Course summary

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Business intelligence (chapter 1) The advent of low-cost data storage technologies and the wide availability of Internet connections have made it easier for individuals and organizations to access large amounts of data. Business intelligence may be defined as a set of mathematical models and analysis methodologies that exploit the available data to generate information and knowledge useful for complex decision-making processes. The main purpose of business intelligence systems is to provide knowledge workers with tools and methodologies that allow them to make decisions that are: • effective: The application of rigorous analytical methods allows decision makers to rely on information and knowledge which are more dependable; turning to formal analytical methods forces decision makers to explicitly describe both the criteria for evaluating alternative choices and the mechanisms regulating the problem under investigation; the ensuing in-depth examination and thought lead to a deeper awareness and comprehension of the underlying logic of the decision-making process. • timely: rapidly react to the actions of competitors and to new market conditions is a critical factor in the success or even the survival of a company. Let’s now define some concepts: Data: generally, data represent a structured codification of single primary entities, as well as of transactions involving two or more primary entities. Information: information is the outcome of extraction and processing activities carried out on data, and it appears meaningful for those who receive it in a specific domain. Knowledge: information is transformed into knowledge when it is used to make decisions and develop the corresponding actions. Knowledge can be extracted from data both in a passive way, through the analysis…