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Chapter 3 Databases and Data Warehouses Building B usiness I ntelligence. What is the chapter all about. This chapter deals with the different elements of creating knowledge in an organization and having the right tools to work with this knowledge to gain Business Intelligence . - PowerPoint PPT Presentation
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3-3-11 Management Information Systems Management Information Systems
for the Information Agefor the Information Age
Copyright 2002 Copyright 2002 The McGraw-Hill Companies, Inc. The McGraw-Hill Companies, Inc.
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Chapter 3Chapter 3
Databases and Data WarehousesDatabases and Data Warehouses
Building Building BBusiness usiness IIntelligencentelligence
3-3-22 Management Information Systems Management Information Systems
for the Information Agefor the Information Age
Copyright 2002 Copyright 2002 The McGraw-Hill Companies, Inc. The McGraw-Hill Companies, Inc.
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What is the chapter all aboutWhat is the chapter all about
This chapter deals with the different This chapter deals with the different
elements of elements of creating knowledgecreating knowledge in an in an
organization and having the right organization and having the right toolstools to to
work with this knowledge to gainwork with this knowledge to gain
Business IntelligenceBusiness Intelligence..
3-3-33 Management Information Systems Management Information Systems
for the Information Agefor the Information Age
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What is the chapter all aboutWhat is the chapter all about
Having the right Having the right toolstools to create/build to create/build
Business IntelligenceBusiness Intelligence revolves around the revolves around the
capturing, use and management of capturing, use and management of
information, hence information, hence Information Resource Information Resource
ManagementManagement gains importance. gains importance.
3-3-44 Management Information Systems Management Information Systems
for the Information Agefor the Information Age
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What is the chapter all aboutWhat is the chapter all about
BUSINESSBUSINESSINTELLIGNECEINTELLIGNECE
KNOWLEDGEKNOWLEDGE
INFORMATIONINFORMATION
DATA DATA (Click next to continue)(Click next to continue)
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MA
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Click on mefor a shortcut.
Click on mefor a shortcut.
3-3-55 Management Information Systems Management Information Systems
for the Information Agefor the Information Age
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In order to understand how this gain in BI occurs you In order to understand how this gain in BI occurs you need to learn the following:need to learn the following:
1. Understand BI and where it comes from.
2. How is BI developed.
3. The IT necessary to develop BI.33
IT for BIIT for BI22
Dev.Dev.
11OriginOrigin
BIBI
3-3-66 Management Information Systems Management Information Systems
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DataData
InformationInformation
KnowledgeKnowledge
Business IntelligenceBusiness Intelligence
AggregationAggregation
BI and Where it Comes FromBI and Where it Comes From
EnvironmentEnvironment
3-3-77 Management Information Systems Management Information Systems
for the Information Agefor the Information Age
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• To Develop Business Intelligence (B.I.)To Develop Business Intelligence (B.I.)
Aggregate Information = KnowledgeAggregate Information = Knowledge
Manipulate Data = InformationManipulate Data = Information
Structure and Organize DataStructure and Organize Data
Gather DataGather Data
1. You need to gather data first.1. You need to gather data first.
2. You have to structure and 2. You have to structure and organize the data gathered.organize the data gathered.
3. You can then aggregate related 3. You can then aggregate related data into information.data into information.
4. Finally you can manipulate the 4. Finally you can manipulate the information into knowledge.information into knowledge.
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. I.
3-3-88 Management Information Systems Management Information Systems
for the Information Agefor the Information Age
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ITIT to Build BI to Build BIAggregate Information = KnowledgeAggregate Information = Knowledge
Manipulate Data = InformationManipulate Data = Information
Structure and Organize DataStructure and Organize Data
Gather DataGather Data
OnLine Transaction Processing
OnLine Transaction Processing
DataData
InformationInformation
KnowledgeKnowledge
Business IntelligenceBusiness Intelligence
Database Management Systems
Database Management Systems
Information Systems
Information Systems
Online Analytical Processing
Online Analytical Processing
3-3-99 Management Information Systems Management Information Systems
for the Information Agefor the Information Age
Copyright 2002 Copyright 2002 The McGraw-Hill Companies, Inc. The McGraw-Hill Companies, Inc.
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Aggregate Information = KnowledgeAggregate Information = Knowledge
Manipulate Data = InformationManipulate Data = Information
Structure and Organize DataStructure and Organize Data
Gather DataGather Data
OnLine Transaction Processing
OnLine Transaction Processing
DataDataInformationInformation
KnowledgeKnowledge
Business IntelligenceBusiness Intelligence
Database Management Systems
Database Management Systems
Information Systems
Information Systems
Online Analytical Processing
Online Analytical Processing
Online Transaction Processing (OLTP) is the gathering of input data, verifying for data quality and Online Transaction Processing (OLTP) is the gathering of input data, verifying for data quality and integrity and storing this data in the appropriate location in the database(s). OLTP systems also integrity and storing this data in the appropriate location in the database(s). OLTP systems also communicate with the consumer/client and provides them with receipts and reports of transactions communicate with the consumer/client and provides them with receipts and reports of transactions done.done.
3-3-1010 Management Information Systems Management Information Systems
for the Information Agefor the Information Age
Copyright 2002 Copyright 2002 The McGraw-Hill Companies, Inc. The McGraw-Hill Companies, Inc.
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Aggregate Information = KnowledgeAggregate Information = Knowledge
Manipulate Data = InformationManipulate Data = Information
Structure and Organize DataStructure and Organize Data
Gather DataGather Data
OnLine Transaction Processing
OnLine Transaction Processing
DataData
InformationInformationKnowledgeKnowledge
Business IntelligenceBusiness Intelligence
Database Management Systems
Database Management Systems
Information Systems
Information Systems
Online Analytical Processing
Online Analytical Processing
Databases and Database Management Systems (DBMS, such as Microsoft Access) are the Databases and Database Management Systems (DBMS, such as Microsoft Access) are the technology tools that directly support OLTP. Databases that support OLTP are most often referred to technology tools that directly support OLTP. Databases that support OLTP are most often referred to as operational databases. Inside these databases is valuable information that forms the basis for as operational databases. Inside these databases is valuable information that forms the basis for business intelligence.business intelligence.
3-3-1111 Management Information Systems Management Information Systems
for the Information Agefor the Information Age
Copyright 2002 Copyright 2002 The McGraw-Hill Companies, Inc. The McGraw-Hill Companies, Inc.
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Aggregate Information = KnowledgeAggregate Information = Knowledge
Manipulate Data = InformationManipulate Data = Information
Structure and Organize DataStructure and Organize Data
Gather DataGather Data
OnLine Transaction Processing
OnLine Transaction Processing
DataData
InformationInformation
KnowledgeKnowledgeBusiness IntelligenceBusiness Intelligence
Database Management Systems
Database Management Systems
Information Systems
Information Systems
Online Analytical Processing
Online Analytical Processing
Information systems at this point are developed to use the information found in the databases, Information systems at this point are developed to use the information found in the databases, manipulate them and use the results for different objectives such as creating reports, planning and manipulate them and use the results for different objectives such as creating reports, planning and making decisions. This manipulation of the information into another aggregated form is knowledge. making decisions. This manipulation of the information into another aggregated form is knowledge. Management Information Systems is one example.Management Information Systems is one example.
3-3-1212 Management Information Systems Management Information Systems
for the Information Agefor the Information Age
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Aggregate Information = KnowledgeAggregate Information = Knowledge
Manipulate Data = InformationManipulate Data = Information
Structure and Organize DataStructure and Organize Data
Gather DataGather Data
OnLine Transaction Processing
OnLine Transaction Processing
DataData
InformationInformation
KnowledgeKnowledge
Business IntelligenceBusiness Intelligence
Database Management Systems
Database Management Systems
Information Systems
Information Systems
Online Analytical Processing
Online Analytical Processing
Online Analytical Processing (OLAP) is the manipulation of the information to support decision Online Analytical Processing (OLAP) is the manipulation of the information to support decision making. “We’re finally comparing apples with apples, and now we’re spending only 10 percent of our making. “We’re finally comparing apples with apples, and now we’re spending only 10 percent of our time gathering data and 90% acting upon it, instead of the other way around.” Chapter 3, p. 79.time gathering data and 90% acting upon it, instead of the other way around.” Chapter 3, p. 79.
3-3-1313 Management Information Systems Management Information Systems
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Business IntelligenceBusiness IntelligenceFigure 3.1Figure 3.1
Building Building Business Business IntelligenceIntelligencepage 79page 79
3-3-1414 Management Information Systems Management Information Systems
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Aggregate Information = Knowledge & BIAggregate Information = Knowledge & BI
Manipulate Data = InformationManipulate Data = Information
Structure and Organize DataStructure and Organize Data
Gather DataGather Data
The relational database modelThe relational database model
IT for Business Intelligence IT for Business Intelligence (IT4BI MAP) (IT4BI MAP)
The Database Management SystemsThe Database Management Systems
Data Warehouses and Data Warehouses and Data MiningData Mining
3-3-1515 Management Information Systems Management Information Systems
for the Information Agefor the Information Age
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Aggregate Information = Knowledge & BIAggregate Information = Knowledge & BI
Manipulate Data = InformationManipulate Data = Information
Structure and Organize DataStructure and Organize Data
Gather DataGather Data
The relational database modelThe relational database model
IT4BIIT4BI
The Database Management SystemsThe Database Management Systems
Data Warehouses and Data Warehouses and Data MiningData Mining
Go to IT4BI Main PageGo to IT4BI Main Page
When a business wants to organize and store basic and transaction oriented data (of course for later When a business wants to organize and store basic and transaction oriented data (of course for later use to create business intelligence) they use databases. In reference to the relational database, then use to create business intelligence) they use databases. In reference to the relational database, then it is related data organized according to the logical structure the business information of interest.it is related data organized according to the logical structure the business information of interest.
Click on for detailsClick on for details
3-3-1616 Management Information Systems Management Information Systems
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Aggregate Information = Knowledge & BIAggregate Information = Knowledge & BI
Manipulate Data = InformationManipulate Data = Information
Structure and Organize DataStructure and Organize Data
Gather DataGather Data
The relational database modelThe relational database model
The Database Management SystemsThe Database Management Systems
Data Warehouses and Data Warehouses and Data MiningData Mining
Go to IT4BI Main PageGo to IT4BI Main Page
IT4BIIT4BI
Databases and DBMSs are the technology tools that directly support online analytical processing. Databases and DBMSs are the technology tools that directly support online analytical processing. With a DBMS you can create your database including its logical structure and constraints, manipulate With a DBMS you can create your database including its logical structure and constraints, manipulate the data and information contained and create a database application.the data and information contained and create a database application.
Click on for details
Click on for details
3-3-1717 Management Information Systems Management Information Systems
for the Information Agefor the Information Age
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Aggregate Information = Knowledge & BIAggregate Information = Knowledge & BI
Manipulate Data = InformationManipulate Data = Information
Structure and Organize DataStructure and Organize Data
Gather DataGather Data
The relational database modelThe relational database model
The Database Management SystemsThe Database Management Systems
Data Warehouses and Data Warehouses and Data MiningData Mining
Go to IT4BI Main PageGo to IT4BI Main Page
IT4BIIT4BI
Online Analytical Processing (OLAP) is the manipulation of the information to support decision Online Analytical Processing (OLAP) is the manipulation of the information to support decision making. “We’re finally comparing apples with apples, and now we’re spending only 10 percent of our making. “We’re finally comparing apples with apples, and now we’re spending only 10 percent of our time gathering data and 90% acting upon it, instead of the other way around.” Chapter 3, p. 79.time gathering data and 90% acting upon it, instead of the other way around.” Chapter 3, p. 79.
Click on for details
Click on for details
3-3-1818 Management Information Systems Management Information Systems
for the Information Agefor the Information Age
Copyright 2002 Copyright 2002 The McGraw-Hill Companies, Inc. The McGraw-Hill Companies, Inc.
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MANAGING THE INFORMATION RESOURCE MANAGING THE INFORMATION RESOURCE
The success of an organization strongly depends The success of an organization strongly depends
on the proper on the proper organizationorganization and and managementmanagement of the of the
information as it relates to the organizations’ short information as it relates to the organizations’ short
and long term objectives.and long term objectives.
3-3-1919 Management Information Systems Management Information Systems
for the Information Agefor the Information Age
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MANAGING THE INFORMATION RESOURCE MANAGING THE INFORMATION RESOURCE
Information officers.Information officers. The influence of changes in technology on the The influence of changes in technology on the
organizations information.organizations information. Information ownership.Information ownership. Ethical issues.Ethical issues.
Some of the issues that are important when it comes to Some of the issues that are important when it comes to the management of the information in the organization the management of the information in the organization are:are:
3-3-2020 Management Information Systems Management Information Systems
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Chief information officerChief information officer ( (CIOCIO)) - responsible for overseeing an - responsible for overseeing an organization’s information resource. organization’s information resource.
Data administrationData administration - plans for, oversees the development of, and - plans for, oversees the development of, and monitors the information resource. monitors the information resource.
Database administrationDatabase administration - responsible for the more technical and - responsible for the more technical and operational aspects of managing the information contained in operational aspects of managing the information contained in organizational databases.organizational databases.
MANAGING THE INFORMATION RESOURCEMANAGING THE INFORMATION RESOURCEWho Should Oversee the Organization’s Information?Who Should Oversee the Organization’s Information?
3-3-2121 Management Information Systems Management Information Systems
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MANAGING THE INFORMATION RESOURCE MANAGING THE INFORMATION RESOURCE How Will Changes in Technology Affect Organizing and Managing How Will Changes in Technology Affect Organizing and Managing
Information?Information?
As new technologies become available, you should ask As new technologies become available, you should ask yourself whether those technologies will help you yourself whether those technologies will help you organize and manage your information better. organize and manage your information better.
One of the greatest technological changes that will occur One of the greatest technological changes that will occur over the coming years is a convergence of different tools over the coming years is a convergence of different tools that will help you better organize and manage that will help you better organize and manage information. information.
3-3-2222 Management Information Systems Management Information Systems
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MANAGING THE INFORMATION RESOURCE MANAGING THE INFORMATION RESOURCE Is Information Ownership a Consideration?Is Information Ownership a Consideration?
Information ownership is a key Information ownership is a key consideration in today’s information-consideration in today’s information-based business environment. based business environment.
Ownership refers to who is Ownership refers to who is responsible for information quality.responsible for information quality.
On Your Own
CRUD – Defining Information Ownership
(p. 102)
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MANAGING THE INFORMATION RESOURCE MANAGING THE INFORMATION RESOURCE What Are the Ethics Involved in Managing and Organizing Information?What Are the Ethics Involved in Managing and Organizing Information?
Databases, data warehouses, DBMSs, and data Databases, data warehouses, DBMSs, and data mining tools make it possible for people to easily mining tools make it possible for people to easily access all kinds of organizational information. access all kinds of organizational information.
How does an organization safeguard against the How does an organization safeguard against the unethical use of information within the unethical use of information within the organization?organization?
3-3-2424 Management Information Systems Management Information Systems
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Closing Case Study OneClosing Case Study OneWe’ve Got OLTP Covered; Let’s Go on to OLAPWe’ve Got OLTP Covered; Let’s Go on to OLAP
What is the single most important factor that What is the single most important factor that hinders all organizations in general from hinders all organizations in general from providing good online analytical processing providing good online analytical processing (OLAP) support? (OLAP) support?
Why is it so much easier for organizations to Why is it so much easier for organizations to provide good online transaction processing provide good online transaction processing (OLTP) support? (OLTP) support?
3-3-2525 Management Information Systems Management Information Systems
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Closing Case Study TwoClosing Case Study TwoMining Dining DataMining Dining Data
Consider the issue of timely information Consider the issue of timely information with respect to the businesses discussed with respect to the businesses discussed in the case.in the case.
Which of the businesses must have the Which of the businesses must have the most up-to-date information in its data most up-to-date information in its data warehouse? warehouse?
3-3-2626 Management Information Systems Management Information Systems
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Summary Summary Student Learning OutcomesStudent Learning Outcomes
1.1. Describe business intelligence and its role in an Describe business intelligence and its role in an organization. organization.
2.2. Differentiate between databases and data warehouses Differentiate between databases and data warehouses with respect to their focus on online transaction with respect to their focus on online transaction processing and online analytical processing. processing and online analytical processing.
3.3. List and describe the key characteristics of a relational List and describe the key characteristics of a relational database. database.
4.4. Define the five software components of a database Define the five software components of a database management system. management system.
3-3-2727 Management Information Systems Management Information Systems
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Summary Summary Student Learning OutcomesStudent Learning Outcomes
5.5. List and describe the key characteristics List and describe the key characteristics of a data warehouse. of a data warehouse.
6.6. Define the four major types of data Define the four major types of data mining tools in a data warehouse mining tools in a data warehouse environment. environment.
7.7. List key considerations in managing the List key considerations in managing the information resource in an organization. information resource in an organization.
3-3-2828 Management Information Systems Management Information Systems
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Summary Summary Assignments & ExercisesAssignments & Exercises
1.1. Finding “hacked” databasesFinding “hacked” databases2.2. Defining queries for a video rental storeDefining queries for a video rental store3.3. Creating a queryCreating a query4.4. Career opportunities in your majorCareer opportunities in your major5.5. Salaries for database administratorsSalaries for database administrators
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Real Hot Electronic CommerceReal Hot Electronic CommerceSearching Online Databases and Information Searching Online Databases and Information
RepositoriesRepositories Financial aid resourcesFinancial aid resources LibrariesLibraries Consumer informationConsumer information DemographicsDemographics Real estateReal estate
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Visit the Web to Learn MoreVisit the Web to Learn Morewww.mhhe.com/haagwww.mhhe.com/haag
Financial aid resourcesFinancial aid resources LibrariesLibraries Consumer information Consumer information DemographicsDemographics Real estateReal estate Data warehouses and data mining toolsData warehouses and data mining tools
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AppendixAppendixBeyond this point the slides are notBeyond this point the slides are not
in any order. They are part of the interactivity.in any order. They are part of the interactivity.
3-3-3232 Management Information Systems Management Information Systems
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1. Understand BI and where it comes from.
2. How is BI developed.
3. The IT necessary to develop BI.33
IT for BIIT for BI22
Dev.Dev.
11OriginOrigin
BIBI
By referring to the origin of Business Intelligent, I am thinking of the "HOW". How is business intelligence obtained. Where does it come from.Business Intelligence (which we will refer to in here as BI for simplicity) is obtained by manipulating organization's knowledge towards a specific objective. This knowledge comes from information which comes from data. Therefore, remember the following "business molecular sequence":
BI <-- Knowledge <-- Information <-- Data [BIKID]
Back to where I was.
3-3-3333 Management Information Systems Management Information Systems
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1. Understand BI and where it comes from.
2. How is BI developed.
3. The IT necessary to develop BI.33
IT for BIIT for BI22
Dev.Dev.
11OriginOrigin
BIBI
Back to where I was.
The development of BI is more accurately stated as the development of an Information Infrastructure towards business intelligence. This includes the capturing of data, structuring and organizing it to obtain meaningful and useful information, and manipulating the information for knowledge gain, hence business intelligence.
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1. Understand BI and where it comes from.
2. How is BI developed.
3. The IT necessary to develop BI.33
IT for BIIT for BI22
Dev.Dev.
11OriginOrigin
BIBI
Back to where I was.
This information infrastructure does not occur on its own. You cannot buy an information infrastructure of the shelf. You need to acquire, use and maintain the IT to develop and build this information infrastructure. This includes database design, database management systems, data warehouses and data mining tools.
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Chapter 3Chapter 3
What is the chapter all about?What is the chapter all about?
Understanding Business IntelligenceUnderstanding Business Intelligence
IT4BI - MAPIT4BI - MAP
Where BI comes fromWhere BI comes from
To develop BITo develop BI
IT to build BIIT to build BI
DataData
InformationInformation
KnowledgeKnowledge
BIBI
The Relational Data ModelThe Relational Data Model
The DBMSThe DBMS
Data Warehouses and Data MiningData Warehouses and Data Mining
Managing Information ResourcesManaging Information Resources
Who should oversee the org. information?Who should oversee the org. information?
How will changes in tech. affect org. and managing information?How will changes in tech. affect org. and managing information?
Is information ownership a consideration?Is information ownership a consideration?
What are the ethical issuesWhat are the ethical issues
