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Technology in Action Alan Evans Kendall Martin Mary Anne Poatsy Tenth Edition Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

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Technology

in Action

Alan Evans • Kendall Martin

Mary Anne Poatsy

Tenth Edition

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Technology in Action

Chapter 9

Behind the Scenes:

Databases and Information Systems

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Topics

• Database Basics

– Database Building Blocks

– Database Types

– Database Functions

• How Businesses Use Databases

– Database Warehousing and Storage

– Business Intelligence Systems

– Data Mining

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 2

Database Building Blocks

• A database is a collection of related data,

which can be

– Stored

– Sorted

– Organized

– Queried

• Databases make data more meaningful

and more useful

• Databases turn data into information

Copyright © 20134Pearson Education, Inc. Publishing as Prentice Hall 3

Database Building Blocks

• Why I need to know about databases

– Helps you interact more effectively

– Might not get the information for which you

are looking

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 4

Database Building Blocks Databases Versus Lists

• Databases are not needed for managing

all types of data

– Lists are adequate for simple tasks

– Other applications have tools to create lists

• Word

• Excel

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 5

Database Building Blocks Databases Versus Lists (cont.)

• When a list is not sufficient for organizing

data

– Lists aren’t sufficient for complex information

– Lists aren’t efficient when multiple people

need to access information

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 6

Database Building Blocks Databases Versus Lists (cont.)

• The problem with lists

– Data redundancy occurs when there is a

Repetition of data

– Would require the updating of multiple lists

– Data inconsistency happens when not all

duplicated data is updated properly

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 7

Database Building Blocks Databases Versus Lists (cont.)

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 8

Database Building Blocks Databases Versus Lists (cont.)

• Other problems using lists instead of

databases

– Inappropriate data because of few checks for

invalid data

– Incomplete data due to difficulty of knowing if

or when information is missing

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 9

Database Building Blocks Databases Versus Lists (cont.)

• When exercising caution and setting rules

are not enough

– Being careful can help, but there’s still room

for error

– Data redundancy and inconsistency are still

problems

– Complex data needs to be organized in a

database

• Most practical and efficient

• Avoids pitfalls of lists Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 10

Database Building Blocks Advantages of Using Databases

• How databases make our lives easier

– Manage large amounts of data efficiently

– Enable information sharing

– Promote data integrity

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 11

Database Building Blocks Advantages of Using Databases (cont.)

• How databases can manage large

amounts of data efficiently

– Organize the data in specific ways

– Store in multiple lists (tables)

– Database programs are designed specifically

to manage large amounts of data accurately

as it is updated and manipulated

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 12

Database Building Blocks Advantages of Using Databases (cont.)

• How databases make information sharing

possible

– Only one file is maintained (data

centralization)

– Centralized database becomes a shared

source of information

– No files to reconcile with each other

– Controlled access increases security

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 13

Database Building Blocks Advantages of Using Databases (cont.)

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 14

Database Building Blocks Advantages of Using Databases (cont.)

• How databases promote data integrity

– Data integrity means data is accurate and

reliable

– Centralization largely ensures data integrity

– Data only needs to be updated in one place,

unlike using multiple lists

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 15

Database Building Blocks Advantages of Using Databases (cont.)

• Disadvantages associated with databases

– Can be more time consuming and expensive

to set up and administer

– Need to be careful in database design

– Database administrator is responsible for

designing, constructing, and maintaining

databases

• Needed for larger databases

– Ongoing review ensures smooth flow of data

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 16

Database Building Blocks Database Management Systems

• How databases are created

– A database management system (DBMS) is

specially designed software used to capture

and analyze data

• Oracle Database

• Microsoft Access

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 17

Database Building Blocks Database Management Systems (cont.)

• How databases are created (cont.)

– Four main operations of a DBMS

– Creating databases and entering data

– Viewing (or browsing) and sorting data

– Querying (extracting) data

– Outputting data

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 18

Database Building Blocks Database Terminology

• How data is stored in a database

– Fields

• Store each category of information

• Displayed as columns

• Identified by a field name

– Records

• Group of related fields

– Tables

• Group of related records

• Common subject

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 19

Database Building Blocks Planning and Creating the Database

• How to create a database with a DBMS

– Describe the data to be captured

• Contained in database’s files

• Referred to as the data dictionary (schema)

– Data dictionary

• Like a map of the database

• Defines the features of the fields

• Need to define for each field before data entry

• Attributes include field name, data type,

description, properties, field size

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 20

Database Building Blocks Planning and Creating the Database

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 21

Database Building Blocks Planning and Creating the Database (cont.)

• How to include data dictionary details in a

database

– Used to create the tables

– In Microsoft Access it can be created in:

• Datasheet View

• Design View: Detailed view of data elements,

known as Field Properties

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 22

Database Building Blocks Planning and Creating the Database (cont.)

• How data tables are created

– Step 1: Input unique field names

– Step 2: Define the data type

– Step 3: Set a maximum field size

– Step 4: Set a default value if necessary

• The value automatically used unless user enters

another value

• Useful for data that’s frequently the same

– Repeat for each field in the table

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 23

Database Building Blocks Planning and Creating the Database (cont.)

• How to know what fields are needed in my

database

– Careful planning is required

– Each field should describe a unique piece of

data

• Do not combine two pieces of data

• Allows for better filtering and sorting

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 24

Database Building Blocks Planning and Creating the Database (cont.)

• Adding or deleting fields from the

database

– Good planning will prevent the need to

change the structure

– Once relationships are established and data

is entered it is difficult to add or delete fields

– Enter sample or limited amounts of data to

test the database before fully populating it

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 25

Database Building Blocks Planning and Creating the Database (cont.)

• Rules for establishing field names

– Field names must be unique within a table

– Distinguish similarly named fields to avoid

confusion

– Creating a data dictionary will help you plan

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 26

Database Building Blocks Planning and Creating the Database (cont.)

• Determining what type of data can be

entered in a field

– Data type indicates what type of data can be

stored in the fields

– Prevents wrong type of data from being

entered

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 27

Database Building Blocks Planning and Creating the Database (cont.)

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 28

Database Building Blocks Planning and Creating the Database (cont.)

• Amount of data which can be entered into

a field

– Field size determines the maximum number

of characters

– Tailor the field size to match the maximum

length of the data

– If you define a field size of 50, space is

reserved for 50 characters

– Having inefficiently sized fields decreases

performance

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 29

Database Building Blocks Using Primary Keys

• Having the same values in the same table

– It is possible for fields to have the same

values

– Each record must have a unique value, the

primary key

– Primary keys make it impossible to duplicate

records

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 30

Database Building Blocks Using Primary Keys (cont.)

• A good primary key

– Must be unique

– Should not violate privacy concerns

– Doesn’t have to represent something

– AutoNumber data type (Microsoft Access) is

often used

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 31

Database Building Blocks Using Primary Keys (cont.)

• Ensuring that data is organized efficiently

– Normalization: Process of ensuring that data

is organized efficiently

• Reduces data redundancy

• Separates data into distinct tables

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 32

Database Types

• Three major types of databases are in use

– Relational

– Object-oriented

– Multidimensional

• Relational databases have the largest

market share

• Multidimensional databases are growing

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 33

Database Types Relational Databases

• Relational database

– Organizes data in table format

– Logically groups similar data into a relation

(a table that contains related data)

– Links data between tables through

relationships on common keys

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 34

Database Types Relational Databases (cont.)

• Relational database (cont.)

– The common field in one table (primary key)

is linked to the common field (foreign key) in

the second table

– Need to keep data in related tables

synchronized

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 35

Database Types Relational Databases (cont.)

• Relational database (cont.)

– Referential integrity: Each value in the

foreign table has a corresponding value in

the primary table

– Enforcing referential integrity prevents

orphan records

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 36

Database Types Relational Databases (cont.)

• Different types of relationships in relational

databases

– One-to-many: A record appears once in one

table and many times in a related table

– One-to-one: For each record in one table

there is only one record in a related table

– Many-to-many: Records in one table can be

related to multiple records in a related table

and vice versa

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 37

Database Types Object-Oriented Databases

• Object-oriented database

– Store data in objects rather than tables

– Also contain methods for processing or

manipulating data

– Can store more types of data than relational

databases

– Can access data faster

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 38

Database Types Object-Oriented Databases (cont.)

• Object-oriented database (cont.)

– Unstructured data include audio clips, video

clips, pictures, and extremely large

documents

• Binary large object (BLOB) is unstructured data

encoded in binary form

– Structured data is analytical data

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 39

Database Types Object-Oriented Databases (cont.)

• Object-oriented database (cont.)

– Based on complex models for manipulating

data

– Becoming more popular because of variety

of data

– Initially costly to convert data to object

oriented but can provide many advantages

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 40

Database Types Multidimensional Databases

• Multidimensional database

– Stored data can be analyzed from different

perspectives (dimensions)

– Relational database has only two dimensions

(fields and records)

– Multidimensional databases organize in cube

format

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 41

Database Types Multidimensional Databases (cont.)

• Multidimensional database (cont.)

– Data cube

• Measure attribute: Main type of data that cube is

tracking

• Feature attributes: Describe measure attribute in

meaningful ways

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 42

Database Types Multidimensional Databases (cont.)

• Advantages of multidimensional

databases

– Customized to provide information to variety

of users

– Process data faster

• Critical for larger databases

• Especially when accessed via the Internet

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 43

Database Functions

• Functions

– Allow users to extract subsets of data from

the database

– Output the data in a meaningful and

presentable format

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 44

Database Functions Inputting Data

• How to get data into the database

– Can be directly keyed into the database

– Can import from other files

• Saves time

• Reduces data error

• Must match the format of the database exactly

• Filters are often applied

• Nonconforming data is flagged

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 45

Database Functions Inputting Data (cont.)

• How to make manual entry into a

database more efficient

– Input forms can be used to control data input

in a shared database

– Each field has a label

– Data is inputted into the blank boxes

– Existing data can be changed through forms

– Ensures that correct record is changed

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 46

Database Functions Inputting Data (cont.)

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 47

Database Functions Data Validation

• How to ensure that only valid data is

entered into a field

– Validation is the process of ensuring that

data meets specified guidelines

– Validation rule is defined in data dictionary

– Specified in field properties for each field

– Violations result in error message with

suggested action

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 48

Database Functions Data Validation

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 49

Database Functions Data Validation (cont.)

• How to ensure that only valid data is

entered into a field (cont.)

– Common validation rules

• Range check: Data falls within range of values

– Field constraint – a property that must be satisfied

• Completeness check: Ensures all required fields

have been completed

• Consistency check: Compares values to see if

values are reasonable

• Alphabetic and numeric checks: Confirm that only

text or numbers are entered in fields

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 50

Database Functions Data Validation (cont.)

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 51

Database Functions Viewing and Sorting Data

• Viewing the data in a database

– Displaying all data at one time is an option

– Many times data is viewed one record at a

time

– Forms display individual records

• From only one table

• From related tables

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 52

Database Functions Viewing and Sorting Data (cont.)

• Reordering records in a database

– Easy to sort data in ascending or descending

order

• Step 1 - highlight a column

• Step 2 - click Ascending or Descending on the

Ribbon

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 53

Database Functions Viewing and Sorting Data (cont.)

• View records by browsing

OR

• Sort records by field name

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 54

Database Functions Extracting or Querying Data

• Learning a query language to develop

queries

– Use a filter

• Temporarily displays records that match criteria

• Can’t save the results

• Can only be applied to fields in one table

– Create a query

• Way of retrieving a particular subset of data

• Can be used from one or more tables

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 55

Database Functions Extracting or Querying Data (cont.)

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 56

Database Functions Extracting or Querying Data (cont.)

• Displaying a subset of data in a database

– Query language: Has own vocabulary and

sentence structure

– Similar to full-blown programming languages

but much easier to learn

– Structured Query Language (SQL) is the

most popular

– Modern systems provide wizards for creating

queries

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 57

Database Functions Outputting Data

• Retrieving data from of a database

– Most common output is viewable or printable

report

– Can generate reports from data in tables or

from queries

– Adjustments can be made to the report such

as grouping and compiling summary reports

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 58

Database Functions Outputting Data (cont.)

• Transferring data from a database to

another software application

– Exporting: Putting data into a format that

another application can understand

– Data can be imported and exported as well

as converted to and from other formats

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 59

Data Warehousing and Storage

• Simple level

– Data is retrieved as needed

– Small databases and simple enterprises

– Single database

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 60

Data Warehousing and Storage

(cont.)

• Problems arise when

– Organization gets much larger

– Data is stored in separate databases

• Benefits of accessing data from all

databases are being recognized

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 61

Data Warehousing and Storage Data Warehouses

• Data warehouses

– Large-scale collection of data

– Contains and organizes data in one place

– Data comes from multiple databases

– Consolidate information from various

systems to present enterprise-wide view of

operations

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 62

Data Warehousing and Storage Data Warehouses (cont.)

• Data in a data warehouse is organized the

same way as in a normal database

– Data is organized by subject

– Focus is on one specific aspect of an

operation

– Can contain information from multiple

databases

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 63

Data Warehousing and Storage Data Warehouses (cont.)

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 64

Data Warehousing and Storage Data Warehouses (cont.)

• Data warehouses do not capture data from

only one time period

– Date is time-variant; it doesn’t all pertain to

one time period

– Contains current and historical data

– Enables analysis of the past

– Examine the present in light of historical data

– Make projections about the future

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 65

Data Warehousing and Storage Populating Data Warehouses

• How data warehouses are populated with

data

– Internal sources: Company’s databases and

other analysis tools

– External sources: Data provided by vendors,

suppliers, etc.

– Clickstream data: Software which is used to

capture information about each click a user

makes

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 66

Data Warehousing and Storage Populating Data Warehouses (cont.)

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 67

Data Warehousing and Storage Data Staging

• Fitting source data into the warehouse

– Data must be “staged” before being entered

into a data warehouse

• Extraction of the data from source databases

• Transformation (reformatting) of the data

• Storage of the data in the data warehouse

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 68

Data Warehousing and Storage Data Staging

• Fitting source data into the warehouse

(cont.)

– Many programs and procedures might be

needed to extract and reformat data

– Nature and complexity of source data

determines complexity of data-staging

process

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 69

Data Warehousing and Storage Data Staging (cont.)

• How data stored in the data warehouse

can be extracted and used

– Query much same as an Access database

– Special software needed because of more

data

– Online analytical processing (OLAP)

software provides standardized tools for

viewing and manipulating data

– Enable flexible views of the data that user

can easily change

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 70

Data Warehousing and Storage Data Marts

• How to handle smaller amounts of data

– Data mart: Small slices of the data

warehouse

– Analyze a related group of data separated

from the main body of data

– Pertains to single component of business

– Vital because different data can be extracted

and reformatted

– Can be stored in specialized data marts Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 71

Business Intelligence Systems

• Information system is software-based

solution used to gather and analyze

information

• Delivers up-to-the-minute data

• Databases, data warehouses, and data

marts are integral because they store the

functional information

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 72

Business Intelligence Systems

(cont.)

• All perform similar functions

– Acquiring data

– Processing data into information

– Storing data

– Providing user with output options

– Make information meaningful and useful

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 73

Business Intelligence Systems

(cont.)

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 74

Business Intelligence Systems

(cont.)

• Information systems used by business

managers

– Office support systems

– Transaction-processing systems

– Management information systems

– Decision support systems

– Enterprise resource planning (ERP) systems

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 75

Business Intelligence Systems

(cont.)

• Information systems used by business

managers? (cont.)

– Each system involves use of one or more

databases

– Business intelligence systems are used to

analyze and interpret data so that informed

decisions can be made

– Enable access to information from multiple

sources

– Provides information in timely fashion

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 76

Business Intelligence Systems Office Support Systems

• What an office support system

accomplishes

– Office support system (OSS) is designed to

improve communications and assist

employees in accomplishing tasks

– Example: Microsoft Office

• Maintaining phone list in Excel

• Designing sales presentation in PowerPoint

• Writing customer letters in Word

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 77

Business Intelligence Systems Transaction-Processing Systems

• Transaction-processing system

– Transaction-processing system (TPS) keeps

track of everyday business activities

– Example: Colleges

• Track frequent transactions such as registering

students, accepting payments, printing course

catalogs

– Early computers in business world hosted

TPSs

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 78

Business Intelligence Systems Transaction-Processing Systems (cont.)

• How transactions are entered into a TPS

– Entered manually or electronically

– Processed in batches or real time

– Various departments can access the TPSs to

extract necessary information

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 79

Business Intelligence Systems Transaction-Processing Systems (cont.)

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 80

Business Intelligence Systems Transaction-Processing Systems (cont.)

• Batch processing

– Transaction data is accumulated until point is

reached then several transactions are

processed at once

– Appropriate for activities that are not time

sensitive

– Often more efficient

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 81

Business Intelligence Systems Transaction-Processing Systems (cont.)

• When TPS are transactions processed

– Most transactions are processed in real-time

– Real-time processing is when the database

is updated while the transaction is taking

place

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 82

Business Intelligence Systems Transaction-Processing Systems (cont.)

• When TPS are transactions processed

(cont.)

– Example: Classes

• When registering for class the database

immediately records your registration

• Ensures you have a spot

– Online transaction processing (OLTP)

ensures that data in the TPS is current

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 83

Business Intelligence Systems Management Information Systems

• Management information system

– Management information system (MIS)

provides timely and accurate information

– Enables managers to make critical decisions

– Direct outgrowth of TPSs

– Data could be powerful if organized and

outputted in useful form

– Today’s MISs are often included as a feature

of TPSs Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 84

Business Intelligence Systems Management Information Systems (cont.)

• Types of reports generated by MISs

– Detail report: Provides a list of transactions

that occurred during a time period

– Summary report: Provides a consolidated

picture of detailed data

– Exception report: Shows conditions that are

unusual or need attention

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 85

Business Intelligence Systems Management Information Systems (cont.)

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 86

Business Intelligence Systems Decision Support Systems

• Types of reports generated by MISs

– Decision support system (DSS) is another

type of business intelligence system

designed to help managers develop

solutions for specific problems

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 87

Business Intelligence Systems Decision Support Systems (cont.)

• Types of reports generated by MISs

(cont.)

– Example: Marketing Department

• Provide statistical information on customer

attributes

• Assist managers in making advertising decisions

• Uses data and enables users to add insight and

experiences and apply them to the solution

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 88

Business Intelligence Systems Decision Support Systems (cont.)

• What a DSS looks like

– DBMSs are supplemented by additional

software in a DSS

– User interface provides the means of

interaction between user and system

– Effective user interface must be easy to learn

– Other components are internal and external

data sources, model management systems,

and knowledge-based systems

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 89

Business Intelligence Systems Decision Support Systems (cont.)

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 90

Business Intelligence Systems Decision Support Systems (cont.)

• How DSSs get data

– Internal and external sources provide a

stream of data that is integrated into the DSS

• Internal sources are maintained by the company

• External sources are from any source not owned

by the company that owns the DSS

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 91

Business Intelligence Systems Decision Support Systems (cont.)

• What function a model management

system performs

– Model management system software assists

in building management models in DSSs

– Analysis tool provides view of a particular

business situation using internal and external

data

– Aids in decision making

– Used to analyze data to create additional

models

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 92

Business Intelligence Systems Decision Support Systems (cont.)

• What a knowledge-based system is, and

how it is used in DSSs

– Knowledge-based system provides

intelligence that supplements users’ intellect

and makes DSS more effective

– Expert systems try to replicate decision-

making process of human experts

– Natural language processing (NLP) system

enables user to communicate with computer

using natural language

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 93

Business Intelligence Systems Decision Support Systems (cont.)

• What a knowledge-based system is, and

how is it used in DSSs (cont.)

– Example: Apple’s Siri

– All NLP systems fall under artificial

intelligence

• Branch of computer science that attempts to

create computers that think like humans

• No computers can replicate thinking patterns of

human brain

• Scientists do not fully understand how humans

store and integrate knowledge to form intelligence

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 94

Business Intelligence Systems Decision Support Systems (cont.)

• How a knowledge-based system helps in

the decision-making process

– Fuzzy logic enables the interjection of

experiential learning into the equation by

considering probabilities

• Enables a system to be more flexible

• Consider a wider range of possibilities

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 95

Business Intelligence Systems Enterprise Resource Planning Systems

• What an enterprise resource planning

system does

– Enterprise resource planning system (ERP)

accumulates all information relevant to

running a business

– Makes information available to whoever

needs it

– Uses a common database that enables use

across multiple areas of an enterprise

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 96

Data Mining

• Data mining

– Process by which great amounts of data are

analyzed and investigated

– Objective is to spot significant patterns and

trends that would not be obvious

– Example: Enrollment data – School might

discover a consistent increase in new

engineering students who are women

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 97

Data Mining (cont.)

• Why businesses mine their data

– Understand customers better

– Effective marketing by concentrating efforts

– Data is classified, then cluster analysis

allows managers to determine trends

– Example: Potato chips and soft drinks in

same aisle

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 98

Data Mining (cont.)

• How businesses mine their data

– Classification

• Define helpful data classes

• Apply classes to unclassified data

– Estimation

• Enables managers to assign a value based on

criterion

– Affinity grouping (association rules)

• Managers determine which data goes together

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 99

Data Mining (cont.)

• How businesses mine their data? (cont.)

– Clustering

• Organizing data into similar subgroups

• No predefined classes

– Description and visualization

• Describe data so managers can interpret it in new

and different ways

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 100

Data Mining (cont.)

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 101

Chapter 11 Summary Questions

1. What is a database, and why is using one

beneficial?

102 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 11 Summary Questions

2. What do database management systems

do?

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Chapter 11 Summary Questions

3. What components make up a database?

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Chapter 11 Summary Questions

4. What types of databases are there?

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Chapter 11 Summary Questions

5. How do relational databases organize and

manipulate data?

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Chapter 11 Summary Questions

6. What are data warehouses and data

marts, and how are they used?

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Chapter 11 Summary Questions

7. What is a business intelligence system,

and what types of business intelligence

systems are used by decision makers?

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Chapter 11 Summary Questions

8. What is data mining, and how does it

work?

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