Books Read: “Seven Methods for Transforming Corporate Data into Business Intelligence”, Dhar, Stein   Leave a comment

The starting point for this book is intelligence density. Intelligence density is a measure of the useful decision support information available.

Dhar and Stein posit a 4 quadrant stretch plot to facilitate the understanding:
– Quadrants:
  – Q1: accuracy, explainability, response speed
  – Q2: scalability, compactness, flexibility, embeddability, ease of use
  – Q3: tolerance for complexity, tolerance for noise in data, toleance for sparse data, learning curve
  – Q4: development speed, independence from experts, computing ease
– Dimensions:
  – Q1 & Q2: Model Related
  – Q3 & Q4: Organisation Related
  – Q1 & Q3: Quality Related
  – Q2 & Q4: Constraint Related

So, the 7 methods are:
– Data driven decision support
– Genetic algorithms: evolving solutions
– Neural networks: simulating the brain to solve problems
– rule-based systems: putting expert reasoning in a box
– fuzzy logic: dealing with linguistic ambiguity
– case-based reasoning: solving problems by analogy
– machine learning: deriving rules from data

As they highlight, utilising the correct method requires:
– an understanding of the range of tools & techniques available to model business problems
– a business-oriented methodology for developing decision support systems

For me, whilst all a bit theoretical and, at this stage, not applicable to my work situations, is an important piece of background information on the thinking behind business intelligence and decision support systems.

Posted February 21, 2013 by terop in Books Read, ICT Strategy, Innovation

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