Solution Manual For Using Mis 7 e 7th Edition 0133546438

Solution Manual for Using MIS, 7/E 7th Edition :
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Solution Manual for Using MIS, 7/E 7th Edition : 0133546438
Kroenke - Using MIS 7h Ed - Instructor’s Manual
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Business Intelligence
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Systems
LEARNING OBJECTIVES
• Explain how organizations use business intelligence (BI) systems.

• Describe the three primary activities in the BI process.
• Describe how organizations use data warehouses and data marts to acquire data.
• Describe how organizations use reporting applications.
• Describe how organizations use data mining applications.
• Explain how organizations use BigData applications.
• Describe the role of knowledge management systems.
• Explain the alternatives for publishing BI.
• Discuss the future of BI systems in 2024.
CHAPTER OUTLINE
• How do organizations use business intelligence (BI) systems?

o How do organizations use BI?
o What are typical BI applications?
• What are the three primary activities in the BI process?
o Using business intelligence to find candidate parts at AllRoad
• How do organizations use data warehouses and data marts to acquire data?
o Problems with operational data
o Data warehouses versus data marts
• How do organizations use reporting applications?
o Basic reporting operations
o RFM analysis
o Online analytical processing (OLAP)
• How do organizations use data mining applications?
o Unsupervised data mining
o Supervised data mining
o Market-basket analysis
o Decision trees
• How do organizations use BigData applications?
o MapReduce
o Hadoop
• What is the role of knowledge management systems?
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Kroenke - Using MIS 7th Ed - Instructor’s Manual 2
o What are expert systems?

o What are content management systems?
o What are the challenges of content management?
o What are content management application alternatives?
o How do hyper-social organizations manage knowledge?
o Hyper-social KM alternative media
o Resistance to hyper-social knowledge sharing.
• What are the alternatives for publishing BI?
o Characteristics of BI publishing alternatives.
o What are the two functions of a BI server?
• 2024?
Using MIS InClass 9

What Singularity Have We Wrought?
1. Discuss the meaning of “At each stage, the customer focus has pointed at the next
component.” Restate this phrase in the words of your own group.
Student responses will vary, but should convey the message that in each era, the
customers used the capabilities of that era’s IS component to work on improving the
capabilities of the next IS component. So, in the Hardware era, customers used
hardware to develop better and more capable software. Similarly, in the Software era,
customers used software to develop better and more useful data. And so forth…?
(LO: 14, Learning Outcome: Compare and contrast different business intelligence
systems, AACSB: Analytic Skills)
2. Do you agree that the focus of the BigData era is to influence behavior? What other
focus interpretations of today’s era are possible?
Claiming that the focus of the BigData era is to guide behavior may be true if you
take the perspective of the companies that are accumulating and analyzing that data.
They are trying to use that data to guide the behavior of their Web sites. Another
interpretation is a little different—the focus of the BigData era is to understand
behavior in the form of knowing very precisely how people behave and respond to
Web site content. A darker interpretation (not necessarily accurate) is that the focus of
the BigData era is to monitor behavior. (LO: 14, Learning Outcome: Compare and
contrast different business intelligence systems, AACSB: Analytic Skills)
3. Assume the next era computer industry will concern procedures and that the focus
will be on people. One possible focus is to Eliminate Jobs. If that is the focus, what
does it mean for business? For the economy? For you? Discuss your answers among
your group and report your conclusions to the rest of the class.
This focus would have many dire consequences. Students are likely to recognize the
negative effects on the economy as more people found themselves out of work, plus
will see their future job prospects dim. Business may find the efficiencies of this era

appealing, but if the economy falters, who will be able to buy business’s goods and
services? (LO: 14, Learning Outcome: Compare and contrast different business
intelligence systems, AACSB: Reflective Thinking Skills)
4. Rather than Eliminate Jobs, another possible focus of the procedural component is to
Enhance Human Life. Discuss ways in which that might happen. If it does, what
opportunities will it create for you? Discuss your answers among your group and
report your conclusions to the rest of the class.
This question should provoke some interesting discussion. What exactly do your
students identify as “enhancing human life”? Finding cures for all diseases?
Eliminating hunger? Overthrowing tyrants? (LO: 14, Learning Outcome: Compare
and contrast different business intelligence systems, AACSB: Reflective Thinking
Skills)
5. Working with your group, identify two or three other procedural focus statements
other than Eliminate Jobs or Enhance Human Life.
Student answers will vary. (LO: 14, Learning Outcome: Compare and contrast
different business intelligence systems, AACSB: Reflective Thinking Skills)
6. Of all the focus statements you’ve considered, choose the one you think is most likely.
Explain your choice. Using that statement, describe three business opportunities that
could lead to the Next_Big_Thing.
7. One important question is what happens after the People component- era? Where
does the arrow on the far right go? Ray Kurzweil developed a concept he calls the
Singularity which is the point at which computer systems become sophisticated
enough that they can adapt and create their own software and hence adapt their
behavior without human assistance. At that point, he claims that clouds of myriads of
computers working 24/7 will accelerate away from humanity and humans will
become, well, what? Work with your team and state what you think the consequences
of the singularity might be.
8. Given all of this, if there is a more exciting, important, and potentially rewarding
field than MIS today, state what it is.
USING YOUR KNOWLEDGE
9-1. Explain in your own words how Addison used Access to implement each of the five

criteria that she and Drew developed. Use Figures 9-5 through 9-10 in your answer.
Criterion 1: Provided by certain vendors (starting with just a few vendors that had
already agreed to make part design files available for sale)
Sales and customer data was extracted from AllRoad’s operational database and
combined into a single table by Addison. This table was filtered to include only those
vendors who had agreed to release 3D parts design files (see Figures 9-5 and 9-6).
Criterion 2: Purchased by larger customers (individuals and small companies would

be unlikely to have 3D printers or the needed expertise to use them)
Revenue, units and average price were summed for each customer (Figure 9-7).
From that, customers having more than $200,000 in revenue were selected (Figure 9-
8).
Criterion 3: Frequently ordered (popular products)
A selection criterion for number of orders was set to find products that were ordered
at least once a week (see Figure 9-9).
Criterion 4: Ordered in small quantities (3D printing is not suited for mass
production)
Average order size (units/number of orders) was added to the table as a calculated
field and then used to select orders having a size of less than 2.5 (see figure 9-9).
Criterion 5: Simple in design (easier to 3D print)
“Simple” was approximated by looking for parts that were inexpensive and
lightweight. Selection criteria were included for parts with a unit price of less than
$100 and a shipping weight of less than 5 lbs (see Figure 9-9). Final results are
shown in Figure 9-1-.
(LO: 2, Learning Outcome: Discuss best practices for using and managing databases,
AACSB: Analytic Skills)
9-2. Explain why the results in Figure 9-11 do not show promise for the selling of these
parts' designs. In light of these results, should Addison and Drew look at changing
their criteria? If so, how? If not, why not?
Figure 9-11 shows the parts that were selected as meeting the five criteria with those
parts’ sales data. This new information shows that these parts do not contribute much
to revenue. Given that the sale of 3D designs for these parts would generate even less
revenue, the sale of 3D designs does not seem to be a worthwhile venture financially.

It is never wrong to reconsider the assumptions made in the analysis; however,

Addison and Drew must be careful not to subconsciously select criteria that will give
them the results they would “like” to see.
AACSB: Reflective Thinking Skills)
9-3. Given the results in Figure 9-11, list three actions that AllRoad can take. Recommend
one of these actions and justify your recommendation.
• Move forward with plans to sell 3D parts designs. The previous analysis suggests
this is not a financially-optimal approach to take but AllRoad could continue on
this path
• Give the designs away as a goodwill gesture or PR tactic. AllRoad will not suffer
much in the way of lost revenue if it decides to offer the 3D designs for these
parts for free.
• Postpone the 3D printing venture. When 3D printing becomes a more widely
established technology there could be more demand for 3D parts designs.
Students’ recommendations will vary. Be sure that their justification for their choice
is based on logical assumptions.
AACSB: Reflective Thinking Skills)
9-4. Suppose you work at Costco or another major, national, big-box store, and you do a
market-basket analysis and identify the 25 pairs of items in the store that have the
highest lift and the 25 pairs of items that have the lowest lift. What would you do with
this knowledge? Costco (or your big-box store) doesn’t have salespeople, so up-
selling is not an option. What else might you do with information about these items’
lift? Consider advertising, pricing, item location in stores, and any other factor that
you might adjust. Do you think the lift calculations are valid for all stores in the
United States (or other country)? Why or why not? Are the 50 pairs of products with
the highest lift and lowest lift the best place to focus your attention? What other 50
pairs of products might you want to consider? Explain.
Lift shows how much the base probability increases or decreases when other products
are purchased. If we know items that have a high lift, we could do several things to
take advantage of that knowledge. For example, we could choose to run a sale and
advertise a discount on one of the items, knowing that the related item has a higher
probability of being purchased with the sale item. We could physically place the
items near each other in the store to make it even more likely they will be purchased
together. If we did have a special on one of the items, we would want to be sure to
have adequate supply of the related item. There would be little reason to take such
action on the items with the lowest lift. It seems likely that the lift calculations would
not be valid for all stores in the United States or other country. For example, in the
Northeast United States, we could find a high lift measure for ice scrapers and snow
shovels, which is not likely to hold true in Florida. In this scenario, where we do not
have salespeople who can utilize information about lift in direct selling, the best use
would be the high lift measures for promotional planning, inventory planning, and

store layout decisions. Another group of 50 pairs of products that should be

emphasized would be those products with the highest profit margins. (LO: 4,
Learning Outcome: Compare and contrast different business intelligence systems,
9-5. Describe a use for RFM analysis for AllRoad. Explain what you would do for
customers that have the following scores: [1,1,1], [3,1,1], [1,4,1], [3,3,1], and
[1,1,3].Is this analysis useful for AllRoad? Explain your answer.
RFM analysis can help AllRoad understand its customers better and identify
situations or trends that need attention.
[1,1,1] – A customer with this rating is in the highest group on Recent, Frequent, and
Money. This is a good regular customer and deserves the highest level of service to
reward his loyalty.
[3,1,1] – A customer with this rating is in the middle on Recent; high on Frequent and
Money. This customer is a valuable customer so some effort needs to be expended on
finding out why he has not been a recent customer. Was there any type of problem
that needs to be resolved so that the customer returns?
[1,4,1] – A customer with this rating is lower on Frequent; high on Recent and
Money. This customer is a valuable customer so some effort needs to be expended to
try and induce the customer to be a more frequent customer. A survey could help
pinpoint the issues.
[3,3,1] – This customer is in the middle on Recent and Frequent but is high on
Money. This customer needs to be induced to return since he spends a lot when he is
a customer. Possibly a “we’ve missed you” campaign along with a free shipping
coupon could entice the customer to return.
[1,1,3] – This is a Recent, Frequent, but lower-value customer. This customer is an
obvious target for upselling—try to entice him to buy higher value items.
9-6. Describe an application for market-basket analysis for the AllRoad. Explain how you
would use the knowledge that two products have a lift of 7. Explain how you would
use the knowledge that two products have a lift of .003. If they have a lift of 1.03? If
they have a lift of 2.1?
A company such as AllRoad sells a variety of parts for adventure vehicles. AllRoad
could use market-basket analysis. Lift shows how much the base probability
increases or decreases when other products are purchased. A lift of 7 indicates that
the base probability of purchasing one product increases seven times when the other
product is purchased. Buyers should be prepared to offer both products at the same
time. A lift of .003 indicates that the base probability of purchasing one product drops
dramatically when the other product is purchased. There is no sense trying to cross-
sell these products. If two products have a lift of 1.03, there is a very small positive
impact on the base probability of the first product if the second product is purchased.
The lift is small enough that cross-selling effort is probably not called for here. A lift
of 2.1 indicates that the base probability of purchasing a one product more than

doubles when the other product is purchased. Buyers should be prepared to offer
both items, perhaps as a package. (LO: 4, Learning Outcome: Compare and contrast
different business intelligence systems, AACSB: Analytic Skills)
9-7. Considering all of the BI techniques in this chapter, which would be most likely to
facilitate AllRoad’s competitive strategy? Explain your answer.
AllRoad’s competitive strategy is to be the one-stop shop in its market niche; in other
words, to have precisely the parts that customers need on hand. To accomplish this
strategy, it will need well-designed and reliable data mining systems as the
foundation of its business intelligence capabilities. Carrying a huge array of partsin
inventory is expensive, so AllRoad needs good data –mining capability to ensure it
has the right inventory on hand in the right amounts and to investigate alternatives to
carrying inventory (such as 3D printing). I do not think AllRoad is in a position to be
worrying about BigData yet. (LO: 4, Learning Outcome: Compare and contrast
9-8. Define the characteristics of BigData. Identify and describe three student-related
applications at your university that meet BigData characteristics. Describe patterns
and relationships that might be found within that data.
BigData is characterized by data collections that have huge volume, have rapid
velocity, and contain a great variety of data components. Students will think of
various student-related BigData applications at their universities. One example is the
data that is associated with the university Learning Management System (LMS), such
as BlackBoard. There is a wealth of data of various types that describe student usage
of the LMS. Exploration of this data could reveal insights into student usage patterns
of various types and could help course designers evaluate the use and value of
instructional media options and perhaps how they contribute to student performance.
COLLABORATION EXERCISE 9
Read Case Study 9 (pages 369-371) if you have not already done so. Undeniably, third-
party cookies offer advantages to online sellers. They also increase the likelihood that
consumers will receive online ads that are close to their interests; thus, third-party
cookies can provide a consumer service as well. But at what cost to personal privacy?
And what should be done about them? Working with your team, answer the following
questions:
1. Summarize the ways that third-party cookies are created and processed. Even though
cookies are not supposed to contain personally identifying data, explain how such
data can readily be obtained. (See question 9-12, page 371.)
When a person visits a Web site that contains content (usually ads) from other
organizations, those other organizations can instruct your browser to place a cookie
on your computer. So, you end up with a cookie from the site you visited plus cookies

from all other organizations that had content (ads) on that site. This addition of third
party cookies is done without your knowledge or permission. The first-party site you
visited may know quite a bit about you because you may have an account, be a
member, or have a subscription to that site. If the first-party site reveals to the
adserver company who you are, you are now personally known to the adserver
company and potentially to all of its client companies as well. (LO: 5, Learning
Outcome: Compare and contrast different business intelligence systems, AACSB:
Analytic Skills)
2. Numerous browser features, add-ins, and other tools exist for blocking third-party
cookies. Search the Web for block third-party cookies for xxx, and fill in the xxx with
the name and version of your browser. Read the instructions, and summarize the
procedures that you need to take to view the cookies issued from a given site.
A direct tracker-thwarting approach is to block third-party cookies in the first place.
To do so in IE8, click Tools > Internet Options > Privacy > Advanced. Select Block
under Third-party Cookies and click OK twice.
Firefox 3.6’s cookie settings are found under Tools > Options > Privacy. Uncheck
“Accept third-party cookies” and click OK.
In Google Chrome, click the wrench icon in the top-right corner of the browser,
choose Options, select Under the Hood in the left pane, click the “Content settings”
button next to Privacy, and check “Ignore exceptions and block third-party cookies
from being set.”
3. In large measure, ads pay for the free use of Web content and even Web sites
themselves. If, because of a fear of privacy, many people block third-party cookies,
substantial ad revenue will be lost. Discuss with your group how such a movement
would affect the valuation of Facebook and other ad-revenue-dependent companies.
Discuss how it would affect the delivery of free online content such as that supplied
by Forbes or other providers.
Students may have different opinions on the consequences of this. However, if

blocking of third-party cookies became the norm, it could definitely affect ad-revenue
dependent Web sites. (LO: 5, Learning Outcome: Compare and contrast different
business intelligence systems, AACSB: Analytic Skills)
4. Many companies have a conflict of interest with regard to third-party cookies. On the
one hand, such cookies help generate revenue and pay for Internet content. On the
other hand, trespassing on users’ privacy could turn out to be a PR disaster. As you
learned in your answer to question 2, browsers include options to block third-party
cookies. However, in most cases, those options are turned off in the default browser
installation. Discuss why that might be so. If sites were required to obtain your

permission before installing third-party cookies, how would you determine whether
or not to grant it? List criteria that your team thinks you would actually use (as
opposed to what the team thinks you should do). Assess the effectiveness of such a
policy.
The third-party cookie blocking settings are not the default in browsers because
currently a great deal of the value proposition of commerce on the Internet depends
on these cookies being created. If an opt-in model was used (as is currently done in
European Union countries), the users would be confronted with making a decision
about every third-party cookie request. Most users would not want to bother and
would find a way to accept all cookies automatically. For those users who do care
about potential privacy losses, a selection rule would have to be created that judges
the potential value of the cookie to me personally (it is from a site that I am intensely
interested in). (LO: 5, Learning Outcome: Compare and contrast different business
intelligence systems, AACSB: Analytic Skills)
5. The processing of third-party cookies is hidden; we don’t know what is being done
behind the scenes with the data about our own behavior. Because there is so much of
it and so many parties involved, the possibilities are difficult to comprehend, even if
the descriptions were available. And if your privacy is compromised by the
interaction of seven different companies working independently, which is to be held
accountable? Summarize consequences of these facts on consumers.
Many consumers are concerned about privacy issues but too quickly become
overwhelmed at the complexity of the Internet environment. It is so hard for the
average consumer to comprehend everything that is going on or could be going on
behind the scenes. As a result, many consumers just have a “whatever happens,
happens” kind of attitude. It is not that privacy doesn’t matter, just that many people
don’t really know what to do about it. (LO: 6, Learning Outcome: Compare and
contrast different business intelligence systems, AACSB: AACSB: Ethical
Understanding and Reasoning Abilities)
6. Summarize the benefits of third-party cookies to consumers.

Most Web users realize that the ads they see on sites are targeted specifically to them
based on the knowledge the sites and their advertising partners have collected about
them. The companies claim they don’t collect personally identifiable information—or
at least most of them state so. The success of their ads finances the “free” services on
the Web. (LO: 5, Learning Outcome: Compare and contrast different business
7. Given all you have learned about third-party cookies, what does your team think
should be done about them? Possible answers are a) nothing; b) require Web sites to
ask users before installing third-party cookies; c) require browsers to block third-
party cookies; d) require browsers to block third-party cookies by default, but enable
them at the users’ option; e) something else. Discuss these alternatives among your
team and recommend one. Justify your recommendation.

Student answers will vary. This question should generate some lively discussion.
systems, AACSB: AACSB: Ethical Understanding and Reasoning Abilities)
CASE STUDY 9
Hadoop the Cookie Cutter
9-9. Using your own words, explain how third-party cookies are created.
When a person visits a Web site that contains content (usually ads) from other
organizations, those other organizations can instruct your browser to place a cookie
on your computer. So, you end up with a cookie from the site you visited plus cookies
from all other organizations that had content (ads) on that site. This addition of third-
party cookies is done without your knowledge or permission. (LO: 6, Learning
Analytic Skills)
9-10. Suppose you are an ad-serving company, and you maintain a log of cookie data
for ads you serve to Web pages for a particular vendor (say Amazon).
a. How can you use this data to determine which are the best ads?
The best ads are those that result in clicks, so I would want to know the click rate
of the ads that have been served. (LO: 6, Learning Outcome: Compare and
b. How can you use this data to determine which are the best ad formats?
I would compare the click rate of ads that have been displayed in various formats
to determine which ad format resulted in the most clicks. (LO: 6, Learning
Analytic Skills)
c. How could you use records of past ads and ad clicks to determine which ads to
send to a given IP address?
Summarize the ads delivered and clicked by IP address. (LO: 6, Learning
Analytic Skills)
d. How could you use this data to determine how well the technique you used in your
answer to question c was working?
Evaluate the ads delivered and clicked on by that IP address over time and see if
there has been any pattern change. (LO: 6, Learning Outcome: Compare and
e. How could you use this data to determine that a given IP address is used by more
than one person?

Evaluate the click rate on ads by ad type. If there is a cluster of ads for
hunting/fishing; a cluster for recipes; and a cluster for a teenage heart-throb, there
are probably two parents with a teenage daughter in the household. (LO: 6,
Learning Outcome: Compare and contrast different business intelligence systems,
f. How does having this data give you a competitive advantage vis-à-vis other ad-
serving companies?
If I can demonstrate my success at placing ads that are clicked on my customers’
pages, I should be able to get more customers for my ad-placement services and
charge a higher rate for my services than can my competitors who cannot show
these results. (LO: 6, Learning Outcome: Compare and contrast different business
9-11. Suppose you are an ad-serving company, and you have a log of cookie data for
ads served to Web pages of all your customers (Amazon, Facebook, etc.).
a. Describe, in general terms, how you can process the cookie data to associate log
entries for a particular IP address.
I could summarize my log entries by IP address across all my ad sites rather than
just by a single ad site. (LO: 6, Learning Outcome: Compare and contrast
b. Explain how your answers to question 9-10 change, given that you have this
additional data.
By having the data for all ad sites I not only can look at the items described in
question 9-10, but can also compare across the ad sites and look for differences.
Does a particular ad format have a different click rate when displayed on an
Amazon page as compared to a Facebook page, for example? (LO: 6, Learning
Analytic Skills)
c. Describe how you can use this log data to determine users who consistently seek
the lowest price.
Since I can summarize my ad clicks by IP address, I can evaluate ad clicks for
similar products from different competing vendors. For example, if a particular
IP address clicks on an HP laptop ad, a Dell laptop ad, and a NewEgg.com ad,
that pattern suggests a user who is price-shopping for a laptop. (LO: 6, Learning
Analytic Skills)
d. Describe how you can use this log data to determine users who consistently seek
the latest fashion.
Since I can summarize my ad clicks by IP address, I can evaluate ad clicks for ads
grouped by type. When an IP address is clicking on a number of ads that are part

of my high fashion ad group, the pattern suggests a user who is interested in the
latest fashions. (LO: 6, Learning Outcome: Compare and contrast different
e. Explain why uses like those in c and d above are only possible with MapReduce
or a similar technique.
The massive quantity of data that must be analyzed to produce results for parts c
and d are really only computationally possible with MapReduce type parallel
processing techniques. (LO: 6, Learning Outcome: Compare and contrast
9-12. As stated, third-party cookies usually do not contain, in themselves, data that
identifies you as a particular person. However, Amazon, Facebook, and other first-
party cookie vendors know who you are because you signed in. Only one of them
needs to reveal your identity to the ad-server, and your identity can then be
correlated with your IP address. At that point, the adserver and potentially all of its
clients know who you are. Are you concerned about the invasion of your privacy that
third party cookies enable? Explain your answer.
Student opinions will vary on this question. In general, I have found that students are
not particularly concerned about loss of privacy. To generate discussion about this
topic, ask your students what information could be revealed about their private lives
once a name is actually linked to ad-clicking behavior. Would their behavior on the
computer change once they knew their name was known? (LO: 6, Learning Outcome:
Compare and contrast different business intelligence systems, AACSB: AACSB:
Ethical Understanding and Reasoning Abilities)
MyMISLab
9-13. Reflect on the differences between reporting systems, data-mining systems, and
BigData systems. What are their similarities and differences? How do their costs
differ? What benefits does each offer? How would an organization choose among
them?
Reporting systems, data-mining systems, and BigData systems are mechanisms for an
organization to produce value from its stored data. The three types of systems focus
on different data sets and do different things with the data they are designed to
analyze.
Reporting systems process mostly internal data and focus on compiling and
organizing data into meaningful information through relatively simple processing.
Data mining, on the other hand, processes internal and external data, and applies
complex statistical analyses to create insights that were previously unrecognized.
BigData systems are designed to process data collections that are huge, generated
rapidly, and include a wide variety of data types.
Reporting systems are more straightforward than the other types of systems and

Solution Manual for Using MIS, 7/E 7th Edition : 0133546438
therefore will probably cost the least to develop. Data mining systems will be
somewhat more costly than reporting systems because of the integration of external
data and the more complex statistical tools that are used in the analyses. BigData
systems are the most expensive because of the use of parallel processing and the need
for advanced technical knowledge to use BigData processing tools.
The benefits of each type of system tend to correspond to the system cost. Reporting
systems have fewer benefits than do data mining systems, and data mining systems
have fewer benefits than BigData systems. Each type of system, however, does
contribute real value for the purpose it has. To choose between the tools, the
organization should determine its most pressing need. For example, if managers in the
business are unable to get answers to their routine questions in an accurate,
meaningful and timely way, then clearly there should be an emphasis on developing a
reporting system. Once a reporting system is in place and providing value, then an
organization should consider developing its data mining capability. If the
organization is compiling BigData types of data collections, it will need BigData
processing systems to gain insights from that type of data resource. (LO: 6, Learning
Analytic Skills)
9-14. Suppose you are a member of the Audubon Society, and the board of the local
chapter asks you to help them analyze its member data. The group wants to analyze
the demographics of its membership against members’ activity, including events
attended, classes attended, volunteer activities, and donations. Describe two different
reporting applications and one data-mining application that they might develop. Be
sure to include a specific description of the goals of each system.
A variation of the RFM analysis could be performed that could provide rankings of
the members based on how recently donations were made, how frequently donations
were made, and donation amount. This analysis might suggest the best candidates to
target for fundraising activities. An OLAP system would enable members to be easily
viewed based on a number of measures and dimensions. This system would enable
the board to understand their members by forming groups based on a number of
characteristics. The data-mining technique of cluster analysis might be useful in
finding groups of similar members based on demographic data and activity and
donation records. (LO: 4 & 5, Learning Outcome: Compare and contrast different
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Kroenke - Using MIS 7h Ed - Instructor’s Manual

• Explain how organizations use business intelligence (BI) systems.

• How do organizations use business intelligence (BI) systems?

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o What are expert systems?

Using MIS InClass 9

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USING YOUR KNOWLEDGE

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Criterion 2: Purchased by larger customers (individuals and small companies would

Criterion 3: Frequently ordered (popular products)

Criterion 5: Simple in design (easier to 3D print)

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It is never wrong to reconsider the assumptions made in the analysis; however,

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store layout decisions. Another group of 50 pairs of products that should be

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Students may have different opinions on the consequences of this. However, if

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6. Summarize the benefits of third-party cookies to consumers.

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Kroenke - Using MIS 7th Ed - Instructor’s Manual 13

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