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1、5Chapter Foundations of Business Intelligence: Databases and Information ManagementStudent Learning ObjectivesEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementHow does a relational database organize data, and how does it

2、differ from an object-oriented database?What are the principles of a database management system?What are the principal tools and technologies for accessing information from databases to improve business performance and decision making?What is the role of information policy and data administration in

3、 the management of organizational data resources?Why is data quality assurance so important for a business?Student Learning ObjectivesEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementThe Database Approach to Data Manageme

4、ntDatabase: Collection of related files containing records on people, places, or things.Prior to digital databases, business used file cabinets with paper files.Entity:Generalized category representing person, place, thing on which we store and maintain informationE.g., SUPPLIER, PARTAttributes:Spec

5、ific characteristics of each entity:SUPPLIER name, addressPART description, unit price, supplierEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementThe Database Approach to Data ManagementRelational database:Organize data in

6、to two-dimensional tables (relations) with columns and rows.One table for each entity:E.g., (CUSTOMER, SUPPLIER, PART, SALES)Fields (columns) store data representing an attribute. Rows store data for separate records, or tuples.Key field: uniquely identifies each record. Primary key: One field in ea

7、ch tableCannot be duplicatedProvides unique identifier for all information in any rowEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementA Relational Database TableFigure 5-1A relational database organizes data in the form o

8、f two-dimensional tables. Illustrated here is a table for the entity SUPPLIER showing how it represents the entity and its attributes. Supplier_Number is the key field.The Database Approach to Data ManagementEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence:

9、Databases and Information ManagementThe PART TableFigure 5-2Data for the entity PART have their own separate table. Part_Number is the primary key and Supplier_Number is the foreign key, enabling users to find related information from the SUPPLIER table about the supplier for each part.The Database

10、Approach to Data ManagementEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementThe Database Approach to Data ManagementEstablishing relationshipsEntity-relationship diagramUsed to clarify table relationships in a relational

11、databaseRelational database tables may have:One-to-one relationshipOne-to-many relationshipMany-to-many relationshipRequires creating a table (join table, Intersection relation) that links the two tables to join informationEssentials of Management Information SystemsChapter 5 Foundations of Business

12、 Intelligence: Databases and Information ManagementA Simple Entity-Relationship DiagramFigure 5-3This diagram shows the relationship between the entities SUPPLIER and PART.The Database Approach to Data ManagementEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligen

13、ce: Databases and Information ManagementThe Database Approach to Data ManagementNormalizationProcess of streamlining complex groups of data to:Minimize redundant data elements.Minimize awkward many-to-many relationships.Increase stability and flexibility.Referential integrity rulesUsed by relational

14、 databases to ensure that relationships between coupled tables remain consistent.E.g., when one table has a foreign key that points to another table, you may not add a record to the table with foreign key unless there is a corresponding record in the linked table. Essentials of Management Informatio

15、n SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementSample Order ReportFigure 5-4The shaded areas show which data came from the SUPPLIER, LINE_ITEM, and ORDER tables. The database does not maintain data on Extended Price or Order Total because they can be der

16、ived from other data in the tables.The Database Approach to Data ManagementEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementThe Final Database Design with Sample RecordsFigure 5-5The final design of the database for suppl

17、iers, parts, and orders has four tables. The LINE_ITEM table is a join table that eliminates the many-to-many relationship between ORDER and PART.The Database Approach to Data ManagementEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Informat

18、ion ManagementEntity-Relationship Diagram for the Databasewith Four TablesFigure 5-6This diagram shows the relationship between the entities SUPPLIER, ART, LINE_ITEM, and ORDER.The Database Approach to Data ManagementEssentials of Management Information SystemsChapter 5 Foundations of Business Intel

19、ligence: Databases and Information ManagementSpecific type of software for creating, storing, organizing, and accessing data from a database Separates the logical and physical views of the dataLogical view: how end users view dataPhysical view: how data are actually structured and organizedExamples

20、of DBMS: Microsoft Access, DB2, Oracle Database, Microsoft SQL Server, MySQLDBMSDatabase Management SystemsEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementHuman Resources Database with Multiple ViewsFigure 5-7A single hu

21、man resources database provides many different views of data, depending on the information requirements of the user. Illustrated here are two possible views, one of interest to a benefits specialist and one of interest to a member of the companys payroll department.Database Management SystemsEssenti

22、als of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementOperations of a Relational DBMSSelect: Creates a subset of all records meeting stated criteriaJoin: Combines relational tables to present the server with more information than is

23、available from individual tablesProject: Creates a subset consisting of columns in a tablePermits user to create new tables containing only desired informationDatabase Management SystemsEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Informat

24、ion ManagementThe Three Basic Operations of a Relational DBMSFigure 5-8The select, project, and join operations enable data from two different tables to be combined and only selected attributes to be displayed.Database Management SystemsEssentials of Management Information SystemsChapter 5 Foundatio

25、ns of Business Intelligence: Databases and Information ManagementCapabilities of Database Management SystemsData definition capabilities:Specify structure of content of database.Data dictionary:Automated or manual file storing definitions of data elements and their characteristics.Querying and repor

26、ting:Data manipulation languageStructured query language (SQL)Microsoft Access query-building toolsReport generation, e.g., Crystal ReportsDatabase Management SystemsEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementAccess

27、 Data Dictionary FeaturesFigure 5-9Microsoft Access has a rudimentary data dictionary capability that displays information about the size, format, and other characteristics of each field in a database. Displayed here is the information maintained in the SUPPLIER table. The small key icon to the left

28、 of Supplier_Number indicates that it is a key field.Database Management SystemsEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementExample of an SQL QueryFigure 5-10Illustrated here are the SQL statements for a query to sel

29、ect suppliers for parts 137 or 150. They produce a list with the same results as Figure 5-8.Database Management SystemsEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementAn Access QueryFigure 5-11Illustrated here is how the

30、 query in Figure 5-10 would be constructed using Microsoft Access query-building tools. It shows the tables, fields, and selection criteria used for the query.Database Management SystemsEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Informat

31、ion ManagementObject-Oriented DBMS (OODBMS)Stores data and procedures that act on those data as objects to be retrieved and sharedBetter suited for storing graphic objects, drawings, video, than DBMS designed for structuring data onlyUsed to manage multimedia components or Java applets in Web applic

32、ationsRelatively slow compared to relational DBMSObject-relational DBMS: provide capabilities of both typesDatabase Management SystemsEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementUsing Databases to Improve Business Pe

33、rformance and Decision MakingDatabases provide information to help the company run the business more efficiently, and help managers and employees make better decisions.Tools for analyzing, accessing vast quantities of data:Data warehousingMultidimensional data analysisData miningUtilizing Web interf

34、aces to databasesEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementData WarehousesUsing Databases to Improve Business Performance and Decision MakingData warehouse:Database that stores current and historical data that may

35、be of interest to decision makersConsolidates and standardizes data from many systems, operational and transactional databasesData can be accessed but not alteredData mart:Subset of data warehouses that is highly focused and isolated for a specific population of usersEssentials of Management Informa

36、tion SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementComponents of a Data WarehouseFigure 5-12The data warehouse extracts current and historical data from multiple operational systems inside the organization. These data are combined with data from external

37、sources and reorganized into a central database designed for management reporting and analysis. The information directory provides users with information about the data available in the warehouse.Using Databases to Improve Business Performance and Decision MakingEssentials of Management Information

38、SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementInteractive Session: OrganizationsThe IRS Uncovers Tax Fraud with a Data WarehouseUsing Databases to Improve Business Performance and Decision MakingRead the Interactive Session and then discuss the following

39、questions:Why was it so difficult for the IRS to analyze the taxpayer data it had collected?What kind of challenges did the IRS encounter when implementing its Compliance Data Warehouse?How did the CDW improve decision making and operations at the IRS? Are there benefits to taxpayers?Do you think da

40、ta warehouses could be useful in other areas of the federal sector? Which ones? Why or why not?Essentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementBusiness intelligence: tools for consolidating, analyzing, and providing acce

41、ss to large amounts of data to improve decision makingSoftware for database reporting and queryingTools for multidimensional data analysis (online analytical processing)Data miningE.g., Harrahs Entertainment gathers and analyzes customer data to create gambling profile and identify most profitable c

42、ustomersBusiness Intelligence, Multidimensional Data Analysis, and Data MiningUsing Databases to Improve Business Performance and Decision MakingEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementUsing Databases to Improve

43、Business Performance and Decision MakingFigure 5-13A series of analytical tools works with data stored in databases to find patterns and insights for helping managers and employees make better decisions to improve organizational performance.Business IntelligenceEssentials of Management Information S

44、ystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementSupports multidimensional data analysis, enabling users to view the same data in different ways using multiple dimensionsEach aspect of informationproduct, pricing, cost, region, or time periodrepresents a diff

45、erent dimensionE.g., comparing sales in East in June versus May and JulyEnables users to obtain online answers to ad hoc questions such as these in a fairly rapid amount of timeOnline Analytical Processing (OLAP)Using Databases to Improve Business Performance and Decision MakingEssentials of Managem

46、ent Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementUsing Databases to Improve Business Performance and Decision MakingFigure 5-14The view that is showing is product versus region. If you rotate the cube 90 degrees, the face that will show is pr

47、oduct versus actual and projected sales. If you rotate the cube 90 degrees again, you will see region versus actual and projected sales. Other views are possible.Multidimensional Data ModelEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Infor

48、mation ManagementFinds hidden patterns and relationships in large databases and infers rules from them to predict future behaviorTypes of information obtainable from data miningAssociations: occurrences linked to single eventSequences: events linked over timeClassifications: patterns describing a gr

49、oup an item belongs toClusters: discovering as yet unclassified groupingsForecasting: uses series of values to forecast future valuesData MiningUsing Databases to Improve Business Performance and Decision MakingEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligenc

50、e: Databases and Information ManagementOne popular use of data mining: analyzing patterns in customer data for one-to-one marketing campaigns or for identifying profitable customersPredictive analysis: Uses data mining techniques, historical data, and assumptions about future conditions to predict o

51、utcomes of events, such as the probability a customer will respond to an offer or purchase a specific productData mining versus privacy concernsUsed to create detailed data image about each individualData MiningUsing Databases to Improve Business Performance and Decision MakingEssentials of Manageme

52、nt Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementText MiningUnstructured data (mostly text files) accounts for 80 percent of an organizations useful information.Text mining allows businesses to extract key elements from, discover patterns in,

53、and summarize large unstructured data sets.Web MiningDiscovery and analysis of useful patterns and information from the WebContent mining, structure mining, usage miningUsing Databases to Improve Business Performance and Decision MakingEssentials of Management Information SystemsChapter 5 Foundations of Business Intelligence: Databases and Information ManagementFirms use the Web to make information from their internal databases available to customers and partners.Middleware and other software make this possibleWeb serverApplication servers or CGIDatab

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