Term
| What is Business Intelligence (BI)? |
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Definition
| An umbrella term that includes architectures, tools, databases, applications, and other methodologies aimed at getting current, historical, and predictive views of business operations for purposes of making better business decisions. |
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Term
| What does BI allow us to do with data? |
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Definition
| Transform data to information, then to decisions, and finally into actions. |
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Term
| What is a Decision Support System (DSS)? |
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Definition
| A conceptual framework for a process of supporting managerial decision making usually by modeling problems and employing quantitative models for solutions analysis. |
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Term
What were the Problems Applebee's faced?
What was the Solution to their problem?
What were the results? |
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Definition
Problems:
-Too many paper reports.
-could only view reports weekly
-Managers could not join traffic data with sales data.
-Bad labor could not be monitored.
-Turnaround time could not be monitored.
Solution:
-Teradata BI System.
Results:
-Allowed to see guest count
-Was daily instead of weekly
-Daily Dashboard is how they checked sales.
Developed systems to track labor and turnaround time.
-Could compare labor between restaurants.
-Could change menu items based on sales.
-DECISIONS WERE NOW BASED ON BUSINESS ANALYTICS
-Analyzed turnaround time and became manager of the year. |
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Term
What were the problems Norfolk Southern faced?
What was the solution to their problems?
What were the results? |
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Definition
Problems:
-Needed to beat competition.
-Needed better customer support
Solution:
-Deregulation was used to get into competition
-TOP-operations on time delivery (used for decision making)
-GPS info used for tracking.
-Access NS was developed for guests to view tracking info.
-Used EDW (Enterprise Data Warehouse) to give everyone the same information.
-HR applications
-Looked at employee population density.
Results:
-Improved customer satisfaction
-Optimal delivery
-optimize office locations
-Provided data to external customers.
-Access NS gave users opportunities to log into pre-made and custom reports. |
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Term
What is the history of BI?
1970's?
1980's?
1990's?
2000's?
Today? |
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Definition
1970's- Flat, lengthy, not immediate reports
1980's- Expanded computer reports, got more detailed.
1990's- The term "BI" was coined.
2000's- AI was created to improve BI.
Today- Microsoft created Microsoft PowerPivot.
*Before BI, it was called EIS (Executive Intelligence System). |
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Term
| What are the 6 of the 8 things BI deals with? |
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Definition
1. Reporting
2. Online Analytical Processing (OLAP)
3. Analytics
4. Data Mining
5. Business Performance Management (BPM)
6. Benchmarking
7. Text Mining
8. Predictive Analysis. |
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Term
| How did Databasefootball.com use BI to better suit their customers? |
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Definition
They needed to know their audience (Who they were advertising to), so they hired Quantcast to define their audience. Quantcast collected information based on view count, demographics, race, age, gender, etc.
Were able to target ads specific to young-middle aged males, with no children, who were mainly white, in college and above, and making 60-100k. They put car insurance ads on their site. |
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Term
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Definition
They were concerned about CHURN RATE. Which is, for any given period of time, the number of participants who discontinues their use of a service divided by the total number of participants. (Drop rate)
Problem: Reduce churn rate, high volume of calls, needed a better response.
Solution: Save Team contract customers who wanted to cancel within 3 hours to try to convince them to stay. Centrally managed DW updated in real time.
Results: 25% of customers who called to cancel decided to keep their service. |
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Term
| What is the Business Pressures-Response-Support Model? Three major Components? |
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Definition
1. Pressures/Factors: globalization, booming electronic markets on the internet, Innovative Marketing methods, Need for real-time, on-demand transactions.
2. Organizational Responses: Be reactive, anticipate, adaptive, and proactive. Companies that go out of business do so because they don't anticipate changes in the market. They stay the same and suffer for it instead of looking for new ways to combat future problems/needs.
3. Computerized Decision Support: The responses to the business environmental factors are usually facilitated by computer support in the form of data warehousing, software tools for data analysis and manipulation, monitoring conditions through the use of dashboards, etc. |
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Term
| List the major Pressures/factors in today's business environment that facilitate change. |
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Definition
1. Markets
2. Customer Demands
3. Technology-Related
4. Societal |
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Term
| What is a Data Warehouse (DW)? |
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Definition
| A special database or repository of historical and current data that has been collected and is of potential interest to decision-makers throughout an organization. DWs are created by the technical staff. |
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Term
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Definition
| A strategy to get from current performance of an organization to the desired performance as described in mission statements, objectives, and goals. |
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Term
| What is Business Analytics (BA)? |
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Definition
| a broad category of applications used for analyzing data for purposes of helping business users make better business and strategic decisions. |
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Term
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Definition
| A set of data analyses and statistical methodologies that look for hidden patterns in data which can be used for predicting future behavior. can handle massive amounts of data. |
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Term
| What is the major objective of BI? |
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Definition
| Developing a strategy for closing the strategic gap. |
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Term
| What are the four major components of BI? |
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Definition
1. Data Warehouse
2. Business Analytics
3. Business Performance Management
4. User Interface |
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Term
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Definition
| BA interactive software tools that allow users to access the data warehouse and create on-demand (ad-hoc) reports and queries and to conduct analysis of data. |
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Term
| What are the two major categories of BA tools and techniques? |
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Definition
1. Reports and queries
2. Data, text, and web mining and other sophisticated mathematical and statistical tools. |
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Term
| Define ADS and give examples of ADS. |
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Definition
| ADS- Automated Decision Systems are rule-based sytems that provide a solution in one functional area (marketing, finance, manufacturing, etc) to a repetitive managerial problem, usually in one industry. Some examples are: Provide a credit score, accept/deny a loan application, determine price of a store item, recommend item to purchase. |
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Term
| Describe BPM and its objective. |
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Definition
| BPM- Business Performance Management uses balanced scorecard methodology to link objectives with factual measures. in the process, an enterprise must define, implement, and manage their business strategies. the objective of BPM is to optimize the overall performance of an organization. |
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Term
| What is the purpose of User Interface? |
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Definition
| User Interface connects analytics to strategy through the use of dashboards and other information broadcasting and visualization tools. |
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Term
| Define dashboard and know its purpose. |
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Definition
| Dashboards provide a comprehensive, at-a-glance view of corporate perfomance/health through visualization graphics (like the instruments in your car). The dashboards contain key performance indicators, trends, and outliers for different aspects of the business operations. |
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Term
| Define OLTP, operational database, and OLAP. |
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Definition
OLTP- Online Transaction Processing System handles the everyday transactions/transactional data for a company's on-going business.
These transactional data are housed in OPERATIONAL DATABASES.
Note: OLTP systems are efficient for transaction processing but inefficient for end-user ad hoc reports, queries, and analyses.
OLAP- Online analytical Processing Systems utilize informational data that are transferred from operational databases into data warehouses for analysis and decision making purposes.
Note: OLAP is processing for end-user ad hoc reports. It's an approach to quickly answer multi-dimensional analytical questions. The output produced from an OLAP query can be displayed in a table format where the rows and columns each represent the values of a variable and the table entries represent counts. |
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Term
| List examples of data produced by OLTP. |
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Definition
Louisiana Crash Data
Retail Transaction Data
Bank Transaction Data |
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Term
| Define strategic imperative. |
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Definition
| An action is considered a strategic imperative if it is a necessary strategy for being competitive. |
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Term
| List why BI is a strategic Imperative. |
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Definition
It is necessary that companies use BI to become competitive because: There are fewer barriers to the marketplace allowing for new competitors; these competitors are able to find better and cheaper suppliers, resulting in improved quality and reduced costs.
Globalization, along with the use of the internet, provides competition even to the major players (PC manufacturing, automobile manufacturing, consumer electronics).
Competitors are able to get their products and services to customers almost anywhere (through readily available shippers like FedEx, UPS, DHL, etc.) |
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Term
| Define competitive intelligence. |
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Definition
| Competitive intelligence (CI) involves tracking what your competitor is doing. (Tracking public court documents, patent filings, etc). |
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Term
| What does intelligence creation require? (4 things) |
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Definition
1. Identifying and prioritizing specific BI projects.
2. Using return-on-investment and total-cost-of-ownership measures to estimate cost-benefit ratios.
3. Addressing the costs of maintaining all software applications
4. Collecting measures from the user community on how BI impacts decisions. |
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Term
| Identify what 2 major factors are important in successful BI implementation. |
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Definition
| For successful BI implementation, you should 1. Know the user community and 2. align BI projects with a company's goals and mission statement. |
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Term
| Describe the responsibilities of the BICC. |
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Definition
a. Strategies and objectives are properly aligned with the reasons for DW and BI.
b. IT department can implement hardware and software capable of implementing the objectives.
c. User community is aware of initiatives and are motivated for operationalizing initiatives. |
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Term
| What are the four components of the planning and execution of BI initiatives as defined by the Gartner Group? |
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Definition
1. Business
2. Organization
3. Functionality
4. Infrastructure |
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Term
| What is real-time BI? Examples? |
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Definition
| Instant data lookup. Examples: Debit/credit cards being declined, checking out at a store (places order for another copy of item because inventory is subtracted by one). |
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Term
| Describe 4 issues to consider when implementing BI. |
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Definition
1. Develop or acquire BI systems
2. Justify and Prioritize by way of cost/benefit analysis.
3. Security and Privacy of employee needs to be protected.
4. Integration of Systems and Applications. |
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Term
| What was Giant Food Stores problem? Solution? Results? |
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Definition
Problems:
Lots of intensive labor to change prices. Using 30 year old system. It was manual. Sometimes just in their head. Couldn't forecast changes.
Solution:
Bought Demand Tech (BI Solution)
Results:
Could handle massive amounts of data. Automated decision system. (ADS)
Benefits:
Good for all locations. Raised profits. Were more agile with price changes. Didn't need as big of a staff for pricing. |
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Term
| What was Vodafone's problem? Solution? Results? |
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Definition
Problem:
Needed to increase profit margins,
How to add revenue streams from customers, and how to keep them as customers.
Solution:
Enterprise Data Warehouse (EDW)-gave single view of all company data.
-Middleware Tools for ad-hoc queries, reports, and OLAP, and predictive analysis.
Trigger-based marketing campaign to initiate a marketing offer based on recent activity.
-Teradata system.
Results:
Analysts can spend more time generating insights than managing data. Can make decisions on data.
What can we learn?
-The goal is to get the best possible return from campaigning and contacting customers. |
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