Chapter 3: Databases and Data Warehouses Building Business Intelligence Management Information Systems for the Information Age

Chapter 3: Databases and Data WarehousesSlide 1-2 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 WarehousesSlide 1-3 Business Intelligence 2/2 1.Where does BI come from? 2.How is BI developed? 3.What IT is necessary for BI? 3 IT for BI 2Dev. 1Origin BI

Chapter 3: Databases and Data WarehousesSlide 1-4 Where Does BI Come From?BusinessIntelligence Knowledge Information Data MANAGEMENT IT TOOLS

Chapter 3: Databases and Data WarehousesSlide 1-5 How Is BI Developed? To develop business intelligence (BI): 2. You have to structure and organize the data gathered. 3. You can then aggregate and filter related data into information. 4. Finally you can manipulate the information into knowledge. Building Towards BI 1. You need to gather data first. Manipulated Information = Knowledge Aggregated Data = Information Structure and Organize Data Gather Data

Chapter 3: Databases and Data WarehousesSlide 1-6 IT #1: Gather Data Database Management Systems Information Systems Online Analytical Processing 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. Online Transaction Processing Business Intelligence Knowledge Information Data

Chapter 3: Databases and Data WarehousesSlide 1-7 OLTP

Chapter 3: Databases and Data WarehousesSlide 1-8 IT #2: Structure and Organize Data Database Management Systems Information Systems Online Analytical Processing 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. Online Transaction Processing Business Intelligence Knowledge Information Data

Chapter 3: Databases and Data WarehousesSlide 1-9 Step #3: Manipulate Data Database Management Systems Information Systems Online Analytical Processing 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. Online Transaction Processing Business Intelligence Knowledge Information Data

Chapter 3: Databases and Data WarehousesSlide 1-10 Step #4: Aggregate Information Database Management Systems Information Systems Online Analytical Processing Online Analytical Processing (OLAP) is the manipulation of information to support decision making. Data warehouses (and data marts) and data mining tools support OLAP. Online Transaction Processing Business Intelligence Knowledge Information Data

Chapter 3: Databases and Data WarehousesSlide 1-11 Building Business Intelligence 1/2

Chapter 3: Databases and Data WarehousesSlide 1-12 Building Business Intelligence 2/2 IT for business intelligence (BI): Relational Database Model Database Management Systems Data Warehouses and Data Mining Building Towards BI Manipulated Information = Knowledge Aggregated Data = Information Structure and Organize Data Gather Data

Chapter 3: Databases and Data WarehousesSlide 1-13 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 WarehousesSlide 1-14 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 WarehousesSlide 1-15 Closing Thoughts Why is it so much easier for organizations to provide good online transaction processing (OLTP) support?