Chapter 3 DATABASES AND DATA WAREHOUSES Building Business Intelligence
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1 Chapter 3 DATABASES AND DATA WAREHOUSES Building Business Intelligence
2 STUDENT LEARNING OUTCOMES List and describe the key characteristics of a relational database.Define the 5 software components of a DBMS.List and describe the key characteristics of a data warehouse.Define the 4 major types of data-mining tools.Describe the role of business intelligence.List key considerations in information ownership.
3 CAN COMPANIES KEEP YOUR PERSONAL INFORMATION PRIVATE AND SECURE? Databases are large repositories of detailed informationMuch of that information is personalOrganizations must protect that information from theft and lossMany (bad) people want to steal your personal information from the companies you do business with
4 Big Information Loss Examples CardSystems (40 million customers)Citigroup (3.9 million customers)DSW Shoe Warehouse (1.4 million customers)Bank of America (1.2 million customers)Wachovia (676,000 customers)TJX Companies – perhaps as many as 45.6 million customers
5 QuestionsHave you been a victim of identity theft? If so, what happened?What can you do to protect yourself from identity theft?How many organizations have your credit card number?
6 INTRODUCTIONBusinesses use many IT tools to manage and organize information for many reasonsOnline transaction processing (OLTP) – gathering and processing information and updating existing information to reflect the processed informationOnline analytical processing (OLAP) – manipulation of information to support decision making
7 INTRODUCTION OLTP OLAP Supports operational processingSales orders, accounts receivable, etcSupported by operational databases & DBMSsOLAPHelps build business intelligenceSupported by data warehouses and data-mining toolsData warehouse: a special form of a database that contains information gathered from operational databases for the purpose of supporting decision-making tasks.
9 CHAPTER ORGANIZATION Relational Database Model Learning Outcome #1Database Management System ToolsLearning Outcome #2Data Warehouses and Data MiningLearning Outcomes #3 & #4Business Intelligence RevisitedLearning Outcome #5Information OwnershipLearning Outcome #6
10 RELATIONAL DATABASE MODEL Database – collection of information that you organize and access according to the logical structure of that informationRelational database – series of logically related two-dimensional tables or files for storing informationRelation = table = fileMost popular database model
11 Database Characteristics Collections of informationCreated with logical structuresInclude logical ties within the informationInclude built-in integrity constraints
13 Database – Created with Logical Structures Data dictionary – contains the logical structure for the information in a databaseBefore you can enter information into a database, you must define the data dictionary for all the tables and their fields. For example, when you create the Truck table, you must specify that it will have three pieces of information and that Date of Purchase is a field in Date format.
14 Database – Logical Ties within the Information Primary key – field (or group of fields) that uniquely describes each recordForeign key – primary key of one file that appears in another fileCustomer Number is the primary key for Customer and appears in Order as a foreign key
16 Databases – Built-In Integrity Constraints Integrity constraints – rules that help ensure the quality of informationData dictionary, for example, defines type of information – numeric, date, and so onForeign keys – must be found as primary keys in another fileE.G., a Customer Number in the Order Table must also be present in the Customer Table
17 DATABASE MANAGEMENT SYSTEM TOOLS Database management system (DBMS) – helps you specify the logical requirements for a database and access and use the information in a database
18 5 Components of a DBMS DBMS engine Data definition subsystem Data manipulation subsystemApplication generation subsystemData administration subsystem
19 DBMS EngineDBMS engine – accepts logical requests from other DBMS subsystems, converts them into the physical equivalents, and access the database and data dictionary on a storage devicePhysical view – how information is physically arranged, stored, and accessed on a storage deviceLogical view – how you need to arrange and access information to meet your needs
20 Data Definition Subsystem Data definition subsystem – helps you create and maintain the data dictionary and structure of the files in a databaseThe data dictionary helps you define…Field namesData types (numeric, etc)Form (do you need an area code)Default valueIs an entry required, etc
21 Data Manipulation Subsystem Data manipulation subsystem – helps you add, change, and delete information in a database and query it to find valuable informationMost often your primary interfaceIncludes views, report generators, query-by-example tools, and structured query language
22 ViewView – allows you to see the contents of a database file, make changes, and query it to find informationBinoculars
23 Report GeneratorReport generator – helps you quickly define formats of reports and what information you want to see in a report
24 Query-by-Example Tool QBE tool – helps you graphically design the answer to a question
25 Structured Query Language SQL – standardized fourth-generation query language found in most DBMSsSentence-structure equivalent to QBEMostly used by IT professionals
26 Application Generation Subsystem Application generation subsystem – contains facilities to help you develop transaction-intensive applicationsMainly used by IT professionals
27 Data Administration Subsystem Data administration subsystem – helps you manage the overall database environment by providing facilities for…Backup and recoverySecurity managementQuery optimizationReorganizationConcurrency controlChange management
28 Data Administration Subsystem Backup and recovery – for backing up information and restarting (recovering) from a failureBackup – copy of information on a computerRecovery – process of reinstalling the backup information in the even the information was lost
29 Data Administration Subsystem Security management – for CRUD access – create, read, update, and deleteQuery optimization – to minimize response times for large, complex queriesReorganization – for physically rearranging the structure of the information according to how you most often access it
30 Data Administration Subsystem Concurrency control – what happens if two people attempt to make changes to the same recordChange management – how will structural changes impact the overall database
31 DATA WAREHOUSES AND DATA MINING Help you build and work with business intelligence and some forms of knowledgeData warehouse – collection of information (from many places) used to create business intelligence that supports business analysis activities and decision making
32 Data Warehouse Characteristics MultidimensionalRows, columns, and layersSupport decision making, not transaction processingContain summaries of informationNot every detail
33 Data-Mining ToolsData-mining tools – software tools you use to query information in a data warehouse
34 Data-Mining Tools Query-and-reporting tools Intelligent agents Similar to QBE tools, SQL, and report generators.Supported by many data warehousing environments.Used to generate simple queries and reports.Intelligent agentsUtilize artificial intelligence(AI) tools to help you “discover” information and trends.This is done by forming the basis of “information discovery” and building business intelligence in OLAP.Covered in chapter 4.
35 Data-Mining Tools Multidimensional analysis (MDA tools) Slice-and-dice techniques for viewing multidimensional information from different perspectivesFig 3.8. customer segment and timing of advertising actually hidden use MDA tools to bring them to the front of the data warehouse for viewing.Statistical toolsFor applying mathematical models to data warehouse information to discover new informationE.g. you can perform a time-series analysis to project future trends.
36 Data MartsData warehouses are organization wide, containing summaries of all the information an organization tracks.Some people need access to only a portion of the information.Data mart – subset of a data warehouse in which only a focused portion of the data warehouse information is kept.
37 Data Warehouse Considerations Do you really need one, or does your database environment support all your functions?ExpensiveBI could be extended from databasesExpensive & extensive supportDo all employees need a big data warehouse or a smaller data mart?How up-to-date must the information be?If crucial information changes every second then not possibleWhat data-mining tools do you need?
38 BUSINESS INTELLIGENCE REVISITED Business intelligence (BI) – collective information about customers, competitors, business partners, competitive environment, and your internal operations for making important, effective, and strategic business decisionsHot topic in business todayCurrent market is $50 billion and double-digit annual growth
39 BI Objectives Help people understand Capabilities of the organization State of the art, trends, and future directions of the marketTechnological, demographic, economic, political, social, and regulatory environments in which the organization competesActions of competitors
41 Viewing Business Intelligence A very important feature of many BI software packages is a digital dashboard.Digital dashboard – displays key information gathered from several sources in a format tailored to the needs and wants of an individual
42 INFORMATION OWNERSHIP Information is a resource you must manage and organize to help the organization meet its goals and objectivesYou need to considerStrategic management supportSharing information with responsibilityInformation cleanliness
43 Strategic Management Support Covered many c-level positions in Chapter 2 for IT2 others in information managementData administration – function that plans for, oversees the development of, and monitors the information resourceDatabase administration – function responsible for the more technical and operational aspects of managing organizational information
44 Sharing InformationEveryone can share – access and use whatever information he or she needs.But someone must “own” it by accepting responsibility for its quality and accuracy.
45 Information Cleanliness Related to ownership and responsibility for quality and accuracyNo duplicate informationNo redundant records with slightly different data, such as the spelling of a customer nameGIGO – if you have garbage information you get garbage information for decision making