Business Driven Information Systems 2e

1. Business Driven Information Systems 2e CHAPTER 6 DATABASES AND DATA WAREHOUSES

2. Chapter Six Overview • SECTION 6.1 – DATABASE FUNDAMENTALS • Organizational Information • Storing Organizational Information • Relational Database Fundamentals • Relational Database Advantages • Database Management Systems • Integrating Data Among Multiple Databases • SECTION 6.2 – DATA WARAEHOUSE FUNDAMENTALS • Accessing Organizational Information • History of Data Warehousing • Data Warehouse Fundamentals • Data Mining and Business Intelligence

3. SECTION 6.1 DATABASE FUNDAMENTALS

4. LEARNING OUTCOMES • List, describe, and provide an example of each of the five characteristics of high quality information • Define the relationship between a database and a database management system • Describe the advantages an organization can gain by using a database.

5. LEARNING OUTCOMES • Define the fundamental concepts of the relational database model • Describe the two primary methods for integrating information across multiple databases • Compare relational integrity constraints and business-critical integrity constraints • Describe the benefits of a data-driven website

6. Organizational Information • Information is everywhere in an organization • Employees must be able to obtain and analyze the many different levels, formats, and granularities of organizational information to make decisions • Successfully collecting, compiling, sorting, and analyzing information can provide tremendous insight into how an organization is performing

7. Organizational Information • Levels, formats, and granularities of organizational information

8. The Value of Transactional and Analytical Information

9. The Value of Timely Information • Timeliness is an aspect of information that depends on the situation • Real-time information – immediate, up-to-date information • Real-time system – provides real-time information in response to query requests

10. The Value of Quality Information • Business decisions are only as good as the quality of the information used to make the decisions • You never want to find yourself using technology to help you make a bad decision faster

11. The Value of Quality Information • Characteristics of high-quality information include: • Accuracy • Completeness • Consistency • Uniqueness • Timeliness

12. The Value of Quality Information • Low quality information example

13. Understanding the Costs of Poor Information • The four primary sources of low quality information include: • Customers intentionally enter inaccurate information to protect their privacy • Different entry standards and formats • Operators enter abbreviated or erroneous information by accident or to save time • Third party and external information contains inconsistencies, inaccuracies, and errors

14. Understanding the Costs of Poor Information • Potential business effects resulting from low quality information include: • Inability to accurately track customers • Difficulty identifying valuable customers • Inability to identify selling opportunities • Marketing to nonexistent customers • Difficulty tracking revenue • Inability to build strong customer relationships

15. Understanding the Benefits of Good Information • High quality information can significantly improve the chances of making a good decision • Good decisions can directly impact an organization's bottom line

16. Relational Database Fundamentals • Information is everywhere in an organization • Information is stored in databases • Database – maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouses)

17. Relational Database Fundamentals • Database models include: • Hierarchical database model • Network database model • Relational database model – stores information in the form of logically related two-dimensional tables

18. Entities and Attributes • Entity – a person, place, thing, transaction, or event about which information is stored • The rows in each table contain the entities • In Figure 6.5 CUSTOMER includes Dave’s Sub Shop and Pizza Palace entities • Attribute (field, column) – characteristics or properties of an entity class • The columns in each table contain the attributes • In Figure 6.5 attributes for CUSTOMER include Customer ID, Customer Name, Contact Name

19. Keys and Relationships • Primary keys and foreign keys identify the various entities (tables) in the database • Primary key – a field (or group of fields) that uniquely identifies a given entity in a table • Foreign key – a primary key of one table that appears an attribute in another table and acts to provide a logical relationship among the two tables

20. Potential relational database for Coca-Cola

21. Relational Database Advantages • Database advantages from a business perspective include • Increased flexibility • Increased scalability and performance • Reduced information redundancy • Increased information integrity (quality) • Increased information security

22. Increased Flexibility • A well-designed database should: • Handle changes quickly and easily • Provide users with different views • Have only one physical view • Physical view – deals with the physical storage of information on a storage device • Have multiple logical views • Logical view – focuses on how users logically access information

23. Increased Scalability and Performance • A database must scale to meet increased demand, while maintaining acceptable performance levels • Scalability – refers to how well a system can adapt to increased demands • Performance – measures how quickly a system performs a certain process or transaction

24. Reduced Information Redundancy • Databases reduce information redundancy • Redundancy – the duplication of information or storing the same information in multiple places • Inconsistency is one of the primary problems with redundant information

25. Increase Information Integrity (Quality) • Information integrity – measures the quality of information • Integrity constraint – rules that help ensure the quality of information • Relational integrity constraint • Business-critical integrity constraint

26. Increased Information Security • Information is an organizational asset and must be protected • Databases offer several security features including: • Password – provides authentication of the user • Accesslevel – determines who has access to the different types of information • Accesscontrol – determines types of user access, such as read-only access

27. Database Management Systems • Database management systems (DBMS) – software through which users and application programs interact with a database

28. Data-Driven Websites • Data-driven websites – an interactive website kept constantly updated and relevant to the needs of its customers through the use of a database

29. Data-Driven Websites

30. Data-Driven Website Business Advantages • Development • Content Management • Future Expandability • Minimizing Human Error • Cutting Production and Update Costs • More Efficient • Improved Stability

31. Data-Driven Business Intelligence

32. Integrating Information among Multiple Databases • Integration – allows separate systems to communicate directly with each other • Forward integration – takes information entered into a given system and sends it automatically to all downstream systems and processes • Backward integration – takes information entered into a given system and sends it automatically to all upstream systems and processes

33. Integrating Information among Multiple Databases • Forward integration

34. Integrating Information among Multiple Databases • Backward integration

35. Integrating Information among Multiple Databases • Building a central repository specifically for integrated information

36. OPENING CASE STUDY QUESTIONSIt Takes A Village to Write an Encyclopedia • Determine if an entry in Wikipedia is an example of transactional information or analytical information • What is the impact to Wikipedia if the information contained in its database is of low quality? • Review the five common characteristics of high quality information and rank them in order of importance to Wikipedia

37. OPENING CASE STUDY QUESTIONSIt Takes A Village to Write an Encyclopedia • How is Wikipedia resolving the issue of poor information? • Identify the different types of entities that might be stored in Wikipedia’s database • Why is database technology so important to Wikipedia’s business model?

38. SECTION 6.2 DATA WAREHOUSE FUNDAMENTALS

39. LEARNING OUTCOMES • Describe the roles and purposes of data warehouses and data marts in an organization • Compare the multidimensional nature of data warehouses (and data marts) with the two-dimensional nature of databases

40. LEARNING OUTCOMES • Identify the importance of ensuring the cleanliness of information throughout an organization • Explain the relationship between business intelligence and a data warehouse

41. HISTORY OF DATA WAREHOUSING • Data warehouses extend the transformation of data into information • In the 1990’s executives became less concerned with the day-to-day business operations and more concerned with overall business functions • The data warehouse provided the ability to support decision making without disrupting the day-to-day operations

42. DATA WAREHOUSE FUNDAMENTALS • Data warehouse – a logical collection of information – gathered from many different operational databases – that supports business analysis activities and decision-making tasks • The primary purpose of a data warehouse is to aggregate information throughout an organization into a single repository for decision-making purposes

43. DATA WAREHOUSE FUNDAMENTALS • Extraction, transformation, and loading (ETL) – a process that extracts information from internal and external databases, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouse • Data mart – contains a subset of data warehouse information

44. DATA WAREHOUSE FUNDAMENTALS

45. Multidimensional Analysis • Databases contain information in a series of two-dimensional tables • In a data warehouse and data mart, information is multidimensional, it contains layers of columns and rows • Dimension – a particular attribute of information

46. Multidimensional Analysis • Cube – common term for the representation of multidimensional information

47. Information Cleansing or Scrubbing • An organization must maintain high-quality data in the data warehouse • Information cleansing or scrubbing – a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information

48. Information Cleansing or Scrubbing • Contact information in an operational system

49. Information Cleansing or Scrubbing • Standardizing Customer name from Operational Systems

50. Information Cleansing or Scrubbing