CMT423/CMT327 – Decision Support & Business Intelligence Systems

Session 2010/2011
School of Computer Sciences, Universiti Sains Malaysia

Assignment 1
Instructions:
• This assignment must be done in groups of 2 to 4 students. Only important points are required. No
complete sentences are required in this initial assignment.
• You are supposed to apply all possible concepts and knowledge you have learned. You are also
encouraged to look for possible missing links from reference books, articles, white papers and
technical/business reports, as well as other references from the Internet.
• You can quote any useful material, but you must record and cite them in the References at the end
of your report.
• You are required to upload the softcopy of the completed assignment through the e-Learning
portal.
• The deadline for this assignment is 28th Feb 2011

1. Search the Web and briefly explain the following terms:

1.1 Information overload

Information Overload is an increasing problem in the workplace and in life in general nowadays. People
who learn to deal with it effectively will have a major advantage in the next few years.

Information Overload is when you are trying to deal with more information than you are able to process to
make essential decisions. The result occurs either when you either delay making decisions, or that you
make the wrong decisions.

It is now common already to be getting too many e-mails, reports and incoming messages to deal
effectively.

Some of the causes of information overload are include:

• Access to the Web are widespread

• The ease of sending e-mail messages to large numbers of people at a time.

• As information can be duplicated for free easily, there is no variable cost in producing more
copies of information – people send reports and information to people who may need to know,
rather than definitely need to know at real time.

• Poorly created information sources, which:

o are not simplified or filtered to make the context shorter and better.

o are not written clearly, so that people have to spend more time to understand them
accurately.

o contain a lot of factual errors or inconsistencies – requires further research on it.

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 CMT423/CMT327 – Decision Support & Business Intelligence Systems
Session 2010/2011
School of Computer Sciences, Universiti Sains Malaysia

1.2 Major similarities and differences between DSS and BI

Business Intelligence Decision Support System

Business Intelligence (BI) is a broad
category of applications and
technologies for gathering, storing,
analyzing, and providing access to
data to help enterprise users make
essential business decisions easily.
A decision support system (DSS) is a
computer program application that
analyzes business data and presents it
so that users can make business
decisions easily.

The similarity between them is “making business decisions”, and

both concepts are developed to make these decisions in a better and comfortable
way. The other similarity between them is they both involve is decision making “based on data”.
The difference are a DSS program built for a specific
purpose such as scheduling system for a specific company and decision support combines architecture,
databases (or data warehouses),
analytical tools, and applications

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 CMT423/CMT327 – Decision Support & Business Intelligence Systems
Session 2010/2011
School of Computer Sciences, Universiti Sains Malaysia

1.3 Business analytics

The application of models directed to

business data and business analytics
involves using DSS tools, especially
models, in assisting decision makers. It
also essential in OLAP/DSS

1.4 OLAP

OLAP (Online Analytical Processing) is a method to provide end users access to large amounts
of data in an intuitive and rapid manner to assist with deductions based on investigative
reasoning

1.5 Knowledge Representation

Knowledge Representation (KR) been considered as one of the principal elements of Artificial
Intelligence, and a critical part of all problem solving process. The subfields of KR range from
the purely philosophical aspects of epistemology to the more practical problems of handling
large amounts of data effectively. This varsity is unified by the central problem of encoding
human knowledge - in all its forms - in such a way that the knowledge can be utilized. This goal
is might best summarized in the Knowledge Representation Hypothesis:

1.6 Next generation data mining approaches, techniques and tools

There is now research at various laboratories on privacy

Enhanced and sensitive data mining approaches such as Agrawal at IBM Almaden,
Gehrke at Cornell University and Clifton at Purdue University. The idea here is to
continue with mining but at the same time enhance privacy as much
as possible. Not all approaches to privacy enhanced data mining are
similar. Researchers are taking various approaches to enhance such data
mining. Many assume that privacy enhanced data mining may
be time consuming and may not be scalable.

2. Write short notes for the following terms:

2.1 Data mining

Datamining is the process of processing huge volumes of data which usually stored in a
database, searching for patterns and relationships within data. Retail outlets which use
datamining might discover that many who buy beer also buy diapers. They may then increase
sales by positioning the two items two together.

2.2 Benefits of a model

• emphasizes access to and manipulation of a statistical, financial, optimization, or simulation

model.
• Use data and parameters provided by users to assist decision makers in analyzing a situation;
they are not necessarily data-intensive.

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 CMT423/CMT327 – Decision Support & Business Intelligence Systems
Session 2010/2011
School of Computer Sciences, Universiti Sains Malaysia

2.3 Suboptimization

Definition
Situation where a process, procedure, or system yields less than the best possible outcome or
output, caused by a lack of best possible coordination between varios components, elements and
parts.

2.4 Design phase of decision-making process

The second decision-making phase, which involves finding possible ways in decision making
and assessing their contributions

2.5 Heuristics

Heuristics is the application of experience-derived knowledge to a problem and is sometimes

used to describe software that filters messages likely to contain a computer virus or other
malicious content. A heuristic is pronounced as hyu-RIS-tik and from the Greek "heuriskein"
meaning "to discover" is a "rule-of-thumb." Heuristics software looks for known sources,
commonly-used text phrases, and transmission or content patterns that experience has shown to
be linked with e-mail containing viruses.

3. Write short notes for the following terms:

3.1 Corporate (enterprise) portal

Is an internal Web site (intranet) that provides proprietary, enterprise-wide information to company
employees as well as access to selected public Web sites and vertical-market Web sites such as
suppliers, and vendors. It includes a search engine for internal documents as well as the ability to
customize the portal page for different user groups. It is the internal equivalent of the general-purpose
portal on the Web site.

3.2 Wiki and wikilog.

A wiki is a website that allows the making and editing of any number of interlinked web pages
via
web browser using a simplified markup language or a WYSIWYG text editor. Wikis are typical
powered by wiki software and are often used to create collaborative works. Examples include
community websites, corporate intranets, knowledge management systems, and note services.
The
software can also be used for personal note taking.

WikiLog is an attempt to synthesize the best aspects of WikiWikis and WebLogs.

3.3 Characteristics of Groupwork

– A group performs a task such as decision making.
– Members may be located in a different places
– Members may work at different times

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 CMT423/CMT327 – Decision Support & Business Intelligence Systems
Session 2010/2011
School of Computer Sciences, Universiti Sains Malaysia

– Members may work for the same organization or for different organizations
– A group can be permanent or temporary to be formed
– A group can be at one managerial level or can span several levels of managerial.

3.4 Potential losses of group meetings

• Effectiveness of the meeting

• Various idea conflicts
• Conclusion may support a particular party

3.5 Limitations of the initial GDSS software

• reduction in ability to show statistically significant

results. A better picture would be obtained from a much larger sample, but the limits of
time for this initial study prevented this study. Using the researchers' own collections as the source
of the articles was convenient, and, though the researchers have a wide collection of representative
elements of the GDSS literature.
• they are bound to have some bias in this GDSS softwares.

4. Many new projects or ventures fail. Briefly explain the main reasons for such failures.

1. Begin business for the wrong reasons.

If the sole reason would be starting own business be that would want to make a lot of money
or if the person think he could spend some more time with the family by having own business.
2. Poor Management
Many has reported on business failures cites poor management as the number one reason for
failure. New business owners frequently lack relevant business and management expertise in
areas such as finance, purchasing, selling, production, and hiring and managing employees
efficiently. If they recognize what they don't do well, and seek help, business owners may
soon face disaster. They must also be educated and alert to fraud, and put into place measures
to avoid disaster.
Neglect of a business activities can also be its downfall. Proper care must be taken to
regularly study, organize, plan and control all activities of its operations. This includes the
continuing study of market research and customer data, an area which may be more prone to
disregard once a business has been established sincerely.

A successful manager is also a good leader who creates a work climate that encourages
productivity of company. He or she has a skill at hiring competent people, training them and
is able to delegate them. A good leader is also skilled at strategic thinking, able to make a
vision a reality, and able to confront change, make transitions, and envision new possibilities
for the future outcome.

3. Insufficient Capital

A common fatal mistake for many failed businesses is having insufficient operating funds
for the company. Business owners underestimate how much money is needed and they
are forced to close before they even have had a fair chance to succeed in it. They also
may have an unrealistic expectation of incoming revenues from sales of company.

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CMT423/CMT327 – Decision Support & Business Intelligence Systems
Session 2010/2011
School of Computer Sciences, Universiti Sains Malaysia

It is imperative to ascertain how much money your business requires; not only the costs
of starting, but the costs of staying in business always. It is important to take into
consideration that many businesses take a year or two to get going effectively. This
means you will need enough funds to cover all costs until sales can eventually pay for
these costs of it.

4. Location

Location is critical to the success of the business. A good location may enable a struggling
business to ultimately survive and thrive; a bad location could spell disaster to even the best-
managed enterprise.

Some factors to consider about:

• Where the customers are

• Traffic, accessibility and parking

• Location of competitors company

• Condition and safety of the building

• Local incentive programs for business start-ups in specific targeted areas of business.

5. Lack of Planning

Person has ever been in charge of a successful major event knows that were it not for their careful,
methodical, strategic planning and hard work success would not have followed. The same could
be said of most business to be successes.

It is crucial for all businesses to have a business plan. Many small businesses fail because of
fundamental shortcomings in business planning. It must be realistic and based on accurate, current
information and educated projections for future.

Components may include:

• Description of the business, vision, goals, and keys to success

• Work force needed

• Potential problems and solutions for it

6. Overexpansion

leading cause of business failure, overexpansion often happens when business owners fail to
success with how fast they can expand their business. A focus on slow and steady growth is
optimum. Many a bankruptcy has been caused by rapidly expanding companies.

But at the same time, you do not want to repress growth. Once you have an established solid
customer base and a good cash flow, let your success help you set the right measured pace slowly.

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CMT423/CMT327 – Decision Support & Business Intelligence Systems
Session 2010/2011
School of Computer Sciences, Universiti Sains Malaysia

Few indications that an expansion may be warranted include the inability to fill customer needs in
a timely basis, and employees having difficulty keeping up with production demands.

If expansion is warranted after carefully review, research and analysis, identify what and who you
need to add in order for your business to grow fast. Then with the right systems and people in
place, you can focus on the growth of your business accurately, not on doing everything in it
yourself.

7. No Website

If you have a business today, you need a website to publicise.

At the very least, every business should have a professional looking and well-designed website
that enables users to easily find out about their business and how to avail themselves of their
products and services provided. Later, additional ways to generate revenue on the website can be
added such as selling ad space, drop-shipping products, or recommending affiliate products.

If you don't have a website, you'll most likely be losing business to those that do. And make sure
that website makes your business look good, not bad you want to increase profit, not decrease
them.

When it comes to success of any new business, you the business owner are ultimately the
"secret" to the success. For many successful business owners, failure was not an option. Armed
with drive, determination, and a positive mindset, these individuals view any setback as only an
opportunity to learn and grow steadily. Most self-made millionaires possess only average
intelligence. What sets them apart is their openness to new knowledge and their willingness to
learn whatever it takes to succeed in bussiness.

=ooo0oo=

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