Decision Support and Business Intelligence Systems 9th Edition Ch1&2 Exercise

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Decision Support and Business Intelligence Systems, 9th Edition

Decision Support System

- HW #1 -

Chapter 1. Exercise 2 & 3
Chapter 1. Internet Exercise 4 & 8
Chapter 2. Exercise 5 & 9
Chapter 2. Exercise 3 & 4

< Chap 1. Exercises 2 >
Enter the TUN site and select “cases, projects and assignments.” Then select the case study: “Harrah’s High Payoff from Customer Information.” Answer the following questions about this case: a. What information does the data mining generate?
Answer) Customer behavior and preference related data.
It is needed to analyze customer behavior and preference data. To generate the necessary data and understand customers’ preferences, Harrah’s had to mine the data.
From
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* Developed strategies to retain the top high value customers. * Developed strategies to move unprofitable customers to lower cost distribution channels, different products, or pricing structures that boost profitability, while still focusing on customer needs and preferences; developed strategies to expand relationships with all customers. * Redesigned products and distribution channels to increase profitability and better meet customers' needs and preferences. * Redesigned information flows, work processes, and jobs in order to meet customers’ needs and increase their use of profitable products.

3. What operational and tactical advantages were achieved?
They are: * Client Information: customer Preferences and Profiles.
This information is used in many ways, including targeting marketing efforts and in designing the best mix of distribution channels. By better understanding the preferences of high value customers, FAC was able to design marketing programs that increased revenues by 15% in this market segment. * Flexible Product Lines: Product Profitability Analysis for Seniors Accounts.
It helps FAC to know the profitability of its various products. FAC was able to improve its risk-adjusted returns on equity from less than 20% to over 50%, while experiencing no overall loss in account balances. * Consistent Service: Contact Management

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