Foundations of Business

Intelligence: Databases
and\Information Managementq
A computer system organizes data in a hierarchy
that starts with bits and bytes and progresses to
fields, records, files, and databases
 Managing Data in a Traditional File
Environment
File organization concepts
Database: Group of related files
File: Group of records of same type
Record: Group of related fields
Field: Group of characters as word(s) or number
Describes an entity (person, place, thing on which we
store information)
Attribute: Each characteristic, or quality, describing
entity
Example: Attributes DATE or GRADE belong to entity COURSE
THE DATA HIERARCHY
 Managing Data in a Traditional File
Environment
Problems with the traditional file environment (files
maintained separately by different departments)
Data redundancy:
Presence of duplicate data in multiple files

Data inconsistency:
Same attribute has different values

Program-data dependence:
When changes in program requires changes to data
accessed by program (One program might be modified
from a five-digit to a nine-digit ZIP code.)
 Lack of flexibility (cannot deliver ad hoc reports )

Poor security (who is accessing or even making

changes to the organizations data.)

Lack of data sharing and availability

TRADITIONAL FILE PROCESSING
Capabilities of Database Management Systems
Database
Serves many applications by centralizing data and
controlling redundant data
Database management system (DBMS)
Interfaces between applications and physical data files
Separates logical and physical views of data
Solves problems of traditional file environment
Controls redundancy
Eliminates inconsistency
Enables organization to central manage data and data security
HUMAN RESOURCES DATABASE WITH
MULTIPLE VIEWS
Capabilities of Database Management Systems
Relational DBMS
Represent data as two-dimensional tables
Each table contains data on entity and attributes

Table: grid of columns and rows

Rows (tuples): Records for different entities
Fields (columns): Represents attribute for entity
Key field: Field used to uniquely identify each record
Primary key: Field in table used for key fields
Foreign key: Primary key used in second table as look-up field to
identify records from original table
Relational Database Tables
Capabilities of Database Management Systems
Operations of a Relational DBMS
Three basic operations used to develop useful
sets of data
SELECT: Creates subset of data of all records
that meet stated criteria

JOIN: Combines relational tables to provide

user with more information than available in
individual tables

PROJECT: Creates subset of columns in table,

creating tables with only the information
specified
THREE BASIC OPERATIONS OF A RELATIONAL
DBMS

FIGURE 6-5 The select, join, and project operations enable data from two different tables to be combined and only
selected attributes to be displayed.
Capabilities of Database Management Systems
Data definition capability: Specifies structure of
database content, used to create tables and
define characteristics of fields

Data dictionary: Automated or manual file storing

definitions of data elements and their
characteristics

Data manipulation language: Used to add,

change, delete, retrieve data from database
Structured Query Language (SQL)
Microsoft Access user tools for generating SQL
MICROSOFT ACCESS DATA DICTIONARY FEATURES

FIGURE 6-6 Microsoft Access has a rudimentary data dictionary capability that displays information about the size, format,
and other characteristics of each field in a database. Displayed here is the information maintained in the
SUPPLIER table. The small key icon to the left of Supplier_Number indicates that it is a key field.
 EXAMPLE OF AN SQL QUERY

FIGURE 6-7 Illustrated here are the SQL statements for a query to select suppliers for parts 137 or 150. They produce a list
with the same results as Figure 6-5.
USING DATABASES TO IMPROVE
BUSINESS PERFORMANCE AND
DECISION MAKING
Why Businesses need databases
To keep track of basic transactions
Paying suppliers,
Processing orders,
Keeping track of customers, and
Paying employees
 To provide information
Help the company run the business
more efficiently
Help managers and employees make
better decisions

To know which product is the most popular or

who is its most profitable customer, the answer
lies in the data
 Tools for Improving Business
Performance and Decision Making
Data warehousing,
Data mining, and
Tools for accessing internal databases
through the Web
 DATA WAREHOUSES
The data warehouse extracts current
and historical data from multiple
operational systems inside the
organization.

These data are combined with data

from external sources and reorganized
into a central database.
 The data warehouse makes the data available
for anyone to access as needed, but it cannot
be altered.

Provides a range of ad hoc and standardized

query tools, analytical tools, and graphical
reporting facilities

Many firms use intranet portals to make the

data warehouse information widely available
throughout the firm.
Tools for Improving Business Performance and
Decision Making
Data marts:
Subset of data warehouse

Summarized or focused portion of data

for use by specific population of users

Typically focuses on single subject so it

usually can be constructed more rapidly
and at lower cost than an enterprise-
wide data warehouse.
Online Analytical Processing (OLAP)
OLAP supports multidimensional data
analysis

Enabling users to view the same data in

different ways using multiple
dimensions.

OLAP enables users to obtain online

answers to ad hoc questions
 A matrix of actual sales can be stacked on
top of a matrix of projected sales to form
a cube with six faces.

Rotate the cube 90 degrees one way, the

face showing will be product versus
actual and projected sales.
 Rotate the cube 90 degrees again, you
will see region versus actual and
projected sales.

Rotate 180 degrees from the original

view, you will see projected sales and
product versus region.
 Data Mining
Traditional database queries answer such
questions as, How many units of product
number 403 were shipped in February 2010?

OLAP, such as Compare actual and projected

sale of product 403.

Data mining is more discovery-driven.

 Data mining provides insights into
corporate data by finding hidden patterns
and relationships in large databases and
inferring rules from them to predict future
behavior.
The types of information obtainable from data
mining include
Associations,
Sequences,
Classifications,
Clusters, and
Forecasts
 Associations are occurrences linked to a single
event.

when corn chips are purchased, a cola drink is

purchased 65 percent of the time,
but when there is a promotion, cola is purchased
85 percent of the time.
managers make better decisions because they
have learned the profitability of a promotion.
 In sequences, events are linked over time.

for example,
if a house is purchased, a new refrigerator will be
purchased within two weeks 65 percent of the
time, and
an oven will be bought within one month of the
home purchase 45 percent of the time.
 Classification recognizes patterns that describe
the group to which an item belongs by
examining existing items.

For example,
businesses such as credit card or telephone
companies worry about the loss of steady
customers. Classification helps discover the
characteristics of customers who are likely to
leave
 Clustering works in a manner similar to
classification when no groups have yet
been defined.

Partitioning a database into groups of

customers based on demographics and
types of personal investments.
Tools for Improving Business Performance and
Decision Making

Databases and the Web

Many companies use Web to make some internal
databases available to customers or partners
Typical configuration includes:
Web server
Application server/middleware/CGI scripts
Database server (hosting DBMS)
Advantages of using Web for database access:
Ease of use of browser software
Web interface requires few or no changes to database
Inexpensive to add Web interface to system
LINKING INTERNAL DATABASES TO THE WEB

FIGURE 6-14 Users access an organizations internal database through the Web using their desktop PCs and Web browser
software.