Chapter 6 Foundations of Business Intelligence:
Databases and Information Management
Learning objectives
6.1 What are the problems of managing data resources in a traditional file environment?
6.2 What are the major capabilities of database management systems (DBMS), and why is a
relational DBMS so powerful?
6.3 What are the principal tools and technologies for accessing information from databases to
improve business performance and decision making?
6.4 Why are information policy, data administration, and data quality assurance essential for
managing the firm's data resources?
6.5 How will MIS help my career?
Cases
Data Management Enables Smarter Energy Generation in Australia
Societe Generale Builds an Intelligent System to Manage Information Flow
Data-driven Policing Goes Global
How Reliable Is Big Data?
6.1 What are the problems of managing data resources in a traditional file environment?
The data hierarchy
A record describes an entity (=a person, place, thing, or event on which we store and maintain info).
Each characteristic or quality describing a particular entity, is an attribute.
Problems with the Traditional File Environment
- Data Redundancy and Inconsistency
, Data redundancy = the presence of duplicate data in multiple files so that the same data are
stored in more than one place or location (waste of storage resources). This leads to data
inconsistency = where the same attribute has different values.
- Program-data dependence
= refers to the coupling of data stored in files and the specific programs that required to
update and maintain those files such that changes in programs require changes to the data.
- Lack of flexibility
A traditional file system can deliver routine scheduled reports after extensive programming
efforts, but cannot deliver ad hoc reports or respond to unanticipated info requirements in a
timely fashion.
- Poor security
Due to the little control or management of data.
- Lack of data sharing and availability
Because pieces of info in different files and different parts of the organization cannot be
related to one another, it is virtually impossible for info to be shared or accessed in a timely
manner.
6.2 What are the major capabilities of database management systems (DBMS), and why is a
relational DBMS so powerful?
Database = a collection of data organized to serve many applications efficiently by centralizing data
and controlling redundant data.
Database Management System (DBMS)
= software that enables an organization to centralize data, manage them efficiently, and provide
access to the stored data by application programs.
- Interfaces between applications and physical data files
- Separated logical (presents data at they would be perceived by end users) and physical (how
data is organized and structured) views of data
- Solves problems of traditional file environment
Relational DBMS
= most popular type of DBMS today
Represent data as two-dimensional tables (called relations). Tables may referred to as files.
Each table contains data on an entity and its attributes.
For example Microsoft Access, DB2, Oracle Database, Microsoft SQL Server (most popular
open source DBMS)
Capabilities of DBMS
- Includes capabilities and tools for organizing, managing and accessing the data in the
database
- Most important are data definition language (to specify the structure of the content of the
database), data dictionary (automated or manual file that stores definitions of data element
and their characteristics), data manipulation language (used to add, change, delete and
retrieve the data in the database; most important one is Structured Query Language (SQL))
Designing databases
Database required a conceptual and physical design. Conceptual/logical design is an abstract model
of the database from a business perspective. The physical design shows how the database is actually
arranged on direct-access storage devices.
Databases and Information Management
Learning objectives
6.1 What are the problems of managing data resources in a traditional file environment?
6.2 What are the major capabilities of database management systems (DBMS), and why is a
relational DBMS so powerful?
6.3 What are the principal tools and technologies for accessing information from databases to
improve business performance and decision making?
6.4 Why are information policy, data administration, and data quality assurance essential for
managing the firm's data resources?
6.5 How will MIS help my career?
Cases
Data Management Enables Smarter Energy Generation in Australia
Societe Generale Builds an Intelligent System to Manage Information Flow
Data-driven Policing Goes Global
How Reliable Is Big Data?
6.1 What are the problems of managing data resources in a traditional file environment?
The data hierarchy
A record describes an entity (=a person, place, thing, or event on which we store and maintain info).
Each characteristic or quality describing a particular entity, is an attribute.
Problems with the Traditional File Environment
- Data Redundancy and Inconsistency
, Data redundancy = the presence of duplicate data in multiple files so that the same data are
stored in more than one place or location (waste of storage resources). This leads to data
inconsistency = where the same attribute has different values.
- Program-data dependence
= refers to the coupling of data stored in files and the specific programs that required to
update and maintain those files such that changes in programs require changes to the data.
- Lack of flexibility
A traditional file system can deliver routine scheduled reports after extensive programming
efforts, but cannot deliver ad hoc reports or respond to unanticipated info requirements in a
timely fashion.
- Poor security
Due to the little control or management of data.
- Lack of data sharing and availability
Because pieces of info in different files and different parts of the organization cannot be
related to one another, it is virtually impossible for info to be shared or accessed in a timely
manner.
6.2 What are the major capabilities of database management systems (DBMS), and why is a
relational DBMS so powerful?
Database = a collection of data organized to serve many applications efficiently by centralizing data
and controlling redundant data.
Database Management System (DBMS)
= software that enables an organization to centralize data, manage them efficiently, and provide
access to the stored data by application programs.
- Interfaces between applications and physical data files
- Separated logical (presents data at they would be perceived by end users) and physical (how
data is organized and structured) views of data
- Solves problems of traditional file environment
Relational DBMS
= most popular type of DBMS today
Represent data as two-dimensional tables (called relations). Tables may referred to as files.
Each table contains data on an entity and its attributes.
For example Microsoft Access, DB2, Oracle Database, Microsoft SQL Server (most popular
open source DBMS)
Capabilities of DBMS
- Includes capabilities and tools for organizing, managing and accessing the data in the
database
- Most important are data definition language (to specify the structure of the content of the
database), data dictionary (automated or manual file that stores definitions of data element
and their characteristics), data manipulation language (used to add, change, delete and
retrieve the data in the database; most important one is Structured Query Language (SQL))
Designing databases
Database required a conceptual and physical design. Conceptual/logical design is an abstract model
of the database from a business perspective. The physical design shows how the database is actually
arranged on direct-access storage devices.
