Foundation of Business Intelligence Databases and Managing Information

Foundation of Business Intelligence: Databases and Managing Information Chapter 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

File Organization Terms and Concepts 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: v Bit- smallest v Byte- 8 bits multiple v Field- column v Record- row v Entity- objective, organization v Attribute- characteristics, age v File- table v Database- multiple files related- RDBMS

Management Information Systems Chapter 6 Foundations of Business Intelligence: Databases and Information Management The Data Hierarchy 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. Figure 6 -1

Organizing Data in a Traditional File Environment 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. Figure 6 -2

Problems with the Traditional 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 require changes to the data

� 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.

What is a Database? � � 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

DATABASE MANAGEMENT SYSTEM 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

The Database Approach to Data Management Human Resources Database with Multiple Views 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. Figure 6 -3

Types of DBMS � Relational DBMS v Most popular type of DBMS v Represents data into two dimensional tables called relations v Concept of primary and foreign key v RDBMS have three basic operations: SELECT, JOIN, PROJECT v QUERYING AND REPORTING

The Database Approach to Data Management Relational Database Tables 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. Figure 6 -4 A

The Database Approach to Data Management Relational Database Tables (cont. ) Figure 6 -4 B

OODBMS (OBJECT ORENTED DBMS) � 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

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

Querying and Reporting 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.

Distributing Databases 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.

The Database Approach to Data Management Distributed Databases There 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. Figure 6 -12

Using databases to improve Business performance and Decision Making � Businesses use their databases to keep track of basic transactions, such as paying suppliers, processing orders, keeping track of customers and paying employees.

DATA WAREHOUSING If data is required from: v Different departments v Should be complete v Updated v Past Data Then data warehousing solves your problems

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

Using Databases to Improve Business Performance and Decision Making Components of a Data Warehouse 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. Figure 6 -13

DATA MARTS � 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

BUSINESS INTELLIGENCE, MULTIDIMENSIONAL, DATA ANALYSIS AND DATA MINING � 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)”

Using Databases to Improve Business Performance and Decision Making Business Intelligence 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. Figure 6 -14

These Include. . � Software for querying and reporting � Tools for multidimensional data analysis (Online analytical processing OLAP) � Data mining

OLAP (Online Analytical Processing) � 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? ”

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

Using Databases to Improve Business Performance and Decision Making Multidimensional Data Model 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. Figure 6 -15

DATA MINING � 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 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

Text Mining and Web Mining � 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

Managing Data Resources � 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.

ENSURING DATA QUALITY �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.