PGP-1, Term-II, ISM-1

Module II: Managing Customers through IT Systems

Session 4-6: Business Intelligence !esol"ing the
Pu##le$

Business Intelligence resol"ing the %u##le$
&hat is a decision '
&hat are the (inds o) decisions you ma(e in your li)e '
*aily ' &ee(ly ' Monthly ' +early ' In a li)etime '
,et-s hear some e.am%les/

Business Intelligence resol"ing the %u##le$
&hich o) these decisions 0ould you say are -tactical- and
0hich are -strategic- ' &hy '

Business Intelligence resol"ing the %u##le$
Is it easier to ma(e a -tactical- decision or to ma(e a -strategic-
decisions in li)e '
&hich ha"e a longer im%act '
&hich ta(e longer to decide '
&hich ta(e longer to im%lement '
&hich consume more resources 1money, time, e))ort, ///2 to
im%lement '

Business Intelligence resol"ing the %u##le$
&hat do you do 3e)ore ma(ing a -strategic- decision '

Business Intelligence resol"ing the %u##le$
Be)ore ma(ing a strategic decision, 0e:
*e"elo% 1)easi3le2 alternati"es 1select a )e0 0e li(e2/
Collect data/
Clean it 1"eri)y, cross chec(, )ill ga%s, remo"e unnecessary,
etc2/
4rganise and store it/
*ata analysis 1statistics2/
5%%ly learning 1in)erences2 to our decision ma(ing/

Business Intelligence resol"ing the %u##le$
Is data a"aila3le al0ays structured data '
&hat is unstructured data 1Big *ata2 '
&hat are the sources o) Big *ata '

Business Intelligence resol"ing the %u##le$
&hat i):
,imited data is a"aila3le/
,imited time is a"aila3le/
,imited (no0ledge )or analysis is a"aila3le'
,imited %rocessing %o0er )or analysis is a"aila3le'
5nd, data to analyse is huge $

Business Intelligence resol"ing the %u##le$
Can you cite e.am%les o) -decision ma(ing in certainty- )rom
your li)e '
6o0 a3out -decision ma(ing in uncertainty- ' 1Multi%le choice
7uestions 7ui# 0ith 8 0ithout negati"e mar(s$2

Business Intelligence resol"ing the %u##le$
*o 0e al0ays ha"e all needed data and analytical a3ility to
ma(e structured decisions '
&hen you are %laying ta3le tennis "ersus 0hen you are
%laying chess '
&hich is a s(ill 3ased game ' &hich is a strategy 3ased
game ' &hy '

Business Intelligence resol"ing the %u##le$
Situations 0hich managers )ace:
Structured and unstructured data/
Incom%lete$
,imited time, resources, a3ility 19:S2 at hands/
Modern tools '
Can they decide )or you ' Can they re%lace a manager '

Business Intelligence resol"ing the %u##le$
&hat is a data 0arehouse '
&hat is data mining '
Business Intelligence 19no0ledge disco"ery in data3ases,
9**2'

Business Intelligence resol"ing the %u##le$
*ata 0arehouses store historic data/
The storage may 3e aggregated i) analysis does not demand
atomic le"el data/
; This ma(es %rocessing8analysis )aster/ 6o0e"er, granularity
is lost/
The storage may 3e de-normalised/
; Increases s%ace ta(en to store, 3ut reduces %rocessing time
1a s%ace time trade o))2/

Business Intelligence resol"ing the %u##le$
Managers should esta3lish the goals 1Business o3<ecti"es2
clearly 3e)ore "enturing into *&, *M, 9**, BI/
5lmost al0ays, there are %re"iously un(no0n 3ene)its o) BI $$
Be a0are o) statisticians 0ho ma(e tall claims, such as:
6al) o) India-s 0or(ing %o%ulation earns less than the median salary/
,atest sur"ey sho0s that = out o) 4 %eo%le ma(e u% >?@ o) the 0orld-s
%o%ulation/

Business Intelligence resol"ing the %u##le$
Managers must also use commonly a"aila3le statistical tools
3e)ore "enturing into an e.%ensi"e detailed analysis o) large
data/
Single dimensional data aggregation: a"erage 8 mean,
median, mode, %ercentile /// etc/
T0o dimensional: gra%hs, %ie charts, etc/
Three dimensional using solid models or modern com%uters:
data cu3es 1slice and dice data2, data "isualisation, etc/
Ty%ical o%erations on data: Classi)ication, Clustering 1and
outlier analysis2, 5ssociation rule, Pattern 1se7uence2
disco"ery/

Business Intelligence resol"ing the %u##le$
Best o) luc( )or the 7ui# $$
Ae.t class: the readings 1and *M, *&, BI2 in more detail,
im%act o) BI on 3usinesses/