Chapter 11 - PART IV Managerial and Decision Support...

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PART IV Managerial and Decision Support Systems 490 10. Knowledge Management 11. Data Management: Warehousing, Analyzing, Mining, and Visualization 12. Management Decision Support and Intelligent Systems ± CHAPTER 11 Data Management: Warehousing, Analyzing, Mining, and Visualization Harrah’s Entertainment 11.1 Data Management: A Critical Success Factor 11.2 Data Warehousing 11.3 Information and Knowledge Discovery with Business Intelligence 11.4 Data Mining Concepts and applications 11.5 Data Visualization Technologies 11.6 Marketing Databases in Action 11.7 Web-based Data Management Systems Minicases: (1) Sears / (2) Dallas Area Rapid Transit LEARNING OBJECTIVES After studying this chapter, you will be able to: ± Recognize the importance of data, their managerial issues, and their life cycle. ² Describe the sources of data, their collection, and quality issues. ³ Describe document management systems. ´ Explain the operation of data warehousing and its role in decision support. µ Describe information and knowledge discovery and business intelligence. Understand the power and benefits of data mining. · Describe data presentation methods and explain geographical information systems, visual simula- tions, and virtual reality as decision support tools. ¸ Discuss the role of marketing databases and pro- vide examples. ¹ Recognize the role of the Web in data manage- ment.
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491 FINDING DIAMONDS BY DATA MINING AT HARRAH’S THE PROBLEM Harrah’s Entertainment ( harrahs.com ) is a very profitable casino chain. With 26 casinos in 13 states, it had $4 billion sales in 2002 and net income of $235 mil- lion. One of Harrah’s casinos is located on the Las Vegas strip, which typifies the marketing issues that casino owners face. The problem is very simple, how to at- tract visitors to come and spend money in your casino, and to do it again and again. There is no other place like the Las Vegas strip, where dozens of mega casinos and hundreds of small ones lure visitors by operating attractions ranging from fiery volcanoes to pirate ships. Most casino operators use intuition to plan inducements for customers. Almost all have loyalty cards, provide free rooms to frequent members, give you free shows, and more. The problem is that there is only little differentiation among the casinos. Casinos believe they must give those incentives to survive, but do they help casinos to excel? Harrah’s is doing better than most competing casinos by using management and marketing theories facilitated by information technology, under the leadership of Gary Loveman, a former Harvard Business School professor. THE SOLUTION Harrah’s strategy is based on technology-based CRM and the use of customer data- base marketing to test promotions. This combination enables the company to fine- tune marketing efforts and service-delivery strategies that keep customers coming back. Noting that 82.7 percent of its revenue comes from slot machines, Harrah’s started by giving each player a loyalty smart card. A smart-card reader on each slot machinein all 26 of its casinos records each customer’s activities. (Readers are also
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This note was uploaded on 02/22/2009 for the course CET 3323C taught by Professor Miller during the Spring '09 term at University of Central Florida.

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Chapter 11 - PART IV Managerial and Decision Support...

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