1. Next Back MAP MAP 3-1 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Chapter 3 Databases and Data Warehouses Building Business Intelligence

2. Next Back MAP MAP 3-2 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved What is the chapter all about This chapter deals with the different elements of creating knowledge in an organization and having the right tools to work with this knowledge to gain Business Intelligence. This chapter deals with the different elements of creating knowledge in an organization and having the right tools to work with this knowledge to gain Business Intelligence.

3. Next Back MAP MAP 3-3 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved What is the chapter all about Having the right tools to create/build Business Intelligence revolves around the capturing, use and management of information, hence Information Resource Management gains importance.

4. Next Back MAP MAP 3-4 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved What is the chapter all about MANAGEMENT TOOLS Click on me for a shortcut. Click on me for a shortcut.

5. Next Back MAP MAP 3-5 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved In order to understand how this gain in BI occurs you need to learn the following: 1. 1.Understand BI and where it comes from. 2. 2.How is BI developed. 3. 3.The IT necessary to develop BI. BI 1Origin 2Dev.3 IT for BI

6. Next Back MAP MAP 3-6 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Aggregation BI and Where it Comes From Environment

7. Next Back MAP MAP 3-7 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved To Develop Business Intelligence (B.I.) To Develop Business Intelligence (B.I.) 1. You need to gather data first. 2. You have to structure and organize the data gathered. 3. You can then aggregate related data into information. 4. Finally you can manipulate the information into knowledge. Building Towards B. I.

8. Next Back MAP MAP 3-8 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved IT to Build BI OnLine Transaction Processing Business Intelligence Knowledge Information Data Database Management Systems Information Systems Online Analytical Processing

9. Next Back MAP MAP 3-9 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved OnLine Transaction Processing Business Intelligence Knowledge Information Data Database Management Systems Information Systems Online Analytical Processing Online Transaction Processing (OLTP) is the gathering of input data, verifying for data quality and integrity and storing this data in the appropriate location in the database(s). OLTP systems also communicate with the consumer/client and provides them with receipts and reports of transactions done.

10. Next Back MAP MAP 3-10 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved OnLine Transaction Processing Business Intelligence Knowledge Information Data Database Management Systems Information Systems Online Analytical Processing Databases and Database Management Systems (DBMS, such as Microsoft Access) are the technology tools that directly support OLTP. Databases that support OLTP are most often referred to as operational databases. Inside these databases is valuable information that forms the basis for business intelligence.

11. Next Back MAP MAP 3-11 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved OnLine Transaction Processing Business Intelligence Knowledge Information Data Database Management Systems Information Systems Online Analytical Processing Information systems at this point are developed to use the information found in the databases, manipulate them and use the results for different objectives such as creating reports, planning and making decisions. This manipulation of the information into another aggregated form is knowledge. Management Information Systems is one example.

12. Next Back MAP MAP 3-12 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved OnLine Transaction Processing Business Intelligence Knowledge Information Data Database Management Systems Information Systems Online Analytical Processing Online Analytical Processing (OLAP) is the manipulation of the information to support decision making. “We’re finally comparing apples with apples, and now we’re spending only 10 percent of our time gathering data and 90% acting upon it, instead of the other way around.” Chapter 3, p. 79.

13. Next Back MAP MAP 3-13 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Business Intelligence Figure 3.1 Building Business Intelligence page 79

14. Next Back MAP MAP 3-14 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Aggregate Information = Knowledge & BI Manipulate Data = Information Structure and Organize Data Gather Data The relational database model IT for Business Intelligence (IT4BI MAP) The Database Management Systems Data Warehouses and Data Mining

15. Next Back MAP MAP 3-15 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Aggregate Information = Knowledge & BI Manipulate Data = Information Structure and Organize Data Gather Data The relational database model The relational database modelIT4BI The Database Management Systems Data Warehouses and Data Mining Go to IT4BI Main Page When a business wants to organize and store basic and transaction oriented data (of course for later use to create business intelligence) they use databases. In reference to the relational database, then it is related data organized according to the logical structure the business information of interest. Click on for details

16. Next Back MAP MAP 3-16 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Aggregate Information = Knowledge & BI Manipulate Data = Information Structure and Organize Data Gather Data The relational database model The Database Management Systems The Database Management Systems Data Warehouses and Data Mining Go to IT4BI Main Page IT4BI Databases and DBMSs are the technology tools that directly support online analytical processing. With a DBMS you can create your database including its logical structure and constraints, manipulate the data and information contained and create a database application. Click on for details

17. Next Back MAP MAP 3-17 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Aggregate Information = Knowledge & BI Manipulate Data = Information Structure and Organize Data Gather Data The relational database model The Database Management Systems Data Warehouses and Data Mining Data Warehouses and Data Mining Go to IT4BI Main Page IT4BI Online Analytical Processing (OLAP) is the manipulation of the information to support decision making. “We’re finally comparing apples with apples, and now we’re spending only 10 percent of our time gathering data and 90% acting upon it, instead of the other way around.” Chapter 3, p. 79. Click on for details

18. Next Back MAP MAP 3-18 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved MANAGING THE INFORMATION RESOURCE The success of an organization strongly depends on the proper organization and management of the information as it relates to the organizations’ short and long term objectives.

19. Next Back MAP MAP 3-19 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved MANAGING THE INFORMATION RESOURCE Information officers. Information officers. The influence of changes in technology on the organizations information. The influence of changes in technology on the organizations information. Information ownership. Information ownership. Ethical issues. Ethical issues. Some of the issues that are important when it comes to the management of the information in the organization are:

20. Next Back MAP MAP 3-20 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Chief information officer (CIO) - responsible for overseeing an organization’s information resource. Chief information officer (CIO) - responsible for overseeing an organization’s information resource. Data administration - plans for, oversees the development of, and monitors the information resource. Data administration - plans for, oversees the development of, and monitors the information resource. Database administration - responsible for the more technical and operational aspects of managing the information contained in organizational databases. Database administration - responsible for the more technical and operational aspects of managing the information contained in organizational databases. MANAGING THE INFORMATION RESOURCE Who Should Oversee the Organization’s Information?

21. Next Back MAP MAP 3-21 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved MANAGING THE INFORMATION RESOURCE How Will Changes in Technology Affect Organizing and Managing Information? As new technologies become available, you should ask yourself whether those technologies will help you organize and manage your information better. As new technologies become available, you should ask yourself whether those technologies will help you organize and manage your information better. One of the greatest technological changes that will occur over the coming years is a convergence of different tools that will help you better organize and manage information. One of the greatest technological changes that will occur over the coming years is a convergence of different tools that will help you better organize and manage information.

22. Next Back MAP MAP 3-22 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved MANAGING THE INFORMATION RESOURCE Is Information Ownership a Consideration? Information ownership is a key consideration in today’s information- based business environment. Information ownership is a key consideration in today’s information- based business environment. Ownership refers to who is responsible for information quality. Ownership refers to who is responsible for information quality. On Your Own CRUD – Defining Information Ownership (p. 102)

23. Next Back MAP MAP 3-23 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved MANAGING THE INFORMATION RESOURCE What Are the Ethics Involved in Managing and Organizing Information? Databases, data warehouses, DBMSs, and data mining tools make it possible for people to easily access all kinds of organizational information. Databases, data warehouses, DBMSs, and data mining tools make it possible for people to easily access all kinds of organizational information. How does an organization safeguard against the unethical use of information within the organization? How does an organization safeguard against the unethical use of information within the organization?

24. Next Back MAP MAP 3-24 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Closing Case Study One We’ve Got OLTP Covered; Let’s Go on to OLAP What is the single most important factor that hinders all organizations in general from providing good online analytical processing (OLAP) support? What is the single most important factor that hinders all organizations in general from providing good online analytical processing (OLAP) support? Why is it so much easier for organizations to provide good online transaction processing (OLTP) support? Why is it so much easier for organizations to provide good online transaction processing (OLTP) support?

25. Next Back MAP MAP 3-25 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Closing Case Study Two Mining Dining Data Consider the issue of timely information with respect to the businesses discussed in the case. Consider the issue of timely information with respect to the businesses discussed in the case. Which of the businesses must have the most up-to-date information in its data warehouse? Which of the businesses must have the most up-to-date information in its data warehouse?

26. Next Back MAP MAP 3-26 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Summary Student Learning Outcomes 1. Describe business intelligence and its role in an organization. 2. Differentiate between databases and data warehouses with respect to their focus on online transaction processing and online analytical processing. 3. List and describe the key characteristics of a relational database. 4. Define the five software components of a database management system.

27. Next Back MAP MAP 3-27 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Summary Student Learning Outcomes 5. List and describe the key characteristics of a data warehouse. 6. Define the four major types of data mining tools in a data warehouse environment. 7. List key considerations in managing the information resource in an organization.

28. Next Back MAP MAP 3-28 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Summary Assignments & Exercises 1. Finding “hacked” databases 2. Defining queries for a video rental store 3. Creating a query 4. Career opportunities in your major 5. Salaries for database administrators

29. Next Back MAP MAP 3-29 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Real Hot Electronic Commerce Searching Online Databases and Information Repositories Financial aid resources Financial aid resources Libraries Libraries Consumer information Consumer information Demographics Demographics Real estate Real estate

30. Next Back MAP MAP 3-30 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Visit the Web to Learn More www.mhhe.com/haag Financial aid resources Financial aid resources Libraries Libraries Consumer information Consumer information Demographics Demographics Real estate Real estate Data warehouses and data mining tools Data warehouses and data mining tools

31. Next Back MAP MAP 3-31 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Appendix Beyond this point the slides are not in any order. They are part of the interactivity.

32. Next Back MAP MAP 3-32 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved 1. 1.Understand BI and where it comes from. 2. 2.How is BI developed. 3. 3.The IT necessary to develop BI. BI 1Origin 2Dev.3 IT for BI By referring to the origin of Business Intelligent, I am thinking of the "HOW". How is business intelligence obtained. Where does it come from. Business Intelligence (which we will refer to in here as BI for simplicity) is obtained by manipulating organization's knowledge towards a specific objective. This knowledge comes from information which comes from data. Therefore, remember the following "business molecular sequence": BI <-- Knowledge <-- Information <-- Data [BIKID] Back to where I was. Back to where I was.

33. Next Back MAP MAP 3-33 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved 1. 1.Understand BI and where it comes from. 2. 2.How is BI developed. 3. 3.The IT necessary to develop BI. BI 1Origin 2Dev.3 IT for BI Back to where I was. Back to where I was. The development of BI is more accurately stated as the development of an Information Infrastructure towards business intelligence. This includes the capturing of data, structuring and organizing it to obtain meaningful and useful information, and manipulating the information for knowledge gain, hence business intelligence.

34. Next Back MAP MAP 3-34 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved 1. 1.Understand BI and where it comes from. 2. 2.How is BI developed. 3. 3.The IT necessary to develop BI. BI 1Origin 2Dev.3 IT for BI Back to where I was. Back to where I was. This information infrastructure does not occur on its own. You cannot buy an information infrastructure of the shelf. You need to acquire, use and maintain the IT to develop and build this information infrastructure. This includes database design, database management systems, data warehouses and data mining tools.

35. Next Back MAP MAP 3-35 Management Information Systems for the Information Age Copyright 2002 The McGraw-Hill Companies, Inc. All rights reserved Chapter 3 What is the cha pte r all abo ut? Understanding Bu sin ess Inte llig enc e Where BI co me s fro m To develop BI IT to build BI Data Information Knowledge BI IT4BI - MAP The Relational Dat a Mo del The DBMS Data Wa reh ous es and Dat a Min ing Managing Info rm atio n Re sou rce s Who should ove rse e the org. info rm atio n? How will cha nge s in tec h. affe ct org. and ma nag ing info rm atio n? Is information ow ner shi p a con sid era tion ? What are the ethi cal iss ues