Chapter 12, Problem 3RQ

Explanation of Solution

Business intelligence

• Business intelligence is a set of processes that convert raw data into meaningful information.
• It is a suite of software and services to transform data into actionable intelligence and knowledge.
• It collects, stores, cleans, and makes relevant information available to managers.
• It includes databases, data warehouses, and data marts...

Explanation of Solution

Elements of a business intelligence environment

The main elements of a business intelligence environment include:

• The first element of a business intelligence environment is data from business environment which include structured and unstructured data from many different sources.
• These data are integrated and then organized so that they can be analyzed and used by human decision makers.
• The next element is business infrastructure that include powerful database systems that capture relevant data stored in transactional databases or are integrated into an enterprise data warehouse or interrelated data marts.
• The next element is business analytics tool set that consists of software tools which is used to analyze data and produce reports, then to respond to manager’s questions and  at last to use key indicators of performance to track a business’s progress...

Explanation of Solution

Analytical functionalities provided by Business Intelligence systems

• Production reports are the predefined reports based on industry-specific requirements.
• Parameterized reports are the reports where users enter several parameters in a pivot table to filter data and isolate impacts of the parameters.
• Dashboards or scorecards are the visual tools for presenting performance data as defined by users...

Explanation of Solution

Predictive analysis

• Predictive analysis is the use of data, statistical algorithms, and machine learning techniques for identifying the likelihood of future outcomes based on historical data.
• Predictive analysis uses statistical analysis, data mining techniques, historical data, and assumptions about future conditions to predict future trends and behaviour patterns.
• An example of predictive analysis is an insurance company using age, gender, and driving record as predictors of driving safety.

Location analytics

• Location analytics is a visual way of interpreting and analyzing the information when used in conjunction with a geographical information system.
• It uses the location component of data, including location data from mobile phones, output from sensors or scanning devices, and data from maps to help a marketer to determine which people to target with mobile ads about nearby restaurants and stores...