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6
Chapter
Foundations ofBusiness Intelligence:
Databases and
InformationManagement
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Distributing databases: Storing database in more than one place
Two main methods of distributing a database Partitioned: Separate locations store different parts of database
Replicated: Central database duplicated in entirety at different locations.
Advantages Reduced vulnerability
increased service, responsiveness
Run on smaller computers
Drawbacks May depart from standard definitions Pose Security problems access to sensitive data.
Management Information SystemsChapter 6 Foundations of BusinessIntelligence: Databasesand Information Management
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Distributed Databases
Figure 6-12
There are alternative ways of distributing a database. The central database can be partitioned (a)so that each remote processor has the necessary data to serve its own local needs. The centraldatabase also can be replicated (b) at all remote locations.
The Database Approach to Data Management
Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
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Using Databases to Improve Business Performance and Decision Making
Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
Large companies with very large databases and systems forseparate functions
Special capabilities, tools required to
To analyze large quantities of data To access data from multiple Systems
Three key techniques Data warehousing Data mining Tools for accessing internal databases through the Web
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Using Databases to Improve Business Performance and Decision Making
Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
Database warehouses
Data warehouse:
Stores current and historical data from many core operational
transaction systems Consolidates and standardizes information for use across enterprise,
but data cannot be altered
Data warehouse system will provide query, analysis, and reportingtools
Data marts: Subset of data warehouse with summarized or highly focused portion
of firms data for use by specific population of users
Typically focuses on single subject or line of business
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Components of a Data Warehouse
Figure 6-13
The data warehouse extracts current and historical data from multiple operational systems inside theorganization. These data are combined with data from external sources and reorganized into a centraldatabase designed for management reporting and analysis. The information directory provides userswith information about the data available in the warehouse.
Using Databases to Improve Business Performance and Decision Making
Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
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Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
Once data is captured and organized in datawarehouse and data marts
Further analysis can be done on it.
Series of tools enables users
To analyze the data
See new patterns Relationships and insights
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Using Databases to Improve Business Performance and Decision Making
Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
Business Intelligence:
Tools for consolidating, analyzing, and providing accessto vast amounts of data to help users make better
business decisions
Principle tools include:
Software for database query and reporting
Online analytical processing (OLAP)
Data mining
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Business Intelligence
Figure 6-14
A series ofanalytical toolsworks with datastored indatabases to findpatterns andinsights forhelpingmanagers andemployees makebetter decisionsto improveorganizationalperformance.
Using Databases to Improve Business Performance and Decision Making
Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
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Using Databases to Improve Business Performance and Decision Making
Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
Online analytical processing (OLAP)
Sophisticated data analysis
Supports multidimensional data analysis
Enables viewing data using multiple dimensions
Each aspect of information (product, pricing, cost,region, time period) is different dimension
E.g. how many washers sold in each of the salesregion ?compare actual results with projected results.
Complex requests
OLAP enables rapid, online answers to queries
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Multidimensional Data Model
Figure 6-15
The view that isshowing isproduct versusregion. If yourotate the cube 90degrees, the face
that will show isproduct versusactual andprojected sales. Ifyou rotate thecube 90 degreesagain, you will seeregion versus
actual andprojected sales.Other views arepossible.
Using Databases to Improve Business Performance and Decision Making
Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
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Using Databases to Improve Business Performance and Decision Making
Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
Data mining:
More discovery driven than OLAP
Provides insights that cannot be obtained from OLAP.
Finds hidden patterns, relationships in large databases
Infers rules to predict future behavior
The patterns and rules are used to guide decision makingand forecast the effect of those decisions
Popularly used to provide detailed analyses of patterns in
customer data for one-to-one marketing campaigns or toidentify profitable customers.
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Using Databases to Improve Business Performance and Decision Making
Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
Types of information obtainable from data mining
Associations:Occurrences linked to single event
Ex: Chips purchased then a drink is purchased 65%,but when thereis a promotion then drink is bought 85% times.
Sequences:Events linked over time
Ex:House is purchased, Refrigerator will be purchased in the nexttwo weeks 65% of the time.
Classification:Recognizes patterns that describe group to
which item belongs. Group of customers which will leave. Clustering:Similar to classification when no groups have been
defined; finds groupings within data, customer demographics.
Forecasting:Uses series of existing values to forecast whatother values will be,Ex future value of sales figure.
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Using Databases to Improve Business Performance and Decision Making
Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
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Predictive analysis
Uses data mining techniques, historical data, andassumptions about future conditions to predict outcomes of
events E.g. Probability a customer will respond to an offer or
purchase a specific product.
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Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
Text mining Extracts key elements from large unstructured data sets (e.g.,
e-mails, memos, survey responses) Discover patterns and relationships and summarizes info.
Web Mining
Info from Web can be mined for patterns, trends and insights in to customerbehavior. The discovery and analysis of useful patterns and info from Web is called Web
mining.
Businesses use Web mining to help understand customer behavior,
evaluate the effectiveness of a website. Success of a marketing campaign. Ex marketers use google trends and services to learn what people are interested in
and what are they interested in buying.
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Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
Web Mining:
Content mining Extracting knowledge from content of web pages
Structure mining Ex links pointing to a document
Usage mining Activities of websites user.
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Using Databases to Improve Business Performance and Decision Making
Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
Databases and the Web Many companies use Web to make some internal databases
available to customers or partners
Typical configuration includes: Web server
Application server/middleware
Database server (hosting DBM)
Advantages of using Web for database access:
Ease of use of browser software
Web interface requires few or no changes to database
Inexpensive to add Web interface to system
M I f i S
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Linking Internal Databases to the Web
Figure 6-16
Web browser communicates with web server using HTML commands.Html commands Converted to SQL.DBMS receives the SQL Request and getthe required data. Application Server get the data from the database back toweb server in the form of webpage to the end user.
Users access an organizations internal database through the Web using
their desktop PCs and Web browser software.
Using Databases to Improve Business Performance and Decision Making
Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
M t I f ti S t
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The InternetMovieDatabaseWeb site islinked to amassivedatabase thatincludes
summaries,castinformation,and actorbiographiesfor almostevery filmever released.
Using Databases to Improve Business Performance and Decision Making
Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases
and Information Management
Chapter 6 Foundations of Business Intelligence:
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Chapter 6 Foundations of Business Intelligence:Databases
and Information ManagementManaging Data Resources
Read the Interactive Session: Technology, and thendiscuss the following questions:
What kind of databases and database servers does My
Space use? Why is database technology so important for a
business such asMy Space?
How effectively does My Space organize and store thedata on its site? What data management problems have arisen? How
has My Space solved or attempted to solve theseproblems.
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