Business Driven Technology Unit 2 Exploring Business Intelligence Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Unit Two O Chapter Six – Valuing Organizational Information O Chapter Seven – Storing Organizational Information – Databases O Chapter Eight – Accessing Organizational Information – Data Warehouse 8-2 Chapter 8 Accessing Organizational Information—Data Warehouse 8-3 LEARNING OUTCOMES 1. Describe the roles and purposes of data warehouses and data marts in an organization 2. Identify the advantages of using business intelligence to support managerial decision making 8-4 History of Data Warehousing O Data warehouses extend the transformation of data into information O In the 1990’s executives became less concerned with the day-to-day business operations and more concerned with overall business functions O The data warehouse provided the ability to support decision making without disrupting the day-to-day operations 8-5 Data Warehouse Fundamentals O Data warehouse – a logical collection of information – gathered from many different operational databases – that supports business analysis activities and decisionmaking tasks O The primary purpose of a data warehouse is to aggregate information throughout an organization into a single repository for decision-making purposes 8-6 Data Warehouse Fundamentals O Extraction, transformation, and loading (ETL) – a process that extracts information from internal and external databases, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouse O Data mart – contains a subset of data warehouse information 8-7 Data Warehouse Fundamentals 8-8 Multidimensional Analysis and Data Mining O Databases contain information in a series of two-dimensional tables O In a data warehouse and data mart, information is multidimensional, it contains layers of columns and rows O Dimension – a particular attribute of information 8-9 Multidimensional Analysis and Data Mining O Cube – common term for the representation of multidimensional information 8-10 Multidimensional Analysis and Data Mining O Data mining – the process of analyzing data to extract information not offered by the raw data alone O To perform data mining users need data-mining tools O Data-mining tool – uses a variety of techniques to find patterns and relationships in large volumes of information and infers rules that predict future behavior and guide decision making 8-11 Information Cleansing or Scrubbing O An organization must maintain high-quality data in the data warehouse O Information cleansing or scrubbing – A process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information 8-12 Information Cleansing or Scrubbing O Contact information in an operational system 8-13 Information Cleansing or Scrubbing O Standardizing Customer name from Operational Systems 8-14 Information Cleansing or Scrubbing O Information cleansing activities 8-15 Information Cleansing or Scrubbing O Accurate and complete information 8-16 Business Intelligence O Business intelligence – information that people use to support their decision-making efforts O Principle BI enablers include: O Technology O People O Culture 8-17 The Problem: Data Rich, Information Poor O Businesses face a data explosion with digital images, email in-boxes, and broadband connections O The amount of data generated is doubling every year O Some believe it will soon double monthly 8-18 The Solution: Business Intelligence O Improving the quality of business decisions has a direct impact on costs and revenue O BI enables business users to receive data for analysis that is: O Reliable O Consistent O Understandable O Easily manipulated 8-19 The Solution: Business Intelligence BI Can Answer Tough Questions 8-20 Visual Business Intelligence O Informing – Accessing large amounts of data from different management information systems O Infographics – Displays information graphically O Data visualization – Allows users to “see” or visualize data to transform information into a business perspective O Data visualization tools – Sophisticated analysis techniques such as pie charts, controls, instruments, maps, time-series graphs, and more 8-21 LEARNING OUTCOME REVIEW O Now that you have finished the chapter please review the learning outcomes in your text 8-22