Business Analytics

1. 12 Business Analytics

2. Explain different ways in which IT supports decision making. • Provide examples of different ways that organizations make use of business intelligence (BI). • Explain the value that different BI applications provide to large and small businesses. • Offer examples of how businesses and government agencies can use different BI applications to analyze data. • Explain how your university could use CPM to effect solution to two campus problems.

3. Managers and Decision Making • What Is Business Intelligence? • Business Intelligence Applications for Data Analysis • Business Intelligence Applications for Presenting Results • Business Intelligence in Action: Corporate Performance Management

4. [ Opening Case Developing Smarter Cities through Analytics ] • The Problem • The Solution • The Results • What We Learned from This Case

5. 12.1 Analytics Helps Farmers

6. 12.1 The Manager’s Job and Decision Making Why Managers Need IT Support What Information Technologies Are Available to Support Managers? A Framework for Computerized Decision Analysis Managers and Decision Makers

7. The Manager’s Job and Decision Making • Three basic roles of a manager • Interpersonal • Informational • Decisional

8. Why Managers Need IT Support • Decision making is difficult due to the following trends: • Number of alternatives is constantly increasing • Most decisions must be made under time pressure • Increased uncertainty in the decision environment • Often necessary to rapidly access remote information, consult with experts, or conduct a group decision-making session

9. What Information Technologies are Available to Support Managers? • Business Intelligence (BI)

10. A Framework for Computerized Decision Analysis • Problem Structure • Structured • Semi-structure • Unstructured Decisions • Nature of Decisions • Three broad categories of managerial decisions • Operational control • Management control • Strategic planning • The Decision Matrix • Computer Support for Structured Decisions

11. Problem Structure • Structured • Semi-structure • Unstructured Decisions

12. Nature of Decision • Three broad categories of managerial control in decision making • Operational control • Management control • Strategic planning

13. 12.2 The Scope of Business Intelligence The Development of One or a Few Related BI Applications The Development of Infrastructure to Support Enterprise-wide BI Support for Organizational Transformation What is Business Intelligence?

14. 12.2 Can We Predict the Weather?

15. 12.3 Predicting Customer Behavior

16. 12.3 Multidimensional Analysis or Online Analytical Processing (OLAP) (aka, multidimensional analysis) Data Mining Decision Support Systems (DSS) Business Intelligence Applications for Data Analysis

17. Data Mining is Used in: • Retailing and sales • Banking • Manufacturing and production • Insurance • Police work • Healthcare • Marketing

18. Decision Support Systems (DSS) • Sensitivity Analysis • What-if Analysis • Goal-Seeking Analysis

19. 12.4 Analytics Helps to Reduce Injuries to Rugby Players

20. 12.4 Dashboards Data Visualization Technologies Real-Time BI Business Intelligence Applications for Presenting Results

21. Dashboards • Capabilities of Dashboards • Drill-down • Critical Success Factors (CSF) • Key Performance Indicators (KPI) • Status Access • Trend Analysis • Exception Reporting

22. Data Visualization Technologies • Geographical Information Systems • Geocoding • Reality Mining • Example • New York City • Singapore • Other Major Cities

23. 12.5 Key Performance Indicators (KPI) Corporate Performance Management (CPM) Example VAASAN Group Business in Action: Corporate Performance Management

24. [Closing Case Santa Cruz Police Department (SCPD) ] • The Problem • The IT Solution • The Results