Transcript Week04-BUAD283-Chp03

Management Information Systems
for the Information Age
Chapter 3:
Databases and
Data Warehouses
Building Business Intelligence
Business Intelligence 1/2
Fundamental Concepts
Having the right tools to capture, use, and
manage information as a key resource
Having the right tools to create knowledge and
gain Business Intelligence from such information
What Is Business Intelligence?
Knowledge – about your customers, competitors,
partners, operations, and external PESTO
Chapter 3: Databases and Data Warehouses
Slide 1-2
Business Intelligence 2/2
1. Where does BI come from?
2. How is BI developed?
3. What IT is necessary for BI?
1
Origin
BI
3
IT for BI
Chapter 3: Databases and Data Warehouses
2
Dev.
Slide 1-3
Where Does BI Come From?
Business
Intelligence
IT TOOLS
Information
MANAGEMENT
Knowledge
Data
Chapter 3: Databases and Data Warehouses
Slide 1-4
How Is BI Developed?
To develop business intelligence (BI):
Building Towards BI
Manipulated Information =
Knowledge
Aggregated Data =
Information
Structure and
Organize Data
Gather Data
4. Finally you can manipulate the
information into knowledge.
3. You can then aggregate and filter
related data into information.
2. You have to structure and
organize the data gathered.
1. You need to gather data first.
Chapter 3: Databases and Data Warehouses
Slide 1-5
IT #1: Gather Data
Manipulated Information = Knowledge
Aggregated Data = Information
Business Intelligence
Knowledge
Structure and Organize Data
Information
Data
Gather Data
Online Transaction Processing (OLTP) is the gathering of input data, verifying for data
quality and integrity, and storing the data in the appropriate location in database(s).
OLTP systems also communicate with the consumer/client and provide them with
receipts and reports of completed transactions.
Chapter 3: Databases and Data Warehouses
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OLTP
Chapter 3: Databases and Data Warehouses
Slide 1-7
IT #2: Structure and Organize Data
Manipulated Information = Knowledge
Aggregated Data = Information
Business Intelligence
Knowledge
Structure and Organize Data
Information
Data
Gather Data
Databases and Database Management Systems (DBMS, such as Microsoft Access) are
the technology tools that directly support OLTP. Referred to as operational databases.
Databases manage the structure and storage of data used to gain BI.
Chapter 3: Databases and Data Warehouses
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Step #3: Manipulate Data
Manipulated Information = Knowledge
Aggregated Data = Information
Business Intelligence
Knowledge
Structure and Organize Data
Information
Data
Gather Data
Information Systems are necessary to aggregate, manipulate, and further process the
data into information that can be used for different objectives, such as creating
reports, planning and forecasting, and making decisions.
This manipulation of information into an aggregate form creates knowledge.
Chapter 3: Databases and Data Warehouses
Slide 1-9
Step #4: Aggregate Information
Manipulated Information = Knowledge
Aggregated Data = Information
Business Intelligence
Knowledge
Structure and Organize Data
Information
Data
Gather Data
Online Analytical Processing (OLAP) is the manipulation of information to support
decision making.
Data warehouses (and data marts) and data mining tools support OLAP.
Chapter 3: Databases and Data Warehouses
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Building Business Intelligence 1/2
Chapter 3: Databases and Data Warehouses
Slide 1-11
Building Business Intelligence 2/2
IT for business intelligence (BI):
Building Towards BI
Manipulated Information =
Knowledge
Aggregated Data =
Information
Structure and
Organize Data
Data Warehouses and Data Mining
Database Management Systems
Relational Database Model
Gather Data
Chapter 3: Databases and Data Warehouses
Slide 1-12
Managing the Information Resource 1/2
Chief information officer (CIO) - responsible
for overseeing (and protecting) an organization’s
information resource.
Data administration - plans for, monitors, and
oversees the development of the information
resource.
Database administration - responsible for the
technical and operational aspects of managing the
information contained in organizational databases.
Chapter 3: Databases and Data Warehouses
Slide 1-13
Managing the Information Resource 2/2
How will changes in technology affect
organizing and managing information?
Who owns the information and is
responsible for its quality?
How does an organization safeguard against
the unethical use of information within the
organization?
Chapter 3: Databases and Data Warehouses
Slide 1-14
Closing Thoughts
Why is it so much easier for organizations
to provide good online transaction
processing (OLTP) support?
Chapter 3: Databases and Data Warehouses
Slide 1-15