1. Quiz 5

2. What process did Audi improve by utilizing business intelligence?
The preparation of financial statements for investors
The automotive assembly line
The transportation of automobiles from German factories to American dealerships
Development of marketing programs for entry into the Chinese market
None of these
Answer: The automotive assembly line

3. As an operations manager, what issues must you coordinate when building Audi automobiles?
Supplier delivery
Labor union contracts
Out-of-stock part status
Shift production quotas
All of these
Answer: All of the above

4. In the Frank Russell Company case study, what was the Picasso Solution?
A. Development of an intranet site where employees could easily access data and analyze trends
B. Development of an internet site where customers could access their accounts on-line
C. Development of a marketing program to increase market share
D. Development of an automated mechanism to report trades to the Internal Revenue Service
E. None of these
Answer: Development of an intranet site where employees could easily access data and analyze trends

5. What key information systems concept was a foundation in both the Picasso and Einstein Solutions at the Frank Russell Company?
RAID 5 Disk Storage
Microsoft Access
Online Transaction Processing
Online Analytical Processing
None of these
Answer: Online Analytical Processing

6. What was CompUSA’s primary goal when building their business intelligence solution?
Process foreign exchange transactions from their new stores in Mexico
Decrease shoplifting losses
Reduce employee salary expense
Greater detailed sales information for management
None of these
Answer: Greater detailed sales information for management

7. What was one key obstacle for CompUSA when building their business intelligence solution?
Credit card transactions were processed only once a day
Cash transactions could not be tracked by product
Disparate point-of-sale systems within each store
Translating sales information from Spanish into English
None of these
Answer: Disparate point-of-sales systems within each store

8. What country is home to Disco S.A.?
United States
Argentina
China
Chile
United Kingdom
Answer: Argentina

9. What was Disco S.A.’s primary goal when building their business intelligence solution?
Better identify and reward frequent/loyal customers
Reduce inventory carrying costs by centralizing distribution
Decrease import tariffs by identifying locally produced goods
Increase sales by identifying potential new retail locations
None of these
Answer: Better identify and reward frequent/loyal customers

10. What market does Cascade Designs serve?
Luxury cooking goods for professional chiefs
High school and college team athletic wear
Sustainable timber harvesting in the Pacific Northwest
Outdoor gear for camping and hiking
None of these
Answer: Outdoor gear for camping and hiking

11. What was Cascade Designs primary goal when building their business intelligence solution?
Implement a new retail sales system to better track product trends
Implement a national marketing campaign to increase brand awareness
Implement an ERP system to consolidate a loose collection of stand-alone applications
Implement a new human resources system to manage their steadily increasing employee population
None of these
Answer: Implement an ERP system to consolidate a loose collection of stand-alone applications

12. BI Case Studies

13. By Tomorrow Monday, February 22nd – Guest Speaker
Brian Cloud – Casino Operations Manager
Questions you’d like to ask Brian
them by this Thursday at noon to

14. For Friday Friday recitations in KOBL 320 or KOBL 380
Section 101: 9:00 – 9:50 AM in KOBL 380 – Noah
Section 102: 10:00 – 10:50 AM in KOBL 380 – Whitney
Section 103: 11:00 – 11:50 AM in KOBL 380 – Whitney
Section 104: 12:00 – 12:50 PM in KOBL 320 – Jason
Section 105: 12:00 – 12:50 PM in KOBL 320 – Addison
Section 106: 1:00 – 1:50 PM in KOBL 320 – Vimi
Section 107: 1:00 – 1:50 PM in KOBL 320 – Chris
Section 108: 2:00 – 2:50 PM in KOBL 320 – Nhan
Section 109: 2:00 – 2:50 PM in KOBL 320 – Chris
Section 110: 3:00 – 3:50 PM in KOBL 320 – Addison
Bring your Process Mapping books to recitation

15. For Next Week
Read
Read Pages of Business Intelligence: Making Better Decisions Faster
Role of Gambling Media Exposure in Influencing Trajectories Among College Students – Located on CULearn in the Additional Readings Folder
Quiz 6 next Wednesday covers these readings

16. One Week from Monday Midterm on Monday, March 1st 7:00 – 8:30 PM
CHEM140

17. Audi Background Sell premium ‘made on demand’ cars
Each car manufactured to individual customer specs
Dealership data vs. sell through data
Customer satisfaction survey led to search for data and dedication to BI

18. Audi Challenges No real time info on customer
No real time info or communication between shifts – can’t inform each other of bottlenecks and delays
Bottleneck = costly stoppage in assembly
Delays= come from everything behind the bottleneck
Poor efficiency

19. Solution/Benefits- Real Time Info
Audi
Solution/Benefits- Real Time Info
Simulation – allows ‘what if’ and ad-hoc analysis
Shows necessary adjustments that need to be made in real time
Inventory Control
Increased labor distribution leads to increased efficiency
Better customer contacts
Last minute changes improve ‘made on demand’

20. CompUSA Background Out of the “bricks & mortar” business
Still can gain valuable experience
Apply to other “value added” retailers
Best Buy, Ultimate Electronics GolfSmith, etc.
Branching out of purely retail focus
Training
Corporate Sales Services
Tech Services

21. CompUSA
Challenges
Legacy systems provide limited information on sales, margins, etc.
OLTP system
No info/data on activities that affect the bottom-line
No effective sales relationships
No way to provide/implement corrective measures
Need to centrally manage info systems & bring data together

22. CompUSA Solutions/Benefits
Data Warehouse – centralized place for detailed sales info
Allows for drill-down to find patterns
Comparable views of sales and customers
Communication between upper and middle management
Flexibility for users to tailor ad hoc reports
More individual responsibility

23. CompUSA Solutions/Benefits
Took mountains of inaccessible data and transformed it into information that execs and management could use on a daily basis
Applied BI to advance day-to-day operations
Performance improvements
Data quality enhancements
Loss prevention
Productivity gains

24. Disco S.A. Background Leading supermarket chain in Argentina
Frequent buyer program - DiscoPlus
230 stores, 16,000 customers
Full-service vs. self-service models
Remember gas stations?
“Want more analytical, faster, and reliable information”

25. Disco S.A.
Challenges
Create value for the marketing department from the DiscoPlus program
Data warehouse needed to support data mining
Find patterns about their 16,000+ customers

26. Descriptive Data Mining
Segmentation/clustering put customers into distinct groups
Found relationship between demographics & behavior
Purchase Frequency = 7 days
Purchase amount = $275
Last purchase = 2 days
Purchase Frequency = 2 days
Purchase amount = $25
Last purchase = 1 day
Purchase Frequency = 14 days
Purchase amount = $10
Last purchase = 10 days

27. Predictive Data Mining
Urban?
Yes No
Married?
Age
Yes No
25 to 50
> 50
< 25
Platinum
Gold
Silver
Platinum
Silver

28. Cascade Designs Background Manufacturing in North America
Seasonality and balancing production and workforce
Many products with many non-substituted raw materials
Finished goods in wrong places or no finished goods

29. Cascade Designs Challenges Supply chain management
Responsibility in functional areas with IT support
Enterprise Resource Planning (ERP) system to coordinate all OLTP (transaction processing systems) / Centralization

30. Cascade Designs Solution/Benefits
Constantly updated finished goods inventory
Activity Based Costing / know both fixed and variable costs for each product
Minimized raw material costs
“Self serve” for needed information (front-end tools)
“Fired” customers