960s)
◦ Ability to store and analyse data
 “How many units did we sell last month?”
 “What products did customers buy and how much?”
 “How many credit transactions are completed today?”
 Information Systems (a modern discipline of BI)
 Statistics (Regression, Forecast, Data Mining)
 Operations research/Management science
◦ Using math/computer “model” to analyse and find solution of complex
decision problems
 Decision support systems (BI + ORMS)
 Data management
◦ Data storage
 Model management
◦ Stat tools for building, manipulate, solve
models
 Communication management
◦ Interface for user to interact with data
 Benefits
◦ …reduced costs, better risk management, faster
decisions, better productivity and enhanced bottom-line
performance such as profitability and customer
satisfaction.
 Challenges
◦ …lack of understanding of how to use analytics,
competing business priorities, insufficient analytical skills,
difficulty in getting good data and sharing information,
and not understanding the benefits versus perceived
costs of analytics studies.
Business Analytics
 Database queries and analysis
 Dashboards to report key performance measures
 Data visualization
 Statistical methods
 Spreadsheets and predictive models
 Scenario and “what-if” analyses
 Simulation
 Forecasting
 Data and text mining
 Optimization
 Social media, web, and text analytics
 IBM Cognos Express
◦ An integrated business intelligence and planning solution
designed to meet the needs of midsize companies,
provides reporting, analysis, dashboard, scorecard,
planning, budgeting and forecasting capabilities.
 SAS Analytics
◦ Predictive modeling and data mining, visualization,
forecasting, optimization and model management,
statistical analysis, text analytics, and more.
 Tableau Software
◦ Simple drag and drop tools for visualizing data from
spreadsheets and other databases.
 Data: numerical or textual facts and figures that
are collected through some type of measurement
process.
 Information: result of analyzing data; that is,
extracting meaning from data to support
evaluation and decision making.
 Annual reports
 Accounting audits
 Financial profitability analysis
 Economic trends
 Marketing research
 Operations management performance
 Human resource measurements
 Web behavior
 page views, visitor’s country, time of view, length of time, origin
and destination paths, products they searched for and viewed,
products purchased, what reviews they read, and many others.
 Descriptive Analytics

• Descriptive or reporting
analytics
• Answering the question of what
happened
• Retrospective analysis of
historic data
• Enablers
– OLAP/DW
– Data visualization
▪ Dashboards and
Scorecards
– Descriptive statistics
 Predictive Analytics

• Aims to determine what is likely to happen in the future

(foreseeing the future events)
• Looking at the past data to predict the future
• Enablers
– Data mining
– Text mining / Web mining
– Forecasting (i.e., time series)
 Prescriptive Analytics

• Aims to determine the best possible decision

• Uses both descriptive and predictive to create the alternatives,
and then determines the best one
• Enablers
– Optimization
– Simulation
– Multi-Criteria Decision Modeling
– Heuristic Programming
• Analytics Applied to Many Domains
• Analytics or Data Science?
Example of Analytics Applications in a Retail Value Chain
 Example of Analytics Applications in a Retail Value Chain

Analytic
Application Business Question Business Value
Inventory 1. Which products have high demand? 1. Forecast the consumption of fast-moving products and
Optimization 2. Which products are slow moving or order them with sufficient inventory
becoming obsolete? to avoid a stock-out scenario.
2. Perform fast inventory turnover of slow-moving products by
combining them with one in high demand.

Price Elasticity 1. How much net margin do I have on the 1. Markdown prices for each product can be optimized to
product? reduce the margin dollar loss.
2. How much discount can I give on this 2. Optimized price for the bundle of products is identified to
product? save the margin dollar.

Market Basket 1. What products should I combine to create a
Analysis bundle offer?
2. Should I combine products based on slow-
moving and fast-moving characteristics?
3. Should I create a bundle from the same
category or different category line?
1. The affinity analysis identifies the hidden correlations
between the products, which can elp in following values a)
Strategize the product bundle offering based on focus on
inventory or margin. b) Increase cross-sell or up-sell by
creating bundle from different categories or the same
categories, respectively.
 A Brief Introduction to Big Data Analytics

• What Is Big Data? (Is it just “big”?)

– Big Data is data that cannot be stored or processed
easily using traditional tools/means
– Big Data typically refers to data that comes in many
different forms: large, structured, unstructured,
continuous
▪ 3Vs – Volume, Variety, Velocity
– Data (Big Data or otherwise) is worthless if it does not
provide business value (and for it to provide business
value, it has to be analyzed)
• More on Big Data Analytics is in next session
 An Overview of the Analytics Ecosystem

• What are the key players in analytics industry?

• What do they do?
• Is there a place for you to be a part of it?
• There is a need to classify different industry participants in the
broader view of analytics to
– Identify providers (as an analytics consumer)
– Identify roles to play (as a potential provider)
– Identify job opportunities
– Identify investment/entrepreneurial opportunities
– Understand the landscape and the future of computerized
decision support systems
An Overview of the Analytics Ecosystem
 An Overview of the Analytics Ecosystem

• Data Generation Infrastructure Providers

• Data Management Infrastructure Providers
• Data Warehouse Providers
• Middleware Providers
• Data Service Providers
• Analytics Focused Software Developers
– Descriptive, Predictive, Prescriptive
• Application Developers: Industry Specific or General
• Analytics Industry Analysts and Influencers
 An Overview of the Analytics Ecosystem

• Academic Institutions and

Certification Agencies
– Certificates
– Masters programs
– Undergraduate programs
– Offered by
▪ MIS, Engineering
▪ Marketing, Statistics
▪ Computer Science
▪ …
• Regulators and Policy Makers
Business Analytics Careers: 10 Highest
• Analytics User Organizations Paying Jobs and Salaries
 Business Analytics

Sesi V
Sesi I

Sesi II , III Sesi IV Sesi VI

Sesi VII: Presentasi Tugas State of the art dari BA & current research on BA
 Resources

Teradata University Network (TUN)

TeradataUniversityNetwork.com

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