Business Driven Information Systems 2e

1. CHAPTER 6 DATABASES AND DATA WAREHOUSES Business Driven Information Systems 2e UNIT TWO OPENING CASE – Additional Case Information It Takes A Village to Write an Encyclopedia This case focuses on the invention of wiki technology and the Wikipedia encyclopedia. Start the class off by taking a brief tour of Wikipedia so students can see the online edits. Wikipedia is located at http://www.wikipedia.org/. Ask your students if they know which topic area has the largest number of daily changes? One of the hottest areas in Wikipedia is the Start Trek entries, which are changed more than any other topic area in the entire encyclopedia. Wiki technology is taking off and people are finding new uses for the technology daily. Wiki is being used for collaboration among many businesses. Wiki is being used in education in a number of ways to support learning: A teacher could post some key revision words for students to expand into definitions / pages Students could work in groups on collaborative documents such as a group report Course notes could be refined over the duration of the course by both students and teachers Students could research new topics and contribute their findings A wiki could be used as a portfolio showing development of a project Teacher can start a writing prompt and have students add parts to create a comprehensive class writing activity. A teacher could start a story and students could create links off it which would allow the story to follow different, interactive paths. States and school districts can develop and edit curricula by allowing teachers to add in activities and assessments A wiki would be a great tool for collaboratively constructing answers to exam questions! A great tool for a team of students involved in project work Annotating each other's workUNIT TWO OPENING CASE – Additional Case Information It Takes A Village to Write an Encyclopedia This case focuses on the invention of wiki technology and the Wikipedia encyclopedia. Start the class off by taking a brief tour of Wikipedia so students can see the online edits. Wikipedia is located at http://www.wikipedia.org/. Ask your students if they know which topic area has the largest number of daily changes? One of the hottest areas in Wikipedia is the Start Trek entries, which are changed more than any other topic area in the entire encyclopedia. Wiki technology is taking off and people are finding new uses for the technology daily. Wiki is being used for collaboration among many businesses. Wiki is being used in education in a number of ways to support learning: A teacher could post some key revision words for students to expand into definitions / pages Students could work in groups on collaborative documents such as a group report Course notes could be refined over the duration of the course by both students and teachers Students could research new topics and contribute their findings A wiki could be used as a portfolio showing development of a project Teacher can start a writing prompt and have students add parts to create a comprehensive class writing activity. A teacher could start a story and students could create links off it which would allow the story to follow different, interactive paths. States and school districts can develop and edit curricula by allowing teachers to add in activities and assessments A wiki would be a great tool for collaboratively constructing answers to exam questions! A great tool for a team of students involved in project work Annotating each other's work

2. Chapter Six Overview SECTION 6.1 – DATABASE FUNDAMENTALS Organizational Information Storing Organizational Information Relational Database Fundamentals Relational Database Advantages Database Management Systems Integrating Data Among Multiple Databases SECTION 6.2 – DATA WARAEHOUSE FUNDAMENTALS Accessing Organizational Information History of Data Warehousing Data Warehouse Fundamentals Data Mining and Business Intelligence Chapter 6 introduces: Data Information quality Databases Data mining Data warehouses in detail and highlights why and how information adds value to an organization Chapter 6 introduces: Data Information quality Databases Data mining Data warehouses in detail and highlights why and how information adds value to an organization

3. SECTION 6.1 DATABASE FUNDAMENTALS CLASSROOM OPENER GREAT BUSINESS DECISIONS – Julius Reuter Uses Carrier Pigeons to Transfer Information In 1850, the idea that sending and receiving information could add business value was born. Julius Reuter began a business that bridged the gap between Belgium and Germany. Reuter built one of the first information management companies built on the premise that customers would be prepared to pay for information that was timely and accurate. Reuter used carrier pigeons to forward stock market and commodity prices from Brussels to Germany. Customers quickly realized that with the early receipt of vital information they could make fortunes. Those who had money at stake in the stock market were prepared to pay handsomely for early information from a reputable source, even if it was a pigeon. Eventually, Reuter’s business grew from 45 pigeons to over 200 pigeons. Eventually the telegraph bridged the gap between Brussels to Germany, and Reuter’s brilliantly conceived temporary monopoly was closed. ***For additional case information visit the MISForum where we are constantly posting updated material to enhance the business driven cases.  You can self-register for the MISForum at www.mhhe.com/mis. CLASSROOM OPENER GREAT BUSINESS DECISIONS – Julius Reuter Uses Carrier Pigeons to Transfer Information In 1850, the idea that sending and receiving information could add business value was born. Julius Reuter began a business that bridged the gap between Belgium and Germany. Reuter built one of the first information management companies built on the premise that customers would be prepared to pay for information that was timely and accurate. Reuter used carrier pigeons to forward stock market and commodity prices from Brussels to Germany. Customers quickly realized that with the early receipt of vital information they could make fortunes. Those who had money at stake in the stock market were prepared to pay handsomely for early information from a reputable source, even if it was a pigeon. Eventually, Reuter’s business grew from 45 pigeons to over 200 pigeons. Eventually the telegraph bridged the gap between Brussels to Germany, and Reuter’s brilliantly conceived temporary monopoly was closed. ***For additional case information visit the MISForum where we are constantly posting updated material to enhance the business driven cases.  You can self-register for the MISForum at www.mhhe.com/mis.

4. LEARNING OUTCOMES List, describe, and provide an example of each of the five characteristics of high quality information Define the relationship between a database and a database management system Describe the advantages an organization can gain by using a database. 6.1. List, describe, and provide an example of each of the five characteristics of high quality information. Accuracy determines if all values are correct. Example – is the name spelled correctly? Completeness determines if any values are missing. Example - is the address complete? Consistency ensures that aggregate or summary information is in agreement with detailed information. Example – do totals equal the true total of the individual fields? Uniqueness ensures that each transaction, entity, and event is represented only once in the information. Example – are there any duplicate customers? Timeliness determines if the information is current with respect to the business requirement. Example – is the information updated weekly? 6.2. Define the relationship between a database and a database management system. A database management system manages the database. The DBMS determines how information is entered, accessed, displayed, and the rules surrounding the fundamental operation of the database. 6.3. Describe the advantages an organization can gain by using a database. Database advantages from a business perspective include Increased flexibility Increased scalability and performance Reduced information redundancy Increased information integrity (quality) Increased information security6.1. List, describe, and provide an example of each of the five characteristics of high quality information. Accuracy determines if all values are correct. Example – is the name spelled correctly? Completeness determines if any values are missing. Example - is the address complete? Consistency ensures that aggregate or summary information is in agreement with detailed information. Example – do totals equal the true total of the individual fields? Uniqueness ensures that each transaction, entity, and event is represented only once in the information. Example – are there any duplicate customers? Timeliness determines if the information is current with respect to the business requirement. Example – is the information updated weekly? 6.2. Define the relationship between a database and a database management system. A database management system manages the database. The DBMS determines how information is entered, accessed, displayed, and the rules surrounding the fundamental operation of the database. 6.3. Describe the advantages an organization can gain by using a database. Database advantages from a business perspective include Increased flexibility Increased scalability and performance Reduced information redundancy Increased information integrity (quality) Increased information security

5. LEARNING OUTCOMES Define the fundamental concepts of the relational database model Describe the two primary methods for integrating information across multiple databases Compare relational integrity constraints and business-critical integrity constraints Describe the benefits of a data-driven website 6.4. Define the fundamental concepts of the relational database model. The relational database model stores information in the form of logically related two-dimensional tables. Entities, entity classes, attributes, primary keys, and foreign keys are all fundamental concepts included in the relational database model. 6.5 Describe the two primary methods for integrating information across multiple databases. Forward integration – takes information entered into a given system and sends it automatically to all downstream systems and processes. Backward integration – takes information entered into a given system and sends it automatically to all upstream systems and processes. 6.6 Compare relational integrity constraints and business-critical integrity constraints. Relational integrity constraints are rules that enforce basic and fundamental information-based constraints. Business-critical integrity constraints are rules that enforce business rules vital to an organization’s success and often require more insight and knowledge than relational integrity constraints 6.7 Describe the benefits of a data-driven website. A data-driven website is an interactive website kept constantly updated and relevant to the needs of its customers through the use of a database. Data-driven websites are especially useful when the site offers a great deal of information, products, or services. Website visitors are frequently angered if they are buried under an avalanche of information when searching a website. A data-driven website invites visitors to select and view what they are interested in by inserting a query, which the website then analyzes and custom builds a Web page in real-time that satisfies the query. 6.4. Define the fundamental concepts of the relational database model. The relational database model stores information in the form of logically related two-dimensional tables. Entities, entity classes, attributes, primary keys, and foreign keys are all fundamental concepts included in the relational database model. 6.5 Describe the two primary methods for integrating information across multiple databases. Forward integration – takes information entered into a given system and sends it automatically to all downstream systems and processes. Backward integration – takes information entered into a given system and sends it automatically to all upstream systems and processes. 6.6 Compare relational integrity constraints and business-critical integrity constraints. Relational integrity constraints are rules that enforce basic and fundamental information-based constraints. Business-critical integrity constraints are rules that enforce business rules vital to an organization’s success and often require more insight and knowledge than relational integrity constraints 6.7 Describe the benefits of a data-driven website. A data-driven website is an interactive website kept constantly updated and relevant to the needs of its customers through the use of a database. Data-driven websites are especially useful when the site offers a great deal of information, products, or services. Website visitors are frequently angered if they are buried under an avalanche of information when searching a website. A data-driven website invites visitors to select and view what they are interested in by inserting a query, which the website then analyzes and custom builds a Web page in real-time that satisfies the query.

6. Organizational 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 Granularity refers to the extent of detail within the information (fine and detailed or “coarse” and abstract information) Have you ever had to correlate two different formats, levels, or granularities of information? How did you correlate the information? Taking a hard look at organizational information can yield exciting and unexpected results such as potential new markets, new ways of reaching customers, and even new ways of doing businessGranularity refers to the extent of detail within the information (fine and detailed or “coarse” and abstract information) Have you ever had to correlate two different formats, levels, or granularities of information? How did you correlate the information? Taking a hard look at organizational information can yield exciting and unexpected results such as potential new markets, new ways of reaching customers, and even new ways of doing business

7. Organizational Information Levels, formats, and granularities of organizational information This is a good place to discuss the Samsung Electronics and Staples examples from the text Students should understand that information varies and different levels, formats, and granularities of information can be found throughout an organization Levels Formats Granularities Information granularity – refers to the extent of detail within the information (fine and detailed or coarse and abstract) CLASSROOM EXERCISE Organizing Information Break your students into groups and assign each group a different information type from Figure 6.1 Ask the students to find examples of the different kinds of information they might encounter in an organization for their information type For example, information formats for a spreadsheet might include a profit and loss statement or a market analysis Ask your students to determine potential issues that might arise from having different types of information Ask your students what happens if the information does not correlate For example, the customer letters sent out do not match the customers and customer addresses in the database For example, the total on the customer’s bill does not add up to the individual line items This is a good place to discuss the Samsung Electronics and Staples examples from the text Students should understand that information varies and different levels, formats, and granularities of information can be found throughout an organization Levels Formats Granularities Information granularity – refers to the extent of detail within the information (fine and detailed or coarse and abstract) CLASSROOM EXERCISE Organizing Information Break your students into groups and assign each group a different information type from Figure 6.1 Ask the students to find examples of the different kinds of information they might encounter in an organization for their information type For example, information formats for a spreadsheet might include a profit and loss statement or a market analysis Ask your students to determine potential issues that might arise from having different types of information Ask your students what happens if the information does not correlate For example, the customer letters sent out do not match the customers and customer addresses in the database For example, the total on the customer’s bill does not add up to the individual line items

8. The Value of Transactional and Analytical Information 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 Organizations capture and store transactional information in databases and use it when performing operational tasks and repetitive decisions such as analyzing daily sales reports and production schedules Transactional information examples include withdrawing cash from an ATM, making an airline reservation, purchasing stocks Compile a list of additional transactional information examples These could include daily sales, hourly employee payroll, product orders, shipping an order Analytical information includes transactional information Analytical information also includes external organizational information such as market, industry, and economic conditions Analytical information is used to make ad-hoc decisions Analytical information examples include trends, sales, product statistics, and future growth projections Compile a list of additional analytical information examples These could include cost/benefit analysis, sales forecast, market trends, industry trends, and regulations Ask your students to compile a list of the different types of ad-hoc decisions a business might base on analytical information These could include building a new plant, hiring or reducing workforces, introducing a new product 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 Organizations capture and store transactional information in databases and use it when performing operational tasks and repetitive decisions such as analyzing daily sales reports and production schedules Transactional information examples include withdrawing cash from an ATM, making an airline reservation, purchasing stocks Compile a list of additional transactional information examples These could include daily sales, hourly employee payroll, product orders, shipping an order Analytical information includes transactional information Analytical information also includes external organizational information such as market, industry, and economic conditions Analytical information is used to make ad-hoc decisions Analytical information examples include trends, sales, product statistics, and future growth projections Compile a list of additional analytical information examples These could include cost/benefit analysis, sales forecast, market trends, industry trends, and regulations Ask your students to compile a list of the different types of ad-hoc decisions a business might base on analytical information These could include building a new plant, hiring or reducing workforces, introducing a new product

9. The Value of Timely Information Timeliness is an aspect of information that depends on the situation Real-time information – immediate, up-to-date information Real-time system – provides real-time information in response to query requests The important point that students must understand regarding timely information is that “timely” is relative to each business decision Some decisions require weekly information while others require daily information Organizations such as 911 centers, stock traders, and banks require up-to-the second information CLASSROOM EXERCISE Timing Time Break your students into groups and ask them to compile a list of three business decisions that require up-to-the-second information, three business decisions that require quarterly information, and three business decisions that require yearly information. Have your students present their answers to the class. The important point that students must understand regarding timely information is that “timely” is relative to each business decision Some decisions require weekly information while others require daily information Organizations such as 911 centers, stock traders, and banks require up-to-the second information CLASSROOM EXERCISE Timing Time Break your students into groups and ask them to compile a list of three business decisions that require up-to-the-second information, three business decisions that require quarterly information, and three business decisions that require yearly information. Have your students present their answers to the class.

10. The Value of Quality Information Business decisions are only as good as the quality of the information used to make the decisions You never want to find yourself using technology to help you make a bad decision faster Do you have any examples of a time when you encountered a problem due to low quality information? For example, you did not receive a package because the address was incorrect or missing List the business ramifications that can occur for an organization that maintains low quality information What is the expense to a business that provides its employees with hourly updates, when the employees only require weekly updates? Updating information costs money Updated information must be stored; the more frequently an organization updates its information, the more information they will have in their data warehouse and databases Updating information changes information Review the scenario in the text that discusses three managers who make different business decisions based on the same report The reason for the different business decisions is because the managers pulled the report at three different times during the day Since the information was continually being updated, they came to different conclusions Do you have any examples of a time when you encountered a problem due to low quality information? For example, you did not receive a package because the address was incorrect or missing List the business ramifications that can occur for an organization that maintains low quality information What is the expense to a business that provides its employees with hourly updates, when the employees only require weekly updates? Updating information costs money Updated information must be stored; the more frequently an organization updates its information, the more information they will have in their data warehouse and databases Updating information changes information Review the scenario in the text that discusses three managers who make different business decisions based on the same report The reason for the different business decisions is because the managers pulled the report at three different times during the day Since the information was continually being updated, they came to different conclusions

11. The Value of Quality Information Characteristics of high-quality information include: Accuracy Completeness Consistency Uniqueness Timeliness Characteristics of High Quality Information Accuracy Are all the values correct? For example, is the name spelled correctly? Is the dollar amount recorded properly? Completeness Are any of the values missing? For example, is the address complete including street, city, state, and zip code? Consistency Is aggregate or summary information in agreement with detailed information? For example, do all total fields equal the true total of the individual fields? Uniqueness Is each transaction, entity, and event represented only once in the information? For example, are there any duplicate customers? Timeliness Is the information current with respect to the business requirements? For example, is information updated weekly, daily, or hourly? CLASSROOM EXERCISE Inquiring about Information Break your students into groups and ask each group to provide an additional example of each of the five common characteristics of high quality information that is not provided in the above figure For example, Accuracy – does a purchase price on a bill match the item description on the bill? Item 1: Kids juice cup, cost $10,000 Chances are a kids juice cup would not cost $10,000 and this is an inaccurate item Characteristics of High Quality Information Accuracy Are all the values correct? For example, is the name spelled correctly? Is the dollar amount recorded properly? Completeness Are any of the values missing? For example, is the address complete including street, city, state, and zip code? Consistency Is aggregate or summary information in agreement with detailed information? For example, do all total fields equal the true total of the individual fields? Uniqueness Is each transaction, entity, and event represented only once in the information? For example, are there any duplicate customers? Timeliness Is the information current with respect to the business requirements? For example, is information updated weekly, daily, or hourly? CLASSROOM EXERCISE Inquiring about Information Break your students into groups and ask each group to provide an additional example of each of the five common characteristics of high quality information that is not provided in the above figure For example, Accuracy – does a purchase price on a bill match the item description on the bill? Item 1: Kids juice cup, cost $10,000 Chances are a kids juice cup would not cost $10,000 and this is an inaccurate item

12. The Value of Quality Information Low quality information example Walk-through each of the six issues and have your students extrapolate a potential business problem that might be associated with each issue. The example does not state what type of database or spreadsheet this information is contained (sales, marketing, customer service, billing, etc), so allow your students use their imagination when they are extrapolating the potential business problems Issue 1: Without a first name it would be impossible to correlate this customer with customers in other databases (Sales, Marketing, Billing, Customer Service) to gain a compete customer view (CRM) Issue 2: Without a complete street address there is no possible way to communicate with this customer via mail or deliveries. An order might be sitting in a warehouse waiting for the complete address before shipping. The company has spent time and money processing an order that might never be completed Issue 3: If this is the same customer, the company will waste money sending out two sets of promotions and advertisements to the same customers. It might also send two identical orders and have to incur the expense of one order being returned Issue 4: This is a good example of where cleaning data is difficult because this may or may not be an error. There are many times when a phone and a fax have the same number. Since the phone number is also in the e-mail address field, chances are that the number is inaccurate Issue 5: The business would have no way of communicating with this customer via e-mail Issue 6: The company could determine the area code based on the customer’s address. This takes time, which costs the company money. This is a good reason to ensure that information is entered correctly the first time. All incorrect information needs to be fixed, which costs time and money Walk-through each of the six issues and have your students extrapolate a potential business problem that might be associated with each issue. The example does not state what type of database or spreadsheet this information is contained (sales, marketing, customer service, billing, etc), so allow your students use their imagination when they are extrapolating the potential business problems Issue 1: Without a first name it would be impossible to correlate this customer with customers in other databases (Sales, Marketing, Billing, Customer Service) to gain a compete customer view (CRM) Issue 2: Without a complete street address there is no possible way to communicate with this customer via mail or deliveries. An order might be sitting in a warehouse waiting for the complete address before shipping. The company has spent time and money processing an order that might never be completed Issue 3: If this is the same customer, the company will waste money sending out two sets of promotions and advertisements to the same customers. It might also send two identical orders and have to incur the expense of one order being returned Issue 4: This is a good example of where cleaning data is difficult because this may or may not be an error. There are many times when a phone and a fax have the same number. Since the phone number is also in the e-mail address field, chances are that the number is inaccurate Issue 5: The business would have no way of communicating with this customer via e-mail Issue 6: The company could determine the area code based on the customer’s address. This takes time, which costs the company money. This is a good reason to ensure that information is entered correctly the first time. All incorrect information needs to be fixed, which costs time and money

13. Understanding the Costs of Poor Information The four primary sources of low quality information include: Customers intentionally enter inaccurate information to protect their privacy Different entry standards and formats Operators enter abbreviated or erroneous information by accident or to save time Third party and external information contains inconsistencies, inaccuracies, and errors Addressing the above sources of information inaccuracies will significantly improve the quality of organizational information Determine a few additional sources of low quality information A customer service representative could accidentally transpose a number in an address or misspell a last name Addressing the above sources of information inaccuracies will significantly improve the quality of organizational information Determine a few additional sources of low quality information A customer service representative could accidentally transpose a number in an address or misspell a last name

14. Understanding the Costs of Poor 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 Can you list any additional business effects resulting from poor information? (focus on organizational strategies such as SCM, CRM, and ERP) Poor information could cause the SCM system to order too much inventory from a supplier based on inaccurate orders Poor information could cause a CRM system to send an expensive promotional item (such as a fruit basket) to the wrong address of one of its best customers What occurs when you have the inability to build strong customer relationships? Increase buyer power Gartner podcasts are excellent course resources, there is current a good podcast on the cost of poor data to an organization http://www.gartner.com/it/products/podcasting/about_gartner_voice.jsp  Can you list any additional business effects resulting from poor information? (focus on organizational strategies such as SCM, CRM, and ERP) Poor information could cause the SCM system to order too much inventory from a supplier based on inaccurate orders Poor information could cause a CRM system to send an expensive promotional item (such as a fruit basket) to the wrong address of one of its best customers What occurs when you have the inability to build strong customer relationships? Increase buyer power Gartner podcasts are excellent course resources, there is current a good podcast on the cost of poor data to an organization http://www.gartner.com/it/products/podcasting/about_gartner_voice.jsp 

15. Understanding the Benefits of Good Information High quality information can significantly improve the chances of making a good decision Good decisions can directly impact an organization's bottom line CLASSROOM EXERCISE Understanding Information’s Quality Break your students into groups and ask them to compile a list of all of the issues found in the following information (the table is located in the IM – cut and paste onto a slide or display on the projector) Ask your students to also list why most low quality information errors occur and what an organization can do to help implement high quality information CLASSROOM EXERCISE Understanding Information’s Quality Break your students into groups and ask them to compile a list of all of the issues found in the following information (the table is located in the IM – cut and paste onto a slide or display on the projector) Ask your students to also list why most low quality information errors occur and what an organization can do to help implement high quality information

16. Relational Database Fundamentals 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) How many of you are familiar with databases? What kinds of databases can be found around your college? Student registration Course evaluation Payroll Parking services Explain to your students that almost every business decision is based on information The information required to make these decisions is typically stored in databasesHow many of you are familiar with databases? What kinds of databases can be found around your college? Student registration Course evaluation Payroll Parking services Explain to your students that almost every business decision is based on information The information required to make these decisions is typically stored in databases

17. Relational Database Fundamentals Database models include: Hierarchical database model Network database model Relational database model – stores information in the form of logically related two-dimensional tables Hierarchical database model – information is organized into a tree-like structure (using parent/child relationships) in such a way that it cannot have too many relationships Network database model – a flexible way of representing objects and their relationships Relational database model – stores information in the form of logically related two-dimensional tables Most organizations use the relational database model This text focuses on the relational database model Discuss the Coca-Cola Bottling Company of Egypt example in the textHierarchical database model – information is organized into a tree-like structure (using parent/child relationships) in such a way that it cannot have too many relationships Network database model – a flexible way of representing objects and their relationships Relational database model – stores information in the form of logically related two-dimensional tables Most organizations use the relational database model This text focuses on the relational database model Discuss the Coca-Cola Bottling Company of Egypt example in the text

18. Entities and Attributes Entity – a person, place, thing, transaction, or event about which information is stored The rows in each table contain the entities In Figure 6.5 CUSTOMER includes Dave’s Sub Shop and Pizza Palace entities Attribute (field, column) – characteristics or properties of an entity class The columns in each table contain the attributes In Figure 6.5 attributes for CUSTOMER include Customer ID, Customer Name, Contact Name This text focuses on the relational database model Review Figure 6.5 What kinds of additional entity classes might be found in this database? INVENTORY, MARKETING CAMPAIGN, SALES QUOTE, INVOICE, PAYMENT What kinds of additional entities might be found in the CUSTOMER table? Could include any additional customer – Joe’s Mexican Restaurant, Fitness Forever, and Summer’s Flower Shop (these are all fictitious) Review Figure 6.5 What kinds of additional attributes might be found in the CUSTOMER table for Dave’s Sub Shop? Could include any additional customer information: Address Fax E-mail Cell phone This text focuses on the relational database model Review Figure 6.5 What kinds of additional entity classes might be found in this database? INVENTORY, MARKETING CAMPAIGN, SALES QUOTE, INVOICE, PAYMENT What kinds of additional entities might be found in the CUSTOMER table? Could include any additional customer – Joe’s Mexican Restaurant, Fitness Forever, and Summer’s Flower Shop (these are all fictitious) Review Figure 6.5 What kinds of additional attributes might be found in the CUSTOMER table for Dave’s Sub Shop? Could include any additional customer information: Address Fax E-mail Cell phone

19. Keys and Relationships 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 Review Figure 6.5 Explain to your students that the logic that correlates the tables is implemented through the primary keys For example: Hawkins Shipping in the DISTRIBUTOR table has a primary key called Distributor ID – DEN8001 Notice that Hawkins Shipping (Distributor ID DEN8001) is responsible for delivering orders 34561 and 345652 Therefore, Distributor ID in the ORDER table creates a logical relationship (who shipped what order) between ORDER and DISTRIBUTOR Review Figure 6.5 Explain to your students that the logic that correlates the tables is implemented through the primary keys For example: Hawkins Shipping in the DISTRIBUTOR table has a primary key called Distributor ID – DEN8001 Notice that Hawkins Shipping (Distributor ID DEN8001) is responsible for delivering orders 34561 and 345652 Therefore, Distributor ID in the ORDER table creates a logical relationship (who shipped what order) between ORDER and DISTRIBUTOR

20. Potential relational database for Coca-Cola Walk your students through the relational database model in Figure 6.5 To ensure your students are grasping the concepts, ask them to answer the following: How many orders have been placed for T’s Fun Zone? Ans: 1 Order IT 34563 How many orders have been placed for Pizza Palace? Ans: None How many items are included in Dave’s Sub Shop’s two orders? Ans: Order 34561 has 3 items and order 34562 has one item for a total of 4 items in both orders. Who is responsible for distributing Dave’s Sub Shop’s orders? Ans: Hawkins Shipping Which products are included in Order 34562? Ans: 300 Vanilla Coke Walk your students through the relational database model in Figure 6.5 To ensure your students are grasping the concepts, ask them to answer the following: How many orders have been placed for T’s Fun Zone? Ans: 1 Order IT 34563 How many orders have been placed for Pizza Palace? Ans: None How many items are included in Dave’s Sub Shop’s two orders? Ans: Order 34561 has 3 items and order 34562 has one item for a total of 4 items in both orders. Who is responsible for distributing Dave’s Sub Shop’s orders? Ans: Hawkins Shipping Which products are included in Order 34562? Ans: 300 Vanilla Coke

21. Relational Database Advantages Database advantages from a business perspective include Increased flexibility Increased scalability and performance Reduced information redundancy Increased information integrity (quality) Increased information security All of the above are discussed in the following slides: A good way to explain databases is to compare them to spreadsheets What are the limitations when using a spreadsheet? Limited number of rows and columns (Excel - 65,536 rows by 256 columns) Once you use more than 65,536 rows you have outgrown your spreadsheet Only one users can access the spreadsheet Users can view all information in the spreadsheet Users can change all information in the spreadsheet All of the disadvantages associated with a spreadsheet are fixed when using a database These advantages are discussed in detail over the next several slidesAll of the above are discussed in the following slides: A good way to explain databases is to compare them to spreadsheets What are the limitations when using a spreadsheet? Limited number of rows and columns (Excel - 65,536 rows by 256 columns) Once you use more than 65,536 rows you have outgrown your spreadsheet Only one users can access the spreadsheet Users can view all information in the spreadsheet Users can change all information in the spreadsheet All of the disadvantages associated with a spreadsheet are fixed when using a database These advantages are discussed in detail over the next several slides

22. Increased Flexibility A well-designed database should: Handle changes quickly and easily Provide users with different views Have only one physical view Physical view – deals with the physical storage of information on a storage device Have multiple logical views Logical view – focuses on how users logically access information The separation between logical and physical views is what allows each user to access database information differently What would happen if a new database called “RealData” hit the market and allowed only one logical view? The “RealData” database simply would never sell. With only one logical view every person in an entire organization would have the same view Define two database views for your school’s student database (one for students, and one for instructors) What does the student view display when a student accesses the school’s student database? Courses enrolled Grades Tuition Credits for graduation What does the instructor view display when an instructor accesses the school’s student database? Courses teaching Students in each course Payment information Vacation timeThe separation between logical and physical views is what allows each user to access database information differently What would happen if a new database called “RealData” hit the market and allowed only one logical view? The “RealData” database simply would never sell. With only one logical view every person in an entire organization would have the same view Define two database views for your school’s student database (one for students, and one for instructors) What does the student view display when a student accesses the school’s student database? Courses enrolled Grades Tuition Credits for graduation What does the instructor view display when an instructor accesses the school’s student database? Courses teaching Students in each course Payment information Vacation time

23. Increased Scalability and Performance A database must scale to meet increased demand, while maintaining acceptable performance levels Scalability – refers to how well a system can adapt to increased demands Performance – measures how quickly a system performs a certain process or transaction What happens to a business if its suddenly experienced a 60 percent growth in sales and its IT systems fail with all of the increased activity? Remind your students that a big part of developing successful IT systems is being able to anticipate future growth CLASSROOM EXERCISE Building an ER Diagram Break your students into groups and ask them to create an entity relationship diagram similar to the one in Figure 6.5 for a company or product of their choice. If the students are uncomfortable with databases, you should recommend that they stick to a company similar to the TCCBCE, perhaps a snack food producer, mountain bike equipment producer, or even a footwear producer. If your students are more comfortable with databases, ask them to choose a company that would challenge them such as a fast food restaurant, online book seller, or even a university’s course registration system. The important part of this exercise is for your students to begin to understand how the tables in a database relate. Be sure their ER diagrams include primary keys and foreign keys. Have your students present their ER diagrams to the class and ask the students to find any potential errors with the diagrams.What happens to a business if its suddenly experienced a 60 percent growth in sales and its IT systems fail with all of the increased activity? Remind your students that a big part of developing successful IT systems is being able to anticipate future growth CLASSROOM EXERCISE Building an ER Diagram Break your students into groups and ask them to create an entity relationship diagram similar to the one in Figure 6.5 for a company or product of their choice. If the students are uncomfortable with databases, you should recommend that they stick to a company similar to the TCCBCE, perhaps a snack food producer, mountain bike equipment producer, or even a footwear producer. If your students are more comfortable with databases, ask them to choose a company that would challenge them such as a fast food restaurant, online book seller, or even a university’s course registration system. The important part of this exercise is for your students to begin to understand how the tables in a database relate. Be sure their ER diagrams include primary keys and foreign keys. Have your students present their ER diagrams to the class and ask the students to find any potential errors with the diagrams.

24. Reduced Information Redundancy Databases reduce information redundancy Redundancy – the duplication of information or storing the same information in multiple places Inconsistency is one of the primary problems with redundant information One of the primary goals of a database is to eliminate information redundancy by recording each piece of information in only one place This is a good time to tie the discussion back to the material in the previous chapter, low quality information Recall what happens when a single customer is stored twice with different phone numbers, addresses, or order information in a single databaseOne of the primary goals of a database is to eliminate information redundancy by recording each piece of information in only one place This is a good time to tie the discussion back to the material in the previous chapter, low quality information Recall what happens when a single customer is stored twice with different phone numbers, addresses, or order information in a single database

25. Increase Information Integrity (Quality) Information integrity – measures the quality of information Integrity constraint – rules that help ensure the quality of information Relational integrity constraint Business-critical integrity constraint Relational integrity constraint – rule that enforces basic and fundamental information-based constraints Business-critical integrity constraint – rule that enforce business rules vital to an organization’s success and often require more insight and knowledge than relational integrity constraints Can you define two relational integrity constraints for an ordering system? Users cannot create an order for a nonexistent customer An order cannot be shipped without an address Can you define two business-critical integrity constraints for an ordering system? Product returns are not accepted for fresh product 15 days after purchase A discount maximum of 20 percent Relational integrity constraint – rule that enforces basic and fundamental information-based constraints Business-critical integrity constraint – rule that enforce business rules vital to an organization’s success and often require more insight and knowledge than relational integrity constraints Can you define two relational integrity constraints for an ordering system? Users cannot create an order for a nonexistent customer An order cannot be shipped without an address Can you define two business-critical integrity constraints for an ordering system? Product returns are not accepted for fresh product 15 days after purchase A discount maximum of 20 percent

26. Increased Information Security Information is an organizational asset and must be protected Databases offer several security features including: Password – provides authentication of the user Access level – determines who has access to the different types of information Access control – determines types of user access, such as read-only access Why you would want to define access level security? Access levels will typically mimic the hierarchical structure of the organization and protect organizational information from being viewed and manipulated by individuals who should not have access to the sensitive or confidential information Low level employees typically have the lowest levels of access High level employees typically have access to all types of database information For example: You would not want analysts viewing all salary information for the entire company - in general: Analysts can usually only view their own salary Managers have higher access and can view the salaries of all their team members, but cannot view other managers’ salaries Directors can view all of their managers’ and analysts’ salaries, but not other directors’ salaries The CFO and CEO can view every employee’s salaryWhy you would want to define access level security? Access levels will typically mimic the hierarchical structure of the organization and protect organizational information from being viewed and manipulated by individuals who should not have access to the sensitive or confidential information Low level employees typically have the lowest levels of access High level employees typically have access to all types of database information For example: You would not want analysts viewing all salary information for the entire company - in general: Analysts can usually only view their own salary Managers have higher access and can view the salaries of all their team members, but cannot view other managers’ salaries Directors can view all of their managers’ and analysts’ salaries, but not other directors’ salaries The CFO and CEO can view every employee’s salary

27. Database Management Systems Database management systems (DBMS) – software through which users and application programs interact with a database Discuss the two primary forms of user interaction with a database Direct interaction – The user interacts directly with the DBMS The DBMS obtains the information from the database Indirect interaction User interacts with an application (i.e., payroll application, manufacturing application, sales application) The application interacts with the DBMS The DBMS obtains the information from the database Discuss the two primary forms of user interaction with a database Direct interaction – The user interacts directly with the DBMS The DBMS obtains the information from the database Indirect interaction User interacts with an application (i.e., payroll application, manufacturing application, sales application) The application interacts with the DBMS The DBMS obtains the information from the database

28. Data-Driven Websites Data-driven websites – an interactive website kept constantly updated and relevant to the needs of its customers through the use of a database A data-driven website is an interactive website kept constantly updated and relevant to the needs of its customers through the use of a database. Data-driven websites are especially useful when the site offers a great deal of information, products, or services. website visitors are frequently angered if they are buried under an avalanche of information when searching a website. A data-driven website invites visitors to select and view what they are interested in by inserting a query, which the website then analyzes and custom builds a Web page in real-time that satisfies the query. The figure displays a Wikipedia user querying business intelligence and the database sending back the appropriate Web page that satisfies the user’s request Ask your students what would happen to a website that is not data-driven? The users would need to continually update the website data manually as the business data is updated. This would be a redundant effort and most likely result in errors and the website could quickly become out of sync with the business data A data-driven website is an interactive website kept constantly updated and relevant to the needs of its customers through the use of a database. Data-driven websites are especially useful when the site offers a great deal of information, products, or services. website visitors are frequently angered if they are buried under an avalanche of information when searching a website. A data-driven website invites visitors to select and view what they are interested in by inserting a query, which the website then analyzes and custom builds a Web page in real-time that satisfies the query. The figure displays a Wikipedia user querying business intelligence and the database sending back the appropriate Web page that satisfies the user’s request Ask your students what would happen to a website that is not data-driven? The users would need to continually update the website data manually as the business data is updated. This would be a redundant effort and most likely result in errors and the website could quickly become out of sync with the business data

29. Data-Driven Websites The customer enters search critieria in the website The database runs a query on the search critieria The customer enters search critieria in the website The database runs a query on the search critieria

30. Data-Driven Website Business Advantages Development Content Management Future Expandability Minimizing Human Error Cutting Production and Update Costs More Efficient Improved Stability Data Driven Website Advantages Development: Allows the website owner to make changes any time—all without having to rely on a developer or knowing HTML programming. A well-structured, data-driven website enables updating with little or no training. Content management: A static website requires a programmer to make updates. This adds an unnecessary layer between the business and its Web content, which can lead to misunderstandings and slow turnarounds for desired changes. Future expandability: Having a data-driven website enables the site to grow faster than would be possible with a static site. Changing the layout, displays, and functionality of the site (adding more features and sections) is easier with a data-driven solution. Minimizing human error: Even the most competent programmer charged with the task of maintaining many pages will overlook things and make mistakes. This will lead to bugs and inconsistencies that can be time consuming and expensive to track down and fix. Unfortunately, users who come across these bugs will likely become irritated and may leave the site. A well-designed, data-driven website will have ”error trapping” mechanisms to ensure that required information is filled out correctly and that content is entered and displayed in its correct format. Cutting production and update costs: A data-driven website can be updated and ”published” by any competent data entry or administrative person. In addition to being convenient and more affordable, changes and updates will take a fraction of the time that they would with a static site. While training a competent programmer can take months or even years, training a data entry person can be done in 30 to 60 minutes. More efficient: By their very nature, computers are excellent at keeping volumes of information intact. With a data-driven solution, the system keeps track of the templates, so users do not have to. Global changes to layout, navigation, or site structure would need to be programmed only once, in one place, and the site itself will take care of propagating those changes to the appropriate pages and areas. A data-driven infrastructure will improve the reliability and stability of a website, while greatly reducing the chance of ”breaking” some part of the site when adding new areas. Improved Stability: Any programmer who has to update a website from ”static” templates must be very organized to keep track of all the source files. If a programmer leaves unexpectedly, it could involve re-creating existing work if those source files cannot be found. Plus, if there were any changes to the templates, the new programmer must be careful to use only the latest version. With a data-driven website, there is peace of mind, knowing the content is never lost—even if your programmer is.Data Driven Website Advantages Development: Allows the website owner to make changes any time—all without having to rely on a developer or knowing HTML programming. A well-structured, data-driven website enables updating with little or no training. Content management: A static website requires a programmer to make updates. This adds an unnecessary layer between the business and its Web content, which can lead to misunderstandings and slow turnarounds for desired changes. Future expandability: Having a data-driven website enables the site to grow faster than would be possible with a static site. Changing the layout, displays, and functionality of the site (adding more features and sections) is easier with a data-driven solution. Minimizing human error: Even the most competent programmer charged with the task of maintaining many pages will overlook things and make mistakes. This will lead to bugs and inconsistencies that can be time consuming and expensive to track down and fix. Unfortunately, users who come across these bugs will likely become irritated and may leave the site. A well-designed, data-driven website will have ”error trapping” mechanisms to ensure that required information is filled out correctly and that content is entered and displayed in its correct format. Cutting production and update costs: A data-driven website can be updated and ”published” by any competent data entry or administrative person. In addition to being convenient and more affordable, changes and updates will take a fraction of the time that they would with a static site. While training a competent programmer can take months or even years, training a data entry person can be done in 30 to 60 minutes. More efficient: By their very nature, computers are excellent at keeping volumes of information intact. With a data-driven solution, the system keeps track of the templates, so users do not have to. Global changes to layout, navigation, or site structure would need to be programmed only once, in one place, and the site itself will take care of propagating those changes to the appropriate pages and areas. A data-driven infrastructure will improve the reliability and stability of a website, while greatly reducing the chance of ”breaking” some part of the site when adding new areas. Improved Stability: Any programmer who has to update a website from ”static” templates must be very organized to keep track of all the source files. If a programmer leaves unexpectedly, it could involve re-creating existing work if those source files cannot be found. Plus, if there were any changes to the templates, the new programmer must be careful to use only the latest version. With a data-driven website, there is peace of mind, knowing the content is never lost—even if your programmer is.

31. Data-Driven Business Intelligence The above figure displays data-driven BI The customer enters search criteria in the website The database runs a query on the search criteria The company can gain BI by viewing how often items are searched, which item is searched the most – the least, etc. Companies can gain business intelligence by viewing the data accessed and analyzed from their website. The figure displays how running queries or using analytical tools, such as a Pivot Table, on the database that is attached to the website can offer insight into the business, such as items browsed, frequent requests, items bought together, etc. The above figure displays data-driven BI The customer enters search criteria in the website The database runs a query on the search criteria The company can gain BI by viewing how often items are searched, which item is searched the most – the least, etc. Companies can gain business intelligence by viewing the data accessed and analyzed from their website. The figure displays how running queries or using analytical tools, such as a Pivot Table, on the database that is attached to the website can offer insight into the business, such as items browsed, frequent requests, items bought together, etc.

32. Integrating Information among Multiple Databases Integration – allows separate systems to communicate directly with each other Forward integration – takes information entered into a given system and sends it automatically to all downstream systems and processes Backward integration – takes information entered into a given system and sends it automatically to all upstream systems and processes One of the biggest benefits of integration is that organizations only have to enter information into the systems once and it is automatically sent to all of the other systems throughout the organization This feature alone creates huge advantages for organizations because it reduces information redundancy and ensures accuracy and completeness Without integrations an organization would have to enter information into every single system that requires the information from marketing and sales to billing and customer service For example, customer information would have to be manually entered into the marketing, sales, ordering, inventory, billing, and shipping databases. (Each of these systems are separate and would have their own database – if the company doesn’t have a complete ERP installed.) Entering the same customer information into multiple systems is redundant, and chances of making a mistake in one of the systems is high Integrations offer many advantages, but for the most part, the automated flow of information among separate systems is the biggest benefit One of the biggest benefits of integration is that organizations only have to enter information into the systems once and it is automatically sent to all of the other systems throughout the organization This feature alone creates huge advantages for organizations because it reduces information redundancy and ensures accuracy and completeness Without integrations an organization would have to enter information into every single system that requires the information from marketing and sales to billing and customer service For example, customer information would have to be manually entered into the marketing, sales, ordering, inventory, billing, and shipping databases. (Each of these systems are separate and would have their own database – if the company doesn’t have a complete ERP installed.) Entering the same customer information into multiple systems is redundant, and chances of making a mistake in one of the systems is high Integrations offer many advantages, but for the most part, the automated flow of information among separate systems is the biggest benefit

33. Integrating Information among Multiple Databases Forward integration Identify the arrows along the top of the figure when explaining forward integrations Basically, all information flows forward along the business process Sales enters the information when it is negotiating the sale (looking for opportunities) The information is then passed to the order entry system when the order is actually placed The order fulfillment system picks the products from the warehouse, packs the products, labels boxes, etc Once the order is filled and shipped, the customer is billed What would happen if users could enter order information directly into the billing system? The systems would quickly become out-of-sync. There might be bills for nonexistent orders, or orders that do not have any bills (if someone deleted a bill) For this reason organizations typically place a business-critical integrity constraint on integrated systems: With a forward integration the information must be entered in the sales system, you could not enter information directly into the billing system Integrations are expensive to build and maintain Integrations are difficult to implement For these reasons many organizations only build forward integrations and use business-critical integrity constraints to ensure all information is always entered only at the start of the integration (one source of record) Identify the arrows along the top of the figure when explaining forward integrations Basically, all information flows forward along the business process Sales enters the information when it is negotiating the sale (looking for opportunities) The information is then passed to the order entry system when the order is actually placed The order fulfillment system picks the products from the warehouse, packs the products, labels boxes, etc Once the order is filled and shipped, the customer is billed What would happen if users could enter order information directly into the billing system? The systems would quickly become out-of-sync. There might be bills for nonexistent orders, or orders that do not have any bills (if someone deleted a bill) For this reason organizations typically place a business-critical integrity constraint on integrated systems: With a forward integration the information must be entered in the sales system, you could not enter information directly into the billing system Integrations are expensive to build and maintain Integrations are difficult to implement For these reasons many organizations only build forward integrations and use business-critical integrity constraints to ensure all information is always entered only at the start of the integration (one source of record)

34. Integrating Information among Multiple Databases Backward integration Identify the arrows along the bottom of the figure when explaining backward integrations Basically, all information flows backward along the business process Billing enters information and this information is passed back to the order system The order fulfillment system passes the information back to the order entry system The order entry system passes the information back to the sales system Why would an organization want to build both forward and backward integrations? This allows users to enter information at any point in the business process and the information is automatically sent upstream and downstream to all other systems For example, if order fulfillment determined that they could not fulfill an order (the product had been discontinued), they could simply enter this information into the database and it would be sent automatically upstream to the sales representative who could contact the customer and downstream to billing to remove the item from the billIdentify the arrows along the bottom of the figure when explaining backward integrations Basically, all information flows backward along the business process Billing enters information and this information is passed back to the order system The order fulfillment system passes the information back to the order entry system The order entry system passes the information back to the sales system Why would an organization want to build both forward and backward integrations? This allows users to enter information at any point in the business process and the information is automatically sent upstream and downstream to all other systems For example, if order fulfillment determined that they could not fulfill an order (the product had been discontinued), they could simply enter this information into the database and it would be sent automatically upstream to the sales representative who could contact the customer and downstream to billing to remove the item from the bill

35. Integrating Information among Multiple Databases Building a central repository specifically for integrated information The above figure displays an example of customer information integrated using this method Users can create, read, update, and delete in the main customer repository, and it is automatically sent to all of the other databases This method does not follow the business process when building the integrations Business-critical integrity constraints still need to be built to ensure information is only ever entered into the customer repository, otherwise the information will become out-of-sync The above figure displays an example of customer information integrated using this method Users can create, read, update, and delete in the main customer repository, and it is automatically sent to all of the other databases This method does not follow the business process when building the integrations Business-critical integrity constraints still need to be built to ensure information is only ever entered into the customer repository, otherwise the information will become out-of-sync

36. OPENING CASE STUDY QUESTIONSIt Takes A Village to Write an Encyclopedia Determine if an entry in Wikipedia is an example of transactional information or analytical information What is the impact to Wikipedia if the information contained in its database is of low quality? Review the five common characteristics of high quality information and rank them in order of importance to Wikipedia 1. Determine if an entry in Wikipedia is an example of transactional information or analytical information. From the customer’s perspective Wikipeida entries are an example of analytical information. They are using the information to research a topic, make a decision, or perform an analysis. From Wikipedia’s perspective each entry is an example of transactional information since it is their primary business to gain entries from individual contributors. 2. What is the impact to Wikipedia if the information contained in its database is of low quality? If Wikipedia contained information that was inaccurate its customers would discontinue using it as a source for information. It could also find itself in legal trouble if it allows entries stating inaccurate information about people, which is known as defamation of character. This point is demonstrated in the case when Wikipedia had to start restricting access by tightening its rules for submitting entries following the disclosure that it ran a piece falsely implicating a man in the Kennedy assassination.   3. Review the five common characteristics of high quality information and rank them in order of importance to Wikipedia. Student answers to this question will vary depending on their personal views and experiences with technology. The important part of the question is understanding the students’ justifications for their order. Potential order of importance: Timeliness – Wikipedia’s information must be timely. If users are receiving old and outdated entries, or no entries for a new topic, they will not continue using Wikipedia. An encyclopedia that is outdated is not very useful. Accuracy – Wikipedia’s entries must be accurate, and if they are inaccurate the users can change the definition to ensure it is accurate. An encyclopedia that is inaccurate is useless. Consistency – Wikipedia’s results must be consistent. Users will not trust the system if it provides different definitions for the same entry. An encyclopedia that offers inconsistent terms is not useful. Completeness – Wikipedia’s entry results need to be complete. An encyclopedia that does not contain vast amounts of information is not useful. Uniqueness – Wikipedia’s customers want unique answers to each entry. Multiple answers to a term will confuse the customer and they will not be able to know which answer is correct. An encyclopedia cannot have multiple answers for each term. 1. Determine if an entry in Wikipedia is an example of transactional information or analytical information. From the customer’s perspective Wikipeida entries are an example of analytical information. They are using the information to research a topic, make a decision, or perform an analysis. From Wikipedia’s perspective each entry is an example of transactional information since it is their primary business to gain entries from individual contributors. 2. What is the impact to Wikipedia if the information contained in its database is of low quality? If Wikipedia contained information that was inaccurate its customers would discontinue using it as a source for information. It could also find itself in legal trouble if it allows entries stating inaccurate information about people, which is known as defamation of character. This point is demonstrated in the case when Wikipedia had to start restricting access by tightening its rules for submitting entries following the disclosure that it ran a piece falsely implicating a man in the Kennedy assassination.   3. Review the five common characteristics of high quality information and rank them in order of importance to Wikipedia. Student answers to this question will vary depending on their personal views and experiences with technology. The important part of the question is understanding the students’ justifications for their order. Potential order of importance: Timeliness – Wikipedia’s information must be timely. If users are receiving old and outdated entries, or no entries for a new topic, they will not continue using Wikipedia. An encyclopedia that is outdated is not very useful. Accuracy – Wikipedia’s entries must be accurate, and if they are inaccurate the users can change the definition to ensure it is accurate. An encyclopedia that is inaccurate is useless. Consistency – Wikipedia’s results must be consistent. Users will not trust the system if it provides different definitions for the same entry. An encyclopedia that offers inconsistent terms is not useful. Completeness – Wikipedia’s entry results need to be complete. An encyclopedia that does not contain vast amounts of information is not useful. Uniqueness – Wikipedia’s customers want unique answers to each entry. Multiple answers to a term will confuse the customer and they will not be able to know which answer is correct. An encyclopedia cannot have multiple answers for each term.

37. OPENING CASE STUDY QUESTIONSIt Takes A Village to Write an Encyclopedia How is Wikipedia resolving the issue of poor information? Identify the different types of entities that might be stored in Wikipedia’s database Why is database technology so important to Wikipedia’s business model? 4. How is Wikipedia resolving the issue of poor information? Wikipedia originally allowed unrestricted access so that people could contribute to the site without undergoing a registration process. As with any database management system, governance is a key issue. Without governance, there is no control over how information is published and maintained. But as Websites like Wikipedia grow in volume, it will be nearly impossible to govern them. Wikipedia began tightening its rules for submitting entries following the disclosure that it ran a piece falsely implication a man in the Kennedy assassination. Wikipedia now requires users to register before they can create articles. 5. Identify the different types of entities that might be stored in Wikipedia’s database. Entities could include: SUBJECT AREA SEARCH TERM WEB PAGE RESOURCE EDITOR 6. Why is database technology so important to Wikipedia’s business model? Without databases, Wikipedia simply would not exist for two primary reasons. First, vast amounts of information are at the heart of Wikipedia and without databases it would be impossible to store and retrieve the information. This is the information that Wikipedia’s customers are editing and researching. Second, Wikipedia uses database to store its indexes and to find and retrieve the information that its customers are looking for. Again, without databases Wikipedia simply would not exist – its business operates entirely on databases. 4. How is Wikipedia resolving the issue of poor information? Wikipedia originally allowed unrestricted access so that people could contribute to the site without undergoing a registration process. As with any database management system, governance is a key issue. Without governance, there is no control over how information is published and maintained. But as Websites like Wikipedia grow in volume, it will be nearly impossible to govern them. Wikipedia began tightening its rules for submitting entries following the disclosure that it ran a piece falsely implication a man in the Kennedy assassination. Wikipedia now requires users to register before they can create articles. 5. Identify the different types of entities that might be stored in Wikipedia’s database. Entities could include: SUBJECT AREA SEARCH TERM WEB PAGE RESOURCE EDITOR 6. Why is database technology so important to Wikipedia’s business model? Without databases, Wikipedia simply would not exist for two primary reasons. First, vast amounts of information are at the heart of Wikipedia and without databases it would be impossible to store and retrieve the information. This is the information that Wikipedia’s customers are editing and researching. Second, Wikipedia uses database to store its indexes and to find and retrieve the information that its customers are looking for. Again, without databases Wikipedia simply would not exist – its business operates entirely on databases.

38. SECTION 6.2 DATA WAREHOUSE FUNDAMENTALS

39. LEARNING OUTCOMES Describe the roles and purposes of data warehouses and data marts in an organization Compare the multidimensional nature of data warehouses (and data marts) with the two-dimensional nature of databases 6.8 Describe the roles and purposes of data warehouses and data marts in an organization The primary purpose of data warehouses and data marts are to perform analytical processing or OLAP The insights into organizational information that can be gained from analytical processing are instrumental in setting strategic directions and goals 6.9 Compare the multidimensional nature of data warehouses (and data marts) with the two-dimensional nature of databases Databases contain information in a series of two-dimensional tables, which means that you can only ever view two dimensions of information at one time. In a data warehouse and data mart, information is multidimensional, it contains layers of columns and rows. Each layer in a data warehouse or data mart represents information according to an additional dimension. Dimensions could include such things as products, promotions, stores, category, region, stock price, date, time, and even the weather. The ability to look at information from different dimensions can add tremendous business insight. 6.8 Describe the roles and purposes of data warehouses and data marts in an organization The primary purpose of data warehouses and data marts are to perform analytical processing or OLAP The insights into organizational information that can be gained from analytical processing are instrumental in setting strategic directions and goals 6.9 Compare the multidimensional nature of data warehouses (and data marts) with the two-dimensional nature of databases Databases contain information in a series of two-dimensional tables, which means that you can only ever view two dimensions of information at one time. In a data warehouse and data mart, information is multidimensional, it contains layers of columns and rows. Each layer in a data warehouse or data mart represents information according to an additional dimension. Dimensions could include such things as products, promotions, stores, category, region, stock price, date, time, and even the weather. The ability to look at information from different dimensions can add tremendous business insight.

40. LEARNING OUTCOMES Identify the importance of ensuring the cleanliness of information throughout an organization Explain the relationship between business intelligence and a data warehouse 6.10 Identify the importance of ensuring the cleanliness of information throughout an organization An organization must maintain high-quality information in the data warehouse Information cleansing and scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information Without high-quality information the organization will be unable to make good business decisions 6.11 Explain the relationship between business intelligence and a data warehouse. A data warehouse is an enabler of business intelligence. The purpose of a data warehouse is to pull all kinds of disparate information into a single location where it is cleansed and scrubbed for analysis.6.10 Identify the importance of ensuring the cleanliness of information throughout an organization An organization must maintain high-quality information in the data warehouse Information cleansing and scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information Without high-quality information the organization will be unable to make good business decisions 6.11 Explain the relationship between business intelligence and a data warehouse. A data warehouse is an enabler of business intelligence. The purpose of a data warehouse is to pull all kinds of disparate information into a single location where it is cleansed and scrubbed for analysis.

41. HISTORY OF DATA WAREHOUSING Data warehouses extend the transformation of data into information In the 1990’s executives became less concerned with the day-to-day business operations and more concerned with overall business functions The data warehouse provided the ability to support decision making without disrupting the day-to-day operations CLASSROOM OPENER GREAT BUSINESS DECISIONS – Bill Inmon – The Father of the Data Warehouse Bill Inmon, is recognized as the "father of the data warehouse" and co-creator of the "Corporate Information Factory." He has 35 years of experience in database technology management and data warehouse design. He is known globally for his seminars on developing data warehouses and has been a keynote speaker for every major computing association and many industry conferences, seminars, and tradeshows. As an author, Bill has written about a variety of topics on the building, usage, and maintenance of the data warehouse and the Corporate Information Factory. He has written more than 650 articles, many of them have been published in major computer journals such as Datamation, ComputerWorld, DM Review and Byte Magazine. Bill currently publishes a free weekly newsletter for the Business Intelligence Network, and has been a major contributor since its inception. http://www.b-eye-network.com/home/ CLASSROOM OPENER GREAT BUSINESS DECISIONS – Bill Inmon – The Father of the Data Warehouse Bill Inmon, is recognized as the "father of the data warehouse" and co-creator of the "Corporate Information Factory." He has 35 years of experience in database technology management and data warehouse design. He is known globally for his seminars on developing data warehouses and has been a keynote speaker for every major computing association and many industry conferences, seminars, and tradeshows. As an author, Bill has written about a variety of topics on the building, usage, and maintenance of the data warehouse and the Corporate Information Factory. He has written more than 650 articles, many of them have been published in major computer journals such as Datamation, ComputerWorld, DM Review and Byte Magazine. Bill currently publishes a free weekly newsletter for the Business Intelligence Network, and has been a major contributor since its inception. http://www.b-eye-network.com/home/

42. DATA WAREHOUSE FUNDAMENTALS 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 What is the primary difference between a database and data warehouse? The primary difference between a database and a data warehouse is that a database stores information for a single application, whereas a data warehouse stores information from multiple databases, or multiple applications, and external information such as industry information This enables cross-functional analysis, industry analysis, market analysis, etc., all from a single repository Data warehouses support only analytical processing (OLAP)What is the primary difference between a database and data warehouse? The primary difference between a database and a data warehouse is that a database stores information for a single application, whereas a data warehouse stores information from multiple databases, or multiple applications, and external information such as industry information This enables cross-functional analysis, industry analysis, market analysis, etc., all from a single repository Data warehouses support only analytical processing (OLAP)

43. DATA WAREHOUSE FUNDAMENTALS Extraction, transformation, and loading (ETL) – a process that extracts information from internal and external databases, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouse Data mart – contains a subset of data warehouse information The ETL process gathers data from the internal and external databases and passes it to the data warehouse The ETL process also gathers data from the data warehouse and passes it to the data martsThe ETL process gathers data from the internal and external databases and passes it to the data warehouse The ETL process also gathers data from the data warehouse and passes it to the data marts

44. DATA WAREHOUSE FUNDAMENTALS The data warehouse modeled in the above figure compiles information from internal databases or transactional/operational databases and external databases through ETL It then send subsets of information to the data marts through the ETL process Ask your students to distinguish between a data warehouse and a data mart? Ans: A data warehouse has an enterprisewide organizational focus, while a data mart focuses on a subset of information for a given business unit such as financeThe data warehouse modeled in the above figure compiles information from internal databases or transactional/operational databases and external databases through ETL It then send subsets of information to the data marts through the ETL process Ask your students to distinguish between a data warehouse and a data mart? Ans: A data warehouse has an enterprisewide organizational focus, while a data mart focuses on a subset of information for a given business unit such as finance

45. 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 Each layer in a data warehouse or data mart represents information according to an additional dimension Dimensions could include such things as: Products Promotions Stores Category Region Stock price Date Time Weather Why is the ability to look at information based on different dimensions critical to a businesses success? Ans: The ability to look at information from different dimensions can add tremendous business insight By slicing-and-dicing the information a business can uncover great unexpected insightsEach layer in a data warehouse or data mart represents information according to an additional dimension Dimensions could include such things as: Products Promotions Stores Category Region Stock price Date Time Weather Why is the ability to look at information based on different dimensions critical to a businesses success? Ans: The ability to look at information from different dimensions can add tremendous business insight By slicing-and-dicing the information a business can uncover great unexpected insights

46. Multidimensional Analysis Cube – common term for the representation of multidimensional information Users can slice and dice the cube to drill down into the information Cube A represents store information (the layers), product information (the rows), and promotion information (the columns) Cube B represents a slice of information displaying promotion II for all products at all stores Cube C represents a slice of information displaying promotion III for product B at store 2 CLASSROOM EXERCISE Analyzing Multiple Dimensions of Information Jump! is a company that specializes in making sports equipment, primarily basketballs, footballs, and soccer balls. The company currently sells to four primary distributors and buys all of its raw materials and manufacturing materials from a single vendor. Break your students into groups and ask them to develop a single cube of information that would give the company the greatest insight into its business (or business intelligence) given the following choices: Product A, B, C, and D Distributor X, Y, and Z Promotion I, II, and III Sales Season Date/Time Salesperson Karen and John Vendor Smithson Remember you can pick only 3 dimensions of information for the cube, they need to pick the best 3 Product Sales Promotion These give the three most business-critical pieces of information Users can slice and dice the cube to drill down into the information Cube A represents store information (the layers), product information (the rows), and promotion information (the columns) Cube B represents a slice of information displaying promotion II for all products at all stores Cube C represents a slice of information displaying promotion III for product B at store 2 CLASSROOM EXERCISE Analyzing Multiple Dimensions of Information Jump! is a company that specializes in making sports equipment, primarily basketballs, footballs, and soccer balls. The company currently sells to four primary distributors and buys all of its raw materials and manufacturing materials from a single vendor. Break your students into groups and ask them to develop a single cube of information that would give the company the greatest insight into its business (or business intelligence) given the following choices: Product A, B, C, and D Distributor X, Y, and Z Promotion I, II, and III Sales Season Date/Time Salesperson Karen and John Vendor Smithson Remember you can pick only 3 dimensions of information for the cube, they need to pick the best 3 Product Sales Promotion These give the three most business-critical pieces of information

47. 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 This is a an excellent time to return to the information learned in Chapter 6 on high-quality and low-quality information What would happen if the information contained in the data warehouse was only about 70 percent accurate? Would you use this information to make business decisions? Is it realistic to assume that an organization could get to a 100% accuracy level on information contained in its data warehouse? No, it is too expensiveThis is a an excellent time to return to the information learned in Chapter 6 on high-quality and low-quality information What would happen if the information contained in the data warehouse was only about 70 percent accurate? Would you use this information to make business decisions? Is it realistic to assume that an organization could get to a 100% accuracy level on information contained in its data warehouse? No, it is too expensive

48. Information Cleansing or Scrubbing Contact information in an operational system Taking a look at customer information highlights why information cleansing and scrubbing is necessary Customer information exists in several operational systems In each system all details of this customer information could change form the customer ID to contact information Determining which contact information is accurate and correct for this customer depends on the business process that is being executedTaking a look at customer information highlights why information cleansing and scrubbing is necessary Customer information exists in several operational systems In each system all details of this customer information could change form the customer ID to contact information Determining which contact information is accurate and correct for this customer depends on the business process that is being executed

49. Information Cleansing or Scrubbing Standardizing Customer name from Operational Systems Ask your students if they have ever received more than one piece of identical mail, such as a flyer, catalog, or application If so, ask them why this might have occurred Could it have occurred because their name was in many different disparate systems? What is the cost to the business of sending multiple identical marketing materials to the same customers? Expense Risk of alienating customersAsk your students if they have ever received more than one piece of identical mail, such as a flyer, catalog, or application If so, ask them why this might have occurred Could it have occurred because their name was in many different disparate systems? What is the cost to the business of sending multiple identical marketing materials to the same customers? Expense Risk of alienating customers

50. Information Cleansing or Scrubbing Information cleansing allows an organization to fix these types of inconsistencies and cleans the data in the data warehouseInformation cleansing allows an organization to fix these types of inconsistencies and cleans the data in the data warehouse

51. Information Cleansing or Scrubbing Accurate and complete information Why do you think most businesses cannot achieve 100% accurate and complete information? If they had to choose a percentage for acceptable information what would it be and why? Some companies are willing to go as low as 20% complete just to find business intelligence Few organizations will go below 50% accurate – the information is useless if it is not accurate Achieving perfect information is almost impossible The more complete and accurate an organization wants to get its information, the more it costs The tradeoff between perfect information lies in accuracy verses completeness Accurate information means it is correct, while complete information means there are no blanks Most organizations determine a percentage high enough to make good decisions at a reasonable cost, such as 85% accurate and 65% completeWhy do you think most businesses cannot achieve 100% accurate and complete information? If they had to choose a percentage for acceptable information what would it be and why? Some companies are willing to go as low as 20% complete just to find business intelligence Few organizations will go below 50% accurate – the information is useless if it is not accurate Achieving perfect information is almost impossible The more complete and accurate an organization wants to get its information, the more it costs The tradeoff between perfect information lies in accuracy verses completeness Accurate information means it is correct, while complete information means there are no blanks Most organizations determine a percentage high enough to make good decisions at a reasonable cost, such as 85% accurate and 65% complete

52. Data Mining and Business Intelligence Data mining – the process of analyzing data to extract information not offered by the raw data alone To perform data mining users need data-mining tools Data-mining tools helps users uncover BI Data mining can begin at a summary information level (coarse granularity) and progress through increasing levels of detail (drilling down), or the reverse (drilling up) Data-mining tool – uses a variety of techniques to find patterns and relationships in large volumes of information and infers rules that predict future behavior and guide decision making Data-mining tools include query tools, reporting tools, multidimensional analysis tools, statistical tools, and intelligent agents Ask your students to provide an example of what an accountant might discover through the use of data-mining tools Ans: An accountant could drill down into the details of all of the expense and revenue finding great business intelligence including which employees are spending the most amount of money on long-distance phone calls to which customers are returning the most products Could the data warehousing team at Enron have discovered the accounting inaccuracies that caused the company to go bankrupt? If the did spot them, what should the team have done? Data mining can begin at a summary information level (coarse granularity) and progress through increasing levels of detail (drilling down), or the reverse (drilling up) Data-mining tool – uses a variety of techniques to find patterns and relationships in large volumes of information and infers rules that predict future behavior and guide decision making Data-mining tools include query tools, reporting tools, multidimensional analysis tools, statistical tools, and intelligent agents Ask your students to provide an example of what an accountant might discover through the use of data-mining tools Ans: An accountant could drill down into the details of all of the expense and revenue finding great business intelligence including which employees are spending the most amount of money on long-distance phone calls to which customers are returning the most products Could the data warehousing team at Enron have discovered the accounting inaccuracies that caused the company to go bankrupt? If the did spot them, what should the team have done?

53. OPENING CASE STUDY QUESTIONSIt Takes A Village to Write an Encyclopedia How could Wikipedia use a data warehouse to improve its business operations? Why must Wikipedia cleanse or scrub the information in its data warehouse? How could a company use information from Wikipedia to gain business intelligence? 7. How could Wikipedia use a data warehouse to improve its business operations? Wikipedia could use a data warehouse to build a repository of information from sources all over the world. The data warehouse could be used to perform detailed analysis on subject matters ranging from history to medicine. 8. Why must Wikipedia cleanse or scrub the information in its data warehouse? Wikipedia must maintain high quality information in its data warehouse. Information cleansing and scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information. Without high quality information Wikipedia will be unable to offer customers accurate and complete information. 9. How could a company use information from Wikipedia to gain business intelligence? Business intelligence comes from such things as environmental scanning and market analysis. A company could use information from Wikipedia as external information in its data warehouse that could help it analyses new trends and technologies. 7. How could Wikipedia use a data warehouse to improve its business operations? Wikipedia could use a data warehouse to build a repository of information from sources all over the world. The data warehouse could be used to perform detailed analysis on subject matters ranging from history to medicine. 8. Why must Wikipedia cleanse or scrub the information in its data warehouse? Wikipedia must maintain high quality information in its data warehouse. Information cleansing and scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information. Without high quality information Wikipedia will be unable to offer customers accurate and complete information. 9. How could a company use information from Wikipedia to gain business intelligence? Business intelligence comes from such things as environmental scanning and market analysis. A company could use information from Wikipedia as external information in its data warehouse that could help it analyses new trends and technologies.

54. Closing Case OneGoogle How did the website RateMyProfessors.com solve its problem of low-quality information? Review the five common characteristics of high-quality information and rank them in order of importance to Google’s business What would be the ramifications to Google’s business if the search information it presented to its customers was of low quality? 1. How did the website RateMyProfessors.com solve its problem of low-quality information? The developers of the website turned to Google’s API to create an automatic verification tool. If Google finds enough mentions in conjunction with a new professor or university to be added to the database, then it considers the information valid and posts it to the website. 2. Review the five common characteristics of high-quality information and rank them in order of importance to Google’s business. Student answers to this question will vary depending on their personal views and experiences with technology. The important part of the question is understanding the students’ justifications for their order. Potential order of importance: Timeliness – Google’s information must be timely. If users are receiving old and outdated answers to their queries, they will not use Google for long. Accuracy – Google’s search results must be accurate Consistency – Google’s results must be consistent. Users will not trust the system if it provides different results for the same query Completeness – Google’s search results need to be complete; however, users understand that there could be thousands of answers to a search result and are not anticipating that Google find and provide thousands of answers for each query Uniqueness – Google’s users expect to receive unique answers to their queries, not the same search site listed over and over again 3. What would be the ramifications to Google’s business if the search information it presented to its customers was of low quality? Displaying links that do not work, links that have nothing to do with the query, or multiple duplication of links will cause customers to switch to a different search engine. If Google’s search results were of low-quality, they would quickly lose business. Since providing search results is Google’s primary line of business, it must display high-quality search results.1. How did the website RateMyProfessors.com solve its problem of low-quality information? The developers of the website turned to Google’s API to create an automatic verification tool. If Google finds enough mentions in conjunction with a new professor or university to be added to the database, then it considers the information valid and posts it to the website. 2. Review the five common characteristics of high-quality information and rank them in order of importance to Google’s business. Student answers to this question will vary depending on their personal views and experiences with technology. The important part of the question is understanding the students’ justifications for their order. Potential order of importance: Timeliness – Google’s information must be timely. If users are receiving old and outdated answers to their queries, they will not use Google for long. Accuracy – Google’s search results must be accurate Consistency – Google’s results must be consistent. Users will not trust the system if it provides different results for the same query Completeness – Google’s search results need to be complete; however, users understand that there could be thousands of answers to a search result and are not anticipating that Google find and provide thousands of answers for each query Uniqueness – Google’s users expect to receive unique answers to their queries, not the same search site listed over and over again 3. What would be the ramifications to Google’s business if the search information it presented to its customers was of low quality? Displaying links that do not work, links that have nothing to do with the query, or multiple duplication of links will cause customers to switch to a different search engine. If Google’s search results were of low-quality, they would quickly lose business. Since providing search results is Google’s primary line of business, it must display high-quality search results.

55. Closing Case OneGoogle Describe the different types of databases. Why should Google use a relational database? Identify the different types of entities, attributes, keys, and relationships that might be stored in Google’s AdWords relational database 4. Describe the different types of databases. Why should Google use a relational database? There are many different models for organizing information in a database, including the hierarchical database, network database, and the most prevalent—the relational database model. In a hierarchical database model, information is organized into a tree-like structure that allows repeating information using parent/child relationships, in such a way that it cannot have too many relationships. Hierarchical structures were widely used in the first mainframe database management systems. However, owing to their restrictions, hierarchical structures often cannot be used to relate to structures that exist in the real world. The network database model is a flexible way of representing objects and their relationships. Where the hierarchical model structures information as a tree of records, with each record having one parent record and many children, the network model allows each record to have multiple parent and child records, forming a lattice structure. The relational database model is a type of database that stores information in the form of logically related two-dimensional tables. The relational database model stores information in the form of logically related two-dimensional tables. Entities, entity classes, attributes, primary keys, and foreign keys are all fundamental concepts included in the relational database model. 5. Identify the different types of entities, attributes, keys, and relationships that might be stored in Google’s Adwords relational database. Entities could include: DOCUMENT TITLE SEARCH TERM WORD LOCATION WEB PAGE Attributes could include: Author Title Key words Category website location Lowest bid Highest bid Total hits Each table would need to define a primary key and could include: Document ID Search item ID Location ID Company ID The tables in the database would have 1-to-1 relationships, 1-to-many relationships, and many-to-many relationships. If you are planning on having your students design and build an ERD please review the associated Access and Database Technology Plug-Ins.4. Describe the different types of databases. Why should Google use a relational database? There are many different models for organizing information in a database, including the hierarchical database, network database, and the most prevalent—the relational database model. In a hierarchical database model, information is organized into a tree-like structure that allows repeating information using parent/child relationships, in such a way that it cannot have too many relationships. Hierarchical structures were widely used in the first mainframe database management systems. However, owing to their restrictions, hierarchical structures often cannot be used to relate to structures that exist in the real world. The network database model is a flexible way of representing objects and their relationships. Where the hierarchical model structures information as a tree of records, with each record having one parent record and many children, the network model allows each record to have multiple parent and child records, forming a lattice structure. The relational database model is a type of database that stores information in the form of logically related two-dimensional tables. The relational database model stores information in the form of logically related two-dimensional tables. Entities, entity classes, attributes, primary keys, and foreign keys are all fundamental concepts included in the relational database model. 5. Identify the different types of entities, attributes, keys, and relationships that might be stored in Google’s Adwords relational database. Entities could include: DOCUMENT TITLE SEARCH TERM WORD LOCATION WEB PAGE Attributes could include: Author Title Key words Category website location Lowest bid Highest bid Total hits Each table would need to define a primary key and could include: Document ID Search item ID Location ID Company ID The tables in the database would have 1-to-1 relationships, 1-to-many relationships, and many-to-many relationships. If you are planning on having your students design and build an ERD please review the associated Access and Database Technology Plug-Ins.

56. CLOSING CASE ONEGoogle How could Google use a data warehouse to improve its business operations? Why would Google need to scrub and cleanse the information in its data warehouse? Identify a data mart that Google’s marketing and sales department might use to track and analyze its AdWords revenue 6. How could Google use a data warehouse to improve its business operations? Google could use a data warehouse to contain not only internal organization information, but also external information such as market trends, competitor information, and industry trends. Google could then analyze its business across markets, among its competitors, and throughout different industries. 7. Why would Google need to scrub and cleanse the information in its data warehouse? Google must maintain high-quality information in its data warehouse. Information cleansing and scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information. Without high-quality information Google will be unable to make good business decisions. 8. Identify a data mart that Google’s marketing and sales department might use to track and analyze its AdWords revenue. One potential data mart might include information broken down by industry (products, telecommunications, health care, energy, travel, human services) and tracked against revenue by companies. This would tell Google which industries are using AdWords and which industries are untapped. It would also tell Google which customers in each industry are taking advantage of AdWords and perhaps would benefit from a specialized marketing plan, and which customers are not yet taking advantage of AdWords and might be interested in learning about the product.6. How could Google use a data warehouse to improve its business operations? Google could use a data warehouse to contain not only internal organization information, but also external information such as market trends, competitor information, and industry trends. Google could then analyze its business across markets, among its competitors, and throughout different industries. 7. Why would Google need to scrub and cleanse the information in its data warehouse? Google must maintain high-quality information in its data warehouse. Information cleansing and scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information. Without high-quality information Google will be unable to make good business decisions. 8. Identify a data mart that Google’s marketing and sales department might use to track and analyze its AdWords revenue. One potential data mart might include information broken down by industry (products, telecommunications, health care, energy, travel, human services) and tracked against revenue by companies. This would tell Google which industries are using AdWords and which industries are untapped. It would also tell Google which customers in each industry are taking advantage of AdWords and perhaps would benefit from a specialized marketing plan, and which customers are not yet taking advantage of AdWords and might be interested in learning about the product.

57. CLOSING CASE TWOMining the Data Warehouse How is Ben & Jerry’s using business intelligence to remain successful and competitive in a saturated market? Why is information cleansing and scrubbing critical to California Pizza Kitchen’s success? 1. How is Ben & Jerry’s using business intelligence tools to remain successful and competitive in a saturated market? Ben & jerry’s tracks the ingredients and life of each pint in a data warehouse. If a consumer calls in with a complaint, the consumer affairs staff matches up the pint with which supplier’s mile, eggs, or cherries, etc. did not meet the organization’s near-obsession with quality. 2. Why is information cleansing and scrubbing critical to California Pizza Kitchen’s business intelligence tool’s success? Financial statements must be as accurate and complete as possible. There have been too many instances in the past where shoddy financial statements have lead to financial crisis such as Enron and WorldCom. It does not matter how good or how many BI tools California Pizza Kitchen uses; if the core data is dirty the results will be inaccurate.1. How is Ben & Jerry’s using business intelligence tools to remain successful and competitive in a saturated market? Ben & jerry’s tracks the ingredients and life of each pint in a data warehouse. If a consumer calls in with a complaint, the consumer affairs staff matches up the pint with which supplier’s mile, eggs, or cherries, etc. did not meet the organization’s near-obsession with quality. 2. Why is information cleansing and scrubbing critical to California Pizza Kitchen’s business intelligence tool’s success? Financial statements must be as accurate and complete as possible. There have been too many instances in the past where shoddy financial statements have lead to financial crisis such as Enron and WorldCom. It does not matter how good or how many BI tools California Pizza Kitchen uses; if the core data is dirty the results will be inaccurate.

58. CLOSING CASE TWOMining the Data Warehouse Why is 100 percent accurate and complete information impossible for Noodles & Company to obtain? Describe how each of the companies above is using BI from their data warehouse to gain a competitive advantage 3. Why is 100 percent accurate and complete information impossible for Noodles & Company to obtain? Noodles & Company will never have 100 percent accurate and complete information. Perfect information is pricey. Achieving perfect information is almost impossible. The more complete and accurate an organization wants to get its information, the more it costs. The tradeoff between perfect information lies in accuracy verses completeness. Accurate information means it is correct, while complete information means there are no blanks. Most organizations determine a percentage high enough to make good decisions at a reasonable cost, such as 85% accurate and 65% complete. 4. Describe how each of the companies above is using BI from their data warehouse to gain a competitive advantage. Ben & Jerry’s is using BI to improve quality. Customers know that a pint of Ben & Jerry’s ice cream is of the highest quality. California Pizza Kitchen and Noodles & Company are using BI to improve financial analysis capabilities. Both companies can now receive more accurate and complete financial views of their businesses.3. Why is 100 percent accurate and complete information impossible for Noodles & Company to obtain? Noodles & Company will never have 100 percent accurate and complete information. Perfect information is pricey. Achieving perfect information is almost impossible. The more complete and accurate an organization wants to get its information, the more it costs. The tradeoff between perfect information lies in accuracy verses completeness. Accurate information means it is correct, while complete information means there are no blanks. Most organizations determine a percentage high enough to make good decisions at a reasonable cost, such as 85% accurate and 65% complete. 4. Describe how each of the companies above is using BI from their data warehouse to gain a competitive advantage. Ben & Jerry’s is using BI to improve quality. Customers know that a pint of Ben & Jerry’s ice cream is of the highest quality. California Pizza Kitchen and Noodles & Company are using BI to improve financial analysis capabilities. Both companies can now receive more accurate and complete financial views of their businesses.

59. CLOSING CASE THREE Harrah’s Identify the effects poor information might have on Harrah’s service-oriented business strategy How does Harrah’s uses database technologies to implement its service-oriented strategy? Harrah’s was one of the first casino companies to find value in offering rewards to customers who visit multiple Harrah’s locations. Describe the effects on the company if it did not build any integrations among the databases located at each of its casinos. How could Harrah’s use a data warehouse to synchronize customer information? 1. Identify the effects low-quality information might have on Harrah’s service-oriented business strategy Using the wrong information can lead to making the wrong decision. Making the wrong decision can cost time, money, and even reputations. Business decisions are only as good as the information used to make the decision. Low-quality information leads to low-quality business decisions. High-quality information can significantly improve the chances of making a good business decision and directly affect an organization’s bottom line. Harrah’s must use high-quality information whenever it is making business decisions, especially decisions that affect its service-oriented business strategy. 2. How does Harrah’s uses database technologies to implement its service-oriented strategy? Harrah’s implements a service-oriented strategy called Total Rewards. Total Rewards allows Harrah’s to give every single customer the appropriate amount of personal attention, whether it’s leaving sweets in the hotel room or offering free meals. Total Rewards works by providing each customer with an account and a corresponding card that the player swipes each time he or she plays a casino game. The program collects information, via a database, on the amount of time the customers gamble, their total winnings and losses, and their betting strategies. Customers earn points based on the amount of time they spend gambling, which they can then exchange for comps such as free dinners, hotel rooms, tickets to shows, and even cash. 3. Harrah’s was one of the first casino companies to find value in offering rewards to customers who visit multiple Harrah’s locations. Describe the effects on the company if it did not build any integrations among the databases located at each of its casinos Without database integration among its hotels and casinos, Harrah’s would be unable to determine what a customer’s true value is to the company. For example, a customer that spend $500,000 dollars at one casino might be treated like royalty. This same customer could visit another Harrah’s location, but since the information is not integrated, the new location would have no idea that they had a high-rolling customer on the premises and they might not treat the customer accordingly.1. Identify the effects low-quality information might have on Harrah’s service-oriented business strategy Using the wrong information can lead to making the wrong decision. Making the wrong decision can cost time, money, and even reputations. Business decisions are only as good as the information used to make the decision. Low-quality information leads to low-quality business decisions. High-quality information can significantly improve the chances of making a good business decision and directly affect an organization’s bottom line. Harrah’s must use high-quality information whenever it is making business decisions, especially decisions that affect its service-oriented business strategy. 2. How does Harrah’s uses database technologies to implement its service-oriented strategy? Harrah’s implements a service-oriented strategy called Total Rewards. Total Rewards allows Harrah’s to give every single customer the appropriate amount of personal attention, whether it’s leaving sweets in the hotel room or offering free meals. Total Rewards works by providing each customer with an account and a corresponding card that the player swipes each time he or she plays a casino game. The program collects information, via a database, on the amount of time the customers gamble, their total winnings and losses, and their betting strategies. Customers earn points based on the amount of time they spend gambling, which they can then exchange for comps such as free dinners, hotel rooms, tickets to shows, and even cash. 3. Harrah’s was one of the first casino companies to find value in offering rewards to customers who visit multiple Harrah’s locations. Describe the effects on the company if it did not build any integrations among the databases located at each of its casinos Without database integration among its hotels and casinos, Harrah’s would be unable to determine what a customer’s true value is to the company. For example, a customer that spend $500,000 dollars at one casino might be treated like royalty. This same customer could visit another Harrah’s location, but since the information is not integrated, the new location would have no idea that they had a high-rolling customer on the premises and they might not treat the customer accordingly.

60. Estimate the potential impact to Harrah’s business if there is a security breach in its customer information Identify three different types of data marts Harrah’s might want to build to help it analyze its operational performance CLOSING CASE THREE Harrah’s 4. Estimate the potential impact to Harrah’s business if there is a security breach in its customer information Some customers have concerns regarding Harrah’s information collection strategy since they want to keep their gambling information private. If there was a security violation and sensitive customer information was compromised Harrah’s would risk losing its customers’ trust and their business. 5. Identify three different types of data marts Harrah’s might want to build to help it analyze its operational performance Answers to this question will vary. Potential answers include (1) customers’ spending habits across properties, (2) repeat customer spending habits at a single location, (3) dealer sales at a location and across locations. 4. Estimate the potential impact to Harrah’s business if there is a security breach in its customer information Some customers have concerns regarding Harrah’s information collection strategy since they want to keep their gambling information private. If there was a security violation and sensitive customer information was compromised Harrah’s would risk losing its customers’ trust and their business. 5. Identify three different types of data marts Harrah’s might want to build to help it analyze its operational performance Answers to this question will vary. Potential answers include (1) customers’ spending habits across properties, (2) repeat customer spending habits at a single location, (3) dealer sales at a location and across locations.

61. What might occur if Harrah’s fails to clean or scrub its information before loading it into its data warehouse? 6. What might occur if Harrah’s fails to clean or scrub its information before loading it into its data warehouse? Harrah’s must maintain high quality information in its data warehouse. Information cleansing and scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information. Without high quality information Harrah’s will be unable to make good business decisions and operate its service-oriented strategy. 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 due to inaccurate invoices Inability to build strong customer relationships – which increases buyer power 6. What might occur if Harrah’s fails to clean or scrub its information before loading it into its data warehouse? Harrah’s must maintain high quality information in its data warehouse. Information cleansing and scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information. Without high quality information Harrah’s will be unable to make good business decisions and operate its service-oriented strategy. 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 due to inaccurate invoices Inability to build strong customer relationships – which increases buyer power

62. BUSINESS DRIVEN BEST SELLERS Business @ The Speed of Thought, by Bill Gates Business @ the Speed of Thought was written by Bill Gates to inspire you to demand—and get—more from technology, enabling you and your company to respond faster to your customers, adapt to changing business demands, and prosper in the digital economy. “How you gather, manage, and use information will determine whether you win or lose” is Bill Gates’ simple message. Business @ the Speed of Thought is not a technical book. It shows how business and technology are now inextricably linked. Each chapter is structured around a business or management issue, showing how digital processes can dramatically improve your results. Business @ the Speed of Thought was written by Bill Gates to inspire you to demand—and get—more from technology, enabling you and your company to respond faster to your customers, adapt to changing business demands, and prosper in the digital economy. “How you gather, manage, and use information will determine whether you win or lose” is Bill Gates’ simple message. Business @ the Speed of Thought is not a technical book. It shows how business and technology are now inextricably linked. Each chapter is structured around a business or management issue, showing how digital processes can dramatically improve your results.

63. BUSINESS DRIVEN BEST SELLERS Why Smart Executives Fail, by Sydney Finkelstein In Why Smart Executives Fail, Sydney Finkelstein, a professor of management at Dartmouth’s Tuck School of Business, explains why leadership fails and how company leaders can get back on track. This book shows examples from GM, Mattel, Motorola, Rite Aid, Webvan, and other companies as well as the results of six years of research on the issue of leadership failure. Finkelstein explains that the causes of failed management are surprisingly few, and they are not ineptitude or greed. Even the brightest executives fail because: ¦ They choose not to cope with innovation, change, and management. ¦ They misread the competition. ¦ They brilliantly fulfill the wrong vision. ¦ They cling to an inaccurate view of reality. ¦ They ignore vital information. ¦ They identify too closely with the company. In Why Smart Executives Fail, Sydney Finkelstein, a professor of management at Dartmouth’s Tuck School of Business, explains why leadership fails and how company leaders can get back on track. This book shows examples from GM, Mattel, Motorola, Rite Aid, Webvan, and other companies as well as the results of six years of research on the issue of leadership failure. Finkelstein explains that the causes of failed management are surprisingly few, and they are not ineptitude or greed. Even the brightest executives fail because: ¦ They choose not to cope with innovation, change, and management. ¦ They misread the competition. ¦ They brilliantly fulfill the wrong vision. ¦ They cling to an inaccurate view of reality. ¦ They ignore vital information. ¦ They identify too closely with the company.