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Foundations of Business Intelligence: Databasesand

Information Management
Dilhani Abeykoon
Department of Marketing
Organizing Data in a Traditional File
Faculty of Management and Finance
University of Ruhuna Environment

Learning Objectives Organizing Data in a Traditional File Environment

▪ File organization concepts

✓ Describe how the problems of managing data resources in a traditional file environment
Database: Group of related files
are solved by a database managementsystem
File: Group of records of sametype
✓ Describe the capabilities and value of a database managementsystem
Record: Group of related fields
✓ Apply important database design principles
Field: Group of characters as word(s) or number
✓ Evaluate tools and technologies for accessing information from databases to improve
business performance and decisionmaking
▪ Describes an entity (person, place, thing on which we storeinformation)
✓ Assess the role of information policy, data administration, and data quality assurance in
o Attribute: Each characteristic, or quality, describing entity
the management of a firm’s data resources • E.g., Attributes Date or Grade belong to entity COURSE

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The Data Hierarchy

Cont.

• A computer system organizes data • T he use of a traditional

in a hierarchy that starts with the bit, approach to file processing
encourages each functional area
which represents either a 0 or a 1. in a corporation to develop
Bits can be grouped to form a byte specialized applications. Each
to represent one character, number, application requires a unique
data file that is likely to be a
or symbol. Bytes can be grouped to subset of the master file. These
form a field, and related fields can subsets of the master file lead to
be groupedto form a record. Related data redundancy and
inconsistency, processing
records can be collected to form a inflexibility, and wasted storage
file, and related files can be resources.
organized into a database.

Cont. Paper Based Systems

Problems with the traditional file environment (files maintained separately by

different departments)
▪ For ages, businesses have been following a paper-based document management model.
✓ Data redundancy: Decades ago, the documents may not have been as detailed and the document
• Presence of duplicate data in multiple files
management systems not as elaborate as now; but they still were systems.
✓ Data inconsistency:
▪ Easy handling: As paper is physically tangible and visible, Such documents can be stored
• Same attribute has differentvalues
systematically in files, folders, cabinets etc.
✓ Program-data dependence:
• When changes in program requires changes to data accessed byprogram ▪ Reproduction: You can copy a document by using a photocopier machine
✓ Lack of flexibility
✓ Poor security
✓ Lack of data sharing and availability
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Paper based vs. electronic DBMS Database & DBMS

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Database Management System Popular DBMS Software

• MySQL
• Microsoft Access
▪ Database management system is a software which is used to manage the database. For
• Oracle
example: MySQL, Oracle, etc. are a very popular commercial database which is used in
• PostgreSQL
different applications
• dBASE
• FoxPro
▪ DBMS provides an interface to perform various operations like database creation, storing • SQLite
data in it, updating data, creating a table in the database and a lot more • IBM DB2
• LibreOffice Base

▪ It provides protection and security to the database. In the case of multiple users, it also • MariaDB
• Microsoft SQL
maintains data consistency.
Server etc.

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Why Use DBMS? Types of Databases

▪ To develop software applications In less time ▪ Numeric and Textual Databases

▪ Data independence and efficient use of data ▪ Multimedia Databases

▪ For uniform data administration (Picture, Audio, Video clips, Voice, Sound, messages)

▪ For data integrity and security ▪ Geographic Information Systems GIS

▪ For concurrent access to data, and data recovery from crashes (maps, weather data, satelliteimages)

▪ To use user-friendly declarative query language

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University Database

▪ The STUDENT file stores data of each student

▪ The COURSE file stores contain data on each course.
Application of ▪ The SECTION stores the information about sections in a particular course.
DBMS
▪ The GRADE file stores the grades which students receive in the varioussections
▪ The TUTOR file contains information about each professor.

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University Database Example Types of Databases

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What is RDBMS

▪ RDBMS stands for Relational Database Management Systems.

▪ All modern database management systems like SQL, MS SQL Server, IBM DB2, ORACLE,
My-SQL and Microsoft Access are based on RDBMS.

RDBMS 20

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How it works What is field?

What is row or record?
▪ Data is represented in terms of tuples (rows) in RDBMS
What is column?
▪ Relational database is most commonly used database. It contains number of tables and
each table has its own primary key

▪ Due to a collection of organized set of tables, data can be accessed easily in RDBMS

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What is table? Cont.

▪ The RDBMS database uses tables to store data. A table is a collection of related data
entries and contains rows and columns to storedata.

▪ A table is the simplest example of data storage in RDBMS

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Cont. What is primary key?

▪ A primary key constrain is a column or group of columns that uniquely identifies every row
in the table of the relational database management system. It cannot be a duplicate,
meaning the same value should not appear more than once in thetable.

▪ A table can have more than one primary key.

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Cont. Why use Primary Key?

▪ The main aim of the primary key is to identify each and every record in the database table

▪ You can use a primary key when you do not allow someone to enter null values

▪ If you delete or update records, the action you specified will be undertaken to make sure
data integrity

▪ Perform restrict operation to rejects delete or update operation for the parent table.

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Example: Primary Key Why use Foreign Key?

▪ Foreign keys help you to migrate entities using a primary key from the parent table.

▪ A foreign key enables you to link two or more tables together.

▪ It makes your database data consistent.

▪ A foreign key can be used to match a column or combination of columns with primary key

in a parent table.

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What is Foreign Key? Example: Foreign Key

▪ A foreign key is a key used to link two tables together. This is sometimes also called as a
referencing key. A Foreign Key is a column or a combination of columns whose values
match a Primary Key in a different table.

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Cont. Cont.

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Cont. Insert Operation

Update Operation

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Delete Operation

Select Operation

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The Database Approach to Data Management

Examples
✓ Designing Databases
• Conceptual (logical) design: Abstract model from business perspective
• Physical design: How database is arranged on direct-access storagedevices

✓ Design process identifies

• Relationships among data elements, redundant databaseelements
• Most efficient way to group data elements to meet business requirements, needs of
application programs

✓ Normalization
• Streamlining complex groupings of data to minimize redundant data elements and
awkward many-to-many relationships

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• Very large databases and systems require special capabilities, tools

• To analyze large quantities of data
• To access data from multiple systems

• Three key techniques

1. Data warehousing

2. Data mining

3. Tools for accessing internal databases through the Web

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Improve Business Performance and Decision

Making 44

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• Data warehouse:
✓ Stores current and historical data from many core operational
transaction systems
✓ Consolidates and standardizes information for use across enterprise, but data
cannot be altered
✓ Data warehouse system will provide query, analysis, and reporting tools

• Data marts:
✓ Subset of data warehouse
✓ Summarized or highly focused portion of firm’s data for use by specific
population of users
✓ Typically focuses on single subject or line of business

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• Business Intelligence:
-Tools for consolidating, analyzing, and providing access to vast amounts of data
to help users make better business decisions

-E.g., Harrah’s Entertainment analyzes customers to develop gambling profiles and

identify most profitable customers

- Principle tools include:

• Software for database query and reporting
• Online analytical processing (OLAP)
• Data mining

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• Data mining: • Predictive analysis

▪ More discovery driven than OLAP ✓ Uses data mining techniques, historical data, and assumptions about
▪ Finds hidden patterns, relationships in large databases and infers rules to future conditions to predict outcomes of events
predict future behavior
✓ E.g., Probability a customer will respond to an offer
▪ E.g., Finding patterns in customer data for one-to-one marketing campaigns or
to identify profitable customers.
▪ Types of information obtainable from data mining
o Associations • Text mining
o Sequences
o Classification
✓ Extracts key elements from large unstructured data sets (e.g., stored
o Clustering e-mails)
o Forecasting

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