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
Chapter 3: Databases and Data Warehouses Slide 1-3
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
Chapter 3: Databases and Data Warehouses Slide 1-4
Where Does BI Come From?
BusinessBusinessIntelligenceIntelligence
KnowledgeKnowledge
InformationInformation
DataData
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Chapter 3: Databases and Data Warehouses Slide 1-5
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
Chapter 3: Databases and Data Warehouses Slide 1-6
IT #1: Gather Data
Database Management Systems
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
Gather DataGather Data
Online Transaction Processing
Online Transaction Processing
DataData
InformationInformation
KnowledgeKnowledge
Business IntelligenceBusiness Intelligence
Chapter 3: Databases and Data Warehouses Slide 1-7
OLTP
Chapter 3: Databases and Data Warehouses Slide 1-8
IT #2: Structure and Organize Data
Database Management Systems
Database Management Systems
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.
Manipulated Information = KnowledgeManipulated Information = Knowledge
Aggregated Data = InformationAggregated Data = Information
Structure and Organize DataStructure and Organize Data
Gather DataGather Data
Online Transaction Processing
Online Transaction Processing
DataData
InformationInformation
KnowledgeKnowledge
Business IntelligenceBusiness Intelligence
Chapter 3: Databases and Data Warehouses Slide 1-9
Step #3: Manipulate Data
Database Management Systems
Database Management Systems
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.
Manipulated Information = KnowledgeManipulated Information = Knowledge
Aggregated Data = InformationAggregated Data = Information
Structure and Organize DataStructure and Organize Data
Gather DataGather Data
Online Transaction Processing
Online Transaction Processing
DataData
InformationInformation
KnowledgeKnowledge
Business IntelligenceBusiness Intelligence
Chapter 3: Databases and Data Warehouses Slide 1-10
Step #4: Aggregate Information
Database Management Systems
Database Management Systems
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.
Manipulated Information = KnowledgeManipulated Information = Knowledge
Aggregated Data = InformationAggregated Data = Information
Structure and Organize DataStructure and Organize Data
Gather DataGather Data
Online Transaction Processing
Online Transaction Processing
DataData
InformationInformation
KnowledgeKnowledge
Business IntelligenceBusiness Intelligence
Chapter 3: Databases and Data Warehouses Slide 1-11
Building Business Intelligence 1/2
Chapter 3: Databases and Data Warehouses Slide 1-12
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
Gather DataGather Data
Chapter 3: Databases and Data Warehouses Slide 1-13
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.
Chapter 3: Databases and Data Warehouses Slide 1-14
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?
Chapter 3: Databases and Data Warehouses Slide 1-15
Closing Thoughts
Why is it so much easier for organizations to provide good online transaction processing (OLTP) support?