Download data warehouse?

Information Systems
John Wiley & Sons, Inc.
Mark Huber, Craig Piercy, and
Patrick McKeown
Copyright 2007 John Wiley & Sons, Inc.
Chapter 5
IT for Organizations
Copyright 2007 John Wiley & Sons, Inc.
What We Will Cover:
• The technological infrastructure of an
organization
• Databases: the primary data storage for
organizations
• Beyond databases: using other methods to store
data, information, and knowledge
• The IS integration problem
• Information systems that support business
activities
• Business intelligence
Copyright 2007 John Wiley & Sons, Inc.
Student ROI (Return on Investment)
Your investment of time and effort in this course will result
in your being able to answer these questions:
1. How do organizations use processors, networks,
software, and storage?
2. What are the key concepts of data organization for an
IS?
3. In what ways can organizations use IT to store and
share data, information and knowledge?
4. What is the IS integration problem and how are
organizations solving it?
5. How do organizations use IT to support transactions
and business processes?
6. How does business intelligence enhance
organizational decision making?
Copyright 2007 John Wiley & Sons, Inc.
IT: The “Plumbing of an
Organization”
• Data and information are as
vital to an organization as
the water we drink
• Data and information must
be delivered in a usable
form
• Just as pipes acts plumbing
to deliver water for us to
drink, IT acts as the
plumbing of an organization
by delivering “clean” data
and information to those
who need it.
Copyright 2007 John Wiley & Sons, Inc.
Forms and Organizations of Data
and Information
• While we need only clean water, we need
different forms of data and information that is
often organized in many different ways.
• What are some different forms of data and
information?
• How can data and information be organized?
Copyright 2007 John Wiley & Sons, Inc.
Technology Infrastructure of an
Organization
• All core components discussed at the individual level—
hardware, software, and networks—also apply at the
organizational level.
• What are the two main differences between personal
and organizational IT?
• How and why do these differences create challenges
and opportunities for organizations?
Copyright 2007 John Wiley & Sons, Inc.
Organizational Hardware
• Processing hardware is at the heart of business IS.
• The computer hierarchy categorizes processors
according to their power.
• If determining computer power is often based on
physical size, why isn’t it always possible to
compare computer types on power alone?
Copyright 2007 John Wiley & Sons, Inc.
Computer Hierarchy
Computer
Type
Relative Processing
Power
Supercomputer
Largest and Fastest
Mainframe
Large
Server Farms
Medium/many
Personal
Computer (PC)
Small to medium
Personal Digital
Assistant (PDA)
Very small
Embedded
processors
Extremely small
Purpose
Copyright 2007 John Wiley & Sons, Inc.
Organizational Networks
•
•
Networked computers provide the core function
of ________ ________ in organizations
Networks also support communications
between …
–
–
•
What is one way to classify networks?
Copyright 2007 John Wiley & Sons, Inc.
Types of Organizational Networks
Network
Size
PAN (Private Area
Network--private)
Up to a small
office
LAN (Local Area
Network--private)
Within a building
MAN (Metropolitan
Area Network—
private/public)
Within a
metropolitan area
WAN (Wide Area
Network—
private/public)
Over a large geographical area)
Internet (Public)
Global
Purpose
Copyright 2007 John Wiley & Sons, Inc.
Intranets in the Organization
• If intranets are very important to
the organization, then what is an
intranet?
• From a hardware perspective, an
intranet is a …. .
• What protocols enable intranets to
share information just like you do
using the Internet?
• Intranets also use what other
Internet-compatible file formats ?
Copyright 2007 John Wiley & Sons, Inc.
Advantages of Intranets
What are three major advantages of
intranets?
1.
2.
3.
Copyright 2007 John Wiley & Sons, Inc.
Individual vs. Organizational Software
Software at the organizational level is like that at personal level,
just more complex and able to handle more transactions.
Type of
Software
Individual Use
Organizational Use
Operating
Systems
Application
Software
Collaboration
Software
Copyright 2007 John Wiley & Sons, Inc.
Databases: Primary Data Storage for
Organizations
• All business information systems rely on stored data to
help organizations make decisions.
• The primary technology for data storage is the
database.
• What is a database?
• What is a database management system (DBMS) ?
Copyright 2007 John Wiley & Sons, Inc.
DBMSs Control Database Access
Copyright 2007 John Wiley & Sons, Inc.
Database Systems
• A database and its DBMS is often referred
to as a database system.
• People who create and manage
organizational database systems are
referred to as database administrators.
• How and why do knowledge workers use
database systems?
Copyright 2007 John Wiley & Sons, Inc.
The Data Hierarchy
The data hierarchy is a
way of organizing
stored data in
progressively larger
levels of complexity.
Top-down View
Database
File
Record
Field
Character
Bit
Bottom-up View
Copyright 2007 John Wiley & Sons, Inc.
File Processing Systems
• Before the development of database systems, most
organizations used file processing systems.
• With file processing, each application uses it own set
of files.
• Even though files may be related by an application,
they are not necessarily stored or managed together.
Copyright 2007 John Wiley & Sons, Inc.
Four Disadvantages of File
Processing Systems
1. Data Redundancy:
2. Data Dependence:
3. Data Inaccessibility:
4. Poor File Management:
Copyright 2007 John Wiley & Sons, Inc.
Four Advantages of Database
Management Systems
1.
2.
3.
4.
Copyright 2007 John Wiley & Sons, Inc.
Relational Data Model
• The relational data model was created by E. F. Codd in the early
1970’s.
• The relational data model is a method of logically storing data in a
database that is independent of the method used to physically store
the data.
• Relational database management systems (RDBMS) are the most
popular way of storing large amounts of data.
Copyright 2007 John Wiley & Sons, Inc.
The Relational Data Model
• The relational data model stores data in one or
more ________ corresponding to entities.
• Tables consist of ________ which correspond to
________ in the tables.
• ________ store data on a single instance of an
entity.
• A record consists of one or more ________.
• ________ are often referred to as attributes
and correspond to ________ of the tables.
Copyright 2007 John Wiley & Sons, Inc.
Related Tables
• Each table has a unique field called the ________ ______.
• Tables are related via matching ________.
• If the primary key in one table is the reference key to another
table, it is referred to as a ________ ______.
Copyright 2007 John Wiley & Sons, Inc.
Using a Database
• Designing and building a database and than storing data
in it are just the first steps that organizations take toward
using a database.
• Given that organizations use and rely heavily upon
databases, why are databases such powerful
organizational tools?
• What is the primary method of using a database to make
sense of the data it contains?
•
What is Structured Query Language (SQL).
Copyright 2007 John Wiley & Sons, Inc.
Using SQL
To write an SQL query, you define the fields to be
displayed, the tables to be searched, and the conditions
that are to be matched.
Copyright 2007 John Wiley & Sons, Inc.
Other Methods to Store Data,
Information, and Knowledge
•
•
In addition to using databases, there are
a number of other ways to store data,
information and knowledge.
These include (but are not limited to):
1.
2.
3.
4.
Copyright 2007 John Wiley & Sons, Inc.
Using Data Warehouses
• Databases are not the only or necessarily the best way
of storing data for all business needs.
• What is a data warehouse?
• A data warehouse can consist of transaction data. What
must be done to this transaction data before it can be
stored and retrieved from the data warehouse?
• What are three purposes for data warehouses?
–
–
–
Copyright 2007 John Wiley & Sons, Inc.
Database vs. Data Warehouse
Database
Data Warehouse
Supported Activity
Operational
Analytical
Response Time
Fast
Can be slow
Age of Data
Current transaction
Historical data
Scope
Limited area within
organization
Provides view of
entire organization
Data Variability
Changes often
Infrequent changes
Source
Transactions
Multiple sources
Data Model
Business rules
Aligns with overall
business structure
Copyright 2007 John Wiley & Sons, Inc.
Data Warehouses
•
•
•
•
Data warehouses are very large and work with tools that allow users to
more easily deal with vast amounts of data.
What is a data mart?
Data warehouses often provide support for organizing multidimensional
data (based on two or more characteristics.)
Retrieving data organized in this fashion is sometimes called slicing-anddicing.
Copyright 2007 John Wiley & Sons, Inc.
Using a Data Warehouse
What are four ways to use a data warehouse?
1.
2.
3.
4.
Copyright 2007 John Wiley & Sons, Inc.
Management Information Systems
What is the primary reason that businesses use captured and stored
data to create information?
One way to have information available is to store it in the form of
reports created by a management information system (MIS).
MIS typically generate three types of reports.
–
–
–
Give an example of each type of report at the
1. Individual (Personal) level –
2.
Organizational level -
Copyright 2007 John Wiley & Sons, Inc.
Document Management Systems
• More modern versions of some types of MIS are referred to as
document management systems (DMS).
• What is a DMS and how can it create business value for
organizations?
• What is imaging technology and how does it relate to DMS?
• What are workflow systems and how can DMS be used to support
workflow systems ?
Copyright 2007 John Wiley & Sons, Inc.
Knowledge Management
• Knowledge is the most difficult form of informational
resource to store and share.
• What are the two main types of knowledge? What are
examples of each type?
1.
2.
• Knowledge management involves recognizes,
generates, manages, and shares knowledge.
Copyright 2007 John Wiley & Sons, Inc.
Knowledge Management Systems
• ________ ________ are a form of knowledge
management that tries to capture and store the
knowledge of a human expert.
• Observation and interview techniques are used
to capture how an expert performs work and
makes decisions.
• They are a form of ________ ________ which
tries to provide computer applications that mimic
human intelligence.
• ________ ________(groupware) is often used
to support tacit knowledge management.
Copyright 2007 John Wiley & Sons, Inc.
Collaborative Tools
Collaborative Software Can …
Communication Tools
Conferencing Tools
Collaborative
Management Tools
Copyright 2007 John Wiley & Sons, Inc.
The IS Integration Problem
• Describe the IS integration problem.
• Solutions to the integration problem
include:
–
–
–
Copyright 2007 John Wiley & Sons, Inc.
Middleware
• What is middleware?
• An important class of middleware
technology that is designed to work with
Internet protocols is known as Web
services.
Copyright 2007 John Wiley & Sons, Inc.
Middleware
Copyright 2007 John Wiley & Sons, Inc.
Web Services
• What does a web service do?
• What standard data format is used to deliver the data
over the network? Why is this standard data format
useful?
• How do web services help companies create business
value?
• What is a mashup and what is an example of a mashup
used by businesses or individuals?
Copyright 2007 John Wiley & Sons, Inc.
Web Services
Copyright 2007 John Wiley & Sons, Inc.
Enterprise Resource Planning (ERP)
• Why are ERP systems important?
• How does an ERP link the data generated by an
organization’s business (functional) units?
• What are the main benefits of ERP systems?
• What are the primary disadvantages of ERP systems?
Copyright 2007 John Wiley & Sons, Inc.
Information Systems that
Support Business Activities
• There are a variety of information systems
that support business activities.
• These IS include
1.
2.
3.
• These are just a few of the many IS that
organizations use to support knowledge
work and business processes.
Copyright 2007 John Wiley & Sons, Inc.
Transactions
• Business transactions are critical to the
core activities of an organization.
• A transaction is a unit of work that has the
following characteristics (ACID):
– Atomicity:
– Consistency:
– Isolation:
– Durability:
Copyright 2007 John Wiley & Sons, Inc.
Transaction Processing Systems (TPS)
•
A TPS brings together the common components of IT
(data storage, data processing, data capture, and
software).
•
A TPS must control the flow of both the activities and data
involved in the transaction.
•
TPS must incorporate:
1.
2.
3.
Copyright 2007 John Wiley & Sons, Inc.
Transaction Processing Systems
Copyright 2007 John Wiley & Sons, Inc.
Types of TPS
• Batch transaction processing:
–
–
–
• Online transaction processing (OLTP):
–
–
–
Copyright 2007 John Wiley & Sons, Inc.
Functional IS
Functional information systems (FIS) focus on the activities of
the a department to improve its efficiency and effectiveness.
System
Description/Function
Accounting IS
Marketing IS
Human Resource IS
Financial IS
Manufacturing IS
Copyright 2007 John Wiley & Sons, Inc.
Workflow Management Systems
•
A workflow represents the steps, resources, input and output data, and tools
needed to complete a business process.
•
A workflow management system (WMS) or business process
management (BPM) focuses on a business process from beginning to end.
•
WMS enables modeling the steps of the business process to show the flow of
work along with the state of the components.
Copyright 2007 John Wiley & Sons, Inc.
Workflow Reference Model
Copyright 2007 John Wiley & Sons, Inc.
Business Intelligence
• What is Business intelligence (BI)?
–
• Data and information
must go through
several stages to be
used in decision
making.
• IT assists at every step
Copyright 2007 John Wiley & Sons, Inc.
Stages of Business Intelligence
Stage
Description
1. Data sourcing
2. Data analysis
3. Situation
awareness
4. Risk
assessment
5. Decision
support
Copyright 2007 John Wiley & Sons, Inc.
Decision Support Systems (DSS)
DSS help businesses use technology, data organization
and access, knowledge, and models to carry out decisionmaking.
Type of DSS
Focus/purpose
Communicationdriven DSS
Data-driven DSS
Document-driven
DSS
Knowledge-driven
DSS
Model-driven DSS
Copyright 2007 John Wiley & Sons, Inc.
Types of Models in Model-driven DSS
• Financial models –
• Statistical models –
• Optimization models –
• Simulation modeling –
Copyright 2007 John Wiley & Sons, Inc.