McGraw-Hill/Irwin McGraw-Hill/Irwin

2005 The McGraw-Hill Companies, 2005 The McGraw-Hill Companies, All rights reserved All rights reserved

CHAPTER 3

DATABASES AND DATA WAREHOUSES

McGraw-Hill/Irwin

2005 The McGraw-Hill Companies, All rights reserved

OPENING CASE STUDY

Chrysler Spins a Competitive Advantage with Supply Chain Management Software Chapter 2 supply chain management is a key business initiative Chryslers SCM is called SPIN, a Web-based system

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OPENING CASE STUDY

Behind SPIN are powerful databases Databases store a wealth of information
Inventory Work-in-progress Supplier information Recall notices Customer purchases

This chapter databases and data warehouses

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STUDENT LEARNING OUTCOMES

1. Describe business intelligence and its role 2. Compare databases and data warehouses by OLTP and OLAP 3. List/describe key characteristics of a relational database 4. Define 5 software components of a DBMS

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STUDENT LEARNING OUTCOMES

5. List/describe key characteristics of a data warehouse 6. Define 4 major types of data-mining tools 7. List key considerations in managing information as a resource

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INTRODUCTION

Organizations need business intelligence Business intelligence (BI) knowledge about your customers, competitors, business partners, competitive environment, and internal operations to make effective, important, and strategic business decisions

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INTRODUCTION

IT tools help process information to create business intelligence according to:

OLTP OLAP

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INTRODUCTION

Online transaction processing (OLTP) the gathering of input information, processing that information, and updating existing information to reflect the gathered and processed information
Databases support OLTP Operational database databases that support OLTP
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INTRODUCTION

Online analytical processing (OLAP) the manipulation of information to support decision making
Databases can support some OLAP Data warehouses only support OLAP, not OLTP Data warehouses are special forms of databases that support decision making

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INTRODUCTION

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THE RELATIONAL DATABASE MODEL

There are many types of databases The relational database model is the most popular Relational database uses a series of logically related two-dimensional tables or files to store information in the form of a database
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Databases Are

Collections of information Created with logical structures With logical ties within the information With built-in integrity constraints

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Databases Collections of Information

Databases have many tables Consider Solomon Enterprises that provides concrete to home and commercial builders. Tables or files include:
Order Customer Concrete Type Employee Truck
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Databases Collections of Information

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Databases Created with Logical Structures

In databases, the row number is irrelevant Not true in spreadsheet software In databases, column names are very important. Column names are created in the data dictionary Data dictionary contains the logical structure of the information in a database
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Databases With Logical Ties Within the Information

Logical ties must exist between the tables or files in a database Logical ties are created with primary and foreign keys Primary key field (or group of fields in some cases) that uniquely describes each record Can you find primary keys in Figure 3.1 on page 129?
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Databases With Logical Ties Within the Information

Foreign key primary key of one file that appears in another file Foreign keys help you create logical ties within the information in a database

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Databases With Logical Ties Within the Information

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Databases With Built-In Integrity Constraints

Integrity constraints rules that help ensure the quality of the information Examples
Primary keys must be unique Foreign keys must be present Sales price cannot be negative Phone number must have area code
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DATABASE MANAGEMENT SYSTEM TOOLS

Database management system (DBMS) helps you specify the logical organization for a databases and access and use the information within a database
Word processing software = document Spreadsheet software = workbook DBMS software = database

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DATABASE MANAGEMENT SYSTEM TOOLS

5 software components:
1. 2. 3. 4. 5. DBMS engine Data definition subsystem Data manipulation subsystem Application generation subsystem Data administration subsystem

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DATABASE MANAGEMENT SYSTEM TOOLS

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DBMS Engine

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 DBMS engine separates the logical from the physical
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DBMS Engine

Physical view how information is physically arranged, stored, and accessed on some type of storage device Logical view how you as a knowledge worker need to arrange and access information With a database, you only concern yourself with your logical view
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Data Definition Subsystem

Data definition subsystem helps you create and maintain the data dictionary and define the structure of the files in a database You must create a data dictionary before entering information into a database Module J covers this for Microsoft Access

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Data Manipulation Subsystem

Data manipulation subsystem helps you add, change, and delete information This is your primary DBMS interface as you work with a database
Views Report generators QBE tools SQL
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Views

View allows you to see the contents of a database file

Make whatever changes you want Perform simple sorting Query to find the location of information Looks similar to a workbook with no row numbers

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Views

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Report Generators

Report generator helps you quickly define formats of reports and what information you want to see in a report You can save report formats and generate reports at any time with up-to-date information

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Report Generators

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Report Generators

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QBE Tools

Query-by-example (QBE) tool helps you graphically design the answer to a question What driver most often delivers concrete to Triple A Homes?

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QBE Tools

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SQL

Structured query language (SQL) standardized fourth-generation language found in most DBMSs Performs the same task as a QBE tool
But uses a sentence structure instead of pointand-click interface

SQL is used mostly by IT people

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Application Generation Subsystem

Application generation subsystem contains facilities to help you develop transaction-intensive applications
Data entry screen (called forms) Programming languages

Used mostly by IT specialists

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Data Administration Subsystem

Data administration subsystem helps you manage the overall database environment
Backup and recovery Security management Query optimization Concurrency control Change management
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Data Administration Subsystem

Backup and recovery

Periodically back up information Recover a database if a failure occurs

Security management
Who has access to what information Who can perform certain tasks (e.g., add, change, or delete) on information

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Data Administration Subsystem

Query optimization
Restructure physical view of information to optimize response times to queries

Concurrency control
What happens if two people makes changes to the same information at the same time?

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Data Administration Subsystem

Change management
What is the effect of structural changes to a database? What if you add a new column? What happens if you delete a column? What happens if you change a columns attributes?

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DATA WAREHOUSES AND DATA MINING

Data warehouses support OLAP and decision making Data warehouses do not support OLTP Data-mining tools are the tools you use to work with a data warehouse
DBMS software = database Data-mining tools = data warehouse
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What Is a Data Warehouse?

Data warehouse logical collection of information gathered from operational databases used to create business intelligence that supports business analysis activities and decision-making tasks

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What Is a Data Warehouse?

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What Is a Data Warehouse?

Multidimensional Rows and columns Also layers Many times called hypercubes What are the dimensions in Figure 3.8 on page 142?

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What Are Data-Mining Tools?

Data-mining tools software tools that you use to query information in a data warehouse
Query-and-reporting tools Intelligence agents Multidimensional analysis tools Statistical tools

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What Are Data-Mining Tools?

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Query-And-Reporting Tools

Query-and-reporting tools similar to QBE tools, SQL, and report generators in the typical database environment

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Intelligent Agents

Use various artificial intelligence tools such as neural networks and fuzzy logic to form the basis for information discovery and building business intelligence Help you find hidden patterns in information Chapter 4 focuses more on these

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Multidimensional Analysis Tools

Multidimensional analysis (MDA) tools slice-and-dice techniques that allow you to view multidimensional information from different perspectives
Bring new layers to the front Reorganize rows and columns

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Statistical Tools

Help you apply various mathematical models to the information stored in a data warehouse to discover new information
Regression Analysis of variance And so on

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Data Marts

Data warehouses can support all of an organizations information Data marts have subsets of an organizationwide data warehouse Data mart subset of a data warehouse in which only a focused portion of the data warehouse information is kept
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Data Marts

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Data Mining as a Career Opportunity

Knowledge of data mining can be a substantial career opportunity for you

Query and Analysis and Enterprise Analytic Tools (Business Objects) Business Intelligence and Information Access tools (SAS) Many in Cognos (the data warehouse leader) PowerAnalyzer (Informatica)
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Considerations in Using a Data Warehouse

Do you need a data warehouse?
Perhaps database OLAP is sufficient

Do all employees need the entire data warehouse?

If no, build smaller data marts

How up-to-date must the information be? What data-mining tools do you need?
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MANAGING THE INFORMATION RESOURCE

Information is an organizational resource Just like people, capital, and equipment It must be managed effectively

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MANAGING THE INFORMATION RESOURCE

Who should oversee your organizations information resource?
Chief information officer (CIO) oversees an organizations information resource Data administration plans for, oversees the development of, and monitors the information resource Database administration technical and operational aspects of managing information
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MANAGING THE INFORMATION RESOURCE

Is information ownership a consideration?
If you create information, you own it You will also share it with others Because you own it, you are responsible for its quality

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MANAGING THE INFORMATION RESOURCE

How clean must your information be?
Duplicate information (records) must be eliminated Inaccurate information must be corrected Information forms the basis of business intelligence If your business intelligence is bad, you will make poor decisions
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CAN YOU

1. Describe business intelligence and its role 2. Compare databases and data warehouses by OLTP and OLAP 3. List/describe key characteristics of a relational database 4. Define 5 software components of a DBMS

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CAN YOU

5. List/describe key characteristics of a data warehouse 6. Define 4 major types of data-mining tools 7. List key considerations in managing information as a resource

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CHAPTER 3

End of Chapter 3

McGraw-Hill/Irwin

2005 The McGraw-Hill Companies, All rights reserved