Business Intelligence & Analytics

 

Business Intelligence & Analytics

1. BI Definition
   1. Application for gathering, storing, analyzing, accessing data and help “Better Decision” for business
   2. Activities of decision support, query, reporting, online analytical processing (OLAP), statistical analysis, forecasting, and data mining
   3. Improve and optimize decision and performance
2. BA Definition
   1. Study of data through statistical and operations analysis
   2. Comprised of solutions used to build analysis model and simulations to create scenarios understand realities and predict future states
3. Big Data
   1. AI, Mobile, social communities, IoT
   2. Ability of traditional relational databases to capture, manage and process the data with low-latency
   3. Advanced analytics techniques against very large, and diverse dataset - structured and unstructured data
   4. Types
      1. Volume
      2. Variety
      3. Velocity
      4. Variability
      5. Complexity
   Financial Modeling
   1. Models Types
      1. Qualitatives models
         1. Expert Opinion: Internal and external to the firm
            1. 해석기반
            2. Can be — Review, press, or anything that comes with sentences
         2. Bias of author or modeler
         3. Heuristics often employed
            1. 복잡한 문제나 결정을 빠르게 선택하기 위해 사용되는 기법
            2. Rule of Thumb, educated guess, intuition
      2. Quantitative Model
         1. Assume relationship to a key factor and adjust forecast accordingly
         2. 숫자, 도형, 도표 등으로 나타낼 수 있는 것
         3. Example Types of Models
            1. Econometrics
               1. Y = A + L + K + e
         4. Linear Regres
            1. Using existing data to develop an estimation model for forecasting the future
            2. Must include variables
   2. First Step Regardless of Method
      1. Describe the data
         1. What do the data look like: scatter chart? Table of key stats?
      2. What are possible data characteristics?
         1. Think about factors that influence the data
         2. Trend, Seasonality, cycles, random variation such as war, COVID19…etc
   3. Linear regression
      1. Estimated equation: Y=a+bx+error
      2. 
   Firm and Supply chain
   1. Firm
      1. Derinition
         1. Alternative to the market coordination of economic activity
         2. Firm takes inputs and turn them into outputs via production process
         3. Firm chooses to use the most efficient mix of inputs based upon input price
         4. Firm is a giant information processor
      2. How firm organize
         1. Fianance
         2. Accounting
         3. Marketing
         4. HR
         5. Operations
   2. Chain
      1. Porter said: Value chain activities are comprised of two sub-components
         1. Physical
         2. Informational
      2. Definition
         1. Flow of materials, information, and services from raw material suppliers through factories and warehouses to the end customer
      3. Major components
         1. Upstream supply chain
         2. Internal supply chain
         3. Downstream supply chain
      4. IT and Supply chain
         1. IT can be used to enable efficient information flow between firms
   Changes to different economic costs
   1. Cost arise
      1. External Environment
         1. Transaction costs: Conducting transactions in the marketplace with business partners
         2. Operation cost
            1. Costs of producing products and service
            2. Distribution related cost
            3. Supply chain related cost
      2. Internal environment
         1. Agency cost
            1. Cost of contracts, enforcement, bad decisions
         2. Information cost