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Management Information Systems for the Information Age Chapter 3: Databases and Data Warehouses Building Business Intelligence Business Intelligence 1/2 Fundamental Concepts Having the right tools to capture, use, and manage information as a key resource Having the right tools to create knowledge and gain Business Intelligence from such information What Is Business Intelligence? Knowledge – about your customers, competitors, partners, operations, and external PESTO Chapter 3: Databases and Data Warehouses Slide 1-2 Business Intelligence 2/2 1. Where does BI come from? 2. How is BI developed? 3. What IT is necessary for BI? 1 Origin BI 3 IT for BI Chapter 3: Databases and Data Warehouses 2 Dev. Slide 1-3 Where Does BI Come From? Business Intelligence IT TOOLS Information MANAGEMENT Knowledge Data Chapter 3: Databases and Data Warehouses Slide 1-4 How Is BI Developed? To develop business intelligence (BI): Building Towards BI Manipulated Information = Knowledge Aggregated Data = Information Structure and Organize Data Gather Data 4. Finally you can manipulate the information into knowledge. 3. You can then aggregate and filter related data into information. 2. You have to structure and organize the data gathered. 1. You need to gather data first. Chapter 3: Databases and Data Warehouses Slide 1-5 IT #1: Gather Data Manipulated Information = Knowledge Aggregated Data = Information Business Intelligence Knowledge Structure and Organize Data Information Data Gather Data Online Transaction Processing (OLTP) is the gathering of input data, verifying for data quality and integrity, and storing the data in the appropriate location in database(s). OLTP systems also communicate with the consumer/client and provide them with receipts and reports of completed transactions. Chapter 3: Databases and Data Warehouses Slide 1-6 OLTP Chapter 3: Databases and Data Warehouses Slide 1-7 IT #2: Structure and Organize Data Manipulated Information = Knowledge Aggregated Data = Information Business Intelligence Knowledge Structure and Organize Data Information Data Gather Data Databases and Database Management Systems (DBMS, such as Microsoft Access) are the technology tools that directly support OLTP. Referred to as operational databases. Databases manage the structure and storage of data used to gain BI. Chapter 3: Databases and Data Warehouses Slide 1-8 Step #3: Manipulate Data Manipulated Information = Knowledge Aggregated Data = Information Business Intelligence Knowledge Structure and Organize Data Information Data Gather Data Information Systems are necessary to aggregate, manipulate, and further process the data into information that can be used for different objectives, such as creating reports, planning and forecasting, and making decisions. This manipulation of information into an aggregate form creates knowledge. Chapter 3: Databases and Data Warehouses Slide 1-9 Step #4: Aggregate Information Manipulated Information = Knowledge Aggregated Data = Information Business Intelligence Knowledge Structure and Organize Data Information Data Gather Data Online Analytical Processing (OLAP) is the manipulation of information to support decision making. Data warehouses (and data marts) and data mining tools support OLAP. Chapter 3: Databases and Data Warehouses Slide 1-10 Building Business Intelligence 1/2 Chapter 3: Databases and Data Warehouses Slide 1-11 Building Business Intelligence 2/2 IT for business intelligence (BI): Building Towards BI Manipulated Information = Knowledge Aggregated Data = Information Structure and Organize Data Data Warehouses and Data Mining Database Management Systems Relational Database Model Gather Data Chapter 3: Databases and Data Warehouses Slide 1-12 Managing the Information Resource 1/2 Chief information officer (CIO) - responsible for overseeing (and protecting) an organization’s information resource. Data administration - plans for, monitors, and oversees the development of the information resource. Database administration - responsible for the technical and operational aspects of managing the information contained in organizational databases. Chapter 3: Databases and Data Warehouses Slide 1-13 Managing the Information Resource 2/2 How will changes in technology affect organizing and managing information? Who owns the information and is responsible for its quality? How does an organization safeguard against the unethical use of information within the organization? Chapter 3: Databases and Data Warehouses Slide 1-14 Closing Thoughts Why is it so much easier for organizations to provide good online transaction processing (OLTP) support? Chapter 3: Databases and Data Warehouses Slide 1-15