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Business Intelligence: A Managerial Perspective on Analytics, International Edition

Business Intelligence: A Managerial Perspective on Analytics, International Edition

Ramesh Sharda | Dursun Delen | Efraim Turban | David King

(2015)

Additional Information

Book Details

Abstract

For courses on Business Intelligence or Decision Support Systems.
A managerial approach to understanding business intelligence systems.
To help future managers use and understand analytics, Business Intelligence provides students with a solid foundation of BI that is reinforced with hands-on practice.


Table of Contents

Section Title Page Action Price
Cover Cover
Title Page Title
Contents 7
Preface \r 17
About the Authors\r 23
Chapter 1 An Overview of Business\r 27
1.1 Opening Vignette: Magpie Sensing 28
1.2 Changing Business Environments and Computerized 30
The Business Pressures–Responses–Support Model 30
1.3 A Framework for Business Intelligence (BI) 32
Definitions of BI 32
A Brief History of BI 33
The Architecture of BI 34
The Origins and Drivers of BI 34
Application Case 1.1 Sabre Helps Its Clients 35
A Multimedia Exercise in Business Intelligence 36
1.4 Intelligence Creation, Use, and BI Governance 37
A Cyclical Process of Intelligence Creation and Use 37
Intelligence and Espionage 38
1.5 Transaction Processing Versus Analytic Processing 39
1.6 Successful BI Implementation 40
The Typical BI User Community 40
Appropriate Planning and Alignment with the Business 40
Real-Time, On-Demand BI Is Attainable 41
Developing or Acquiring BI Systems 42
Justification and Cost–Benefit Analysis 42
Security and Protection of Privacy 42
Integration of Systems and Applications 42
1.7 Analytics Overview 43
Descriptive Analytics 44
Predictive Analytics 44
Application Case 1.2 Eliminating Inefficiencies 45
Application Case 1.3 Analysis at the Speed 46
Prescriptive Analytics 46
Application Case 1.4 Moneyball: Analytics in Sports 47
Application Case 1.5 Analyzing Athletic Injuries 48
Analytics Applied to Different Domains 48
Application Case 1.6 Industrial and Commercial Bank of China 49
Analytics or Data Science? 50
1.8 Brief Introduction to Big Data Analytics 51
What Is Big Data? 51
Application Case 1.7 Gilt Groupe’s Flash Sales 52
1.9 Plan of the Book 53
1.10 Resources, Links, and the Teradata University 55
Resources and Links 55
Vendors, Products, and Demos 55
Periodicals 55
The Teradata University Network Connection 55
The Book’s Web Site 55
Key Terms 56
Questions for Discussion 56
Exercises 56
End-of-Chapter Application Case 57
References 59
Chapter 2 Data Warehousing 61
2.1 Opening Vignette: Isle of Capri Casinos 62
2.2 Data Warehousing Definitions and Concepts 64
What Is a Data Warehouse? 64
A Historical Perspective to Data Warehousing 64
Characteristics of Data Warehousing 66
Data Marts 67
Operational Data Stores 67
Enterprise Data Warehouses (EDW) 68
Application Case 2.1 A Better Data Plan: Well-Established 68
Metadata 69
2.3 Data Warehousing Process Overview 70
Application Case 2.2 Data Warehousing Helps 71
2.4 Data Warehousing Architectures 73
Alternative Data Warehousing Architectures 76
Which Architecture Is the Best? 79
2.5 Data Integration and the Extraction, Transformation 80
Data Integration 81
Application Case 2.3 BP Lubricants Achieves BIGS Success 81
Extraction, Transformation, and Load 83
2.6 Data Warehouse Development 85
Application Case 2.4 Things Go Better with Coke’s 86
Data Warehouse Development Approaches 88
Application Case 2.5 Starwood Hotels & Resorts Manages 89
Additional Data Warehouse Development Considerations 91
Representation of Data in Data Warehouse 92
Analysis of Data in Data Warehouse 93
OLAP Versus OLTP 93
OLAP Operations 94
2.7 Data Warehousing Implementation Issues 97
Application Case 2.6 EDW Helps Connect State 99
Massive Data Warehouses and Scalability 100
2.8 Real-Time Data Warehousing 101
Application Case 2.7 Egg Plc Fries the Competition 102
2.9 Data Warehouse Administration, Security 105
The Future of Data Warehousing 107
2.10 Resources, Links, and the Teradata University Network 110
Resources and Links 110
Cases 110
Vendors, Products, and Demos 111
Periodicals 111
Additional References 111
The Teradata University Network (TUN) Connection 111
Key Terms 112
Questions for Discussion 112
Exercises 113
End-of-Chapter Application Case 114
References 116
Chapter 3 Business Reporting, Visual Analytics, and Business 119
3.1 Opening Vignette: Self-Service Reporting 120
3.2 Business Reporting Definitions and Concepts 123
What Is a Business Report? 124
Application Case 3.1 Delta Lloyd Group Ensures Accuracy 126
Components of Business Reporting Systems 127
Application Case 3.2 Flood of Paper 128
3.3 Data and Information Visualization 129
Application Case 3.3 Tableau Saves Blastrac 130
A Brief History of Data Visualization 131
Application Case 3.4 TIBCO Spotfire Provides 133
3.4 Different Types of Charts and Graphs 134
Basic Charts and Graphs 134
Specialized Charts and Graphs 135
3.5 The Emergence of Data Visualization and Visual Analytics 138
Visual Analytics 140
High-Powered Visual Analytics Environments 140
3.6 Performance Dashboards 143
Dashboard Design 145
Application Case 3.5 Dallas Cowboys Score Big 145
Application Case 3.6 Saudi Telecom Company Excels 146
What to Look For in a Dashboard 148
Best Practices in Dashboard Design 148
Benchmark Key Performance Indicators 149
Wrap the Dashboard Metrics with Contextual 149
Validate the Dashboard Design by a Usability 149
Prioritize and Rank Alerts/Exceptions Streamed 149
Enrich Dashboard with Business-User Comments 149
Present Information in Three Different Levels 149
Pick the Right Visual Construct Using Dashboard Design Principles 150
Provide for Guided Analytics 150
3.7 Business Performance Management 150
Closed-Loop BPM Cycle 150
Application Case 3.7 IBM Cognos Express Helps 153
3.8 Performance Measurement 154
Key Performance Indicator (KPI) 154
Performance Measurement System 155
3.9 Balanced Scorecards 156
The Four Perspectives 156
The Meaning of Balance in BSC 158
Dashboards Versus Scorecards 159
3.10 Six Sigma as a Performance Measurement System 159
The DMAIC Performance Model 160
Balanced Scorecard Versus Six Sigma 160
Effective Performance Measurement 160
Application Case 3.8 Expedia.com’s Customer Satisfaction 162
Key Terms 164
Questions for Discussion 165
Exercises 165
End-of-Chapter Application Case 166
References 168
Chapter 4 Data Mining 169
4.1 Opening Vignette: Cabela’s Reels in More 170
4.2 Data Mining Concepts and Applications 172
Definitions, Characteristics, and Benefits 173
Application Case 4.1 Smarter Insurance: Infinity 174
How Data Mining Works 179
Application Case 4.2 Harnessing Analytics to Combat 179
Data Mining Versus Statistics 183
4.3 Data Mining Applications 183
Application Case 4.3 A Mine on Terrorist Funding 186
4.4 Data Mining Process 187
Step 1: Business Understanding 187
Step 2: Data Understanding 188
Step 3: Data Preparation 188
Step 4: Model Building 190
Step 5: Testing and Evaluation 192
Step 6: Deployment 192
Application Case 4.4 Data Mining in Cancer Research 193
Other Data Mining Standardized Processes 194
4.5 Data Mining Methods 196
Classification 196
Estimating the True Accuracy of Classification Models 197
Application Case 4.5 2degrees Gets a 1275 Percent 203
Cluster Analysis for Data Mining 204
Association Rule Mining 206
4.6 Data Mining Software Tools 210
Application Case 4.6 Data Mining Goes to Hollywood: 213
4.7 Data Mining Privacy Issues, Myths, and Blunders 216
Data Mining and Privacy Issues 216
Application Case 4.7 Predicting Customer Buying 217
Data Mining Myths and Blunders 218
Key Terms 220
Questions for Discussion 220
Exercises 221
End-of-Chapter Application Case 223
References 223
Chapter 5 Text and Web Analytics 225
5.1 Opening Vignette: Machine Versus Men 226
5.2 Text Analytics and Text Mining Overview 229
Application Case 5.1 Text Mining for Patent Analysis 232
5.3 Natural Language Processing 233
Application Case 5.2 Text Mining Improves Hong 235
5.4 Text Mining Applications 237
Marketing Applications 238
Security Applications 238
Application Case 5.3 Mining for Lies 239
Biomedical Applications 241
Academic Applications 242
Application Case 5.4 Text mining and Sentiment 243
5.5 Text Mining Process 244
Task 1: Establish the Corpus 245
Task 2: Create the Term–Document Matrix 246
Task 3: Extract the Knowledge 248
Application Case 5.5 Research Literature Survey 250
5.6 Sentiment Analysis 253
Application Case 5.6 Whirlpool Achieves Customer 255
Sentiment Analysis Applications 256
Sentiment Analysis Process 258
Methods for Polarity Identification 259
Using a Lexicon 260
Using a Collection of Training Documents 261
Identifying Semantic Orientation of Sentences 261
Identifying Semantic Orientation of Document 261
5.7 Web Mining Overview 262
Web Content and Web Structure Mining 264
5.8 Search Engines 267
Anatomy of a Search Engine 267
Development Cycle 267
Web Crawler 268
Document Indexer 268
Response Cycle 269
Query Analyzer 269
Document Matcher/Ranker 269
Search Engine Optimization 270
Methods for Search Engine Optimization 271
Application Case 5.7 Understanding Why Customers 272
5.9 Web Usage Mining (Web Analytics) 274
Web Analytics Technologies 274
Application Case 5.8 Allegro Boosts Online Click-Through 275
Web Analytics Metrics 277
Web Site Usability 277
Traffic Sources 278
Visitor Profiles 279
Conversion Statistics 280
5.10 Social Analytics 281
Social Network Analysis 282
Social Network Analysis Metrics 283
Application Case 5.9 Social Network Analysis Helps 283
Connections 284
Distributions 285
Segmentation 285
Social Media Analytics 285
How Do People Use Social Media? 286
Application Case 5.10 Measuring the Impact of Social 287
Measuring the Social Media Impact 288
Best Practices in Social Media Analytics 289
Application Case 5.11 eHarmony Uses Social 290
Key Terms 293
Questions for Discussion 293
Exercises 293
End-of-Chapter Application Case 294
References 296
Chapter 6 Big Data and Analytics 299
6.1 Opening Vignette: Big Data Meets Big Science at CERN 300
6.2 Definition of Big Data 303
The Vs That Define Big Data 304
Application Case 6.1 BigData Analytics Helps 307
6.3 Fundamentals of Big Data Analytics 308
Business Problems Addressed by Big Data Analytics 311
Application Case 6.2 Top 5 Investment Bank Achieves 312
6.4 Big Data Technologies 313
MapReduce 313
Why Use MapReduce? 315
Hadoop 315
How Does Hadoop Work? 315
Hadoop Technical Components 316
Hadoop: The Pros and Cons 317
NoSQL 319
Application Case 6.3 eBay’s Big Data Solution 320
6.5 Data Scientist 321
Where Do Data Scientists Come From? 322
Application Case 6.4 Big Data and Analytics in Politics 325
6.6 Big Data and Data Warehousing 326
Use Cases for Hadoop 327
Use Cases for Data Warehousing 328
The Gray Areas (Any One of the Two Would Do the Job) 329
Coexistence of Hadoop and Data Warehouse 329
6.7 Big Data Vendors 331
Application Case 6.5 Dublin City Council Is Leveraging 333
Application Case 6.6 Creditreform Boosts 337
6.8 Big Data And Stream Analytics 338
Stream Analytics Versus Perpetual Analytics 339
Critical Event Processing 340
Data Stream Mining 341
6.9 Applications of Stream Analytics 341
e-Commerce 341
Telecommunications 342
Application Case 6.7 342
Law Enforcement and Cyber Security 344
Power Industry 344
Financial Services 344
Health Sciences 344
Government 345
Key Terms 346
Questions for Discussion 346
Exercises 346
End-of-Chapter Application Case 347
References 348
Chapter 7 Business Analytics: Emerging Trends and Future Impacts 351
7.1 Opening Vignette: Oklahoma Gas and Electric 352
7.2 Location-Based Analytics for Organizations 353
Geospatial Analytics 353
Application Case 7.1 Great Clips Employs Spatial 355
Real-Time Location Intelligence 357
Application Case 7.2 Quiznos Targets Customers 358
7.3 Analytics Applications for Consumers 359
Application Case 7.3 A Life Coach in Your Pocket 360
7.4 Recommendation Engines 362
7.5 The Web 2.0 Revolution and Online Social Networking 363
Representative Characteristics of Web 2.0 364
Social Networking 364
A Definition and Basic Information 365
Implications of Business and Enterprise Social 365
7.6 Cloud Computing and BI 366
Service-Oriented DSS 367
Data-as-a-Service (DaaS) 369
Information-as-a-Service (Information on Demand) 370
Analytics-as-a-Service (AaaS)] 371
7.7 Impacts of Analytics In Organizations: An Overview 372
New Organizational Units 373
Restructuring Business Processes and Virtual Teams 373
Job Satisfaction 374
Job Stress and Anxiety 374
Analytics’ Impact on Managers’ Activities and Their Performance 374
7.8 Issues of Legality, Privacy, and Ethics 376
Legal Issues 376
Privacy 376
Recent Technology Issues in Privacy and Analytics 378
Ethics in Decision Making and Support 379
7.9 An Overview of the Analytics Ecosystem 379
Analytics Industry Clusters 380
Data Infrastructure Providers 380
Data Warehouse Industry 381
Middleware/BI Platform Industry 381
Data Aggregators/Distributors 382
Analytics-Focused Software Developers 382
Reporting/Analytics 382
Predictive Analytics 382
Prescriptive Analytics 383
Application Developers or System Integrators: 383
Analytics User Organizations 385
Analytics Industry Analysts and Influencers 385
Academic Providers and Certification Agencies 387
Key Terms 389
Questions for Discussion 389
Exercises 389
End-of-Chapter Application Case 390
References 391
Glossary 393
Index 401
A 401
B 401
C 402
D 403
E 404
F 405
G 405
H 405
I 405
J 406
K 406
L 406
M 406
N 406
O 407
P 407
Q 408
R 408
S 408
T 409
U 410
V 410
W 410
X 410
Y 410
Z 410