Information System

Cloud Computing

BI / BA

Big Data

Artificial Intelligence

Machine Learning

Sensor Network/ IoT

SMAC / iSMAC
 Which are our
lowest/highest margin
customers ?
Who are my customers
What is the most and what products
effective distribution are they buying?
channel?

What product prom- Which customers

-otions have the biggest are most likely to go
impact on revenue? to the competition ?
What impact will
new products/services
have on revenue
and margins?
I can’t fi nd the data I
need
– data is scattered over the network
– many versions, subtle differences

I can’t get the data I need

need an expert to get the data

I can’t use the data I found

results are unexpected
data needs to be transformed from
one form to other

4
A single, complete and
consistent store of data
obtained from a variety
of different sources
made available to end
users in a what they can
understand and use in
a business context.

5
 Data Warehouse:

A subject-oriented, integrated, time-variant, non-updatable

collection of data used in support of management decision-making
processes
Subject-oriented: e.g. customers, patients, students, products
Integrated: Consistent naming conventions, formats, encoding
structures; from multiple data sources
Time-variant: Can study trends and changes

Non-updatable: Read-only, periodically refreshed

6
• DM is a way to develop the intelligence from data which
organization collects, organize and stores to gain better
understanding of their customers, operations and to solve the
organizational problems.
• Latest strategic weapons are :
• Decision making based on analytics
• To understand the customer better
• To optimize the supply chain to maximize their return on
investments
• DM was originally used to describe the process through which
previously unknown patterns in data were discovered
• Used to describe or discover or “Mining” the “Knowledge” from the
large amount of data.
• It include :
• Knowledge Mining
• Knowledge Discovery
• Pattern Searching/Analysis
• Find out correlation b/w data
• To find out Trends in business
• Prediction for the future
 Pattern
Recognition

Data Mining

Machine

Learning

Data
Bases
• Customer Relationship Management
• Banking
• Insurance
• Manufacturing and Production
• Government and Defense
• Travel Industry
• Health Care
• Medicine
• Entertainment Securities
• Sports.
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.
 Analysis Predictive
Diagnostics Analytics
Analytics

Why did it What is Likely

happens to happen

Prescriptive
Analytics
Descriptive What is
Analysis Happening What should
I do about you ?

Information

Analytic excellence leads to better decisions

 Prescriptive

Predictive

Discovery

Diagnostics
Level
Skill

Descriptive

Value
Information & Knowledge Discovery
OLAP: On Line Analytical Processing : An information
system that enables the user, while at a PC, to query the
system, conduct an analysis, and so on. The result is
generated in seconds.
OLTP: Online Transaction Processing : OLTP
concentrates on processing repetitive transactions in
large quantities and conducting simple manipulations
Ad hoc Queries & Reports: A query that cannot be
determined prior to the moment the query is issued.
(On Demand Report).
Routine Reports like Schedule report, Summary Report,
Key Indicator, Annual Report > Data/Text/Web Mining
& Search Engine:
Decision Support and Intelligent System

• EIS: Executive information systems (EIS): Provides

rapid access to timely and relevant information as
well as monitoring an organization’s performance
• Executive support systems (ESS): Also provides
analysis support, communications, office
automation, and intelligence support
• Management Science and Statistical Analysis
• Data Mining & Predictive Analysis: analyzes past
performance
• Business Performance Management
Visualization

A graphical, animation, or video presentation of data

and the results of data analysis:
The ability to quickly identify important trends in
corporate and market data can provide competitive
advantage
Check their magnitude of trends by using predictive
models that provide significant business advantages
in applications that drive content, transactions, or
processes
 There is a strong relationship of BA with:
 profitability of businesses
 revenue of businesses
 shareholder return
 BA enhances understanding of data
 BA is vital for businesses to remain
competitive
 BA enables creation of informative reports
• Descriptive analytics:
• Uses data to understand past and present
• Predictive analytics
• Analyzes past performance
• Prescriptive analytics
• Uses optimization techniques
 Most department stores clear seasonal inventory by
• reducing prices.
 The question is:
• When to reduce the price and by how much?

 Descriptive analytics: examine historical data for

• similar products (prices, units sold, advertising, …)

 Predictive analytics: predict sales based on price

 Prescriptive analytics: find the best sets of pricing

and advertising to maximize sales revenue
• Performance management systems (PMS) are
BI tools that provide scorecards and other
relevant information that decision makers use to
determine their level of success in reaching their
goals
• The Data/information explosion is the rapid
increase in the amount of published information or
data and the effects of this abundance.
• As the amount of available data grows, the problem
of managing the information becomes more difficult,
which can lead to information overload.
• From clicks to likes, today's networked world is
creating vast amounts of data at a significantly
increasing rate.
• Combine that with exponentially increasing internal
data and you get the data explosion commonly known
as Big Data.
• The ability to translate this vast array of structured and
unstructured input into usable business intelligence
provides a key competitive advantage for technology
companies.
Business Intelligence
Concept of BI

• Business intelligence represents a wide area of applications and

technologies for collecting, storing, analyzing and providing access to
information for improving businesses process modeling quality.
• The term 'Business Intelligence' has evolved from the decision support
systems and gained strength with the technology and applications like
data warehouses, Executive Information Systems and Online Analytical
Processing OLAP.
• A BI system is an information system that employs business
intelligence tools to produce and deliver information.
Why do organizations need BI?

• Business intelligence is comprised of information that contains

patterns, relationships, and trends about customers, suppliers,

business partners, and employees.

• Business intelligence systems process, store, and provide useful

information to users who need it, when they need it.

Business intelligence tools

• Business intelligence tools are computer programs that implement a

particular BI technique. The techniques are categorized three ways:

 Reporting tools read data, process them, and format the data into

structured reports that are delivered to users. They are used

primarily for assessment.

Business intelligence tools

 Data-mining tools process data using statistical techniques, search

for patterns and relationships, and make predictions based on the

results

 Knowledge-management tools store employee knowledge, make it

available to whomever needs it. These tools are distinguished from the

others because the source of the data is human knowledge

BI Components

• A BI tool is a computer program that implements the logic of a

particular procedure or process.

• A BI application uses BI tools on a particular type of data for a

particular purpose.

• A BI system is an information system that has all five components

(hardware, software, data, procedures, people) that delivers the results

of a BI application to users.
Benefits of BIS

• Improved Management Processes.

• Improved business operations.
• Fraud detection, order processing, purchasing that results in increased
revenues and reduced costs.
• Intelligent prediction of future.
Characteristics of BIS

• It is created by procuring data and information for use in decision-

making.
• It is a combination of skills, processes, technologies, applications
and practices.
• It is a combination of a set of concepts and methods strengthened
by fact-based support systems.
Characteristics of BIS Cont….

• It is an extension of Executive Support System or Executive

Information System.
• It collects, integrates, stores, analyzes, and provides access to business
information
• It is an environment in which business users get reliable, secure,
consistent, comprehensible, easily manipulated and timely
information.
• It provides business insights that lead to better, faster, more relevant
decisions
The Purpose of Business Intelligence System

• The main purpose of Business Intelligence in a business is to help

corporate executives, business managers and other operational
workers to take better decisions and more informed business
decisions activities.
Implementation of a Business Intelligence System

• Before implementation, companies should first analyze the way that

they make decisions and consider the information that executives
need to facilitate more confident and more rapid decision-making.
Advantages of BI
• Facilitation of the decision-making process.
• The unique structure of reporting enables faster and more efficient
decision-making and contributes to the improvement of business
processes.
• Conducting a data analysis, it is possible to use collected data in the best
way and increase the satisfaction of all users.
• Providing users only with the information they need and timely
expressed information that leads to better communication.
• Providing opportunities to increase the value of information as a
Disadvantages of BI

• The high cost of implementation of BI systems.

• In order to obtain useful results, it takes a long period of time to do a
data analysis.
• Expensive and long training in their use.
• Lack of adequate professional employees that can work in a BI
environment in individual companies.