Chapter 3 Databases and Data Warehouses Building B usiness I ntelligence

1. Chapter 3 Databases and Data Warehouses Building Business Intelligence Management Information Systems for the Information Age

2. 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. Management Information Systems for the Information Age

3. What is the chapter all about Having the right tools to create/build Business Intelligence revolves around the capturing, use and management of information, hence Information Resource Management gains importance. Management Information Systems for the Information Age

4. What is the chapter all about Click on me for a shortcut. Click on me for a shortcut. Management Information Systems for the Information Age

5. In order to understand how this gain in BI occurs you need to learn the following: Understand BI and where it comes from. How is BI developed. The IT necessary to develop BI. Management Information Systems for the Information Age

6. BI and Where it Comes From Environment Management Information Systems for the Information Age

7. To Develop Business Intelligence (B.I.) 4. Finally you can manipulate the information into knowledge. 3. You can then aggregate related data into information. Building Towards B. I. 2. You have to structure and organize the data gathered. Management Information Systems for the Information Age

8. IT to Build BI Online Analytical Processing Information Systems Database Management Systems Management Information Systems for the Information Age

9. Online Analytical Processing Information Systems Database Management Systems 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 communicate with the consumer/client and provides them with receipts and reports of transactions done. Management Information Systems for the Information Age

10. Online Analytical Processing Information Systems Database Management Systems 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 as operational databases. Inside these databases is valuable information that forms the basis for business intelligence. Management Information Systems for the Information Age

11. Online Analytical Processing Information Systems Database Management Systems 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 making decisions. This manipulation of the information into another aggregated form is knowledge. Management Information Systems is one example. Management Information Systems for the Information Age

12. Online Analytical Processing Information Systems Database Management Systems 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 time gathering data and 90% acting upon it, instead of the other way around.” Chapter 3, p. 79. Management Information Systems for the Information Age

13. Business Intelligence Figure 3.1 Building Business Intelligence page 79 Management Information Systems for the Information Age

14. IT for Business Intelligence (IT4BI MAP) Data Warehouses and Data Mining The Database Management Systems The relational database model Management Information Systems for the Information Age

15. IT4BI Data Warehouses and Data Mining The Database Management Systems The relational database model 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 it is related data organized according to the logical structure the business information of interest. Go to IT4BI Main Page Management Information Systems for the Information Age

16. IT4BI Data Warehouses and Data Mining The Database Management Systems The relational database model 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 the data and information contained and create a database application. Go to IT4BI Main Page Management Information Systems for the Information Age

17. IT4BI Data Warehouses and Data Mining The Database Management Systems The relational database model 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 time gathering data and 90% acting upon it, instead of the other way around.” Chapter 3, p. 79. Go to IT4BI Main Page Management Information Systems for the Information Age

18. MANAGING THE INFORMATION RESOURCE The success of an organization strongly depends on the proper organization and management of the information as it relates to the organizations’ short and long term objectives. Management Information Systems for the Information Age

19. MANAGING THE INFORMATION RESOURCE Some of the issues that are important when it comes to the management of the information in the organization are: • Information officers. • The influence of changes in technology on the organizations information. • Information ownership. • Ethical issues. Management Information Systems for the Information Age

20. MANAGING THE INFORMATION RESOURCEWho Should Oversee the Organization’s Information? • Chief information officer (CIO) - responsible for overseeing an organization’s information resource. • Data administration - plans for, oversees the development of, and monitors the information resource. • Database administration - responsible for the more technical and operational aspects of managing the information contained in organizational databases. Management Information Systems for the Information Age

21. MANAGING THE INFORMATION RESOURCE How Will Changes in Technology Affect Organizing and Managing Information? • As new technologies become available, you should ask yourself whether those technologies will help you organize and manage your information better. • One of the greatest technological changes that will occur over the coming years is a convergence of different tools that will help you better organize and manage information. Management Information Systems for the Information Age

22. On Your Own CRUD – Defining Information Ownership(p. 102) MANAGING THE INFORMATION RESOURCE Is Information Ownership a Consideration? • Information ownership is a key consideration in today’s information-based business environment. • Ownership refers to who is responsible for information quality. Management Information Systems for the Information Age

23. MANAGING THE INFORMATION RESOURCE What Are the Ethics Involved in Managing and Organizing Information? • Databases, data warehouses, DBMSs, and data mining tools make it possible for people to easily access all kinds of organizational information. • How does an organization safeguard against the unethical use of information within the organization? Management Information Systems for the Information Age

24. Closing Case Study OneWe’ve Got OLTP Covered; Let’s Go on to OLAP • What is the single most important factor that hinders all organizations in general from providing good online analytical processing (OLAP) support? • Why is it so much easier for organizations to provide good online transaction processing (OLTP) support? Management Information Systems for the Information Age

25. Closing Case Study TwoMining Dining Data • Consider the issue of timely information with respect to the businesses discussed in the case. • Which of the businesses must have the most up-to-date information in its data warehouse? Management Information Systems for the Information Age

26. Summary Student Learning Outcomes • Describe business intelligence and its role in an organization. • Differentiate between databases and data warehouses with respect to their focus on online transaction processing and online analytical processing. • List and describe the key characteristics of a relational database. • Define the five software components of a database management system. Management Information Systems for the Information Age

27. Summary Student Learning Outcomes • List and describe the key characteristics of a data warehouse. • Define the four major types of data mining tools in a data warehouse environment. • List key considerations in managing the information resource in an organization. Management Information Systems for the Information Age

28. Summary Assignments & Exercises • Finding “hacked” databases • Defining queries for a video rental store • Creating a query • Career opportunities in your major • Salaries for database administrators Management Information Systems for the Information Age

29. Real Hot Electronic CommerceSearching Online Databases and Information Repositories • Financial aid resources • Libraries • Consumer information • Demographics • Real estate Management Information Systems for the Information Age

30. Visit the Web to Learn Morewww.mhhe.com/haag • Financial aid resources • Libraries • Consumer information • Demographics • Real estate • Data warehouses and data mining tools Management Information Systems for the Information Age

31. AppendixBeyond this point the slides are notin any order. They are part of the interactivity. Management Information Systems for the Information Age

32. 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] Understand BI and where it comes from. How is BI developed. The IT necessary to develop BI. Back to where I was. Management Information Systems for the Information Age

33. 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. Understand BI and where it comes from. How is BI developed. The IT necessary to develop BI. Back to where I was. Management Information Systems for the Information Age

34. 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. Understand BI and where it comes from. How is BI developed. The IT necessary to develop BI. Back to where I was. Management Information Systems for the Information Age

35. Management Information Systems for the Information Age