6Chapter

FoundationsofBusinessIntelligence:DatabasesandInformationManagementLEARNINGOBJECTIVESManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementDescribehowtheproblemsofmanagingdataresourcesinatraditionalfileenvironmentaresolvedbyadatabasemanagementsystemDescribethecapabilitiesandvalueofadatabasemanagementsystemApplyimportantdatabasedesignprinciplesEvaluatetoolsandtechnologiesforaccessinginformationfromdatabasestoimprovebusinessperformanceanddecisionmakingAssesstheroleofinformationpolicy,dataadministration,anddataqualityassuranceinthemanagementoffirm’sdataresourcesCanHPMineSuccessfromanEnterpriseDataWarehouse?Problem:HP’snumeroussystemsunabletodelivertheinformationneededforacompletepictureofbusinessoperations,lackofdataconsistencySolutions:Buildadatawarehousewithasingleglobalenterprise-widedatabase;replacing17databasetechnologiesand14,000databasesinuseCreatedconsistentdatamodelsforallenterprisedataandproprietaryplatformDemonstratesimportanceofdatabasemanagementincreatingtimely,accuratedataandreportsIllustratesneedtostandardizehowdatafromdisparatesourcesarestored,organized,andmanagedManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementOrganizingDatainaTraditionalFileEnvironmentFileorganizationconceptsComputersystemorganizesdatainahierarchyField:Groupofcharactersasword(s)ornumberRecord:GroupofrelatedfieldsFile:GroupofrecordsofsametypeDatabase:GroupofrelatedfilesRecord:DescribesanentityEntity:Person,place,thingonwhichwestoreinformationAttribute:Eachcharacteristic,orquality,describingentityE.g.,AttributesDateorGradebelongtoentityCOURSEManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementTheDataHierarchyFigure6-1Acomputersystemorganizesdatainahierarchythatstartswiththebit,whichrepresentseithera0ora1.Bitscanbegroupedtoformabytetorepresentonecharacter,number,orsymbol.Bytescanbegroupedtoformafield,andrelatedfieldscanbegroupedtoformarecord.Relatedrecordscanbecollectedtoformafile,andrelatedfilescanbeorganizedintoadatabase.ManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementOrganizingDatainaTraditionalFileEnvironmentProblemswiththetraditionalfileenvironment(filesmaintainedseparatelybydifferentdepartments)DataredundancyandinconsistencyDataredundancy:PresenceofduplicatedatainmultiplefilesDatainconsistency:SameattributehasdifferentvaluesProgram-datadependence:WhenchangesinprogramrequireschangestodataaccessedbyprogramLackofflexibilityPoorsecurityLackofdatasharingandavailabilityManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementOrganizingDatainaTraditionalFileEnvironmentTraditionalFileProcessingFigure6-2Theuseofatraditionalapproachtofileprocessingencourageseachfunctionalareainacorporationtodevelopspecializedapplicationsandfiles.Eachapplicationrequiresauniquedatafilethatislikelytobeasubsetofthemasterfile.Thesesubsetsofthemasterfileleadtodataredundancyandinconsistency,processinginflexibility,andwastedstorageresources.ManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementOrganizingDatainaTraditionalFileEnvironmentDatabaseCollectionofdataorganizedtoservemanyapplicationsbycentralizingdataandcontrollingredundantdataDatabasemanagementsystemInterfacesbetweenapplicationprogramsandphysicaldatafilesSeparateslogicalandphysicalviewsofdataSolvesproblemsoftraditionalfileenvironmentControlsredundancyEliminatesinconsistencyUncouplesprogramsanddataEnablesorganizationtocentralmanagedataanddatasecurityTheDatabaseApproachtoDataManagementManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementFigure6-3Asinglehumanresourcesdatabaseprovidesmanydifferentviewsofdata,dependingontheinformationrequirementsoftheuser.Illustratedherearetwopossibleviews,oneofinteresttoabenefitsspecialistandoneofinteresttoamemberofthecompany’spayrolldepartment.HumanResourcesDatabasewithMultipleViewsTheDatabaseApproachtoDataManagementRelationalDBMSRepresentdataastwo-dimensionaltablescalledrelationsorfilesEachtablecontainsdataonentityandattributesTable:gridofcolumnsandrowsRows(tuples):RecordsfordifferententitiesFields(columns):RepresentsattributeforentityKeyfield:FieldusedtouniquelyidentifyeachrecordPrimarykey:FieldintableusedforkeyfieldsForeignkey:Primarykeyusedinsecondtableaslook-upfieldtoidentifyrecordsfromoriginaltable ManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementTheDatabaseApproachtoDataManagementManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementFigure6-4AArelationaldatabaseorganizesdataintheformoftwo-dimensionaltables.IllustratedherearetablesfortheentitiesSUPPLIERandPARTshowinghowtheyrepresenteachentityanditsattributes.Supplier_NumberisaprimarykeyfortheSUPPLIERtableandaforeignkeyforthePARTtable.RelationalDatabaseTablesTheDatabaseApproachtoDataManagementManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementFigure6-4BRelationalDatabaseTables(cont.)TheDatabaseApproachtoDataManagementOperationsofaRelationalDBMSThreebasicoperationsusedtodevelopusefulsetsofdataSELECT:CreatessubsetofdataofallrecordsthatmeetstatedcriteriaJOIN:CombinesrelationaltablestoprovideuserwithmoreinformationthanavailableinindividualtablesPROJECT:Createssubsetofcolumnsintable,creatingtableswithonlytheinformationspecifiedManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementTheDatabaseApproachtoDataManagementManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementFigure6-5Theselect,project,andjoinoperationsenabledatafromtwodifferenttablestobecombinedandonlyselectedattributestobedisplayed.TheThreeBasicOperationsofaRelationalDBMSTheDatabaseApproachtoDataManagementObject-OrientedDBMS(OODBMS)StoresdataandproceduresasobjectsCapableofmanaginggraphics,multimedia,JavaappletsRelativelyslowcomparedwithrelationalDBMSforprocessinglargenumbersoftransactionsHybridobject-relationalDBMS:ProvidecapabilitiesofbothOODBMSandrelationalDBMSManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementTheDatabaseApproachtoDataManagementCapabilitiesofDatabaseManagementSystemsDatadefinitioncapability:Specifiesstructureofdatabasecontent,usedtocreatetablesanddefinecharacteristicsoffieldsDatadictionary:AutomatedormanualfilestoringdefinitionsofdataelementsandtheircharacteristicsDatamanipulationlanguage:Usedtoadd,change,delete,retrievedatafromdatabaseStructuredQueryLanguage(SQL)MicrosoftAccessusertoolsforgenerationSQLManyDBMShavereportgenerationcapabilitiesforcreatingpolishedreports(CrystalReports)ManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementTheDatabaseApproachtoDataManagementManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementFigure6-6MicrosoftAccesshasarudimentarydatadictionarycapabilitythatdisplaysinformationaboutthesize,format,andothercharacteristicsofeachfieldinadatabase.DisplayedhereistheinformationmaintainedintheSUPPLIERtable.ThesmallkeyicontotheleftofSupplier_Numberindicatesthatitisakeyfield.MicrosoftAccessDataDictionaryFeaturesTheDatabaseApproachtoDataManagementManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementFigure6-7IllustratedherearetheSQLstatementsforaquerytoselectsuppliersforparts137or150.TheyproducealistwiththesameresultsasFigure6-5.ExampleofanSQLQueryTheDatabaseApproachtoDataManagementManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementFigure6-8IllustratedhereishowthequeryinFigure6-7wouldbeconstructedusingquery-buildingtoolsintheAccessQueryDesignView.Itshowsthetables,fields,andselectioncriteriausedforthequery.AnAccessQueryTheDatabaseApproachtoDataManagementDesigningDatabasesConceptual(logical)design:abstractmodelfrombusinessperspectivePhysicaldesign:Howdatabaseisarrangedondirect-accessstoragedevicesDesignprocessidentifiesRelationshipsamongdataelements,redundantdatabaseelementsMostefficientwaytogroupdataelementstomeetbusinessrequirements,needsofapplicationprogramsNormalizationStreamliningcomplexgroupingsofdatatominimizeredundantdataelementsandawkwardmany-to-manyrelationshipsManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementTheDatabaseApproachtoDataManagementManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementFigure6-9Anunnormalizedrelationcontainsrepeatinggroups.Forexample,therecanbemanypartsandsuppliersforeachorder.Thereisonlyaone-to-onecorrespondencebetweenOrder_NumberandOrder_Date.AnUnnormalizedRelationforOrderTheDatabaseApproachtoDataManagementManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementFigure6-10Afternormalization,theoriginalrelationORDERhasbeenbrokendownintofoursmallerrelations.TherelationORDERisleftwithonlytwoattributesandtherelationLINE_ITEMhasacombined,orconcatenated,keyconsistingofOrder_NumberandPart_Number.NormalizedTablesCreatedfromOrderTheDatabaseApproachtoDataManagementEntity-relationshipdiagramUsedbydatabasedesignerstodocumentthedatamodelIllustratesrelationshipsbetweenentitiesDistributingdatabases:StoringdatabaseinmorethanoneplacePartitioned:SeparatelocationsstoredifferentpartsofdatabaseReplicated:CentraldatabaseduplicatedinentiretyatdifferentlocationsManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementTheDatabaseApproachtoDataManagementManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementFigure6-11ThisdiagramshowstherelationshipsbetweentheentitiesORDER,LINE_ITEM,PART,andSUPPLIERthatmightbeusedtomodelthedatabaseinFigure6-10.AnEntity-RelationshipDiagramTheDatabaseApproachtoDataManagementDistributingdatabasesTwomainmethodsofdistributingadatabasePartitioned:SeparatelocationsstoredifferentpartsofdatabaseReplicated:CentraldatabaseduplicatedinentiretyatdifferentlocationsAdvantagesReducedvulnerabilityIncreasedresponsivenessDrawbacksDeparturesfromusingstandarddefinitionsSecurityproblemsManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementTheDatabaseApproachtoDataManagementDistributedDatabasesFigure6-12Therearealternativewaysofdistributingadatabase.Thecentraldatabasecanbepartitioned(a)sothateachremoteprocessorhasthenecessarydatatoserveitsownlocalneeds.Thecentraldatabasealsocanbereplicated(b)atallremotelocations.ManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementTheDatabaseApproachtoDataManagement6.3UsingDatabasestoImproveBusinessPerformanceandDecisionMakingManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementVerylargedatabasesandsystemsrequirespecialcapabilities,toolsToanalyzelargequantitiesofdataToaccessdatafrommultiplesystemsThreekeytechniquesDatawarehousingDataminingToolsforaccessinginternaldatabasesthroughtheWebManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementDatawarehouse:StorescurrentandhistoricaldatafrommanycoreoperationaltransactionsystemsConsolidatesandstandardizesinformationforuseacrossenterprise,butdatacannotbealteredDatawarehousesystemwillprovidequery,analysis,andreportingtoolsDatamarts:SubsetofdatawarehouseSummarizedorhighlyfocusedportionoffirm’sdataforusebyspecificpopulationofusersTypicallyfocusesonsinglesubjectorlineofbusinessUsingDatabasestoImproveBusinessPerformanceandDecisionMakingComponentsofaDataWarehouseFigure6-13Thedatawarehouseextractscurrentandhistoricaldatafrommultipleoperationalsystemsinsidetheorganization.Thesedataarecombinedwithdatafromexternalsourcesandreorganizedintoacentraldatabasedesignedformanagementreportingandanalysis.Theinformationdirectoryprovidesuserswithinformationaboutthedataavailableinthewarehouse.ManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementUsingDatabasestoImproveBusinessPerformanceandDecisionMakingReadtheInteractiveSession:Organizations,andthendiscussthefollowingquestions:WhywasitsodifficultfortheIRStoanalyzethetaxpayerdataithadcollected?WhatkindofchallengesdidtheIRSencounterwhenimplementingitsCDW?Whatmanagement,organization,andtechnologyissueshadtobeaddressed?HowdidtheCDWimprovedecisionmakingandoperationsattheIRS?Aretherebenefitstotaxpayers?Doyouthinkdatawarehousescouldbeusefulinotherareasofthefederalsector?Whichones?Whyorwhynot?TheIRSUncoversTaxFraudwithaDataWarehouseManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementUsingDatabasestoImproveBusinessPerformanceandDecisionMakingManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementBusinessIntelligence:Toolsforconsolidating,analyzing,andprovidingaccesstovastamountsofdatatohelpusersmakebetterbusinessdecisionsE.g.,Harrah’sEntertainmentanalyzescustomerstodevelopgamblingprofilesandidentifymostprofitablecustomersPrincipletoolsinclude:SoftwarefordatabasequeryandreportingOnlineanalyticalprocessing(OLAP)DataminingUsingDatabasestoImproveBusinessPerformanceandDecisionMakingBusinessIntelligenceFigure6-14Aseriesofanalyticaltoolsworkswithdatastoredindatabasestofindpatternsandinsightsforhelpingmanagersandemployeesmakebetterdecisionstoimproveorganizationalperformance.ManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementUsingDatabasestoImproveBusinessPerformanceandDecisionMakingManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementOnlineanalyticalprocessing(OLAP)SupportsmultidimensionaldataanalysisViewingdatausingmultipledimensionsEachaspectofinformation(product,pricing,cost,region,timeperiod)isdifferentdimensionE.g.,howmanywasherssoldinEastinJunecomparedwithotherregions?OLAPenablesrapid,onlineanswerstoadhocqueriesUsingDatabasestoImproveBusinessPerformanceandDecisionMakingMultidimensionalDataModelFigure6-15Theviewthatisshowingisproductversusregion.Ifyourotatethecube90degrees,thefacethatwillshowisproductversusactualandprojectedsales.Ifyourotatethecube90degreesagain,youwillseeregionversusactualandprojectedsales.Otherviewsarepossible.ManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementUsingDatabasestoImproveBusinessPerformanceandDecisionMakingManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementDatamining:MorediscoverydriventhanOLAPFindshiddenpatterns,relationshipsinlargedatabasesandinfersrulestopredictfuturebehaviorE.g.,Findingpatternsincustomerdataforone-to-onemarketingcampaignsortoidentifyprofitablecustomers.TypesofinformationobtainablefromdataminingAssociationsSequencesClassificationClusteringForecastingUsingDatabasestoImproveBusinessPerformanceandDecisionMakingManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementPredictiveanalysisUsesdataminingtechniques,historicaldata,andassumptionsaboutfutureconditionstopredictoutcomesofeventsE.g.,ProbabilityacustomerwillrespondtoanofferorpurchaseaspecificproductTextminingExtractskeyelementsfromlargeunstructureddatasets(e.g.,storede-mails)UsingDatabasestoImproveBusinessPerformanceandDecisionMakingManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementWebminingDiscoveryandanalysisofusefulpatternsandinformationfromWWWE.g.,tounderstandcustomerbehavior,evaluateeffectivenessofWebsite,etc.TechniquesWebcontentminingKnowledgeextractedfromcontentofWebpagesWebstructureminingE.g.,linkstoandfromWebpageWebusageminingUserinteractiondatarecordedbyWebserverUsingDatabasestoImproveBusinessPerformanceandDecisionMakingManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementDatabasesandtheWebManycompaniesuseWebtomakesomeinternaldatabasesavailabletocustomersorpartnersTypicalconfigurationincludes:WebserverApplicationserver/middleware/CGIscriptsDatabaseserver(hostingDBM)AdvantagesofusingWebfordatabaseaccess:EaseofuseofbrowsersoftwareWebinterfacerequiresfewornochangestodatabaseInexpensivetoaddWebinterfacetosystemUsingDatabasestoImproveBusinessPerformanceandDecisionMakingLinkingInternalDatabasestotheWebFigure6-16Usersaccessanorganization’sinternaldatabasethroughtheWebusingtheirdesktopPCsandWebbrowsersoftware.ManagementInformationSystemsChapter6FoundationsofBusinessIntelligence:Databases

andInformationManagementUsingDatabasestoImproveBusinessPerformanceandDecisionMakingReadtheInteractiveSession:Technology,andthendiscussthefollowingquestions:Whatkindofdatab