Companies are adopting business intelligence system within their organizations because by using the system reports they can gain the advantages of understanding their internal strength and weaknesses to face external competitors and challenges to increase profits and reduce cost on their everyday operations and processes.
One quoted advantage of implementing a Business Intelligence systems is the concept
of a ‘single version of the truth’ Explain what this refers to?
‘Single version of Truth” quoted in advantage of implementing Business Intelligence Systems means be referring to how accurate the information being pull out from the system as reports. As long as the reports are from one source, and retrieved by a defined time, the data in these reports are truly the same all over the enterprise.
c) Explain the difference between OLAP analysis and data mining / predictive analysis
OLAP, Online Analytical Processing, analyst is to provide multidirectional data analysis data out of database(s). It analysis on operational questions, like average, summation, mid, median, maximum, minimum, variance, and etc. this is to optimal transaction speed for quicker reporting of transaction records to customer or company’s management. Data mining / predictive analysis is to identify trends, anticipated hot-spots, predict future trends based on the likelihood of specific activity, and refined resource deployment decisions. OLAP analysis and data mining / predictive analysis are used to solve different kinds of analytical problems. OLAP analysis used on operational problems and data mining / predictive analysis unveil hidden pattern in data and operates at details level instead.
a) Explain how predictive analysis can be used within an organization. Explain what benefits it’s adoption could provide. Provide examples
Predictive analysis helps forecast the future event outcome or likelihood of specific activity occurring. From the above forecast, an organization can plan a foreseeable level of investment and maintain and reasonable sales figure to minimize risk factors and maximize the profits. For example, Insurance companies using predictive analysis of past years data to predict which age of year a person starting to have health problems, and person above the average BMI will tentatively have more health problem. With the data above, they will sell their policy to those people in the border line and above, Insurance companies will need the policy holder to make more expensive yearly premium compare to ordinary person.
b) Define the term real time Business Intelligence
Real time Business Intelligence is also refers as event-driven Business Intelligence. It must react to events as they occur, not later but now, just speed of a second. This means real time Business Intelligence can have significant improvement in latency since actions are taken immediate. Example, ATM and POS transactions are fed to the real time Business Intelligence system as they are generated.
a) Explain the use of facts, dimensions and attributes in a star schema model.
A Star schema model has at least one or more fact tables are referenced by other dimension tables by the primary key and composed of other foreign keys.
Fact tables are the focus of the analysis for a business process, and refer to revenue, actual, budgets, and sales. Dimension tables refer to product, market, time period, and line item. Non-key column in a fact table will be an attribute
Example: A Star Schema model
b) In relation to a fact table, what does the term granularity refer to? What are the implications of implementing either high or low granularity
Granularity refers to the level of details in a set of data in the fact table. The deeper the level of details, the greater the granularity it is. Table with low granularity is divided into a small...
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