Explain the four primary traits that determine the value of information.
-
Upload
griffith-newton -
Category
Documents
-
view
637 -
download
0
description
Transcript of Explain the four primary traits that determine the value of information.
Chapter 6McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 6
6-6-22
1. Explain the four primary traits that determine the value of information.
2. Describe a database, a database management system, and the relational database model.
3. Identify the business advantages of a relational database.
4. Explain the business benefits of a data-driven website.5. Define a data warehouse and provide a few reasons it
can make a manager more effective.6. Explain ETL and the role of a data mart in business.7. Define data mining and explain the three common
forms for mining structured and unstructured data.8. Identify the advantages of using business intelligence
to support managerial decision making.
CHAPTER 6: LEARNING OUTCOMES
Chapter 6
6-6-33
THE BUSINESS BENEFITS OF HIGH-QUALITY INFORMATION
• Successfully collecting, compiling, sorting, and analyzing information can provide tremendous insight into how an organization is performing
• Information Type: Transactional and Analytical
• Transactional Information—Encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational tasks
• Analytical Information—Encompasses all organizational information, and its primary purpose is to support the performing of managerial analysis tasks
Chapter 6
6-6-44
THE BUSINESS BENEFITS OF HIGH-QUALITY INFORMATION
• Information Timeliness Real-time Information—Immediate, up-to-date
information
Real-time System—Provides real-time information in response to requests.
• Information Quality Common characteristics of high-quality
information:o Accurate, Complete, Consistent, Unique, and Timely
• Information Governance Data governance
Chapter 6
6-6-55
• Database—Maintains information about various types of objects, events, people, and places
• Database Management Systems (DBMS)—Allows users to create, read, update, and delete data in a relational database
• Data Element—The smallest or basic unit of information
• Data Model—Logical data structures that detail the relationships among data elements using graphics or pictures
• Metadata—Provides details about data
• Data Dictionary—Compiles all of the metadata about the data elements in the data model
STORING INFORMATION IN A RELATIONAL DATABASE MANAGEMENT SYSTEM
Chapter 6
6-6-66
STORING INFORMATION IN A RELATIONAL DATABASE MANAGEMENT SYSTEM
• Storing Data Elements in Entities and Attributes Entity—A person, place, thing, transaction, or event
about which information is stored Attribute—The data elements associated with an entity Record—A collection of related data elements
• Creating Relationships Through Keys Primary Key—A field (or group of fields) that uniquely
identifies a given entity in a table
Foreign Key—A primary key of one table that appears an attribute in another table and acts to provide a logical relationship among the two tables
Chapter 6
6-6-77
USING A RELATIONAL DATABASE FOR BUSINESS
ADVANTAGES• Increased Flexibility
A database needs to handle changes quickly and easily, just as any business needs to be able to doo Physical View—Deals with the physical storage of
information on a storage deviceo Logical View—Focuses on how individual users logically
access information to meet their own particular business needs
• Increased Scalability and Performance Scalability—Refers to how well a system can adapt
to increased demands Performance—Measures how quickly a system
performs a certain process or transaction
Chapter 6
6-6-88
USING A RELATIONAL DATABASE FOR BUSINESS
ADVANTAGES• Reduced Data Redundancy
Data Redundancy—The duplication of data or storing the same information in multiple places
Inconsistency is one of the primary problems with redundant information
• Increased Information Integrity (Quality) Information Integrity—Measures the quality
of information Integrity Constraint—Rules that help ensure
the quality of informationo Relational integrity constrainto Business-critical integrity constraint
Chapter 6
6-6-99
USING A RELATIONAL DATABASE FOR BUSINESS
ADVANTAGES
• Increased Information Security
Information is an organizational asset and must be protected
• Databases offer several security features:
Password—Provides authentication of the user
Access Level—Determines who has access to the different types of information
Access Control—Determines types of user access, such as read-only access
Chapter 6
6-6-1010
DRIVING WEBSITES WITH DATA
• Data-Driven Websites—An interactive website kept constantly updated and relevant to the needs of its customers using a database
• Data-driven website advantages:
Easy to manage content
Easy to store large amounts of data
Easy to eliminate human errors
Chapter 6
6-6-1111
THE BUSINESS BENEFITS OF DATA WAREHOUSING
• Data warehouses extend the transformation of data into information
• The data warehouse provided the ability to support decision making without disrupting the day-to-day operations
• Data Warehouse—A logical collection of information – gathered from many different operational databases – that supports business analysis activities and decision-making tasks
• The primary purpose of a data warehouse is to aggregate information throughout an organization into a single repository for decision-making purposes
Chapter 6
6-6-1212
PERFORMING BUSINESS ANALYSIS
WITH DATA MARTS• Extraction, Transformation, and Loading (ETL)
—A process that extracts information from internal and external databases, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouse
• Multidimensional Analysis Dimension—A particular attribute of information
Cube—Common term for the representation of multidimensional information
• Information Cleansing or Scrubbing—A process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information
Chapter 6
6-6-1313
UNCOVERING TRENDS AND PATTERNS WITH DATA MINING
• Data Mining—The process of analyzing data to extract information not offered by the raw data alone
• Data-mining Tools—Use a variety of techniques to find patterns and relationships in large volumes of information
• Structured Data—Data already in a database or a spreadsheet
• Unstructured Data—Data does not exist in a fixed location and can include text documents, PDFs, voice messages, emails
• Text Mining—Analyzes unstructured data to find trends and patterns in words and sentences
• Web Mining—Analyzes unstructured data associated with websites to identify consumer behavior and website navigation
Chapter 6
6-6-1414
• Cluster Analysis—A technique used to divide an information set into mutually exclusive groups
• Association Detection—Reveals the relationship between variables along with the nature and frequency of the relationships
Market Basket Analysis
• Statistical Analysis—Performs such functions as information correlations, distributions, calculations, and variance analysis
Forecast and Time-Series Information
UNCOVERING TRENDS AND PATTERNS WITH DATA MINING
Chapter 6
6-6-1515
SUPPORTING DECISIONS WITH
BUSINESS INTELLIGENCE• The Problem: Data Rich, Information Poor
Businesses face a data explosion as digital images, email in-boxes, and broadband connections doubles every year
• The Solution: Business Intelligence BI enables business users to receive data for analysis
that is:o Reliableo Consistento Understandableo Easily Manipulated