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6

Chapter

Foundations ofBusiness Intelligence:

Databases and

InformationManagement

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Distributing databases: Storing database in more than one place

Two main methods of distributing a database Partitioned: Separate locations store different parts of database

Replicated: Central database duplicated in entirety at different locations.

Advantages Reduced vulnerability

increased service, responsiveness

Run on smaller computers

Drawbacks May depart from standard definitions Pose Security problems access to sensitive data.

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Distributed Databases

Figure 6-12

There are alternative ways of distributing a database. The central database can be partitioned (a)so that each remote processor has the necessary data to serve its own local needs. The centraldatabase also can be replicated (b) at all remote locations.

The Database Approach to Data Management

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Using Databases to Improve Business Performance and Decision Making

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Large companies with very large databases and systems forseparate functions

Special capabilities, tools required to

To analyze large quantities of data To access data from multiple Systems

Three key techniques Data warehousing Data mining Tools for accessing internal databases through the Web

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Using Databases to Improve Business Performance and Decision Making

Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases

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Database warehouses

Data warehouse:

Stores current and historical data from many core operational

transaction systems Consolidates and standardizes information for use across enterprise,

but data cannot be altered

Data warehouse system will provide query, analysis, and reportingtools

Data marts: Subset of data warehouse with summarized or highly focused portion

of firms data for use by specific population of users

Typically focuses on single subject or line of business

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Components of a Data Warehouse

Figure 6-13

The data warehouse extracts current and historical data from multiple operational systems inside theorganization. These data are combined with data from external sources and reorganized into a centraldatabase designed for management reporting and analysis. The information directory provides userswith information about the data available in the warehouse.

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Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases

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Once data is captured and organized in datawarehouse and data marts

Further analysis can be done on it.

Series of tools enables users

To analyze the data

See new patterns Relationships and insights

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Using Databases to Improve Business Performance and Decision Making

Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases

and Information Management

Business Intelligence:

Tools for consolidating, analyzing, and providing accessto vast amounts of data to help users make better

business decisions

Principle tools include:

Software for database query and reporting

Online analytical processing (OLAP)

Data mining

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Business Intelligence

Figure 6-14

A series ofanalytical toolsworks with datastored indatabases to findpatterns andinsights forhelpingmanagers andemployees makebetter decisionsto improveorganizationalperformance.

Using Databases to Improve Business Performance and Decision Making

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Using Databases to Improve Business Performance and Decision Making

Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases

and Information Management

Online analytical processing (OLAP)

Sophisticated data analysis

Supports multidimensional data analysis

Enables viewing data using multiple dimensions

Each aspect of information (product, pricing, cost,region, time period) is different dimension

E.g. how many washers sold in each of the salesregion ?compare actual results with projected results.

Complex requests

OLAP enables rapid, online answers to queries

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Multidimensional Data Model

Figure 6-15

The view that isshowing isproduct versusregion. If yourotate the cube 90degrees, the face

that will show isproduct versusactual andprojected sales. Ifyou rotate thecube 90 degreesagain, you will seeregion versus

actual andprojected sales.Other views arepossible.

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Using Databases to Improve Business Performance and Decision Making

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Data mining:

More discovery driven than OLAP

Provides insights that cannot be obtained from OLAP.

Finds hidden patterns, relationships in large databases

Infers rules to predict future behavior

The patterns and rules are used to guide decision makingand forecast the effect of those decisions

Popularly used to provide detailed analyses of patterns in

customer data for one-to-one marketing campaigns or toidentify profitable customers.

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Using Databases to Improve Business Performance and Decision Making

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and Information Management

Types of information obtainable from data mining

Associations:Occurrences linked to single event

Ex: Chips purchased then a drink is purchased 65%,but when thereis a promotion then drink is bought 85% times.

Sequences:Events linked over time

Ex:House is purchased, Refrigerator will be purchased in the nexttwo weeks 65% of the time.

Classification:Recognizes patterns that describe group to

which item belongs. Group of customers which will leave. Clustering:Similar to classification when no groups have been

defined; finds groupings within data, customer demographics.

Forecasting:Uses series of existing values to forecast whatother values will be,Ex future value of sales figure.

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Predictive analysis

Uses data mining techniques, historical data, andassumptions about future conditions to predict outcomes of

events E.g. Probability a customer will respond to an offer or

purchase a specific product.

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Text mining Extracts key elements from large unstructured data sets (e.g.,

e-mails, memos, survey responses) Discover patterns and relationships and summarizes info.

Web Mining

Info from Web can be mined for patterns, trends and insights in to customerbehavior. The discovery and analysis of useful patterns and info from Web is called Web

mining.

Businesses use Web mining to help understand customer behavior,

evaluate the effectiveness of a website. Success of a marketing campaign. Ex marketers use google trends and services to learn what people are interested in

and what are they interested in buying.

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Web Mining:

Content mining Extracting knowledge from content of web pages

Structure mining Ex links pointing to a document

Usage mining Activities of websites user.

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Management Information SystemsChapter 6 Foundations of Business Intelligence: Databases

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Databases and the Web Many companies use Web to make some internal databases

available to customers or partners

Typical configuration includes: Web server

Application server/middleware

Database server (hosting DBM)

Advantages of using Web for database access:

Ease of use of browser software

Web interface requires few or no changes to database

Inexpensive to add Web interface to system

M I f i S

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Linking Internal Databases to the Web

Figure 6-16

Web browser communicates with web server using HTML commands.Html commands Converted to SQL.DBMS receives the SQL Request and getthe required data. Application Server get the data from the database back toweb server in the form of webpage to the end user.

Users access an organizations internal database through the Web using

their desktop PCs and Web browser software.

Using Databases to Improve Business Performance and Decision Making

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and Information Management

M t I f ti S t

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The InternetMovieDatabaseWeb site islinked to amassivedatabase thatincludes

summaries,castinformation,and actorbiographiesfor almostevery filmever released.

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and Information Management

Chapter 6 Foundations of Business Intelligence:

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Chapter 6 Foundations of Business Intelligence:Databases

and Information ManagementManaging Data Resources

Read the Interactive Session: Technology, and thendiscuss the following questions:

What kind of databases and database servers does My

Space use? Why is database technology so important for a

business such asMy Space?

How effectively does My Space organize and store thedata on its site? What data management problems have arisen? How

has My Space solved or attempted to solve theseproblems.

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