Transcript CHAPTER 6 - McGraw Hill Higher Education

Chapter 6
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
CHAPTER 6: LEARNING OUTCOMES
Chapter 6
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Explain the four primary traits that determine the value of
information.
Describe a database, a database management system, and the
relational database model.
Identify the business advantages of a relational database.
Explain the business benefits of a data-driven website.
Define a data warehouse and provide a few reasons it can make
a manager more effective.
Explain ETL and the role of a data mart in business.
Define data mining and explain the three common forms for
mining structured and unstructured data.
Identify the advantages of using business intelligence to support
managerial decision making.
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THE BUSINESS BENEFITS OF
HIGH-QUALITY INFORMATION
Chapter 6
• Successfully collecting, compiling, sorting, and analyzing
information can provide tremendous insight into how an
organization is performing
• Information Type: Transactional and Analytical
• Transactional Information—Encompasses all of the information
contained within a single business process or unit of work, and its
primary purpose is to support the performing of daily operational
tasks
• Analytical Information—Encompasses all organizational information,
and its primary purpose is to support the performing of managerial
analysis tasks
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THE BUSINESS BENEFITS OF
HIGH-QUALITY INFORMATION
Chapter 6
• Information Timeliness
 Real-time Information—Immediate, up-to-date information
 Real-time System—Provides real-time information in
response to requests.
• Information Quality
 Common characteristics of high-quality information:
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Accurate, Complete, Consistent, Unique, and Timely
• Information Governance
 Data governance
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STORING INFORMATION IN A RELATIONAL
DATABASE MANAGEMENT SYSTEM
Chapter 6
• Database—Maintains information about various types of objects,
events, people, and places
• Database Management Systems (DBMS)—Allows users to create,
read, update, and delete data in a relational database
• Data Element—The smallest or basic unit of information
• Data Model—Logical data structures that detail the relationships
among data elements using graphics or pictures
• Metadata—Provides details about data
• Data Dictionary—Compiles all of the metadata about the data
elements in the data model
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STORING INFORMATION IN A RELATIONAL
DATABASE MANAGEMENT SYSTEM
Chapter 6
• Storing Data Elements in Entities and Attributes
 Entity—A person, place, thing, transaction, or event about which
information is stored
 Attribute—The data elements associated with an entity
 Record—A collection of related data elements
• Creating Relationships Through Keys
 Primary Key—A field (or group of fields) that uniquely identifies
a given entity in a table
 Foreign Key—A primary key of one table that appears an
attribute in another table and acts to provide a logical
relationship among the two tables
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USING A RELATIONAL DATABASE FOR
BUSINESS ADVANTAGES
Chapter 6
• Increased Flexibility
 A database needs to handle changes quickly and easily, just as any
business needs to be able to do
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Physical View—Deals with the physical storage of information on a
storage device
Logical View—Focuses on how individual users logically access
information to meet their own particular business needs
• Increased Scalability and Performance
 Scalability—Refers to how well a system can adapt to increased
demands
 Performance—Measures how quickly a system performs a certain
process or transaction
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USING A RELATIONAL DATABASE FOR
BUSINESS ADVANTAGES
Chapter 6
• Reduced Data Redundancy
 Data Redundancy—The duplication of data or storing the
same information in multiple places
 Inconsistency is one of the primary problems with redundant
information
• Increased Information Integrity (Quality)
 Information Integrity—Measures the quality of information
 Integrity Constraint—Rules that help ensure the quality of
information
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Relational integrity constraint
Business-critical integrity constraint
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USING A RELATIONAL DATABASE FOR
BUSINESS ADVANTAGES
Chapter 6
• Increased Information Security
 Information is an organizational asset and must be protected
• Databases offer several security features:
 Password—Provides authentication of the user
 Access Level—Determines who has access to the different
types of information
 Access Control—Determines types of user access, such as
read-only access
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DRIVING WEBSITES WITH DATA
Chapter 6
• Data-Driven Websites—An interactive website
kept constantly updated and relevant to the needs
of its customers using a database
• Data-driven website advantages:
 Easy to manage content
 Easy to store large amounts of data
 Easy to eliminate human errors
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THE BUSINESS BENEFITS OF
DATA WAREHOUSING
Chapter 6
• Data warehouses extend the transformation of data into
information
• The data warehouse provided the ability to support decision
making without disrupting the day-to-day operations
• Data Warehouse—A logical collection of information – gathered
from many different operational databases – that supports
business analysis activities and decision-making tasks
• The primary purpose of a data warehouse is to aggregate
information throughout an organization into a single repository for
decision-making purposes
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PERFORMING BUSINESS ANALYSIS
WITH DATA MARTS
Chapter 6
• Extraction, Transformation, and Loading (ETL)—A 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
• Multidimensional Analysis
 Dimension—A particular attribute of information
 Cube—Common term for the representation of multidimensional
information
• Information Cleansing or Scrubbing—A process that weeds out
and fixes or discards inconsistent, incorrect, or incomplete
information
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UNCOVERING TRENDS AND
PATTERNS WITH DATA MINING
Chapter 6
• Data Mining—The process of analyzing data to extract information not
offered by the raw data alone
• Data-mining Tools—Use a variety of techniques to find patterns and
relationships in large volumes of information
• Structured Data—Data already in a database or a spreadsheet
• Unstructured Data—Data does not exist in a fixed location and can
include text documents, PDFs, voice messages, emails
• Text Mining—Analyzes unstructured data to find trends and patterns in
words and sentences
• Web Mining—Analyzes unstructured data associated with websites to
identify consumer behavior and website navigation
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UNCOVERING TRENDS AND
PATTERNS WITH DATA MINING
Chapter 6
• Cluster Analysis—A technique used to divide an information
set into mutually exclusive groups
• Association Detection—Reveals the relationship between
variables along with the nature and frequency of the
relationships
 Market Basket Analysis
• Statistical Analysis—Performs such functions as information
correlations, distributions, calculations, and variance analysis
 Forecast and Time-Series Information
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SUPPORTING DECISIONS WITH
BUSINESS INTELLIGENCE
Chapter 6
• The Problem: Data Rich, Information Poor
 Businesses face a data explosion as digital images, email in-boxes,
and broadband connections doubles every year
• The Solution: Business Intelligence
 BI enables business users to receive data for analysis that is:
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Reliable
Consistent
Understandable
Easily Manipulated
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