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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 11 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 decisionmaking 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? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 102 Chapter 11 Summary Questions 2. What do database management systems do? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 103 Chapter 11 Summary Questions 3. What components make up a database? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 104 Chapter 11 Summary Questions 4. What types of databases are there? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 105 Chapter 11 Summary Questions 5. How do relational databases organize and manipulate data? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 106 Chapter 11 Summary Questions 6. What are data warehouses and data marts, and how are they used? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 107 Chapter 11 Summary Questions 7. What is a business intelligence system, and what types of business intelligence systems are used by decision makers? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 108 Chapter 11 Summary Questions 8. What is data mining, and how does it work? Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 109 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall 110555555555