Itec 2201 Business Pi 18

415 Words2 Pages
Plug-In B18 Case Study 1. Business intelligence provides business insight that allows you to position your resources in order to make better business decisions. CPR saved CKE millions of dollars due to its ability to monitor the performance of burger sales in numerous test markets, along with other variables to determine that it would be effective for the company to introduce the Monster Thickburger. Without this BI, the company would have probably not introduced the burger, as the national diet obsession fab began. 2. The negative impacts of CKE’s BI include the fact that the studies were conducted in test markets, which do not depict the true market. If the BI is used to make a drastic change, such as the introduction of the Thickburger, and sales do not go as projected, this could negatively impact a company’s bottomline. Also, the cost of the BI software might outweigh the benefits, depending on what decisions the BI is used to make and the overall outcome. 3. The three forms of data mining include cluster analysis, association detection, and statistical analysis. Cluster analysis divides information set into mutually exclusive groups such that members of each group are as close together as possible to one another and different groups are as far apart as possible. Association detection reveals the degree to which variables are related and the nature and frequency of these relationships in the information. Statistical analysis performs such functions as information correlations, distributions, calculations, and variance analysis. CKE can use these tools to detect customer spending habits, possible issues with products or ingredients, and consistent flavor of products. 4. CKE can use operational BI to ensure inventory is correct as well as monitoring staffing. Operational BI can also be used to see what specials can be implemented in
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