Published on

  • Be the first to comment

  • Be the first to like this


  1. 1. Management Information Systems INFO 6240 MBA Programme Management Center / IIUM Ahmed M. Zeki [email_address] Mar - May 2007 3
  2. 2. INTRODUCTION <ul><li>Organizations need business intelligence </li></ul><ul><li>Business intelligence (BI) – knowledge about your customers, competitors, business partners, competitive environment, and internal operations to make effective, important, and strategic business decisions. </li></ul><ul><li>IT tools help process information to create business intelligence according to: </li></ul><ul><ul><li>OLTP </li></ul></ul><ul><ul><li>OLAP </li></ul></ul>
  3. 3. OLTP <ul><li>Online transaction processing (OLTP) – the gathering of input information, processing that information, and updating existing information to reflect the gathered and processed information </li></ul><ul><ul><li>Databases support OLTP </li></ul></ul><ul><ul><li>Operational database – databases that support OLTP </li></ul></ul>
  4. 4. OLAP <ul><li>Online analytical processing (OLAP) – the manipulation of information to support decision making </li></ul><ul><ul><li>Databases can support some OLAP </li></ul></ul><ul><ul><li>Data warehouses only support OLAP, not OLTP </li></ul></ul><ul><ul><li>Data warehouses are special forms of databases that support decision making </li></ul></ul>
  5. 5. Building BI
  6. 6. THE RELATIONAL DATABASE MODEL <ul><li>There are many types of databases </li></ul><ul><li>The relational database model is the most popular </li></ul><ul><li>Relational database – uses a series of logically related two-dimensional tables or files to store information in the form of a database </li></ul>
  7. 7. Databases Are… <ul><li>Collections of information </li></ul><ul><li>Created with logical structures </li></ul><ul><li>With logical ties within the information </li></ul><ul><li>With built-in integrity constraints </li></ul>
  8. 8. Databases – Collections of Information <ul><li>Databases have many tables </li></ul><ul><li>Consider Solomon Enterprises that provides concrete to home and commercial builders. Tables or files include: </li></ul><ul><ul><li>Order </li></ul></ul><ul><ul><li>Customer </li></ul></ul><ul><ul><li>Concrete Type </li></ul></ul><ul><ul><li>Employee </li></ul></ul><ul><ul><li>Truck </li></ul></ul>
  9. 9. Databases – Collections of Information
  10. 10. Databases – Created with Logical Structures <ul><li>In databases, the row number is irrelevant </li></ul><ul><li>Not true in spreadsheet software </li></ul><ul><li>In databases, column names are very important. Column names are created in the data dictionary </li></ul><ul><li>Data dictionary – contains the logical structure of the information in a database </li></ul>
  11. 11. Databases – With Logical Ties Within the Information <ul><li>Logical ties must exist between the tables or files in a database </li></ul><ul><li>Logical ties are created with primary and foreign keys </li></ul><ul><li>Primary key – field (or group of fields in some cases) that uniquely describes each record </li></ul><ul><ul><li>Can you find primary keys in Figure 3.2 on slide 11 (Page 129)? </li></ul></ul>
  12. 12. Databases – With Logical Ties Within the Information <ul><li>Foreign key – primary key of one file that appears in another file </li></ul><ul><li>Foreign keys help you create logical ties within the information in a database </li></ul>
  13. 13. Databases – With Logical Ties Within the Information
  14. 14. Databases – With Built-In Integrity Constraints <ul><li>Integrity constraints – rules that help ensure the quality of the information </li></ul><ul><li>Examples </li></ul><ul><ul><li>Primary keys must be unique </li></ul></ul><ul><ul><li>Foreign keys must be present </li></ul></ul><ul><ul><li>Sales price cannot be negative </li></ul></ul><ul><ul><li>Phone number must have area code </li></ul></ul>
  15. 15. DATABASE MANAGEMENT SYSTEM TOOLS <ul><li>Database management system (DBMS) – helps you specify the logical organization for a databases and access and use the information within a database </li></ul><ul><ul><li>Word processing software = document </li></ul></ul><ul><ul><li>Spreadsheet software = workbook </li></ul></ul><ul><ul><li>DBMS software = database </li></ul></ul>
  16. 16. DATABASE MANAGEMENT SYSTEM TOOLS <ul><li>5 software components: </li></ul><ul><ul><li>DBMS engine </li></ul></ul><ul><ul><li>Data definition subsystem </li></ul></ul><ul><ul><li>Data manipulation subsystem </li></ul></ul><ul><ul><li>Application generation subsystem </li></ul></ul><ul><ul><li>Data administration subsystem </li></ul></ul>
  18. 18. DBMS Engine <ul><li>DBMS engine – accepts logical requests from the various other DBMS subsystems, converts them into their physical equivalent, and actually accesses the database and data dictionary as they exist on a storage device </li></ul><ul><li>DBMS engine separates the logical from the physical </li></ul>
  19. 19. DBMS Engine <ul><li>Physical view – how information is physically arranged, stored, and accessed on some type of storage device </li></ul><ul><li>Logical view – how you as a knowledge worker need to arrange and access information </li></ul><ul><li>With a database, you only concern yourself with your logical view </li></ul>
  20. 20. Data Definition Subsystem <ul><li>Data definition subsystem – helps you create and maintain the data dictionary and define the structure of the files in a database </li></ul><ul><li>You must create a data dictionary before entering information into a database </li></ul>
  21. 21. Data Manipulation Subsystem <ul><li>Data manipulation subsystem – helps you add, change, and delete information </li></ul><ul><li>This is your primary DBMS interface as you work with a database </li></ul><ul><ul><li>Views </li></ul></ul><ul><ul><li>Report generators </li></ul></ul><ul><ul><li>QBE tools </li></ul></ul><ul><ul><li>SQL </li></ul></ul>
  22. 22. Views <ul><li>View – allows you to see the contents of a database file </li></ul><ul><ul><li>Make whatever changes you want </li></ul></ul><ul><ul><li>Perform simple sorting </li></ul></ul><ul><ul><li>Query to find the location of information </li></ul></ul><ul><ul><li>Looks similar to a workbook with no row numbers </li></ul></ul>
  23. 23. Views
  24. 24. Report Generators <ul><li>Report generator – helps you quickly define formats of reports and what information you want to see in a report </li></ul><ul><li>You can save report formats and generate reports at any time with up-to-date information </li></ul>
  25. 25. Report Generators
  26. 26. Report Generators
  27. 27. QBE Tools <ul><li>Query-by-example (QBE) tool – helps you graphically design the answer to a question </li></ul><ul><li>“ What driver most often delivers concrete to Triple A Homes?” </li></ul>
  28. 28. QBE Tools
  29. 29. SQL <ul><li>Structured query language (SQL) – standardized fourth-generation language found in most DBMSs </li></ul><ul><li>Performs the same task as a QBE tool </li></ul><ul><ul><li>But uses a sentence structure instead of point-and-click interface </li></ul></ul><ul><li>SQL is used mostly by IT people </li></ul>
  30. 30. Application Generation Subsystem <ul><li>Application generation subsystem – contains facilities to help you develop transaction-intensive applications </li></ul><ul><ul><li>Data entry screen (called forms) </li></ul></ul><ul><ul><li>Programming languages </li></ul></ul><ul><li>Used mostly by IT specialists </li></ul>
  31. 31. Data Administration Subsystem <ul><li>Data administration subsystem – helps you manage the overall database environment </li></ul><ul><ul><li>Backup and recovery </li></ul></ul><ul><ul><li>Security management </li></ul></ul><ul><ul><li>Query optimization </li></ul></ul><ul><ul><li>Concurrency control </li></ul></ul><ul><ul><li>Change management </li></ul></ul>
  32. 32. Data Administration Subsystem <ul><li>Backup and recovery </li></ul><ul><ul><li>Periodically back up information </li></ul></ul><ul><ul><li>Recover a database if a failure occurs </li></ul></ul><ul><li>Security management </li></ul><ul><ul><li>Who has access to what information </li></ul></ul><ul><ul><li>Who can perform certain tasks (e.g., add, change, or delete) on information </li></ul></ul>
  33. 33. Data Administration Subsystem <ul><li>Query optimization </li></ul><ul><ul><li>Restructure physical view of information to optimize response times to queries </li></ul></ul><ul><li>Concurrency control </li></ul><ul><ul><li>What happens if two people makes changes to the same information at the same time? </li></ul></ul>
  34. 34. Data Administration Subsystem <ul><li>Change management </li></ul><ul><ul><li>What is the effect of structural changes to a database? </li></ul></ul><ul><ul><li>What if you add a new column? </li></ul></ul><ul><ul><li>What happens if you delete a column? </li></ul></ul><ul><ul><li>What happens if you change a column’s attributes? </li></ul></ul>
  35. 35. DATA WAREHOUSES AND DATA MINING <ul><li>Data warehouses support OLAP and decision making </li></ul><ul><li>Data warehouses do not support OLTP </li></ul><ul><li>Data-mining tools are the tools you use to work with a data warehouse </li></ul><ul><ul><li>DBMS software = database </li></ul></ul><ul><ul><li>Data-mining tools = data warehouse </li></ul></ul>
  36. 36. What Is a Data Warehouse? <ul><li>Data warehouse – logical collection of information – gathered from operational databases – used to create business intelligence that supports business analysis activities and decision-making tasks </li></ul>
  37. 37. What Is a Data Warehouse?
  38. 38. What Is a Data Warehouse? <ul><li>Multidimensional </li></ul><ul><li>Rows and columns </li></ul><ul><li>Also layers </li></ul><ul><li>Many times called hypercubes </li></ul>
  39. 39. What Are Data-Mining Tools? <ul><li>Data-mining tools – software tools that you use to query information in a data warehouse </li></ul><ul><ul><li>Query-and-reporting tools </li></ul></ul><ul><ul><li>Intelligent agents </li></ul></ul><ul><ul><li>Multidimensional analysis tools </li></ul></ul><ul><ul><li>Statistical tools </li></ul></ul>
  40. 40. What Are Data-Mining Tools?
  41. 41. Query-And-Reporting Tools <ul><li>Query-and-reporting tools – similar to QBE tools, SQL, and report generators in the typical database environment </li></ul>
  42. 42. Intelligent Agents <ul><li>Use various artificial intelligence tools such as neural networks and fuzzy logic to form the basis for “information discovery” and building business intelligence </li></ul><ul><li>Help you find hidden patterns in information </li></ul>
  43. 43. Multidimensional Analysis Tools <ul><li>Multidimensional analysis (MDA) tools – slice-and-dice techniques that allow you to view multidimensional information from different perspectives </li></ul><ul><ul><li>Bring new layers to the front </li></ul></ul><ul><ul><li>Reorganize rows and columns </li></ul></ul>
  44. 44. Statistical Tools <ul><li>Help you apply various mathematical models to the information stored in a data warehouse to discover new information </li></ul><ul><ul><li>Regression </li></ul></ul><ul><ul><li>Analysis of variance </li></ul></ul><ul><ul><li>And so on </li></ul></ul>
  45. 45. Data Marts <ul><li>Data warehouses can support all of an organization’s information </li></ul><ul><li>Data marts have subsets of an organization-wide data warehouse </li></ul><ul><li>Data mart – subset of a data warehouse in which only a focused portion of the data warehouse information is kept </li></ul>
  46. 46. Data Marts
  47. 47. Data Mining as a Career Opportunity <ul><li>Knowledge of data mining can be a substantial career opportunity for you </li></ul><ul><ul><li>Query and Analysis and Enterprise Analytic Tools (Business Objects) </li></ul></ul><ul><ul><li>Business Intelligence and Information Access tools (SAS) </li></ul></ul><ul><ul><li>Many in Cognos (the data warehouse leader) </li></ul></ul><ul><ul><li>PowerAnalyzer (Informatica) </li></ul></ul>
  48. 48. Considerations in Using a Data Warehouse <ul><li>Do you need a data warehouse? </li></ul><ul><ul><li>Perhaps database OLAP is sufficient </li></ul></ul><ul><li>Do all employees need the entire data warehouse? </li></ul><ul><ul><li>If no, build smaller data marts </li></ul></ul><ul><li>How up-to-date must the information be? </li></ul><ul><li>What data-mining tools do you need? </li></ul>
  49. 49. MANAGING THE INFORMATION RESOURCE <ul><li>Information is an organizational resource </li></ul><ul><li>Just like people, capital, and equipment </li></ul><ul><li>It must be managed effectively </li></ul>
  50. 50. MANAGING THE INFORMATION RESOURCE <ul><li>Who should oversee your organization’s information resource? </li></ul><ul><ul><li>Chief information officer (CIO) – oversees an organization’s information resource </li></ul></ul><ul><ul><li>Data administration – plans for, oversees the development of, and monitors the information resource </li></ul></ul><ul><ul><li>Database administration – technical and operational aspects of managing information </li></ul></ul>
  51. 51. MANAGING THE INFORMATION RESOURCE <ul><li>Is information ownership a consideration? </li></ul><ul><ul><li>If you create information, you “own” it </li></ul></ul><ul><ul><li>You will also share it with others </li></ul></ul><ul><ul><li>Because you “own” it, you are responsible for its quality </li></ul></ul>
  52. 52. MANAGING THE INFORMATION RESOURCE <ul><li>How “clean” must your information be? </li></ul><ul><ul><li>Duplicate information (records) must be eliminated </li></ul></ul><ul><ul><li>Inaccurate information must be corrected </li></ul></ul><ul><ul><li>Information forms the basis of business intelligence </li></ul></ul><ul><ul><li>If your business intelligence is bad, you will make poor decisions </li></ul></ul>