Chapter 6 - Data: Business intelligence. Learning objectives of this chapter include: Explain the four primary traits that determine the value of information; describe a database, a database management system, and the relational database model; identify the business advantages of a relational database; explain the business benefits of a data-driven website.
1 CHAPTER SIX DATA BUSINESS INTELLIGENCE © 2014 by McGraw-Hill Education This is proprietary material solely for authorized instructor use Not authorized for sale or distribution in any manner This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part CHAPTER OVERVIEW SECTION 6.1 – Data, Information, Databases • The Business Benefits of High-Quality Information • Storing Information Using a Relational Database Management System • Using a Relational Database for Business Advantages • Driving Websites with Data SECTION 6.2 – Business Intelligence • • • • The Business Benefits of Data Warehousing Performing Business Analysis with Data Marts Uncovering Trends and Patterns with Data Mining Supporting Decisions with Business Intelligence SECTION 6.1 DATA, INFORMATION, AND DATABASES © 2014 by McGraw-Hill Education This is proprietary material solely for authorized instructor use Not authorized for sale or distribution in any manner This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part LEARNING OUTCOMES Explain the four primary traits that determine the value of information Describe a database, a database management system, and the relational database model Identify the business advantages of a relational database Explain the business benefits of a data-driven website THE BUSINESS BENEFITS OF HIGH-QUALITY INFORMATION Information is everywhere in an organization Employees must be able to obtain and analyze the many different levels, formats, and granularities of organizational information to make decisions Successfully collecting, compiling, sorting, and analyzing information can provide tremendous insight into how an organization is performing THE BUSINESS BENEFITS OF HIGH-QUALITY INFORMATION Levels, Formats, and Granularities of Information Information Type: Transactional and Analytical • Transactional information – Encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational tasks • Analytical information – Encompasses all organizational information, and its primary purpose is to support the performing of managerial analysis tasks Information Type: Transactional and Analytical Information Type: Transactional and Analytical 10 Information Timeliness Timeliness is an aspect of information that depends on the situation • Real-time information – Immediate, up-to-date information • Real-time system – Provides realtime information in response to requests 43 Information Cleansing or Scrubbing Contact Information in an Operational System 44 Information Cleansing or Scrubbing Standardizing Customer Name from Operational Systems 45 Information Cleansing or Scrubbing Information Cleansing Example 46 Information Cleansing or Scrubbing Cost of Accurate and Complete Information 47 UNCOVERING TRENDS AND PATTERNS WITH DATA MINING Data mining – The process of analyzing data to extract information not offered by the raw data alone Data-mining tools – use a variety of techniques to find patterns and relationships in large volumes of information • Classification • Estimation • Affinity grouping • Clustering 48 UNCOVERING TRENDS AND PATTERNS WITH DATA MINING Structured data – Data already in a database or a spreadsheet Unstructured data – Data does not exist in a fixed location and can include text documents, PDFs, voice messages, emails Text mining – Analyzes unstructured data to find trends and patterns in words and sentences Web mining – Analyzes unstructured data associated with websites to identify consumer behavior and website navigation 49 UNCOVERING TRENDS AND PATTERNS WITH DATA MINING Common forms of data-mining analysis capabilities include • • • Cluster analysis Association detection Statistical analysis 50 Cluster Analysis Cluster analysis – A technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible 51 Association Detection Association detection – Reveals the relationship between variables along with the nature and frequency of the relationships • Market basket analysis 52 Statistical Analysis Statistical analysis – Performs such functions as information correlations, distributions, calculations, and variance analysis • • Forecast – Predictions made on the basis of time-series information Time-series information – Timestamped information collected at a particular frequency 53 The Problem: Data Rich, Information Poor Businesses face a data explosion as digital images, email in-boxes, and broadband connections doubles by 2010 The amount of data generated is doubling every year Some believe it will soon double monthly 54 The Solution: Business Intelligence Improving the quality of business decisions has a direct impact on costs and revenue BI enables business users to receive data for analysis that is: • • • • Reliable Consistent Understandable Easily manipulated 55 The Solution: Business Intelligence BI Can Answer Tough Questions 56 Visual Business Intelligence Informing – Accessing large amounts of data from different management information systems Infographics – Displays information graphically Data visualization – Allows users to “see” or visualize data to transform information into a business perspective Data visualization tools – Sophisticated analysis techniques such as pie charts, controls, instruments, maps, time-series graphs, and more 57 LEARNING OUTCOME REVIEW Now that you have finished the chapter please review the learning outcomes in your text ... the situation • Real-time information – Immediate, up-to-date information • Real-time system – Provides realtime information in response to requests 11 Information Quality Business decisions...2 CHAPTER OVERVIEW SECTION 6. 1 – Data, Information, Databases • The Business Benefits of High-Quality Information • Storing Information Using a Relational Database... BENEFITS OF HIGH-QUALITY INFORMATION Levels, Formats, and Granularities of Information Information Type: Transactional and Analytical • Transactional information – Encompasses all of the information