Business Intelligence and Analytics

Course Overview

• Focus on generating intelligence for business.
• Distinction between business done with intelligence and analytics vs. without.
• Importance of intelligence and analytics in business.

Understanding Intelligence

• Definition of Intelligence: A complex concept often associated with IQ (Intelligence Quotient).
• Intelligence in business context: Applying intelligence to business decisions.
• Business Intelligence (BI): The role of intelligence in business decision-making.

Indicators of Intelligence

• Observing behaviors of intelligent vs. non-intelligent individuals.
• Learning from the environment is a key aspect of intelligence.
• Example: Birds making nests without learning from their environment; human learning through experiences.

Role of Intelligence in Business

• Essential for decision making.
• Intelligent decisions are informed decisions, contrasting with uninformed or random decisions.
• Informed Decision: Decisions based on collected information, rather than random choices.
• Business intelligence as a capability for making informed decisions in various management levels.

Importance of Data in Business Intelligence

• Data is seen as a crucial resource for decision-making.
• Data-Driven Decisions: Recognized trend in business for several decades.
• Business Intelligence and Analytics: Key for making informed business decisions.
• BI includes converting data into useful information.

The Concept of "Data as Oil"

• Metaphor of Data as Oil: Data fuels businesses similarly to oil for traditional companies.
• Companies like Amazon, Google, and Facebook utilize data to drive operations and strategies.
• Google's Business Model: Connects users with advertisers using data from user searches.
• Value generated from data includes targeted advertising and user profiling.

User-Generated Data

• Users provide data through interactions (search keys, account information).
• Platforms curate this data to provide valuable insights back to users.
• Curation Role: Platforms ensure reliable, accurate information through algorithms and content editing.

Case Studies: Acquisitions in Digital World

• Facebook's Acquisition of WhatsApp (2014): Acquired for $22 billion despite no revenue, due to strategic value and data potential.
• Microsoft's Acquisition of LinkedIn (2016): High valuation due to rich professional data useful for business connections.
• Both acquisitions highlight the growing importance and value of data in business.

Conclusion

• Data is a vital resource for modern businesses, influencing decision-making and strategic direction.
• Understanding and leveraging business intelligence and analytics can significantly enhance business capabilities.