Unit 3: Using Information for Decision-Making
Data is everywhere, but how can an organization leverage it for competitive advantage? The field of business intelligence studies how organizations can get the right information into the hands of the right decision makers. This unit begins by giving you an overview of how decisions are made and how information technology plays a role. You will then review different ways that information technology is used to help organizations make effective decisions: business intelligence, data warehousing, and data mining.
Completing this unit should take you approximately 5 hours.
Upon successful completion of this unit, you will be able to:
- explain the concept of business intelligence;
- compare and contrast system design methodologies; and
- analyze how data warehousing and data mining can be used as part of an organization's strategy.
3.1: The Decision-Making Process
Read Chapter 8 for a discussion of how business organizations make decisions and the role information technology plays in decision making. Consider the following questions as you read: What is the process that uses technology to make automated decisions? Consider system input, decision-making algorithms, and output. How does an organization track the decisions made by the system?
3.2: Business Intelligence
Read sections 11.2 through 11.4 to more fully understand how information systems can enable better decision making. Complete the exercises at the end of each section and record your answers to each question in your notes.
This chapter gives the practitioner's view of how business intelligence can be used. In your notes, identify at least one key business process/activity that is well-suited for a business intelligence application. Complete the exercises at the end of each section and record your answers to each question in your notes.
3.3: Data Warehousing
Read this short article, focusing on the diagram about how data warehouses are constructed. Take some time to jot down answers to the following questions: What is a data warehouse? How does it differ from a database? What are the key steps in constructing a data warehouse?
Read this chapter until you get to the heading "8.9 Search Engines, Ad Networks, and Fraud", then stop. Focus on how data warehousing allowed Google to become the giant search engine it is today. Think about the scope and scale of the server farm that is necessary for Google to support the collection and analysis of all the data that it collects.
3.4: Data Mining
As you read this article, write down your notes on the following questions: What is data mining? How is it different from a data warehouse? What is the difference between data mining and information collection?
This section explores how data warehouses and data mining work together. What types of reports and tools help transform data into information and data sets into underlying trends?
Unit 3 Assessment
- Receive a grade
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.