Lec 11

BUSS 215
Business Analytics (I)
Jiye BAEK
Department of MIS
Korea University Business School
TODAY
BUSS215: Introduction to MIS
Fundamentals IT Trends and Applications
Online Platform
Digital Economy
Business Analytics
Big Data Analytics

E-Commerce
Emerging Technologies
BUSS215 © Jiye BAEK 2

Data management + Business Analytics
support key trends in data-driven enterprises and BIG
data

data
BUSS215: Introduction to MIS
Fundamentals IT Trends and Applications
Online Platform
Digital Economy
Business Analytics
Big Data Analytics

E-Commerce
Emerging Technologies

data
Database Design and Administration
Fundamental concepts of database management systems and their usage for
managing the information resources of an organization; methodologies for designing
and managing a database system to support business applications.
Business Intelligence and Data Mining

This course covers the fundamental concepts, technologies, and applications of
business intelligence (BI) to help firms gain a competitive advantage. Topics include
data mining, data warehousing, business analytics, data visualization, business
performance management, etc. Students will gain hands-on experience with popular
BI tools.

BUSINESS ANALYTICS(I)
Database
What is database
E-R Diagram
Database design

What makes up an MIS?

IT Infrastructure
Networking
IT
Hardware Software
Infrastructure
Data
management
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IT Infrastructure
Networking
IT
Hardware Software
Infrastructure
Data
management
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HAVE YOU EVER EXPERIENCED THIS?
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HOW CAN AMAZON KEEP TRACK OF
SO MANY ORDERS, CUSTOMERS, AND PRODUCT?
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DATABASE MANAGEMENT SYSTEMS (DBMS)

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PROBLEMS WITH LISTS
Problems with lists (traditional file environment)
Data redundancy
Presence of duplicate data in multiple files
Data inconsistency
Same attribute has different values
Poor security
Lack of data sharing and availability
Problems with data redundancy

Waste of space to have duplicate data
Causes more maintenance headaches
Data changes in one file could cause inconsistencies

CUSTOMER TABLE

PRODUCT TABLE

ORDER TABLE

DBMS is not very good at visualizing tables and relations
à Thus, ER Diagram

SIMPLE ERD LOOKS LIKE THIS

HOW DO DATA MODELS FACILITATE DATABASE DESIGN?
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ENTITY RELATIONSHIP DIAGRAM
Entity and Attributes
Entity
Generalized category representing person, place, thing on which we
store and maintain information
E.g., Supplier, Part
Attributes
Specific characteristics of each entity
E.g., Supplier’s name, Supplier’s address, Part’s description, Part’s unit price

EACH TABLE = ENTITY

COLUMN = ATTRIBUTE

ENTITY RELATIONSHIP DIAGRAM
How is data stored in a
database? Table
Student ID First N. Last N. Group N.
20129382 Amy Wong Group TW
20234876 Lily Lewis Group FB
Primary key 32743524 Joe Winson Group TW
23746423 Alex Tam Group TW
A special attribute, or group of special
45734653 Jimmy Tam Group FB
attributes, that uniquely identifies an 28935762 Alex Chan Group IG
individual record 93457347 Howard Lee Group IG
Cannot be duplicated 93588723 Doe Smith Group FB

…
Primary Key… … …
Examples
• your ID number can be used to identify you
and only you in Blackboard database Primary Key Rules
• order number to describe “who sells which
product to whom”
1. Unique
NOT every attribute can be a primary key. 2. Never Changing
3. Never null

WHAT ARE THE PRIMARY KEYS?

PRIMARY KEYS
PK Customer_ID
PK Product_ID PK Order_ID

PRIMARY KEY

PRIMARY KEY

PRIMARY KEY

PRIMARY KEY

PRIMARY KEY

RELATIONAL DATABASE
Relational Database
Use common fields between tables to create linkage between them
This common field must be the primary key for one of the tables
linked, and it is called a foreign key for the other table.
A foreign key has to be a primary key in another table
Customer table
Cust. ID Cust. Name Reward Program
… … …
Cust. ID is
Ø the primary key for
Transaction table the customer table
Trans. Trans. Store ID Cashier Cust. ID Prod. ID Ø the foreign key for
ID Time ID the transaction table
… … … … …

FOREIGN KEYS

FOREIGN KEYS
Customer_ID FK
Product_ID FK

FOREIGN KEYS
Foreign keys don’t have to be unique.

They can be repeated in a table.
There can be multiple foreign keys in one entity
Customer_ID FK
Product_ID FK

PK AND FK

CARDINALITY
▊ Cardinality – a property of a relationship, the extent of participation
‧ Can an employee be managed by one manager, or by many manager(s)?
‧ Can a sale transaction involved many customers, or only one?
▊ Useful for understanding and defining business rules
▊ Defining constraints on entity-participation in the relationship
▊ Can capture both the minimum and maximum degree of participation

‧ E.g., should a student participate at least in one course?
▊ In
the ERD – cardinality is represented by using the “crows-foot”
notation
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CARDINALITY
CARDINALITY RELATIONS VISUALIZED
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CARDINALITY
CARDINALITY EXAMPLES
Each instance of A is related to a minimum of

A B
zero and a maximum of one instance of B
Each instance of B is related to a minimum of

A B
one and a maximum of one instance of A
Each instance of A is related to a minimum of

A B
one and a maximum of many instances of B
Each instance of B is related to a minimum of

A B
zero and a maximum of many instances of A
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REPRESENTING CARDINALITIES IN ERD
(HOW SHOULD WE “READ” THESE EXAMPLES?)
Manages
Manager Department
A manager manages one and only one department, and a department is managed by
one and only one manager
Works at/Employed by
Employee Resort
An employee works at zero or one resort, and a resort employees one or more employees
Visits Resort
Customer
A customer visits one or more resorts, and each resort may have zero or more (zero, one or
many) customers.
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ENTITY
▊ The
entity (or entity-class) represents a type of object with some
common characteristics:
‧ Persons: agency, contractor, customer, department, division, employee, instructor,
student, supplier
‧ Places: sales region, building, room, branch office, campus
‧ Objects: book, machine, part, product, raw material, software license, software package,
tool, vehicle model, vehicle
‧ Events: application, award, cancellation, class, flight, invoice, order, registration, renewal,
requisition, reservation, sale, trip
‧ Concepts: account, block of time, bond, course, fund, qualification, stock
▊ We can say that the entities are the “nouns” in our data model
▊ In
the ERD we represent each entity by a rectangle with the unique
name.
‧ Choose a simple name that makes business sense (Business rule)
‧ Entity names are Singular – E.g., “Student” not “Students”
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EXAMPLE – ENTITIES IN A HOTEL ENVIRONMENT
• Which entities are important?

• Resort
• Customer
• Employee Resort Customer
• Product
– What are the products in this case?
– Any other important entity?
Employee Product
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RELATIONSHIPS
▊ Therelationship (or relationship-class) represents how instances that

belong to two or more entities are associated with each other in the
“real-world”
‧ If entities are the “nouns”, relationships are the “verbs” or verb phrases…
‧ E.g., An instructor (entity) teaches course (entity) to a student (entity)
▊ In
the ERD – a relationship is often represented by a “straight line
connecting two entities.
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EXAMPLE – RELATIONSHIP
1. A Customer visits a Resort

2. An Employee serves a Customer Resort Visits Customer
3. A Customer buys a Product
– Can you detect any other important
relationships in this diagram?
es
Buys
rv
Se
Employee Product
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A FULL DIAGRAM
Resort Visits
Customer
Offer ces
s Ser vi
Works At Buys
Employee Sells
Product
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ATTRIBUTES (FIELDS)
▊ Characteristics of an entity or a relationship
▊ The “data” elements that are important to collect about instances of

entities and relationships
‧ E.g. Student: Student-ID, First Name, Last Name
‧ E.g. Course: Course-Number, Title, Section, Semester, Year
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Customer
Resort Customer ID#
Resort ID# Cust Name
Resort Name Cust Type
Address Line 1 Visits Cust Phone #
City Cust Arrival Date
State Cust Depart Date
Zip
Offers
r ves
se
Buys
Works
at
Employee Product
Employee ID# Product ID#
Employee Name Item
Salary Sells Unit Price
Position Name
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Customer
Resort Customer ID#
Resort ID# Cust Name
Resort Name Cust Type
Address Line 1 Visits Cust Phone #
City Cust Arrival Date
State Cust Depart Date
?? ??
Zip Offers es
r v
se
Buys
Works at
?? ?? Product
Employee Sells
Employee ID# Product ID#
Employee Name Item
Salary Is Sold by Unit Price
Position Name
What Cardinalities should be in place where the red circles exist?

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ERD – THE IMPORTANCE OF PROPER DESCRIPTION
▊ The
ERD provides a convenient visual representation of the
conceptual/logical model
‧ A great communication tool between business managers and IT-personnel
▊ However… the diagram alone doesn’t provide all the information

needed!
▊ Together
with the diagram, it is important to provide some
documentation that describes:
‧ The entity, the relationships, and their attributes
‧ Justify the cardinalities
§ Especially, if any of the above is not obvious and “straight forward”
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CONVERTING AN ERD TO DATABASE DESIGN
● If the ERD is the logical model, Database Design is the physical model
● Conversion
o Entities become tables
o Entity’s attributes become table columns
o Add Foreign Keys (create table columns for foreign keys)
o Create intermediary tables for many-to-many-relationships
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STUDENT
Student ID
Last Name
First Name
Enrolls in/Contain
PROFESSOR
SECTION CLASSROOM
Professor ID
FirstName Taught by Section ID Is taught in Room ID
LastName Time Room Number
Email Room ID Room Capacity
Phone
Sample ERD Diagram with Cardinality
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ERD DB DESIGN
PROFESSOR PROFESSOR PROFESSOR
SECTION SECTION
SECTION
ERD Entities become tables
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ERD DB DESIGN
PROFESSOR PROFESSOR PROFESSOR
Professor ID ProfessorID
ProfessorID FirstName LastName Email
FirstName FirstName
LastName LastName
Email Email
Phone Phone
SECTION SECTION
SECTION
Section ID
SectionID SectionID Time Room ID
Time
Time
Room ID
Room ID
ERD Entities become tables
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PROFESSOR
ProfessorID PROFESSOR
FirstName
LastName ProfessorID FirstName LastName Email
Email
Phone 111 Kennen Kelley KKelley@bu.edu
SECTION
SECTION
SectionID SectionID ProfessorID Time Room ID

ProfessorID*
Time QM111 111 11am 225
Room ID
Adding Foreign Keys to Database Design
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ERD VS DATABASE
In ERD, it is perfectly acceptable to have a many-to-many relationship, for

example:
STUDENT SECTION
Student ID Enrolls / Is Enrolled By Section ID

FirstName Time
LastName Room ID
A student enrolls in one or more sections, and a section is enrolled by zero or more students
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ERD VS DATABASE
● However, in database design, many-to-many relationships are not allowed:

only one-to-many
● Instead, an intermediary table must be created
● The intermediary table will have a one-to-many relationship with both

entities
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ERD VS DATABASE
STUDENT Section
Student_ID LastName FirstName Section_ID Section_ID Room ID Time
U345761298 Bond James IS223 IS223 228 2:00
U345761298 Bond James LA245 LA245 224 12:30
U987349876 Bjergson Soren LA245 SM221 101 10:00
U871237673 Johnson Peter SM221
U871237673 Johnson Peter IS223

FK
Databases don’t allow many-to-many relationships
What if we did not have an intermediary table?
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ERD VS DATABASE: THE INTERMEDIARY TABLE
STUDENT ENROLL SECTION
Student_ID LastName FirstName Student_ID Section_ID Section_ID Room ID Time
U345761298 Bond James U345761298 IS223 IS223 228 2:00
U987349876 Bjergson Soren U345761298 LA245 LA245 224 12:30
U871237673 Johnson Peter U345761298 SM221 SM221 101 10:00

U987349876 IS223
U987349876 LA245
U987349876 SM221
U871237673 IS223
U871237673 LA245
Many-to-Many implementation in database design
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ERD VS DATABASE
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ERD VS DATABASE
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ERD VS DATABASE
STUDENT
Student ID
Last Name
First Name
Enrolls in/Contain
PROFESSOR
SECTION CLASSROOM
Professor ID
FirstName Taught by Section ID Is taught in Room ID
Email RoomID Room Capacity
Phone
Sample ERD Diagram with Cardinality
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Intermediary table
STUDENT ENROLL SECTION

1 ∞ 1
Section ID
Student ID
Student ID ∞ Professor ID
Last Name
Section ID Time
First Name
Room ID
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STUDENT ENROLL
1 ∞
Student ID Student ID
∞
Last Name Section ID
First Name Semester
PROFESSOR SECTION ClassROOM

1 1
ProfessorID Section ID
FirstName ∞ 1
Professor ID Room ID
Email ∞ Room Capacity
Room ID
Phone
Example Finalized Database Design
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Exercise: Fitness First Database Design

TAKE-AWAYS
▊ Data models (ERD) are essential to effective database design
▊ Datamodels (ERD) are used to specify the entities and relationships of

the database.
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TAKE-AWAYS
▊ Datamodels must accurately represent the business rules and

requirements of the organization or process.
▊ Thiscan’t be left purely to the technical staff! Business people have a

real stake in being involved.
▊ Effective
queries and reports require that the correct data model be in
place and instantiated in the database application.
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BUSS 215

Business Analytics (I)

BUSS215: Introduction to MIS

Fundamentals IT Trends and Applications

Big Data Analytics

BUSS215 © Jiye BAEK 2

BUSS215 © Jiye BAEK 3

Fundamentals IT Trends and Applications

Big Data Analytics

BUSS215 © Jiye BAEK 4

Business Intelligence and Data Mining

BUSS215 © Jiye BAEK 55

BUSS215 © Jiye BAEK 6

BUSS215 © Jiye BAEK 7

BUSS215 © Jiye BAEK 13

Problems with data redundancy

BUSS215 © Jiye BAEK 20

BUSS215 © Jiye BAEK 30

BUSS215 © Jiye BAEK 31

BUSS215 © Jiye BAEK 32

BUSS215 © Jiye BAEK 33

BUSS215 © Jiye BAEK 36

BUSS215 © Jiye BAEK 41

BUSS215 © Jiye BAEK 43

BUSS215 © Jiye BAEK 44

Cannot be duplicated 93588723 Doe Smith Group FB

BUSS215 © Jiye BAEK 46

BUSS215 © Jiye BAEK 47

BUSS215 © Jiye BAEK 48

BUSS215 © Jiye BAEK 49

BUSS215 © Jiye BAEK 50

BUSS215 © Jiye BAEK 51

BUSS215 © Jiye BAEK 52

BUSS215 © Jiye BAEK 53

BUSS215 © Jiye BAEK 54

BUSS215 © Jiye BAEK 55

BUSS215 © Jiye BAEK 56

Foreign keys don’t have to be unique.

BUSS215 © Jiye BAEK 57

BUSS215 © Jiye BAEK 58

▊ Useful for understanding and defining business rules

▊ Defining constraints on entity-participation in the relationship

▊ Can capture both the minimum and maximum degree of participation

Each instance of A is related to a minimum of

Each instance of B is related to a minimum of

Each instance of A is related to a minimum of

Each instance of B is related to a minimum of

• Which entities are important?

▊ Therelationship (or relationship-class) represents how instances that

1. A Customer visits a Resort

▊ Characteristics of an entity or a relationship

▊ The “data” elements that are important to collect about instances of

What Cardinalities should be in place where the red circles exist?

▊ However… the diagram alone doesn’t provide all the information

Sample ERD Diagram with Cardinality

PROFESSOR PROFESSOR PROFESSOR

ERD Entities become tables

PROFESSOR PROFESSOR PROFESSOR

ERD Entities become tables

SectionID SectionID ProfessorID Time Room ID

Adding Foreign Keys to Database Design

In ERD, it is perfectly acceptable to have a many-to-many relationship, for

Student ID Enrolls / Is Enrolled By Section ID

● However, in database design, many-to-many relationships are not allowed: