Data Warehouses, Business Intelligence, Management Information

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Transcript Data Warehouses, Business Intelligence, Management Information

Mgt 20600:
IT Management & Applications
Data Warehouses,
Business Intelligence,
Management Information Systems
April 11, 2006
– For today
 Fundamentals text, Chapter Six, Information and Decision Support
– Homework Four
 Databases
 Due this Thursday, April 14th, by 5pm
– Homework Five
 Decision Support Systems
 Due Friday, April 21st by 5pm
Exam 2
– Tuesday, April 25th
– 75 points
– Similar types of questions as on Exam 1
– Covers Telecom & Networks, Databases, Decision Support Systems
Next week: DSS
Data Warehouses, Data Marts,
and Data Mining
 Data
warehouse: collects business
information from many sources in
the enterprise
 Data mart: a subset of a data
 Data mining: an informationanalysis tool for discovering patterns
and relationships in a data
warehouse or a data mart
Data Warehouses, Data Marts,
and Data Mining
Elements of a Data Warehouse
Data Warehouse Example
Home Depot in 2002 launched a 48
terabyte IBM DB2 data warehouse
 Contains three years of sales history
 The warehouse is intended to take the
guesswork out of labor scheduling as well
as inventory planning
 Lowe's has had a Teradata warehouse with
that functionality since 2000
Data Warehouse Example
Premier Inc. sells access to clinical data it gathers from 400
hospitals to pharmaceutical manufacturers
Last year, the company's IBM Red Brick data warehouse
had grown to 3TB
One table included 3 billion entries
"When you go through 3 billion rows of data, you get long
runtimes," says Chris Stewart, director of data warehouse
The problem wasn't just the size of the database, however,
but how clients used the data.
"Our users want to access all of the data from top to
bottom," says Stewart
The complex, multipass queries created by Premier's 4,000
users each week were slowing performance. Some wouldn't
run at all
Stewart brought in an all-inclusive data warehouse
appliance from Netezza Corp. in Framingham, Mass
Some calculations that took one or two days now finish in
six to eight minutes on the appliance's 108 processors
Data Mart Example
ACNielsen's Paris offices
Customers are interested in very specific subsets
of data and specific aggregations
ACNielson has produced thousands of data marts
as part of a project called the Data Mart Factory
4TB master data warehouse that includes
regularly updated data from retailers
Runs it through a system that cranks out 3,000
client-specific data marts that ACNielsen presents
to 1,000 customers in the retailing and consumer
product manufacturing industries
Each data mart is refreshed weekly
Data Warehouses, Data Marts,
and Data Mining
Common Data-Mining Applications
Data Mining Example
Keyes' eyes were opened to the strategic
importance of IT during a trip he made in
1990 to visit 7-Eleven's licensees in Japan
 Stores customized their offerings to local
demand and by the assortment of fresh
foods they offered, from sushi to
 The Japanese did it with scanning data,
rudimentary data warehouses and a
nascent in-store ordering system
 When he became CEO, Keyes knew that
the U.S. stores had to do the same
Data Mining Example
Online retailer Inc. has begun connecting
users to a real-time data warehouse it completed last
The project's goal is to help employees gain insight into the
effectiveness of the company's online and e-mail
advertising campaigns.
Overstock is using transactional data management tools
from GoldenGate Software Inc. to pull information directly
from its business systems into the data warehouse
Now the data warehouse receives Web site clickstream data
in real time, financial and product-sales data every 15
minutes and other information hourly.
"When we launch campaigns now, we can look within five
minutes and see if they are producing lift or revenue that
would not normally have happened," Garcella said.
"You can't wait until the next day or three hours later to get
that data."
Online Analytical Processing
 Software
that allows users to explore
data from a number of different
Comparison of OLAP and Data Mining
OLAP in Depth
One core software tool is online analytical processing
Extracts, structures and stores warehoused data to enable
quick, multidimensional analysis
A dimension can be any variable your company tracks:
customer locations, sales volumes, product development
costs and so on
An OLAP data set is made up of dimensions and measures,
which can then be used for queries to elicit detailed data
breakdowns and information on associations among
For example, a grill manufacturer could use an OLAP query
to correlate grill sales with weather conditions across
various locations, to determine how heat waves affect its
business in different regions.
Business Intelligence
 Business
intelligence (BI):
gathering the right information in a
timely manner and usable form and
analyzing it to have a positive impact
on business
 Knowledge management:
capturing a company’s collective
expertise and distributing it wherever
it can help produce the biggest
Business Intelligence Example
Continental Airlines Inc. from worst to first.
BI that Continental gleaned from its customers helped move it
from last place in travelers' opinions nine years ago to the winner
of this year's award for best airline from London-based OAG
Worldwide Ltd.
The first move Continental made to improve frequent-flier
relations back in the mid-'90s was to consolidate 55 databases
worldwide into a single Teradata data warehouse
"We wanted one voice of the customer “
The goal was to identify high-yield customers, create loyalty
programs and get more immediate data on the cost of each flight
Flight attendants now receive information from the data
warehouse about high-value customers on a flight so they can
personally express the airline's interest in and knowledge about
the customers' recent flying experiences with Continental
The company's financial analysts can get information about the
profitability of each flight instantly after "wheels up," Cook says.
In the future, Continental wants the data warehouse to use realtime clickstream data to automatically generate targeted offers to
Continental's Web site visitors.
Business Intelligence Example
Data warehouse cuts costs for ... cost-conscious Southwest
Airlines Co
The Dallas-based carrier centralized its BI group two years ago
around a Teradata data warehouse in order to keep a lid on IT
costs through better systems management and more efficient
staffing policies
"We're the low-cost airline, so we should have a low-cost
Besides helping to hold down IT spending, the 2TB data
warehouse helps business analysts cut corporate costs
Annual savings from ideas generated through use of the data
warehouse at between $1.2 million and $1.4 million
As a result of that success, the data warehouse is destined to
grow. It will increase to 3TB by next summer and possibly double
that volume by 2007.
IT team is developing better ways of handling ad hoc query
requests from end users and creating dashboard-style tools for
the airline's executives.
Management Information
Systems in Perspective
management information system
(MIS) provides managers with
information that supports effective
decision making and provides
feedback on daily operations
 The use of MISs spans all levels of
Management Information
Systems in Perspective
Sources of Managerial Information
Inputs to a Management
Information System
 Internal
data sources
– TPSs and ERP systems and related
databases; data warehouses and data
marts; specific functional areas
throughout the firm
 External
data sources
– Customers, suppliers, competitors, and
stockholders, whose data is not already
captured by the TPS; the Internet;
Outputs of a Management
Information System
Scheduled report: produced periodically, or on
a schedule
Key-indicator report: summary of the previous
day’s critical activities
Demand report: developed to give certain
information at someone’s request
Exception report: automatically produced when
a situation is unusual or requires management
Drill-down report: provides increasingly
detailed data about a situation
Functional Aspects of the MIS
 Most
organizations are structured
along functional lines or areas
 The MIS can be divided along
functional lines to produce reports
tailored to individual functions
Functional Aspects of the MIS
The MIS is an
integrated collection of
functional information
systems, each supporting
particular functional
Financial Management
Information Systems
 Financial
MIS: provides financial
information to all financial managers
within an organization
– Profit/loss and cost systems
– Auditing
– Uses and management of funds
Financial Management
Information Systems
Overview of a Financial MIS
Manufacturing Management
Information Systems
The manufacturing MIS subsystems and
outputs monitor and control the flow of
materials, products, and services through
the organization
Design and engineering
Production scheduling
Inventory control
MRP (material requirements planning)
Process control
Quality control
Manufacturing Management
Information Systems
Overview of a Manufacturing MIS
Marketing Management
Information Systems
 Marketing
MIS: supports
managerial activities in product
development, distribution, pricing
decisions, promotional effectiveness,
and sales forecasting
– Marketing research
– Product development
– Promotion and advertising
– Product pricing
Marketing Management
Information Systems
Overview of a Marketing MIS
Human Resource Management
Information Systems
Human resource MIS: concerned with
activities related to employees and
potential employees of an organization
Needs and planning assessments
Training and skills development
Scheduling and assignment
Employee benefits
Human Resource Management
Information Systems
Overview of a Human Resource MIS
Other Management Information
 Accounting
MIS: provides
aggregate information on accounts
payable, accounts receivable, payroll,
and many other applications
 Geographic information system
(GIS): capable of assembling,
storing, manipulating, and displaying
geographic information