Topic 5

Foundation of Business Intelligence:

Database and Information
Management
Adapted from slides provided by the authors of the textbook
“Management Information Systems : Managing the Digital Firms”
by Kenneth C. Laudon and Jane P. Laudon
HASLINDA BINTI NORADZAN
Lesson Outcomes:
Describe problems of managing data resources in a traditional file environment

Recognize the capabilities of database management systems (DBMS)

Identify the principal tools and technologies for accessing information from
databases to improve business performance and decision making

Determine why information policy, data administration, and data quality

assurance essential for managing the firm’s data resources

Define the roles of knowledge management system in business

File Organization Terms and Concept
Entity : Customer
Group of characters Customer ID
FIELD (words or numbers) Name Attributes
Phone No
Group of related fields

RECORD
stored as
Group of records of same type

FILE
Group of related files

DATABASE
Problems with The Traditional File Environment

Lead to :
 Data redundancy
 Data inconsistency
 Processing inflexibility
 Wasted storage resources
Problems with The Traditional File Environment
Data Redundancy
• Presence of duplicate data in multiple files

Data Inconsistency
• Same attribute has different values

Program Data Dependence

• When changes in program requires changes to data accessed by program

Lack of Flexibility
• Cannot deliver ad hoc reports

Poor Security
• Little control or management of data

Lack of Data Sharing and Availability

Database Management System (DBMS)

Collection of data organized to serves many applications by centralizing data and

Database
controlling redundant data

 Software that permits an organization to centralize data,

Database manage them and provide access to the stored data by
management system application programs
(DBMS)  Interfaces between applications and physical data files
 Separates logical and physical views of data

 Controls redundancy
 Eliminates inconsistency
 Uncouples programs and
data
Problems with The  Enables organization to
Traditional File central manage data and
Environment data security
Provide more than one views
with a single database
Relational Database Tables
 Represent data as two-
dimensional tables
 Each table contains data on
entity and attributes

 Rows (tuples): Records for different

entities
 Fields (columns): Represents
attribute for entity
 Key field: Field used to uniquely
identify each record
 Primary key: Field in table used for
key fields
 Foreign key: Primary key used in
second table as look-up field to identify
records from original table
Non-Relational Databases : ‘No-SQL’ Structured Query Language

Use more flexible data model

Data sets stored across distributed

machines

Easier to scale

Handle large volumes of

unstructured and structured data

Eg: Oracle NoSQL Database

Database in the Cloud
Capabilities of DBMS
Specifies structure of database content, used to create tables
Data definition capability
and define characteristics of fields
Automated or manual file storing definitions of data elements and their
Data dictionary
characteristics
Size, format, and other
QUERING AND REPORTING characteristics

Data manipulation language Used to add, change, delete, retrieve data from database

attribute
entity
The Database Approach to Data Management

Designing Databases

Conceptual (logical) design Physical design

abstract model from business perspective How database is arranged on direct-access storage devices

identifies

Relationships among data elements redundant database elements

Most efficient way to group data Grouping the data elements required for
elements to meet business requirements specific application programs
Normalization Process of creating small , stable, flexible and adaptive data
structure from complex group of data

Referential Integrity Rules

Used by RDMS to ensure relationships
between tables remain consistent
Entity Relationship Diagrams (ERD)

• Used by database designers to document the data model

• Illustrates relationships between entities
 If a business doesn’t
get data model right,
system won’t be able to
serve business well
The Challenge of Big Data
 Massive sets of unstructured/semi-structured data from
Web traffic, social media, sensors, and so on
Volumes too great for typical DBMS
Reveals more patterns and interesting anomalies

Provide new insights to customer behaviors,

weather patterns, financial market activities
Business interested in big data

Need new technology to and tools

capable of managing and analyzing
non-traditional and traditional data
Business Intelligence Infrastructure

Data warehouse Stores current and historical data from In-memory Computing
many core operational transaction systems
Uses computers main memory
Consolidates and standardizes (RAM) for data storage to avoid
information for use across enterprise, delays in retrieving data from disk
but data cannot be altered storage
subset of Provides analysis and reporting tools Requires optimized hardware

Data mart
Analytic Platforms
Summarized or focused
High-speed platforms using both
portion of data for use by
relational and non-relational tools
specific population of Hadoop optimized for large datasets
users
Enables distributed parallel
Typically focuses on single processing of big data
subject or line of business across inexpensive
computers
Analytical Tools : Relationships, Patterns, Trends
Online Analytical Supports multidimensional data
Processing (OLAP) analysis

Data mining Finds hidden patterns,

relationships in
datasets

Extracts key elements

from large unstructured
Text Mining
data sets
Web content mining

Web structure mining

Web Mining Discovery and analysis of useful pattern and information from Web
Web usage mining
Databases and the Web

Advantages of using web for database access:

Ease of use of browser software

Web interface requires few or no changes to database

Inexpensive to add Web interface to system

Managing the Firms’ Data Resources

Establishing an Firm’s rules, procedures, roles for sharing, managing, standardizing data
Information Policy Data administration
Data governance
Establishes Database
policies and administration
procedures to Deals with
manage data policies and
processes Creating and
especially maintaining
Ensuring Data Quality database
regarding
government
regulations
Data Quality Audit Data Cleansing
Structured survey of Software to detect and
the accuracy and correct data that are
level of completeness incorrect, incomplete,
of the data in an improperly formatted, or
information system redundant
Roles of Knowledge Management System
Collective and individual experience
of applying knowledge to solve
problems
 Important Dimensions of Knowledge
To transform information into knowledge, firm must
expend additional resources to discover patterns,
rules, and contexts where knowledge works

is is

A FIRM ASSET SITUATIONAL

has
Intangible asset Know when to perform
the procedure and how to
Data to information – use has apply it
organizational resources

not documented DIFFERENT FORMS

documented A LOCATION
Tacit or explicit
Involves know-how, craft, skill
How to follow procedure Mind of humans Business processes
Know why , when, things happen
Knowledge Management Set of business processes developed in an organization to create,
store, transfer, and apply knowledge
Types of Knowledge Management System
General- purpose firmwide efforts to collect, store,
Enterprise-Wide Knowledge Management System distribute and apply digital content and
Enterprise Content Management System knowledge
Collaboration and Social Tools
Learning Management System

Specialized system built for engineers, scientists

Knowledge Work System
or other knowledge workers
Computer Aided Design (CAD) Discovering and creating new knowledge for a
3D Virtualization company
Virtual Reality
Investment Workstation

Intelligent Techniques Tools for discovering patterns and applying

knowledge to discrete decisions and knowledge
Focus on discovering knowledge(data mining, domains
neural networks)
distilling knowledge (expert system, fuzzy
logic)
discovering optimal solutions for problems
(genetic algorithm)
Examples of Past Semester Examination
January 2018 (PART B- Question 5)
Define big data 2 marks
Describe THREE technologies for managing and analyzing the big data 6 marks

July 2017 (PART B- Question 5)

Differentiate between data warehouse and data marts 4 marks

July 2017 (PART C- Question 2)

Knowledge management refers to the set of business processes developed in 10 marks
an organization to create, store, transfer, and apply knowledge. Explain how a
taxi service company should benefit from knowledge using the FOUR (4)
value adding steps in knowledge management value chain.