Download - MIS_Ch8_DataWarehouse+BP18
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MANAGEMENT
INFORMATION SYSTEMS
Chapter 8: Accessing Organizational Information Data Warehouse + BP18
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Learning Outcomes
Describe the roles and purposes of data warehouses and
data marts in an organization.
Explain the relationship between business intelligence (BI)
and a data warehouse.
Explain the problem associated with BI and describe the
solution to this business problem.
Describe the 3 common forms of data-mining analysis.
Compare tactical, operational, and strategic BI.
Explain the organization-wide benefits of BI.
Describe the 4 categories of BI business benefits.
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Data Warehouse
Data warehouse = logical collection of information
gathered from many different operational databases that
supports business analysis activities and decision-
making tasks
Primary purpose of data warehouse = to aggregate
information throughout an organization into a single
repository for decision-making purposes
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Data Warehouse Fundamentals
Extraction, Transformation, and Loading (ETL) = process
that extracts information from internal and external
databases, transforms the information using a common set
of enterprise definitions, and loads the information into a
data warehouse
Data mart = contains subset of data warehouse information
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Data Warehouse Fundamentals
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Multidimensional Analysis
Data Mining
Databases contain information in a series of two-
dimensional tables
In a data warehouse and data mart, information is
multidimensional; it contains layers of columns and rows
Dimension = particular attribute of information
Cube = representation of multidimensional information
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Multidimensional Analysis
Data Mining
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Multidimensional Analysis
Data Mining
Data mining = process of analyzing data to extract
information not offered by the raw data alone
To perform data mining users need data-mining tools
Data-mining tool = Uses a variety of techniques to find
patterns and relationships in large volumes of
information and infers rules that predict future behavior
and guide decision making
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Information Scrubbing or Cleansing
Organization must maintain high-quality data in data
warehouse
Information cleansing or scrubbing = process that weeds
out and fixes or discards inconsistent, incorrect, or
incomplete information
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Contact information in an operational system
Information Cleansing or Scrubbing
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Standardizing customer name from operational systems
Information Cleansing or Scrubbing
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Information Scrubbing or Cleansing
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Information Scrubbing or Cleansing
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Business Intelligence
Business intelligence = information that people use to
support their decision-making efforts
Business intelligence = applications and technologies
used to gather, provide access to, and analyze data and
information to support decision-making efforts
Business intelligence = sifting through large amounts of
data, extracting information, and turning that information
into actionable knowledge
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Enabling Business Intelligence
Competitive organizations accumulate business
intelligence to gain sustainable competitive advantage
Technology = most significant enabler of business
intelligence
People = manager who is in the field and close to the
customer rather than an analyst rich in data but poor
in experience
Culture = extent to which the BI attitude flourishes in
an organization depends in large part on the
organizations culture
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Data Rich, Information Poor
Problem
Businesses face a data explosion as digital images, email
inboxes, and broadband connections doubled by 2010
Amount of data generated is doubling every year
Some believe it will soon double monthly
Solution
Improving the quality of business decisions has a direct
impact on costs and revenue
BI systems and tools results in creating an agile intelligent
enterprise
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Business Intelligence
BI enables business users to receive data for analysis that is:
Reliable
Consistent
Understandable
Easily manipulated
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Business Intelligence
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Operational, Tactical, Strategic BI
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Operational, Tactical, Strategic BI
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Operational Value of BI
Richard Hackathorn demonstrates the value of operational BI
Shorten latencies so that time frame for opportunistic influences on
customers, suppliers, etc. is faster, more interactive, and better positioned
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Data Mining Tools
Data mining = process of analyzing data to extract
information
Data-mining tools = use a variety of techniques to find
patterns and relationships in large volumes of
information
Classification
Estimation
Affinity grouping
Clustering
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Data Mining Analysis
Cluster analysis
Association detection
Statistical analysis
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Cluster Analysis
Cluster analysis = technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible
CRM systems depend on cluster analysis to segment customer information and identify behavioral traits
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Association Detection
Association detection = reveals the degree to which variables are related and the nature and frequency of these relationships in the information
Market basket analysis
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Statistical Analysis
Statistical analysis = performs such functions as
information correlations, distributions, calculations,
and variance analysis
Forecast = predictions made on the basis of time-series
information
Time-series information = time-stamped information
collected at a particular frequency
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Business Benefits of BI
Single point of access to information for all users
BI across organizational departments
Up-to-the-minute information for everyone
Four main categories of benefits:
Quantifiable benefits
Indirectly quantifiable benefits
Unpredictable benefits
Intangible benefits