1. Business Driven Information Systems 2e
CHAPTER 6
DATABASES AND DATA WAREHOUSES

2. Chapter Six Overview SECTION 6.1 – DATABASE FUNDAMENTALS
Organizational Information
Storing Organizational Information
Relational Database Fundamentals
Relational Database Advantages
Database Management Systems
Integrating Data Among Multiple Databases
SECTION 6.2 – DATA WARAEHOUSE FUNDAMENTALS
Accessing Organizational Information
History of Data Warehousing
Data Warehouse Fundamentals
Data Mining and Business Intelligence

3. DATABASE FUNDAMENTALS
SECTION 6.1
DATABASE FUNDAMENTALS

4. LEARNING OUTCOMES
List, describe, and provide an example of each of the five characteristics of high quality information
Define the relationship between a database and a database management system
Describe the advantages an organization can gain by using a database.

5. LEARNING OUTCOMES
Define the fundamental concepts of the relational database model
Describe the two primary methods for integrating information across multiple databases
Compare relational integrity constraints and business-critical integrity constraints
Describe the benefits of a data-driven website

6. Organizational Information
Information is everywhere in an organization
Employees must be able to obtain and analyze the many different levels, formats, and granularities of organizational information to make decisions
Successfully collecting, compiling, sorting, and analyzing information can provide tremendous insight into how an organization is performing

7. Organizational Information
Levels, formats, and granularities of organizational information

8. The Value of Transactional and Analytical Information

9. The Value of Timely Information
Timeliness is an aspect of information that depends on the situation
Real-time information – immediate, up-to-date information
Real-time system – provides real-time information in response to query requests

10. The Value of Quality Information
Business decisions are only as good as the quality of the information used to make the decisions
You never want to find yourself using technology to help you make a bad decision faster

11. The Value of Quality Information
Characteristics of high-quality information include:
Accuracy
Completeness
Consistency
Uniqueness
Timeliness

12. The Value of Quality Information
Low quality information example

13. Understanding the Costs of Poor Information
The four primary sources of low quality information include:
Customers intentionally enter inaccurate information to protect their privacy
Different entry standards and formats
Operators enter abbreviated or erroneous information by accident or to save time
Third party and external information contains inconsistencies, inaccuracies, and errors

14. Understanding the Costs of Poor Information
Potential business effects resulting from low quality information include:
Inability to accurately track customers
Difficulty identifying valuable customers
Inability to identify selling opportunities
Marketing to nonexistent customers
Difficulty tracking revenue
Inability to build strong customer relationships

15. Understanding the Benefits of Good Information
High quality information can significantly improve the chances of making a good decision
Good decisions can directly impact an organization's bottom line

16. Relational Database Fundamentals
Information is everywhere in an organization
Information is stored in databases
Database – maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouses)

17. Relational Database Fundamentals
Database models include:
Hierarchical database model
Network database model
Relational database model – stores information in the form of logically related two-dimensional tables

18. Entities and Attributes
Entity – a person, place, thing, transaction, or event about which information is stored
The rows in each table contain the entities
In Figure 6.5 CUSTOMER includes Dave’s Sub Shop and Pizza Palace entities
Attribute (field, column) – characteristics or properties of an entity class
The columns in each table contain the attributes
In Figure 6.5 attributes for CUSTOMER include Customer ID, Customer Name, Contact Name

19. Keys and Relationships
Primary keys and foreign keys identify the various entities (tables) in the database
Primary key – a field (or group of fields) that uniquely identifies a given entity in a table
Foreign key – a primary key of one table that appears an attribute in another table and acts to provide a logical relationship among the two tables

20. Potential relational database for Coca-Cola

21. Relational Database Advantages
Database advantages from a business perspective include
Increased flexibility
Increased scalability and performance
Reduced information redundancy
Increased information integrity (quality)
Increased information security

22. Increased Flexibility
A well-designed database should:
Handle changes quickly and easily
Provide users with different views
Have only one physical view
Physical view – deals with the physical storage of information on a storage device
Have multiple logical views
Logical view – focuses on how users logically access information

23. Increased Scalability and Performance
A database must scale to meet increased demand, while maintaining acceptable performance levels
Scalability – refers to how well a system can adapt to increased demands
Performance – measures how quickly a system performs a certain process or transaction

24. Reduced Information Redundancy
Databases reduce information redundancy
Redundancy – the duplication of information or storing the same information in multiple places
Inconsistency is one of the primary problems with redundant information

25. Increase Information Integrity (Quality)
Information integrity – measures the quality of information
Integrity constraint – rules that help ensure the quality of information
Relational integrity constraint
Business-critical integrity constraint

26. Increased Information Security
Information is an organizational asset and must be protected
Databases offer several security features including:
Password – provides authentication of the user
Access level – determines who has access to the different types of information
Access control – determines types of user access, such as read-only access

27. Database Management Systems
Database management systems (DBMS) – software through which users and application programs interact with a database

28. Data-Driven Websites
Data-driven websites – an interactive website kept constantly updated and relevant to the needs of its customers through the use of a database

29. Data-Driven Websites

30. Data-Driven Website Business Advantages
Development
Content Management
Future Expandability
Minimizing Human Error
Cutting Production and Update Costs
More Efficient
Improved Stability

31. Data-Driven Business Intelligence

32. Integrating Information among Multiple Databases
Integration – allows separate systems to communicate directly with each other
Forward integration – takes information entered into a given system and sends it automatically to all downstream systems and processes
Backward integration – takes information entered into a given system and sends it automatically to all upstream systems and processes

33. Integrating Information among Multiple Databases
Forward integration

34. Integrating Information among Multiple Databases
Backward integration

35. Integrating Information among Multiple Databases
Building a central repository specifically for integrated information

36. OPENING CASE STUDY QUESTIONS It Takes A Village to Write an Encyclopedia
Determine if an entry in Wikipedia is an example of transactional information or analytical information
What is the impact to Wikipedia if the information contained in its database is of low quality?
Review the five common characteristics of high quality information and rank them in order of importance to Wikipedia

37. OPENING CASE STUDY QUESTIONS It Takes A Village to Write an Encyclopedia
How is Wikipedia resolving the issue of poor information?
Identify the different types of entities that might be stored in Wikipedia’s database
Why is database technology so important to Wikipedia’s business model?

38. DATA WAREHOUSE FUNDAMENTALS
SECTION 6.2
DATA WAREHOUSE FUNDAMENTALS

39. LEARNING OUTCOMES
Describe the roles and purposes of data warehouses and data marts in an organization
Compare the multidimensional nature of data warehouses (and data marts) with the two-dimensional nature of databases

40. LEARNING OUTCOMES
Identify the importance of ensuring the cleanliness of information throughout an organization
Explain the relationship between business intelligence and a data warehouse

41. HISTORY OF DATA WAREHOUSING
Data warehouses extend the transformation of data into information
In the 1990’s executives became less concerned with the day-to-day business operations and more concerned with overall business functions
The data warehouse provided the ability to support decision making without disrupting the day-to-day operations

42. DATA WAREHOUSE FUNDAMENTALS
Data warehouse – a logical collection of information – gathered from many different operational databases – that supports business analysis activities and decision-making tasks
The primary purpose of a data warehouse is to aggregate information throughout an organization into a single repository for decision-making purposes

43. DATA WAREHOUSE FUNDAMENTALS
Extraction, transformation, and loading (ETL) – a process that extracts information from internal and external databases, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouse
Data mart – contains a subset of data warehouse information

44. DATA WAREHOUSE FUNDAMENTALS

45. Multidimensional Analysis
Databases contain information in a series of two-dimensional tables
In a data warehouse and data mart, information is multidimensional, it contains layers of columns and rows
Dimension – a particular attribute of information

46. Multidimensional Analysis
Cube – common term for the representation of multidimensional information

47. Information Cleansing or Scrubbing
An organization must maintain high-quality data in the data warehouse
Information cleansing or scrubbing – a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information

48. Information Cleansing or Scrubbing
Contact information in an operational system

49. Information Cleansing or Scrubbing
Standardizing Customer name from Operational Systems

50. Information Cleansing or Scrubbing

51. Information Cleansing or Scrubbing
Accurate and complete information

52. Data Mining and Business Intelligence
Data mining – the process of analyzing data to extract information not offered by the raw data alone
To perform data mining users need data-mining tools
Data-mining tools helps users uncover BI

53. OPENING CASE STUDY QUESTIONS It Takes A Village to Write an Encyclopedia
How could Wikipedia use a data warehouse to improve its business operations?
Why must Wikipedia cleanse or scrub the information in its data warehouse?
How could a company use information from Wikipedia to gain business intelligence?

54. Closing Case One Google
How did the website RateMyProfessors.com solve its problem of low-quality information?
Review the five common characteristics of high-quality information and rank them in order of importance to Google’s business
What would be the ramifications to Google’s business if the search information it presented to its customers was of low quality?

55. Closing Case One Google
Describe the different types of databases. Why should Google use a relational database?
Identify the different types of entities, attributes, keys, and relationships that might be stored in Google’s AdWords relational database

56. CLOSING CASE ONE Google
How could Google use a data warehouse to improve its business operations?
Why would Google need to scrub and cleanse the information in its data warehouse?
Identify a data mart that Google’s marketing and sales department might use to track and analyze its AdWords revenue

57. CLOSING CASE TWO Mining the Data Warehouse
How is Ben & Jerry’s using business intelligence to remain successful and competitive in a saturated market?
Why is information cleansing and scrubbing critical to California Pizza Kitchen’s success?

58. CLOSING CASE TWO Mining the Data Warehouse
Why is 100 percent accurate and complete information impossible for Noodles & Company to obtain?
Describe how each of the companies above is using BI from their data warehouse to gain a competitive advantage

59. CLOSING CASE THREE Harrah’s
Identify the effects poor information might have on Harrah’s service-oriented business strategy
How does Harrah’s uses database technologies to implement its service-oriented strategy?
Harrah’s was one of the first casino companies to find value in offering rewards to customers who visit multiple Harrah’s locations. Describe the effects on the company if it did not build any integrations among the databases located at each of its casinos. How could Harrah’s use a data warehouse to synchronize customer information?

60. CLOSING CASE THREE Harrah’s
Estimate the potential impact to Harrah’s business if there is a security breach in its customer information
Identify three different types of data marts Harrah’s might want to build to help it analyze its operational performance

61. CLOSING CASE THREE Harrah’s
What might occur if Harrah’s fails to clean or scrub its information before loading it into its data warehouse?

62. BUSINESS DRIVEN BEST SELLERS
The Speed of Thought, by Bill Gates

63. BUSINESS DRIVEN BEST SELLERS
Why Smart Executives Fail, by Sydney Finkelstein