Page 64 -

Chapter 1 • An Overview of Business Intelligence, Analytics, and Decision Support 63

Key terms

business intelligence decision (or normative) descriptive (or reporting) semistructured
(BI) analytics analytics problem
dashboard decision support system predictive analytics structured problem
data mining (DSS) prescriptive analytics unstructured problem

Questions for Discussion

1. Distinguish between strategic and tactical planning? from it. Provide an example of each and outline their
2. What is data mining and why is it classified under predictive differences.
analytics? Search the Web for an example of data mining in 4. Provide a definition of BI.
an organization of your choice and illustrate the way it is 5. Define managerial decision making. Discuss this concept in
currently in use. the context of the four-step approach to decision making.
3. Prescriptive analytics is considered to be a step further
ahead of predictive analysis and substantially different

exercises

teradata university network (tun) and Other Analytics—Saving Lives and Lowering Medical Bills.”
hands-On exercises Answer the following questions:
1. Go to teradatauniversitynetwork.com. Using the reg- a. What is the problem that is being addressed by apply-
istration your instructor provides, log on and learn the ing predictive analytics?
content of the site. You will receive assignments related b. What is the FICO Medication Adherence Score?
to this site. Prepare a list of 20 items in the site that you c. How is a prediction model trained to predict the FICO
think could be beneficial to you. Medication Adherence Score? Did the prediction
2. Enter the TUN site and select “cases, projects and assign- model classify FICO Medication Adherence Score?
ments.” Then select the case study: “Harrah’s High Payoff d. Zoom in on Figure 4 and explain what kind of tech-
from Customer Information.” Answer the following ques- nique is applied on the generated results.
tions about this case: e. List some of the actionable decisions that were based
a. What information does the data mining generate? on the results of the predictions.
b. How is this information helpful to management in 5. Visit http://www.ibm.com/analytics/us/en/what-is-
decision making? (Be specific.) smarter-analytics/big-data-analysis.html. Read the sec-
c. List the types of data that are mined. tion “Gain actionable insights from big data analysis,” and
d. Is this a DSS or BI application? Why? watch the video “See how analytics can help organizations
3. Go to teradatauniversitynetwork.com and find the paper in all industries use big data to achieve significant outcomes”
titled “Data Warehousing Supports Corporate Strategy at First under Case Studies to answer the following questions:
American Corporation” (by Watson, Wixom, and Goodhue). a. Explain big data and its importance in decision mak-
Read the paper and answer the following questions: ing with examples.
a. What were the drivers for the DW/BI project in the b. Appraise the maxim “without analytics, big data is just
company? noise.”
b. What strategic advantages were realized? c. In which sectors and areas might big data analytics be
c. What operational and tactical advantages were achieved? most useful? Give examples.
d. What were the critical success factors (CSF) for the d. What are the suggested solutions to managing risks?
implementation? e. Review and analyze a case study from IBM’s Web site
4. Go to analytics-magazine.org/issues/digital-editions and explain how big data analytics provided solutions.
and find the January/February 2012 edition titled “Special 6. Business analytics and computerized data processing
Issue: The Future of Healthcare.” Read the article “Predictive support managers and decision making. Keeping current

M01_SHAR9209_10_PIE_C01.indd 63 1/25/14 7:46 AM