Business Analytics

Presented By:
Wiwin Sry Adinda Banjarnahor
11 April 2016
Email: wiwin@del.ac.id

Materi Kuliah Minggu 10

Dasar Sistem Informasi
ISS1001
 Objectives

• Explain different ways in which IT supports decision

making.
• Provide examples of different ways that organizations
make use of business intelligence (BI).
• Explain the value that different BI applications provide
to large and small businesses.
• Offer examples of how businesses and government
agencies can use different BI applications to analyze
data.
• Explain how your university could use CPM to effect
solution to two campus problems.
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 Agendas

• Managers and Decision Making

• What Is Business Intelligence?
• Business Intelligence Applications for Data Analysis
• Business Intelligence Applications for Presenting
Results
• Business Intelligence in Action: Corporate
Performance Management

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[ Opening Case Developing Smarter Cities
through Analytics ]

• The Problem
• The Solution
• The Results
• What We Learned from This Case

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 About [small] business
12.1 Analytics Helps
Farmers

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12.1 Managers and Decision Makers

• The Manager’s Job and Decision Making

• Why Managers Need IT Support
• What Information Technologies Are
Available to Support Managers?
• A Framework for Computerized Decision
Analysis

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The Manager’s Job and Decision
Making
• Three basic roles of a manager
– Interpersonal
– Informational
– Decisional

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Why Managers Need IT Support

• Decision making is difficult due to the following

trends:
– Number of alternatives is constantly increasing
– Most decisions must be made under time pressure
– Increased uncertainty in the decision environment
– Often necessary to rapidly access remote information, consult
with experts, or conduct a group decision-making session

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What Information Technologies are
Available to Support Managers?
• Business Intelligence (BI)

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A Framework for Computerized
Decision Analysis
• Problem Structure
– Structured: budget analysis, personnel reports
– Semi-structure: project scheduling, plant layout
– Unstructured Decisions: recruiting an executive, negotiation, buying hardware,
lobbying
• Nature of Decisions
– Three broad categories of managerial decisions
– Operational control; executing specific tasks efficiently and effectively
– Management control; acquiring and using resources efficiently in accomplishing organizational
goals.
– Strategic planning; the long-range goals and policies for growth and resource allocation
• The Decision Matrix
• Computer Support for Structured Decisions

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Problem Structure

• Structured
• Semi-structure
• Unstructured Decisions

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Nature of Decision

• Three broad categories of managerial control in

decision making
– Operational control
– Management control
– Strategic planning

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12.2 What is Business Intelligence?

• The Scope of Business Intelligence

– The Development of One or a Few Related BI
Applications
– The Development of Infrastructure to Support
Enterprise-wide BI
– Support for Organizational Transformation

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 [about business]
12.2 Can We Predict the
Weather?

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 [about business]
12.3 Predicting
Customer Behavior

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12.3 Business Intelligence
Applications for Data Analysis
• Multidimensional Analysis or Online
Analytical Processing (OLAP) (aka,
multidimensional analysis)
• Data Mining
• Decision Support Systems (DSS)

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Data Mining is Used in:

• Retailing and sales

• Banking
• Manufacturing and production
• Insurance
• Police work
• Healthcare
• Marketing

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Decision Support Systems (DSS)

• Sensitivity Analysis
• What-if Analysis
• Goal-Seeking Analysis

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 [about business]
12.4 Analytics Helps to
Reduce Injuries to
Rugby Players

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12.4 Business Intelligence Applications
for Presenting Results
• Dashboards
• Data Visualization Technologies
• Real-Time BI

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Dashboards

• Capabilities of Dashboards
– Drill-down
– Critical Success Factors (CSF)
– Key Performance Indicators (KPI)
– Status Access
– Trend Analysis
– Exception Reporting

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Data Visualization Technologies

• Geographical Information Systems

– Geocoding
• Reality Mining
• Example
– New York City
– Singapore
– Other Major Cities

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12.5 Business in Action: Corporate
Performance Management
• Key Performance Indicators (KPI)
• Corporate Performance Management
(CPM)
– Example
• VAASAN Group

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[ Closing Case Santa Cruz Police Department
(SCPD) ]

• The Problem
• The IT Solution
• The Results

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 Reference

James A O’Brien “Introduction to Information

System”. McGRAW-HILL, 15th Edition, 2010

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