foundations of business intelligence: databases and information...

5.1

5Chapter

Foundations of Business Intelligence: Databases

and Information Management

Foundations of Business Foundations of Business Intelligence: Databases Intelligence: Databases

and Information and Information ManagementManagement

5.2

• See Markers-ORDER-DB

Ayati’s notes

• Logically Related Tables• Relational Approach: • Physically Related Tables: The Relationship

Screen• Multi-Table Queries

5.3

Information System:Storage Concept vs. Program Concept:

• A parallel:

Storage Parts Product

Assembly LineAny Production System

Database Data Information

Program (Instruction Codes)

Organized Data(a report, a form, ona screen or on paper)

Any Information System

Organized Parts (The value is in the organization)

Ayati’s notes

5.4

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

Ayati’s notes

5.5

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

Ayati’s notes

5.6

Database vs. Database Management System (DBMS)?

DataManipulatio

nLanguage

Database

Data Definition Language

Database Management Systems (DBMS)

Data InformationProgram (Instruction Codes)

(a report,a screen)

Reports &Forms

GeneratingFacilities

DataEntry Forms

Ayati’s notes

5.7

Learning Database Involves:

• Database Design : • How to Design Storage

• Database Processing:• Learning the structure and

mechanics of a DBMS

Ayati’s notes

5.8

Approaches to learning Database:

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

• Concept first: The Academic approach• Practice first: the Layman approach

•• : : The Professional ApproachThe Professional Approach

Concept Practice

Ayati’s notes

5.9

STUDENT OBJECTIVES

Essentials of Business Information SystemsEssentials of Business Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Chapter 5 Foundations of Business Intelligence: Databases and

Information ManagementInformation Management

• 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.

5.10

• 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.

STUDENT OBJECTIVES (Continued)



5.11

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 IT’s role in establishing customer intimacy and managing inventory.

• Illustrates digital technology’s role in forging success in business from data harvesting.



5.12

• 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?

Interactive Session: 7Interactive Session: 7--ElevenEleven

7-Eleven Stores Ask the Customer by Asking the Data



5.13

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



5.14

A Relational Database TableA Relational Database Table

Figure 5-1

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.




5.15

A Simple EntityA Simple Entity--Relationship DiagramRelationship Diagram

Figure 5-3This diagram shows the relationship between the entities SUPPLIER and PART.




5.16

• 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

DBMSDBMS

Database Management Systems



5.17

Operations of a Relational DBMSOperations 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




5.18

Capabilities of Database Management SystemsCapabilities of Database Management Systems

• Data definition• Data dictionary• Querying and reporting

• Data manipulation language• Structured query language (SQL)

• Object-oriented databases




5.19

Data WarehousesData Warehouses

Using Databases to Improve Business Performance and Decision Making

• 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



5.20

Components of a Data WarehouseComponents of a Data Warehouse

Figure 5-13

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.




5.21

• 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

Business Intelligence, Multidimensional Data Business Intelligence, Multidimensional Data Analysis, and Data MiningAnalysis, and Data Mining




5.22




Figure 5-14

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.

Business IntelligenceBusiness Intelligence

5.23

PeruPeru’’s s BancoBanco de de CreditoCredito Scores with a New Data WarehouseScores 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 bank’s 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.

5.24

• 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

Databases and the WebDatabases and the Web




5.25

Establishing an Information PolicyEstablishing an Information Policy

Managing Data Resources

• An information policy states an organization’s 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



5.26

Ensuring Data QualityEnsuring 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




5.27

• 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?

Downloading Digital MusicDownloading Digital Music——When YouWhen You’’re on the re on the Wrong TrackWrong Track




5.28

• What experiences have you had with bad data in relation to digital music?

• Visit the Gracenote Web site at www.gracenote.comand 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?

Interactive Session: Downloading Digital MusicInteractive Session: Downloading Digital Music




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