CHAPTER 6: Foundation of business intelligence: databases and information management

JULIAN LOZANO TRANG HUYNH

Organizing data in a traditional file

File organization term and concept o The data hierarchy Problems with the traditional file environment o Data redundancy and inconsistency o Program-data dependence o Lack of flexibility o Poor security o Lack of data sharing and availability

Data hierarchy

Data redundancy and inconsistency

Is the presence of duplicate data in multiple data files Where the same attribute may have different values

Program-data dependence

Refers to the coupling of data stored in files and the specific programs required to update and maintain those files such that changes in programs require changes to the data.

Lack of flexibility

A traditional system deliver routine scheduled reports after extensive programming effort, but not hoc reports or respond to unanticipated information.

Poor security

Little control and management of data

Lack of data sharing

Pieces of information in different files and different parts of the organization

The database approach to data management

Database management system o How a DBMS solves the problem of the traditional file environment o Relational DBMS o Operations of a relational DBMS o Object-oriented DBMS o Database in the cloud Capabilities of database management system o Quering and reporting Design database o Normalization and entity-relationship diagram

How a DBMS solves the problem of the traditional file enviroment

Reduce data redundancy minimizing isolated files.

Relational DBMS

Is a DBMS in which data is stored in tables and the relationships among the data are also stored in tables. The data can be accessed or reassembled in many different ways without having to change the table forms.

Operation of a relational DBMS

Data can be combined to deliver required data

Object-orientated DBMS

Stored the data and produce that act on those data as object that can be automatically retrieved and shared

Database in the cloud

Querying and reporting

Manipulation information in database

Normalization and entityrelationship diagram

Describes how the data elements in the database are to be grouped

6.3 USING DATABASES TO IMPROVE BUSINESSES PERFORMANCE AND DECISION MAKING I- Data Warehouse o Data warehouse o Data mart II- Tools for Business Intelligence o Online Analytical Processing o Data mining o Text mining o Web mining

Data warehouse

Is a database that stores current and historical data of potential interest to decision makers Consolidates and Standardizes info from different databases Provides a range of ad hoc and a variety of tools Cannot be altered

Data mart

Is a subset of data warehouse Can be constructed more rapidly Lower cost

Online Analytical Processing (OLAP)

Enables users to view same data in different ways using multiple dimensions Enables users to obtain online answers to ad hoc question

Data mining

o o o o o

Is more discovery-driven Provides corporate data Types of info obtainable from data mining Associations Sequences Classification Clustering Forecasting

Text mining

Extracts key elements from large unstructured data sets Discover patterns and relationships Summarizes those info

Web mining

o o

Discovers and Analyzes useful patterns and info from WWW Helps companies in many ways Advantages: Much easier to use Requires few/no changes to internal database Cost less

6.4 MANAGE DATA RESOURCE

I- Information Policy o Info policy o Data administration o Data governance II- Ensure data quality o Quality audit o Data cleansing

Thank you for your attention!!!