Databases and Warehouses Building Business Intelligence

To make _______ and _______ decisions and work in the most productive and efficient way, knowledge workers today need (1) access to information and (2) tools to work with that information.

Business Intelligence What is it? _______________ is knowledge – knowledge about your customers, your competitors, your partners, your competitive environment, and your own internal operations Where is BI found? Databases & Data warehouses

Key Terms Online transaction processing (OLTP) – the gathering of input information, processing that information, and updating existing information to reflect the gathered and processed information. (Ex. Banking ) Operational database – database that supports _______. Online analytical processing (OLAP) the _______ of information to support decision making.

Business Intelligence

Hierarchy of Data

THE RELATIONAL DATABASE MODEL A collection of _______ that you organize and access according to the _______ structure of that information. Relational database model uses a series of logically related two-dimensional _______(called relations) or _______ to store information in the form of a database. Relation describes each two-dimensional table or file in the relational model. The word relation here is in reference to the collection of the data within one specific table.

By carefully examining the definition given to “relational databases” we can clearly identify two parts to it: _______ – stored in a series of two dimensional tables, files, or relations. _______ of the information.

Information – stored in a series of two dimensional tables, files, or relations.

Data dictionary – contains the logical structure for the information.

Database management system (DBMS) helps you specify the logical organization for a _______ and access and use (_______) the information within a database.

DATABASE MANAGEMENT SYSTEM TOOLS DBMS Engine _______ Definition _______ Data Manipulation Subsystem Application _______ Subsystem Data Administration _______

The DBMS Figure 3.4 Software Subsystems of a Database Management System page 85

Traditional Approach to Data Management Problems program/data dependecy High data redundancy Low data integrity

Database Approach to Data Management Moving to databases Washington Hospital Center

Advantages of Database Approach Improved _______ use of corporate data Reduced data redundancy Improved data _______ Easier modification and updating Data and program _______ Better access to data and information Standardization of data access Framework for program development Better overall _______ of the data Shared data and information resources

Disadvantages of Database Approach Relatively high cost of purchasing and operating a DBMS in a mainframe operating environment Increased cost of specialized staff Increased vulnerability

DATA WAREHOUSES AND DATA MINING What Is a Data Warehouse? What Are Data Mining Tools? Data Marts: Smaller Data Warehouses Important Considerations in Using a Data Warehouse

Data Warehouses and Data Mining Data Warehouses Are Multidimensional Figure 3.8 A Multidimensional Data Warehouse with Information from Multiple Operational Databases

Elements of a Data Warehouse Data Warehouses: A database that collects business information from many sources in the enterprise, covering all aspects of the company’s processes, products, and customers Data Warehouse Databases. These store data from current and previous years that has been extracted from the various operational and management databases of the organization. As a standardized and integrated central source of data, warehouses can be used by managers for pattern processing, where key factors and trends about operations can be identified from the historical record. Data Mart: a subset of a data warehouse Data Marts. Are subsets of the data included in a Data Warehouse which focus on specific aspects of a company, e.g. department, business process, etc.

Data Warehouses and Data Mining Data Marts – Smaller Data Warehouses Data mart - a subset of a data warehouse in which only a focused portion of the data warehouse information is kept. Data Marts Are Subsets of Data Warehouse

Data Mining: an information analysis tool that involves the automated discovery of patterns and relationships in a data warehouse Applications Market segmentation Customer churn Fraud detection Direct marketing Market basket analysis Trend analysis

How Up-to-Date Should Data Warehouse Information Be? To adjust class sizes in a university registration system To alert people to changes in weather conditions To predict scores in professional football games To adjust radio advertisements in light of demographic changes To monitor the success of a new product line in the clothing retail industry To adjust production levels of foods in a cafeteria To switch jobs to various printers in a network – by the minute. To adjust CD rates in a bank To adjust forecasted demands of tires in an auto parts store

MANAGING THE INFORMATION RESOURCE IN AN ORGANIZATION Who Should Oversee the Organization’s Information? How Will Changes in Technology Affect Organizing and Managing Information? Is Information Ownership a Consideration? What Are the Ethics Involved in Managing and Organizing Information?

OLTP and Data Warehousing

OLAP and Data Mining

Senate Democrats try to stop Pentagon data-mining project                                                                                                            Powered by                                                                    SAVE THIS | EMAIL THIS | Close    Senate Democrats try to stop Pentagon data-mining project Some conservatives also concerned about privacy issue

Databases and data warehouses clearly make it easier for people to access all kinds of information. This will lead to great debates in the area of privacy. Should organizations be left to police themselves with respect to providing access to information or should the government impose privacy legislation? Answer this question with respect to (1) customer information shared by organizations; (2) employee information shared within a specific organization; and (3) business information available to customers.

Consider that you work in the human resources management department of a local business and that many of your friends work there. Although you don’t personally generate payroll checks, you still have the ability to look up anyone’s pay. Would you check on your friends to see if they’re earning more money than you? For that matter, would you look up their pay just out of simple curiosity, knowing that you would never do anything with the information or share it with anyone else? Why or why not? People working at the Revenue Canada tax department were caught just curiously looking up the reported incomes of movie stars and other high-profile public figures. Is this acceptable? Why or why not?