- People need to analyze large amounts of information
- People must make decisions quickly
- People must apply sophisticated analysis techniques such as modelling and forecasting to make good decisions
- People must protect the corporate asset of organizational information
Transaction processing system- the basic business system that serves the operational level in an organization.
Online transaction processing (OLTP)- the capturing of transaction and event information using technology.
Online analytical processing (OLAP)- the manipulation of information to create business intelligane in support of strategic decision making.
3 quantitative models:
- Sensitivity analysis- the study of the impact that changes in one or more parts of the model have on other parts of the model
- What-if analysis- checks the impact of a change in an assumption on the proposed solution.
- Goal-seeking analysis- finds the inputs necessary to achieve a goal such as a desired level of output.
Executive Information Systems
- Consolidation- involves the aggregation of information and features simple roll-ups to complex groupings of interrelated information.
- Drill down- enables users to get details ad details of details of information.
- Slice and dice- looks at information from different perspectives.
Intelligent system- various commercial applications of artificial intelligence
Artificial intelligence (AI) - simulates human intelligence such as ability to reason and learn.
4 most common categories of AI:
- Expert system- computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems.
- Neural Network- attempts to emulate the way the human brain works
- Genetic algorithm- an artificial intelligent system that mimics the evolutionary, survival of the fittest process to to generate increasingly better solutions to a problem.
- Intelligent agent- special-purposed knowledge-based information system that accomplishes specific tasks on behalf of its users/
Common forms of data-mining analysis capabilities:
- Cluster analysis- a technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible.
- Association detection- reveals the degree to which variable are related and the nature and frequency of these relationships in the information.
- Statistical analysis- performs such functions as information correlations, distributions, calculation and variance analysis.
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