Page 64 - CITP Review

 Deviation. Categorical subdivisions are compared against a reference, such as a comparison of
estimated versus actual costs for a product over a given time period.
 Frequency distribution. Highlights the number of observations of a given variable over a specified
interval, such as the number of months in which sales are above a target of $1,000,000.
 Correlation. Comparison between observations represented by two variables (X,Y) to determine if
they tend to move in the same or opposite directions, such as plotting sales growth (X) and
advertising costs (Y) for a time series.
 Nominal comparison. Comparing categorical subdivisions in no particular order, such as the sales
volume by product code.
 Geographic or geospatial. Comparison of a variable across a map or layout, such as the product
return rate by state.

Tools, techniques, and procedures
The tools needed for an effective data analytic and reporting system cover a range of functions
(see exhibit 2-2). Some tools serve multiple purposes, and most have been discussed previously in
this course.

Data management

Chronologically, the first set of applicable tools would be the data management tools, used to integrate
the operational data and other relevant data into the data analytic and reporting system. It would also be
tools that allow for ongoing management of that database for effective use, such as data marts.

Reporting
Reporting tools can be divided into general purpose, visualization, and strategy and performance
management. The general purpose tools include OLAP, DSS, EIS, and dashboards. OLAP provides “slice
and dice” reporting of multidimensional data that can be very beneficial. DSS reports assist managers in
making more effective or efficient decisions. EIS systems provide executive managers highly
summarized data in succinct form as relevant information. Dashboards also are used frequently to report
data, especially live, dynamic results of certain critical information.

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