Predictive Analytics DSS Presentation - Youtube Link

How Data Mining Works

Data mining creates few model to identify patterns on attributes which is inscribed on dataset. Some of those patterns will create  “descriptive” results, whereas some pattern creates “Predictive” results.

Generally, data mining identifies four kind of main patterns: 

• Associations : groups same or similar events, for example a purchase of same item at supermarket.
• Predictions : forecast future events based on historical record. For example: predict future world cup winner based on winning streak pattern.
• Clusters :  groups objects based on known characters, for example create a customer differentiation based on purchase history.
• Sequential relationships : find a relation between events, for example :  predict a customer whom purchased a car will purchase spare parts a year later.

These general patterns are extracted from data manually for hundred years, but increased data volume on modern times demands  an automated approach. The automated (or semi – automated) approach which analyzes very large amount of dataset is called Data Mining.

What Is A Decision Tree?

A decision tree is a graph that uses a branching method to illustrate every possible outcome of a decision.

Decision trees can be drawn by hand or created with a graphics program or specialized software. Informally, decision trees are useful for focusing discussion when a group must make a decision. Programmatically, they can be used to assign monetary/time or other values to possible outcomes so that decisions can be automated. Decision Tree Software is used in data mining to simplify complex strategic challenges and evaluate the cost-effectiveness of research and business decisions. Variables in a decision tree are usually represented by circles.

Describe The Essential Definition of DSS

A decision support system (DSS) is a computer-based application that collects, organizes and analyzes business data to facilitate quality business decision-making for management, operations and planning. A well-designed DSS aids decision makers in compiling a variety of data from many sources: raw data, documents, personal knowledge from employees, management, executives and business models. DSS analysis helps companies to identify and solve problems, and make decisions.

Describe DSS-BI Connection

The Relationship of DSS with BI

Data from Data Warehouse, data repository, or source systems are being imported into Decision Supporting Systems. DSS is the equivalent synonym as MIS Management Information Systems. Most of imported data are being used in solutions like Data mining, Business Intelligence, and Controlling Business Intelligence as a specialized type of Business Intelligence. Business Intelligence is involved as a subsystem in Decision Supporting Systems – bigger system. Decision Supporting Systems include also decisions made upon individual data from external sources, management feeling, and various other data sources not included in business intelligence.