Chapter 3
Databases and
Data Warehouses
Building Business
Intelligence
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Management Information Systems
for the Information Age
Presentation Overview
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Business Intelligence
The Relational Database Model
Database Management System Tools
Data Warehouses and Data Mining
Managing The Information Resource In An
Organization
Management Information Systems
for the Information Age
Opening Case Study
High Tech Battles High School Truancy

Organizations need databases (and data
warehouses) for organizing and managing
information.

Why are the implementation of security
and privacy measures difficult?
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Management Information Systems
for the Information Age
Introduction
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Databases and data warehouses are
methods for organizing and managing
information and business intelligence.
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Database management systems and data
mining tools are IT tools you use to work
with information and business intelligence.
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Management Information Systems
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Business Intelligence

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Business intelligence - is
knowledge about your:
 Customers
 Competitors
 Partners
 Competitive environment
 Internal operations
Management Information Systems
for the Information Age
Business Intelligence
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Management Information Systems
for the Information Age
Business Intelligence

Two types of information processing include:
1.
Online transaction processing (OLTP) - the
gathering of input information, processing that
information, and updating existing information to
reflect the gathered and processed information.
•
2.
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Operational databases - databases that support OLTP.
Online analytical processing (OLAP) - the
manipulation of information to support decision
making.
Management Information Systems
for the Information Age
Business Intelligence
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A data warehouse is a special form of a
database that contains information
gathered from many operational
databases for the purpose of supporting
decision-making tasks.
Management Information Systems
for the Information Age
The Relational Database
Model
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Database - a collection of information that you organize
and access according to the logical structure of that
information.
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Relational database model - uses a series of logically
related two-dimensional tables or files to store
information in the form of a database.
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Relation - describes each two-dimensional table or file
in the relational model.
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Management Information Systems
for the Information Age
The Relational Database
Model

Relational databases are composed of
two parts:
1.
2.
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Information – stored in a series of twodimensional tables, files, or relations.
Logical structure of the information.
Management Information Systems
for the Information Age
The Relational Database Model
Collections of Information
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Management Information Systems
for the Information Age
The Relational Database
Model
Created with Logical Structures
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When you create a database, you first
create the data dictionary.
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Data dictionary - contains the logical
structure for the information.
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Management Information Systems
for the Information Age
The Relational Database Model
Created with Logical Structures
Part Number is the primary
key because of the key
icon beside it.
For Percentage Markup, we
defined its Format as
“Percent” and its number
of decimal places as 2.
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Management Information Systems
for the Information Age
The Relational Database
Model
With Logical Ties Among the Information
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Primary key - a field (or group of fields in
some cases) that uniquely describes each
record.
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Foreign key - a primary key of one file
that appears in another file.
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Management Information Systems
for the Information Age
The Relational Database Model
With Logical Ties Among the Information
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Management Information Systems
for the Information Age
The Relational Database
Model
With Built-In Integrity Constraints
Team Work

Integrity
constraints – rules
that help ensure the
quality of the
information.
Primary Keys,
Foreign Keys, and
Integrity Constraints
(p. 133)
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Management Information Systems
for the Information Age
Database Management
System Tools

Database management system (DBMS) – helps you
specify the logical organization for a database and
access and use the information within a database.
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A DBMS contains the following five important software
components:
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DBMS engine
Data definition subsystem
Data manipulation subsystem
Application generation subsystem
Data administration subsystem
Management Information Systems
for the Information Age
Database Management
System Tools
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Management Information Systems
for the Information Age
Database Management
System Tools
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DBMS engine - accepts logical requests from the
various other DBMS subsystems, converts them into
their physical equivalent, and actually accesses the
database and data dictionary as they exist on a storage
device.
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Physical view - deals with how information is physically
arranged, stored, and accessed on some type of storage
device such as a hard disk.
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Logical view - focuses on how you arrange and access
information to meet your particular business needs.
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Management Information Systems
for the Information Age
DBMS Tools
Data Definition Subsystem

Data definition subsystem - helps you create
and maintain the data dictionary and define the
structure of the files in a database.
(For a great overview on the logical properties of
information review the table on page 136)
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Management Information Systems
for the Information Age
DBMS Tools
Data Manipulation Subsystem

Data manipulation subsystem - helps you add,
change, and delete information in a database
and mine it for valuable information. Tools here
include views, report generators, QBE, and SQL.
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View - allows you to see the contents of a
database file, make whatever changes you want,
perform simple sorting, and query to find the
location of specific information.
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Management Information Systems
for the Information Age
DBMS Tools
Data Manipulation Subsystem
Find information using the
binoculars.
Click here to enter a new
record.
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Management Information Systems
for the Information Age
DBMS Tools
Data Manipulation Subsystem
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Report generator - helps you quickly
define formats of reports and what
information you want to see in a report.
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Management Information Systems
for the Information Age
DBMS Tools
Data Manipulation Subsystem
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By following a series of simple screens, you can
easily create the report below.
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Management Information Systems
for the Information Age
DBMS Tools
Data Manipulation Subsystem
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Query-by-example (QBE) tools - help
you graphically design the answer to a
question.
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Management Information Systems
for the Information Age
DBMS Tools
Data Manipulation Subsystem
The QBE grid
Our selection criteria
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Management Information Systems
for the Information Age
DBMS Tools
Data Manipulation Subsystem
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Structured query language (SQL) - a standardized
fourth-generation query language found in most DBMSs.
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The SQL below creates the same report in Figure 3.7 on
page 139.

SELECT Part.[Part Number], Part.Cost, Employee.[Employee
Name], Employee.[Employee Number]
FROM
Part, Employee
WHERE (((Part.Cost)>10));
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Management Information Systems
for the Information Age
DBMS Tools
Application Generation Subsystem
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Application generation subsystem contains facilities to help you develop
transaction-intensive applications.
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Data entry screens
DBMS-specific programming languages
Commonly used programming languages
Management Information Systems
for the Information Age
DBMS Tools
Data Administration Subsystem
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Data administration
subsystem - a DBMS
helps you manage the
overall database
environment by providing
facilities for backup and
recovery, security
management, query
optimization, concurrency
control, and change
management.
On Your Own
DBMS Support
OLTP, OLAP, and
Information Management
(p. 142)
Management Information Systems
for the Information Age
DBMS Tools
Data Administration Subsystem
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Backup and recovery facilities:
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
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Periodically back up information contained in a
database.
Restart or recover a database and its information in
case of a failure.
Security management facilities - control who has
access to what information and what type of
access those people have.
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Management Information Systems
for the Information Age
DBMS Tools
Data Administration Subsystem

Query optimization facilities - take queries from users
and restructure them to minimize response times.
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Reorganization facilities - continually maintain statistics
concerning how the DBMS engine physically accesses
information.
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Concurrency control facilities - ensure the validity of
database updates when multiple users attempt to access
and change the same information.
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Management Information Systems
for the Information Age
Data Warehouses and
Data Mining
What Is a Data Warehouse?

Data warehouse - a logical collection of
information – gathered from many different
operational databases – used to create
business intelligence that supports
business analysis activities and decisionmaking tasks.
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Management Information Systems
for the Information Age
Data Warehouses and
Data Mining
What Is a Data Warehouse?
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Management Information Systems
for the Information Age
Data Warehouses and
Data Mining
What Is a Data Warehouse?

Data warehouses are not transactionoriented.
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Data warehouses support online analytical
processing (OLAP).
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Management Information Systems
for the Information Age
Data Warehouses and
Data Mining
What Are Data Mining Tools?

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Data mining tools - software tools you use to query
information in a data warehouse. These tools
include:
 Query-and-reporting tools - similar to QBE tools,
SQL, and report generators in the typical database
environment.
 Intelligent agents – use various artificial
intelligence tools to form the basis of information
discovery and building business intelligence in
OLAP.
Management Information Systems
for the Information Age
Data Warehouses and
Data Mining
What Are Data Mining Tools?

Data mining tools continued
 Multidimensional analysis (MDA) tools slice-and-dice techniques that allow you to
view multidimensional information from
different perspectives.
 Statistical tools – help you apply various
mathematical models to the information
stored in a data warehouse to discover new
information.
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Management Information Systems
for the Information Age
Data Warehouses and
Data Mining
What Are Data Mining Tools?
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Management Information Systems
for the Information Age
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.
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Management Information Systems
for the Information Age
Data Warehouses and
Data Mining
Important Considerations
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Do you need a data warehouse?
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Do all your employees need an
entire data warehouse?
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How up-to-date must the
information be?
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What data mining tools do you
need?
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Management Information Systems
for the Information Age
Team Work
How Up-to-Date
Should Data
Warehouse
Information Be?
(p. 149)
MANAGING THE
INFORMATION RESOURCE
Who Should Oversee the Organization’s
Information?

Chief information officer (CIO) - responsible for
overseeing an organization’s information resource.
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Data administration - plans for, oversees the
development of, and monitors the information resource.
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Database administration - responsible for the more
technical and operational aspects of managing the
information contained in organizational databases.
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Management Information Systems
for the Information Age
MANAGING THE
INFORMATION RESOURCE
How Will Changes in Technology Affect
Organizing and Managing Information?

As new technologies become available, you
should ask yourself whether those technologies
will help you organize and manage your
information better.

One of the greatest technological changes that
will occur over the coming years is a
convergence of different tools that will help you
better organize and manage information.
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Management Information Systems
for the Information Age
MANAGING THE
INFORMATION RESOURCE
Is Information Ownership a Consideration?

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Information ownership is
a key consideration in
today’s information-based
business environment.
Ownership refers to who
is responsible for
information quality.
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On Your Own
CRUD – Defining
Information Ownership
(p. 151)
Management Information Systems
for the Information Age
MANAGING THE
INFORMATION RESOURCE
What Are the Ethics Involved in
Managing and Organizing Information?

Databases, data warehouses, DBMSs, and data
mining tools make it possible for people to easily
access all kinds of organizational information.

How does an organization safeguard against the
unethical use of information within the
organization?
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Management Information Systems
for the Information Age
Closing Case Study One
We’ve Got OLTP Covered; Let’s Go on to
OLAP
 What is the single most important factor
that hinders all organizations in general
from providing good online analytical
processing (OLAP) support?

Why is it so much easier for organizations
to provide good online transaction
processing (OLTP) support?
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Management Information Systems
for the Information Age
Closing Case Study Two
Mining Dining Data

Consider the issue of timely information
with respect to the businesses discussed
in the case.

Which of the businesses must have the
most up-to-date information in its data
warehouse?
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Management Information Systems
for the Information Age
Summary
Student Learning Outcomes
1.
2.
3.
4.
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Describe business intelligence and its role in
an organization.
Differentiate between databases and data
warehouses with respect to their focus on
online transaction processing and online
analytical processing.
List and describe the key characteristics of a
relational database.
Define the five software components of a
database management system.
Management Information Systems
for the Information Age
Summary
Student Learning Outcomes
5.
6.
7.
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List and describe the key characteristics
of a data warehouse.
Define the four major types of data
mining tools in a data warehouse
environment.
List key considerations in managing the
information resource in an organization.
Management Information Systems
for the Information Age
Summary
Assignments & Exercises
1.
2.
3.
4.
5.
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Finding “hacked” databases
Defining queries for a video rental store
Creating a query
Career opportunities in your major
Salaries for database administrators
Management Information Systems
for the Information Age
Visit the Web to Learn More
www.mhhe.com/haag
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Financial aid resources
Libraries
Consumer information
Demographics
Real estate
Data warehouses and data mining tools
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Management Information Systems
for the Information Age