Chapter 3 Databases and Data Warehouses: Building Business Intelligence Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

STUDENT LEARNING OUTCOMES 1. List and describe the key characteristics of a relational database. 2. Define the 5 software components of a DBMS. 3. List and describe the key characteristics of a data warehouse. 4. Define the 4 major types of data-mining tools. 5. Describe the role of business intelligence. 6. List key considerations in information ownership. 3-2

MORE CHERRIES PLEASE  Ben & Jerry’s  190,000 pints of ice cream and frozen yogurt  50,000 grocery stores  In the U.S. and 12 other countries  Meticulously tracks every piece of information on every pint 3-3

MORE CHERRIES PLEASE  Noticed a problem with Cherry Garcia Ice Cream  Complaints of not enough cherries  Ben & Jerry’s could find no production problems  Eventually found that the wrong photo was on the ice cream container  Ben & Jerry’s analyzed all the information to create business intelligence 3-4

Questions 1. What type of personal transaction information do you maintain? For what purposes? Do you use a computer to help you? 2. What detailed transaction information would a grocery store typically capture and store? 3-5

INTRODUCTION Businesses use many IT tools to manage and organize information for many reasons Online transaction processing (OLTP) Online analytical processing (OLAP) 3-6

INTRODUCTION  OLTP  OLAP 3-7

OLTP, OLAP, and Business Intelligence 3-8

CHAPTER ORGANIZATION 1. Relational Database Model – Learning Outcome #1 2. Database Management System Tools – Learning Outcome #2 3. Data Warehouses and Data Mining – Learning Outcomes #3 & #4 4. Business Intelligence Revisited – Learning Outcome #5 5. Information Ownership – Learning Outcome #6 3-9

RELATIONAL DATABASE MODEL  Database  Relational database 3-10

Database Characteristics 3-11

Database – Collection of Information 3-12

Database – Created with Logical Structures  Data dictionary 3-13

Database – Logical Ties within the Information  Primary key  Foreign key Customer Number is the primary key for Customer and appears in Order as a foreign key 3-14

Database – Logical Ties within the Information 3-15

Databases – Built-In Integrity Constraints  Integrity constraints  Data dictionary  Foreign keys 3-16

DATABASE MANAGEMENT SYSTEM TOOLS  Database management system (DBMS) 3-17

5 Components of a DBMS 3-18

DBMS Engine DBMS engine Physical view Logical view 3-19

Data Definition Subsystem  Data definition subsystem 3-20

Data Manipulation Subsystem  Data manipulation subsystem 3-21

View  View Binoculars 3-22

Report Generator  Report generator – 3-23

Query-by-Example Tool  QBE tool 3-24

Structured Query Language  SQL 3-25

Application Generation Subsystem  Application generation subsystem 3-26

Data Administration Subsystem Data administration subsystem 3-27

Data Administration Subsystem  Backup and recovery 3-28

Data Administration Subsystem  Security management  Query optimization  Reorganization 3-29

Data Administration Subsystem  Concurrency control  Change management 3-30

DATA WAREHOUSES AND DATA MINING  Help you build and work with business intelligence and some forms of knowledge  Data warehouse 3-31

Data Warehouse Characteristics  Multidimensional  Support decision making, not transaction processing 3-32

Data-Mining Tools  Data-mining tools 3-33

Data-Mining Tools Query-and-reporting tools Multidimensional analysis (MDA tools) 3-34

Data Marts  Data mart 3-35

Data Warehouse Considerations 3-36

BUSINESS INTELLIGENCE REVISITED Business intelligence (BI) 3-37

BI Objectives 3-38

Building Business Intelligence 3-39

Viewing Business Intelligence  Digital dashboard 3-40

INFORMATION OWNERSHIP 3-41

Strategic Management Support Covered many c-level positions in Chapter 2 for IT 2 others in information management Data administration Database administration 3-42

Sharing Information 3-43

Information Cleanliness  3-44