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    Chapter-6

    Foundations of Business Intelligence:

    Databases and Information Management

    Group- Phantoms

    Ashraf Md. AbdullahID No- 242

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    Business Intelligence

    An umbrella term that refers to a variety ofsoftware applications used to analyze anorganizations raw data.

    Characteristics-

    An Intuitive Web-based Interface

    Ad hoc Reporting

    Flexible Formatting Options

    Dynamic Information Distribution

    Financial Reporting and Analysis

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    Definition

    Business Intelligence (BI)

    refers to skills, technologies,applications and practices

    used to help a business acquire a better

    understanding of its commercial context.

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    BI Turns

    Data Into Information

    Information Into Knowledge

    Knowledge Into Decisions

    Decisions Into Profits

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    Business Intelligence

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    Business Intelligence

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    Bank of Baroda

    Problems-

    1. Unable to serve its customer

    2. 2. Unable to find bigger picture of thecustomer base

    3. 3. Dont have pool of information to develop

    data model for predictive analysis

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    The Reasons were

    1. The Banks data was Redundant Inconsistent

    Fragmented among other branches

    2. Data was stored in different databases; and

    they could not be retrieved and analyzed

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    The effects were

    1. Numerous system and application wereunable to deliver consolidated informationabout the customer and comprehensive

    customer profile2. It hampered to devise appropriate marketing

    plans for different customer segments

    3. Banks profitability and efficiency curtailed

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    Solution

    BoB employed a enterprise-wide, datawarehouse solution in-house by HP

    HP developed a new Data Warehouse by

    integrating all the different data from allsources into a single comprehensive database

    HP helped by storing the data, organize the

    data and providing tools for making the dataaccessible to employees for querying and

    reporting.

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    Organizing Data in Traditional File

    Environment

    An effective IS provides users with ART data

    Accurate means the information is free from

    error.

    Timely means the data is available to decision

    making when it is needed.

    Relevant means useful and appropriate info

    for the types of work & decision that require it

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    DataHierarchy

    A grouping of characters

    into a word, a group of

    words, or a complete

    number (such as a

    persons name or age) is

    called a field.

    a group of records of the

    same type is called a file.

    A group of related files

    makes up a database.

    A group of related fields,

    such as the students

    name, the coursetaken,The date, and the

    grade, comprises a

    record.

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    Problems with the Traditional

    File Environment Data redundancy and inconsistency

    Data redundancy: Presence of duplicate data inmultiple files

    Data inconsistency: Same attribute has differentvalues

    Program-data dependence:

    When changes in program requires changes to dataaccessed by program

    Lack of flexibility

    Poor security

    Lack of data sharing and availability

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    Data redundancy and inconsistency

    Different divisions collect the same data

    Customers

    Sales

    Account receivable

    Service

    Data inconsistency

    Different coding to represent the same value

    XL, extra large, extra-large

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    Program-Data dependency

    Coupling of stored data and programs which

    update and maintain those data

    Traditional program need to specify location

    and nature of data

    Lack of Flexibility

    Traditional systems deliver routine scheduled

    reports

    Can NOT deliver ad hoc reports

    Can not respond to unanticipated information

    requirement in a timely manner

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    Next Presenter

    Md. Mohibbul Islam

    ID No.- 234

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    A software, which-

    Centralize data

    Manage data

    Provide access to the stored data

    Interfaces between applications and physical data

    files Separates logical and physical views of data

    Solves problems of traditional file environment

    A collection of data organized to serve

    many applications by centralizing data andcontrolling redundant data

    Database management system

    (DBMS)

    Database

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    Database management system

    (DBMS)

    A software, which-

    Centralize data

    Manage data

    Provide access to the stored data

    Interfaces between applications and physical data

    files Separates logical and physical views of data

    Solves problems of traditional file environment

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    HUMAN RESOURCES DATABASE WITH

    MULTIPLE VIEWS

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    Prentice Hall 2011 20

    Minimizing isolated files

    Uncouples programs and data

    Increase working efficiency

    How DBMS eliminated Traditional File

    Environment Problems

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    Relational DBMS

    Represent data as two-dimensional tables called relations or

    files

    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 toidentify records from original table

    Prentice Hall 201121

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    RELATIONAL DATABASE TABLES

    FIGURE 6-4

    Prentice Hall 201122

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    Operations of a Relational DBMS

    Three basic operations used to develop usefulsets 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 individualtables

    PROJECT: Creates subset of columns in table,creating tables with only the information specified

    Prentice Hall 201123

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    THE THREE BASIC OPERATIONS OF A RELATIONAL DBMS

    FIGURE 6-5

    Prentice Hall 201124

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    Object-Oriented DBMS (OODBMS)

    Stores data and procedures as objects

    Objects can be graphics, multimedia, Javaapplets

    Relatively slow compared with relational DBMSfor processing large numbers of transactions

    Hybrid object-relational DBMS: Provide capabilitiesof both OODBMS and relational DBMS

    Prentice Hall 201125

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    Next Presenter

    Md. Mominul Islam

    ID No.- 226

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    Capabilities of Database Management

    Systems

    Data definition capability: Specifies structure of

    database content, used to create tables and definecharacteristics 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 generation SQL

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    Data Dictionary

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    Data Manipulation Language

    DML- There are two types of DML.

    Procedural: the user specifies whatdata is

    needed and howto get it.

    Nonprocedural: the user only specifies

    what data is needed. The features of

    nonprocedural DML.

    A query language is a portion of a

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    A query language is a portion of a

    DML Involving information retrieval

    only. Designing Databases Conceptual (logical) design: abstract model from business perspective

    Physical design: How database is arranged on direct-access storage

    devices

    Design process identifies

    Relationships among data elements, redundant database elements

    Most efficient way to group data elements to meet business

    requirements, needs of application programs

    Normalization

    Streamlining complex groupings of data to minimize redundant dataelements and awkward many-to-many relationships

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    Designing databases

    Conceptual or Logical design

    Abstract model from business perspective

    Detail description of the business information need of

    the actual end users How the data elements to be grouped

    Physical design

    How the database is actually arranged on direct access

    storage devices

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    An Normalized Relation for Order

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    Normalized Tables Created from

    Order

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    Next Presenter

    Fahim Lodhi

    ID No.- 220

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    Distributing Database

    Distributed database: Data is stored in more

    than one physical location

    Central database is Partitioned for each remote

    processor

    Changed in local files can be justified on a batch

    basis

    Central database is Replicated to all remote

    Require updating central database on off hours

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    Advantage

    Increase reliability and availability

    Easier expansion

    Reflects organizational structure

    Local autonomy or site autonomy

    Protection of valuable data Improved performance

    Economics

    Reliable transactions

    Continuous operation Distributed Query processing

    Distributed Transaction management

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    Disadvantage

    Complexity

    Economics

    Security

    Difficult to maintain integrity

    Inexperience

    Lack of standards

    Database design more complex

    DDS software is required.

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    Data Warehouses

    Data warehouse:

    Stores current and historical data from many core operational

    transaction systems

    Consolidates and standardizes information for use across enterprise,

    but data cannot be altered

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

    Data marts:

    Subset of data warehouse with summarized or highly focused

    portion of firms data for use by specific population of users

    Typically focuses on single subject or line of business

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    Components of a Data

    Warehouse

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    Maintain data history

    Integrate data from multiple source systems

    Improve data quality

    Present the organization's information consistently

    Restructure the data so that it makes sense to thebusiness users

    Restructure the data so that it delivers excellentquery performance

    Benefits of a Data Warehouse