CENG 464
INTRODUCTION TO DATA MINING
Prof. Dr. Nergiz Ercil ÇAĞILTAY
Contents
1. Business Operations / Operational systems
2. Success of a business
3. Business Intelligence
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What is a Decision
• A reasoned choice among alternatives
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What is a Decision
• Part of the broader subject…problem solving
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What is a Decision
• How do we solve a problem?
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What is a Decision
• Problem solving – the overall process of closing the gap between
reality and a more desirable situation.
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Characteristics of a Decision
• Each decision is characterized by a decision statement
• States what we are trying to decide
• A clear decision statement is important to intelligent
decision making
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Characteristics of a Decision
• Each decision is characterized by a decision statement
• If we don’t have a clear decision statement, you
cannot develop the best system to support
people making that decision
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Characteristics of a Decision
• Decision statement
• a clear understanding of the decision to be made
with the help of the proposed system
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The Decision Process
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The Decision Process
• The Intelligence Phase
• Finding
• Identifying
• Formulating
the problem or situation that calls for a decision
(Deciding what to decide)
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The Decision Process
• The Design Phase
Where we develop alternatives
May involve a great deal of research into the available
options
• The Choice Phase
Evaluate the alternatives and choose one of them
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Types of Decisions
Structured
• One for which a well-defined decision-making
procedure exists
• Can be left to a clerk with written instructions or
to a computer
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Types of Decisions
Unstructured
• One for which all three decision phases are
unstructured
• We don’t know how to specify at least one aspect of
each phase: its inputs, its outputs, or its internal
procedures
• Computers can help, but these leave more of the
process to the worker
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Types of Decisions
Semi structured
• Has some structured aspects but can’t be completely
structured
• Computers can provide a great deal of help
• Most decision are of this type
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Decision Support System
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Decision Support System
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Decision Support System
On-line analytical processing (OLAP) is
an element/part of DSS
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Thought for the day
“It is not always what we know or analyzed before we
make a decision that makes it a great decision.
It is what we do after we make the decision to
implement and execute it that makes it a good decision”
(William Pollard)
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