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Chapter 1 • An Overview of Business Intelligence, Analytics, and Decision Support 35

users to get a good feel for the situation. Then, additional analysis using data mining
techniques can be used to estimate what future behavior would be like. This is the domain
of predictive analytics. Such analysis can then be taken to create specific recommendations
for operators. This is an example of what we call prescriptive analytics. Finally, this open-
ing vignette also suggests that innovative applications of analytics can create new business
ventures. Identifying opportunities for applications of analytics and assisting with decision
making in specific domains is an emerging entrepreneurial opportunity.

Sources: Magpiesensing.com, “Magpie Sensing Cold Chain Analytics and Monitoring,” magpiesensing.com/
wp-content/uploads/2013/01/coldchainanalyticsmagpiesensing-Whitepaper.pdf (accessed July 2013);
Centers for Disease Control and Prevention, Vaccine Storage and Handling, http://www.cdc.gov/vaccines/pubs/
pinkbook/vac-storage.html#storage (accessed July 2013); A. Zaleski, “Magpie Analytics System Tracks Cold-
Chain Products to Keep Vaccines, Reagents Fresh” (2012), technicallybaltimore.com/profiles/startups/magpie-
analytics-system-tracks-cold-chain-products-to-keep-vaccines-reagents-fresh (accessed February 2013).

1.2 Changing Business environments and Computerized
deCision support

The opening vignette illustrates how a company can employ technologies to make sense
of data and make better decisions. Companies are moving aggressively to computerized
support of their operations. To understand why companies are embracing computer-
ized support, including business intelligence, we developed a model called the Business
Pressures–Responses–Support Model, which is shown in Figure 1.1.

the Business pressures–responses–support model

The Business Pressures–Responses–Support Model, as its name indicates, has three com-
ponents: business pressures that result from today’s business climate, responses (actions
taken) by companies to counter the pressures (or to take advantage of the opportunities
available in the environment), and computerized support that facilitates the monitoring
of the environment and enhances the response actions taken by organizations.

Decisions and
Support
Organization
Responses Analyses
Business
Environmental Factors Predictions
Strategy
Decisions
Globalization Partners’ collaboration
Pressures
Customer demand Real-time response
Government regulations Agility Integrated
Market conditions Opportunities Increased productivity computerized
Competition New vendors decision
Etc. New business models support
Etc.
Business
intelligence

Figure 1.1 The Business Pressures–Responses–Support Model.

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