Presentation on theme: "Business Driven Information Systems 2e"— Presentation transcript:
1Business Driven Information Systems 2e CHAPTER 6DATABASES AND DATA WAREHOUSES
2Chapter Six Overview SECTION 6.1 – DATABASE FUNDAMENTALS Organizational InformationStoring Organizational InformationRelational Database FundamentalsRelational Database AdvantagesDatabase Management SystemsIntegrating Data Among Multiple DatabasesSECTION 6.2 – DATA WARAEHOUSE FUNDAMENTALSAccessing Organizational InformationHistory of Data WarehousingData Warehouse FundamentalsData Mining and Business Intelligence
4LEARNING OUTCOMESList, describe, and provide an example of each of the five characteristics of high quality informationDefine the relationship between a database and a database management systemDescribe the advantages an organization can gain by using a database.
5LEARNING OUTCOMESDefine the fundamental concepts of the relational database modelDescribe the two primary methods for integrating information across multiple databasesCompare relational integrity constraints and business-critical integrity constraintsDescribe the benefits of a data-driven website
6Organizational Information Information is everywhere in an organizationEmployees must be able to obtain and analyze the many different levels, formats, and granularities of organizational information to make decisionsSuccessfully collecting, compiling, sorting, and analyzing information can provide tremendous insight into how an organization is performing
7Organizational Information Levels, formats, and granularities of organizational information
8The Value of Transactional and Analytical Information
9The Value of Timely Information Timeliness is an aspect of information that depends on the situationReal-time information – immediate, up-to-date informationReal-time system – provides real-time information in response to query requests
10The Value of Quality Information Business decisions are only as good as the quality of the information used to make the decisionsYou never want to find yourself using technology to help you make a bad decision faster
11The Value of Quality Information Characteristics of high-quality information include:AccuracyCompletenessConsistencyUniquenessTimeliness
12The Value of Quality Information Low quality information example
13Understanding the Costs of Poor Information The four primary sources of low quality information include:Customers intentionally enter inaccurate information to protect their privacyDifferent entry standards and formatsOperators enter abbreviated or erroneous information by accident or to save timeThird party and external information contains inconsistencies, inaccuracies, and errors
14Understanding the Costs of Poor Information Potential business effects resulting from low quality information include:Inability to accurately track customersDifficulty identifying valuable customersInability to identify selling opportunitiesMarketing to nonexistent customersDifficulty tracking revenueInability to build strong customer relationships
15Understanding the Benefits of Good Information High quality information can significantly improve the chances of making a good decisionGood decisions can directly impact an organization's bottom line
16Relational Database Fundamentals Information is everywhere in an organizationInformation is stored in databasesDatabase – maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouses)
17Relational Database Fundamentals Database models include:Hierarchical database modelNetwork database modelRelational database model – stores information in the form of logically related two-dimensional tables
18Entities and Attributes Entity – a person, place, thing, transaction, or event about which information is storedThe rows in each table contain the entitiesIn Figure 6.5 CUSTOMER includes Dave’s Sub Shop and Pizza Palace entitiesAttribute (field, column) – characteristics or properties of an entity classThe columns in each table contain the attributesIn Figure 6.5 attributes for CUSTOMER include Customer ID, Customer Name, Contact Name
19Keys and Relationships Primary keys and foreign keys identify the various entities (tables) in the databasePrimary key – a field (or group of fields) that uniquely identifies a given entity in a tableForeign key – a primary key of one table that appears an attribute in another table and acts to provide a logical relationship among the two tables
21Relational Database Advantages Database advantages from a business perspective includeIncreased flexibilityIncreased scalability and performanceReduced information redundancyIncreased information integrity (quality)Increased information security
22Increased Flexibility A well-designed database should:Handle changes quickly and easilyProvide users with different viewsHave only one physical viewPhysical view – deals with the physical storage of information on a storage deviceHave multiple logical viewsLogical view – focuses on how users logically access information
23Increased Scalability and Performance A database must scale to meet increased demand, while maintaining acceptable performance levelsScalability – refers to how well a system can adapt to increased demandsPerformance – measures how quickly a system performs a certain process or transaction
24Reduced Information Redundancy Databases reduce information redundancyRedundancy – the duplication of information or storing the same information in multiple placesInconsistency is one of the primary problems with redundant information
25Increase Information Integrity (Quality) Information integrity – measures the quality of informationIntegrity constraint – rules that help ensure the quality of informationRelational integrity constraintBusiness-critical integrity constraint
26Increased Information Security Information is an organizational asset and must be protectedDatabases offer several security features including:Password – provides authentication of the userAccess level – determines who has access to the different types of informationAccess control – determines types of user access, such as read-only access
27Database Management Systems Database management systems (DBMS) – software through which users and application programs interact with a database
28Data-Driven WebsitesData-driven websites – an interactive website kept constantly updated and relevant to the needs of its customers through the use of a database
32Integrating Information among Multiple Databases Integration – allows separate systems to communicate directly with each otherForward integration – takes information entered into a given system and sends it automatically to all downstream systems and processesBackward integration – takes information entered into a given system and sends it automatically to all upstream systems and processes
33Integrating Information among Multiple Databases Forward integration
34Integrating Information among Multiple Databases Backward integration
35Integrating Information among Multiple Databases Building a central repository specifically for integrated information
36OPENING CASE STUDY QUESTIONS It Takes A Village to Write an Encyclopedia Determine if an entry in Wikipedia is an example of transactional information or analytical informationWhat is the impact to Wikipedia if the information contained in its database is of low quality?Review the five common characteristics of high quality information and rank them in order of importance to Wikipedia
37OPENING CASE STUDY QUESTIONS It Takes A Village to Write an Encyclopedia How is Wikipedia resolving the issue of poor information?Identify the different types of entities that might be stored in Wikipedia’s databaseWhy is database technology so important to Wikipedia’s business model?
39LEARNING OUTCOMESDescribe the roles and purposes of data warehouses and data marts in an organizationCompare the multidimensional nature of data warehouses (and data marts) with the two-dimensional nature of databases
40LEARNING OUTCOMESIdentify the importance of ensuring the cleanliness of information throughout an organizationExplain the relationship between business intelligence and a data warehouse
41HISTORY OF DATA WAREHOUSING Data warehouses extend the transformation of data into informationIn the 1990’s executives became less concerned with the day-to-day business operations and more concerned with overall business functionsThe data warehouse provided the ability to support decision making without disrupting the day-to-day operations
42DATA WAREHOUSE FUNDAMENTALS Data warehouse – a logical collection of information – gathered from many different operational databases – that supports business analysis activities and decision-making tasksThe primary purpose of a data warehouse is to aggregate information throughout an organization into a single repository for decision-making purposes
43DATA WAREHOUSE FUNDAMENTALS Extraction, transformation, and loading (ETL) – a process that extracts information from internal and external databases, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouseData mart – contains a subset of data warehouse information
45Multidimensional Analysis Databases contain information in a series of two-dimensional tablesIn a data warehouse and data mart, information is multidimensional, it contains layers of columns and rowsDimension – a particular attribute of information
46Multidimensional Analysis Cube – common term for the representation of multidimensional information
47Information Cleansing or Scrubbing An organization must maintain high-quality data in the data warehouseInformation cleansing or scrubbing – a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information
48Information Cleansing or Scrubbing Contact information in an operational system
49Information Cleansing or Scrubbing Standardizing Customer name from Operational Systems
51Information Cleansing or Scrubbing Accurate and complete information
52Data Mining and Business Intelligence Data mining – the process of analyzing data to extract information not offered by the raw data aloneTo perform data mining users need data-mining toolsData-mining tools helps users uncover BI
53OPENING CASE STUDY QUESTIONS It Takes A Village to Write an Encyclopedia How could Wikipedia use a data warehouse to improve its business operations?Why must Wikipedia cleanse or scrub the information in its data warehouse?How could a company use information from Wikipedia to gain business intelligence?
54Closing Case One Google How did the website RateMyProfessors.com solve its problem of low-quality information?Review the five common characteristics of high-quality information and rank them in order of importance to Google’s businessWhat would be the ramifications to Google’s business if the search information it presented to its customers was of low quality?
55Closing Case One Google Describe the different types of databases. Why should Google use a relational database?Identify the different types of entities, attributes, keys, and relationships that might be stored in Google’s AdWords relational database
56CLOSING CASE ONE Google How could Google use a data warehouse to improve its business operations?Why would Google need to scrub and cleanse the information in its data warehouse?Identify a data mart that Google’s marketing and sales department might use to track and analyze its AdWords revenue
57CLOSING CASE TWO Mining the Data Warehouse How is Ben & Jerry’s using business intelligence to remain successful and competitive in a saturated market?Why is information cleansing and scrubbing critical to California Pizza Kitchen’s success?
58CLOSING CASE TWO Mining the Data Warehouse Why is 100 percent accurate and complete information impossible for Noodles & Company to obtain?Describe how each of the companies above is using BI from their data warehouse to gain a competitive advantage
59CLOSING CASE THREE Harrah’s Identify the effects poor information might have on Harrah’s service-oriented business strategyHow does Harrah’s uses database technologies to implement its service-oriented strategy?Harrah’s was one of the first casino companies to find value in offering rewards to customers who visit multiple Harrah’s locations. Describe the effects on the company if it did not build any integrations among the databases located at each of its casinos. How could Harrah’s use a data warehouse to synchronize customer information?
60CLOSING CASE THREE Harrah’s Estimate the potential impact to Harrah’s business if there is a security breach in its customer informationIdentify three different types of data marts Harrah’s might want to build to help it analyze its operational performance
61CLOSING CASE THREE Harrah’s What might occur if Harrah’s fails to clean or scrub its information before loading it into its data warehouse?
62BUSINESS DRIVEN BEST SELLERS The Speed of Thought, by Bill Gates
63BUSINESS DRIVEN BEST SELLERS Why Smart Executives Fail, by Sydney Finkelstein