Download 5 Foundations of Business Intelligence: Databases and Information

Chapter 5
Foundations of Business
Intelligence: Databases
and Information
Management
5.1
• See Markers-ORDER-DB
• Logically Related Tables
• Relational Approach:
• Physically Related Tables: The Relationship
Screen
• Multi-Table Queries
5.2
Ayati’s notes
Information System:
Storage Concept vs. Program Concept:
• A parallel:
Any Production System
Parts
Assembly Line
Storage
Product
Organized Parts
Any Information System
Data
Program (Instruction Codes)
Database
(The value is in the
organization)
Information
Organized Data
(a report, a form, on
a screen or on paper)
5.3
Ayati’s notes
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
5.4
Ayati’s notes
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
5.5
Ayati’s notes
Database vs. Database Management
System (DBMS)?
Data
Program (Instruction Codes)
Information
Database
(a report,
a screen)
Data
Entry
Forms
Data
Definition
Language
Data
Manipulatio
n
Language
Database Management Systems (DBMS)
5.6
Ayati’s notes
Reports &
Forms
Generating
Facilities
Learning Database Involves:
• Database Design :
• How to Design Storage
• Database Processing:
• Learning the structure and
mechanics of a DBMS
5.7
Ayati’s notes
Approaches to learning Database:
• Concept first: The Academic approach
• Practice first: the Layman approach
•
:
Concept
5.8
Ayati’s notes
Practice
The Professional Approach
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 objectoriented 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.
5.9
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.
5.10
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 IT’s role in establishing customer
intimacy and managing inventory.
• Illustrates digital technology’s role in forging
success in business from data harvesting.
5.11
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?
5.12
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
5.13
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.
5.14
Figure 5-1
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.
5.15
Figure 5-3
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
5.16
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
5.17
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
5.18
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
5.19
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.
5.20
Figure 5-13
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
•
•
•
•
•
5.21
Associations
Sequences
Classifications
Clusters
Forecasts
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.
5.22
Figure 5-14
Essentials of Business Information Systems
Chapter 5 Foundations of Business Intelligence: Databases and
Information Management
Using Databases to Improve Business Performance and Decision Making
Peru’s 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 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.
5.23
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
5.24
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 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
5.25
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
5.26
Essentials of Business Information Systems
Chapter 5 Foundations of Business Intelligence: Databases and
Information Management
Managing Data Resources
Downloading Digital Music—When You’re 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?
5.27
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?
5.28