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Ch 3. Database systems, data centers, and business intelligence

  • Database: is an organised collection of data

  • Database management system (DBMS):

    • Group of programs that manipulate the database

    • Provide an interface between the database and its users and application programs

  • Database administer (DBA): skilled IS professional who directs all activities related to an organisations database

    • An organisation could not complete business activities successfully without data & the ability to process data. Data consists of raw facts, must be organised in a meaningful way

  • Hierarchy of data:

    1. Bit (binary digit): circuit that is either on/off

    2. Byte: made up of 8 bits

    3. Character: building block of info

    4. Field : name/number/combo of characters that describes an aspect of a business object or activity

    5. Record: collection of related data fields

    6. File: collection of related data records

  • Database: collection of integrated and related files

  • Entity: General class of people, places, or things (objects) for which data is collected, stored, and maintained

  • Attribute: Characteristic of an entity

  • Data item: Specific value of an attribute

    • Key field is the employee number. Attribute includes everything else.

  • Key: field or set of fields in a record that is used to identify the record

  • Primary key: field or set of fields that uniquely identifies the record

Data Table

Data Table Explained

  • Approaches to Data Management:

    • Traditional: each distinct operational system used data files dedicated to that system

    • Database approach: pool of related data is shared by multiple application programs

  • Some advantages of Database Approach:

    • Improved strategic use of corporate data

    • Reduced data redundancy

    • Easier modification and updating

    • Data and program independence

    • Better access to data and info: (users give simple commands)

    • Better protection of data: (security codes)

  • Disadvantages of Database Approach:

    • More complex

    • Difficult to recover from a failure

    • More expensive

  • When building a database, an organisation must consider:

    • Content: (what is the data collected?)

    • Access: (what data should be provided to which users and when?)

    • Logical structure: (how should data be arranged to make sense?)

    • Physical organisation: (where should data be physically located?)

  • Data Center: Is a climate controlled building or set of buildings that house database servers and the systems that deliver mission-critical information and services.

    • Traditional data centres: Consist of warehouses filled with row upon row of server racks and powerful cooling systems

  • Data Modelling: Building a database requires two types of designs:

    • Logical design: abstract model of how data should be structured and arranged to meet an organisation’s information needs

    • Physical design: starts from the logical database and fine-tunes it for performance and cost considerations

  • Planned data redundancy: Done to improve system performance to that user reports or queries can be created more quickly

  • Data model: is a diagram of data entities and their relationships

    • Enterprise data modelling: investigates the general data and information needs of an organisation at the strategic level

  • Entity-relationship (ER) diagrams: data models that use basic graphical symbols to show the organisation of and relationships between data

  • An entity-relationship (ER) diagram for a customer order database: development of ER diagrams helps ensure that the logical structure of application programs is consistent with the data relationships in the database

  • The Relational Database Model: Relational Model:

    • describes data using a standard tabular format, each row of a table represents a data entity (record), columns of the table represent attributes (fields).

    • Domain: allowable values for data attributes In the relational model, all data elements are placed in two-dimensional tables, or relations. As long as they share at least one common element, these relations can be linked to output useful information Manipulating data

    • Selecting: eliminates rows according to certain criteria

    • Projecting: eliminates column in a table

    • Joining: combines two or more tables

    • Linking: manipulating two or more tables that share at least one common data attribute

      • When looking for information, one needs three tables: project, department, and manager. Every table leads to another, the information is all connected.

Project Table

  • Database Management Systems: Creating and implementing the right database system: (ensure that the database will support both business activities and goals)Capabilities and types of database systems vary considerably

  • Database types:

    • Flat file: simple database program whose records have no relationship to one another

    • Single user: only one person can use the database at a time (ex: access, filemaker pro, and infopath)

    • Multiple users: allows dozens or hundreds of people to access the same database system at the same time (ex: oracle, sybase, and IBM)

  • Schema: used to describe the entire database

  • DBMS: can reference a schema to find where to access the requested data in relation to another piece of data

  • Data definition language (DDL): collection of instructions and commands used to define and describe data and relationships in a specific database. Allows database’s creator to describe data and relationships that are to be contained in the schema

  • Data dictionary: detailed description of all data used in the database

    • Storing and retrieving data: when an application program needs data, it requests it through the DBMS

  • Concurrency control: method of dealing with a situation in which two or more users or applications need to access the same record at the same time

    • Logical & physical access paths: Manipulating data and generating reports

  • Data manipulation language (DML): commands that manipulate the data in a database

  • Structured query language (SQL) standard query language for relational databases

    • Once a database has been set up and loaded with data: it can produce reports, documents, and other outputs

  • Database administration (DBA): works with users to decide the content of the database

    • Works with programmers as they build applications to ensure that their programs comply with database management system standards and conventions

  • Data administrator: Responsible for defining and implementing consistent principles for a variety of data issues

    • Popular database management systems:

Hierarchy of Data

  • DBMSs can act as front-end or back-end applications:

    • Front-end applications interact directly with people

    • Back-end applications interact with other programs or applications

  • Linking database to the internet:

    • Semantic web: developing a seamless integration of traditional databases with the internet

    • Provides metadata with all web content using technology called the resource description framework (RDF)

  • Data warehouse: database that holds business information from many sources in the enterprise

  • Data mart: subset of a data warehouse

  • Data mining: information-analysis tool involves the automated discovery of patterns and relationships in a data warehouse

    • Elements of Data Warehouse:


Data Warehouse

  • Predictive analysis: form of data mining that combines historical data with assumptions about future conditions to predict outcomes of events

  • Used by retailers to upgrade occasional customers into frequent purchasers

  • Software can be used to analyse a company’s customer list an a year’s worth of sales data to find new market segments

  • Common data mining applications:

    • customer churn

    • direct marketing

    • fraud detection

    • market basket analysis

    • market segmentation

    • trend analysis

  • Business intelligence:

    • Involves gathering enough of the right information in a timely manner and usable form and analysing it to have a positive impact on business strategy, tactics, or operations

    • Competitive intelligence: limited to information about competitors and the ways that knowledge affects strategy, tactics, and operations

    • Counterintelligence: steps organisation takes to protect information sought by “hostile” intelligence gatherers

    • Data loss prevention (DLP):

    • Refers to systems designed with government to lock down data within an organisations

    • Powerful tool for counterintelligence

    • A necessity in complying with government regulations that require companies to safeguard private customer data

  • Distributed database:

    • Database in which the data may be spread across several smaller databases connected via tele-communications devices

    • Gives corporations more flexibility in how databases are organised and used

  • Replicated database:

    • Holds a duplicate set of frequently used data

    • Telecommunications systems link the computers so that users at all locations can access the same distributed database, no matter where the data is actually stored

  • Online analytical processing (OLAP): software that allows users to explore data from a number of different perspectives

    • Provides top-down, query-driven data analysis

    • Requires repetitive testing of user-originated theories

    • Requires a great deal of human ingenuity and interaction with the database to find information

  • Object-oriented database:

    • Stores both data and its processing instructions

    • Uses an object-oriented database management system (OODBMS) to provide a user interface and connections to other programs

  • Object-relational database management system (ORDBMS):

    • Provides the ability for third parties to add new data types and operations to the database

  • Visual databases: can be stored in some object-relational databases pr special purpose database systems

  • Virtual database systems: allow different databases to work together as a unified database systems

  • **Spatial data technology:**using database to store and access data according to the locations it describes

Ch 3. Database systems, data centers, and business intelligence

  • Database: is an organised collection of data

  • Database management system (DBMS):

    • Group of programs that manipulate the database

    • Provide an interface between the database and its users and application programs

  • Database administer (DBA): skilled IS professional who directs all activities related to an organisations database

    • An organisation could not complete business activities successfully without data & the ability to process data. Data consists of raw facts, must be organised in a meaningful way

  • Hierarchy of data:

    1. Bit (binary digit): circuit that is either on/off

    2. Byte: made up of 8 bits

    3. Character: building block of info

    4. Field : name/number/combo of characters that describes an aspect of a business object or activity

    5. Record: collection of related data fields

    6. File: collection of related data records

  • Database: collection of integrated and related files

  • Entity: General class of people, places, or things (objects) for which data is collected, stored, and maintained

  • Attribute: Characteristic of an entity

  • Data item: Specific value of an attribute

    • Key field is the employee number. Attribute includes everything else.

  • Key: field or set of fields in a record that is used to identify the record

  • Primary key: field or set of fields that uniquely identifies the record

Data Table

Data Table Explained

  • Approaches to Data Management:

    • Traditional: each distinct operational system used data files dedicated to that system

    • Database approach: pool of related data is shared by multiple application programs

  • Some advantages of Database Approach:

    • Improved strategic use of corporate data

    • Reduced data redundancy

    • Easier modification and updating

    • Data and program independence

    • Better access to data and info: (users give simple commands)

    • Better protection of data: (security codes)

  • Disadvantages of Database Approach:

    • More complex

    • Difficult to recover from a failure

    • More expensive

  • When building a database, an organisation must consider:

    • Content: (what is the data collected?)

    • Access: (what data should be provided to which users and when?)

    • Logical structure: (how should data be arranged to make sense?)

    • Physical organisation: (where should data be physically located?)

  • Data Center: Is a climate controlled building or set of buildings that house database servers and the systems that deliver mission-critical information and services.

    • Traditional data centres: Consist of warehouses filled with row upon row of server racks and powerful cooling systems

  • Data Modelling: Building a database requires two types of designs:

    • Logical design: abstract model of how data should be structured and arranged to meet an organisation’s information needs

    • Physical design: starts from the logical database and fine-tunes it for performance and cost considerations

  • Planned data redundancy: Done to improve system performance to that user reports or queries can be created more quickly

  • Data model: is a diagram of data entities and their relationships

    • Enterprise data modelling: investigates the general data and information needs of an organisation at the strategic level

  • Entity-relationship (ER) diagrams: data models that use basic graphical symbols to show the organisation of and relationships between data

  • An entity-relationship (ER) diagram for a customer order database: development of ER diagrams helps ensure that the logical structure of application programs is consistent with the data relationships in the database

  • The Relational Database Model: Relational Model:

    • describes data using a standard tabular format, each row of a table represents a data entity (record), columns of the table represent attributes (fields).

    • Domain: allowable values for data attributes In the relational model, all data elements are placed in two-dimensional tables, or relations. As long as they share at least one common element, these relations can be linked to output useful information Manipulating data

    • Selecting: eliminates rows according to certain criteria

    • Projecting: eliminates column in a table

    • Joining: combines two or more tables

    • Linking: manipulating two or more tables that share at least one common data attribute

      • When looking for information, one needs three tables: project, department, and manager. Every table leads to another, the information is all connected.

Project Table

  • Database Management Systems: Creating and implementing the right database system: (ensure that the database will support both business activities and goals)Capabilities and types of database systems vary considerably

  • Database types:

    • Flat file: simple database program whose records have no relationship to one another

    • Single user: only one person can use the database at a time (ex: access, filemaker pro, and infopath)

    • Multiple users: allows dozens or hundreds of people to access the same database system at the same time (ex: oracle, sybase, and IBM)

  • Schema: used to describe the entire database

  • DBMS: can reference a schema to find where to access the requested data in relation to another piece of data

  • Data definition language (DDL): collection of instructions and commands used to define and describe data and relationships in a specific database. Allows database’s creator to describe data and relationships that are to be contained in the schema

  • Data dictionary: detailed description of all data used in the database

    • Storing and retrieving data: when an application program needs data, it requests it through the DBMS

  • Concurrency control: method of dealing with a situation in which two or more users or applications need to access the same record at the same time

    • Logical & physical access paths: Manipulating data and generating reports

  • Data manipulation language (DML): commands that manipulate the data in a database

  • Structured query language (SQL) standard query language for relational databases

    • Once a database has been set up and loaded with data: it can produce reports, documents, and other outputs

  • Database administration (DBA): works with users to decide the content of the database

    • Works with programmers as they build applications to ensure that their programs comply with database management system standards and conventions

  • Data administrator: Responsible for defining and implementing consistent principles for a variety of data issues

    • Popular database management systems:

Hierarchy of Data

  • DBMSs can act as front-end or back-end applications:

    • Front-end applications interact directly with people

    • Back-end applications interact with other programs or applications

  • Linking database to the internet:

    • Semantic web: developing a seamless integration of traditional databases with the internet

    • Provides metadata with all web content using technology called the resource description framework (RDF)

  • Data warehouse: database that holds business information from many sources in the enterprise

  • Data mart: subset of a data warehouse

  • Data mining: information-analysis tool involves the automated discovery of patterns and relationships in a data warehouse

    • Elements of Data Warehouse:


Data Warehouse

  • Predictive analysis: form of data mining that combines historical data with assumptions about future conditions to predict outcomes of events

  • Used by retailers to upgrade occasional customers into frequent purchasers

  • Software can be used to analyse a company’s customer list an a year’s worth of sales data to find new market segments

  • Common data mining applications:

    • customer churn

    • direct marketing

    • fraud detection

    • market basket analysis

    • market segmentation

    • trend analysis

  • Business intelligence:

    • Involves gathering enough of the right information in a timely manner and usable form and analysing it to have a positive impact on business strategy, tactics, or operations

    • Competitive intelligence: limited to information about competitors and the ways that knowledge affects strategy, tactics, and operations

    • Counterintelligence: steps organisation takes to protect information sought by “hostile” intelligence gatherers

    • Data loss prevention (DLP):

    • Refers to systems designed with government to lock down data within an organisations

    • Powerful tool for counterintelligence

    • A necessity in complying with government regulations that require companies to safeguard private customer data

  • Distributed database:

    • Database in which the data may be spread across several smaller databases connected via tele-communications devices

    • Gives corporations more flexibility in how databases are organised and used

  • Replicated database:

    • Holds a duplicate set of frequently used data

    • Telecommunications systems link the computers so that users at all locations can access the same distributed database, no matter where the data is actually stored

  • Online analytical processing (OLAP): software that allows users to explore data from a number of different perspectives

    • Provides top-down, query-driven data analysis

    • Requires repetitive testing of user-originated theories

    • Requires a great deal of human ingenuity and interaction with the database to find information

  • Object-oriented database:

    • Stores both data and its processing instructions

    • Uses an object-oriented database management system (OODBMS) to provide a user interface and connections to other programs

  • Object-relational database management system (ORDBMS):

    • Provides the ability for third parties to add new data types and operations to the database

  • Visual databases: can be stored in some object-relational databases pr special purpose database systems

  • Virtual database systems: allow different databases to work together as a unified database systems

  • **Spatial data technology:**using database to store and access data according to the locations it describes