Copyright 2015 Pearson Education Inc Introduction to Information

Copyright © 2015 Pearson Education, Inc. Introduction to Information Systems Chapt er 7 - 1 Third Edition Chapter 7 Business Intelligence and Decision Making Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved

Chapt er 7 - 2 Learning Objectives 1. 2. 3. 4. 5. Decision making Business intelligence Data mining Web analytics Dashboards and portals Copyright © 2015 Pearson Education, Inc. Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved

Chapt er 7 - 3 Business Intelligence • Information for data-driven decision making • Includes software applications, technologies, and practices Copyright © 2015 Pearson Education, Inc. Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved

Chapt er 7 - 4 Levels of Decision Making Copyright © 2015 Pearson Education, Inc. Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved

Sources of BI Internal • Transactional databases • Data warehouses Copyright © 2015 Pearson Education, Inc. External • Cloud • External databases • Websites, social networks, and text messages Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved Chapter 7 -5

Analyzing Patterns • Online analytical processing • Statistics and modeling techniques • Text mining Copyright © 2015 Pearson Education, Inc. Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved Chapter 7 -6

Simulating and Forecasting • What-if analysis • Goal seeking and optimization • Forecasting Copyright © 2015 Pearson Education, Inc. Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved Chapter 7 -7

Artificial Intelligence Examples • Amazon. com • ALADDIN • Jeopardy! Copyright © 2015 Pearson Education, Inc. Challenge • Scammers • CAPTCHA Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved Chapter 7 -8

Chapt er 7 - 9 Artificial Intelligence Applications • Robotics • Expert systems • Neural nets Copyright © 2015 Pearson Education, Inc. Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved

Chapt er 7 10 Web Analytics • Website • Social media • E-commerce Copyright © 2015 Pearson Education, Inc. Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved

Analyzing Traffic • Analyzing software • Reaching goals • Ad effectiveness Copyright © 2015 Pearson Education, Inc. Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved Chapter 7 - 11

Dashboards • Graphical user interface • Key performance indicators Copyright © 2015 Pearson Education, Inc. Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved Chapter 7 - 12

Portals • Variety of information on one screen • Enterprise portal Copyright © 2015 Pearson Education, Inc. Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved Chapter 7 - 13

Mashups • Aggregate data from multiple sources • Customizable web pages Copyright © 2015 Pearson Education, Inc. Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved Chapter 7 - 14

Chapt er 7 15 Human Element • Although humans choose intelligence, tools, and interpretation, they have weaknesses • Must consider human motives in design and implementation of information systems Copyright © 2015 Pearson Education, Inc. Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved

Chapt er 7 16 Summary 1. 2. 3. 4. 5. Decision making Business intelligence Data mining Web analytics Dashboards and portals Copyright © 2015 Pearson Education, Inc. Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved

Chapt er 7 17 Insurance Fraud Case • $125 to $175 billion lost in fraud each year • Fraud detection systems rely on rules and patterns detected by analytic engines • Analysts work closely with investigators to apply human judgment as they create new rules and follow data leads Copyright © 2015 Pearson Education, Inc. Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved

TV and Twitter • Nielsen relies on ‘People Meters’ in homes • Social media metrics evaluate audience engagement by tracking Twitter tweets • Relationship between Twitter and TV ratings confirmed by research Copyright © 2015 Pearson Education, Inc. Copyright © 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved Chapter 7 - 18