Foundation of Business Intelligence: Databases

and Managing InformationChapter 6

Problems of managing Data Resources in a Traditional File Environment

Effective IS provides user with Accurate, timely and relevant information

Many businesses do not have this kind of information

A computer system organizes data in a hierarchy that starts with bits and bytes and progresses to fields, records, files, and databases.

Traditional File Environment- some terms: Bit- smallest Byte- 8 bits multiple Field- column Record- row Entity- objective, organization Attribute- characteristics, age File- table Database- multiple files related- RDBMS

File Organization Terms and Concepts

The Data Hierarchy

Figure 6-1

A computer system organizes data in a hierarchy that starts with the bit, which represents either a 0 or a 1. Bits can be grouped to form a byte to represent one character, number, or symbol. Bytes can be grouped to form a field, and related fields can be grouped to form a record. Related records can be collected to form a file, and related files can be organized into a database.

Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases

and Information Management

Traditional File Processing

Figure 6-2

The use of a traditional approach to file processing encourages each functional area in a corporation to develop specialized applications and files. Each application requires a unique data file that is likely to be a subset of the master file. These subsets of the master file lead to data redundancy and inconsistency, processing inflexibility, and wasted storage resources.

Organizing Data in a Traditional File Environment

Organization has different departments. Each developed their own systems and files

Data redundancy and inconsistency:It is the presence of duplicate data in multiple data files so

that the same data are stopped in more than place or location. Data redundancy occurs when different groups in an organization independently collect the same piece of data and store it independently of each other.

Program data dependence:It is the coupling of data stored in files and the specific

programs required to update and maintain those files such that changes in programs required to update and maintain those files such that changes in programs require changes to the data

Problems with the Traditional Environment

Lack of flexibility:A traditional file system can deliver routine

scheduled reports after existence programming efforts

Poor security:• Lack of control, widespread• Who is accessing and making changes

Lack of Data sharing and Availability

•Information cannot be related

•Impossible to share or access in a timely manner.

Collection of data organized to serve many applications efficiently by centralizing the data and controlling the redundant data.

Database management system: Is software that permits an organization to centralize data, manage them efficiently

and provides access to the stored data by application programs.• Interfaces between application programs and physical data files• Separates logical and physical views of data• Solves problems of traditional file environment• Controls redundancy by minimizing isolated files in which same data is

repeated.• Eliminated inconsistency• Enables central management and security

What is a Database?

DATA DEFINITION CAPABILITY, DATA DICTIONARY CAPABILITY AND DATA MANPULATION LANGUAGE (SQL)

Software that permits an organization to centralize data, manages them efficiently, and provides access to the stored data by application programs.

Separates the Logical and physical view of the data

DATABASE MANAGEMENT SYSTEM

The Database Approach to Data Management

Figure 6-3

A single human resources database provides many different views of data, depending on the information requirements of the user. Illustrated here are two possible views, one of interest to a benefits specialist and one of interest to a member of the company’s payroll department.

Human Resources Database with Multiple Views

Relational DBMSMost popular type of DBMSRepresents data into two dimensional tables

called relationsConcept of primary and foreign keyRDBMS have three basic operations:

SELECT, JOIN, PROJECTQUERYING AND REPORTING

Types of DBMS

The Database Approach to Data Management

Figure 6-4A

A relational database organizes data in the form of two-dimensional tables. Illustrated here are tables for the entities SUPPLIER and PART showing how they represent each entity and its attributes. Supplier_Number is a primary key for the SUPPLIER table and a foreign key for the PART table.

Relational Database Tables

The Database Approach to Data Management

Figure 6-4B

Relational Database Tables (cont.)

Databases that can store drawings, images, videos, photographs and voices along with the structured numbers and characters.

Relatively slow than RDBMS

HYBRID OODBMS- it has the capabilities of RDBMS and OODBMS

OODBMS (OBJECT ORENTED DBMS)

PRINCIPAL TOOLS AND TECHNOLOGIES FOR ACCESSING INFORMATION FROM DATABASE TO IMPROVE BUSINESS PERFORMANCE AND DECISION MAKING

Businesses use their databases to keep track of basic transactions such as paying employees and suppliers, processing orders, keeping track of customers etc;

In large databases from separate functions large amount of data is stored and there are special capabilities and tools for analyzing large amount of data and for accessing this data

These capabilities include: Data warehousing Data mining Tools for accessing internal databases

through the web

DBMS includes tools for accessing and manipulating information in databases. Most DBMS have a specialized language called a data manipulation language, that is used to add, change, delete, and retrieve the data in the database.

Querying and Reporting

Database design also considers how the data are to be distributed. Information systems can be designed with a centralized database that is used by a single central processor or by multiple processors in a client/ server network.

Distributing Databases

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 central database also can be replicated (b) at all remote locations.

The Database Approach to Data Management

Businesses use their databases to keep track of basic transactions, such as paying suppliers, processing orders, keeping track of customers and paying employees.

Using databases to improve Business performance and Decision Making

If data is required from:Different departmentsShould be completeUpdatedPast DataThen data warehousing solves your problems

DATA WAREHOUSING

DATA WAREHOUSE CONSOLIDATES AND STANDARDIZES INFORMATION FROM DIFFERENT OPERATIONAL DATABASES SO THAT THE INFORMATION CAN BE USED ACROSS THE ENTERPRISE FOR MANAGEMENT ANALYSIS AND DECISION MAKING

Data can be accessed but cannot be altered

Components of a Data Warehouse

Figure 6-13

The data warehouse extracts current and historical data from multiple operational systems inside the organization. These data are combined with data from external sources and reorganized into a central database designed for management reporting and analysis. The information directory provides users with information about the data available in the warehouse.

Using Databases to Improve Business Performance and Decision Making

Data marts focuses on single subject area online of business

Decentralized Subsets of data warehouses which is highly focused or summarized. It is placed in separate database for a specific population of the users

DATA MARTS

Once data has been captured and organized it is available for further analysis

Several tools are available for analyzing data to see new patterns, relationships and insights.

The tools for consolidating analyzing and providing access to vast amount of data to help users make better decisions are often referred as “Business Intelligence (BI)”

BUSINESS INTELLIGENCE, MULTIDIMENSIONAL, DATA ANALYSIS AND DATA MINING

Business Intelligence

Figure 6-14

A series of analytical tools works with data stored in databases to find patterns and insights for helping managers and employees make better decisions to improve organizational performance.

Using Databases to Improve Business Performance and Decision Making

Software for querying and reporting Tools for multidimensional data analysis

(Online analytical processing OLAP) Data mining

These Include..

Lets assume you sell four products in three different regions of the country?

If you want an answer for a simple question like “how many of the Product A was sold in the last quarter?”. Simple query would answer the question but lets say the question is “how many of product A was sold in each of your sales region and compare the actual and projected sales?”

OLAP (Online Analytical Processing)

For that you will need OLAP which will enable user to se same data in different ways

Multidimensional Data Model

Figure 6-15

The view that is showing is product versus region. If you rotate the cube 90 degrees, the face that will show is product versus actual and projected sales. If you rotate the cube 90 degrees again, you will see region versus actual and projected sales. Other views are possible.

Using Databases to Improve Business Performance and Decision Making

Data mining is the process of extracting patterns from data. Data mining is becoming an increasingly important tool to transform this data into information.

It is commonly used in a wide range of profiling practices, such as marketing, surveillance, fraud detection and scientific discovery

Data mining can be used to uncover patterns in data but is often carried out only on samples of data

The mining process will be ineffective if the samples are not a good representation of the larger body of data

DATA MINING

Data mining cannot discover patterns that may be present in the larger body of data if those patterns are not present in the sample being “mined”. Inability to find patterns may become a cause for some disputes between customers and service providers. Therefore, data mining is not foolproof, but may be useful if sufficiently representative data samples are collected

Database and the Web If you have used web to order something

online then you are using a website which is linked to a database

There are number of advantages in using the web to access an organization internal databases

WEB BROWSER SOFTWARE IS MUCH EASIER TO HANDLE

Text Mining and Web Mining

Establishing an Information Policy: An information policy specifies the

organization’s rules for sharing, dissemination, acquiring, standardizing, classifying and inventorying information. Information policy lays out specific procedures and accountabilities, identifying which users and organizational units can share information, where information can be distributed and who is responsible or updating and maintaining the information.

Managing Data Resources

A well-designed database and information policy will go a long way towards ensuring that the business has the information it needs. However, additional steps must be taken to ensure that the data in organizational databases are accurate and remain reliable.

ENSURING DATA QUALITY