Unit 1 Half

Unit 1
1. What is Business Intelligence? Why Effective and timely decisions are must?
The advent of low-cost data storage technologies and the wide availability of Internet
connections have made it easier for individuals and organizations to access large amounts of
data. Such data are often heterogeneous in origin, content and representation, as they include
commercial, financial and administrative transactions, web navigation paths, emails, texts and
hypertexts. Business intelligence may be defined as a set of mathematical models and analysis
methodologies that exploit the available data to generate information and knowledge useful for
complex decision-making processes. Business Intelligence is to support and facilitate better
business decisions.
Effective decisions: The application of rigorous analytical methods allows decision makers to
rely on information and knowledge which are more dependable.
Timely decisions: The ability to rapidly react to the actions of competitors and to new market
conditions is a critical factor in the success or the survival of a company.
2. Data, Information and Knowledge.
1. Data: Data refers to raw facts and figures, often stored in databases or spreadsheets. Data can
be structured or unstructured and may include numbers, text, images, etc.
2. Information: Data that has been processed, organized, and presented in a meaningful context.
It provides answers to specific questions and helps users understand the significance of the data.
Information can be in the form of reports, charts, graphs, etc.
3. Knowledge: Knowledge enables businesses to gain a deeper understanding of their operations,
customers, and market dynamics and helping them to formulate strategies and drive innovation.
3. Business Intelligence Architecture
The architecture of a business intelligence system, includes three major components.

•Data sources.
•Data warehouses and data marts.
•Business intelligence methodologies.
4. DECISION-MAKING PROCESS
The decision-making process It includes five phases
• Intelligence: In this phase where the problem or opportunity is identified and defined, It
involves gathering information, understanding the situation and providing need for a decision.
• Design: In the design phase actions aimed at solving the identified problem and developing
possible strategies to address the problem or seize the opportunity.
• Choice: Decision is made among the available alternatives. Mathematical models and the
corresponding solution methods usually play a valuable role during the choice phase.
• Implementation: This phase involves putting the chosen decision into action. When the best
alternative has been selected by the decision maker.
• Control: Once the action has been implemented, it is finally necessary to verify and check that
the original expectations have been satisfied as intended.
5. Define DSS
A decision support system (DSS) is an interactive computer-based application that combines data
and mathematical models to help decision makers solve complex problems faced in managing
the public and private enterprises and organizations.
Phases in the development of a DSS:

• Planning: The main purpose of the planning phase is to understand the needs and
opportunities, translate them into project & later into DSS.
• Analysis: Define detailed functions of DSS to be developed and responses to the questions like
What should the DSS accomplish, and who will use it, when and how?
• Design: The design phase of a DSS is where the conceptual, logical, and physical aspects of the
system are developed. The design shows how will the DSS work.
• Implementation: The implementation phase is where the design blueprint is transformed into a
working system. And the process of Installation and testing is also done.
6. What are the different types of models?
Predictive models: Predictive models are used to forecast future outcomes based on historical
data.
Pattern recognition models: This model focuses on identifying patterns, correlations, or trends in
data. It’s widely used for segmentation and classification tasks
Project Model : The Purpose of project model is to Design,plan, execute, and monitor projects
efficiently. It focuses on scheduling and project performance tracking.
Optimization Model: Focuses on finding the best solution from a set of available alternatives,
under given constraints. They are widely used in logistics, scheduling and supply chain
management.
Risk Analysis Model: These models help to identify, assess, and prioritize risks to minimize the
impact on the business.
Unit 2
1. Data mining process and main phases.
Data mining is the process of discovering patterns, correlations, and insights from large datasets
to extract valuable information for decision-making and predictive analysis.
1. Data gathering and integration: Collecting relevant data from various sources and combining it
into a unified dataset.
2. Exploratory analysis: Exploring the data to understand its characteristics, patterns, and
relationships through visualization and summary statistics.
3. Model development : Building predictive models using the data and validating their
performance to ensure accuracy and reliability.
4. Prediction and interpretation: Using the validated models to make predictions on new data and
interpreting the results to gain insights and inform decision-making.
2. Difference between OLAPS and Data mining.
3. What is PCA?
i. PCA stands for Principal Component Analysis.
ii. It’s a statistical technique used for dimensionality reduction in data analysis.
Iii. The main objective of PCA is to reduce the number of variables in a dataset.
iv. PCA is widely used in various fields such as data analysis, machine learning and
pattern recognition.
v. Overall, PCA is a powerful tool for data analysis and can help to simplify complex
datasets, making them easier to understand and work with.

Unit 1 Half

Uploaded by

Copyright:

Available Formats

Unit 1 Half

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Unit 1 Half

Uploaded by

Copyright:

Available Formats

Unit 1

3. Business Intelligence Architecture

The architecture of a business intelligence system, includes three major components.

Phases in the development of a DSS:

You might also like