3-1 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Chapter 3 Databases and Data Warehouses Building Business Intelligence

3-2 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Presentation Overview Business Intelligence Business Intelligence The Relational Database Model The Relational Database Model Database Management System Tools Database Management System Tools Data Warehouses and Data Mining Data Warehouses and Data Mining Managing The Information Resource In An Organization Managing The Information Resource In An Organization

3-3 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Opening Case Study High Tech Battles High School Truancy Organizations need databases (and data warehouses) for organizing and managing information. Organizations need databases (and data warehouses) for organizing and managing information. Why are the implementation of security and privacy measures difficult? Why are the implementation of security and privacy measures difficult?

3-4 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Business intelligence - is knowledge about your customers, competitors, partners, competitive environment, and internal operations. Business intelligence - is knowledge about your customers, competitors, partners, competitive environment, and internal operations. Two types of information processing include: Two types of information processing include:  OLTP – the processing of transaction information.  OLAP – manipulation of information to support decision making. Business Intelligence

3-5 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Business Intelligence

3-6 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved The Relational Database Model Database - a collection of information that you organize and access according to the logical structure of that information. Database - a collection of information that you organize and access according to the logical structure of that information. Relational database model - uses a series of logically related two-dimensional tables or files to store information in the form of a database. Relational database model - uses a series of logically related two-dimensional tables or files to store information in the form of a database. Relation - describes each two-dimensional table or file in the relational model. Relation - describes each two-dimensional table or file in the relational model.

3-7 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Relational databases are composed of two parts: Relational databases are composed of two parts: 1. Information – stored in a series of two- dimensional tables, files, or relations. 2. Logical structure of the information (data dictionary). The Relational Database Model

3-8 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved The Relational Database Model Collections of Information

3-9 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved The Relational Database Model Created with Logical Structures Part Number is the primary key because of the key icon beside it. For Percentage Markup, we defined its Format as “Percent” and its number of decimal places as 2.

3-10 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Primary key - a field (or group of fields in some cases) that uniquely describes each record. Primary key - a field (or group of fields in some cases) that uniquely describes each record. Foreign key - a primary key of one file that appears in another file. Foreign key - a primary key of one file that appears in another file. The Relational Database Model

3-11 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved The Relational Database Model With Logical Ties Among the Information

3-12 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved The Relational Database Model With Built-In Integrity Constraints Integrity constraints – rules that help ensure the quality of the information. Integrity constraints – rules that help ensure the quality of the information. Team Work Primary Keys, Foreign Keys, and Integrity Constraints (p. 133)

3-13 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Database Management System Tools

3-14 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved DBMS engine - accepts logical requests from the various other DBMS subsystems, converts them into their physical equivalent, and actually accesses the database and data dictionary as they exist on a storage device. DBMS engine - accepts logical requests from the various other DBMS subsystems, converts them into their physical equivalent, and actually accesses the database and data dictionary as they exist on a storage device. Database Management System Tools

3-15 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved DBMS Tools Data definition subsystem - helps you create and maintain the data dictionary and define the structure of the files in a database. Data definition subsystem - helps you create and maintain the data dictionary and define the structure of the files in a database. Data manipulation subsystem - helps you add, change, and delete information in a database and mine it for valuable information. Tools here include views, report generators, QBE, and SQL. Data manipulation subsystem - helps you add, change, and delete information in a database and mine it for valuable information. Tools here include views, report generators, QBE, and SQL.

3-16 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved DBMS Tools Data Manipulation Subsystem Click here to enter a new record. Find information using the binoculars.

3-17 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved DBMS Tools Data Manipulation Subsystem By following a series of simple screens, such as those on the previous slide, you can easily create the report below. By following a series of simple screens, such as those on the previous slide, you can easily create the report below.

3-18 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved DBMS Tools Data Manipulation Subsystem Query-by-example (QBE) tools - help you graphically design the answer to a question. Query-by-example (QBE) tools - help you graphically design the answer to a question.

3-19 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved DBMS Tools Data Manipulation Subsystem The QBE grid Our selection criteria

3-20 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved DBMS Tools Data Manipulation Subsystem Structured query language (SQL) - a standardized fourth-generation query language found in most DBMSs. Structured query language (SQL) - a standardized fourth-generation query language found in most DBMSs. The SQL below creates the same report in Figure 3.7 on page 139. The SQL below creates the same report in Figure 3.7 on page 139.  SELECT Part.[Part Number], Part.Cost, Employee.[Employee Name], Employee.[Employee Number] FROM Part, Employee WHERE (((Part.Cost)>10));

3-21 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved DBMS Tools Application Generation Subsystem Application generation subsystem - contains facilities to help you develop transaction-intensive applications. Application generation subsystem - contains facilities to help you develop transaction-intensive applications.  Data entry screens  DBMS-specific programming languages  Commonly used programming languages

3-22 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved DBMS Tools Data Administration Subsystem Data administration subsystem - a DBMS helps you manage the overall database environment (e.g., backup, recovery, security management). Data administration subsystem - a DBMS helps you manage the overall database environment (e.g., backup, recovery, security management). On Your Own DBMS Support OLTP, OLAP, and Information Management (p. 142)

3-23 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Data Warehouses and Data Mining What Is a Data Warehouse? Data warehouse - a logical collection of information – gathered from many different operational databases – used to create business intelligence that supports business analysis activities and decision- making tasks. Data warehouse - a logical collection of information – gathered from many different operational databases – used to create business intelligence that supports business analysis activities and decision- making tasks.

3-24 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Data Warehouses and Data Mining What Is a Data Warehouse?

3-25 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Data Warehouses and Data Mining What Are Data Mining Tools? Data mining tools - software tools you use to query information in a data warehouse. These tools include: Data mining tools - software tools you use to query information in a data warehouse. These tools include:  Query-and-reporting tools - similar to QBE tools, SQL, and report generators.  Intelligent agents – use various artificial intelligence tools to form the basis of information discovery and building business intelligence in OLAP.

3-26 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Data Warehouses and Data Mining What Are Data Mining Tools? Data mining tools continued Data mining tools continued  Multidimensional analysis (MDA) tools - slice-and-dice techniques that allow you to view multidimensional information from different perspectives.  Statistical tools – help you apply various mathematical models to the information stored in a data warehouse to discover new information.

3-27 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Data Warehouses and Data Mining What Are Data Mining Tools?

3-28 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved 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 mart - a subset of a data warehouse in which only a focused portion of the data warehouse information is kept.

3-29 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Data Warehouses and Data Mining Important Considerations Do you need a data warehouse? Do you need a data warehouse? Do all your employees need an entire data warehouse? Do all your employees need an entire data warehouse? How up-to-date must the information be? How up-to-date must the information be? What data mining tools do you need? What data mining tools do you need? Team Work How Up-to-Date Should Data Warehouse Information Be? (p. 149)

3-30 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved MANAGING THE INFORMATION RESOURCE Who Should Oversee the Organization’s Information? 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.

3-31 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved MANAGING THE INFORMATION RESOURCE How Will Changes in Technology Affect Organizing and Managing Information? Technology changes? Technology changes? Convergence of information management tools? Convergence of information management tools? Information ownership? Information ownership? Ethics? Ethics? On Your Own CRUD – Defining Information Ownership (p. 151)

3-32 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Closing Case Studies We’ve Got OLTP Covered; Let’s Go on to OLAP We’ve Got OLTP Covered; Let’s Go on to OLAP  Why is it so much easier for organizations to provide good online transaction processing (OLTP) support? Mining Dining Data Mining Dining Data  Which of the businesses must have the most up-to- date information in its data warehouse?

3-33 Management Information Systems for the Information Age Copyright 2004 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

3-34 Management Information Systems for the Information Age Copyright 2004 The McGraw-Hill Companies, Inc. All rights reserved Visit the Web to Learn More 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