Information Technology For Managers: Business Intelligence and Big Data

2e
Chapter 9
Business
Intelligence
and Big Data
Information Technology for Managers

George W. Reynolds
Strayer University
Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
Learning Objectives
• What are business intelligence and big data, and
how can they be used to improve the operations
and results of an organization?
• What are some of the basic business intelligence
and big data tools, and how are they used?

2
What is Business Intelligence?
3
Business Intelligence
• Various applications, practices, and technologies to
support improved decision making
• Employed by organizations to make and act on
predictions about future conditions
• Tools operate on data stored in a data warehouse
or data mart
4
Data Warehouse
• Stores large amounts of historical data in a form
that readily supports analysis and management
decision making
• Employed by organizations to hold data required to
make key business decisions
• Data comes from numerous operational systems
and external data sources

5
Figure 9.1 - Extract, Transform, and
Load Process

6
ETL Process and Data Marts
• Extract-transform-load (ETL) process
– Used to pull data from disparate data sources to
populate and maintain the data warehouse
– Involves extract, transform, and load steps
– Run as frequently as necessary
• Data mart: Smaller version of a data warehouse
– Designed from scratch as a complete, individual,
miniature data warehouse

7
What is Big Data?
8
Big Data
• Describes data collections that are large and
complex
• Cannot be dealt by traditional data management
software, hardware, and analysis processes

9
Structured Data
• Structured data: Format of the data is known in
advance
– Data fits into traditional databases
– Rationale database model: Organizes structured
data into collections of two dimensional tables called
relations
– ACID properties (atomicity, consistency,
isolation, and durability)
• Adapted by SQL databases
• Guarantee database transactions are processed
reliably and ensure the integrity of data
10
Unstructured Data
• Data that is not organized in any predefined
manner
• Does not fit into relational databases
• Exists in large quantities and comes from various
sources
• Adds a depth to data analysis

11
NoSQL Database, Hadoop, and In-
Memory Database
NoSQL database
• Stores and retrieves data in a way that does not rigidly enforce
the ACID conditions
Hadoop
• Open-source software framework designed for processing large

volumes of data
• Divides the work into a set of independent tasks that are
executed in parallel on a large number of servers
In-memory database
• Stores an entire database in random access memory (RAM)

12
Figure 9.3 - Hadoop as a Staging Area for Loading
Data into a Data Warehouse or Data Mart

13
Business Intelligence (BI) Tools
14
Business Intelligence Tools
• Spreadsheets
– Perform operations on the data based on formulas
created by the end user
– Create useful reports and graphs based on that data
• Reporting and querying
– Present data in an easy to understand fashion
– Enable end users to make their own data requests
and format the results without the need for additional
help from the IT organization

15
(continued 1)
• Online analytical processing (OLAP)
– Analyzes multidimensional data from different
perspectives
– Enables users to identify issues and opportunities
and perform trend analysis
– Data cubes
• Contain numeric facts called measures
• Categorized by dimensions such as time and
geography

16
Figure 9.5 - Three-Dimensional Data
Cube

17
(continued 2)
• Drill-down analysis: Enables decision makers to
gain insight into the details of business data to
understand why something happened
– Interactive examination of high-level summary data
in increasing detail to understand certain elements

18
(continued 3)
• Data mining: Used to explore large amounts of
data for hidden patterns
– Predicts future trends and behaviors for use in
decision making
– Commonly used techniques
• Association analysis
• Neural computing
• Case-based reasoning

19
(continued 4)
– Steps involved in data mining process
• Selection
• Preprocessing
• Transformation
• Actual data mining process
• Evaluation of results

20
Figure 9.6 - Data Mining Leads to Informed
Action Based on New Knowledge

21
Dashboards
• Present a set of key performance indicators about
the state of a process at a specific point in time
– Key performance indicators (KPIs)
• Track progress in executing chosen strategies
• Consist of a direction, measure, target, and time frame
• Options for displaying results
– Maps, gauges, bar charts, trend lines, scatter
diagrams, and other representations
• Provide users with information at every level to
make informed decisions
Guide to Microsoft Virtual PC 2005 and Virtual Server 2007

22
Figure 9.7 - Sample Summary
Dashboard
Source: www.microstrategy.com/us/analytics/technology.
23
Data Governance
• Helps ensure that a firm has reliable and actionable
data to make informed business decisions
• Involves management of availability, usability,
integrity, and security of data in an organization
• Requires establishing a data governance body
• Ensures meeting regulatory and compliance
requirements

24
Table 9.4 - Data Governance
Components
ormation Technology for Managers

25
Challenges of Big Data
26
Big Data: Challenges
• Choice of data, place, and the method of storage
• Privacy concerns associated with data mining
– Corporations harvesting and mining huge amounts
of personal data that can be shared with other
organizations
• Security concerns

27
Summary
• Business intelligence
– Extraction, transformation, integration, analysis, and
presentation of data
– Supports improved decision making
• Extract-transform-load (ETL) process is employed
to gather data from multiple sources
• Big data describes data collections that are large
and complex that traditional data management
systems are incapable of handling

28
Summary (continued)
• Dashboard presents a set of key performance
indicators about the state of a process at a specific
point in time
• Data governance involves the management of the
availability, usability, integrity, and security of the
data used in an organization
• Challenges of big data include choice of data,
place and the method of storage, privacy and
security concerns

29

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2e

Information Technology for Managers

Information Technology for Managers

Information Technology for Managers

Information Technology for Managers

Information Technology for Managers

Information Technology for Managers

Information Technology for Managers

• Open-source software framework designed for processing large

• Stores an entire database in random access memory (RAM)

Information Technology for Managers

Information Technology for Managers

Information Technology for Managers

Information Technology for Managers

Information Technology for Managers

Information Technology for Managers

Information Technology for Managers

Information Technology for Managers

Guide to Microsoft Virtual PC 2005 and Virtual Server 2007

Information Technology for Managers

ormation Technology for Managers

Information Technology for Managers

Information Technology for Managers

Information Technology for Managers

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