Developing A Strategy For The Internet Age
The Five Forces Model
Video: porter
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What is the major role of UTZ information systems?
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What are the characteristics of the information UTZ
receives that would make it valuable?
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Analyze the industry that UTZ is in using the porter
model, is it a good industry to be in?
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What competitive advantage do you feel Utz has? How
does information play into that competitive advantage
Databases and Warehouses
Building Business Intelligence
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To make good and accurate decisions
and work in the most productive and
efficient way, knowledge workers today
need
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(1) access to information and
(2) tools to work with that information.
Business Intelligence

What is it?
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Business intelligence is knowledge –
knowledge about your customers, your
competitors, your partners, your
competitive environment, and your own
internal operations
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Where is BI found?
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Databases & Data warehouses
Key Terms
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Online transaction processing (OLTP) –
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Operational database –
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the gathering of input information, processing that
information, and updating existing information to reflect
the gathered and processed information.
database that supports OLTP.
Online analytical processing (OLAP)

the manipulation of information to support
decision making.
Business Intelligence
Hierarchy of Data
THE RELATIONAL
DATABASE MODEL
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Database
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Relational database model
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A collection of information that you organize and access
according to the logical structure of that information.
uses a series of logically related two-dimensional tables
(called relations) or files to store information in the form of a
database.
Relation

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describes each two-dimensional table or file in the relational
model.
The word relation here is in reference to the collection of the
data within one specific table.
By carefully examining the definition
given to “relational databases” we can
clearly identify two parts to it:
1.
2.
Information – stored in a series of two
dimensional tables, files, or relations.
Logical structure of the information.
Data dictionary – contains the logical
structure for the information.

Database management system
(DBMS)

helps you specify the logical organization
for a database and access and use
(manipulating) the information within a
database.
DATABASE MANAGEMENT
SYSTEM TOOLS
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DBMS Engine
Data Definition Subsystem
Data Manipulation Subsystem
Application Generation Subsystem
Data Administration Subsystem
The DBMS
Figure 3.4
Software
Subsystems of
a Database
Management
System
page 85
Traditional Approach to Data Management
Database Approach to Data Management
Advantages of Database Approach

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Improved strategic use
of corporate data
Reduced data
redundancy
Improved data integrity
Easier modification and
updating
Data and program
independence
Better access to data
and information
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Standardization of data
access
Framework for program
development
Better overall protection
of the data
Shared data and
information resources
Disadvantages of Database
Approach

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Relatively high cost of purchasing and
operating a DBMS in a mainframe
operating environment
Increased cost of specialized staff
Increased vulnerability
DATA WAREHOUSES AND
DATA MINING
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What Is a Data Warehouse?
What Are Data Mining Tools?
Data Marts: Smaller Data Warehouses
Important Considerations in Using a
Data Warehouse
Data Warehouses and Data Mining
Data Warehouses Are Multidimensional
Figure 3.8
A Multidimensional
Data Warehouse
with Information
from Multiple
Operational
Databases
Elements of a Data
Warehouse
Data Warehouses and Data Mining
Data Marts – Smaller Data Warehouses

Data mart - a
subset of a data
warehouse in
which only a
focused portion
of the data
warehouse
information is
kept.
Data Marts Are Subsets of
Data Warehouse

Data Mining: an information analysis tool that
involves the automated discovery of patterns
and relationships in a data warehouse
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Applications
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Market segmentation
Customer churn
Fraud detection
Direct marketing
Market basket analysis
Trend analysis
How Up-to-Date Should Data
Warehouse Information Be?
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To adjust class sizes in a university registration system
To alert people to changes in weather conditions To
predict scores in professional football games
To adjust radio advertisements in light of demographic
changes
To monitor the success of a new product line in the
clothing retail industry
To adjust production levels of foods in a cafeteria
To switch jobs to various printers in a network – by the
minute.
To adjust CD rates in a bank
To adjust forecasted demands of tires in an auto parts
store
MANAGING THE INFORMATION
RESOURCE IN AN ORGANIZATION
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Who Should Oversee the Organization’s
Information?
How Will Changes in Technology Affect
Organizing and Managing Information?
Is Information Ownership a
Consideration?
What Are the Ethics Involved in
Managing and Organizing Information?
OLTP and Data Warehousing
OLTP and Data Mining
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Senate Democrats try to stop Pentagon data-mining
project
Some conservatives also concerned about privacy issue

Databases and data warehouses clearly make it
easier for people to access all kinds of information.
This will lead to great debates in the area of
privacy. Should organizations be left to police
themselves with respect to providing access to
information or should the government impose
privacy legislation? Answer this question with
respect to (1) customer information shared by
organizations; (2) employee information shared
within a specific organization; and (3) business
information available to customers.

Consider that you work in the human resources management
department of a local business and that many of your friends
work there. Although you don’t personally generate payroll
checks, you still have the ability to look up anyone’s pay.
Would you check on your friends to see if they’re earning
more money than you? For that matter, would you look up
their pay just out of simple curiosity, knowing that you would
never do anything with the information or share it with
anyone else? Why or why not? People working at the
Revenue Canada tax department were caught just curiously
looking up the reported incomes of movie stars and other
high-profile public figures. Is this acceptable? Why or why
not?