1. 5.1 © 2007 by Prentice Hall 5 Chapter Foundations of Business Intelligence: Databases and Information Management

2. 5.2 © 2007 by Prentice Hall STUDENT OBJECTIVES Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management Describe how a relational database organizes data and compare its approach to an object- oriented database. Identify and describe the principles of a database management system. Evaluate tools and technologies for providing information from databases to improve business performance and decision making.

3. 5.3 © 2007 by Prentice Hall Assess the role of information policy and data administration in the management of organizational data resources. Assess the importance of data quality assurance for the business. STUDENT OBJECTIVES (Continued) Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

4. 5.4 © 2007 by Prentice Hall Data redundancy Program-data dependence Lack of flexibility Poor security Lack of data-sharing and availability Problems with the Traditional File Environment Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

5. 5.5 © 2007 by Prentice Hall Traditional File Processing Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

6. 5.6 © 2007 by Prentice Hall Bit: Smallest unit of data; binary digit (0,1) Byte: Group of bits that represents a single character Field: Group of words or complete number Record: Group of related fields File: Group of records of the same type Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management File Organization Terms and Concepts

7. 5.7 © 2007 by Prentice Hall The data hierarchy Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

8. 5.8 © 2007 by Prentice Hall The Database Approach to Data Management Database: a collection of related files containing records on people, places, or things Other terms: a. Entity: Person, place, thing, or event about which information must be kept b. Attribute: A piece of information describing a particular entity c. Key field: Field that uniquely identifies every record in a file Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

9. 5.9 © 2007 by Prentice Hall A specific type of software for creating, storing, organizing, and accessing data from a database Separates the logical and physical views of the data Logical view: how end users view data Physical view: how data are actually structured and organized Examples of DBMS: Microsoft Access, DB2, Oracle Database, Microsoft SQL Server, MYSQL DBMS Database Management Systems Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

10. 5.10 © 2007 by Prentice Hall The contemporary database environment Database Management Systems Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

11. 5.11 © 2007 by Prentice Hall The Database Approach to Data Management Organizing data in a relational database Fields, records, key fields, primary key, foreign key Establishing relationships Entity-relationship diagram, normalization, join table Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

12. 5.12 © 2007 by Prentice Hall A Relational Database Table Figure 5-1 A relational database organizes data in the form of two-dimensional tables. Illustrated here is a table for the entity SUPPLIER showing how it represents the entity and its attributes. Supplier_Number is the key field. The Database Approach to Data Management Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

13. 5.13 © 2007 by Prentice Hall A Simple Entity-Relationship Diagram Figure 5-3 This diagram shows the relationship between the entities SUPPLIER and PART. The Database Approach to Data Management Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

14. 5.14 © 2007 by Prentice Hall Operations of a Relational DBMS Select: creates a subset of records based on stated criteria Join: combines relational tables to present the user with more information than is available from individual tables Project: creates a subset consisting of columns in a table Database Management Systems Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

15. 5.15 © 2007 by Prentice Hall Capabilities of Database Management Systems Data definition Data dictionary Querying and reporting Data manipulation language Structured query language (SQL) Object-oriented databases Database Management Systems Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

16. 5.16 © 2007 by Prentice Hall Data Warehouses Using Databases to Improve Business Performance and Decision Making What is a data warehouse? A database that stores current and historical data that may be of interest to decision makers Data marts Subsets of data warehouses that are highly focused and isolated for a specific population of users Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

17. 5.17 © 2007 by Prentice Hall Components of a Data Warehouse Figure 5-13 The data warehouse extracts current and historical data from multiple operational systems inside the organization. These data are combined with data from external sources and reorganized into a central database designed for management reporting and analysis. The information directory provides users with information about the data available in the warehouse. Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management Using Databases to Improve Business Performance and Decision Making

18. 5.18 © 2007 by Prentice Hall Business intelligence: tools for consolidating, analyzing, and providing access to large amounts of data to improve decision making Online analytical processing (OLAP) Data mining and predictive analysis Associations Sequences Classifications Clusters Forecasts Business Intelligence, Multidimensional Data Analysis, and Data Mining Using Databases to Improve Business Performance and Decision Making Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

19. 5.19 © 2007 by Prentice Hall Using Databases to Improve Business Performance and Decision Making Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management Figure 5-14 A series of analytical tools works with data stored in databases to find patterns and insights for helping managers and employees make better decisions to improve organizational performance. Business Intelligence

20. 5.20 © 2007 by Prentice Hall Firms use the Web to make information from their internal databases available to customers and partners Middleware and other software make this possible Database servers CGI Web interfaces provide familiarity to users and savings over redesigning and rebuilding legacy systems Databases and the Web Using Databases to Improve Business Performance and Decision Making Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

21. 5.21 © 2007 by Prentice Hall Establishing an Information Policy Managing Data Resources An information policy states an organization’s rules for managing and storing information Data administration is responsible for the specific policies and procedures through which data can be managed as a resource Large organizations use a database design and management group to perform database administration Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management

22. 5.22 © 2007 by Prentice Hall Ensuring Data Quality Poor data quality is a major obstacle to successful customer relationship management Data quality problems can be caused by redundant and inconsistent data produced by multiple systems Data input errors are the cause of many data quality problems A data quality audit is a structured survey of the accuracy and completeness of data Data cleansing detects and corrects incorrect, incomplete, improperly formatted, and redundant data Managing Data Resources Essentials of Business Information Systems Chapter 5 Foundations of Business Intelligence: Databases and Information Management