Chapter-6

Foundations of Business Intelligence: Databases and Information Management

Group- Phantoms
Ashraf Md. Abdullah ID No- 242

Business Intelligence
An umbrella term that refers to a variety of software applications used to analyze an organizations raw data. Characteristics An Intuitive Web-based Interface Ad hoc Reporting Flexible Formatting Options Dynamic Information Distribution Financial Reporting and Analysis

Definition

Business Intelligence (BI) refers to skills, technologies, applications and practices used to help a business acquire a better understanding of its commercial context.

BI Turns
Data Into Information Information Into Knowledge Knowledge Into Decisions Decisions Into Profits

Business Intelligence

Business Intelligence

Bank of Baroda
Problems1. Unable to serve its customer 2. 2. Unable to find bigger picture of the customer base 3. 3. Dont have pool of information to develop data model for predictive analysis

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

The effects were

1. Numerous system and application were unable to deliver consolidated information about the customer and comprehensive customer profile 2. It hampered to devise appropriate marketing plans for different customer segments 3. Banks profitability and efficiency curtailed

Solution
BoB employed a enterprise-wide, data warehouse solution in-house by HP HP developed a new Data Warehouse by integrating all the different data from all sources into a single comprehensive database HP helped by storing the data, organize the data and providing tools for making the data accessible to employees for querying and reporting.

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

A group of related files makes up a database.

a group of records of the same type is called a file. 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.

Data Hierarchy

A group of related fields, such as the students name, the course taken,The date, and the grade, comprises a record.

Problems with the Traditional File Environment

Data redundancy and inconsistency
Data redundancy: Presence of duplicate data in multiple files Data inconsistency: Same attribute has different values

Program-data dependence:
When changes in program requires changes to data accessed by program

Lack of flexibility Poor security Lack of data sharing and availability

 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

 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

Next Presenter
Md. Mohibbul Islam ID No.- 234

Database management system (DBMS)

A software, whichAcollectiondata data organized to serve of Centralize many applications by centralizing data and Manage data controlling redundant 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

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

HUMAN RESOURCES DATABASE WITH MULTIPLE VIEWS

How DBMS eliminated Traditional File Environment Problems

Minimizing isolated files Uncouples programs and data Increase working efficiency

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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 to identify records from original table

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RELATIONAL DATABASE TABLES

FIGURE 6-4

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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 JOIN: Combines relational tables to provide user with more information than available in individual tables PROJECT: Creates subset of columns in table, creating tables with only the information specified

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THE THREE BASIC OPERATIONS OF A RELATIONAL DBMS

FIGURE 6-5

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 Object-Oriented DBMS (OODBMS)

Stores data and procedures as objects Objects can be 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

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Next Presenter
Md. Mominul Islam ID No.- 226

Capabilities of Database Management Systems

Data definition capability: Specifies structure of database content, used to create tables and define
characteristics 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

Data Dictionary

Data Manipulation Language

DML- There are two types of DML. Procedural: the user specifies what data is needed and how to get it. Nonprocedural: the user only specifies what data is needed. The features of nonprocedural DML.

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 data elements and awkward many-to-many relationships

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

An Normalized Relation for Order

Normalized Tables Created from Order

Next Presenter
Fahim Lodhi ID No.- 220

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

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

Disadvantage
Complexity Economics Security Difficult to maintain integrity Inexperience Lack of standards Database design more complex DDS software is required.

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

Components of a Data Warehouse

Benefits of a Data Warehouse

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 the business users

Restructure the data so that it delivers excellent query performance