Business Intelligence

- Systems for extracting, filtering and transforming data from transaction processing system (TPS) and unstructured information (internal and external to the company) into structured information, for direct exploitation or analysis

- Purpose of BI: Supporting strategic business decision-making

- BIs are classified as “Decision Support Systems” (DSS) for senior management but with tools capable of generating knowledge of Big Data

- Structured problems: Transaction Processing systems (TPS)

- Semistructured problems: Management Information Systems (MIS)

- Unstructured problems: Decision Support Systems (DSS)

- They manage the transactions of the company

- Repetitive problems

- Clear operating rules and no exceptions

- The system provides the data to solve the problem or operation

- In many cases operations can be automated

- Typical operational-level operations

o   Accounting Programs

o   Warehouse Management Programs

o   MRP (Manufacturing Resource Planning)

o   CRM (Customer Resource Planning)

o   SCM (Supply Chain Management)

o   ERP (Enterprise Resource Planning)

- There is a mathematical model to solve the problem, but unlike TPS, the model is usually more complex (more variables)

- All the data is available to solve the problem, although some of them are discretionary, set by the company’s policy (e.g. service level, cost, delivery time, etc.). Therefore, it allows you to test several combinations in the mathematical model and select an option.

- They appear at the tactical level (department-specific management techniques). They need the monitoring of the solution offered by the system and should allow you to test different options.

o   Setting safety stock levels

o   Monthly planning of batch production of various products

o   Allocation of resources to different projects

o   Personnel planning

- To deal with unstructured and complex problems. Many factors to consider and there is no mathematical model that solves the problem.

- Some factors to consider are not quantifiable. Some causal relationships between factors are ambiguous. There is uncertainty about some factors (dynamic environments and long-term decisions).

o   Summarize the data

o   Spot trends

o   Compare variables

o   Make forecasts

o   Simple printing of large amounts of information

o   Create models with different variables

o   GPS routing

o   Clinical decision support system

- Big data is the management and analysis of huge volumes of data that due to its size cannot be treated in a conventional way

- The complex nature of Big Data is mainly due to the unstructured nature of much of the data generated by information technologies, such as websites, blogs, sensors embedded in devices, IoT, etc.

• volume

• variety

• speed

- Data mining is a technical, automatic or semi-automatic process that analyses large amounts of scattered information to make sense of it and turn it into knowledge. It looks for anomalies, patterns, or correlations between millions of records to predict outcomes.

- It can use mathematical, statistical and artificial intelligence techniques

- In most cases, in order to effectively use Big Data, it must be combined with structured data (typically from a relational database)

- Also known as “control panel”

- Part of the planning and control systems of senior management

- Visual summary of the business situation through Key Performance Indicators (KPIs)

- Used at executive and managerial level

- Select key variables and indicators

- Intuitive chart tracking

- Detect and report deviations from objectives

- It is the evolution of the “control panel”

- It is a management and strategic planning system. Establishes casual relationships between strategic actions and indicators that speed up the readjustment processes to achieve the objectives when there are deviations.

- Control of coherence between the activities of the company and its strategic objectives. Focused on key parameters of the activity. It includes 4 perspectives of the business that must be taken into account (in the classic scorecards the financial vision dominated excessively).

- Includes planning and adjustment measures.

• Financial

• Customer and markets

• Internal business processes

• Learning and Growth

Effect-Chain bottom-up