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Module 3: Data and Business Intelligence

Define database and database management system.

Database- is a collection of related data that is stored in a central location or in multiple

locations.

Database management system-is a software for creating, storing, maintaining, and

accessing database files.

Explain the logical database design and the relational database model.

Before designing a database, one needs to know the two ways information is viewed in a
database. The physical view involves how data is stored and retrieved from storage media,
such as hard disk, magnetic tape, or CDs. The logical view involves how information
appears to users and how it can be organized and retrieved.

The first step in database design is defining a data model, which determines how data is
created, represented, organized, and maintained.

Three components of data model

• Data structure- describes how data is organized and the relationship among records
• Operations-describes methods, calculations and so forth that can be performed on
data, such as updating and querying data
• Integrity rules-defines the boundaries of a database such as maximum and
minimum values allowed for a field, constraints, and access methods

A. The Relational Model

A relational model- uses a two dimensional table of rows and columns of data.

• Rows are records (also called tuples)

• Columns are fields ( i.e. attributes)
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Define the five components of a database management system.

A. Database Engine

A database engine is the heart of DBMS software, is responsible for data storage,
manipulation, and retrieval.

It converts logical requests from users into their physical equivalent (i.e. reports) by
interacting with other components of the DBMS.

Because more than one logical view of data is possible, the database engine can retrieve
and return data to users in many different ways.

B. Data Definition

The database definition components used to create and maintain the data dictionary and
define database file structure

Makes changes to a databases structure

C. Data manipulation

The database manipulation components used to add, delete, modify and retrieve records
from a database

Uses a query language, such as Structured Query Language (SQL)

D. Application Generation

The application generation component used to design elements of an application using a

database

Used by IT professionals and database administrators

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E. Data Administration

The data administration component used for tasks such ad backup and recovery, security
and change management

Used to determine who has permission to perform certain functions, summarized as

create, read, update and delete (CRUD).

Summarize three recent trends in database design and use.

Recent trends in database in database design and use include data-driven Web sites
,natural language processing, distributed database and objects- oriented database

A. Data- Driven Web sites

A data-driven Web sites act as an interface to database

•Retrieve data and allow users to enter data in the database

Improve access to information

•Reduce support and overhead to maintain static Web site

• Give users current information from a variety of data sources.

B. Distributed Database

• Stores data on multiple servers throughout an organization

• Several advantage

-Design better reflects the firm’s structure

-Local data storage reduces response time

-Minimize effects of computer failure

- Cost advantage

-Not limited by a physical location of the data

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Three approaches to setting up a DDBMS

•Fragmentation- addresses how tables and divided among multiple location

• Replication- each site stores a copy of the data in the organization’s database

•Allocation-combines fragmentation and replication.

C. Object- Oriented Database

Data and their relationships are contained in a single object. An object consists of
attributes and methods that can be performed on the object’s data

• Encapsulation- grouping objects along with their attributes and methods into a class (
i.e Grouping related items into a single unit)

• Inheritance-new objects can be created faster and more easily by entering new data in
attributes

Four major components and functions of a data warehouse and their use for business

A date warehouse is a collection of data from a variety of sources.

• Support decision-making applications

• Generate business intelligence

Called hyper cubes because they store multidimensional data

Characteristics of in a data warehouse

•Subject oriented-focus on specific area

•Comes from a variety of sources

•Categorized based on time

•Captures aggregated data

• Used for analytical purposes

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A. Input

A variety of data sources provide the input for a data warehouse to perform analysis and
generate reports. These sources include:

• External data sources- database and transaction files

•Enterprise resources planning (ERP)

• Customer relationship management (CRM) systems

B. ETL( Extraction, transformation and loading)

• Processes used in a data warehouse

-Extraction data from a variety of sources

- Transformation processing to make sure data fits operational needs

- Loading into the end target ( database or data warehouse )

C. Storage

Collection information is organized in a data warehouse such as :

•Raw data- information in its original form

• Summary data-give users subtotals of various categories

• Metadata- information about data’s content, quality, condition, origin and other
characteristics

D. Output

The databases discussed so far support online transaction processing to generate such
as the following:

• Which product generated the highest sale last month?

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• Which region generated low sale last month?

• Which salespersons increased sale by more than 30 percent last quarter?

Online Analytical Processing ( OLAP)

Uses multiple sources of information and provides multidimensional analysis. Generate

business intelligence.

Data-Mining Analysis

Data-mining analysis is used to discover patterns and relationships. Analyse large

amounts of historical data quickly. Assist management in marketing well- informed
business decisions. Manage high demand for information from many users with different
needs and decision-making styles.

Data Marts

Smaller version of a data warehouse, used by a single department or function.

Advantages over data warehouse

• Faster access data owing to their smaller size

• Improved response time for users

• Easier to create because of their size and simplicity

• Less expensive

•Effective targeting of users

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Business Analytics

Business analytics uses data and statistical methods to gain insight into the data and
provides decision makers with information to act on

There are several BA methods. The three popular one are descriptive, predictive and
prescriptive analytics. Descriptive analytics reviews past events, analyse the data, and
provides a report indicating , what happened in a given period of time and how to prepare
for the future. Thus, it is reactive strategy. Predictive analytics, it prepares decision makers
for future events. Prescriptive analytics goes beyond descriptive and predictive analytics by
recommending a course of action that decision makers should follow showing the likely
outcome of each decision.

The Big Data Era

Big data is a data so voluminous that conventional computing methods are unable to
efficiently process and manage it.

Five dimensions of big data .

• Volume

• Variety

• Velocity

•Veracity

• Value

Database Marketing

Database marketing is defined as using the organization’s database of customers and

potential customers to promote products or services.
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The main goal of a successful database marketing campaign is to use the information
within the database to implement marketing strategies that eventually increase profits and
enhance competitiveness of the organization in the marketplace.

Two popular Business Intelligence and Visualization Platforms

Tableau is a data visualization tool used for generating business intelligence. It used to
analyse for generating trends using graphs and charts

Power BI from Microsoft is a platform that allows user to analyse and visualize data from
different data and formats.

Module 4: Personal, legal, Ethical and organizational Issues.

Privacy issues

-Employers search social networking sites for background information on applicants, such
as Facebook or Instagram

-Spamming presents serious privacy issues.

Censorship

Two types of information available on the Web.

1.Public information- refers to the information posted by an organization or public agency.

• Censored for the public policy reasons

• Censored if the content is deemed offensive to a political, religious, or cultural
group
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2.Private information- refers to the information posted by a person.

• Uncensored because of constitutional freedom of expression

• Restricting access to the Web.

• Parents use programs such as Cyber Patrol, CYBER Sitter, Net Nanny, and Safe Surf
to prevent children’s access to Web sites.

• Intellectual property protection involve copyright, trademarks, trade secrets and patents

• Information technology has created many jobs

• Information technology and the internet have created a digital device between the
information rich and information poor

Green computing- promotes a sustainable environment and consumes the least amount
of energy

• Involves design, manufacture, use, and disposal, of computers, servers and

computing devices
• Requires cooperation of both private and public sectors.