Week 1-2: BI, BA, and Data Science

● DATA ANALYTICS (FORMERLY DATA MINING)

● DATA MINING PROCESS
● DM TASKS
○ Classification
○ Clustering
○ Association Rule Mining
● DECISION-MAKING
● DECISION IN THE BUSINESS CONTEXT
● THE CONCEPT OF DECISION SUPPORT SYSTEMS
● DSS EVOLUTION
● THE CONCEPT OF BUSINESS INTELLIGENCE
● THE CONCEPT OF BUSINESS ANALYTICS

Week 3: Descriptive Analytics: Nature of Data and Statistical

Modeling
● DATA QUALITY
● DATA TYPES
● DATA PREPROCESSING
● DESCRIPTIVE ANALYSIS
● REGRESSION
○ Linear Regression
○ Logistic Regression
○ Time Series Forecasting

Week 4: Descriptive Analytics: Reporting and Visualization

● BUSINESS REPORTING
● VISUALIZATION
● VISUAL ANALYTICS
● DASHBOARD

Week 5: Descriptive Analytics: BI and Data Warehousing

● DATA WAREHOUSING (DW)
● DW PROCESS
● DW ADMINISTRATION
● ETL
● BUSINESS PERFORMANCE MANAGEMENT
● PERFORMANCE MEASUREMENT

Week 6: Predictive Analytics 1: Data Mining Process, Methods, and

Algorithms
● DATA ANALYTICS (FORMERLY DATA MINING)
● DATA MINING PROCESS
● DM TASKS
○ Classification
○ Clustering
○ Association Rule Mining
Week 7: Predictive Analytics 2: Text, Web, and Social Media
Analytics
● TEXT ANALYTICS
● WEB ANALYTICS
● SOCIAL MEDIA ANALYTICS

Week 1-2: BI, BA, and Data Science

● DATA ANALYTICS (FORMERLY DATA MINING)
● DATA MINING PROCESS
● DM TASKS
○ Classification
○ Clustering
○ Association Rule Mining
● DECISION-MAKING
● DECISION IN THE BUSINESS CONTEXT
● THE CONCEPT OF DECISION SUPPORT SYSTEMS (DSS)
● DSS EVOLUTION
● THE CONCEPT OF BUSINESS INTELLIGENCE
● THE CONCEPT OF BUSINESS ANALYTICS

DSS: interactive computer-based systems, which help decision-makers utilize data and models (lots of
data! Compare to human’s cognitive limits) to solve unstructured problems.
That’s why, Data Warehouse (DW), Data Mining (DM), OLAP, dashboard, and cloud-based systems
are key managerial instruments now!

Decision Support Used In → Group communication and telecommunication, Improved data

management ,Managing big data, Analytical support, Overcoming cognitive limits, Knowledge management,
Anywhere, anytime support

Decision Support → BI → BA → Big Data…

BI Framework:

Analytics: The process of developing actionable decisions or recommendations for actions based on
insights generated from historical data through the use of computer technology, management science
and statistics.

Analytics In Action 🌟 !!!

Decision making is simply the process of making a choice..

Analytic Decision-Making:

Analytic decision-makers prefer a low level of structure and make decisions based on technical
outcomes. They collect large volumes of data from different sources, then pore over the data to
evaluate every solution before settling on one.

● Advantages of analytic decision-making:

○ It’s detail-oriented, so analytic decision-makers notice things others might not
○ The high volume of information involved makes predictions more accurate
 ○ The decision-maker goes in with few biases and preconceptions
○ It considers unconventional options
● Disadvantages of analytic decision-making:
○ It consumes time and energy
○ Managing so much information can be stressful for the decision-maker
○ It relies on the existence of relevant data collected in similar situations
○ It can lead to analysis paralysis
○ It’s a risk-averse approach

Rational Decision Making:

Bounded Rationality: This concept says that human knowledge and capabilities are limited and
imperfect:

● Decision makers do not have access to all possible information relevant to the decision, and the
information they do have is often flawed and imperfect.
● Decision makers have limited analytical and computational abilities. They are not capable of
judging their information and alternatives perfectly.
● Decision makers do not have unlimited time to make decisions.

Decision In The Business Context:

● Transaction Processing System (TPS): Supports business operations through activities such
as billing, order entry, and other transaction-related tasks.
● Office Automation System (OAS): Utilizes technology to manage official tasks through
applications like email, voicemail, and word processing, enhancing clerical and managerial
office functions.
● Knowledge Work System (KWS): Aids in knowledge creation and application using tools like
Computer-Aided Design (CAD), financial workstations, and virtual reality systems to manage
complex information and designs.
● Management Information System (MIS): Assists middle managers in monitoring and
controlling business operations by compiling transactional data into reports for decision-making.
● Decision Support System (DSS): Provides managers with tools to analyze data, supporting
decision-making with models that produce summaries, charts, and tables.
● Executive Support System (ESS): Supports high-level executives in strategic decision-making
by summarizing data from various systems and external sources, tracking performance and
trends.

Main Applications of IT:

Information/Data Storage: Ensures reliable, organized storage and rapid access to data necessary for
operations and decision-making.

Simplified Decision Making: Facilitates easier, quicker decision-making processes through accessible
information.

A Decision Support System (DSS): is a computer program that helps businesses make decisions by
collecting and analyzing a lot of data. It's designed to provide helpful information that can be used to
understand and solve problems, making the decision-making process quicker and more informed. The
system has different parts that help manage the data, allow users to interact with it, and store important
information.

DECISION TYPES:

● Structured Decisions: These are repetitive and routine decisions where the necessary inputs
directly determine the outcome. Examples include inventory management where reordering is
triggered by reaching a specific stock level. Such decisions, also known as programmed
decisions, are ideal for automation and often use heuristics or rule-based methods to expedite
decision-making.
● Unstructured Decisions: These involve high levels of uncertainty, ambiguous information, and
ill-defined criteria, requiring significant judgment and creativity from decision-makers. Examples
 could include resolving complex labor issues or formulating new technology policies.
Information systems can aid these decisions by providing comprehensive data gathering and
collaborative tools.
● Semi-Structured Decisions: These lie between structured and unstructured types, involving
known factors complemented by human judgment. An example is the hiring process, which
considers quantifiable criteria like experience and education, alongside subjective factors like
interpersonal skills.

● Strategic Decisions: Made by top management to set the organization's direction.

● Tactical Decisions: Concern operationalizing strategies and are managed by middle
managers.
● Operational Decisions: Daily decisions made by employees to keep the organization running
efficiently.

➔ Structured decisions are managed by transaction processing systems (TPS), semi-structured by

decision support systems, and unstructured by executive support systems.

BI: Business intelligence combines business analytics, data mining, data visualization, data tools and
infrastructure, and best practices to help organizations make more data-driven decisions.

BI Methods:

● Data mining: Using databases, statistics, and machine learning (ML) to uncover trends in large
datasets
● Reporting: Sharing data analysis to stakeholders so they can draw conclusions and make
decisions
● Performance metrics and benchmarking: Comparing current performance data to historical data
to track performance against goals, typically using customized dashboards
● Descriptive analytics: Using preliminary data analysis to find out what happened
● Querying: Asking the data-specific questions, BI pulling the answers from the data sets
● Statistical analysis: Taking the results from descriptive analytics and further exploring the data
using statistics such as how this trend happened and why
● Data visualization: Turning data analysis into visual representations such as charts, graphs, and
histograms to more easily consume data
● Visual analysis: Exploring data through visual storytelling to communicate insights on the fly and
stay in the flow of analysis
● Data preparation: Compiling multiple data sources, identifying the dimensions and
measurements, and preparing it for data analysis

BA: Business analytics is the process of transforming data into insights to improve business decisions.
Data management, data visualization, predictive modeling, data mining, forecasting simulation, and
optimization are some of the tools used to create insights from data.

BI vs BA:
Business intelligence includes Data analytics and Business analytics but uses them only as parts of the
whole process. BI helps users draw conclusions from data analysis. Data scientists dig into the
specifics of data, using advanced statistics and predictive analytics to discover patterns and forecast
future patterns.

Data analytics asks, “Why did this happen and what can happen next?” Business intelligence takes
those models and algorithms and breaks the results down into actionable language. “business analytics
includes data mining, predictive analytics, applied analytics, and statistics.”

Week 3: Descriptive Analytics: Nature of Data and

Statistical Modeling
● DATA QUALITY
● DATA TYPES
 ● DATA PREPROCESSING
● DESCRIPTIVE ANALYSIS
● REGRESSION
○ Linear Regression
○ Logistic Regression
○ Time Series Forecasting

From Data to Knowledge:

Data Quality | Readiness Level of Data:

● Data source reliability
○ Do we have the right confidence and belief in this data source?
● Data content accuracy
○ Do we have the right data for the job?
● Data accessibility
○ Can we easily get to the data when we need to?
● Data security and privacy
○ Does the right person have access to the data?
● Data richness
○ Does the data provide a complete picture to make a particular decision?
● Data consistency
○ Did we make sure the same data from different sources are treated equally?
● Data currency/timeliness
○ Are the data up-to-date?
● Data granularity
○ Are the data at the same aggregation level?
● Data validity.
○ Does the actual value and expected value match?
● Data relevancy
○ Is the dataset relevant to the decision to be made?

Data Taxonomy 🌟 !!!

Data Pre-processing:

Data Pre-processing In Action:

Descriptive Analysis (Statistics):

● Measures of centrality tendency (merkezi eğilim)
○ Arithmetic mean, Median, Mode
 ● Measures of dispersion (dağılım)
○ Range, Variance, Standard Deviations, Mean Absolute Deviation

BOX-PLOT: