University of Sadat City

Faculty of Computers and Artificial Intelligence (FCAI)

IS Department

Business Intelligence(IS401)
Lecture 1

Prepared By:
Dr. Heba Askr
First Term 2023-2024
Business Intelligence, Analytics, Data
Science, and AI
Fifth Edition

Chapter 1

An Overview of Business
Intelligence, Analytics, and
Data Science

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Learning Objectives
1.1 Understand the need for computerized support of
managerial decision making
1.2 Recognize the evolution of such computerized support to
the current state of analytics/data science and artificial
intelligence
1.3 Describe the business intelligence (BI) methodology and
concepts
1.4 Understand the different types of analytics and see
applications in diverse domains

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Opening Vignette (1 of 6)
Sports Analytics—An Exciting Frontier for Learning and
Understanding Applications of Analytics

• Sports analytics has become a popular specialty within

analytics
• Sports is a big business
– Generating $500B in revenues annually
– Sports analytics expenditure $125 in 2018 to $885M in 2020
• Analytic in sports popularized by the Moneyball book by
Michael Lewis in 2003
– About Oakland A’s
– And the follow-on movie in 2011
• Nowadays, analytics is used in many facets of sports

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Opening Vignette (2 of 6)
Figure 1.1 Six Areas of Sports Analytics

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Opening Vignette (3 of 6)
Example 1: The Business Office—Fan Analytics
Figure 1.2 Season Ticket Renewals—Survey Scores

• Dynamic pricing in sports – how effective is it?

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Opening Vignette (4 of 6)
Example 2: The College Football Coach—Play Tactics
Figure 1.5 Heat Map Zone Analysis for Passing Plays

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Opening Vignette (5 of 6)
Example 4: The Cricket Coach—Roster and Play Decisions
Figure 1.7 An Example of the Analytical Summary Dashboard of a
Player’s Performance

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Opening Vignette (6 of 6)
Discussion Questions
1. What are three factors that might be part of a predictive
model for season ticket renewals?
2. What are three techniques that football teams can use to
do opponent analysis?
3. What other cricket player analytics can you imagine to
assist in making better coaching decisions?
4. What other analytics uses can you envision for your
favorite sport?

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Changing Business Environments and
Evolving Needs for Decision Support
and Analytics
• Decision-Making Process (Art → Science)
• Technologies for Data Analysis and Decision Support
– Group communication and collaboration
– Improved data management
– Managing giant data warehouses and Big Data
– Analytical support
– Overcoming cognitive limits in processing and storing information
– Knowledge management
– Anywhere, anytime support
– Innovation and artificial intelligence

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Decision-Making Processes and
Computerized Decision Support
Framework (1 of 2)
• Decision making: a process of choosing among alternatives
• Simon’s Process: Intelligence, Design, and Choice
– The Intelligence Phase – identifying the real problem (or
opportunity)
▪ Problem Classification, Problem Decomposition
▪ Problem Ownership
– The Design Phase – developing and analyzing possible courses
of action (via modeling)
– The Choice Phase – making the decision
– The Implementation Phase – turning the decision into action
• See ANALYTICS IN ACTION 1.1 Making Elevators Go Faster!

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Decision-Making Processes and
Computerized Decision Support
Framework (2 of 2)
• Simon’s Decision-
Making Process

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Evolution of Computerized Decision
Support to Analytics/Data Science
Figure 1.18 Evolution of Decision Support, Business
Intelligence, Analytics, and A I

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
A Framework for Business
Intelligence (1 of 3)
• DSS → EIS → BI
• Definition of Business Intelligence
– [Broad Definition] An umbrella term that combines
architectures, tools, databases, analytical tools,
applications, and methodologies
– [Narrow Definition] Descriptive analytics tools and
techniques (i.e., reporting tools)
• A Brief History of B I – 1970s → 1980s → 1990s …
• The Origins and Drivers of BI (See Figure 1.19)
• The Architecture of BI (See Figure 1.20)

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
A Framework for Business
Intelligence (2 of 3)
Figure 1.19 Evolution of Business Intelligence (BI)

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
A Framework for Business
Intelligence (3 of 3)
• The Architecture of BI
Figure 1.20 A High-Level Architecture of BI

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
A Multimedia Exercise in Business
Intelligence
• TUN ( TeradataUniversityNetwork.com )
– BSI Videos (Business Scenario Investigations)
▪ Analogues to CSI (Crime Scene Investigation)
• Go To
– www.youtube.com/watch?v=NXEL5F4_aKA
• See the
– www.slideshare.net/teradata/bsi-how-we-did-it-the-
case-of-the-misconnecting-passengers.slides

• Discuss the case presented in the video and in the slides

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Transaction Processing Versus
Analytic Processing
• Online Transaction Processing (OLTP)
– Operational databases
– ERP, S CM, CRM, …
– Goal: data capture

• Online Analytical Processing (OLAP)

– Data warehouses
– Goal: decision support
• What is the relationship between OLTP and OLA P?
The primary purpose of online analytical processing (OLAP) is to analyze aggregated data, while
the primary purpose of online transaction processing (OLTP) is to process database transactions.

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Appropriate Planning and Alignment
with the Business Strategy
• Planning and Execution → Business, Organization,
Functionality, and Infrastructure
• Functions served by BI Competency Center
– How BI is linked to strategy and execution of strategy
– Encourage interaction between the potential business
user communities and the IS organization
– Serve as a repository and disseminator of best BI
practices between and among the different lines of
business.
– Standards of excellence in BI practices can be
advocated and encouraged throughout the company
Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Real-Time, On-Demand BI is
Attainable
• Emergence of real-time BI applications
• Justifying the need
– Is there a need for real-time [is it worth the additional
expense]?
• Leveraging the enablers
– R FI D
– Web services
– Intelligent agents

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Critical BI System Considerations
• Developing or Acquiring B I Systems
– Make versus buy
– BI shells
• Justification and Cost–Benefit Analysis
– A challenging endeavor, why?
• Security
• Protection of Privacy
• Integration of Systems and Applications

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Analytics Overview
• Analytics … a relatively new term/buzz-word
• Analytics … the process of developing actionable
decisions or recommendations for actions based on
insights generated from historical data
• According to the Institute for Operations Research and
Management Science (INF ORMS)
– Analytics represents the combination of computer
technology, management science techniques, and
statistics to solve real problems.

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Business Analytics
Figure 1.21 Three Types of Analytics

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Descriptive Analytics
• Descriptive or reporting analytics
• Answering the question of what happened
• Retrospective analysis of historic data
• Enablers
– OLA P/DW
– Data visualization
▪ Dashboards and Scorecards
– Descriptive statistics

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Predictive Analytics
• Aims to determine what is likely to happen in the future
(foreseeing the future events)
• Looking at the past data to predict the future
• Enablers
– Data mining
– Text mining/Web mining
– Forecasting (i.e., time series)

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Prescriptive Analytics
• Aims to determine the best possible decision
• Also called decision analytics or normative analytics
• Uses both descriptive and predictive to create the
alternatives, and then determines the best one
• Enablers
– Optimization
– Simulation
– Multi-Criteria Decision Modeling
– Heuristic Programming
• The outcomes (i.e., decisions) can be provided to decision
maker to use or implemented automatically

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Analytics/Data Science/Machine
Learning/A I?
• Analytics versus Data Science
• Data Scientists are the practitioners of Data Science
• Data Analyst versus Data Scientist
• Machine learning has become a substitute term for
predictive analytics in some cases
• Degree programs in computer science, statistics, applied
math prefer to use Data Science while business schools
prefer Business Analytics
• AI (umbrella term), Network Science (groups and links)

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Analytics Examples in Selected
Domains (1 of 5) for students
• Analytics Application in HealthCare—Humana Examples
– Example 1: Preventing Falls in a Senior Population—
An Analytic Approach
– Example 2: Humana’s Bold Goal—Application of
Analytics to Define the Right Metrics
– Example 3: Predictive Models to Identify the Highest
Risk Membership in a Health Insurer

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Analytics Examples in Selected
Domains (2 of 5)
• Analytics in Retail Value Chain
Figure 1.24 Example of Analytics Applications in a Retail
Value Chain

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Analytics Examples in Retail Value
Chain
Table 1.1 Examples of Analytics Applications in the Retail Value Chain
Analytic
Application Business Question Business Value
Inventory 1. Which products have high demand? 1. Forecast the consumption of fast-moving products
Optimization 2. Which products are slow moving or and order them with sufficient inventory
becoming obsolete? to avoid a stock-out scenario.
2. Perform fast inventory turnover of slow-moving
products by combining them with one in high
demand.
Price Elasticity 1. How much net margin do I have on the 1. Markdown prices for each product can be
product? optimized to reduce the margin dollar loss.
2. How much discount can I give on this 2. Optimized price for the bundle of products is
product? identified to save the margin dollar.
Market Basket 1. What products should I combine to create 1. The affinity analysis identifies the hidden
Analysis a bundle offer? correlations between the products, which can elp in
2. Should I combine products based on slow- following values a) Strategize the product bundle
moving and fast-moving characteristics? offering based on focus on inventory or margin. b)
3. Should I create a bundle from the same Increase cross-sell or up-sell by creating bundle
category or different category line? from different categories or the same categories,
respectively.

• For the complete table, refer to your textbook

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Analytics Examples in Selected
Domains (3 of 5)
• Gaming (Casino) Industry Applications
– Analyze slot floor performance
– Visualize to determine how location affects
performance
– Measure and track slot ROI
– Optical bet recognition and table game analysis
– Track every bet, monitor every game, rate every player
– Identifying addictive behavior and problem gamblers
– Identify money-laundering customers
– Fraud detection

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Analytics Examples in Selected
Domains (4 of 5)
• COVID-19 Analytics Applications
– Methods for detecting COVID-19 positive patients using various
measures.
– Monitoring current levels of infection and prediction of future
spread by applying forecasting models
– Predicting mortality risk among COVID-19 infected individuals
– Prescriptive analytics to assist with patient management in
hospitals when the patient demand
– Studies of existing medicine and their potential value in treating
COVID-19 disease or its symptoms
– Many more …

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Analytics Examples in Selected
Domains (5 of 5)
• COVID-19 Analytics Applications
Figure 1.27 Time Series of Reported COVID-19 Cases in Oklahoma

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Plan of The Book
Figure 1.28 Plan of the Book

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Resources
• The Data Warehousing Institute ( tdwi.org )
• Data Science Central ( datasciencecentral.com )
• Microsoft Enterprise Consortium (
https://walton.uark.edu/enterprise/ )
• Periodicals, Vendors, Products, and Demos …
• The Teradata University for Academics Connection
– https://learning-academics.teradata.com/
• The Book’s Web Site
– pearsonhighered.com/sharda

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
End of Chapter 1
• Questions/Comments

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved
Copyright

This work is protected by United States copyright laws and is

provided solely for the use of instructors in teaching their courses
and assessing student learning. Dissemination or sale of any part
of this work (including on the World Wide Web) will destroy the
integrity of the work and is not permitted. The work and materials
from it should never be made available to students except by
instructors using the accompanying text in their classes. All
recipients of this work are expected to abide by these restrictions
and to honor the intended pedagogical purposes and the needs of
other instructors who rely on these materials.

Copyright © 2024, 2018, 2014, 2011 Pearson Education, Inc. All Rights Reserved