WEEK 4 –

Chapter 3

Data Management, Business Intelligence, and Data Analytics Review Questions

3.1 Data Management and Database Technologies

1. Describe a database and a database management system (DBMS). Database is a

collection of dataSoftware system for creating and managing databases. (organized
way to store, access and manage data)

3. Why are data in databases volatile? Because they change frequently

Consistently updated

5. Describe the purpose and benefits of data management. Plan or procedure used to
control, protect and deliver the data Benefits:Higher security Less legal liability
Improved sales and marketing strategies Improved data governance6. What is a
relational database management system? Provides access to data using a declarative
language. Such as HTML, SQLDeclarative language simplifies data access by
requiring that users only specify what data they want. Examples are Hypertext Markup
Language (HTML) and Structured Query Language (SQL) 3.2 Centralized and
Distributed Database Architectures 1. Describe the data life cycle. The data life cycle
is a model that illustrates the way data travel through an organization. The three
principles of data life cycle are principle of diminishing data value, principle of90/90 data
use and principle of data context.Principle of diminishing data value- value of data
diminish as they age.principle of 90/90 data use- after 90days data becomes dirty
dataprinciple of data context- capability to capture,process,format and distribute data

3. What are the consequences of not cleaning ‘dirty data’?poor judgement increase in legal
liabilityLoss of business when sales opportunities are missedInability to make proper business
decisionsCostly to the organization in terms of money (cost to prevent and correct errors) 5. Discuss
how data ownership and organizational policies affect the quality of an organization’s data. When
there is no accountability No policies and procedures.Inconsistent data format (unstructured). 3.3
Data Warehouses 5. What is an advantage of an enterprise data warehouse (EDW)? Refine data,
eliminating redundant information and improving overall data quality.Prevents volatility and data is
more stable.Enhance data quality Quick and easy access to data 7. What types of decisions can
benefit from a data warehouse? Sales- calculate sales profitabilityFinancial- provides real-time data
for credit termsMarketing – marketing program effectiveness.Tactical decision making- marketing and
forecasting and salesStrategical decision making- forecasting, financing 3.4 Big Data Analytics and
Data Discovery 1. Why are human expertise and judgment important to data analytics? Give an
example.Human expertise is needed to interpret the output of analytics.Example in hospital data is
interpreted by doctors. 4. How can manufacturers and health care benefit from data analytics? 1. Can
be used in research and development processes 8. What are the basic steps involved in text analytics? 1.
Exploring – documents are explored, e.g word count in a document collection2. Preprocessing – before
analysis of content, text may need to be preprocessed to standardize it.

3. Categorizing and modeling-

content is then categorized
3.5 Business Intelligence
and Electronic Records
Management
4. What are the steps in a BI
governance program? (7)
1. Articulate business strategies
2. Set targets
3. Identify KPIs
4. List KPIs
5. Create a plan
6. Estimate the cost (cost vs
benefit analysis)
7. Access and update business
strategies
5. What four factors are
contributing to increased use of
BI?
1. Smart devices everywhere-
24/7 access
2. Data is big business- support
decisions and actions
3. Advanced BI and Analytics –
ask questions
4. Cloud Enabled BI and
Analytics- low cost
DISCUSS: Critical
Thinking Questions
3. List three types of waste or
damages that data errors can
cause.
 Loss of business
 Cost to prevent errors
 Cost to correct errors
6. What are the tactical and
strategic benefits of big data
analytics?
Tactical- prediction about
organization (forecasting),
reduce overtime, ability to
respond
quickly and accurately to
changes in market conditions
Strategy- understanding
customer behavior so sales can
improve and so business can
develop and build new products
in the future.
9. Explain the principle of 90/90
data use.
 After 90 days data becomes
dirty data.
13. What are the operational
benefits and competitive
advantages of business
intelligence?
Operational benefits- helps
lower level managers to make
day to day decisions e.g what to
order and how to order , when
payment is due and also helps to
avoid stock ou
3.5 Business Intelligence
and Electronic Records
Management
4. What are the steps in a BI
governance program? (7)
1. Articulate business strategies
2. Set targets
3. Identify KPIs
4. List KPIs
5. Create a plan
6. Estimate the cost (cost vs
benefit analysis)
7. Access and update business
strategies
5. What four factors are
contributing to increased use of
BI?
1. Smart devices everywhere-
24/7 access
2. Data is big business- support
decisions and actions
3. Advanced BI and Analytics –
ask questions
4. Cloud Enabled BI and
Analytics- low cost
DISCUSS: Critical
Thinking Questions
3. List three types of waste or
damages that data errors can
cause.
 Loss of business
 Cost to prevent errors
 Cost to correct errors
6. What are the tactical and
strategic benefits of big data
analytics?
Tactical- prediction about
organization (forecasting),
reduce overtime, ability to
respond
quickly and accurately to
changes in market conditions
Strategy- understanding
customer behavior so sales can
improve and so business can
develop and build new products
in the future.
9. Explain the principle of 90/90
data use.
 After 90 days data becomes
dirty data.
13. What are the operational
benefits and competitive
advantages of business
intelligence?
Operational benefits- helps
lower level managers to make
day to day decisions e.g what to
order and how to order , when
payment is due and also helps to
avoid stock ou
3.5 Business Intelligence and Electronic Records Management
 4. What are the steps in a BI governance program? (7)1. Articulate business strategies2. Set targets3.
Identify KPIs4. List KPIs 5. Create a plan 6. Estimate the cost (cost vs benefit analysis) 7. Access and
update business strategies 5. What four factors are contributing to increased use of BI? 1. Smart devices
everywhere-24/7 access2. Data is big business- support decisions and actions3. Advanced BI and
Analytics – ask questions4. Cloud Enabled BI and Analytics- low cost DISCUSS: Critical Thinking Questions
3. List three types of waste or damages that data errors can cause. Loss of business Cost to prevent
errors Cost to correct errors6. What are the tactical and strategic benefits of big data analytics? Tactical-
prediction about organization (forecasting), reduce overtime, ability to respond quickly and accurately
to changes in market conditions Strategy- understanding customer behavior so sales can improve and so
business can develop and build new products in the future. 9. Explain the principle of 90/90 data use.
After 90 days data becomes dirty data. 13. What are the operational benefits and competitive
advantages of business intelligence? Operational benefits- helps lower level managers to make day to
day decisions e.g what to order and how to order , when payment is due and also helps to avoid stock
out

Competitive – it consolidates reports from internal and external sources that will help mangers to make
healthy and proper decisions on the future of the business to remain competitive in the market Business
Cases Case 3.2 Business Case: Big Data Analytics is the “Magic Sauce” for Revitalizing McDonald’s 1.
Explain McDonald’s mission and responsibilities. To move from product oriented to customer oriented.
(mission)Retain its loyal customers (responsibilities)Attract new customers (responsibilities) 2. What
limitation did McDonald’s face in gaining data that was meaningful to decision making? Average based
matrix It was solved by a change into tend analytics3. Describe trend analytics. Uses historical data
collected over a period of time to predict future trends. McDonalds have analyzed and visualized the
flaws in individual stores 4. Is McDonald’s product oriented or customer oriented? Customer oriented
through provision of wi-fi which has helped to retain market share in the fast-food industry. 5. Why is
the ability to identify patterns and relationships critical to McDonald’s operations? Helps to identify
issues which have negative impacts on customers. E.g improvement in the drive through experiences
and breakfast menus

Summary
4.1 Data Management and
Database Technologies
 Data management manages
the flow of data
 Objectives of data
management include
maintaining accuracy of data,
data security and
legal requirements
 Goal of data management-
transform raw data into usable
information.
 Benefits of data
management – higher security,
greater compliance, improved
data
governance
 Costs of data management-
difficult and expensive since
data is scattered, increased
volume of data and redundant
data
 Data management
technologies include databases,
data warehouses, data marts and
business intelligence
 Databases store data
 Data warehouses integrated
collection of data.
 Data marts are small scale
data warehouses. Subsets of
data
 Data centers- facilities
containing components that
deliver data
 Data mining- searching data
in the data warehouse.
 Data dictionary – directory
containing metadata
 Metadata- data which has
information about other data.
 Business intelligences-
process data and do statistical
analysis
 DBMSs is a software used
to manage and update data
 DBMSs functions include:
 data filtering-inspect data
for errors
 data integrity- correct and
verify consistency of data
 data access – authorized
access to data
 data synchronization-
integrate, match or link data
 data security- check and
control data integrity
 Stand-alone systems result
in data redundancy,
inconsistency, and isolation.
 Database management
systems help solve the data
problems of file based system
 advantages of NoSQL are: -
high performance – greater
flexibility –easy distribution of
data
 Relational database stored
data in rows and columns
 Relational management
systems provide access to data
using a declarative language.
 Online transaction
processing systems- manage
transaction data, which are
volatile.
 Online analytics processing
system -is means of organizing
large business databases
4.2 Centralized and Distributed
Database Architectures
 2 types of databases are
centralized and distributed
databases
 Centralized database store
data is a single central computer
 Distributed database stores
portions of data on multiple
computers figure 3.6 & 3.7. pg
74
 Benefits of centralized
database are better control over
data and better IT security
 Benefits of distributed
database is that it allows both
local and remote access
 Types of databases :
Summary 4.1 Data Management and Database Technologies Data management manages the flow of
data Objectives of data management include maintaining accuracy of data, data security and legal
requirementsGoal of data management- transform raw data into usable information. Benefits of data
management – higher security, greater compliance, improved data governance Costs of data
management- difficult and expensive since data is scattered, increased volume of data and redundant
data Data management technologies include databases, data warehouses, data marts and business
intelligence Databases store data. Data warehouses integrated collection of data. Data marts are
small scale data warehouses. Subsets of dataData centers- facilities containing components that deliver
dataData mining- searching data in the data warehouse.Data dictionary – directory containing
metadata Metadata- data which has information about other data.Business intelligences- process
data and do statistical analysisDBMSs is a software used to manage and update dataDBMSs functions
include:data filtering-inspect data for errors data integrity- correct and verify consistency of
datadata access – authorized access to datadata synchronization- integrate, match or link datadata
security- check and control data integrity Stand-alone systems result in data redundancy,
inconsistency, and isolation. Database management systems help solve the data problems of file based
systemadvantages of NoSQL are: -high performance – greater flexibility –easy distribution of
dataRelational database stored data in rows and columns Relational management systems provide
access to data using a declarative language.Online transaction processing systems- manage transaction
data, which are volatile.Online analytics processing system -is means of organizing large business
databases4.2 Centralized and Distributed Database Architectures 2 types of databases are centralized
and distributed databasesCentralized database store data is a single central computerDistributed
database stores portions of data on multiple computers figure 3.6 & 3.7. pg 74Benefits of centralized
database are better control over data and better IT securityBenefits of distributed database is that it
allows both local and remote accessTypes of databases :

 Operational- stores detailed

data e.g customer detail and
inventory
 Distributed – distributing
parts of databases to network
servers e.g intranet and
extranet
 External- access online
information e.g newspapers
using google
 Hypermedia- stores images
and videos using hyper media
 Consequences of dirty data
include poor decision, cost of
finding and fixing the cause of
dirty data.
 Characteristics of dirty data-
incomplete, incorrect, outdated,
nonstandard
 Data life cycle diagram,
steps of data life cycle. Figure
3.8
 Data life cycle – model
which illustrates how data travel
through an organisations.
 Garbage in Garbage out-
data needs to be validated so
that it is trusted and dirty data is
removed.
 Cost of Poor-Quality Data =
Lost Business + Cost to Prevent
Errors + Cost to Correct
Errors
 3 data life cycle principles
 Principle of diminishing
data value- value of data
diminishes as they age
 Principle of 90/90 data use-
after 90 days data becomes dirty
data
 Principle of data in context –
data should be analyzed and
formatted in actionable
information.
 Enterprise data warehouse
(EDW) - data warehouses that
pull data from databases across
the enterprise.
 Procedures to prepare
Enterprise Data Warehouse(3)-
extract, transform and load
1. Extract from designated
databases
2. Transform by cleaning the
data
3. Load into data warehouse.
 Active data warehouse- real
time data warehousing and
analytics
 ADW provides:
1. Interaction with customer
2. Respond to business events
3. Share up-to-date data with
associates
 Big data is large volume of
data
 Data analytics – technique
of analyzing a data set to revel
patterns and trends to enhance
business gains.
 Four V’s of Data analytics
1. Variety – data being pulled
from enterprise databases to
include big data and
unstructured data
2. Volume- large volume of
structured and unstructured data
are analyzed
3. Velocity- speed of access
4. Veracity- validating data for
successful analytics.
 Human expertise + Data
analytics + high quality data
=actionable information
 Human expertise include
data, information and
knowledge.
 Data mining is finding
patterns in data and prevents
dirty data.
 Electronic Records
management – manages
electronic documents
 ERM benefits: -
accessibility – cuts labor costs –
reduces time and effort required
to
locate the information –
improved security –reduces
costs of printing and storing
Operational- stores detailed data e.g customer detail and inventoryDistributed – distributing parts of
databases to network servers e.g intranet and extranetExternal- access online information e.g
newspapers using googleHypermedia- stores images and videos using hyper mediaConsequences of
dirty data include poor decision, cost of finding and fixing the cause of dirty data. Characteristics of
dirty data- incomplete, incorrect, outdated, nonstandard Data life cycle diagram, steps of data life
cycle. Figure 3.8Data life cycle – model which illustrates how data travel through an organisations.
Garbage in Garbage out- data needs to be validated so that it is trusted and dirty data is
removed.Cost of Poor-Quality Data = Lost Business + Cost to Prevent Errors + Cost to Correct Errors3
data life cycle principlesPrinciple of diminishing data value- value of data diminishes as they
agePrinciple of 90/90 data use- after 90 days data becomes dirty data Principle of data in context –
data should be analyzed and formatted in actionable information.Enterprise data warehouse (EDW) -
data warehouses that pull data from databases acrossthe enterprise.Procedures to prepare Enterprise
Data Warehouse(3)- extract, transform and load 1. Extract from designated databases 2. Transform by
cleaning the data3. Load into data warehouse. Active data warehouse- real time data warehousing and
analytics ADW provides:1. Interaction with customer2. Respond to business events 3. Share up-to-date
data with associates Big data is large volume of data Data analytics – technique of analyzing a data set
to revel patterns and trends to enhance business gains.Four V’s of Data analytics1. Variety – data being
pulled from enterprise databases to include big data and unstructured data 2. Volume- large volume of
structured and unstructured data are analyzed 3. Velocity- speed of access4. Veracity- validating data for
successful analytics.Human expertise + Data analytics + high quality data =actionable
informationHuman expertise include data, information and knowledge.Data mining is finding patterns
in data and prevents dirty data.Electronic Records management – manages electronic documentsERM
benefits: - accessibility – cuts labor costs –reduces time and effort required to locate the information –
improved security –reduces costs of printing and storing

Benefits of BI Enhances decision making Competitive advantage Unites data Challenges of BIData
qualityAlignment with business strategy and BI strategy Aligning BI strategy with Business strategy
(7)Start with a roadmapUnderstand line of business needsEstablish metrics to track
performanceUnderstand the data and application environment Create an analytics committeeAllow
open communication Hire a chief data officerERM know the benefits and disadvantage