Business Intelligence ERP Business Intelligence n Data warehouse
Business Intelligence & ERP
Business Intelligence n Data warehouse: repository of data used for management decisions n n Data is gathered from operation systems and external sources Data marts: subset of data warehouse information
Business Intelligence n Data mining: analysis of large quantities of data stored in computers n Widely used by: n Grocery stores n Banking n Insurance n Two types of data mining studies n Hypothesis testing n Knowledge discovery
Business Intelligence n Hypothesis testing A theory about relationship between actions and outcomes n Example: hypothesis that advertising will yield greater profit n n Test response rates to various types of advertising on sales and profitability of product lines
Business Intelligence n Knowledge discovery Preconceived notion does not exit, but is seen by looking at the data n Done using visualization tools, statistical analysis n
Business Intelligence n First National Bank of ND n n 10% of its customers were providing all profitability Bank of America in San Francisco 20% of its customers determined profitability n Developed profiles of top accounts to target services n
Business Intelligence n Harrah’s Entertainment Inc. Casino organization using incentive programs n 8 million customers Total Gold cards used when gambling, eating, staying in casino n Earn points for complimentary meals & lodging n Trump Taj Card similar n Data mining is used to identity high rollers n n Estimate lifetime value of players
Business Intelligence n Credit Card Management Data mining to identify “Balance Surfers” as unattractive customers n Credit card marketing promotions generate 1, 000 responses to mailed solicitations – 1% response rate n Credit scoring – consolidate data for savings, loans, credit cards, insurance, retirement, etc. n Fraud alerts n
Business Intelligence n Farmers Insurance Group Underwriting system that generates millions in higher revenues & lower claims n Discovered lower rates on sports cars, increase market share for product line n n Insurance Fraud detection n Link names, telephone numbers, birthdays, streets, etc. , to identify patterns indicating fraud
Business Intelligence n Data Mining Tools n Analytic approaches n Regression n Decision trees n Neural networks n Cluster detection n Market basket analysis
Business Intelligence n Data Mining Tools OLAP tools Power. Play & Impromptu from Cognos n SAP BW n SAS Institutes tool kit n Model 1 n IBM Intelligent Mining Toolkit n
Business Intelligence n Wal-Mart Data warehouse of 101 terabytes n Includes data from point-of-sale, shipments, inventory, forecast, demographics, returns, market basket information, competition n Process 65 million transactions per week n Warehouse holds 65 weeks of data by item, by store, and by day n Handles 35, 000 queries per week n
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