Decision Support System
- HW #1 -
Chapter 1. Exercise 2 & 3
Chapter 1. Internet Exercise 4 & 8
Chapter 2. Exercise 5 & 9
Chapter 2. Exercise 3 & 4
< Chap 1. Exercises 2 >
Enter the TUN site and select “cases, projects and assignments.” Then select the case study: “Harrah’s High Payoff from Customer Information.” Answer the following questions about this case: a. What information does the data mining generate?
Answer) Customer behavior and preference related data.
It is needed to analyze customer behavior and preference data. To generate the necessary data and understand customers’ preferences, Harrah’s had to mine the data. From these requirements, Harrah’s Winners Information Network (WINet) emerged. b. How is this information helpful to management in decision making? (Be specific.) Answer) Customer behavior and preferences, those information which is the result derived from the analysis is useful for management to make a decision. Harrah’s wanted to take a different, more cost-effective route to attract, maintain, and enhance customer relationships, especially, a business strategy that focuses on knowing their customers well. Through the strategy, the management try to obtain hundreds of customer attributes to determine each customer’s preferences and predict what future services and rewards they will want. Therefore, they can collect customer data and identify market segments and customer profiles, create appealing offers casino, hotel, event, gaming product, and tracked play. The service representative can look up their profile and make decisions about how to treat the customer, such as offering free event tickets or meals. c. List the types of data that are mined.
1) Customer behavior
Data recorded from tournaments and special events (e.g., wine tasting weekend, slot machine tournaments) Pattern Data recorded for customers to bet money and to redeem rewards 2) Customer preferences
Preference data (e.g., smoking or non-smoking room)
3) Customer information detailed
The details of a customer’s stay, demographic data (e.g., home address) The favorite food, beverages, and so on.
d. Is this a DSS or BI application? Why?
In this case, it is referred to Business intelligence (BI). BI refers to computer-based techniques used in identifying, extracting(clarification needed), and analyzing business data, such as sales revenue by products and/or departments, or by associated costs and incomes[wikipedia]. BI try to support better dicision making for business administration. Especially, BI uses technologies, processes, and applications to analyze information. In a broad sense, BI can be included in DSS. DSS is considered to decision making for the scale enterprised. BI is tended to focuse on a specific information technology which can report the results of analysis more than DSS. So, in this case, the system like WINet is referred to BI application.
< Chap 1. Exercises 3 >
Data Warehousing supports Corporate Strategy at First American Corporation
1. What were the types of drivers for the DW/BI project in the company? The DW/BI project named Tailored Client Solutions which is comprised of four types of drivers (four components) namely: Excellent Client Information that knows the client better than anyone, the Flexible Product Line that provides what the clients need, a consistent sales and service approach centered on meeting clients need (help the clients to achieve their goal) and a distribution management approach focused on channel of choices that offers the clients preferred channels.
2. What strategic advantages were realized?
It’s the strategy that puts the customer at the center of everything the bank did (The Tailored Client Solutions project). The execution of this strategy need a data warehouse called VISION. Using this, some strategic advantages...