PPT06 Foundations of Business Intelligence Databases and Information Management
PPT06 Foundations of Business Intelligence Databases and Information Management
Chapter 6
FOUNDATIONS OF BUSINESS
INTELLIGENCE: DATABASES AND
INFORMATION MANAGEMENT
Management Information Systems
CHAPTER 6: FOUNDATIONS OF BUSINESS INTELLIGENCE:
DATABASES AND INFORMATION MANAGEMENT
Learning Objectives
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
FIGURE 6-2 The use of a traditional approach to file processing encourages each functional area in a corporation to develop specialized applications.
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 6-3 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.
• Relational DBMS
– Represent data as two-dimensional tables called relations or
files
– Each table contains data on entity and attributes
• Table: A grid of columns and rows
– Rows (tuples): Records for different entities
– Columns (fields): Represents attribute for entity
– Key field: Field used to uniquely identify entities
– Primary key: Field in table used to identify each record.
– Foreign key: Primary key used in another table as look-up field
to identify records from original table (relating tables)
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Management Information Systems
CHAPTER 6: FOUNDATIONS OF BUSINESS INTELLIGENCE:
DATABASES AND INFORMATION MANAGEMENT
The Database Approach to Data Management
FIGURE 6-4 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
(cont.) 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 6-5 The select, join, and project operations enable data from two different tables to be combined and only
selected attributes to be displayed.
MICROSOFT ACCESS
DATA DICTIONARY
FEATURES
Microsoft Access has a
rudimentary data dictionary
capability that displays
information about the size,
format, and other characteristics
of each field in a database.
Displayed here is the information
maintained in the SUPPLIER
table. The small key icon to the
left of Supplier_Number
indicates that it is a key field.
FIGURE 6-6
FIGURE 6-7 Illustrated here are the SQL statements for a query to select suppliers for parts 137 or 150. They produce a
list with the same results as Figure 6-5.
AN ACCESS QUERY
FIGURE 6-8
• Designing Databases
– Conceptual (logical) design: Abstract model from business
perspective
– Physical design: How database is arranged on storage device
• Design process identifies
– Relationships among data elements, redundant database elements
– Most efficient way to group data elements to meet business
requirements, needs of application programs
• Normalization
– Streamlining complex groupings of data to minimize redundant
data elements and awkward many-to-many relationships
FIGURE 6-9 An unnormalized relation contains repeating groups. For example, there can be many parts and suppliers
for each order. There is only a one-to-one correspondence between Order_Number and Order_Date.
FIGURE 6-10 An unnormalized relation contains repeating groups. For example, there can be many parts and suppliers
for each order. There is only a one-to-one correspondence between Order_Number and Order_Date.
• Entity-relationship diagram
– Used by database designers to document the data model
– Illustrates relationships between entities
• Distributing databases: Storing database in more than one place
– Partitioned: Separate locations store different parts of database
– Replicated: Central database duplicated in entirety at different
locations
• Referential Integrity:
– When one table has a foreign key that points to another table, you may not
add a record to the table with the foreign key unless there is a corresponding
record in the linked table
AN ENTITY-RELATIONSHIP DIAGRAM
FIGURE 6-11 This diagram shows the relationships between the entities SUPPLIER, PART, LINE_ITEM, and ORDER that
might be used to model the database in Figure 6-10.
• Data warehouse:
– The traditional tool for analyzing corporate data for the
past two decades has been the data warehouse.
– Stores current and historical data from many core
operational transaction systems
– Consolidates and standardizes information for use across
enterprise, but data cannot be altered
– Data warehouse system will provide query, analysis, and
reporting tools
• Data marts:
– Subset of data warehouse
– Summarized or highly focused portion of firm’s data for
use by specific population of users
– Typically focuses on single subject or line of business (e.g.
Sales and marketing), less cost, rapid construction
•
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Management Information Systems
FIGURE 6-12 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.
• Business Intelligence:
– Tools for consolidating, analyzing, and providing access
to vast amounts of data to help users make better
business decisions
– E.g., Harrah’s Entertainment analyzes customers to
develop gambling profiles and identify most profitable
customers
– Principle tools include:
• Software for database query and reporting
• Online analytical processing (OLAP)
• Data mining
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Management Information Systems
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 6-13
• Data mining:
– More discovery driven than OLAP
– Finds hidden patterns, relationships in large databases and
infers rules to predict future behavior
– E.g., Finding patterns in customer data for one-to-one
marketing campaigns or to identify profitable customers.
– Types of information obtainable from data mining
• Associations: Occurences linked to a single event. Cola- chips
• Sequences: Occurences linked over time. House- refrigerator
• Classification: Recognizes patterns that describe a group of entities
and inferring rules for classification.
• Clustering: Classification with no groups being defined yet.
• Forecasting: Uses series of existing values to predict other values.
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Management Information Systems
CHAPTER 6: FOUNDATIONS OF BUSINESS INTELLIGENCE:
DATABASES AND INFORMATION MANAGEMENT
Using Databases to Improve Business Performance and Decision Making
• Predictive analysis
– Uses data mining techniques, historical data, and
assumptions about future conditions to predict
outcomes of events
– E.g., Probability a customer will respond to an
offer
• Text mining
– Extracts key elements from large unstructured
data sets (e.g., stored e-mails)
• Web mining
– Discovery and analysis of useful patterns and
information from WWW
• E.g., to understand customer behavior, evaluate effectiveness of Web
site, etc.
– Web content mining
• Knowledge extracted from content of Web pages (text, image, video)
– Web structure mining
• E.g., links to and from Web page (measures popularity and coverage)
– Web usage mining
• User interaction data recorded by Web server
FIGURE 6-14 Users access an organization’s internal database through the Web using their desktop PCs and Web browser
software.