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Management Information Systems Databases in the World of Building Business Intelligence November2003 Created and Presented By: Heather N. Dunn Business Intelligence Is knowledge - About your customers About your competitors About your partners About your competitive environment About your own internal operations Comes from Information Enables your organization to extrapolate the true meaning of information to take creative and powerful steps to ensure a competitive advantage Business Intelligence Doesn’t magically appear First gather and organize information Then have the right IT (Information Technology) tools to define and analyze various relationships within the information Knowledge workers such as yourselves us IT tools to create business intelligence from information Technology alone won’t do it for you Technology such as databases, database management systems, data warehouses, and data mining tools can definitely help you build and use business intelligence Information Business Intelligence How many products sold over $10,000 last month Add A Product Change A Product Price Change Advertising Time Table Product Database Advertising Database Increase Radio Budget Increase Customer Credit Limit Customer Database Change Customer Salary Level Online Transaction Processing Data Warehouse If inventory levels are reduced by 10%, what is the new total cost of inventory carried Can customer profile changes support a high priced product? Online Analytical Processing Databases A collection of information that you organize and access according to the logical structure of that information Four primary models for creating databases - Newest one being object-oriented database model Most popular database model: The Relational Database Model Relational Database Model Uses a series of logically related twodimensional tables or files to store information in the form of a database Relation – describes each two-dimensional table or file in the relational model Actually composed of two distinct parts: I. II. The information itself, stored in a series of two-dimensional tables, files, or relations The logical structure of that information Relational Database Model Collection of Information Picture provided by “Management Information Systems for the Information Age”, Fourth Edition by HAAG/CUMMINGS/MCCUBBRY (Page 131) Relational Database Model Organize and access information according to its logical structure and not its physical position Ex.) You don’t care which row the Customer’s file will appear, all you care about is their Customer #, ID, or that persons first and last name. The very first thing you create is a data dictionary when creating a database Data Dictionary Contains the logical structure for the information Contains important information or logical properties about your information Example of A Data Dictionary Part Number is the primary key because of the key icon beside it. For Percentage Markup, we defined its Format as “Percent” and its number of decimal places as 2. Picture provided by “Management Information Systems for the Information Age”, Fourth Edition by HAAG/CUMMINGS/MCCUBBRY (Page 131) Other Requirements Must create ties or relationships in the information that show how the files relate to each other These relationships are used extensively to create business intelligence because the enable us to track the logical relationships among many types of information Before creating them among files, you must first specify the primary key for each file Primary key – is a field or group of fields in some cases that uniquely describe each record When identifying a primary key, you are saying that a field can not be blank Other Requirements Some Other Additional Things That are Needed: Foreign Key – a primary key of one file that appears in another file – Are essential in the relational database model Without them, you have no way of creating logical ties among various files Creation of Logical Ties W/ Primary & Foreign Keys Part File Part Number – Primary Key Facility Number – Foreign Key Distributor ID – Foreign Key Distributor File Distributor ID – Primary Key Facility File Facility Number – Primary Key Manager Number – Foreign Key Employee File Employee Number – Primary Key Integrity Constraints By defining the logical structure of information in a relational database, integrity constraints are developed – rules that help ensure the quality of information Database Management Systems (DBMS) Helps you specify the logical organization for a database and access and use the information within a database Provide the tools you use to work with a database Contains five important software components I. II. III. IV. V. DBMS engine Data Definition Subsystem Data Manipulation Subsystem Application Generation Subsystem Data Administration Subsystem