Chapter 04- Data and Databases (1)_8de157779bdf311061715def3561901d (1).pdf
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Chapter 04 Data and Databases Summary Learning Objectives Upon successful completion of this chapter, you will be able to: Understand the role of data in Information Systems Understand the concepts of database and database management systems Discuss concepts of Business Intelligence...
Chapter 04 Data and Databases Summary Learning Objectives Upon successful completion of this chapter, you will be able to: Understand the role of data in Information Systems Understand the concepts of database and database management systems Discuss concepts of Business Intelligence © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 2 Data, Information, and Knowledge Data is raw facts Quantitative – numeric (Rainfall values 100mm, 120mm: Temperature 25C, 27C) Qualitative – descriptive (Customer Satisfaction: Excellent, Good, Bad) Information is when data is given context and more specific When data is processed to aid in decision making Knowledge is developed when information has been aggregated and analyzed to make decisions, set policies, and spark innovation Wisdom is the combination of knowledge and experience May take years to develop © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 3 Information Systems, Data and Databases © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 4 Background of Data and Information Systems Behind most of the Information Systems, there is a database to store data persistently (in a structured manner). This data is going to be used as (historical) data for future predictions, identifying valuable patterns for prospective sales opportunities, and government’s legislative requirements ( to be used in external audits) etc… Therefore, the manager should possess the skills in understanding, what databases are, how the databases are designed and on how to use them for storing and querying data as well. © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 5 Data and Information Systems Database e.g. Data of a completed transaction Data Data e.g. Price of a product Data Stored in Database is Used For: Application Software Maintaining records of past transactions E.g. Point of Sales System Data Analysis. E.g. Forecasting © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 6 Revisiting Previous Lesson © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 7 From session on Software General purpose application software stores data in files. How does a general-purpose software store For example, a letter, a data? spreadsheet, a schedule, a song, a video, and so on © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 8 From session on Software How does a special purpose software (used in information systems) store data? There are software programs that In the past, even specialized perform specific activities for software that used to use students. information systems used standard data files to store data. General Administration Branch = Registration Software Library = library software An information system can have many programs to carry out Medical Center = Health Reporting specific activities. For example, Software think of software and data in a Welfare Branch = Welfare Software university system. Exam Branch = Exam Software Faculty = Faculty Student Software © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 9 Information systems use data stored in computer databases to provide needed information. Information systems capture data from the organization (internal data) and its environment (external data). They store the data items over an extensive period of time in databases. When specific information is needed, the appropriate data stores are queried as necessary, and the user receives the resulting information. © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 10 Data Access/Retrieval Query: What is the best Database sold product in the last three months? SQL query Resulting Data/Information Management Information System e.g. Brand X Soap 80g Bars Stores the data/information about sales © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 11 What is a database and why use them? © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 12 A database is an organized collection of What is a logically related information, or data, typically stored electronically in a computer system. Database? Data is organized into rows, columns and tables to make it easier to find relevant information. Data gets updated, expanded and deleted as new information is added. Databases process workloads to create and update themselves, querying the data they contain and running applications against it. © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 13 Basic concepts Files: A collection of interrelated records Records: A collection of fields. Fields: Fields formed by the merging of several characters. Ex: Name, Date of Birth Character (Byte): This can be a letter, a number, or a special character. This is made up of bits. Ex: A, D, 1 Bit: 0 or© Department 1 of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 14 https://en.wikipedia.org/wiki/Data_hierarchy Before the invention of databases, what was the technique used for storing data? © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 15 A structure that stores data in a plain text file.. Flat File Structure We could also store the data in a spreadsheet which is also a flat file. e.g Microsoft Excel © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 16 Sample scenario that uses flat files for data storage © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 17 Flat File System One or more separate (no data transfer) files for each software / program These files are created, edited and deleted only by a special program © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 18 Flat File System The issues with flat file system… © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 19 Disadvantages of Flat File Data Redundancy Data Integrity Issues Inefficient (May have to enter/update data multiple times – wastes time) High maintenance cost Sharing is coarse Weak Security Application dependent © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 20 We can use databases to overcome these issues, encountered while using flat files. © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 21 General Medical Welfare Exam Library Faculty Admin centre Division department Medical Student Registratio Library Welfare Exam report profile n program Program Program System program Program Database Management System (A software) Student name, Book details, Database Address Income data, Marks General data Medical history © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 22 Compare with database © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 23 How is data stored in databases? The way the data is stored in databases will depend on the database model. There are different database models The most popular database model is Relational Database Model In a relational database model, the data are stored in tables which are related to each other using a common field. © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 24 Data is organized into tables (or relations). Each table has a set of fields which define the structure of the data stored in the table. Data from several tables are tied together (related) using a field that the tables have in common. A record is one instance of a set of fields in a table. Think of the records as the rows (or tuple) of the table and the fields as the columns of the table. Relational Database © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 25 A Sample Table in a Relational Database © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 26 Different types of database model Databases can be organized in many ways by using different models. The data model of a database is the logical structure of data items and their relationships. There have been several data models. Since 1980s, the relational data model has been popular. © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 27 Visualization of different data models © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 28 How can we create and manage databases? Is there a software to do that? © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 29 What is a DBMS? A software for creating and managing databases. Used to create, maintain, and access computer databases. PC DBMSs include: Microsoft Access, Corel Paradox, Lotus Approach For more comprehensive enterprise databases: Oracle Database, IBM DB2 © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 30 Database Management System (A software) General Medical Welfare Exam Library Faculty Admin centre Division department Medical Student Registratio Library Welfare Exam report profile n program Program Program System program Program Database Management System (A software) Student name, Book details, Database Address Income data, Marks General data Medical history © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 31 How to Implement Databases? © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 32 Designing Databases Design is a critical first step in creating a database Understand the goal of how the data of the database will be used. Identify the data needed as part of accomplishing this goal. Identify how the data is related to each other. Identify tables and fields to organize the data. © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 33 Overview of Big data and Business Analytics Big data The term refers to such massively large data sets that conventional data processing technologies do not have sufficient power to analyze them. For example, Walmart must process millions customer transactions every hour across the world. Presidential candidates of United states might have to analyze their percentage of supporters and opinions using data in different social media. Storing and analyzing that much data is beyond the power of traditional data management tools. Understanding and developing the best tools and techniques to manage and analyze these large data sets are a problem that governments and businesses alike are trying to solve. Business Analytics Business analytics involves the use of data analysis tools, statistical methods, and predictive modeling to extract valuable insights from business data, enabling informed decision-making and strategic planning. © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 34 Source: https://techvidvan.com/tutorials/big-data-applications-across-industries/ © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 35 Advantages of Business Analytics Understanding target customers better Big data is used by business today for analyzing sentiments of the target customers and providing them better services to increase the business. Cutting down in expenditures in various sectors Analysis of such huge volume of data has also helped business in cutting down their expenditures in various sectors wherever possible. Several billions of dollars being saved by improvements in operational efficiency and more. Increase in operating margins in different sectors Big Data also helps industries in increasing operating margins in different sectors. With the help of Big Data, lot of manual labour can be converted into machine task and this helps in increasing operating margins. © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 36 Techniques for Business analytics Some of the techniques based on the nature of data Data mining Extracts patterns from large data sets by combining methods from statistics and machine learning, within database management. Machine learning Works with computer algorithms to produce intelligent output based on data Natural language processing The application of computational techniques to the analysis and synthesis of natural language and speech. Statistical Analysis This technique works to collect, organise, and interpret data, within surveys and experiments and there are many other techniques… © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 37 Where should this data be stored before being taken into analysis © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 38 Data Warehouse Consists of extracts from one or more of the organization’s operational databases Allows the data to be copied and stored for analysis Needs to be refreshed as the data changes Data is time-stamped when extracted Allows comparisons between different time periods Data is standardized All similar fields (e.g., calendar dates) are structured the same Date is MM/DD/YYYY Data marts are smaller subsets of data warehouses for specific business problems © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 39 ETL Process in Diagram © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 40 Data Warehouse Benefits Allows organizations to better understand the data Centralized view of data to identify inconsistent data Once inconsistencies are resolved, higher quality data is used to make better business decisions Data can be analyzed over multiple time periods Tools are available to combine data and gain more insight into business operations © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 41 What is a data mart? A data mart is a subject-oriented database that is often a partitioned segment of an enterprise data warehouse. The subset of data held in a data mart typically aligns with a particular business unit like sales, finance, or marketing. Data marts accelerate business processes by allowing access to relevant information in a data warehouse or operational data store within days, as opposed to months or longer. Because a data mart only contains the data applicable to a certain business area, it is a cost-effective way to gain actionable insights quickly. © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 42 © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 43 ITC 2372: Business Analytics Current business organizations expect their employees to master the science of analyzing data to find out patterns that will help them to develop business strategies. Analytics as a decision-making approach is been used by big corporations, governments, entrepreneurs, and almost everyone else to generate insights by unearthing patterns and decoding data. By the time students finish the course, they should be able to, ∙ Understand and explain how managers use business analytics to formulate and solve business problems and to support managerial decision-making. ∙ Familiar with and conducting the processes needed to develop, report, and analyze business data. ∙ Use and apply computer-based tools with business analytics to solve business problems © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 44 Summary Discussed the role of data in Information Systems Discussed the concepts of database and database management systems Discussed concepts of Business Intelligence © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 45 Activity 1 Discuss the issues in storing data in flat file systems © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 46 Thank You © Department of Information Technology, FMSC, USJ ITC 1370 : Information Technology for Business 47