Chapter 3: Databases and Data Warehouses Building Business Intelligence Management Information Systems for the Information Age

Chapter 3:Databases and

Data Warehouses

Building Business Intelligence

Management Information Systemsfor the Information Age

Chapter 3: Databases and Data Warehouses Slide 1-2

Business Intelligence 1/2

Fundamental ConceptsHaving the right tools to capture, use, and manage information as a key resourceHaving the right tools to create knowledge and gain Business Intelligence from such information

What Is Business Intelligence? Knowledge – about your customers, competitors, partners, operations, and external PESTO


Business Intelligence 2/2

1. Where does BI come from?2. How is BI developed?3. What IT is necessary for BI?

33IT for BIIT for BI

22Dev.Dev.

11OriginOrigin

BIBI

Glen J. Coulthard

By referring to the origin of BI, I am thinking of the "HOW". How is BI obtained. Where does it come from. Business Intelligence is obtained by manipulating an organization's knowledge towards a specific objective. This knowledge comes from information, which comes from data. Therefore, remember the following "business molecular sequece":BI <-- Knowledge <-- Information <-- Data

Glen Coulthard

This information infrastructure does not occur on its own. You cannot buy an information infrastructure of the shelf. You need to acquire, use and maintain the IT to develop and build this information infrastructure. This includes database design, database management systems, data warehouses and data mining tools.

Glen Coulthard

The development of BI is more acurately stated as the development of an Information Infrastructure towards business intelligence. This includes the capturing of data, structuring and organizing it to obtain meaningful and useful information, and manipulating the information for knowledge gain, hence business intelligence.


Where Does BI Come From?

BusinessBusinessIntelligenceIntelligence

KnowledgeKnowledge

InformationInformation

DataData

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How Is BI Developed?

To develop business intelligence (BI):

2. You have to structure and 2. You have to structure and organize the data gathered.organize the data gathered.

3. You can then aggregate and filter 3. You can then aggregate and filter related data into information.related data into information.

4. Finally you can manipulate the 4. Finally you can manipulate the information into knowledge.information into knowledge.

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1. You need to gather data first.1. You need to gather data first.

Manipulated Information = Manipulated Information = KnowledgeKnowledge

Aggregated Data = Aggregated Data = InformationInformation

Structure and Structure and Organize DataOrganize Data

Gather DataGather Data


IT #1: Gather Data

Database Management Systems


Information Systems

Information Systems

Online Analytical

Online Analytical

Processing

Processing

Online Transaction Processing (OLTP) is the gathering of input data, verifying for data quality and integrity, and storing the data in the appropriate location in database(s).

OLTP systems also communicate with the consumer/client and provide them with receipts and reports of completed transactions.

Manipulated Information = KnowledgeManipulated Information = Knowledge

Aggregated Data = InformationAggregated Data = Information

Structure and Organize DataStructure and Organize Data


Online Transaction Processing


DataData


KnowledgeKnowledge

Business IntelligenceBusiness Intelligence


OLTP


IT #2: Structure and Organize Data



Information Systems

Information Systems

Online Analytical

Online Analytical

Processing

Processing

Databases and Database Management Systems (DBMS, such as Microsoft Access) are the technology tools that directly support OLTP. Referred to as operational databases.

Databases manage the structure and storage of data used to gain BI.







DataData


KnowledgeKnowledge



Step #3: Manipulate Data



Information Systems

Information Systems

Online Analytical

Online Analytical

Processing

Processing

Information Systems are necessary to aggregate, manipulate, and further process the data into information that can be used for different objectives, such as creating reports, planning and forecasting, and making decisions.

This manipulation of information into an aggregate form creates knowledge.







DataData


KnowledgeKnowledge



Step #4: Aggregate Information



Information Systems

Information Systems

Online Analytical

Online Analytical

Processing

Processing

Online Analytical Processing (OLAP) is the manipulation of information to support decision making.

Data warehouses (and data marts) and data mining tools support OLAP.







DataData


KnowledgeKnowledge



Building Business Intelligence 1/2


Building Business Intelligence 2/2

IT for business intelligence (BI):

Relational Database ModelRelational Database Model

Database Management SystemsDatabase Management Systems

Data Warehouses and Data MiningData Warehouses and Data Mining

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Manipulated Information = Manipulated Information = KnowledgeKnowledge

Aggregated Data = Aggregated Data = InformationInformation

Structure and Structure and Organize DataOrganize Data



Managing the Information Resource 1/2

Chief information officer (CIO) - responsible for overseeing (and protecting) an organization’s information resource.

Data administration - plans for, monitors, and oversees the development of the information resource.

Database administration - responsible for the technical and operational aspects of managing the information contained in organizational databases.


Managing the Information Resource 2/2

How will changes in technology affect organizing and managing information?

Who owns the information and is responsible for its quality?

How does an organization safeguard against the unethical use of information within the organization?


Closing Thoughts

Why is it so much easier for organizations to provide good online transaction processing (OLTP) support?

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Chapter 3: Databases and Data Warehouses Building Business Intelligence Management Information Systems for the Information Age