Foundations of Business Intelligence: Databases and Information Management

TOPIC 1: Foundations of Business Intelligence: Databases and Information Management

TOPIC 1: Foundations of Business Intelligence: Databases and Information Management 1. How to Organizing Data in a Traditional File Environment 2. The Database Approach to Data Management 3. Using Databases to Improve Business Performance and Decision Making 4. Managing Data Resources

Goal #1: How to Organize Data in a Traditional File Environment Adopted from: Laudon, K. C. & Laudon, J.P. (2014). Management information systems: Managing the digital firm (13 th Ed). N.J.: Pearson.

An Entity in a Database First Name Last Name Street City State Zip Telephone John Jones 111 Main Anytown Ohio 22334 555-123- 666

Problems with the Traditional File Environment Need For a Central Database DEPT. A DEP T.B DEPT. C

Problems with the Traditional File Environment Data Redundancy and Inconsistency Program-Data Dependence Lack of Flexibility Poor Security Lack of Data Share and Availability

SUMMARY: Many problems such as data redundancy, programdata dependence, inflexibility, poor data security, and inability to share data among applications have occurred with traditional file environments. Managers and workers must know and understand how databases are constructed so they know how to use the information resource to their advantage. Upper management must assign one department and/or point person to maintain, coordinate and manage a truly centralized database.

GOAL #2: The Database Approach to Data Management What is a Database Management System (DBMS)?

How a DBMS Solves the Problems of the Traditional File Environment

A Relational Database Table.

Relational Database Table Customer Table Order Table Field Name Description Field Name Description Customer Name Self-Explanatory Order Number Primary Key Customer Address Self-Explanatory Order Item Self-Explanatory Customer ID Primary Key Number of Items Ordered Self-Explanatory Order Number Foreign Key Customer ID Foreign Key

Wrong way: Relational Database Tables Name Address Telephone number John L. Jones Right way: 111 Main St. Anywhere, OH 22334 555-123-6666 First Name Middle Initial Last Name John L. Jones 111 Main St. Street City Stat e Anywher e Zip Telephon e OH 22334 555-123- 6666

Operations of a Relational DBMS: Three basic operations are used to develop relational databases: Select: Create a subset of records meeting the stated criteria. Join: Combine related tables to provide more information than individual tables. Project: Create a new table from subsets of previous tables. Note on Cloud Computing

Capabilities of Database Management Systems Data definition Data dictionary Querying and Reporting using Data manipulation language

Designing Databases and Normalization

Designing Databases and Normalization Your goals for creating a good data model are: Including all entities and the relationships among them Organizing data to minimize redundancy Maximizing data accuracy Making data easily accessible

SUMMARY: Relational databases solve many of the problems inherent with traditional file environments. Database Management Systems have three critical components: the data definition, the data dictionary, and the data manipulation language. Managers should make sure that end users are fully involved in properly designing organizational databases using normalization and entityrelationship diagrams

GOAL #3: Using Databases to Improve Business Performance and Decision Making Data Warehouses Data Marts Business Intelligence Multidimensional Data Analysis Data Mining Databases and the Web

Data Warehouses Adopted from: Laudon, K. C. & Laudon, J.P. (2014). Management information systems: Managing the digital firm (13 th Ed). N.J.: Pearson.

Component of a database warehouse Data Marts Business Intelligence Data mining

Component of a database warehouse Data Marts Business Intelligence Adopted from: Laudon, K. C. & Laudon, J.P. (2014). Management information systems: Managing the digital firm (13 th Ed). N.J.: Pearson.

Component of a database warehouse Data Marts Business Intelligence Data mining Associations: determine occurrences linked to a single event Sequences: determine events that are linked over time Classification: discover characteristics of customers and make predictions about their behavior Clustering: discover groups within data Forecasting: use existing values to forecast what other values will be

Databases and the Web Adopted from: Laudon, K. C. & Laudon, J.P. (2014). Management information systems: Managing the digital firm (13 th Ed). N.J.: Pearson.

Goal #4: Managing Data Resources Establishing an Information Policy Data governance Ensuring Data Quality

Reference Laudon, K. C. & Laudon, J.P. (2014). Management information systems: Managing the digital firm (13 th Ed). N.J.: Pearson.