Chapter 6

Foundations of
Business Intelligence:
Databases and
Information
Management
Lecture 5
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management
Lecture 5

LEARNING OBJECTIVES

• Why is data management so essential

• How do information systems arrange data in computer files

• Describe basic file organization concepts and the problems

of managing data resources in a traditional file
environment.

• Describe the principles of a database management system

and the features of a relational database.
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management
Lecture5

LEARNING OBJECTIVES (cont’d)

• Evaluate tools and technologies for providing information

from databases to improve business performance and
decision making.

• Assess the role of information policy, data administration,

and data quality assurance in the management of
organizational data resources.
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management
Lecture 5

Data management
Effective information systems provides user
 Accurate (free of errors)
 Timely (available when it is needed)
 Relevant( useful and appropriate for the types of
work and decision that requires it)
 Most businesses don’t have this because data in
their information systems have been poorly
organized and maintained.
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management
Lecture5

File organization concepts

• Computer system uses hierarchies
Bit-Byte-Field-Record-File-Database
• Bit:0 and 1
• Byte: group of bits single character, example Letter, number
• Field: Group of characters into words( persons name, age)
• Record: Group of related fields
• File: Group of records of same type
• Database: Group of related files
• Record: Describes an entity
• Entity: Person, place, thing on which we store information
• Attribute: Each characteristic, or quality, describing entity
• E.g. Attributes Student ID,Course, Date or Grade belong to entity
COURSE
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

The Data Hierarchy

A computer system
organizes data in a
hierarchy that starts
with the bit, which
represents either a 0
or a 1. Bits can be
grouped to form a
byte to represent one
character, number, or
symbol. Bytes can be
grouped to form a
field, and related
fields can be
grouped to form a
record. Related
records can be
collected to form a
file, and related files
can be organized into
a database.

Figure 6-1
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

Organizing Data in a Traditional File Environment

• Problems with the traditional file processing

• Files maintained separately by different departments
• Data redundancy and inconsistency
• Data redundancy: Presence of duplicate data in multiple files ,same data is
stored in more than one location. Have different meaning in different files.
• Data inconsistency: Same attribute has different values, same attribute may
have different names ex student ID and ID.
• Program-data dependence:
• When changes in program requires changes to data accessed by program
• Lack of flexibility
• Generate Routine reports can not respond to unanticipated information.
• Poor security
• Lack of control, widespread
• Who is accessing and making changes
• Lack of data sharing and availability
• Information cannot be related
• Impossible to share or access in a timely manner.
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

Organizing Data in a Traditional File Environment

Traditional File Processing

The use of a traditional approach to file processing encourages each functional area in a corporation to
develop specialized applications and files. Each application requires a unique data file that is likely to be a
subset of the master file. These subsets of the master file lead to data redundancy and inconsistency,
processing inflexibility, and wasted storage resources.

Figure 6-2
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management
Lecture5
The Database Approach to Data Management

• Database:
•Collection of data organized to serve many applications by
centralizing data and controlling redundant data
• Database management system:
• Is software that permits an organization to centralize data, manage
them efficiently and provides access to the stored data by application
programs.
•Interfaces between application programs and physical data files
•Separates logical and physical views of data
•Solves problems of traditional file environment
•Controls redundancy by minimizing isolated files in which same data is
repeated.
•Eliminated inconsistency
•Enables central management and security
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

The Database Approach to Data Management

Human Resources Database with Multiple Views

A single human resources database provides many different views of data, depending on the information
requirements of the user. Illustrated here are two possible views, one of interest to a benefits specialist
and one of interest to a member of the company’s payroll department.

Figure 6-3
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

The Database Approach to Data Management

• Relational DBMS
• Represent data as two-dimensional tables called relations or files
• Each table contains data on entity and attributes
• Example: Microsoft Access for desktops systems. Oracle database and
Microsoft SQL server for large computers. Oracle database lite for small
handheld devices.
• 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
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

The Database Approach to Data Management

Relational Database Tables

A relational database organizes data in the form of two-dimensional tables.

Illustrated here are tables for the entities SUPPLIER and PART showing how
they represent each entity and its attributes. Supplier_Number is a primary key
for the SUPPLIER table and a foreign key for the PART table.

Figure 6-4A
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

The Database Approach to Data Management

Relational Database Tables (cont.)

Figure 6-4B
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

The Database Approach to Data Management

• Relational database tables can be combined easily, provided any

two tables share a common data element.
• Example: names of supplier who could provide with part num137 and
150.Need info from two tables and share data element supplier num
• 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. select records from part table where part num is 137 and
150.
• JOIN: Combines relational tables to provide user with more
information than available in individual tables. want to join
shortened part table and supplier table in to a single new table.
• PROJECT: Creates subset of columns in table, creating tables
with only the information required.
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

The Database Approach to Data Management

The Three Basic Operations of a Relational DBMS

The select, project, and join operations enable data from two different tables to be combined and only
selected attributes to be displayed.

Figure 6-5
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

The Database Approach to Data Management

• Object-Oriented DBMS (OODBMS)

• Databases that can store and retrieve not only numbers but
also drawings ,images ,photographs ,voice and full motion
video.
• Stores data and procedures as objects
• Capable of managing graphics, multimedia, Java applets
• Relatively slow compared with relational DBMS for processing
large numbers of transactions
• Hybrid object-relational DBMS: Provide capabilities
of both OODBMS and relational DBMS
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

The Database Approach to Data Management

• Capabilities of Database Management Systems

• DBMS includes these for organizing, managing and accessing the data.
•Data definition capability: Specifies structure of database
content, used to create tables and define characteristics of fields in table.
•Data dictionary: Automated or manual file storing definitions of
data elements and their characteristics. Microsoft Access has a
rudimentary data dictionary capability that displays information about the
size, format, and other characteristics of each field in a database.
•Data manipulation language: tools for accessing and
manipulating information in database. Used to add, change,
delete, retrieve data from database
• Structured Query Language (SQL)
• Microsoft Access user tools for generation SQL
•Also: Many DBMS have report generation capabilities for
creating polished reports (Crystal Reports)
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

The Database Approach to Data Management

Sample Data Dictionary Report

Figure 6-6
The sample data dictionary
report for a human
resources database
provides helpful
information, such as the
size of the data element,
which programs and reports
use it, and which group in
the organization
is the owner responsible for
maintaining it.
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

The Database Approach to Data Management

Example of an SQL Query

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.

Figure 6-7
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

The Database Approach to Data Management

An Access Query

Illustrated here is how the query in Figure 6-7 would be constructed using query-building tools in the
Access Query Design View. It shows the tables, fields, and selection criteria used for the query.

Figure 6-8
 Learning objective
 Using databases to improve business
performance and decision making
 Management Information Systems
Chapter 6 Foundations of Business Intelligence:
Databases and Information Management
Lecture5

Using databases to improve

business performance
 For very large databases and systems, special
capabilities and tools are required for analyzing large
quantities of data and for accessing data from multiple
systems

 Data warehousing
 Data mining
 Tools for accessing internal databases through the
Web
What is a data warehouse?
 Data warehouse:
 A database that stores current and historical data from many core operational
transaction systems

 Consolidates and standardizes information from different operational databases for use
across enterprise, but data cannot be altered

 Data warehouse system will provide query, analysis, and reporting tools

 Many firms can use Intranet portals to make data warehouse info available.

 Data marts:
 Decentralized warehouses
 Subset of data warehouse with 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

 Example marketing and sales data mart.

 Constructed rapidly and less costly.

 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

Using Databases to Improve Business Performance and Decision Making

Components of a Data Warehouse

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
designed for management reporting and analysis. The information
directory provides users with information about the data available in
the warehouse.
Figure 6-13
 Learning objectives
 Managing data resources
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management
Lecture5

Managing Data Resources

• Managing data resources:

• Establishing an information policy
• Information policy: Specifies firm’s rules, procedures, roles for
sharing, standardizing data and accessing data.
• Which units share information.
• Where info can be distributed
• Who is responsible for changing and updating data.

• Data administration: Responsible for specific policies and procedures

through which data can be managed as an organizational resource.
• Responsibilities include:
• Developing information policy,
• Planning for data
• Monitoring data usage.
 Management Information Systems
Chapter 6 Foundations of Business Intelligence:
Databases and Information Management
Lecture5

Managing data resources:

 Data governance

 Polices and processes for managing availability, usability,

integrating and security of the data employed in an enterprise
with emphasis on promoting privacy, security and compliance
with government regulations.

 Database administration: Database design and

management group responsible for defining, organizing the
structure and content of the database, maintaining database.

 Establishing database
 Relations among elements
 Access rules and security procedures
 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management
Lecture5

Managing Data Resources

• Ensuring data quality

• More than 25% critical data in Fortune 1000 company
databases is inaccurate or incomplete

• Before new database in place, need to identify and

correct faulty data and establish better routines for
editing data once database in operation

• Most data quality problems stem from faulty input

 Management Information Systems
Chapter 6 Foundations of Business Intelligence: Databases
and Information Management

Managing Data Resources

• Data quality audit:
• Structured survey of the accuracy and level of
completeness of the data in an information system
• Surveying entire data files or samples
• Data cleansing:
• Detecting, and correcting data that are incorrect,
incomplete, improperly formatted, or redundant.
• Enforces consistency among different sets of data from
separate information systems
• Cleansing software integrate the data in consistent
company wide format.
 CASE ANALYSIS
 Interactive session