Chapter 12 Business Intelligence

is a process by which organizational goals are achieved through the use of resources (people, money, energy, materials, space, time).
The Manager’s 3 basic roles
interpersonal, informational, decisional
Interpersonal roles
figurehead, leader, liaison
Informational roles
monitor, disseminator, spokesperson
Decisional roles
entrepreneur, disturbance handler, resource allocator, negotiator
refers to a choice that individuals and group make among two or more alternatives.
is a systematic process composed of three major phases: intelligence, design and choice (Simon 1977), with the implementation phase added later.
Problem structure
where the decision-making processes falls along the continuum ranging from highly structured to highly unstructured decisions.
Structured problems
are routine and repetitive problems for which standard solutions exist.
Unstructured problems
are fuzzy, complex problems for which there are no cut-and-dried solutions.
Semistructured problems
are problems in which only some of the decision process phases are structured.
Why Managers Need IT Support
The number of alternatives to be considered constantly increases.
Decisions must be made under time pressure.
Decisions are more complex.
Decision makers can be in different locations and so is the information.
Operational control
involves executing specific tasks efficiently and effectively.
Management control
involves decisions concerning acquiring and using resources efficiently in accomplishing organizational goals.
Strategic planning
involves decisions concerning the long-range goals and policies for growth and resource allocation.
Business Intelligence (BI)
refers to applications and technologies for consolidating, analyzing, and providing access to vast amounts of data to help users make better business and strategic decisions.
How Organizations Use BI
Data mart: Develop few, related BI applications
Enterprise data warehouse: Develop infrastructure to support enterprise-wide BI
Enterprise data warehouse: Support organizational transformation
Multidimensional Analysis or Online Analytical Processing (OLAP)
(1) Provides users with a look at what is happening or what has happened.
(2) Allows users to analyze data in such a way that they can quickly answer business questions.
Data Mining
refers to the process of searching for valuable information in a large database, data warehouse, or data mart.
Data mining performs two basic operations:
1. Predicting trends and behaviors;
2. Identifying previously unknown patterns and relationships.
Decision support systems (DSSs)
are computer-based information systems that combine models and data in an attempt to solve semi-structured and some unstructured problems with extensive user involvement.
Sensitivity analysis
is the study of the impact that changes in one (or more) parts of a model have on other parts.
What-if analysis
is the study of the impact of a change in the assumptions (input data) on the proposed solution.
Goal-seeking analysis
is the study that attempts to find the value of the inputs necessary to achieve a desired level of output.
management cockpit
is a strategic management room that enables top-level decision makers to pilot their businesses better
Digital Dashboards:
Provide rapid access to timely information.
Provide direct access to management reports.
Are user-friendly and supported by graphics.
Data Visualization
is the process of presenting data to users in visual formats, thereby making IT applications more attractive and understandable to users.
Geographic Information Systems
Corporate performance management
is involved with monitoring and managing an organization’s performance according to key performance indicators.