Foundations of Business Intelligence: Databases and Information Management

TOPIC 1: Foundations of Business Intelligence: Databases and Information Management

TOPIC 1: Foundations of Business Intelligence: Databases and Information Management

1. How to Organizing Data in a Traditional File

Environment 2. The Database Approach to Data Management 3. Using Databases to Improve Business Performance

and Decision Making 4. Managing Data Resources

Goal #1: How to Organize Data in a Traditional File Environment

Adopted from: Laudon, K. C. & Laudon, J.P. (2014). Management information systems: Managing the digital firm (13th Ed). N.J.: Pearson.

An Entity in a Database

First Name

Last Name

Street

City

State

Zip

Telephone

John Jones 111 Main Anytown Ohio 22334 555-123-666

Problems with the Traditional File Environment Need For a Central Database

DEPT. A DEPT.B

DEPT. C

Problems with the Traditional File Environment

Data Redundancy and Inconsistency Program-Data Dependence Lack of Flexibility Poor Security Lack of Data Share and Availability

Problems with the Traditional File Environment

Data Redundancy and Inconsistency Program-Data Dependence Lack of Flexibility Poor Security Lack of Data Share and Availability

Problems with the Traditional File Environment

Data Redundancy and Inconsistency Program-Data Dependence Lack of Flexibility Poor Security Lack of Data Share and Availability

Problems with the Traditional File Environment

Data Redundancy and Inconsistency Program-Data Dependence Lack of Flexibility Poor Security Lack of Data Share and Availability

Problems with the Traditional File Environment

Data Redundancy and Inconsistency Program-Data Dependence Lack of Flexibility Poor Security Lack of Data Share and Availability

Problems with the Traditional File Environment

Data Redundancy and Inconsistency Program-Data Dependence Lack of Flexibility Poor Security Lack of Data Share and Availability

SUMMARY: Many problems such as data redundancy, program-

data dependence, inflexibility, poor data security, and inability to share data among applications have occurred with traditional file environments. Managers and workers must know and understand how databases are constructed so they know how to use the information resource to their advantage. Upper management must assign one department and/or point person to maintain, coordinate and manage a truly centralized database.

GOAL #2: The Database Approach to Data

Management

What is a Database Management System (DBMS)?

How a DBMS Solves the Problems of the Traditional File Environment

A Relational Database Table.

Relational Database Table

Customer Table Order Table Field Name Description Field Name Description Customer Name Self-Explanatory Order Number Primary Key Customer Address Self-Explanatory Order Item Self-Explanatory Customer ID Primary Key Number of Items Ordered Self-Explanatory Order Number Foreign Key Customer ID Foreign Key

Wrong way:

Name Address Telephone number John L. Jones 111 Main St. Anywhere,

OH 22334 555-123-6666

First Name

Middle Initial

Last Name

Street City State

Zip Telephone

John L. Jones 111 Main St.

Anywhere

OH 22334 555-123-6666

Right way:

Relational Database Tables

Operations of a Relational DBMS: Three basic operations are used to develop

relational databases: Select: Create a subset of records meeting the

stated criteria. Join: Combine related tables to provide more

information than individual tables. Project: Create a new table from subsets of

previous tables. Note on Cloud Computing

Capabilities of Database Management Systems

Data definition Data dictionary Querying and Reporting using Data

manipulation language

Capabilities of Database Management Systems

Data definition Data dictionary Querying and Reporting using Data

manipulation language

Capabilities of Database Management Systems

Data definition Data dictionary Querying and Reporting using Data

manipulation language

Designing Databases and Normalization

Designing Databases and Normalization

Your goals for creating a good data model are: ○ Including all entities and the relationships

among them ○ Organizing data to minimize redundancy ○ Maximizing data accuracy ○ Making data easily accessible

SUMMARY: Relational databases solve many of the problems

inherent with traditional file environments. Database Management Systems have three critical components: the data definition, the data dictionary, and the data manipulation language. Managers should make sure that end users are fully involved in properly designing organizational databases using normalization and entity-relationship diagrams

GOAL #3: Using Databases to Improve Business Performance and Decision Making Data Warehouses

Data Marts Business Intelligence Multidimensional Data Analysis Data Mining Databases and the Web

Data Warehouses

Adopted from: Laudon, K. C. & Laudon, J.P. (2014). Management information systems: Managing the digital firm (13th Ed). N.J.: Pearson.

Component of a database warehouse

Data Marts Business Intelligence Data mining

Component of a database warehouse

Data Marts Business Intelligence

Adopted from: Laudon, K. C. & Laudon, J.P. (2014). Management information systems: Managing the digital firm (13th Ed). N.J.: Pearson.

Component of a database warehouse

Data Marts Business Intelligence Data mining

Associations: determine occurrences linked to a single event

Sequences: determine events that are linked over time Classification: discover characteristics of customers and

make predictions about their behavior Clustering: discover groups within data Forecasting: use existing values to forecast what other

values will be

Databases and the Web

Adopted from: Laudon, K. C. & Laudon, J.P. (2014). Management information systems: Managing the digital firm (13th Ed). N.J.: Pearson.

Goal #4: Managing Data Resources

Establishing an Information Policy Data governance Ensuring Data Quality

Goal #4: Managing Data Resources

Establishing an Information Policy Data governance Ensuring Data Quality

Goal #4: Managing Data Resources

Establishing an Information Policy Data governance Ensuring Data Quality

Goal #4: Managing Data Resources

Establishing an Information Policy Data governance Ensuring Data Quality

Reference

Laudon, K. C. & Laudon, J.P. (2014). Management information systems: Managing the digital firm (13th Ed). N.J.: Pearson.