Acct 6910

Building Business Intelligence Systems

Class Introduction – From Data to Knowledge

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Business Intelligence

We are drowning in data, but starving for knowledge

Business intelligence (BI) is knowledge extracted from data to support better business decision making.

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Data, Information, Knowledge

Data is a set of discrete, objective facts about events. Ex., Mark’s GPA is 2.9 in Fall 2001.

Information is meaningful data. Ex., how is Mark’s performance in Fall 2001?

Knowledge is hidden patterns extracted from data. Ex., how to improve Mark’s academic performance?

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Data, Information, Knowledge

Online bookstore Example:

July’s revenue is $2 million

July’s sale is bad.

Suggest marketing strategy to boost sales

Data

Knowledge

Information

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Building BI Systems

Data Warehouse: A huge and integrated data base.

Data mining: Techniques to extract hidden patterns from data.

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What’s the Excitement About Data Warehouse?

1. Internet2. Data warehouse3. E-commerce

The top three most important technologies ranked by IT managers in 2000-2001 (Recent surveys by The Data Warehousing Institute and Deloitte Research)

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What’s the Excitement About Data Mining?

Brain-machine interfaces

Flexible transistors Data mining Digital rights

management Biometrics

Natural language processing

Microphotonics Untangling code Robot design Microfluidics

10 emerging technologies that will change the world (MIT’s Magazine of Innovation, 2001 Annual Innovation Issue)

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Data Mining Applications

Finance and Insurance

Marketing: Target Marketing, Cross Selling

E-commerce: personalization, recommendation, web site design

Crime Detecting

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Course Objectives

Concept Learning Hands on experience Real world oriented learning Promoting data warehouse and data

mining career interests and opportunities

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Course Structure

Data Warehouse Logical design of data warehouse Physical design of data warehouse Data preparation and staging Data analysis (OLAP)

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Course Structure

Data Mining Association rules – Cross Selling Clustering – Target Marketing Classification – Credit Card Approval Advanced issues – web mining,

personalization