Analytics, Data Science and A I:
Systems for Decision Support
Eleventh Edition, Global Edition
Chapter 1
Overview of Business Intelligence,
Analytics, Data Science, and
Artificial Intelligence: Systems for
Decision Support
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Learning Objectives (1 of 2)
1.1 Understand the need for computerized support of
managerial decision making.
1.2 Understand the development of systems for providing
decision-making support.
1.3 Recognize the evolution of such computerized support
to the current state of analytics/data science and
artificial intelligence.
1.4 Describe the business intelligence (B I) methodology
and concepts.
1.5 Understand the different types of analytics and review
selected applications.
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Learning Objectives (2 of 2)
1.6 Understand the basic concepts of artificial intelligence
(A I) and see selected applications.
1.7 Understand the analytics ecosystem to identify various
key players and career opportunities.
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
The Influence of the External and
Internal Environments on the
Process
• Technology, I S, Internet, globalization, …
• Government regulations, compliance, …
– Political factors
– Economic factors
– Social and psychological factors
– Environment factors
• Need to make rapid decision, changing market conditions,
…
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
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
• Knowledge management
• Anywhere, anytime support
• Innovation and artificial intelligence
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Decision-making Processes And
Computerized Decision Support
Framework
• What is “Decision making”?
• Simon’s Decision Making Process
– Proposed in 1977 by Herbert Alexander Simon (an
American economist and political scientist)
– Includes three phases:
1. Intelligence
2. Design
3. Choice
4. [+] Implementation
5. [+] Monitoring
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
The Decision-Making Process
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Decision-making Processes (1 of 2)
Phase 1 - The Intelligence Phase: Problem (or Opportunity)
Identification
• Issues in data collection
• Problem classification
• Problem decomposition
• Problem ownership
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Decision-Making Processes (2 of 2)
Phase 2 - The Design Phase
– Models
Phase 3 - The Choice Phase
– Evaluating alternatives
Phase 4 - The Implementation Phase
– Implementing the solution
Phase 5 – Monitoring
• Phase 4 and 5 were not part of Simons’ original model
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
The Classical Decision Support
System Framework
• Degree of structuredness
– Structured, unstructured, semistructured problems
• Type of control
– Operational, managerial, strategic
• The decision Support matrix
• Computer support for …
– Structured decisions
– Unstructured decisions
– Semistructured problems
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Decision Support Framework
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Key Characteristics and Capabilities
of Decision Support System (DS S)
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Components of a DSS (1 of 2)
• The Data
Management
System
– DS S database
– Database
management
system (DBM S)
– Data directory
– Query facility
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Components of a DSS (2 of 2)
• The Model Management Subsystem
– Model base
– MBM S
– Modeling language
– Model directory
– Model execution, integration, and command
processor
• The User Interface Subsystem
• The Knowledge-Based Subsystem
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Evolution of Computerized Decision
Support to Business Intelligence,
Analytics, Data Science
Figure 1.5 Evolution of Decision Support, Business
Intelligence, Analytics, and A I.
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
A Framework for Business
Intelligence
• Definitions of business intelligence (B I)
• The architecture of B I
– Data warehousing (D W) [as a foundation of B I]
– Business Analytics Performance
– Business performance management (BP M)
– User interface (dashboard)
• Appropriate planning and alignment of B I with the
business strategy
• OLTP versus OLAP
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
The Origins and Drivers of B I
Figure 1.7 A High-Level Architecture of B I.
Source: Based on W. Eckerson. (2003). Smart Companies in the 21st Century:
The Secrets of Creating Successful Business Intelligent Solutions Seattle, W A:
The Data Warehousing Institute, p. 32, Illustration 5.
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Data Warehouse Framework
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Analytics Overview (1 of 2)
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Analytics Overview (2 of 2)
• Three types of analytics
– Descriptive (or reporting) analytics …
– Predictive analytics …
– Prescriptive analytics …
• Analytics applied to different domains
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Analytics Examples in Selected
Domains (1 of 2)
• Sports Analytics—An Exciting Frontier for Learning and
Understanding Applications of Analytics
– Example 1: Business office
– Example 2: The Coach
• Healthcare—Humana Examples
– Example 1: Preventing Falls in a Senior Population
– Example 2: Define the Right Metrics
– Example 3: Predictive Models to Identify the Highest Risk
Membership in a Health Insurer
• Retail—Retail Value Chain …
• Image Analytics
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Analytics Examples in Selected
Domains (2 of 2)
• Retail …
Figure 1.15 Example of Analytics Applications in a Retail Value Chain.
Source: Contributed by Abhishek Rathi, CE O, [Link].
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
Main concepts
• Artificial Intelligence (A I)
• Data science
• Big Data
Copyright © 2021 Pearson Education Ltd. All Rights Reserved.
