management 6 chapter information databases and business ... · organizing data in a traditional...

6.1 © 2010 by Pearson

6Chapter

Foundations ofBusiness Intelligence:

Databases andInformation

Management


LEARNING OBJECTIVES

Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases

and Information Management

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Describe how the problems of managing data resources in atraditional file environment are solved by a databasemanagement system

Describe the capabilities and value of a database managementsystem

Apply important database design principles

Evaluate tools and technologies for accessing informationfrom databases to improve business performance and decisionmaking

Assess the role of information policy, data administration, anddata quality assurance in the management of firm’s dataresources


UNDERSTANDING INFORMATION

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Data is a valuable organizational resource& should be managedIts usefulness depends to a large extenton how it is stored, organized, andaccessed/retrievedEmployees must be able to obtain andanalyze the many different levels, formats,and granularities of organizationalinformation to make decisions


Information Quality

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Business decisions are only as good as the qualityof the information used to make the decisions Characteristics of high quality information include:

AccuracyCompletenessConsistencyUniquenessTimeliness


Organizing Data in a Traditional File Environment

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File organization conceptsComputer system organizes data in a hierarchy

Field: Group of characters as word(s) or numberRecord: Group of related fieldsFile: Group of records of same typeDatabase: Group of related files

Record: Describes an entityEntity: Person, place, thing on which we storeinformation

Attribute: Each characteristic, or quality, describing entityE.g., Attributes Date or Grade belong to entity COURSE




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DatabaseA database is comprisedof one or more tables.Each database alsocontains a unique name. Microsoft Access is anexample of a databaseprogram that allows youto store, retrieve, andmanipulate data.

DATABASE FUNDAMENTALS



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The use of a traditional approach to file processingencourages each functional area in a corporation todevelop specialized applications and files.

Each application requires a unique data file that islikely to be a subset of the master file.

These subsets of the master file lead to dataredundancy and inconsistency, processinginflexibility, and wasted storage resources.


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Problems with the traditional file environment (filesmaintained separately by different departments)

Data redundancy and inconsistencyData redundancy: Presence of duplicate data in multiple filesData inconsistency: Same attribute has different values

Program-data dependence:When changes in program requires changes to data accessed byprogram

Lack of flexibilityPoor securityLack of data sharing and availability


and Information ManagementOrganizing Data in a Traditional File Environment


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DatabaseCollection of data organized to serve many applications bycentralizing data and controlling redundant data

Database management systemInterfaces between application programs and physical data filesSeparates logical and physical views of dataSolves problems of traditional file environment

Controls redundancyEliminates inconsistencyUncouples programs and dataEnables organization to central manage data and data security

The Database Approach to Data Management





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Database models include:Hierarchical database model – information isorganized into a tree-like structure (using parent/child relationships) in such a way that it cannothave too many relationshipsNetwork database model – a flexible way ofrepresenting objects and their relationshipsRelational database model – stores information inthe form of logically related two-dimensionaltables




Figure 6-3

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

Human Resources Database with Multiple ViewsThe Database Approach to Data Management


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Relational DBMSRepresent data as two-dimensional tables called relations or filesEach table contains data on entity and attributes

Table: grid of columns and rowsRows (tuples): Records for different entitiesFields (columns): Represents attribute for entityKey field: Field used to uniquely identify each recordPrimary key: Field in table used for key fieldsForeign key: Primary key used in second table as look-up field toidentify records from original table


and Information ManagementThe Database Approach to Data Management




Figure 6-4AA relational database organizes data in the form of two-dimensional tables.Illustrated here are tables for the entities SUPPLIER and PART showing howthey represent each entity and its attributes. Supplier_Number is a primarykey for the SUPPLIER table and a foreign key for the PART table.

Relational Database TablesThe Database Approach to Data Management




Figure 6-4B

Relational Database Tables (cont.)The Database Approach to Data Management


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Object-Oriented DBMS (OODBMS)Stores data and procedures as objectsCapable of managing graphics, multimedia, JavaappletsRelatively slow compared with relational DBMS forprocessing large numbers of transactionsHybrid object-relational DBMS: Provide capabilities ofboth OODBMS and relational DBMS




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Capabilities of Database Management SystemsData definition capability: Specifies structure of database content,used to create tables and define characteristics of fields

Data dictionary: Automated or manual file storing definitions ofdata elements and their characteristicsData manipulation language: Used to add, change, delete, retrievedata from database

Structured Query Language (SQL)Microsoft Access user tools for generation SQL

Many DBMS have report generation capabilities for creatingpolished reports (Crystal Reports)




DATABASE MANAGEMENT SYSTEMS

• Four components of a DBMS


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Distributing databases: Storing database in more thanone place

Partitioned: Separate locations store different parts of database

Replicated: Central database duplicated in entirety at differentlocations




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Distributing databases

Two main methods of distributing a databasePartitioned: Separate locations store different parts ofdatabaseReplicated: Central database duplicated in entirety atdifferent locations

AdvantagesReduced vulnerabilityIncreased responsiveness

DrawbacksDepartures from using standard definitionsSecurity problems




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 hasthe necessary data to serve its own local needs. The central database also can be replicated (b) at all remote locations.




Using Databases to Improve Business Performance and Decision Making



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Very large databases and systems require specialcapabilities, tools

To analyze large quantities of dataTo access data from multiple systems

Three key techniquesData warehousingData miningTools for accessing internal databases through theWeb




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Data warehouse:Stores current and historical data from many core operationaltransaction systemsConsolidates and standardizes information for use acrossenterprise, but data cannot be alteredData warehouse system will provide query, analysis, and reportingtools

Data marts:Subset of data warehouseSummarized or highly focused portion of firm’s data for use byspecific population of usersTypically focuses on single subject or line of business



DATA WAREHOUSEComponents of a Data Warehouse




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Business Intelligence:Tools for consolidating, analyzing, and providingaccess to vast amounts of data to help users makebetter business decisionsE.g., Harrah’s Entertainment analyzes customers todevelop gambling profiles and identify most profitablecustomersPrinciple tools include:

Software for database query and reportingOnline analytical processing (OLAP)Data mining



Business Intelligence

Figure 6-14A series of analytical toolsworks with data stored indatabases to find patternsand insights for helpingmanagers and employeesmake better decisions toimprove organizationalperformance.


and Information ManagementUsing Databases to Improve Business Performance and Decision Making




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Online analytical processing (OLAP)Supports multidimensional data analysis

Viewing data using multiple dimensionsEach aspect of information (product, pricing, cost,region, time period) is different dimensionE.g., how many washers sold in East in Junecompared with other regions?

OLAP enables rapid, online answers to ad hoc queriesOnline analytical processing, one of the three principletools for gathering business intelligence.





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Data mining:More discovery driven than OLAPFinds hidden patterns, relationships in large databases andinfers rules to predict future behaviorE.g., Finding patterns in customer data for one-to-onemarketing campaigns or to identify profitable customers.Types of information obtainable from data mining

Associations: Occurrences linked to single eventSequences: Events linked over timeClassification: Recognizes patterns that describe group to

which item belongsClustering: Similar to classification when no groups have been

defined; finds groupings within dataForecasting: Uses series of existing values to forecast what

other values will be





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Predictive analysisUses data mining techniques, historical data, andassumptions about future conditions to predictoutcomes of eventsE.g., Probability a customer will respond to an offer orpurchase a specific product

Text miningExtracts key elements from large unstructured data sets (e.g., stored e-mails)



Managing Data Resources

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Establishing an information policyFirm’s rules, procedures, roles for sharing, managing, standardizingdata

E.g., What employees are responsible for updating sensitiveemployee information

Data administration: Firm function responsible for specific policiesand procedures to manage dataData governance: Policies and processes for managing availability,usability, integrity, and security of enterprise data, especially as itrelates to government regulationsDatabase administration : Defining, organizing, implementing,maintaining database; performed by database design andmanagement group




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Ensuring data qualityMore than 25% of critical data in Fortune 1000company databases are inaccurate or incomplete

Most data quality problems stem from faulty input

Before new database in place, need to:

Identify and correct faulty data

Establish better routines for editing data oncedatabase in operation


and Information ManagementManaging Data Resources


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Data quality audit:Structured survey of the accuracy and level ofcompleteness of the data in an information system

Survey samples from data files, orSurvey end users for perceptions of quality

Data cleansingSoftware to detect and correct data that are incorrect,incomplete, improperly formatted, or redundantEnforces consistency among different sets of datafrom separate information systems


and Information ManagementManaging Data Resources


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management 6 chapter information databases and business ... · organizing data in a traditional...

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