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Chapter-6
Foundations of Business Intelligence:
Databases and Information Management
Group- Phantoms
Ashraf Md. AbdullahID No- 242
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Business Intelligence
An umbrella term that refers to a variety ofsoftware applications used to analyze anorganizations raw data.
Characteristics-
An Intuitive Web-based Interface
Ad hoc Reporting
Flexible Formatting Options
Dynamic Information Distribution
Financial Reporting and Analysis
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Definition
Business Intelligence (BI)
refers to skills, technologies,applications and practices
used to help a business acquire a better
understanding of its commercial context.
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BI Turns
Data Into Information
Information Into Knowledge
Knowledge Into Decisions
Decisions Into Profits
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Business Intelligence
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Business Intelligence
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Bank of Baroda
Problems-
1. Unable to serve its customer
2. 2. Unable to find bigger picture of thecustomer base
3. 3. Dont have pool of information to develop
data model for predictive analysis
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The Reasons were
1. The Banks data was Redundant Inconsistent
Fragmented among other branches
2. Data was stored in different databases; and
they could not be retrieved and analyzed
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The effects were
1. Numerous system and application wereunable to deliver consolidated informationabout the customer and comprehensive
customer profile2. It hampered to devise appropriate marketing
plans for different customer segments
3. Banks profitability and efficiency curtailed
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Solution
BoB employed a enterprise-wide, datawarehouse solution in-house by HP
HP developed a new Data Warehouse by
integrating all the different data from allsources into a single comprehensive database
HP helped by storing the data, organize the
data and providing tools for making the dataaccessible to employees for querying and
reporting.
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Organizing Data in Traditional File
Environment
An effective IS provides users with ART data
Accurate means the information is free from
error.
Timely means the data is available to decision
making when it is needed.
Relevant means useful and appropriate info
for the types of work & decision that require it
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DataHierarchy
A grouping of characters
into a word, a group of
words, or a complete
number (such as a
persons name or age) is
called a field.
a group of records of the
same type is called a file.
A group of related files
makes up a database.
A group of related fields,
such as the students
name, the coursetaken,The date, and the
grade, comprises a
record.
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Problems with the Traditional
File Environment Data redundancy and inconsistency
Data redundancy: Presence of duplicate data inmultiple files
Data inconsistency: Same attribute has differentvalues
Program-data dependence:
When changes in program requires changes to dataaccessed by program
Lack of flexibility
Poor security
Lack of data sharing and availability
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Data redundancy and inconsistency
Different divisions collect the same data
Customers
Sales
Account receivable
Service
Data inconsistency
Different coding to represent the same value
XL, extra large, extra-large
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Program-Data dependency
Coupling of stored data and programs which
update and maintain those data
Traditional program need to specify location
and nature of data
Lack of Flexibility
Traditional systems deliver routine scheduled
reports
Can NOT deliver ad hoc reports
Can not respond to unanticipated information
requirement in a timely manner
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Next Presenter
Md. Mohibbul Islam
ID No.- 234
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A software, which-
Centralize data
Manage data
Provide access to the stored data
Interfaces between applications and physical data
files Separates logical and physical views of data
Solves problems of traditional file environment
A collection of data organized to serve
many applications by centralizing data andcontrolling redundant data
Database management system
(DBMS)
Database
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Database management system
(DBMS)
A software, which-
Centralize data
Manage data
Provide access to the stored data
Interfaces between applications and physical data
files Separates logical and physical views of data
Solves problems of traditional file environment
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HUMAN RESOURCES DATABASE WITH
MULTIPLE VIEWS
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Prentice Hall 2011 20
Minimizing isolated files
Uncouples programs and data
Increase working efficiency
How DBMS eliminated Traditional File
Environment Problems
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Relational DBMS
Represent data as two-dimensional tables called relations or
files
Each table contains data on entity and attributes
Table: grid of columns and rows
Rows (tuples): Records for different entities Fields (columns): Represents attribute for entity
Key field: Field used to uniquely identify each record
Primary key: Field in table used for key fields
Foreign key: Primary key used in second table as look-up field toidentify records from original table
Prentice Hall 201121
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RELATIONAL DATABASE TABLES
FIGURE 6-4
Prentice Hall 201122
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Operations of a Relational DBMS
Three basic operations used to develop usefulsets of data
SELECT: Creates subset of data of all records that
meet stated criteria JOIN: Combines relational tables to provide user
with more information than available in individualtables
PROJECT: Creates subset of columns in table,creating tables with only the information specified
Prentice Hall 201123
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THE THREE BASIC OPERATIONS OF A RELATIONAL DBMS
FIGURE 6-5
Prentice Hall 201124
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Object-Oriented DBMS (OODBMS)
Stores data and procedures as objects
Objects can be graphics, multimedia, Javaapplets
Relatively slow compared with relational DBMSfor processing large numbers of transactions
Hybrid object-relational DBMS: Provide capabilitiesof both OODBMS and relational DBMS
Prentice Hall 201125
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Next Presenter
Md. Mominul Islam
ID No.- 226
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Capabilities of Database Management
Systems
Data definition capability: Specifies structure of
database content, used to create tables and definecharacteristics of fields
Data dictionary: Automated or manual file storing
definitions of data elements and their characteristics
Data manipulation language: Used to add, change,
delete, retrieve data from database
Structured Query Language (SQL)
Microsoft Access user tools for generation SQL
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Data Dictionary
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Data Manipulation Language
DML- There are two types of DML.
Procedural: the user specifies whatdata is
needed and howto get it.
Nonprocedural: the user only specifies
what data is needed. The features of
nonprocedural DML.
A query language is a portion of a
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A query language is a portion of a
DML Involving information retrieval
only. Designing Databases Conceptual (logical) design: abstract model from business perspective
Physical design: How database is arranged on direct-access storage
devices
Design process identifies
Relationships among data elements, redundant database elements
Most efficient way to group data elements to meet business
requirements, needs of application programs
Normalization
Streamlining complex groupings of data to minimize redundant dataelements and awkward many-to-many relationships
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Designing databases
Conceptual or Logical design
Abstract model from business perspective
Detail description of the business information need of
the actual end users How the data elements to be grouped
Physical design
How the database is actually arranged on direct access
storage devices
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An Normalized Relation for Order
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Normalized Tables Created from
Order
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Next Presenter
Fahim Lodhi
ID No.- 220
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Distributing Database
Distributed database: Data is stored in more
than one physical location
Central database is Partitioned for each remote
processor
Changed in local files can be justified on a batch
basis
Central database is Replicated to all remote
Require updating central database on off hours
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Advantage
Increase reliability and availability
Easier expansion
Reflects organizational structure
Local autonomy or site autonomy
Protection of valuable data Improved performance
Economics
Reliable transactions
Continuous operation Distributed Query processing
Distributed Transaction management
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Disadvantage
Complexity
Economics
Security
Difficult to maintain integrity
Inexperience
Lack of standards
Database design more complex
DDS software is required.
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Data 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 reporting tools
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
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Maintain data history
Integrate data from multiple source systems
Improve data quality
Present the organization's information consistently
Restructure the data so that it makes sense to thebusiness users
Restructure the data so that it delivers excellentquery performance
Benefits of a Data Warehouse