L1 2 Introduction
L1 2 Introduction
INS3063
Enterprise Analytics For Decision Support
L1-2. introduction
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Outline
▪ What is business?
▪ What is business analytics?
▪ More about data and models
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Open a restaurant?
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Business?
Activities
▪Accounting
Business is the
activity of making ▪ Finance
one’s living or ▪Manufacturing
making money by ▪ Marketing
producing or 6
buying and selling
▪ Sales
products (such as ▪ Customer
goods and ▪Management
services) (employees)
https://en.wikipedia.org/wiki/Business#Activities
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Activities
Services
(quality?)
Revenue (high, low?)
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Activities
• Marketing
• Sales
• Customer
How's the Business • Management
menu? plan? (employees)
Who is the
customer? How to
advertise?
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What is business?
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What do businesses do?
▪ Generate profit/surplus
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What businesses do
• Customers
• Managers
• Employees
• Owners
• Local Community/Environment
• Suppliers
• Government
• Creditors
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What businesses do
Profit
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Outline
▪ What is business?
▪ What is business analytics?
▪ More about data and model
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How to make a restaurant more profitable?
Production
Food (richness, quality,
quantity?)
Employees
(performance?) Raw materials
(quality, price?)
Employees
Material Supply
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What calculation and analysis?
Số đo sự ưa thích
# lần món ăn được yêu cầu
Tỷ lệ gọi lại món ăn
Chất lượng # lần món ăn được gọi lại /
món ăn Số đo sự ưa thích
Tỷ lệ mời miễn phí món ăn
# lần mới món ăn miễn phí /
Số đo sự ưa thích
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What calculation ?
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What calculation?
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From where the data?
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How to calculate and analyze?
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How to calculate and
analyze?
How many matches are there?
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How to calculate and
analyze?
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How to calculate and analyze?
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What is decision making ?
(decision support systems DSS)
• Programmed Decisions
> Decisions that you have made before and just repeating
them.
> Ordering a food online.
• Non-Programmed Decisions
> Decisions that you have not made before and there is no
previous rules and guidelines on them.
> Signing up with a new contractor, measuring the potential
of global market.
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How are decisions usually made?
1 2 3
6 5 4
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Progress of business analytics
Delen et al., The analytics paradigm in business research, Journal of business research, 2018
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Trends of BA, BI, DS and AI
Data science
Artificial intelligence
Business intelligence
Business analytics
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Decision support system (DSS)
Data Decision
Three traditional
DB Model Model components of decision
1 2 3 4
support systems
DB
Decision
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Over the past decades DSS
User
Supprt
System Interaction has been associated with
the use of knowledge
Data Decision
DB Model Model
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Enterprise resource planning
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Executive information systems
(EIS)
of DSS designed to
support decision
making at the top
level of an
organization. Truy cập trạng thái, phân tích
xu hướng và báo cáo ngoại lệ
Dẫn dắt thông tin
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Business intelligence
(BI)
A category of Tập hợp các khái niệm và BI lets organisations BI giúp doanh nghiệp
phương pháp để cải thiện chuyển đổi dữ liệu tác
applications and việc ra các quyêt định
access, analyse, and nghiệp thfnh thông tin
technologies for kinh doanh nhờ dùng các share information hành động; giúp gặp gỡ
gathering, storing, hệ hỗ trợ quyết định dựa các báo cáo và các nhu
internally with cầu phân tích tiên tiến.
trên sự kiện.
analysing, reporting on employees and
A set of concepts BI helps
and providing access to externally with
and methods to corporations
data to help enterprise
improve business customers, suppliers, transform their
users make better
decision making by and partners operational data
business decisions
Một phạm trù ứng dụng và using fact-based BI cho phép các tổ chức truy into actionable
nhập, phân tích, và chia sẻ
công nghệ để thu thập, lưu support systems. thông tin bên trong với nhân
information; helps
trữ, phân viên và bên ngoài với khách meet query
tích, báo cáo và cho phép truy
nhập dữ liệu để giúp doanh
Gartner Group hàng, người cung ứng, và đối reporting and
www.gartner.com tác.
nghiệp tạo các quyết định tốt advanced analytical
hơn. needs
Cognos www.cognos.com Business Objects
www.businessobjects.com MicroStrategy
www.microstrategy.com
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Business intelligence
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What are the business analytics?
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What are the business analytics?
Analytics is the use of: Phân tích kinh doanh là việc sử dụng: dữ
1.data, liệu, công nghệ thông tin, phân tích
thống kê, phương pháp định lượng, và
2.information technology, mô hình toán học hoặc mô hình dựa vào
máy tính
3.statistical analysis,
để giúp các nhà quản lý có được sự thấu
4.quantitative methods, hiểu hơn về hoạt động kinh doanh của
5. and mathematical or computer- mình và đưa ra quyết định tốt hơn dựa
based models vào các sự kiện thực tế.
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What are the business analytics?
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What are the business analytics?
Analytic vs. Analysis
Analytics vs. Analysis
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What are the business analytics?
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BA landscape
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Four types of analytics capability
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Three levels of business analysis
Descriptive analytics Predictive analytics Prescriptive analytics
Questions What happened? What's going Why is this happening? What What should I do? Why
on? will happen next? Why will it should do that?
What exactly is the problem? happen? What's the best that could
What actions are needed? happen?
What if you try this?
Enablers ▪ Irregular report ▪ Data mining ▪ Optimization
▪ Dashboard ▪ Text mining ▪ Simulation
▪ Data warehouse ▪ Web/Media Mining ▪ Decision modeling
▪ Alarm ▪ Forecast ▪ Random test
Outcomes Clearly identify business Accurately predict condition Make the best business
problems and opportunities and future state decisions and deals possible
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Predictive Analytics
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Prescriptive Analytics
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Analytical Models
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Importance of BA
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Key problems of business analytics
Finance
Production
01
Customers
06 02
Employee
05 03 Sale
04
Marketing
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Outline
▪ What is business?
▪ What is business analytics?
▪ More about data and models
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Data, information, knowledge
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Data, information, and knowledge
integrated information,
including facts and their
Metaphor: relations (“justified true belief)
Data: rock; Is this road appropriate for such
knowledge: ore. amount of cars?
Obtaining by
-Perceiving data equipped with meaning
-Discovering Average of number of cars each
-Learning hour, each day, each week, each
year on the road.
Obtaining by
-Processing
Un-interpreted signal
Obtaining by Number of cars counted on a
-Observing road by hours, by days of the
-Measuring week, by months.
-Collecting
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Basic data types
=s (Binary, Boolean)
=s≥+
×
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Labelled vs. Unlabelled data
Structured
data
Unstructured data
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Model in business analytics
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Model in business analytics
Independent variable
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Model in business analytics
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Model in business analytics
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BA models: Logic-driven models
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BA models: Data-driven models
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BA models: Data-driven models
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BA models: Data-driven models
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Monte Carlo simulation & System simulation
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Decision Models
Figure 1.7
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Descriptive analytics
1. Function
• Describe the main characteristics of the organization's
data
2. Popular tools (descriptive statistics)
• Sampling, mean, mode, median, standard deviation,
range, variance, stem and leaf diagram, histogram,
intercoding range, quartile and frequency distribution,
etc.
3. Show results
• Graphics/charts, tables and summary statistics
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Descriptive analytics
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Descriptive Analytics: Excel & Power BI
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Decision models
Predictive Decision models often
incorporate uncertainty to help
managers analyze risk.
Aim to predict what will happen in the
future.
Uncertainty is imperfect knowledge of
what will happen in the future.
Risk is associated with the
consequences of what actually happens.
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Decision models
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Predictive Analytics
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Prescriptive analytics
▪ Prescriptive analytics are often referred to as advanced
analytics. (Regression analysis, machine learning, and
neural networks)
▪ Often for the allocation of scarce resources
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Optimization : What you need and what to do ?
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Business analytics
ANALYTIC
BUSINESS
S 84
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Business analytics questions
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Business analytics questions
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Customer Segmentation
Priority
customers
Customers buy
branded goods
Customers tend
to leave
Customers
hunting for
Customer discounts
s
Customer segmentation
strategy
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Investigate a problem in business
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Thank for
Your attention
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