1 / 15

CHAPTER SIX DATA: BUSINESS INTELLIGENCE

CHAPTER SIX DATA: BUSINESS INTELLIGENCE. 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

alden
Download Presentation

CHAPTER SIX DATA: BUSINESS INTELLIGENCE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. CHAPTER SIX DATA: BUSINESS INTELLIGENCE

  2. 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

  3. Information Quality • Characteristics of High-quality Information • Accurate • Complete • Consistent • Unique • Timely

  4. Understanding the Costs of Using Low-Quality Information • Potential business effects resulting from low quality information include • Inability to accurately track customers • Difficulty identifying valuable customers • Inability to identify selling opportunities • Marketing to nonexistent customers • Difficulty tracking revenue • Inability to build strong customer relationships

  5. STORING INFORMATION IN A RELATIONAL DATABASE • Information is everywhere in an organization • Information is stored in databases • Database – maintains information about various types of objects (inventory), events (transactions), people (employees), and places (warehouses)

  6. STORING DATA ELEMENTS IN ENTITIES AND ATTRIBUTES • Entity – A person, place, thing, transaction, or event about which information is stored • The rows in a table contain entities • Attribute (field, column) – The data elements associated with an entity • The columns in each table contain the attributes • Record – A collection of related data elements

  7. CREATING RELATIONSHIPS THROUGH KEYS • Primary keys and foreign keys identify the various entities (tables) in the database • Primary key – A field (or group of fields) that uniquely identifies a given entity in a table • Foreign key – A primary key of one table that appears an attribute in another table and acts to provide a logical relationship among the two tables

  8. DRIVING WEBSITES WITH DATA • Data-driven websites – An interactive website kept constantly updated and relevant to the needs of its customers using a database

  9. THE BUSINESS BENEFITS OF DATA WAREHOUSING • Data warehouse – A logical collection of information – gathered from many different operational databases – that supports business analysis activities and decision-making tasks • The primary purpose of a data warehouse is to aggregate information throughout an organization into a single repository for decision-making purposes

  10. MULTIDIMENSIONAL ANALYSIS • Databases contain information in a series of two-dimensional tables • In a data warehouse and data mart, information is multidimensional, it contains layers of columns and rows • Dimension – A particular attribute of information • Cube – Common term for the representation of multidimensional information

  11. INFORMATION CLEANSING OR SCRUBBING • An organization must maintain high-quality data in the data warehouse • Information cleansing or scrubbing – A process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information

  12. 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

  13. UNCOVERING TRENDS AND PATTERNS WITH DATA MINING • Common forms of data-mining analysis capabilities include • Cluster analysis • Association detection • Statistical analysis

  14. 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

  15. 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

More Related