Decision Support & Business Intelligence Systems

Decision Support &
Business Intelligence
Systems
Lecturer: Assoc. Prof. Phạm Quốc Trung

School of Industrial Management, HCMUT
Course Introduction
• This course introduces the fundamental concepts and
technology practices of decision support and business
intelligence systems.
• Topics include
• DSS, Business Intelligence, Analytics, and Data Science,
• AI, Big Data, and Cloud Computing,
• Descriptive Analytics: Nature of Data, Statistical Modeling, and
Visualization, Business Intelligence and Data Warehousing,
• Predictive Analytics: Data Mining Process, Methods, and
Algorithms, Text, Web, and Social Media Analytics,
• Prescriptive Analytics: Optimization and Simulation,
• Future Trends in Analytics. 2
Main Contents
1 Introduction to DSS, BI & Analytics
2 Descriptive Analytics
3 Predictive Analytics
4 Prescriptive Analytics
5 Future Trends
3
Assessment Methods
• Total hours: 36 periods (12 lectures)

- Lectures: 27 periods
- Workshop/Project: 9 periods
• Assessment:
- Group project: 20%
- Exercises/Practice: 20%
- Final Exam: 60%
References
• Sharda, R., Delen, D., and Turban, E. (2018). Business

Intelligence, Analytics, and Data Science: A Managerial
Perspective. 4th Ed. Pearson Higher Ed.
• Murray, D. (2016). Tableau Your Data! Fast and Easy Visual
Analysis with Tableau Software. 2nd Ed. John Wiley & Sons, Inc.
• Kotu, V. & Deshpande, B. (2019). Data Science: Concepts and
Practice. 2nd Ed. Morgan Kaufmann.
• Turban, E., Aronson, J.E. , Liang, T.P. (2005). Decision Support
Systems and Intelligent Systems, Pearson, Prentice Hall.
• SIM-HCMUT (2020), Learning materials, Internal documents.
Business Intelligence, Analytics, and Data Science:
A Managerial Perspective, 4th Edition,
Ramesh Sharda, Dursun Delen, and Efraim Turban,
Pearson, 2017.
Source: https://www.amazon.com/Business-Intelligence-Analytics-Data-Science/dp/0134633288
Decision Support and Business Intelligence Systems, Ninth Edition,
Efraim Turban, Ramesh Sharda, Dursun Delen,
Pearson, 2011.
Source: https://www.amazon.com/Decision-Support-Business-Intelligence-Systems/dp/013610729X
Big Data, Data Mining, and Machine Learning: Value Creation for
Business Leaders and Practitioners,
Jared Dean,
Wiley, 2014.
Source: https://www.amazon.com/Data-Mining-Machine-Learning-Practitioners/dp/1118618041
Changing Business Environments and
Evolving Needs for Decision Support and
Analytics
1. Group communication and collaboration
2. Improved data management
3. Managing giant data warehouses and Big Data
khổng lồ
4. Analytical support
5. Overcoming cognitive limits in processing and
storing information
6. Knowledge management
7. Anywhere, anytime support
9
Source: Ramesh Sharda, Dursun Delen, and Efraim Turban (2017),

Business Intelligence, Analytics, and Data Science: A Managerial Perspective, 4th Edition, Pearson
Managers and Decision Making:
Why Computerized Support?
• Competition
• Speed
• The MANAGERS are always responsible

for decision making
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition. 10
Copyright 2001, Prentice Hall, Upper Saddle River, NJ
The Nature of Managers’ Work
[Make Decisions!] Mintzberg (1980) (Table 1.1) Roles
• Interpersonal
• Figurehead bù nhìn?
• Leader
• Liason Liaison: liên lạc viên
• Informational
• Monitor người giám sát
• Disseminator người truyền bá
• Spokesperson người phát ngôn
• Decisional
• Entrepreneur Doanh nhân
• Disturbance Handler Xử lý nhiễu
• Resource Allocator Bộ phân bổ tài nguyên
• Negotiator Người đám phán
Managers need information and use computers

to support decision making
Managerial Decision Making and
Information Systems
• Management is a process by which organizational

goals are achieved through the use of resources
• Resources: Inputs
• Goal Attainment: Output
• Measuring Success:
Productivity = Outputs / Inputs
Management
• Management is decision making
• The manager is a decision maker
• Now fast changing, complex environment
• Trial-and-error: not a great approach
• Factors affecting decision making (Figure 1.1)
• Technology / Information/Computers
• Structual Complexity / Competition
• International markets / Political Stability / Consumerism
• Changes, Fluctuations
Management Science
Scientific approach to automate
managerial decision making
1. Define problem
2. Classify problem
3. Construct mathematical model
4. Find and evaluate potential solutions
5. Choose and recommend a solution
Modeling: Transforming the real-world problem

into an appropriate prototype structure
Decision Making
• Decision Making: a process of choosing among

alternative courses of action for the purpose of
attaining a goal or goals
• Managerial Decision Making is synonymous with

the whole process of management (Simon, 1977)
15
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition,
Decision Making versus
Problem Solving
Simon’s 4 Phases of Decision Making
1. Intelligence
2. Design
3. Choice
4. Implementation
Decision making and problem solving

are interchangeable
16
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition,
Decision Support Systems (DSS)
(Gorry and Scott-Morton, 1971)
“interactive
computer-based systems,
which help decision makers
utilize data and models to
solve unstructured problems”
17

Decision Support Systems (DSS)
(Keen and Scott-Morton, 1978)
“Decision support systems couple the

intellectual resources of individuals with
the capabilities of the computer to
improve the quality of decisions.
It is a computer-based support system for
management decision makers who deal
with semistructured problems.”
18

Major DSS Characteristics
(DSS In Action 1.5: Houston Minerals Case)
• Initial risk analysis (management science)

• Model scrutiny using experience, judgment, and intuition
• Initial model mathematically correct, but incomplete
• DSS provided very quick analysis
• DSS: flexible and responsive. Allows managerial intuition and
judgment
Why Use DSS?
Perceived benefits
• decision quality
• improved communication
• cost reduction
• increased productivity
• time savings
• improved customer and employee satisfaction
Decision Support Technologies
Management Support Systems (MSS)
• Decision Support Systems (DSS)
• Group Support Systems (GSS)
• Enterprise (Executive) Information Systems (EIS)
• Enterprise Resource Planning (ERP) and Supply-Chain
Management (SCM)
• Knowledge Management Systems
• Expert Systems (ES)
• Artificial Neural Networks (ANN)
• Hybrid Support Systems
• Intelligent DSS
Evolution of Decision Support,
Business Intelligence, and Analytics
22

Evolution of Business Intelligence (BI) Chapter 1 • An Overview of Business Intelligence, Analytics, and D
Quer ying and

ETL
r epor t ing
M et adat a Dat a war ehouse

DSS
EIS/ESS
Financial Dat a mar t s Spr eadsheet s

r epor t ing (M S Excel)
OLAP
Digit al cockpit s
and dashboar ds
Business
Scor ecar ds and Int elligence
dashboar ds
Wor kﬂow
Aler t s and
not iﬁcat ions
Dat a & t ext

mining Pr edict ive Br oadcast ing
Por t als
analyt ics t ools
23

FIGU RE 1.9 Evolution of Business Intelligence (BI).
mining Predict ive Br oadcast ing
Por t als
analyt ics t ools
A High-Level Architecture of BI
FIGU RE 1.9 Evolution of Business Intelligence (BI).
Dat a Warehouse Business Analyt ics Performance and

Environment Environment St rat egy
Dat a M anagers/execut ives

Technical st af f Business user s
Sources
Build t he dat a w arehouse Access BPM st rat egies
Dat a
- Organizing warehouse
- Summarizing M anipulat ion, result s
- St andardizing
User int erface

Fut ure component : - Browser
Int elligent syst ems - Port al
- Dashboard
FIGU RE 1.10 A High-Level Architecture of BI. (Source: Based on W. Eckerson, Smart Companies in the 21st 24
Century: The Secrets of Creating Successful Business
Source: Intelligent
Ramesh Sharda, Solutions.
Dursun The Data
Delen, and Efraim TurbanWarehousing
(2017), Institute, Seattle, W A,
Architecture of Big Data Analytics
Big Data
Big Data Big Data Big Data Analytics
Sources Transformation Platforms & Tools Applications
Middleware Queries
* Internal Hadoop
Transformed MapReduce Big Data
Raw
* External Data Pig Analytics
Data Extract
Hive
Transform Reports
* Multiple Jaql
Load
formats Zookeeper
Hbase
* Multiple Data Cassandra OLAP
locations Warehouse Oozie
Avro
* Multiple Traditional Mahout
applications Format Others Data
CSV, Tables Mining
25
Source: Stephan Kudyba (2014), Big Data, Mining, and Analytics: Components of Strategic Decision Making, Auerbach Publications
Architecture of Big Data Analytics
Big Data
Big Data Big Data Big Data Analytics
Sources Transformation Platforms & Tools Applications
* Internal
* External
Raw
Data Mining
Extract
Middleware
Transformed
Data
Hadoop
MapReduce Big Data
Pig Analytics
Queries
Data
Big Data
Hive
Transform Reports
* Multiple Jaql
Load
formats Zookeeper
Hbase
Data
Analytics
* Multiple Cassandra OLAP
locations Warehouse Oozie
Avro
* Multiple Traditional Mahout
Data
Applications
applications Format Others
CSV, Tables Mining
26
Source: Stephan Kudyba (2014), Big Data, Mining, and Analytics: Components of Strategic Decision Making, Auerbach Publications
Analytics
27
Three Types of Analytics
28

Three Types of Business Analytics
• Prescriptive Analytics
• Predictive Analytics
• Descriptive Analytics
Source: Thomas H. Davenport, "Enterprise Analytics: Optimize Performance, Process, and Decisions Through Big Data", FT Press, 2012 29
Three Types of Business Analytics
Optimization “What’s the best that can happen?” Prescriptive

Analytics
Randomized Testing “What if we try this?”
Predictive Modeling / “What will happen next?”

Predictive
Forecasting
Analytics
Statistical Modeling “Why is this happening?”
Alerts “What actions are needed?”
Query / Drill Down “What exactly is the problem?” Descriptive

Analytics
Ad hoc Reports / “How many, how often, where?”
Scorecards
Standard Report “What happened?”
Source: Thomas H. Davenport, "Enterprise Analytics: Optimize Performance, Process, and Decisions Through Big Data", FT Press, 2012 30
Analytics Ecosystem
31

Job Titles of Analytics
32

A Data to Knowledge Continuum
33

Business Intelligence (BI) Infrastructure
34
Source: Kenneth C. Laudon & Jane P. Laudon (2014), Management Information Systems: Managing the Digital Firm, Thirteenth Edition, Pearson.
Business Intelligence and Data Mining
Increasing potential
to support
business decisions End User
Decision
Making
Data Presentation Business

Analyst
Visualization Techniques
Data Mining Data
Information Discovery Analyst
Data Exploration
Statistical Summary, Querying, and Reporting
Data Preprocessing/Integration, Data Warehouses

DBA
Data Sources
Paper, Files, Web documents, Scientific experiments, Database Systems 35
Source: Jiawei Han and Micheline Kamber (2006), Data Mining: Concepts and Techniques, Second Edition, Elsevier
Business Insights
with
Social Analytics
36
Analyzing the Social Web:
Social Network Analysis
37
Jennifer Golbeck (2013), Analyzing the Social Web, Morgan Kaufmann
38
Source: http://www.amazon.com/Analyzing-Social-Web-Jennifer-Golbeck/dp/0124055311
AI
Challenge
Champion 39
Short Text Conversation
(NTCIR-13 STC2)
Retrieval-based
40
Source: http://ntcirstc.noahlab.com.hk/STC2/stc-cn.htm
Short Text Conversation
(NTCIR-13 STC2)
Generation-based
41
Source: http://ntcirstc.noahlab.com.hk/STC2/stc-cn.htm
Summary
• This course introduces the fundamental concepts and
technology practices of DSS & BIS.
• Topics include
• DSS, Business Intelligence, and Analytics, AI, Big Data, and
Cloud Computing,
• Descriptive Analytics: Nature of Data, Statistical Modeling, and
Visualization, Business Intelligence and Data Warehousing,
• Predictive Analytics: Data Mining Process, Methods, and
Algorithms, Text, Web, and Social Media Analytics,
• Prescriptive Analytics: Optimization and Simulation,
• Future Trends in Analytics. 42

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Decision Support &

Lecturer: Assoc. Prof. Phạm Quốc Trung

1 Introduction to DSS, BI & Analytics

• Total hours: 36 periods (12 lectures)

• Sharda, R., Delen, D., and Turban, E. (2018). Business

Source: Ramesh Sharda, Dursun Delen, and Efraim Turban (2017),

• The MANAGERS are always responsible

• Disseminator người truyền bá

• Spokesperson người phát ngôn

• Disturbance Handler Xử lý nhiễu

• Resource Allocator Bộ phân bổ tài nguyên

• Negotiator Người đám phán

Managers need information and use computers

• Management is a process by which organizational

Modeling: Transforming the real-world problem

• Decision Making: a process of choosing among

• Managerial Decision Making is synonymous with

Simon’s 4 Phases of Decision Making

Decision making and problem solving

Source: Ramesh Sharda, Dursun Delen, and Efraim Turban (2017),

“Decision support systems couple the

Source: Ramesh Sharda, Dursun Delen, and Efraim Turban (2017),

(DSS In Action 1.5: Houston Minerals Case)

• Initial risk analysis (management science)

Source: Ramesh Sharda, Dursun Delen, and Efraim Turban (2017),

Quer ying and

M et adat a Dat a war ehouse

Financial Dat a mar t s Spr eadsheet s

Dat a & t ext

Source: Ramesh Sharda, Dursun Delen, and Efraim Turban (2017),

Dat a Warehouse Business Analyt ics Performance and

Dat a M anagers/execut ives

User int erface

Source: Ramesh Sharda, Dursun Delen, and Efraim Turban (2017),

Optimization “What’s the best that can happen?” Prescriptive

Predictive Modeling / “What will happen next?”

Alerts “What actions are needed?”

Query / Drill Down “What exactly is the problem?” Descriptive

Standard Report “What happened?”

Source: Ramesh Sharda, Dursun Delen, and Efraim Turban (2017),

Source: Ramesh Sharda, Dursun Delen, and Efraim Turban (2017),

Source: Ramesh Sharda, Dursun Delen, and Efraim Turban (2017),

Data Presentation Business

Data Preprocessing/Integration, Data Warehouses

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