Foundations of Business Intelligence: Databases and Information Management

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5
Chapter
Foundations of Business Intelligence Databases
and Information Management
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• See Markers-ORDER-DB

• Logically Related Tables
• Relational Approach
• Physically Related Tables The Relationship
  Screen
• Multi-Table Queries

Ayatis notes
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Information SystemStorage Concept vs. Program
Concept

• A parallel

Ayatis notes
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Format of Stored Data

• Text-based ( Free Format ) information Some 85
  of total written information
• Record-based ( Formatted ) Information Some 15
  of total written Information
• Volume of Data vs. vs. Accessing Data

Ayatis notes
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Definition of Database

• A Broad Definition Storage of Data and Knowledge
  in any Medium and any Format
• A Narrow definition Storage of Physically
  Related Data (and Knowledge) in Electronic Medium
  in either record or text Formats
• A Narrower definition, Relevant to This course
  Storage of Formatted record based Data (and
  Knowledge) in Electronic Medium which are
  Physically Related

Ayatis notes
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Database vs. Database Management System (DBMS)?
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Learning Database Involves

• Database Design
• How to Design Storage
• Database Processing
• Learning the structure and mechanics of a DBMS

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Approaches to learning Database

• Concept first The Academic approach
• Practice first the Layman approach
• 
  The Professional Approach

Concept
Practice
Ayatis notes
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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
STUDENT OBJECTIVES

• Describe how a relational database organizes data
  and compare its approach to an object-oriented
  database.
• Identify and describe the principles of a
  database management system.
• Evaluate tools and technologies for providing
  information from databases to improve business
  performance and decision making.

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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
STUDENT OBJECTIVES (Continued)

• Assess the role of information policy and data
  administration in the management of
  organizational data resources.
• Assess the importance of data quality assurance
  for the business.

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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
7-Eleven Stores Ask the Customer by Asking the
Data

• Problem Detached view of customer base,
  inadequate sales data.
• Solutions Implement retail information system
  and database and deploy POS workstations to
  analyze customer preferences and analyze sales
  trends.
• HP servers and Retail Information System leads to
  reduced inventory and increased sales revenue.
• Demonstrates ITs role in establishing customer
  intimacy and managing inventory.
• Illustrates digital technologys role in forging
  success in business from data harvesting.

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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
7-Eleven Stores Ask the Customer by Asking the
Data
Interactive Session 7-Eleven

• What are your experiences with shopping at your
  local convenience store? Does the store ever run
  out of your favorite items? If so, how quickly
  are they replaced?
• Does the store proprietor have a relationship
  with his or her customers? Are you aware of
  purchase data being collected?
• Are you more or less likely to shop at a
  convenience store when you know that your
  purchase data are being collected? Are you more
  or less likely to frequent a store that caters to
  your personal buying habits?

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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
The Database Approach to Data Management

• Database a collection of related files
  containing records on people, places, or things
• Entities and attributes
• Organizing data in a relational database
• Fields, records, key fields, primary key, foreign
  key
• Establishing relationships
• Entity-relationship diagram, normalization, join
  table

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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
The Database Approach to Data Management
A Relational Database Table
A relational database organizes data in the form
of two-dimensional tables. Illustrated here is a
table for the entity SUPPLIER showing how it
represents the entity and its attributes.
Supplier_Number is the key field.
Figure 5-1
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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
The Database Approach to Data Management
A Simple Entity-Relationship Diagram
This diagram shows the relationship between the
entities SUPPLIER and PART.
Figure 5-3
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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
Database Management Systems
DBMS

• A specific type of software for creating,
  storing, organizing, and accessing data from a
  database
• Separates the logical and physical views of the
  data
• Logical view how end users view data
• Physical view how data are actually structured
  and organized
• Examples of DBMS Microsoft Access, DB2, Oracle
  Database, Microsoft SQL Server, MYSQL

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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
Database Management Systems
Operations of a Relational DBMS

• Select creates a subset of records based on
  stated criteria
• Join combines relational tables to present the
  user with more information than is available from
  individual tables
• Project creates a subset consisting of columns
  in a table

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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
Database Management Systems
Capabilities of Database Management Systems

• Data definition
• Data dictionary
• Querying and reporting
• Data manipulation language
• Structured query language (SQL)
• Object-oriented databases

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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
Using Databases to Improve Business Performance
and Decision Making
Data Warehouses

• What is a data warehouse?
• A database that stores current and historical
  data that may be of interest to decision makers
• Data marts
• Subsets of data warehouses that are highly
  focused and isolated for a specific population of
  users

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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
Using Databases to Improve Business Performance
and Decision Making
Components of a Data Warehouse
The data warehouse extracts current and
historical data from multiple operational systems
inside the organization. These data are combined
with data from external sources and reorganized
into a central database designed for management
reporting and analysis. The information directory
provides users with information about the data
available in the warehouse.
Figure 5-13
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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
Using Databases to Improve Business Performance
and Decision Making
Business Intelligence, Multidimensional Data
Analysis, and Data Mining

• Business intelligence tools for consolidating,
  analyzing, and providing access to large amounts
  of data to improve decision making
• Online analytical processing (OLAP)
• Data mining and predictive analysis
• Associations
• Sequences
• Classifications
• Clusters
• Forecasts

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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
Using Databases to Improve Business Performance
and Decision Making
Business Intelligence
A series of analytical tools works with data
stored in databases to find patterns and insights
for helping managers and employees make better
decisions to improve organizational performance.
Figure 5-14
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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
Using Databases to Improve Business Performance
and Decision Making
Perus Banco de Credito Scores with a New Data
Warehouse

• Read the Focus on Organizations and then discuss
  the following questions
• What problems does Banco de Credito Peru face?
• How do the problems affect the banks strategy
  and business performance?
• How did management choose to solve these
  problems?
• Analyze the people, organization, and technology
  dimensions of its solution.
• What alternatives were available to management?
• Did management choose the best alternative?
  Explain your answer.

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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
Using Databases to Improve Business Performance
and Decision Making
Databases and the Web

• Firms use the Web to make information from their
  internal databases available to customers and
  partners
• Middleware and other software make this possible
• Database servers
• CGI
• Web interfaces provide familiarity to users and
  savings over redesigning and rebuilding legacy
  systems

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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
Managing Data Resources
Establishing an Information Policy

• An information policy states an organizations
  rules for managing and storing information
• Data administration is responsible for the
  specific policies and procedures through which
  data can be managed as a resource
• Large organizations use a database design and
  management group to perform database
  administration

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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
Managing Data Resources
Ensuring Data Quality

• Poor data quality is a major obstacle to
  successful customer relationship management
• Data quality problems can be caused by redundant
  and inconsistent data produced by multiple
  systems
• Data input errors are the cause of many data
  quality problems
• A data quality audit is a structured survey of
  the accuracy and completeness of data
• Data cleansing detects and corrects incorrect,
  incomplete, improperly formatted, and redundant
  data

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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
Managing Data Resources
Downloading Digital MusicWhen Youre on the
Wrong Track

• Read the Focus on Technology and then discuss the
  following questions
• What data management and data quality problems
  are posed by digital music services?
• What is the impact of these problems on
  individuals and the digital music industry?
• What people, organization, and technology factors
  were involved? What alternative solutions are
  available?

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Essentials of Business Information
Systems Chapter 5 Foundations of Business
Intelligence Databases and Information
Management
Managing Data Resources
Interactive Session Downloading Digital Music

• What experiences have you had with bad data in
  relation to digital music?
• Visit the Gracenote Web site at www.gracenote.com
  and search the music database for a few of your
  favorite songs and artists. Are you able to find
  any bad or conflicting data?
• How concerned are you with having correct
  metadata for your digital music?
• What steps do you take to protect the quality of
  your metadata?